Annual Report 2015-2016

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Annual Report 2015-2016 27th Annual Report 2015-2016 ShapingShaping thethe Nation’sNation’s Growth!Growth! SADBHAV ENGINEERING LIMITED There’s never been a better time to Faster | Stronger | Smarter CONTENTS 01 About us 04 Corporate Information 06 Chairman’s Message 09 Notice 18 Directors’ Report 39 Report on Corporate Governance 49 Management Discussion & Analysis 52 Independent Auditor’s Report 56 Financial Statements 84 Consolidated Financial Statements Salient Features of Financial Statements of 131 Subsidiary/Associates/Joint Ventures 135 Attendance Slip & Proxy form Financial Highlights SADBHAV ENGINEERING LIMITED Annual Report 2015-2016 “ Commitment is what transforms a promise into reality.” - Abraham Lincoln Sadbhav Engineering Limited (SEL) is committed to commence a new era in the Indian Infrastructure industry with its landmark infrastructure projects enhancing the quality of life for people across the country. SEL’s pledge to perform better and for the betterment of the nation is reflected in all its endeavours. Strongly adhering to the ‘Make in India’ oath, the company is taking a proactive approach towards quality upgradation, business diversification and environment protection. Synonymous with ethical business practices, SEL has earned a repute of one of the most trusted companies in the industry. With its strong, determined and multi-disciplinary teams capable of dealing with any challenge, SEL always achieves the desired results. The Objective : Being FASTER to foster growth. Adhering to the values of integrity, stability & quality and focusing on the strategic expansion and diversification plans, SEL is determined to accelerate its development. Increasing client satisfaction & timely completion of projects is one of the main objectives of SEL. The Vision : Remain STRONGER to strengthen commitments. SEL envisions a prominent position in the industry by its exemplary performance and state of the art quality work. It is pledged to achieve perfection in every endeavour to win complete customer satisfaction. With its harmoniously integrated in-house execution capabilities, the company is poised to take off to new heights. The Mission : Work SMARTER to strategize success. SEL is dedicated to provide world-class services through full utilization of advanced technology and groundbreaking innovations to its customers. With an unwavering commitment towards safety and environment, the company is aimed to achieve all its objectives through fairness and courtesy to the clients, employees, vendors, investors and society. 01 “ Sadbhav stands like a strong pillar in the arena of infrastructural sector; only to soar up with a vision of global presence. ” Sadbhav is a construction company ROADS AND HIGHWAYS: with a diversified and well-established Concreting the Nation! entity. We have a large accumulation of diverse projects in the Roads and We have sustained a strong Highways segment, Bridges, Rail institutional presence over the years “ Today Sadbhav has successfully Metro projects, Irrigation supporting across all the three sectors. Therefore, constructed more than 7300 Lane infrastructure, and the Mining sector. our major ongoing EPC projects in Kms. of Roads and Highways (both Sadbhav saw a net profit CAGR Roads and Highways are six lane EPE National and State Highways) while growth of ~ 25% between 2006-2016. in Haryana; four laning of Rohtak - The Company has done work for/ Hissar section, Malavalli - Pavagada Lane Kms. are under various 2300 with clients of high reputation such section, Ambala - Kaithal section (NH- stages of construction.” as NHAI, Sardar Sarovar Narmada 65), and Yamunanagar-Saha Barwala- Nigam, Coal India, GIPCL, GHCL, L&T, Panchkula section of Haryana. HCC, Punj Lloyd, etc. To progress with Four laning of Rampur-Kathgodam CAGR 2006-2016 latest technology and cutting edge- Section of NH-87 in Uttar Pradesh innovation we have strong in-house and Uttarakhand NHDP Phase-3 on (Compounding Annual Growth Return) integrated execution capabilities. Our Hybrid Annuity Mode are some of our Net Revenue ~ 27% state-of the-art equipment facility for new projects under SIPL. Also, adding Net Profit ~ 25% Bitumen and Concrete road further resources for concrete/rigid pavement Order Book ~ 19% shapes our strict adherence to safety road constructions along with Bitumen standards. Our gross block was construction has majorly reflected in ₹ 103.8 crores in 2006. A continuously our order book status of this sector. strengthened development of Exhibiting faith in the protection of The Sadbhav team totals to technology with prudence, Sadbhav environment, Sadbhav Engineering guides itself through a unified and Limited emphasis on optimum more than trained and 3869 systematic approach. This resulted in plantations in and around the area dedicated professionals, which our gross block to be ₹ 938.7 crores in used for various constructions. includes engineers and workers. 