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Era Infra Engineering Directors Report, Era Infra Eng Reports by Directors
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Era Infra Engineering
BSE: 530323|NSE: ERAINFRA|ISIN: INE039E01020|SECTOR: Infrastructure - General
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Download Annual Report PDF Format 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '13    Mar 12
Dear Members,
 
 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.
 
 FINANCIAL RESULTS:
 
 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
 
 
 FINANCIAL PERFORMANCE
 
 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.
 16,827.47 lacs.
 
 BUSINESS PERFORMANCE
 
 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
 Development
 
 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
 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. 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
 predictability.
 
 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
 Anushaktinagar, Mumbai.
 
 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)
 Basis.
 
 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
 Graders etc.
 
 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.
 
 DIVIDEND
 
 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.
 
 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
 
 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.
 
 DIRECTORS
 
 There were no changes in the Directorship of the Company since last
 reporting.
 
 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.
 
 AUDITORS
 
 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
 years.
 
 AUDIT COMMITTEE
 
 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.
 
 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 COMPANIES
 
 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.
 
 LISTING
 
 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
 Annual Report.
 
 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.
 
 Technology Absorption:
 
 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
 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, 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,
 2013.
 
 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. 
 
 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 14, 2013                  Chairman & Managing Director
Source : Dion Global Solutions Limited
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