Mar 31, 2018
Dear Members,
The Directors of your Company have pleasure in presenting the Annual Report on Accounts for the Financial Year ending 31st March 2018.
FINANCIAL HIGHLIGHTS
(in Lakhs)
Particulars |
Standalone |
Consolidated |
||
2017-18 |
2016-17 |
2017-18 |
2016-17 |
|
Revenue from Operations |
2933.78 |
1933.24 |
2933.78 |
1933.24 |
Other Income |
336.93 |
818.96 |
336.93 |
818.96 |
Total Revenue |
3270.71 |
2752.20 |
3270.71 |
2752.20 |
Profit before Exceptional item, |
350.37 |
699.94 |
1349.67 |
3335.68 |
depreciation, interest & Tax (PBDIT)) |
||||
Interest & other financial expenses |
235.46 |
158.30 |
235.46 |
158.30 |
Depreciation and |
45.30 |
23.53 |
45.30 |
23.53 |
amortization expenses |
||||
Profit before Tax(PBT) |
69.61 |
518.11 |
1068.90 |
3153.85 |
Tax Expenses- Current |
6.00 |
56.50 |
6.00 |
56.50 |
Deferred |
23.25 |
6.43 |
23.25 |
6.43 |
Profit after Tax(PAT) |
40.35 |
455.18 |
1039.65 |
3090.92 |
Other Comprehensive Income |
2057.59 |
4713.54 |
2057.59 |
4713.54 |
Total Comprehensive Income |
2097.94 |
5168.72 |
3097.24 |
7804.46 |
for the period |
||||
Earnings per share -Basic |
0.27 |
3.00 |
6.85 |
20.35 |
-Diluted |
0.27 |
3.00 |
6.85 |
20.35 |
Note: The financial statements of the Company for the year ended 31st March, 2018, are the first the Company has prepared in accordance with Indian Accounting Standards (Ind AS). The financial statements for the year ended 31st March, 2017 have been restated in accordance with Ind AS for comparative information.
OPERATIONS AND FUTURE OUTLOOK
During the year under review, the Revenue from Operations of the Company has increased to Rs.2933.78 lakhs from Rs. 1933.24 lakhs during the previous year on account of completion of job contracts. The Company earned a net profit of Rs.40.35 lakhs during the year as against Rs.455.18 lakhs during the previous year. This decrease in net profits is due to lower interest income and claims.
The Government of India is expected to invest highly in the infrastructure sector, mainly highways, renewable energy and urban transport, prior to the general elections in 2019. The Government of India is taking every possible initiative to boost the infrastructure sector such as allocation Rs.5.97 lakh crore (US$ 92.22 billion) for the sector. Railways received the highest ever budgetary allocation of Rs.1.48 trillion (US$ 22.86 billion). Allocation of Rs.16,000 crore (US$2.47 billion) towards Sahaj Bijli Har Ghar Yojana (Saubhagya) scheme. The scheme aims to achieve universal household electrification in the country. These initiatives taken by the Government are giving a thrust to the Infrastructure Sector.
The Company has been awarded new jobs worth Rs.17 crore approx. by Government Departments which were under progress till 31.03.2018. During the year, existing projects worth Rs.8.41 crore has been executed by the company. The Company has also submitted fresh tenders which will also substantiate the turnover. Company is also in the process of reviving its old project i.e. SSL Highway Towers, Dera Bassi-Housing Project and exploring to raise capital to meet the future needs for the said project.
SEGMENTREPORT
Your Company has a number of activities in its fold. Its business activities include Construction and Engineering, Real Estate, Information Technology and Trading. The Company is registered with various Government Departments like Uttranchal PWD (B&R), HP PWD (B&R), Madhya Pradesh PWD (B&R), PUDA and other Central Bodies as Class-1 contractors. This segment presently has the largest share of revenue and profits in the performance of the Company. This segment also provides consultancy in the field of civil engineering and preparation and award of claims.
The Infotech Division of the Company undertakes activities of an Internet Service Provider in Punjab Telecom Circle including Punjab, Chandigarh, Panchkula and parts of Haryana and Himachal Pradesh.
The other important segment of activities of your Company is Development and Sale of Real Estate. As stated above, the Central Government is taking new initiatives to give a boost to the Real Estate Sector. Though the market growth in housing sector in Northern Region of the Country is presently low, however, it is likely to pick up in due course of time.
A breakup of the segment-wise performance is given in the ''Notes on Accounts'' which forms a part of the Balance Sheet.
FINANCIAL STATUS
There is no change in t he ''Issued and Subscribed Capital Rs. of R 15,18,83,720 divided into 1,51,88,372 equity shares of Rs.10/each, during the year. There are no equity shares with differential rights or sweat equity or ESOP or scheme of purchase of Company shares by employees or their trustees.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY
There are no material changes which occurred subsequent to the close of the financial year to which the Financial Statements relate and up to the date of report.
CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE
The Company has constituted a Corporate Social Responsibility Committee and also framed a Corporate Social Responsibility Policy and the same is posted on the website of the Company at http://www.sabindustries.in.
Since the Company does not have net profits in accordance with Section 135 of the Companies Act, 2013, the Company is not required to undertake any activity under CSR Rules.
DETAILS OF COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES DURING THE YEAR
Your Company has no Subsidiary or Joint Venture Company during the year. However, there is an Associate by the name of SAB Udyog Limited reportable under Section 129(3) of the Companies Act, 2013.
A separate statement related to the Associate Company forms part of Annual report in the prescribed Form AOC-1 in compliance with Section 129 and other applicable provisions, if any of the Companies Act, 2013, Consolidated Financial Statement prepared by the Company includes financial information of its Associate Company. The Company will provide a copy of Consolidated Annual Report and other document of its Associate Company on the request made by any member, investor of the Company. The annual accounts of the Associate Company have been kept for inspection by any Shareholder at the Registered Office of the Company. The statement is also available on the website of the Company at http://www.sabindustries.in.
DIVIDEND
Keeping in view the business commitments, your Company has decided not to declare any dividend for the year 2017-18.
FIXED DEPOSITS
The Company has not accepted any fixed deposits covered under Chapter V of the Companies Act 2013 read with Companies (Acceptance of Deposits) Rules, 2014 (as amended) during the year under review.
CORPORATE GOVERNANCE REPORT- DISCLOSURE REQUIREMENTS
The Company continuously strives to attain high levels of corporate performance, accountability, transparency, responsibility and fairness in all aspects of its operations. Transparency in all dealings and providing better services without compromising in any way on integrity and regulatory compliances have been the basic objectives of corporate governance in the Company. The Corporate Governance practices followed by the Company are enclosed as Annexure to this report.
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return as provided under Section 92(3) of the Act, is attached in Form No. MGT-9, which forms part of the Boards'' Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act, 2013, the Directors'' confirm that:
a. in the preparation of the annual accounts for the year ending 31st March 2018, the applicable accounting standards had been followed along with proper explanation relating to material departures;
b. 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 and loss of the company for that period;
c. 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;
d. the Directors had prepared the annual accounts on a going concern basis;
e. the Directors had laid down internal financial control to be followed by the Company and that such internal financial controls were adequate and were operating effectively; and
f. 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.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The internal control systems and processes of the Company cover operational efficiency, accuracy and promptness in financial reporting, compliance with laws and regulations and development of mature, disciplined and effective processes. The processes are also designed to meet the goals of cost, schedule, functionality and quality, thus resulting in higher levels of customer satisfaction.
DIRECTORS
A) Changes in Directors and Key Managerial Personnel
Since the last Annual General Meeting, following changes have taken place in the Board of Directors.
- On the recommendation of Nomination & Remuneration Committee, Board in its meeting held on 14.02.2018 reappointed Sh. Avinash Sharma as Whole-time Director of the Company for a period of five years w.e.f. 01.04.2018 subject to the approval of members at ensuing Annual General Meeting of the Company.
- As per the provisions of Companies Act, 2013, Shri Sanjay Garg (DIN-00030956), Director, retires by rotation at the forthcoming Annual General Meeting and being eligible offers himself for re-appointment
B) Declaration by an Independent Director(s) and reappointment, if any
A declaration by Independent Directors stating that he/ they meet the criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013 had been taken at the time of their appointment.
C) Formal Annual Evaluation
The Board of Directors has carried out an annual evaluation of its own performance and that of the Board committees and individual directors pursuant to the provisions of the Act and the corporate governance requirements as prescribed by Securities and Exchange Board of India ("SEBI") under SEBI (LODR) Regulations, 2015.
The performance of the Board was evaluated by the Board after seeking inputs from all the directors on the basis of the criteria such as the Board composition and structure, effectiveness of board processes, information and functioning, etc.
The performance of the committees was evaluated by the Board after seeking inputs from the committee members on the basis of the criteria such as composition of committees, effectiveness of committee meetings, etc.
The Board and the Nomination and Remuneration Committee ("NRC") reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the Board and committee meetings like preparedness on the issue to be discussed, meaningful and constructive contribution and inputs in meetings etc. In addition, the Chairman was also evaluated on the key aspects of his role.
In a separate meeting of Independent Directors, performance of non-independent directors, performance of the board as a whole and performance of the Chairman was evaluated, taking into account the views of executive directors and non-executive directors, The same was discussed in the Board meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its committees and individual directors was also discussed.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
During the year under review, 5 Board Meetings were held, one each on 30th May 2017, 14th August 2017, 14th November 2017, 25th November 2017 and 14th February 2018.
POLICY ON DIRECTORS '' APPOINTMENT AND REMUNERATION AND OTHER DETAILS
The Company''s policy on Directors'' appointment and remuneration and other matters provided in Section 178(3) of the Act has been disclosed in the corporate governance report, which forms part of the Directors'' Report.
