Era Infra Engineering

The Directors have pleasure in presenting the 18th Annual Report
 together with Audited Statement of Accounts of the Company for the year
 ended 31st March, 2008.
 
 Financial Results:
 
 Summarised financial results of the Company for the year under review
 are as below:
 
                                                         (Rs. in Lacs)
 Particulars                             Year Ended       Year Ended
                                      31st March, 2008  31st March, 2007
 
 
 Total Income                                149927.76        77631.62
 Profit before depreciation & tax             22985.28        11887.99
 Depreciation                                  2012.23          747.37
 Profit before tax                            20973.05        11140.62
 Provision for tax
 -Current                                      4861.73         1897.96
 -Deferred Tax                                 3440.32         1304.13
 -Fringe Benefit tax                             27.98           24.05
 -Income Tax for earlier years                  505.62            2.45
 Profit after tax                             12137.40         7912.03
 Proposed Dividend together with Tax thereon    540.60          435.54
 Dividend & Dividend Tax (Previous year)        105.07
 Transfer to General Reserve                   1215.00          791.00
 Transfer to Debenture Redemption Reserve      1910.00         2260.00
 Surplus carried to Balance Sheet             16765.80         8399.07
 
 Financial Performance
 
 The turnover of the Company for the year ended 31st March, 2008,
 reported a sharp increase of 93% rising to Rs. 149927.76 lacs from
 Rs.77631.62 lacs in the previous year.
 
 Profit before depreciation and taxation was Rs. 22985.28 lacs and after
 providing Rs. 2012.23 lacs towards depreciation and Rs 8835.65 lacs
 towards tax, the net profit amounts to Rs. 12137.40 lacs.
 
 Future Prospects
 
 The company is primarily engaged in diversified construction activities
 of power projects, roads, railways & other infrastructure projects. The
 company has a strong presence in the construction sector with an
 impressive track record.
 
 The Company has completed more than 60 projects since inception for
 renowned clients like NTPC, PGC, NHPC, RVNL, BHEL, IRWO, NBCC, PWD,
 NALCO to name a few. The company has received repeat orders from
 reputed clients like NTPC, Gujarat Ambuja, Rajasthan Spinning, Birla
 Tyres, Indian Glycols, National Dairy Development Board, etc. The key
 factor that has contributed to the companys 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 quality standards.
 
 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. The Company has on its roll over 1,700
 employees, which include 600 experienced and skilled engineers. The
 Company also has an in-house ERP system, which encompasses different
 gambits of efficient construction management.
 
 The company has achieved the turnover of Rs 1499.28 Crore during the FY
 2007-08, an increase of 93% over the previous financial year.  Despite
 the stiff competition and rising cost, your company achieved the Net
 Profit of Rs. 121.37 Crore, an increase of 53% over the previous
 financial year. The order book has increased from approx Rs 1700.00
 crore in 2007 to a robust current of over Rs. 5122.00 crore across
 sectors, to be implemented over a period of next three years. All
 on-going projects are monitored on a regular basis by the senior
 management based at Delhi and Noida office. The company has
 aggressively invested in an in-house ERP system, which encompasses
 different gambits of efficient construction management with greater
 efficiency, accuracy and predictability.
 
 With a view to move up the value chain from cash contracting to value
 added Built-Operate-Transfer Projects, the company in consortium has
 been bidding aggressively for BOT projects. The SPVs the company
 floated in consortium with the major players has been awarded the
 following two BOT Projects in the last financial year:
 
 - Hyderabad Urban Development Authority of India has awarded the
 development & construction of the new eight-lane Narsingi-Kollur from
 Km 0.000 to Km 12.00 on BOT (Annuity) basis for the concession period
 of 15 years as a part of Phase-IIA of the construction of Outer Ring
 Road to Hyderabad City.
 