2016. Since its incorporation, Sadbhav has remained very focussed in its strategy with executing projects in 3 segments primarily. Sadbhav through its subsidiary, Sadbhav Infrastructure Project Limited has cemented its position in roads and highways BOT segment. The derivative of our pan India growth with an aspiration towards a best engineering company is the result of efficient teamwork to create the building blocks of success. IRRIGATION SADBHAV ENGINEERING LIMITED Annual Report 2015-2016 MINING: IRRIGATION: canals has led us to bag important Unearthing the success! Channelising a greener Growth! projects. We are in the ongoing process of developing Bhauti high level Our treasure lies in the burrows of Every step taken by us, at Sadbhav canal along with Omkareshwar right Earth. Thus, our Mining sector deals Engineering Limited, is in the best bank lift canal in Madhya Pradesh. We with excavation of overburden and interest of the nation’s growth. have two projects in Andhra Pradesh, mining of minerals such as coal, We believe that the support from namely, HNSS main canal in Anantapur uranium, lignite, etc. Excavation work market conditions as well as concrete district and Gouravelly right side canal. at Mangrol lignite mines, Gujarat gave requirements, will aid us in executing With an aim to increase our scope way to another project of excavation our excellent long term plans. Hence, to work in all over our state of at Pit B of Jalipa Lignite Mines in we have largely involved ourselves Gujarat, we are constructing Barmer, Rajasthan in 2016. We now in the Irrigation sector. Construction the Radhanpur sub branch have removal of over burden at Bharat of earthen dams, canals, syphon, canal and Kutch branch Coking Coal, Dhanabad along with remodelling and improvement of canal in Adipur. overburden and extraction of Uranium Ore in Banduhurang min, Jharkhand and excavation of OB in Amlohri OCP, Madhya Pradesh in our pockets. Hence, the land gives us an opportunity to display our full potential by being true to our core value. ROADS & BRIDGES MINING 03 Corporate Information BOARD OF DIRECTORS Stakeholders Relationship COMPANY SECRETARY 1. Shri Vishnubhai M. Patel Committee Shri Tushar D. Shah Chairman & Managing Director Shri Mirat N. Bhadlawala (w.e.f. 28-3-2016) Chairman 2. Shri Shashin V. Patel STATUTORY AUDITORS Joint Managing Director Shri Sandip V. Patel Surana Maloo & Co. 3. Shri Vasistha C. Patel Member Executive Director Shri Nitin R. Patel WORKSHOP 4. Shri Vikram R. Patel Member Village Ognaj, Tal. Daskroi, Executive Director Shri Vasistha C. Patel Dist. Ahmedabad. Member 5. Shri Nitin R. Patel REGISTERED OFFICE Executive Director & CFO Finance and Investment Committee Sadbhav House, 6. Shri Vipul H. Patel Opp. Law Garden Police Chowki, Executive Director Shri Vishnubhai M. Patel Ellisbridge, Ahmedabad - 380006. (w.e.f. 20-8-2016) Chairman Website : www.sadbhaveng.com 7. Shri Sandip V. Patel Shri Shashin V. Patel CORPORATE OFFICE Independent Director Member “Sadbhav”, Nr. Havmor Restaurant, 8. Shri Atul N. Ruparel Shri Nitin R. Patel B/H. Navrangpura Bus Stand, Independent Director Member Navrangpura, Ahmedabad - 380009. 9. Shri Arun S. Patel Shri Vasistha C. Patel Independent Director Member MUMBAI OFFICE 10. Shri Sandip A. Sheth Shri Atul N. Ruparel 702, “C” Wing, Godrej Coliseum, Independent Director Member Nr. Lokmanya, Behind Everard Nagar, Sion (East) Mumbai - 400 022. 11. Shri Mirat N. Bhadlawala Corporate Social Independent Director Responsibility Committee Corporate Identity Number (CIN): L45400GJ1988PLC011322 12. Smt. Purvi S. Parikh Shri Vishnubhai M. Patel Independent Director Chairman REGISTRAR & TRANSFER AGENTS BOARD COMMITTEES Shri Vasistha C. Patel Link Intime India Pvt. Ltd. Member C-13, Pannalal Silk Mills Compound, Audit Committee Shri Mirat N. Bhadlawala L.B.S. Marg, Bhandup (West), Shri Sandip V. Patel Member Mumbai - 400078. Chairman Shri Sandip A. Sheth Shri Nitin R. Patel Member Member Shri Atul N. Ruparel BANKERS Member Oriental Bank of Commerce Shri Arun S. Patel The Karur Vysya Bank Limited Member ICICI Bank Limited Nomination and IDBI Bank Ltd. Remuneration Committee Yes Bank Ltd. Shri Atul N. Ruparel Chairman Standard Chartered Bank Shri Sandip V. Patel Punjab National Bank Member State Bank of India Shri Arun S. Patel Axis Bank Member Bank of India Shri Sandip A. Sheth Member 4 9 8 6 3 10 7 1 2 5 11 12 SADBHAV ENGINEERING LIMITED Annual Report 2015-2016 BOARD OF DIRECTORS Strong Leadership Leadership is about shared values and vision to high sights which results in raising performances to a higher standard. It is exemplified by uncovering
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