AUDIT COMMITTEE
The Audit & Compliance Committee comprises of three nonexecutive Directors out of which two are Independent Directors.viz. Shri S S Virdi, Smt. Manju Lakhanpal and Shri H K Singhal. During the year, the committee held four meetings. Other details of the Audit Committee are included in the Corporate Governance Report which forms part of this report.
The Board had accepted all recommendation of the Audit Committee, if any.
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM/ WHISTLE BLOWER POLICY FOR DIRECTORS AND EMPLOYEES
The Company has formulated and published a Whistle Blower Policy to provide vigil mechanism for employees including Directors of the Company to report genuine concerns. The provisions of this Policy are in line with the provisions of Section 177(9) of the Act and the Regulation 22 of SEBI (LODR) Regulations, 2015.
There are no cases reported during the year.
NOMINATION AND REMUNERATION COMMITTEE
The committee has been constituted to review and recommend compensation payable to the whole-time directors including Chairman and senior management of the Company. The committee reviews the overall compensation structure and policies of the Company with a view to attract, retain and motivate employees, reviewing compensation levels of the Company vis-a-vis other Companies and industry in general. The Nomination & Remuneration Policy may be accessed on the website of the Company at http://www.sabindustries.in.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
There were no Loans/ Guarantee given and Investments made by the Company during the year exceeding the limits prescribed under Section 186 of the Companies Act, 2013.
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. A statement, in summary form, of transactions with related parties which were all in ordinary course of business and arm''s length basis is periodically placed before the audit committee for review and recommendation to the board for their approval.
The policy on materiality of related party transactions and dealing with related party transactions as approved by the board is uploaded on the website of the Company.
Disclosures as required under Indian Accounting Standards (Ind AS-24) have been made in the financial statements of the Company, enclosed with this report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report for the year under review as stipulated under Regulation 34(2) (e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of the Board''s report.
BUSINESS RISK MANAGEMENT
The risk management includes identifying types of risks and its assessment, risk handling, monitoring and reporting, which in the opinion of the Board may threaten the existence of the Company. The Board has formulated the Risk Management Policy to manage risks with the objective of maximizing shareholders value. The Risk Management Policy may be accessed on the website of the Company at http://www.sabindustries.in.
AUDITORS
As per the Provisions of Section 139 of Companies Act, 2013, M/s AKR & Associates, Chartered Accountants, were appointed as Statutory Auditors of the Company to hold office till the conclusion of Annual General Meeting to be held in the calendar year 2022 (subject to ratification of their appointment at every AGM). The Company has received a certificate from them pursuant to Companies (Audit & Auditors) Rules 2014 read with Section 139 & 141 of the Companies Act, 2013, confirming their eligibility for reappointment, and that they were not disqualified for reappointment.
In accordance with the Companies Amendment Act, 2017, enforced on 7th May, 2018 by the Ministry of Corporate Affairs, the appointment of Statutory Auditors is not required to be ratified at every Annual General Meeting.
AUDITORS'' REPORT AND SECRETARIAL AUDITORS'' REPORT
The Auditors'' Report and Secretarial Auditors'' Report do not contain any qualifications, reservations or adverse remarks. Report of Secretarial Auditors is attached as an annexure which forms part of this report.
LISTING OF SHARES
Equity shares of the Company are listed on BSE Limited and Listing fee has already been paid in pursuance to Regulation 14 of SEBI (LODR) Regulations, 2015.
DEMATERIALISATION
The equity shares of your Company are to be compulsorily traded in dematerialized form. As on 31.03.2018, a total of 15119256 equity shares, representing 99.54% of equity share capital have been dematerialized.
INSURANCE
All the assets of the Company have been adequately insured.
PERSONNEL AND RELATED DISCLOSURES
The information required under Section 197 of the Act read with rule 5 of the Companies (Appointment and remuneration of managerial personnel) rules 2014 is enclosed with this report.
INDUSTRIAL RELATIONS
Industrial relations continued to be cordial during the year under review.
HEALTH, SAFETY AND ENVIRONMENT PROTECTION
Our Company has complied with all the applicable health & Safety standards, environment laws and labour laws and has been taking all necessary measures to protect the environment and provide workers a safe work environment. Our Company is committed for continual improvement in Health & Safety as well as Environmental performance by involving all the employees to provide a Safe & healthy work environment to all its employees.
DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has zero tolerance for sexual harassment at workplace and has adopted a policy against sexual harassment in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder.
During the financial year 2017-18, the Company has not received any complaint on sexual harassment and hence no complaints remain pending as on 31st March, 2018.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Information in accordance with the provisions of Section 134(3)(m) of the Companies Act, 2013 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo is not applicable as the Company did not have any manufacturing facility during the period under consideration. There were no foreign exchange earnings/ outgo during the period.
SECRETARIAL STANDARDS
The company has complied with applicable secretarial standards.
ACKNOWLEDGEMENT
Your Directors acknowledge with gratitude the assistance, cooperation and support received by the Company from the Banks, Statutory/ Govt. Bodies, Customers and Shareholders of the Company.
SANJAY GARG AVINASH SHARMA
Place: Chandigarh Director Executive Director
Date: 30.05.2018 DIN-00030956 DIN-02371722
Mar 31, 2016
Dear Members,
The Directors of your Company have pleasure in presenting the Annual Report on Accounts for the Financial Year ending 31st March 2016.
FINANCIAL HIGHLIGHTS
(Rs. in Lacs)
Particulars |
2015-16 |
2014-15 |
Turnover and Other Income |
||
- Turnover |
4329.50 |
1527.74 |
- Other Income |
137.76 |
224.74 |
Operating Profit |
231.41 |
215.68 |
Financial Expenses |
137.62 |
112.70 |
Depreciation |
22.64 |
40.14 |
Net Profit from ordinary operations |
71.15 |
62.84 |
Write Back from termination of |
1000.00 |
100.00 |
Agreement |
||
Prior period Adjustments |
88.67 |
0.85 |
Net profit before tax |
622.79 |
161.99 |
Tax Expense |
145.85 |
49.64 |
Profit after Tax |
476.94 |
112.35 |
OPERATIONS AND FUTURE OUTLOOK
During the year under consideration, the turnover of the Company was higher at Rs.4329.50 lac as compared to a turnover of Rs.1527.74 lac during the previous year. The Company also earned a net profit of Rs.476.94 lac during the year as against Rs.112.35 lac during the previous year.
The Central Government has taken new initiatives during the last two years to give a boost to the Real Estate, Construction and Infrastructure Sector. A sum of Rs.1.00 lac crore approx. is being allocated for development of 100 smart cities and 500 rejuvenated cities and mission Housing for all. In addition Govt. is giving major thrust on road and railways. Tax benefits are being introduced to bring in FDI and Local investments in the sector.
These initiatives are giving a thrust to the Construction Sector. The Company had been awarded new jobs worth Rs.59 crore approx. by Government Departments. Out of the above the Company has executed jobs worth Rs.25 crore approx. till 31.03.2016 and the balance work is to be executed during the current year. Besides, the Company has also submitted fresh tenders which will also substantiate the turnover. Barring unforeseen circumstances, we expect to achieve a turnover of Rs.50 crore approx. during the current year 2016-17.
SEGMENT REPORT
Your Company has a number of activities in its fold. Its business activities include Construction and Engineering, Real Estate, Information Technology and Trading. The Company is registered with various Government Departments like Uttranchal PWD (B&R), HP PWD (B&R), Madhya Pradesh PWD (B&R), PuDa and other Central Bodies as Class-1 contractors. This segment presently has the largest share of revenue and profits in the performance of the Company. This segment also provides consultancy in the field of civil engineering and preparation and award of claims.
The Infotech Division of the Company undertakes activities of an Internet Service Provider in Punjab Telecom Circle including Punjab, Chandigarh, Panchkula and parts of Haryana and
Himachal Pradesh.
The other important segment of activities of your Company is Development and Sale of Real Estate. As stated above, the Central Government is taking new initiatives to give a boost to the Real Estate Sector. Though the market growth in housing sector in Northern Region of the Country is presently low, however, it is likely to pick up in due course of time.
A breakup of the segment-wise performance is given in the ''Notes on Accounts'' which forms a part of the Balance Sheet.
FINANCIAL STATUS
There is no change in the ''Issued and Subscribed Capital'' of r15,18,83,720, divided into 1,51,88,372 equity shares of r10/-each, during the year. There are no equity shares with differential rights or sweat equity or ESOP or scheme of purchase of Company shares by employees or their trustees.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY
There are no material changes which occurred subsequent to the close of the financial year to which the Financial Statements relate and upto the date of report.
CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE
The Company has constituted a Corporate Social Responsibility Committee and also framed a Corporate Social Responsibility Policy and the same is posted on the website of the Company at http://www.sabindutries.in
As per calculation of profits u/s 198 of the Companies Act, 2013 there is no CSR obligation on the Company. However the Company has voluntarily incurred an expenditure of Rs 9.70 lac during the year.
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 1 attached to this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014.
SUBSIDIARY COMPANY
There is no subsidiary Company reportable under Section 129(3) of the Companies Act, 2013.
DIVIDEND
Keeping in view the business commitments, your Company has decided not to declare any dividend for the year 2015-16.
FIXED DEPOSITS
The Company has not accepted any fixed deposits covered under Chapter V of the Companies Act 2013 read with Companies (Acceptance of Deposits) Rules, 2014 (as amended) during the year under review.
