The Members,
The Directors have pleasure in presenting the 17th Annual Report on
the business and operations of the Company together with the audited
results for the financial year ended 31st March, 2011.
FINANCIAL RESULTS:
(Rs. in Lacs)
Particulars Year ended Year ended
31st March 2011 31st March 2010
Standalone Consolidated Standalone Consolidated
Gross Turnover 8830.87 8645.55 8410.52 7153.09
Profit before interest
and Depreciation 1707.31 1511.75 2019.79 1432.94
Depreciation 432.02 437.04 410.31 454.66
Profit before Tax 466.07 264.88 307.66 (323.55)
Provision for taxation 451.75 451.75 104.44 104.48
Profit after tax 14.31 (193.99) 203.22 (428.03)
Transfer to General
Reserve – – – –
Dividend – – – –
EPS
Basic 0.02 (0.28) 0.51 (1.07)
Diluted 0.02 (0.28) 0.29 (0.60)
Despite several odds viz. recession, political unrest, tight borrowing
norms and general slowdown in the economy and especially in the real
estate sector, your company could report a gross turnover of Rs.
8830.87 lacs as against Rs. 8410.52 lacs for the previous year.
In the challenging environment, your Company continued its focus on
consolidation, stable growth and risk management. Despite tight
liquidity conditions during the second- half of last fiscal, your
Company met all its stakeholder commitments in time during the year,
including its commitments towards lending institutions.
For a detailed analysis of the performance of the company for the year
under review, please refer Management''s Discussion and Analysis section
of the Annual Report.
DIVIDEND
Your company currently has many projects under implementation. In order
to fund these projects in their development, expansion and
implementation stages, conservation of funds is of vital importance.
Therefore, your directors have not recommended any dividend for the
financial year 2010-11.
DEPOSITS
During the year under review, the company has passed a resolution at
the board meeting held on 15.10.2010 and released an advertisement on
20.10.2010 under the provisions of Sec. 58A of the Companies Act, 1956
and as per the Companies (Acceptance of Deposits) Rules, 1975 inviting
deposits from shareholders, employees and general public and collected
about 56.53 lacs till 31st March. As on 31st March, 2011 no amounts
were due for repayment and interest is being served regularly as per
the terms of the deposit scheme.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Sri K. Ravi Kumar, Sri N.
Ravinder Reddy and Sri Sumit Sen, Directors retire by rotation at the
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment and therefore the board recommends their re-appointment
at the ensuing Annual General Meeting.
Details of directors appointed / re-appointed are furnished in the
Corporate Governance section.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confirm that:
(i) in the preparation of Annual Accounts for the financial year ended
31st March, 2011, the applicable accounting standards have been
followed and there has been no material departure;
(ii) the selected accounting policies were applied consistently and the
directors 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 as at 31st March, 2011 and of the profit of the Company on that
date;
(iii) proper and sufficient care has been taken 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;
PARTICULARS OF SUBSIDIARY COMPANIES - SEC. 212 OF THE COMPANIES ACT,
1956
Pursuant to the provisions of Sec. 212 of the Companies Act, 1956,
documents in respect of subsidiaries viz. Balance Sheet, Profit and
Loss Account, Directors'' Report and Auditors'' Report are required to be
attached to the balance Sheet of the holding company.
In the context of globalization of Indian economy and increased number
of subsidiaries and the introduction of accounting standards on
consolidated financial statements, Ministry of Corporate Affairs has
vide its circular no.2/2011 dated 8th February, 2011 granted general
exemption to holding companies from the provisions of Sec. 212 of the
Companies Act, 1956 subject to fulfillment of certain conditions
mentioned therein.
The Annual Accounts of the subsidiaries and related detailed
information will be made available free of cost to any member of the
Company/ its subsidiaries seeking such information at any point of time
and are also available for inspection by any member of the Company/ its
subsidiaries at the head office of the holding company and of the
subsidiary companies concerned.
The financial data of the subsidiaries has been furnished along with
the Statement pursuant to Sec. 212(1)(e) of the Companies Act, 1956
forming part of Annual Report.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the Accounting Standard AS-21 on consolidated
financial statements, the audited consolidated financial statements are
attached to this Annual Report.
AUDITORS
The Statutory Auditor Mr. S.V. Rangan, Chartered Accountant holds
office until the conclusion of the ensuing Annual General Meeting and
being eligible, is recommended for re-appointment. A certificate from
the Auditor has been received to the effect that the re-appointment, if
made, would be within the limits as specified under Sec. 224(1B) of the
Companies Act, 1956.
REPORT ON CORPORATE GOVERNANCE
Your company continuously works to improve its governing practices and
processes and always strives to ensure that best practices are
identified, adopted and followed. A detailed report on Corporate
Governance practices followed by your Company, in terms of Clause 49
(VI) of the Listing Agreement with Stock Exchange is separately
provided in this Annual Report. The compliance certificate issued by
Sri P. Konda Reddy, Practicing Company Secretary in line with clause 49
of the Listing Agreement is also provided elsewhere and forms part of
this Report.
MANAGEMENT DISCUSSION & ANALYSIS REPORT:
Pursuant to clause 49 of the Listing Agreement, a report on Management
Discussion and Analysis (MDA) for the year under review is given in a
separate section in this Annual Report.
CEO''s DECLARATION AS REQUIRED UNDER CLAUSE 49 OF THE LISTING AGREEMENT:
Declaration as required under Clause 49(1)(D)(ii) of the Listing
Agreement with regard to compliance of Code of Conduct of the company
is annexed to this Report.
PARTICULARS OF EMPLOYEES:
The information required under Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975 as
amended, are provided in annexure forming pat of this report.
EMPLOYEE RELATIONS
Employee relations were cordial during the year and the Board would
like to place on record its appreciation to all the employees of the
Company for their continued support and services.
CLARIFICATIONS TO THE OBSERVATIONS MADE IN AUDITORS'' REPORT:
Point No.4 (a) and (b):
a. As a result of economic slowdown and recession in realty sector the
realizations from customers are slow.
b. Due to long term involvement in such projects, no provision has
been considered necessary.
Point no. vii of Annexure to Auditors Report:
The Audit Committee had elaborate discussions on the said point. The
company will take all steps to see that the scope and coverage of
internal audit is increased to commensurate with the nature and size of
the business of the company.
Point No. 3(c) of Auditors'' Report on Consolidated Balance sheet:
Interest on debentures is not provided for the detailed explanation
given for C.15 of Schedule 18 of Consolidated Financial Statement.
DISCLOSURE OF PARTICULARS:
Information as per the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules,1988, relating to conservation of
energy, technology absorption, foreign exchange earnings and outgo are
furnished below:
Conservation of Energy & Technology Absorption:
Since your company does not own any manufacturing facility, the
requirements pertaining to disclosure of particulars relating to
conservation of energy, research & development and technology
absorption , as prescribed under the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988, are
not applicable. However, adequate measures have been taken to conserve
and reduce energy consumption.
Foreign Exchange Earnings and Outgo:
Foreign Exchange Earnings: Rs. 6.29 lacs
Foreign Exchange Outgo: Rs. 345.96 lacs
ACKNOWLEDGEMENTS
Yours directors take this opportunity to thank the financial
Institutions, Banks, Central and State Governments, regulatory
authorities, stock exchanges and the stakeholders for their continued
co-operation and support to the company.
Your Directors also wish to record their appreciation for the continued
co-operation and support received from the customers, vendors, joint
venture partners / associates.
For and on behalf of the Board
Place : Hyderabad D.S.Chandra Mohan Reddy
Date : 30.08.2011 Chairman & Managing Director
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