 - National Highway Authority of India has awarded the development and
 construction of 62 KM Delhi Border to Rohtak highway, which includes
 the construction of four lane bypass at Bahadurgarh and Rohtak and six
 laning of existing carriage way. The project is toll base revenue
 generation and for a total concession period of 25 years.
 
 As a part of expansion plans and future strategy the company has
 re-organized its functional structure and created new divisions, which
 will further accelerate the growth pace of the company. These new
 divisions are:
 
 Ready Mix Concrete (RMC) Division: RMC is the concrete delivered at
 site or into a purchasers vehicle, in a plastic condition and
 requiring no further treatment before being placed in the position in
 which it is to set and harden. Major infrastructure and power projects
 are most likely to have dedicated batching plants at their site and
 will have substantial volume. RMC generally denotes commercial ready
 mix concrete and of course real estate will be a major consumer of
 commercial RMC.
 
 The company in its RMC Division has started seven RMC units and expects
 to establish 60 units across pan India with in next 3 years. In the
 first phase of launch of this business the company has started
 manufacturing activities at following sites i.e Greater Noida,
 Sahibabad, Manesar, and Faridabad. All these sites have huge potential.
 
 Equipment Management Division: In todays infrastructure development
 sector the demand for construction equipments is huge. To tap this huge
 opportunity and making efficient use of large equipment base the
 company has started this division. The aim of starting this division is
 to make revenue by using the equipments in most efficient manner and
 further to provide the strength to internal execution.
 
 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 a
 something which speaks about the other good attributes of the company.
 
 Power Sector
 
 Your directors have pleasure to inform you that your company is
 expanding its horizon in Power Sector also.
 
 In pursuance of this objective, the company is going to establish a
 thermal power plant of 1320 MW in the State of Madhya Pradesh through
 its wholly owned subsidiary M/s ERA POWER (INDIA) PRIVATE LIMITED. In
 this pursuit the company has initiated relevant steps and procedures
 for obtaining various clearances and permissions.
 
 Further, the said subsidiary has took major stakes in exiting
 identities to get the pre-qualification of installation rights. As on
 date these identities are executing laying down and installation of
 transmission line works.
 
 Dividend
 
 The Directors recommend a Dividend of Rs.2/- per Equity Share (20 per
 cent) for the financial year 2007-08. If the dividend, as recommended
 by the Board of Directors, is approved at this AGM, payment of such
 dividend will be made on or after September 30, 2008.
 
 Material Changes
 
 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.
 
 Public Deposits
 
 Public Deposits of the Company as on 31st March, 2008, were Rs.27.48
 lacs as compared to Rs. 352.53 lacs as at 31st March, 2007. There were
 no overdue deposits. However, there were 9 cases of unclaimed deposits
 amounting to Rs. 1.62 lacs as at 31st March, 2008. The Company has been
 continuously taking appropriate steps to renew /repay the unclaimed
 deposits.
 
 Directors
 
 Mr. A K Mehta and Mr. Arvind Pande retire by rotation at the
 forthcoming Annual General Meeting and being eligible offer themselves
 for reappointment.
 
 During the year, Mr. S K Rustagi & Mr. Amarjit Gupta resigned from the
 Board on 17th May 2007 & 31st October 2007 respectively. The Board
 while accepting the resignation of Mr. S K Rustagi & Mr. Amarjit Gupta
 recorded its appreciation for the contributions made by them during
 their tenure as directors of the Company.
 
 Mr. S D Kapoor was appointed as an Additional Director of the Company
 with effect from 1st December 2007 at the meeting of the Board of
 Directors held on 30th November, 2007. Mr. S D Kapoor is MBA from
 University of Leeds, UK and B.Sc (Met Engg.) and has over 25 years
 versatile experience. He served as the chairman of MMTC Ltd. and
 Neelanchal Ispat Nigam Ltd. His appointment as a director is
 recommended to the shareholders of the Company for their approval.
 