CORPORATE GOVERNANCE REPORT- DISCLOSURE REQUIREMENTS
The Company continuously strives to attain high levels of corporate performance, accountability, transparency, responsibility and fairness in all aspects of its operations. Transparency in all dealings and providing better services without compromising in any way on integrity and regulatory compliances have been the basic objectives of corporate governance in the Company. The Corporate Governance practices followed by the Company are enclosed as Annexure to this report.(Annexure-6)
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return as provided under Section 92(3) of the Act, is attached in Form No. MGT-9, which forms part of the Boards'' Report. (Annexure-4)
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act, 2013, the Directors'' confirm that:
a. in the preparation of the annual accounts for the year ending 31st March 2016, the applicable accounting standards had been followed along with proper explanation relating to material departures;
b. 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 and loss of the company for that period;
c. 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;
d. the Directors had prepared the annual accounts on a going concern basis;
e. the Directors had laid down internal financial control to be followed by the Company and that such internal financial controls were adequate and were operating effectively; and
f. 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.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The internal control systems and processes of the Company cover operational efficiency, accuracy and promptness in financial reporting, compliance with laws and regulations and development of mature, disciplined and effective processes. The processes are also designed to meet the goals of cost, schedule, functionality and quality, thus resulting in higher levels of customer satisfaction.
DIRECTORS
A) Changes in Directors and Key Managerial Personnel
Since the last Annual General Meeting, following changes have taken place in the Board of Directors.
- Shri Vijay G Kalantri ceased to be a Director on 14.11.2015
- Shri Shyam Sunder Dawra, being an Independent Director vacated office on 12.02.2016 due to his sudden demise.
Our Directors place on record their appreciation of the valuable guidance rendered by Shri Vijay G Kalantri and Shri Shyam Sunder Dawra during their association with the Company
Pursuant to the provisions of Section 149 of the Act, Shri Kanwarjit Singh was appointed as Independent Director at the Annual General Meeting of the Company held on 30th September, 2014, Shri Surinder Singh Virdi and Smt. Manju Lakhanpal were appointed as Independent Directors at the Annual General Meeting of the Company held on 30th September, 2015. The terms and conditions of appointment of Independent Directors are as per Schedule IV of the Act. They have submitted a declaration that each of them meets the criteria of Independence as provided in Section 149(6) of the Act and there has been no change in the circumstance which could affect their status as Independent Director during the year.
As per the provisions of Companies Act, 2013, Shri Humesh Kumar Singhal (DIN-00044328), Director, retires by rotation at the forthcoming Annual General Meeting and being eligible offers himself for re-appointment
B) Declaration by an Independent Director(s) and reappointment, if any
A declaration by Independent Directors stating that he/they meet the criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013 had been taken at the time of their appointment.
C) Formal Annual Evaluation
The Board of Directors has carried out an annual evaluation of its own performance, and that of the Board committees and individual directors pursuant to the provisions of the Act and the corporate governance requirements as prescribed by Securities and Exchange Board of India ("SEBI") under SEBI (LODR) Regulations, 2015.
The performance of the Board was evaluated by the Board after seeking inputs from all the directors on the basis of the criteria such as the Board composition and structure, effectiveness of board processes, information and functioning, etc.
The performance of the committees was evaluated by the Board after seeking inputs from the committee members on the basis of the criteria such as composition of committees, effectiveness of committee meetings, etc.
The Board and the Nomination and Remuneration Committee ("NRC") reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the Board and committee meetings like preparedness on the issue to be discussed, meaningful and constructive contribution and inputs in meetings etc. In addition, the Chairman was also evaluated on the key aspects of his role.
In a separate meeting of Independent Directors, performance of non-independent directors, performance of the board as a whole and performance of the Chairman was evaluated, taking into account the views of executive directors and non-executive directors, The same was discussed in the Board meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its committees and individual directors was also discussed.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
During the year under review, 4 Board Meetings were held, one each on 18th May 2015, 13th August 2015, 14th November 2015 and 12th February 2016.
POLICY ON DIRECTORS'' APPOINTMENT AND REMUNERATION AND OTHER DETAILS
The Company''s policy on Directors'' appointment and remuneration and other matters provided in Section 178(3) of the Act has been disclosed in the corporate governance report, which forms part of the Directors'' Report.
AUDIT COMMITTEE
The Audit & Compliance Committee comprises of three nonexecutive Independent Directors viz. Shri S S Virdi, Shri Kanwarjit Singh, Smt. Manju Lakhanpal and Shri H K Singhal. During the year, the committee held four meetings. Other details of the Audit Committee are included in the Corporate Governance Report which forms part of this report.
The Board had accepted all recommendation of the Audit Committee.
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM/ WHISTLE BLOWER POLICY FOR DIRECTORS AND EMPLOYEES
The Company has formulated and published a Whistle Blower Policy to provide vigil mechanism for employees including Directors of the Company to report genuine concerns. The provisions of this Policy are in line with the provisions of Section 177(9) of the Act and the Regulation 22 of SEBI (LODR) Regulations, 2015.
There are no cases reported during the year.
NOMINATION AND REMUNERATION COMMITTEE
The committee has been constituted to review and recommend compensation payable to the whole-time directors including Chairman and senior management of the Company. The committee reviews the overall compensation structure and policies of the Company with a view to attract, retain and motivate employees, reviewing compensation levels of the Company vis-a-vis other Companies and industry in general.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 There were no Loans/ Guarantee given and Investments made by the Company during the year exceeding the limits prescribed under Section 186 of the Companies Act, 2013.
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. A statement, in summary form, of transactions with related parties in ordinary course of business and arm''s length basis is periodically placed before the audit committee for review and recommendation to the board for their approval.
The policy on materiality of related party transactions and dealing with related party transactions as approved by the board is uploaded on the website of the Company.
Disclosures as required under accounting standards (AS-18) have been made in the financial statements of the Company, enclosed with this report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report for the year under review as stipulated under Regulation 34(2) (e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of the Board''s report as (Annexure-5).
BUSINESS RISK MANAGEMENT
The risk management includes identifying types of risks and its assessment, risk handling, monitoring and reporting, which in the opinion of the Board may threaten the existence of the Company The Board has formulated the Risk Management Policy to manage risks with the objective of maximizing shareholders value. The Risk Management Policy may be accessed on the website of the Company at http://www. sabindustries.in.
AUDITORS
As per the Provisions of Section 139 of Companies Act, 2013, M/s S.C. Dewan & Co., Chartered Accountants, were appointed as Statutory Auditors of the Company to hold office till the conclusion of Annual General Meeting to be held in the calendar year 2017(subject to ratification of their appointment at every AgM). The Company has received a certificate from them pursuant to Companies (Audit & Auditors) Rules 2014 read with Section 139 & 141 of the Companies Act, 2013, confirming their eligibility for reappointment, and that they were not disqualified for reappointment.
AUDITORS'' REPORT AND SECRETARIAL AUDITORS''
REPORT
The Auditors'' Report and Secretarial Auditors'' Report do not contain any qualifications, reservations or adverse remarks. Report of Secretarial Auditors is attached as an annexure which forms part of this report. (Annexure-2)
LISTING OF SHARES
We had filed application with Mumbai Stock Exchange (BSE) on 19.01.2015 for Listing of equity shares of the Company. We are pleased to inform that BSE has granted listing and trading permission vide their notice no.20150507-33 dated 7th May 2015 effective from 11th May 2015.
DEMATERIALISATION
The equity shares of your Company are to be compulsorily traded in dematerialized form. As on 31.03.2016, a total of 15101210 equity shares, representing 99.43% of equity share capital have been dematerialized.
INSURANCE
All the assets of the Company have been adequately insured.
PARTICULARS OF EMPLOYEES
Relations with the employees during the period under review continued to be peaceful and harmonious.
PERSONNEL AND RELATED DISCLOSURES The information required under Section 197 of the Act read with rule 5 of the Companies (Appointment and remuneration of managerial personnel) rules 2014 is enclosed with this report. (Annexure-3)
INDUSTRIAL RELATIONS
Industrial relations continued to be cordial during the year under review.
HEALTH, SAFETY AND ENVIRONMENT PROTECTION
Our Company has complied with all the applicable health & Safety standards, environment laws and labour laws and has been taking all necessary measures to protect the environment and provide workers a safe work environment. Our Company is committed for continual improvement in Health & Safety as well as Environmental performance by involving all the employees to provide a Safe & healthy work environment to all its employees
DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has zero tolerance for sexual harassment at workplace and has adopted a policy against sexual harassment in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed there under.
During the financial year 2015-16, the Company has not received any complaint on sexual harassment and hence no complaints remain pending as on 31st March, 2016. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Information in accordance with the provisions of Section 134(3)(m) of the Companies Act, 2013 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo is not applicable as the Company did not have any manufacturing facility during the period under consideration. There were no foreign exchange earnings/ outgo during the period.
ACKNOWLEDGEMENT
Your Directors acknowledge with gratitude the assistance, cooperation and support received by the Company from the Banks, Statutory/ Govt. Bodies, Customers and Shareholders of the Company.
For and on behalf of BOARD OF DIRECTORS
H.K. SINGHAL AVINASH SHARMA
Place: Chandigarh Director Executive Director
Date: 14.05.2016 DIN-00044328 DIN-02371722
Mar 31, 2015
Dear Members,
The Directors of your Company have pleasure in presenting the Annual
Report on Accounts for the Financial Year ending 31st March 2015.
FINANCIAL HIGHLIGHTS
(RS in Lacs)
Particulars 2014-15 2013-14
Turnover and Other Income
- Turnover 1527.74 1004.66
- Other Income 224.74 261.57
Operating Profit 215.68 308.17
Financial Expenses 112.70 208.76
Depreciation 40.14 40.55
Net Profit from ordinary operations 62.84 58.86
Write Back from termination of 100.00 -
Agreement
Prior period Adjustments 0.85 1.11
Net profit before tax 161.99 57.75
Tax Expense 49.64 20.78
Profit after Tax 112.35 36.97
OPERATIONS AND FUTURE OUTLOOK
During the year under consideration, the turnover of the Company was
higher at R1527.74 lac as compared to a turnover of R1004.66 lac during
the previous year. The Company also earned a net profit of R112.35 lac
during the year as against R36.97 lac during the previous year.
