The Directors have pleasure in presenting the 23rd Annual Report
together with Audited Statement of Accounts of the Company for the year
ended 31st March, 2013.
The Summarized financial results of the Company for the year under
review are as below:
(Rs. in lacs)
PARTICULARS Year Ended Year Ended
31st March, 2013 31st March, 2012
Total Income 4,70,181.37 4,38,399.52
Profit before depreciation
& tax 37,172.60 41,758.16
Depreciation 11,041.39 9,736.35
Profit before tax & Extra
Ordinary Items 26,131.21 32,021.81
Extra Ordinary Items 2,354.68 4,122.74
Profit before tax 23,776.53 27,899.07
Provision for tax
- Current Tax 4,676.43 6,567.63
- Deferred Tax 3,947.78 4,351.04
- MAT Credit/Fringe Benefit Tax (1,675.15) -
- Tax adjustment for earlier years - 877.67
Profit after tax 16,827.47 16,102.74
Proposed Dividend together
with Tax thereon 845.30 845.30
Transfer to General Reserve 1,682.75 1,610.28
Transfer to Debenture Redemption
Reserve 310.00 1,045.00
Surplus carried to Balance Sheet 104,730.08 90,740.66
The turnover of the Company for the year ended 31st March, 2013,
reported an increase of 7.25 % rising to Rs. 4,70,181.37 lacs from Rs.
4,38,399.52 lacs in the previous year.
Profit before depreciation and taxation was Rs. 37,172.60 lacs and
after providing Rs. 11,041.39 lacs towards depreciation, Extra-Ordinary
Item on account of Foreign Currency Translation Loss of Rs. 2,354.68
and Rs. 6,949.06 lacs towards tax, the net profit amounts to Rs.
The flagship company of the Era Group, Era Infra Engineering Ltd. is
amongst one of the fastest growing infrastructure companies in India
with a wide sectoral presence. Continuously striving to foray into
fast-growing infrastructure segments, across India and outside, the
Company has diverse and extensive execution experience across key
sectors of growth. Armed with extensive engagement with prestigious
clients across both public as well as private sector, Era Infra
Engineering is a central player in key infrastructural development that
is instrumental in building the lifeline of tomorrow.
The Company has completed various projects since inception for renowned
clients like NTPC, PGC, NHPC, RVNL, BHEL, IRWO, NBCC, PWD, NALCO, RVNL,
Airport Authority of India, Delhi Metro Rail Corporation Limited, Delhi
Authority (DDA), Central Public Works Departments and Department of
Atomic Energy to name a few. The company had received repeated orders
from reputed clients like NTPC, Gujarat Ambuja, Rajasthan Spinning,
Birla Tyres, Indian Glycols, National Dairy Development Board, Bharat
Heavy Electrical Limited etc. The key factor that has contributed to
the company''s success is in-house technical expertise and strong
project management capabilities, which ensures timely execution of the
projects within budgeted costs and continued emphasis on maintaining
The Company is professionally managed with well-qualified and
experienced personnel in all areas including engineering, finance and
administration combined with a full-fledged Enterprise Resource
Planning (ERP) and MIS system. As on 31st March, 2013, the Company has
on its roll over Three Thousand Seven Hundred & Twenty Two (3722)
employees, which includes around One Thousand One Hundred (1100)
experienced and skilled engineers.
The Order Book of Company has increased from approx Rs. 14,137.00 Cr.
in 2012 to Rs. 16,205.00 Cr. (approx) as on date across sectors, to be
implemented over a period of next two to three years. All ongoing
projects are monitored on a regular basis by the senior management
based at Delhi and Noida offices. The company has aggressively invested
in an in- house ERP system, which encompasses different areas of
efficient construction management with greater efficiency, accuracy and
In tandem with the growth momentum of the earlier years, your company
has strengthen its position in the market by stepping in diversified
segments, in this financial year they are focusing more on the complex
projects with longer duration which will truly portrays the in-built
capability of your company.