 Mr. Ajay Kumar Mishra was appointed as an Additional Director of the
 Company at the meeting of the Board of Directors held on 29th March,
 2008. Mr. Ajay Kumar Mishra is Masters in Science and MBA (Finance),
 and has more than two decades of experience in finance and
 administration. His appointment as a director is recommended to the
 shareholders of the Company for their approval.
 
 Auditors
 
 M/s G. C. Sharda & Co., Chartered Accountants, the Statutory Auditors,
 will retire at the conclusion of the forthcoming Annual General Meeting
 and are eligible for re-appointment. The Audit Committee and your Board
 recommend their reappointment as Auditors of the Company. The company
 has received a letter from them to the effect that their reappointment,
 if made, would be within the prescribed limit under Section 224(1B) of
 the Companies Act, 1956.
 
 Audit Committee
 
 The Audit Committee consists of four members namely Mr. A.K. Mehta, Mr.
 S.D. Sharma, Mr. J.L. Khushu and Mr. Arvind Pande out of which three
 are independent. 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.
 
 Auditors Report
 
 The Auditors Report does not contain any adverse remark or
 qualification hence the same do not call for further information or
 explanation.
 
 Subsidiary Company
 
 As per Section 212 of the Companies Act, 1956, we are required to
 attach the Directors Report, Balance Sheet and Profit and Loss Account
 of our subsidiary companies.
 
 We believe that the Consolidated Financial Statements present a more
 comprehensive picture rather than the standalone financial statements.
 We therefore applied to the Ministry of Corporate Affairs, Government
 of India and sought exemption from the requirement to present detailed
 financial statements of each subsidiary. The Ministry of Corporate
 Affairs, Government of India has granted exemption vide its letter
 dated 09.07.2008.
 
 In compliance with the terms of the exemption we have presented summary
 financial information for each subsidiary which includes Capital,
 Reserves, Total Assets, Total Liabilities, Investment (except in case
 of Subsidiaries), Turnover, Profit before taxation, Provision for
 taxation, Profit after taxation and Proposed dividend.
 
 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.
 
 Listing
 
 The equity shares continue to be listed on The Bombay Stock Exchange
 Ltd. (BSC) and The National Stock Exchange of India Ltd. (NSE). Both
 these Stock Exchanges have nation wide terminals and therefore,
 shareholder/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 2008-09 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.
 
 The GDRs issued by the Company are listed at Luxumberg Stock Exchange,
 Luxumberg and FCCBs issued are listed at Singapore Stock Exchange,
 Singapore.
 
 Corporate Governance & Management Dicussion & Analysis
 
 The Company has complied with all mandatory requirements of clause 49
 of the listing agreement. A separate section on Corporate Governance,
 Management Discussion & Analysis including a certificate from Mr. R. S.
 Bhatia, Company Secretary in Practice regarding compliance of
 conditions of Corporate Governance forms part of this Annual Report.
 
 Overseas Joint Venture:
 
 Your Company holds minority stake in M/s SPA Group Era India Algeria, a
 company which is engaged in construction activity.
 
 Conservation Of Energy, Technology Absorption, Foreign Exchange
 Earnings And Outgo
 
 Your Company has no activity relating to conservation of energy as
 prescribed under the rules, however all steps are taken to conserve
 energy at all levels of operations wherever posssible.
 
 Further, your Company is not using any forgien technology.
 
 The foreign exchange earning /outgo during the year are as under:
 
                                                         (Rs. in Lacs)
 Particular                                   Current       Previous
                                                Year          Year
 
 Foreign Exchange Earning                        Nil           Nil
 Foreign Exchange Outgo                        3234.46       1545.40
 
 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
 report.
 
 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, 2008.
 
 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, 2008 and of
 the profit of the Company for the financial year ending 31st March,
 2008.
 
 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, 2008 on a going concern basis.
 
 Acknowledgement
 
 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 29, 2008               Chairman & Managing  Director