The Central Government has recently taken new initiatives during the
last one year to give a boost to the Real Estate and Construction
Sector. A sum of R1.00 lac crore approx. is being allocated for
development of 100 smart cities and 500 rejuvenated cities, and mission
Housing for all. Tax benefits are being introduced to bring in FDI and
Local investments in the sector.
These initiatives are giving a thrust to the Construction Sector. The
Company has been awarded new jobs worth R50 crore approx. by Government
Departments. The Company has executed jobs worth r13 crore approx. out
of the above till 31.03.2015 and the balance work is to be executed
during the current year. Besides, the Company has also submitted fresh
tenders worth R70 crore approx. which will also substantiate the
turnover. Barring unforeseen circumstances, we expect to achieve a
turnover of r50 crore approx. during the current year 2015-16.
SEGMENT REPORT
Your Company has a number of activities in its fold. Its primary
business activities include Construction and Engineering, Real Estate,
Information Technology and Trading. The Company is registered with
various Government Bodies like Uttranchal PWD (B&R), HP PWD (B&R),
Haryana PWD (B&R) and PUDA as class-1 contractors. This segment
presently has the largest share of revenue and profits in the
performance of the Company. This segment also provides consultancy in
the field of civil engineering and preparation and award of claims.
The Infotech Division of the Company undertakes activities of an
Internet Service Provider in Punjab Telecom Circle including Punjab,
Chandigarh, Panchkula and parts of Haryana and Himachal Pradesh.
The other important segment of activities of your Company is
Development and Sale of Real Estate. As stated above, the Central
Government is taking new initiatives to give a boost to the Real Estate
Sector. Though the market growth in housing
sector in Northern Region of the Country is presently low, however, it
is likely to pick up in due course of time.
A breakup of the segment-wise performance is given in the 'Notes on
Accounts' which forms a part of the Balance Sheet.
FINANCIAL STATUS
There is no change in the 'Issued and Subscribed Capital' of
r15,18,83,720, divided into 1,51,88,372 equity shares of rs10/- each,
during the year. There are no equity shares with differential rights or
sweat equity or ESOP or scheme of purchase of Company shares by
employees or their trustees.
MATERIAL CHANGES AND COMMITMENTS.IF ANY- AFFECTING THE FINANCIAL
POSITION OF THE COMPANY
There are no material changes which occurred subsequent to the close of
the financial year to which the Financial Statements relate and upto
the date of report.
CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE
During the year, your Directors have constituted a Corporate Social
Responsibility and Governance Committee (CSR&G Committee) comprising
Shri R K Garg as its Chairman, Shri H K Singhal and Shri S S Dawra as
other members.
The said Committee has been entrusted with the responsibility of
formulating and recommending to the Board, a Corporate Social
Responsibility Policy (CSR Policy) indicating the activities to be
undertaken within the framework of the CSR Policy and recommending the
amount to be spent on CSR activities.
Since the Company does not have net profits in any financial year in
accordance with Section 197/ 198 of the Companies Act, 2013, the
Company is not required to undertake any activity under CSR Rules.
SUBSIDIARY COMPANY
There is no subsidiary Company reportable under Section 129(3) of the
Companies Act, 2013.
DIVIDEND
Keeping in view the business commitments, your Company has decided not
to declare any dividend for the year 2014-15.
FIXED DEPOSITS
The Company has not accepted any fixed deposits during the year under
review. The Company has complied with the directives covered under
Chapter V of the Companies Act 2013 read with Companies (Acceptance of
Deposits) Rules, 2014 (as amended) as applicable, with regard to the
deposits accepted. There are no unpaid or unclaimed deposits of any
previous years.
CORPORATE GOVERNANCE REPORT- DISCLOSURE REQUIREMENTS
The Company is continuously taking steps to attain higher levels of
transparency, accountability and equity in order to enhance customer
satisfaction and stakeholders' value. The Company not only complies
with the regulatory requirements but is also responsive to the
stakeholders' as well as customers' needs. The Company already has an
Audit Committee, a Stakeholder Relationship Committee and Nomination
and Remuneration Committee duly constituted by the Board to look after
various activities. The Corporate Governance practices followed by the
Company are enclosed as Annexure to this report.
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return as provided under Section 92(3) of the
Act, in Form No. MGT-9, which forms part of the Board's
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act, 2013, the Directors'
confirm that :
a. in the preparation of the annual accounts for the year ending 31st
March 2015, the applicable accounting standards had been followed along
with proper explanation relating to material departures;
b. 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 and
loss of the company for that period;
c. 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;
d. the Directors had prepared the annual accounts on a going concern
basis; and
e. the Directors in the case of a Listed Company had laid down
internal financial control to be followed by the Company and that such
internal financial controls are adequate and were operating
effectively.
f. 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.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The internal control systems and processes of the Company cover
operational efficiency, accuracy and promptness in financial reporting,
compliance with laws and regulations and development of mature,
disciplined and effective processes. The processes are also designed
to meet the goals of cost, schedule, functionality and quality, thus
resulting in higher levels of customer satisfaction.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
A) Changes in Directors and Key Managerial Personnel
Since the last Annual General Meeting, following changes have taken
place in the Board of Directors.
- Shri S S Virdi has been appointed as a Director on 13.11.2014 in
place of Shri Ram K Gupta
- Shri S S Dawra has resigned as a Director on 15.12.2014
- Smt. Manju Lakhanpal has been appointed as an Independent Director on
14.03.2015.
Your Directors place on record their appreciation of the valuable
guidance rendered by Shri S S Dawra and Shri Ram K Gupta during their
association with the Company
Pursuant to the provisions of Section 149 of the Act, Shri S S Dawra,
Shri Vijay G Kalantri and Shri Kanwarjit Singh were appointed as
Independent Directors at the Annual General Meeting of the Company held
on 30th September, 2014. The terms and conditions of appointment of
Independent Directors are as per Schedule IV of the Act. They have
submitted a declaration that each of them meets the criteria of
Independence as provided in Section 149(6) of the Act and there has
been no change in the circumstance which could affect their status as
Independent Director during the year.
As per the provisions of Companies Act, 2013, Shri Sanjay Garg,
Director, retire by rotation at the forthcoming Annual General Meeting
and being eligible offer himself for re- appointment
B) Declaration by an Independent Director(s) and re- appointment, if
any
A declaration by Independent Directors stating that he/they meet the
criteria of independence as provided in sub-section (6) of Section 149
of the Companies Act, 2013 has been taken at the time of their
appointment.
C) Formal Annual Evaluation of Board
The Board of Directors has carried out an annual evaluation of its own
performance, Board committees and individual directors pursuant to the
provisions of the Act and the corporate governance requirements as
prescribed by Securities and Exchange Board of India ("SEBI") under
Clause 49 of the Listing Agreements ("Clause 49").
The performance of the Board was evaluated by the Board after seeking
inputs from all the directors on the basis of the criteria such as the
Board composition and structure, effectiveness of board processes,
information and functioning, etc.
The performance of the committees was evaluated by the Board after
seeking inputs from the committee members on the basis of the criteria
such as composition of committees, effectiveness of committee meetings,
etc.
The Board and the Nomination and Remuneration Committee ("NRC")
reviewed the performance of the individual directors on the basis of
the criteria such as the contribution of the individual director to the
Board and committee meetings like preparedness on the issue to be
discussed, meaningful and constructive contribution and inputs in
meetings etc. In addition, the Chairman was also evaluated on the key
aspects of his role.
In a separate meeting of Independent Directors, performance of
non-independent directors, performance of the board as a whole and
performance of the Chairman was evaluated, taking into account the
views of executive directors and non-executive directors, The same was
discussed in the Board meeting that followed the meeting of the
Independent Directors, at which the performance of the Board, its
committees and individual directors was also discussed.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
During the year under review, 4 Board Meetings were held, one each on
30th May 2014, 14th August 2014, 13th November 2014 and 14th February
2015.
POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND OTHER DETAILS
The Company's policy on Directors' appointment and remuneration and
other matters provided in Section 178(3) of the Act has been disclosed
in the corporate governance report, which forms part of the Directors'
Report.
AUDIT COMMITTEE
The Audit & Compliance Committee comprises of two non- executive
Independent Directors viz. Shri S S Virdi, Shri Kanwarjit Singh and
Shri H K Singhal. During the year, the committee held four meetings.
Other details of the Audit Committee are included in the Corporate
Governance Report which forms part of this report.
The Board had accepted all recommendation of the Audit Committee.
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM/ WHISTLE BLOWER POLICY FOR
DIRECTORS AND EMPLOYEES
The Company has formulated and published a Whistle Blower Policy to
provide vigil mechanism for employees including Directors of the
Company to report genuine concerns. The provisions of this Policy are
in line with the provisions of Section 177(9) of the Act and the
revised Clause 49 of the Listing Agreement.
There are no cases reported during the year.
NOMINATION AND REMUNERATION COMMITTEE
The committee has been constituted to review and recommend compensation
payable to the whole-time directors including Chairman and senior
management of the Company. The committee reviews the overall
compensation structure and policies of the Company with a view to
attract, retain and motivate employees, reviewing compensation levels
of the Company vis-a-vis other Companies and industry in general.
PARTICULARS OF LOANS. GUARANTEES OR INVESTMENTS UNDER SECTION 186
There were no Loans/ Guarantee given and Investments made by the
Company during the year..
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
The particulars of every contract or arrangements entered into by the
Company with related parties referred to in sub-section (1) of section
188 of the Companies Act, 2013 pursuant to section 134(3)(h) of the Act
read with rule 8(2) of the Companies (Accounts) rules 2014, including
certain arms length transactions under third proviso thereto have been
disclosed in the financial statements and are enclosed in Form No.