A few of recent Infrastructure projects (including Social Infra)
secured by the company from prestigious clients in Public/Private
Sectors are as follows:
1. A project for Extension of Vikram Sarabhai Bhavan including Civil,
Public Health & Electrical Works by Department of Atomic Energy at
2. A contract for Construction Works of Heritage Institute of Medical
Sciences at NH-2, Bhadawa, Varanasi by Heritage Hospitals.
3. A Contract for Construction of New Operation Theatre (OT) Block
and Service Blocks at Pandit B.D. Sharma Post Graduate Institute of
Medical Sciences, Rohtak (Haryana) under PMSSY-II by Ministry of
Health & Family Welfare. (MoHFW) Govt. of India.
4. A contract from National Buildings Construction Corporation Limited
(NBCC) for Construction of Proposed Office Block, Allied Services,
External Development Works etc. for Satluj Jal Vidyut Nigam (SJVN) at
Sanahan, Shimla, Himachal Pradesh.
5. Another contract from National Buildings Construction Corporation
Limited (NBCC) for Construction / Up gradation of NICD to NCDC at 22,
Sham Nath Marg, Delhi Sub Head: Civil, Internal & External
Electrification, Water Supply, Plumbing Work, Fire Fighting, Finishing
Fixtures, HVAC with Allied Works etc.(Pkg-I).
6. A Contract in housing segment from Delhi Development Authority, for
construction of 3000 Multi storyed Dwelling Units at Community Centre
Site (A Turnkey Project) by Delhi Development Authority (DDA) under
in- Situ Rehabilitation at Kalkaji Extension, New Delhi.
7. A contract from Department of Atomic Energy, Government of India
for Construction of Phase-I Hostel Complex consisting of 376 bachelor
and 136 married accommodation including Civil, Internal & External PH
Works, Internal Electrical Works and Development works for Trainees of
BARC / HBNI at Anushaktinagar, Mumbai.
8. A Contract for Construction of elevated viaduct, 5 elevated
Stations viz Kadavanthara, Elamkulam, Vyttila, Thaikoodam & Petta (from
Chainage 19329.685 m to 25119.278 m) including Architectural Finishing,
Plumbing works of Stations on Alwaye-Petta Line of Kochi Metro Rail
Project in Kochi, Kerala by Delhi Metro Rail Corporation Ltd.
9. The work of Main Plant and Offsite Civil Works Package for Lara
Super Thermal Power Project, Stage-I (2 x 800 MW) in Raigarh district
of Chhattisgarh by NTPC Limited.
10. The work of SG and Offsite Civil Works Package for Nabinagar Super
Thermal Power Project, (3x660 MW) in Aurangabad district of Bihar by
Nabinagar Power Generating Company Pvt. Ltd (NPGC)(A Joint Venture of
NTPC Limited and Bihar State Electricity Board).
Presently the company has two strategic divisions which help the
company in maintaining its growth momentum.
A) EPC Division (National & International)
This division is in a growth phase, the order book position has
improved considerably over the years and it has bagged orders from
prestigious clients like NHAI, NTPC, Airport Authority of India, Delhi
Metro Rail Corporation Limited, Naya Raipur Development Authority etc.
The division''s business extends across major sectors of infrastructural
growth and it broadly encompasses Roads/ Highways, Power, T&D, Metro,
Aviation, Social Infra, Industrial Refinery.
This year, the Division was instrumental in achieving some of the
important milestone in the history of the company. This year the
Company as EPC Contractor successfully achieved the Commercial
Operation Date (COD) of two prestigious road projects:
1. Gwalior Bypass: A Project for design, construction, development,
finance, operation and maintenance of the work of Construction of New
Four Lane Gwalior Bypass of the Length 42.033 km from km 103.00 of NH -
3 to km
16.00 on NH - 75 in The state of Madhya Pradesh, under North - South
Corridor (NHDP - Phase-II) on Build, Operate & Transfer (BOT) (Annuity)
2. Hyderabad Ring Road: A Project for Design, Construction,
Development, Finance, Operation & Maintenance of Eight Lane Access
Controlled Expressway Under Phase - II A Programme as an Extension Of
Phase - I of Outer Ring Road To Hyderabad City, In The State Of Andhra
Pradesh, For The Package From Narsingi to Kollur From Km 0.00 To Km
12.00 on Build, Operate & Transfer (BOT) (Annuity) Basis.