AOC-2 and the same forms part of this report.
RISK MANAGEMENT POLICY
The Board of the Company has formed a Risk Management Committee to
frame, implement and monitor the Risk Management plan for the Company.
The impact of various risks on the Company, and the steps taken to
mitigate the same has been discussed in the Report on Management
Discussion & Analysis annexed with this report. (Annexure 5)
AUDITORS
As per the Provisions of Section 139 of Companies Act, 2013, M/s S.C.
Dewan & Co., Chartered Accountants, were appointed as Statutory
Auditors of the Company to hold office till the conclusion of Annual
General Meeting to be held in the calendar year 2017(subject to
ratification of their appointment at every AGM). The Company has
received a certificate from them pursuant to Companies (Audit &
Auditors) Rules 2014 read with Section 139 & 141 of the Companies Act,
2013, confirming their eligibility for reappointment, and that they
were not disqualified for reappointment.
AUDITORS' REPORT AND SECRETARIAL AUDITORS' REPORT
The Auditors' Report and Secretarial Auditors' Report do not contain
any qualifications, reservations or adverse remarks. Report of
Secretarial Auditor is attached as an annexure which forms part of this
report. (Annexure-2)
LISTING OF SHARES
We had filed application with Mumbai Stock Exchange (BSE) on 19.01.2015
for Listing of equity shares of the Company. We are pleased to inform
that BSE has granted in principle approval for listing of its
securities with them vide their letter no.DCSDL- UZIP9562014-15
dated 19/02/2015. BSE subsequently granted listing and trading
permission vide their notice no.20150507-33 dated 7th May 2015
effective from 11th May 2015.
DEMATERIALISATION
The equity shares of your Company are to be compulsorily traded in
dematerialized form. As on 31.03.2015, a total of
15101140 equity shares, representing 99.43% of equity share capital
have been dematerialized.
INSURANCE
All the assets of the Company have been adequately insured.
PARTICULARS OF EMPLOYEES
Relations with the employees during the period under review continued
to be peaceful and harmonious.
MANAGERIAL REMUNERATION
The information required under Section 197 of the Act read with rule 5
of the Companies (Appointment and remuneration of managerial personnel)
rules 2014 is enclosed with this report. (Annexure-3)
INDUSTRIAL RELATIONS
Industrial relations continued to be cordial during the year under
review.
HEALTH, SAFETY & ENVIRONMENT PROTECTION
Our Company has complied with all the applicable health &Safety
standards, environment laws and labour laws andhas been taking all
necessary measures to protect theenvironment and provide workers a safe
work environment.Our Company is committed for continual improvement
inHealth & Safety as well as Environmental performance byinvolving all
the employees to provide a Safety & healthy work environment to all its
employees
DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION,
PROHOBITION AND REDRESSAL) ACT, 2013
The Company has zero tolerance for sexual harassment at workplace and
has adopted a policy against sexual harassment in line with the
provisions of Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and the rules framed thereunder.
During the financial year 2014-15, the Company has not received any
complaint on sexual harassment and hence no complaints remain pending
as on 31st March, 2015. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Information in accordance with the provisions of Section 134(3)(m) of
the Companies Act, 2013 regarding Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo is not applicable as
the Company did not have any manufacturing facility during the period
under consideration. There were no foreign exchange earnings/ outgo
during the period.
ACKNOWLEDGEMENT
Your Directors acknowledge with gratitude the assistance, co- operation
and support received by the Company from the Banks, Statutory/ Govt.
Bodies, Customers and Shareholders of the Company.
For and on behalf of Board
Place: Chandigarh H.K. SINGHAL AVINASH SHARMA
Date: 18.05.2015 Director Executive Director
din-00044328 DIN-02371722
Mar 31, 2014
Dear Members,
The Directors of your Company have pleasure in presenting the Annual
Report on Accounts for the Financial Year ending 31st March 2014.
FINANCIAL HIGHLIGHTS
(Rs. in Lacs)
PARTICULARS 2013-14 2012-13
Turnover and Other Income
* Turnover 1004.66 1536.68
* Other Income 261.57 1729.75
Operating Profit 308.17 2358.03
Financial Expenses 208.76 155.23
Depreciation 40.55 46.00
Net Profit /(Loss) before Income Tax 58.86 2156.80
Prior period Adjustments 1.11 29.45
Tax Expense 20.78 431.80
Profit/ (Loss) after Tax 36.97 1695.55
OPERATIONS AND FUTURE OUTLOOK
During the year, the turnover of the Company was lower as Rs.1004.66
lac as compared to a turnover of Rs.1536.68 lac during the previous
year mainly due to slowdown in Real Estate Business. The Company earned
a net profit of Rs. 36.97 lac as against a net profit of Rs. 1695.55
lac during the previous year.
SEGMENT REPORT
Your Company has a number of activities in its fold. Its primary
business activities include Construction and Engineering, Real Estate,
Information Technology and Trading. The Company is registered with
various Government Bodies like Uttranchal PWD (B&R), HP PWD (B&R),
Haryana PWD (B&R) and PUDA as class-1 contractors. This segment has the
largest share of revenue and profits in the performance of the Company.
This segment also provides consultancy in the field of civil
engineering and preparation and award of claims.
The Infotech Division of the Company undertakes activities of an
Internet Service Provider in Punjab Telecom Circle including Punjab,
Chandigarh, Panchkula and parts of Haryana and Himachal Pradesh.
The other important segment of activities of your Company is
Development and Sale of Real Estate. The Company is already in the
process of developing a Housing Complex on Ambala- Chandigarh National
Highway, at Derabassi in Punjab.
A breakup of the segment-wise performance is given in the ''Notes on
Accounts'' which forms a part of the Balance Sheet.
SUBSIDARY COMPANIES
There is no subsidiary Company reportable under Section 212 of the
Companies Act, 1956.
DEMATERILISATION
Effective from 09/05/2011, dematerialization of shares has been
permitted by National Securities Depository Limited (NSDL) and ISIN No.
INE137M01017 has been allotted to the Company for this purpose. The
company has also established its connectivity with Central Depository
Services of India (CDSL) vide their letter No. CDSL/ISS/NMP/EQ/33286
of January 15, 2014. SEBI has also confirmed connectivity with both the
Depositories vide their notification number CIR/MRD/DP/16/2014 dated
May 16, 2014.
FINANCIAL STATUS
There is no change in the ''Issued and Subscribed Capital'' of Rs.
15,18,83,720, divided into 1,51,88,372 equity shares of Rs. 10/- each,
during the year.
DIRECTORS
The Company had, pursuant to the provisions of clause 49 of the Listing
Agreements entered into with Stock Exchanges, appointed Shri S S Dawra,
Shri Kanwarjit Singh, Shri Ram K Gupta and Shri Vijay G Kalantri as
Independent Directors of the Company.
As per Section 149(4) of the Companies Act, 2013 (Act), which came into
effect from April 1, 2014, every listed public Company is required to
have at least one third of the total number of Directors as Independent
Directors. In accordance with the provisions of section 149 of the
Act, these Directors are being appointed as Independent Directors to
hold office for a term of five years at the forthcoming Annual General
Meeting (AGM) of the Company.
As per the provisions of Companies Act, 2013, Shri Humesh Kumar Singhal
and Shri Sanjay Garg, Directors, retire by rotation at the forthcoming
Annual General Meeting and being eligible offer themselves for
re-appointment.
DIVIDEND
Keeping in view the business commitments, your Company has decided not
to declare any dividend for the year 2013-14.
INTERNAL CONTROL SYSTEMS
The internal control systems and processes of your Company cover
operational efficiency, accuracy and promptness in financial reporting,
compliance with laws and regulations and development of mature,
disciplined and effective processes. The processes are also designed to
meet the goals of cost, schedule, functionality and quality, thus
resulting in higher levels of customer satisfaction.
A separate section on Corporate Governance forms part of the Directors''
Report in pursuance to Clause 49 of the Listing Agreement with Stock
Exchanges.
FIXED DEPOSITS
The Company has accepted deposits from the public within the meaning of
the provisions of Section 58A of the Companies Act, 1956. There has not
been any default in repayment of deposits or payment of interest
thereon during the year. There are no unpaid or unclaimed deposits as
at the end of the year.
AUDITORS
M/s S.C. Dewan & Co., Chartered Accountants were appointed as Statutory
Auditors of the Company to hold office till the conclusion of the
ensuing Annual General Meeting. The Auditors retire at the ensuing
Annual General Meeting and, being eligible, have offered themselves for
re-appointment. They have confirmed their eligibility and willingness
to accept office if re-appointed. The company has received a
certificate from them pursuant to Companies (Audit & Auditors) Rules
2014 read with Section 139 & 141 of the Companies Act, 2013, confirming
their eligibility for reappointment, and that they are not disqualified
for re-appointment.
The Notes on Financial Statements referred to in the Auditors'' Report
are self-explanatory and do not call for any further comments.
Regarding valuation of Investments in quoted shares and Agricultural
Lands & Buildings, the same has been done at cost, instead of market
price, to comply with the Accounting Standards.
INSURANCE
All the insurable Properties and Assets of the Company have been
adequately insured.
MANAGEMENT DISCUSSION AND ANALYSIS
Your Company is engaged in ''Construction & Engineering'', InfoTech, Real
Estate and Trading business.
Real Estate business is again picking up in the country. The Company is
gearing up to seize this opportunity to grow. The Company has already
launched a Housing Complex named "SSL HIGHWAY TOWERS" at Derabassi near
Chandigarh. The business is expected to pick up in the near future.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Ac, 1956, the Directors''
confirm that :
i) in preparation of the Balance Sheet and the Profit and Loss Account
and Cash Flow Statement of the Company, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures.
ii) the Directors have selected such accounting policies and applied
them consistently and made judgements 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.
iii) 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.
(iv) The annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
(a) The provisions of Section 217(1)(e) of the Companies Act, 1956 with
regard to Conservation of Energy and Technology Absorption are not
applicable as your Company is not engaged in any Industrial activities.
(b) Foreign Exchange Earnings and Outgo:
31.03.2014 31.03.2013
* Earnings Rs. 63.67 Lacs Rs. 1431.30 Lacs
* Outgo Rs. 4.87 Lacs Rs. 389 Lacs
PARTICULARS OF EMPLOYEES
Relations during the period under review continued to be peaceful and
harmonious. There was no employee who was drawing a salary of Rs.
60,00,000/- and above per annum if employed for full year, or a salary
of Rs. 5,00,000/- and above per month if employed for a part of the
year.
ACKNOWLEDGMENTS
Your Directors would like to place on record their sincere appreciation
for the wholehearted support and contributions made by all employees of
the Company, Customers, Bankers and Government Authorities. The
Directors also express their gratitude to the shareholders for their
valuable and un-stinted support.
For and on behalf of Board,
Place : CHANDIGARH H.K.Singhal AVINASH SHARMA
Date : 30.05.2014 Director Executive Director
Mar 31, 2013
Dear Members,
The Directors of your Company have pleasure in presenting the Annual
Report on Accounts for the Financial Year ending 31st March 2013.
FINANCIAL HIGHLIGHTS
(Rs. in Lacs)
PARTICULARS 2012-13 2011-12
Turnover and Other Income 3266.43 1306.33
Operating Profit 2358.03 301.72
Financial Expenses 155.23 107.75
Depreciation 46.00 59.69
Net Profit /(Loss) before Income Tax 2156.80 134.28
Prior period Adjustments 29.45 89.31
Tax Expense 431.80 26.36
Profit/ (Loss) after Tax 1695.55 18.61
OPERATIONS AND FUTURE OUTLOOK
The gross revenue from operations and other Income of your Company has
increased from Rs. 1306.33 lacs in 2011-12 to Rs. 3266.43 lacs in
2012-13, due to increase in sale of Real Estate and profit on sale of
Investments in Subsidiary Companies. Earnings before Interest and
Depreciation have also increased from s 301.72 lacs in 2011-12 to Rs.
2350.03 lacs in 2012-13.
SEGMENT REPORT
Your Company has a number of activities in its fold. Its primary
business activities include Construction and Engineering, Real Estate,
Information Technology and Trading. The Company is registered with
various Government Bodies like Uttranchal PWD (B&R), HP PWD (B&R),
Haryana PWD (B&R) and PUDA as class-1 contractors. This segment has the
largest share of revenue and profits in the performance of the Company.
This segment also provides consultancy in the field of civil
engineering and preparation and award of claims.
The Infotech Division of the Company undertakes activities of an
Internet Service Provider in Punjab Telecom Circle including Punjab,
Chandigarh, Panchkula and parts of Haryana and Himachal Pradesh.
The other important segment of activities of your Company is
Development and Sale of Real Estate. The Company is already in the
process of developing a Housing Complex on Ambala-Chandigarh National
Highway, at Derabassi in Punjab.
A breakup of the segment-wise performance is given in the ''Notes on
Accounts'' which forms a part of the Balance Sheet.
SUBSIDARY COMPANIES
During the year 2004-05 the Company had entered into a joint venture,
in Iran, for setting up a gas based fertilizer plant for which a
subsidiary Company under the name and style of LAVAN CHEMICAL CO. IRAN
had been incorporated. A sum of US $ 611028 (equivalent to Rs. 263.16
lacs) had been invested as Share Capital till 31.03.2012. During the
year under consideration the whole of the investments had been sold to
M/S SAB Fertilizers Pvt. Ltd, a wholly owned subsidiary Company, for a
total consideration of Rs. 1250.00 lacs.
During the Financial Year 2012-13, the Company had further acquired
12500000 number of equity shares in SAB Fertilizers Pvt. Ltd., a
Subsidiary Company. This investment has also been sold to Parus
International FZE, AJMAN, UAE during the year under consideration.
Hence, these Companies ceased to be subsidiary Companies under Section
212 of the Companies Act, 1956.
DEMATERILISATION
Effective from 09/05/2011, dematerialization of shares has been
permitted by National Securities Depository Limited (NSDL) and ISIN No.
INE137M01017 has been allotted to the Company for this purpose.
FINANCIAL STATUS
There is no change in the ''Issued and Subscribed Capital'' of
s15,18,83,720, divided into 1,51,88,372 equity shares of Rs. 10/- each,
during the year.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956, Shri S S
Dawra and Shri Kanwarjit Singh, Directors of the Company, retire by
rotation at the ensuing Annual General Meeting and, being eligible,
offer themselves for re-appointment.
DIVIDEND
Keeping in view the business commitments, your Company has decided not
to declare any dividend for the year 2012-13.
INTERNAL CONTROL SYSTEMS
The internal control systems and processes of your Company cover
operational efficiency, accuracy and promptness in financial reporting,
compliance with laws and regulations and development of mature,
disciplined and effective processes. The processes are also designed to
meet the goals of cost, schedule, functionality and quality, thus
resulting in higher levels of customer satisfaction.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forms part of the Directors''
Report in pursuance to Clause 49 of the Listing Agreement with Stock
Exchanges.
FIXED DEPOSITS
The Company has accepted fresh deposits of Rs. 7.00 lac from the public
during the year within the meaning of the provisions of Section 58-A of
the Companies Act, 1956. Deposits of Rs. 230.50 lacs were brought
forward from previous year. Also, there are no unpaid or unclaimed
deposits of any previous years.
AUDITORS
M/s S.C. Dewan & Co., Chartered Accountants, were appointed as
Statutory Auditors of the Company to hold office till the conclusion of
the ensuing Annual General Meeting of the Company. The Auditors retire
at the said meeting and, being eligible, have offered themselves for
re-appointment. The company has received a certificate from them
pursuant to Section 224 (IB) of the Companies Act, 1956, confirming
their eligibility for reappointment.
Regarding valuation of Investments in quoted shares and Agricultural
Lands & Buildings, the same has been done at cost, instead of market
price, to comply with the Accounting Standards.
INSURANCE
All the insurable Properties and Assets of the Company have been
adequately insured.
Management Discussion and Analysis Your Company is engaged in
''Construction & Engineering'', InfoTech, Real Estate and Trading
business.
Inspite of difficult economic scenario, your Company has been able to
improve its performance during the year under review.
Real Estate business is again picking up in the country. The Company is
gearing up to seize this opportunity to grow. The Company has already
launched a Housing Complex named "SSL HIGHWAY TOWERS" at Derabassi near
Chandigarh. The business is expected to pick up in the near future.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Ac, 1956, the Directors''
confirm that :
i) in preparation of the Balance Sheet and the Profit and Loss Account
and Cash Flow Statement of the Company, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures.
ii) the Directors have selected such accounting policies and applied
them consistently and made judgements 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.
iii) 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.
iv) The annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
(a) The provisions of Section 217(1)(e) of the Companies Act, 1956 with
regard to Conservation of Energy and Technology Absorption are not
applicable as your Company is not engaged in any Industrial activities.
(b) Foreign Exchange Earnings and Outgo:
31.03.2013 31.03.2012
* Earnings Nil Nil
* Outgo Rs. 1438.13 Lacs Rs. 84.63 Lacs
PARTICULARS OF EMPLOYEES
Relations during the period under review continued to be peaceful and
harmonious. There was no employee who was drawing a salary of Rs.
60,00,000/- and above per annum if employed for full year, or a salary
of Rs. 5,00,000/- and above per month if employed for a part of the
year.
ACKNOWLEDGMENTS
Your Directors would like to place on record their sincere appreciation
for the wholehearted support and contributions made by all employees of
the Company, Customers, Bankers and Government Authorities. The
Directors also express their gratitude to the shareholders for their
valuable and un-stinted support.
For and on behalf of Board,
Place : CHANDIGARH H.K.Singhal AVINASH SHARMA
Date : 25.05.2013 Director Executive Director
Mar 31, 2012
Dear Members,
The Directors of your Company have pleasure in presenting the Annual
Report on Accounts for the Financial Year ending 31st March 2012.
FINANCIAL HIGHLIGHTS
(Rs. in Lacs)
Particulars 2011-12 2010-11
Turnover and Other Income 1306.33 1799.57
Operating Profit 301.72 384.97
Financial Expenses 107.75 111.03
Depreciation 59.69 67.78
Net Profit /(Loss) before Income Tax 134.28 206.16
Prior period Adjustments 89.31 60.58
Tax Expense 26.36 63.31
Profit/ (Loss) after Tax 18.61 82.27
OPERATIONS AND FUTURE OUTLOOK
Due to recession in the Real Estate business, gross income of the
Company has decreased to Rs.1306.33 lacs during the year under review
as against Rs.1799.57 lacs during the previous year. The gross profit
was lower at Rs.301.72 lacs as against Rs.384.97 lacs, as also the net
profit before tax decreased to Rs.18.61 lacs as against Rs.82.27 lacs.
Your Company is making all efforts to strengthen its operations.
SEGMENT REPORT
Your Company has a number of activities in its fold. Its primary
business activities include Construction and Engineering, Real Estate,
Information Technology and Trading. The Company is registered with
various Government Bodies like Uttranchal PWD (B&R), HP PWD (B&R),
Haryana PWD (B&R) and PUDA as class-1 contractors. This segment has
the largest share of revenue and profits in the performance of the
Company. This segment also provides consultancy in the field of civil
engineering and preparation and award of claims.