B) Equipment Management Division:
This Division was set up to cater to the growing in-house and external
demand for a wide range of construction machinery and to make revenue
by using the equipments in most efficient manner and further to provide
the strength to internal execution. The division''s large Equipment Bank
spans machinery for diverse uses and includes Cranes/ Material Handling
Equipment, Pilling Equipment, Aerial Platform & Boom Lifts, Motor
Today the company is a known name in the field of Infrastructure
projects contributing to the Infrastructure development of modern
India. The Company has transformed from a mere construction company to
a major player in the Roads, Bridges, Power sector building, to BOOT
and BOT projects. Successful completion of projects in hand is a habit
of the company. No major Labour disputes, no Strikes/Labour unrest is
something which speaks about the other good attributes of the company.
The Directors recommend a Dividend of Rs. 0.40 per Equity Share (20.00
per cent) for the financial year 2012-13. If the dividend, as
recommended by the Board of Directors, is approved at this AGM, payment
of such dividend will be made on or before October 28, 2013.
There are no material changes and commitments, affecting the financial
position of the company between the end of financial year of your
company and the date of this Report.
Your Company has not accepted any deposits from the public or its
employees during the year under review. The details of loans and
advances, which are required to be disclosed in the annual accounts of
the Company pursuant to Clause 32 of the Listing Agreement with the
Company, are furnished separately.
There were no changes in the Directorship of the Company since last
Mr. S.D. Sharma and Mr. S.D. Kapoor retire by rotation at the
forthcoming Annual General Meeting and being eligible offer themselves
for reappointment. Their appointment require the approval of the
members at the ensuing Annual General Meeting.
M/s. G. C. Sharda & Co., Chartered Accountants, the Statutory Auditors,
who retire at the conclusion of the forthcoming Annual General Meeting,
have expressed their unwillingness to be re-appointed as the Statutory
Auditors of the Company for the financial year 2013-14 vide their
letter dated 12th August 2013.
A Notice has been received from a shareholder pursuant to Section 225,
read with Section 190, of the Companies Act, 1956 proposing a
resolution for approval of the shareholders at the ensuing Annual
General Meeting for appointment of M/s. Jain Praveen Kumar & Co., as
Statutory Auditors of the Company. The subject Resolution is appearing
as item no. 5 of the Notice convening the Annual General Meeting which
forms part of this Annual Report. M/s. Jain Praveen Kumar & Co., have
also given their consent to act as Statutory Auditors, if appointed,
and confirmed that the appointment, if made, would be in compliance of
Section 224 (1B) of the Companies Act, 1956.
Your Directors sincerely thank M/s G. C. Sharda & Co., Chartered
Accountants, for the professional services rendered by them to the
Company and place on record their valued contributions in the past
The Audit Committee consists of four members namely Mr. A.K. Mehta, Mr.
S.D. Sharma, Mr. T.D. Arora and Mr. Arvind Pande out of which three are
independent Directors. Mr. A. K. Mehta is the Chairman of Audit
Committee. All members of the Audit Committee possess sufficient
knowledge and experience in the field of Finance and Accounts.
The Auditors'' Report does not contain any adverse remark or
qualification hence the same do not call for further information or
As per Section 212 of the Companies Act, 1956, we are required to
attach the Profit and Loss Account, Balance Sheet, Auditors'' Report and
Directors'' Report of our subsidiary companies. We believe that the
Consolidated Financial Statements present a more comprehensive picture
rather than the standalone financial statements.