The Infotech Division of the Company undertakes activities of an
Internet Service Provider in Punjab Telecom Circle including Punjab,
Chandigarh, Panchkula and parts of Haryana and Himachal Pradesh.
The other important segment of activities of your Company include
development and sale of Real Estate. The Company is already in the
process of developing a Housing Complex at Derabassi, on
Ambala-Chandigarh National Highway, at Derabassi in Punjab.
A breakup of the segment-wise performance is given in the ''Notes on
Accounts'' which forms a part of the Balance Sheet.
SUBSIDARY COMPANIES
As reported earlier, the Company has promoted a joint venture Company
in Iran for manufacture of approximately 2000 tonnes and 2600 tonnes of
Ammonia and Urea respectively together with their respective and
related by- products. As per agreement, your Company will have 55%
share in the Equity of the Company. The said Company has allotted 660
Equity Shares of Iranian Rials 85,00,000 each, till date, amounting to
Rs.2,63,15,831, to your Company.
During the year, a wholly owned subsidiary of the Company under the
name and style of "SAB Fertilizers Private Limited" has been formed to
look after the aforesaid business of manufacture of Fertilizers. The
new company would later look after its operations in Iran
independently.
Another Wholly owned Subsidiary, Munak International Trading
Corporation, Mauritius, established for trading activities, did not
undertake any business during the year. This Company has since been
closed, and its name removed from the register of Mauritius Registrar
of Companies w.e.f. 16.11.2011.
As required under Section 212 of the Companies Act, 1956, the Accounts
and Statements of SAB Fertilizers Private Limited, Munak International
Trading Corporation, Mauritius and Lavan Chemical Company, Iran are
attached and form a part of this report.
ALLOTMENT OF WARRANTS
The Company had allotted 3,23,072 optionally convertible warrants on
31.03.2011 with an option to the applicants to convert each warrants
into one equity share of Rs.10/- at a price of Rs.260/- per equity
share within a period of one year, subject to receipt of full payment
before conversion. The warrants have been forfeited due to non payment
of balance amount.
DEMATERILISATION
Effective from 09/05/2011, dematerialization of shares has been
permitted by National Securities Depository Limited (NSDL) and ISIN No.
INE137M01017 has been allotted.
FINANCIAL STATUS
There is no change in the issued and subscribed capital of
Rs.15,18,83,720 divided into 1,51,88,372 equity shares of Rs.10/- each.
DIRECTORS
Since the last Annual General Meeting, Ms Priya Garg has resigned on
11/11/2011 from the Board of Directors:
Your Directors place on record appreciation of the valuable guidance
rendered by Ms Priya Garg during her association with the Company.
Shri Ram K Gupta and Shri Vijay G Kalantri Directors of the Company,
retire by rotation at the ensuing Annual General Meeting and, being
eligible, offer themselves for re- appointment.
DIVIDEND
Keeping in view the business commitments, your Company has decided not
to declare any dividend for the year 2011-12.
INTERNAL CONTROL SYSTEMS
The internal control systems and processes of your Company cover
operational efficiency, accuracy and promptness in financial reporting,
compliance with laws and regulations and development of mature,
disciplined and effective processes. The processes are also designed to
meet the goals of cost, schedule, functionality and quality, thus
resulting in higher levels of customer satisfaction.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forms part of the Directors''
Report in pursuance to Clause 49 of the Listing Agreement with Stock
Exchanges.
FIXED DEPOSITS
The Company has accepted fresh deposits of Rs.55.50 lac from the public
during the year within the meaning of the provisions of Section 58-A of
the Companies Act, 1956. Deposits of Rs.175.00 lacs were brought
forward from previous year. Also, there are no unpaid or unclaimed
deposits of any previous years.
AUDITORS
M/s S.C. Dewan & Co., Chartered Accountants, were appointed as
Statutory Auditors of the Company to hold office till the conclusion of
the ensuing Annual General Meeting of the Company. The Auditors retire
at the said meeting and, being eligible, have offered themselves for
re-appointment. The company has received a certificate from them
pursuant to Section 224 (IB) of the Companies Act, 1956, confirming
their eligibility for reappointment.
Regarding valuation of Investments in quoted shares and Agricultural
Lands & Buildings, the same has been done at cost, instead of market
price, to comply with the Accounting Standards.
INSURANCE
All the Properties of the Company have been adequately insured.
MANAGEMENT DISCUSSION AND ANALYSIS
Your Company is engaged in construction & engineering, InfoTech, Real
Estate and Trading.
Real Estate business is again picking up in the country. The Company is
gearing up to seize this opportunity to grow. The Company has already
launched a Housing Complex named "SSL HIGHWAY TOWERS" at Derabassi near
Chandigarh. The business is expected to pick up in the near future.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Ac, 1956, the Directors''
confirm that :
i) in preparation of the Balance Sheet and the Profit and Loss Account
and Cash Flow Statement of the Company, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures.
ii) the Directors have selected such accounting policies and applied
them consistently and made judgements 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.
iii) 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.
iv) The annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
(a) The provisions of Section 217(1)(e) of the Companies Act, 1956 with
regard to Conservation of Energy and Technology Absorption are not
applicable as your Company is not engaged in any Industrial activities.
(b) Foreign Exchange Earnings and Outgo:
31.03.2012 31.03.2011
* Earnings Nil Nil
* Outgo Rs.84.63 Lacs Rs.123.43 Lacs
PARTICULARS OF EMPLOYEES
Relations during the period under review continued to be peaceful and
harmonious. There was no employee who was drawing a salary of
Rs.60,00,000/- and above per annum if employed for full year, or a
salary of Rs.5,00,000/- and above per month if employed for a part of
the year.
ACKNOWLEDGMENTS
Your Directors would like to place on record their sincere appreciation
for the wholehearted support and contributions made by all employees of
the Company, Customers, Bankers and Government Authorities. The
Directors also express their gratitude to the shareholders for their
valuable and un-stinted support.
For and on behalf of Board,
Place : CHANDIGARH H.K.SINGHAL AVINASH SHARMA
Date : 29.05.2012 DIRECTOR EXECUTIVE DIRECTOR
Mar 31, 2011
Dear Members,
The Directors of your Company have pleasure in presenting the Annual
Report on Accounts for the financial year ending 31st March, 2011.
FINANCIAL HIGHLIGHTS
(Rs.in Lacs)
31.03.2011 31.03.2010
Turnover and Other Income 1828.15 2101.72
Operating Profit 384.97 251.19
Financial Expenses 111.03 72.19
Depreciation 67.78 66.29
Net Profit/ (Loss) before Income Tax 206.16 112.71
Profit after Tax 14.29 81.22
OPERATIONS AND FUTURE OUTLOOK
Due to recession in the Real Estate business, gross income of the
Company has decreased to Rs.1828.15 lacs during the year under review
as against Rs.2101.72 lacs during the previous year. The gross profit
was higher at Rs.384.97 lacs as against Rs.251.19 lacs, as also the net
profit before tax increased to Rs.206.16 lacs as against Rs.112.71
lacs. Your Company is making all efforts to strengthen its operations.
SEGMENT REPORT
Your Company has a number of activities in its fold. Its primary
business activities include Construction and Engineering, Real Estate,
Information Technology and Trading. The Company is registered with
various Government Bodies like Uttranchal PWD (B&R), HP PWD (B&R),
Haryana PWD (B&R) and PUDA as class-1 contractors. This segment has the
largest share of revenue and profits in the performance of the Company.
This segment also provides consultancy in the field of civil
engineering and preparation and award of claims.
The Infotech Division of the Company undertakes activities of an
Internet Service Provider in Punjab Telecom Circle including Punjab,
Chandigarh, Panchkula and parts of Haryana and Himachal Pradesh.
The other important segment of activities of your Company include
development and sale of Real Estate. The Company is already in the
process of developing a Housing Complex at Derabassi, on
Ambala-Chandigarh National Highway, at Derabassi in Punjab.
A breakup of the segment-wise performance is given in the ''Notes on
Accounts'' which forms a part of the Balance Sheet.
SUBSIDIARY COMPANY
As reported earlier, the Company has promoted a joint venture Company
in Iran for manufacture of approximately 2000 tonnes and 2600 tonnes of
Ammonia and Urea respectively together with their respective and
related by- products. As per agreement, your Company will have 55%
share in the Equity of the Company. The said Company has allotted 660
Equity Shares of Iranian Rials 85,00,000 each, till date, amounting to
Rs.2,63,15,831, to your Company.
Another Whol ly owned Subsidiary, Munak International Trading
Corporation, Mauritius, established for trading activities, did not
undertake any business during the year.
As required under Section 212 of the Companies Act, 1956, the Accounts
and Statements of Munak International Trading Corporation and Lavan
Chemical Company, Iran are attached and form a part of this report.
ALLOTMENT OF WARRANTS
On 30.03.2011, the Company has allotted 3,23,072 optionally convertible
warrants with a option to convert each warrants into one equity share
of Rs.10/- at a price of Rs.260/- per equity share to the applicants
within a period of one years, subject to receipt of full payment before
conversion..
DEMATERILISATION
Effective from 09/05/2011, dematerialization of shares has been
permitted by National Securities Depository Limited (NSDL) and has
allotted ISIN No. INE137M01017.
FINANCIAL STATUS
There is no change in the issued and subscribed capital of
Rs.15,18,83,720 divided into 1,51,88,372 equity shares of Rs.10/- each.
DIRECTORS
During the year, Ms Priya Garg has been appointed as Executive Director
of the Company for three years w.e.f. 01.01.2011.
Shri S S Dawra and Shri Kanwarjit Singh, Directors of the Company,
retire by rotation at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment.
DIVIDEND
Keeping in view the business commitments, your Company has decided not
to declare any dividend for the year 2010-11.
INTERNAL CONTROL SYSTEMS
The internal control systems and processes of your Company cover
operational efficiency, accuracy and promptness in financial reporting,
compliance with laws and regulations and development of mature,
disciplined and effective processes. The processes are also designed to
meet the goals of cost, schedule, functionality and quality, thus
resulting in higher levels of customer satisfaction.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forms part of the Directors''
Report in pursuance to Clause 49 of the Listing Agreement, with Stock
Exchanges.
FIXED DEPOSITS
The Company has accepted fresh deposits of Rs.75.00 lac from the public
during the year within the meaning of the provisions of Section 58-A of
the Companies Act, 1956. Deposits of Rs.100.00 lacs were brought
forward from previous year. Also, there are no unpaid or unclaimed
deposits of any previous years.
AUDITORS
M/s S.C. Dewan & Co., Chartered Accountants, were appointed as
Statutory Auditors of the Company to hold office till the conclusion of
the ensuing Annual General Meeting of the Company. The Auditors retire
at the said meeting and, being eligible, have offered themselves for
re-appointment. The company has received a certificate from them
pursuant to Section 224 (IB) of the Companies Act, 1956, confirming
their eligibility for reappointment.
Regarding valuation of Investments in quoted shares and Agricultural
Lands & Buildings, the same has been done at cost, instead of market
price, to comply with the Accounting Standards.
INSURANCE
All the Properties of the Company have been adequately insured.
MANAGEMENT DISCUSSION AND ANALYSIS
Your Company is engaged in construction & engineering, InfoTech, Real
Estate and Trading. Besides, the Company has also promoted a Joint
Venture Company in Iran for setting up a project for the production of
approximately 2000 tonnes and 2600 tonnes of Ammonia and Urea
respectively, together with their respective and related By- products.
Real Estate business is again picking up in the country. The Company is
gearing up to seize this opportunity to grow. The Company has already
launched a Housing Complex named "SSL HIGHWAY TOWERS" at Derabassi near
Chandigarh. The business is expected to pick up in the near future.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors''
confirm that :
i) in preparation of the Balance Sheet and the Profit and Loss Account
and Cash Flow Statement of the Company, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures.
ii) the Directors have selected such accounting policies and applied
them consistently and made judgements 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.
iii) 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.
iv) The annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
(a) The provisions of Section 217(1)(e) of the Companies Act, 1 956
with regard to Conservation of Energy and Technology Absorption are not
applicable as your Company is not engaged in any Industrial activities.
(b) Foreign Exchange Earnings and Outgo:
31.03.2011 31.03.2010
* Earnings Nil Nil
* Outgo Rs. 123.43 Lacs 383.73 Lacs
PARTICULARS OF EMPLOYEES
Relations during the period under review continued to be peaceful and
harmonious. There was no employee who was drawing a salary of
Rs.60,00,000/- and above per annum if employed for full year, or a
salary of Rs.5,00,000/- and above per month if employed for a part of
the year.
ACKNOWLEDGMENTS
Your Directors would like to place on record their sincere appreciation
for the wholehearted support and contributions made by all employees of
the Company, Customers, Bankers and Government Authorities. The
Directors also express their gratitude to the shareholders for their
valuable and un-stinted support.
For and on behalf of
BOARD OF DIRECTORS
Place : Chandigarh H.K. Singhal Avinash Sharma
Dated: 30.05.2011 Director Executive Director
Mar 31, 2010
Dear Members,
The Directors of your Company have pleasure in presenting the Annual
Report on Accounts for the financial year ending 31st March, 2010.
FINANCIAL HIGHLIGHTS
(Rs.in Lacs)
31.03.2010 31.03.2009
Turnover and Other Income 2101.72 2721.37
Operating Profit 251.19 831.62
Financial Expenses 72.19 318.22
Depreciation 66.29 84.95
Net Profit/ (Loss) before Income Tax 112.71 428.45
Profit after Tax 81.22 387.16
OPERATIONS AND FUTURE OUTLOOK
Due to recession in the Real Estate business, gross income of the
Company has decreased to Rs.2101.72 lacs during the year under review
as against Rs.2721.37 lacs during the previous year. The gross profit
was lower at Rs.251.19 lacs as against Rs.831.62 lacs, as also the net
profit before tax declined to Rs.112.71lacs as against Rs.428.45 lacs.
Your Company is making all efforts to strengthen its operations.
SEGMENT REPORT
Your Company has a number of activities in its fold. Its primary
business activities include Construction and Engineering, Real Estate,
Information Technology and Trading. The Company is registered with
various Government Bodies like Uttranchal PWD (B&R), HP PWD (B&R),
Haryana PWD (B&R) and PUDA as class-1 contractors. This segment has the
largest share of revenue and profits in the performance of the Company.
This segment also provides consultancy in the field of civil
engineering and preparation and award of claims.
The Infotech Division of the Company undertakes activities of an
Internet Service Provider in Punjab Telecom Circle including Punjab,
Chandigarh, Panchkula and parts of Haryana and Himachal Pradesh.
The other important segment of activities of your Company include
development and sale of Real Estate. The Company is already in the
process of developing a Housing Complex at Derabassi, on
Ambala-Chandigarh National Highway, at Derabassi in Punjab.
A breakup of the segment-wise performance is given in the ''Notes on
Accounts'' which forms a part of the Balance Sheet.
SUBSIDIARY COMPANY
As reported earlier, the Company has promoted a joint venture Company
in Iran for manufacture of approximately 2000 tonnes and 2600 tonnes of
Ammonia and Urea respectively together with their respective and
related by- products. As per agreement, your Company will have 55%
share in the Equity of the Company. The said Company has allotted 660
Equity Shares of Iranian Rials 85,00,000 each, till date, amounting to
Rs.2,63,15,831, to your Company.
Another Wholly owned Subsidiary, Munak International Trading
Corporation, Mauritius, established for trading activities, did not
undertake any business during the year.
As required under Section 212 of the Companies Act, 1956, the Accounts
and Statements of Munak International Trading Corporation and Lavan
Chemical Company, Iran are attached and form a part of this report.
FINANCIAL STATUS
There is no change in the issued and subscribed capital of
Rs.15,18,83,720 divided into 1,51,88,372 equity shares of Rs.10/- each.
DIRECTORS
Shri H K Singhal and Shri Sanjay Garg, Directors of the Company, retire
by rotation at the ensuing Annual General Meeting and being eligible
offer themselves for re-appointment.
DIVIDEND
Keeping in view the expansion programmes to be undertaken by the
Company in future. Your Company has decided not to declare any dividend
during the year.
INTERNAL CONTROL SYSTEMS
The internal control systems and processes of your Company cover
operational efficiency, accuracy and promptness in financial reporting,
compliance with laws and regulations and development of mature,
disciplined and effective processes. The processes are also designed to
meet the goals of cost, schedule, functionality and quality, thus
resulting in higher levels of customer satisfaction.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forms part of the Directors''
Report in pursuance to Clause 49 of the Listing Agreement, with Stock
Exchanges.
FIXED DEPOSITS
During the year ended March 31, 2010, your Company has accepted
deposits Rs.100 lacs from the public within the meaning of the
provisions of Section 58-A of the Companies Act, 1956. Also, there are
no unpaid or unclaimed deposits of any previous years.
AUDITORS
M/s S.C. Dewan & Co., Chartered Accountants, were appointed as
Statutory Auditors of the Company to hold office till the conclusion of
the ensuing Annual General Meeting of the Company. The Auditors retire
at the said meeting and, being eligible, have offered themselves for
re-appointment. The company has received a certificate from them
pursuant to Section 224 (IB) of the Companies Act, 1956, confirming
their eligibility for reappointment.
Regarding valuation of Investments in quoted shares and Agricultural
Lands & Buildings, the same has been done at cost, instead of market
price, to comply with the Accounting Standards.
INSURANCE
All the Properties of the Company have been adequately insured.
MANAGEMENT DISCUSSION AND ANALYSIS
Your Company is engaged in construction & engineering, InfoTech, Real
Estate and Trading. Besides, the Company has also promoted a Joint
Venture Company in Iran for setting up a project for the production of
approximately 2000 tonnes and 2600 tonnes of Ammonia and Urea
respectively, together with their respective and related By- products.
Real Estate business is again picking up in the country. The Company is
gearing up to seize this opportunity to grow. The Company has already
launched a Housing Complex named "SSL HIGHWAY TOWERS" at Derabassi near
Chandigarh. The business is expected to pick up in the near future.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Ac, 1956, the Directors''
confirm that :
i) in preparation of the Balance Sheet and the Profit and Loss Account
and Cash Flow Statement of the Company, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures.
ii) the Directors have selected such accounting policies and applied
them consistently and made judgements 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.
iii) 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.
iv) The annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
(a) The provisions of Section 217(1)(e) of the Companies Act, 1956 with
regard to Conservation of Energy and Technology Absorption are not
applicable as your Company is not engaged in any Industrial activities.
(b) Foreign Exchange Earnings and Outgo:
31.03.2010 31.03.2009
* Earnings Nil Nil
* Outgo Rs. 383.73 Lacs 726.27 Lacs
PARTICULARS OF EMPLOYEES
Relations during the period under review continued to be peaceful and
harmonious. There was no employee who was drawing a salary of Rs.
24,00,000/- and above per annum if employed for full year, or a salary
of Rs. 2,00,000/- and above per month if employed for a part of the
year.
ACKNOWLEDGMENTS
Your Directors would like to place on record their sincere appreciation
for the wholehearted support and contributions made by all employees of
the Company, Customers, Bankers and Government Authorities. The
Directors also express their gratitude to the shareholders for their
valuable and un-stinted support.
For and on behalf of
BOARD OF DIRECTORS
Place : Chandigarh H.K. Singhal Avinash Sharma
Dated: 31.05.2010 Director Executive Director
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