The Ministry of Corporate Affairs (MCA), Government of India (GOI),
vide its General Circular No. 2/2011 dated 8th February, 2011 has
granted a general exemption from the requirement of attaching the
Balance Sheet and Profit & Loss Account, Schedules to Accounts and
Notes forming part of the Accounts, Report of the Board of Directors,
Report of the Auditors etc., of subsidiary companies with the Annual
Accounts of the Company under Section 212(8) of the Companies Act, 1956
subject to compliance of conditions mentioned therein.
In terms of the aforesaid general exemption granted by MCA, the Board
of Directors of the Company has given its consent for not attaching the
Balance Sheet and Profit & Loss Account, Schedules to Accounts and
Notes forming part of the Accounts, Report of the Board of Directors,
Report of the Auditors etc., of its subsidiaries with the Annual
Accounts of the Company, in relation to the financial year ending on
31st March, 2013.
As permitted by SEBI guidelines and The Companies Act, 1956, we have
included Consolidated financial statements of your company in this
Annual Report. The detailed financial statements and audit reports of
the subsidiaries are available for inspection at the Registered Office
of the Company and upon written request from a shareholder; we will
arrange to send the full balance sheet, profit and loss account and
auditors'' report to the said shareholder.
The Equity shares continue to be listed on the Bombay Stock Exchange
Ltd. (BSE) and the National Stock Exchange of India Ltd. (NSE). Both
these Stock Exchanges have nation wide terminals and therefore,
shareholders/investors are not facing any difficulty in trading the
shares of the Company from any part of the Country. The Company has
paid annual listing fee for 2013-14 to the Bombay Stock Exchange Ltd.
and the National Stock Exchange of India Ltd. and annual custody fee to
National Securities Depository Limited and Central Depository Services
(India ) Limited.
CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION & ANALYSIS
A Company holds fiduciary relationship with its stakeholders and
community, here the Board of Directors of the Company act as trustee to
all the stakeholders of the Company to enhance the stakeholder''s value
and protect their interest. Your Company is committed to benchmark
itself with global standards in all areas including appropriate
standards for Good
Corporate Governance. Towards this end, an effective Corporate
Governance System has been put in place in the Company which also
ensures that the provisions of Clause 49 of the Listing Agreement are
duly complied with. A report on Corporate Governance, and Management
Discussion and Analysis, along with Certificate on its compliance from
Mr. R.S. Bhatia, Company Secretary in Practice is enclosed with this
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO Conservation of Energy:
The core activity of the company is civil construction which is not an
energy intensive activity, however all steps are taken to conserve
energy at all levels of operations wherever possible. There are no
particulars to be disclosed as per Companies (Disclosure of Particulars
in the Report of the Board of Directors) Rules, 1988.
During the year, there was no Technology Absorption, as your Company
has not undertaken any research and development activity in any
manufacturing activity nor any specific technology is obtained from any
external sources which needs to be absorbed or adapted.
Innovation is a culture in the Company to achieve cost efficiency in
the construction activity to be more and more competitive in the
prevailing environment and the effect of the same cannot be quantified.
PARTICULARS OF EMPLOYEES
Particulars of employees as required under Section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules, 1975 as amended are given in Annexure A and form part of this
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirements of Section 217(2AA) of the Companies Act,
1956, it is confirmed that:
1. The applicable accounting standards have been followed by the
Company in preparation of the annual accounts for the financial year
ended 31st March, 2013.
2. The Directors have selected 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 31st March, 2013 and of
the profit of the Company for the financial year ending 31st March,
3. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
4. The Directors have prepared accounts for the financial year ended
31st March, 2013 on a going concern basis.
Your Directors take this opportunity to place on record their
appreciation towards bankers, clients and all the business associates
for their continuous support to the Company and to the shareholders for
the confidence reposed in the Company management. The directors also
convey their appreciation to the employees at all levels for their
enormous personal efforts as well as collective contribution.
For and on Behalf of the Board
Place: New Delhi (H.S. Bharana)
Date: August 14, 2013 Chairman & Managing Director