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Tantia Constructions Limited 1 Corporate Information BOARD OF DIRECTORS ADVOCATES PRINCIPAL BANKERS S. K. Baid & Co. State Bank of India Mr. Ishwari Prasad Tantia 8, Old Post Office Street Allahabad Bank Chairman & Managing Director 2nd floor, Kolkata - 700 001 Andhra Bank Axis Bank Ltd Mr. Rahul Tantia STATUTORY AUDITORS IDBI Bank Ltd Director (Operations) Konar Mustaphi and Associates Oriental Bank of Commerce Chartered Accountants Punjab National Bank Mr. Murare Lal Agarwala ICAI FRN-314125E Indian Overseas Bank Director (Projects) P-113, CIT Road, Phoenix Arc Private Limited Kolkata - 700 014 Mr. Ananda Mohan Maity REGISTERED & CORPORATE OFFICE Independent, Non-Executive Director INTERNAL AUDITORS Somnath Ray & Associates DD- 30, Sector-1, Salt Lake City Kolkata - 700 Mrs. Ishita Mookherjee 064 Independent, Non-Executive Director REGISTRAR AND SHARE TRANSFER Phone : +91 33 4019 0000 AGENTS (RTA) Maheshwari Datamatics Fax : +91 33 4019 0001 Md. Sarim Arshad Private Limited E-mail: [email protected] Independent, Non-Executive Director 23, R.N. Mukherjee Road, 5th floor Kolkata - 700 001 CHIEF FINANCIAL OFFICER Phone : +913322435029/5809/ Ms. Rohini Sureka 2248- 2248 Fax: +91 33 2248 4787 COMPANY SECRETARY E-mail: [email protected] Ms. Priti Todi Content Chairmans Stateemnt 02 Balance Sheet 44 Directors Report 03 Statement of Profit and Loss 45 Management and Discussion and Analysis 25 Cash Flow Statements 46 Corporate Governance Report 27 Notes to Financial Statements 48 Independent Auditors Report 39 Consolidated Finanacial Statements 82 Tantia Constructions Limited 2 CHAIRMAN’ S STATEMENT Dear Fellow Shareholders, My warm greetings to all of you…. It is a great honour for me to address all of you on behalf of the Board of Directors Facts and figures the 53rd Annual Report of your Company. The extent of the disastrous effect of the The Company’s turnover (standalone) stood at Rs.24, 060 lacs in 2017-18, as policies of the prior Government is now becoming apparent. It is clear now that it compared with Rs. 32,317 lacs in 2016-17. The increase in the net loss is mainly will take longer for the economy to return to good health than was earlier expected. attributable to the lower turnover. To overcome the challenging business Yet the new Government has done well to start the process of laying a solid environment, the Company has proactively undertaken steps to realization of foundation for economic growth. claims, cost optimization, monetization of assets and carefully bidding for new jobs A key request of the construction industry for a long time has been a substantive apart from focusing on streamlining internal processes with an emphasis on change to the dispute resolution mechanism seeking payment of awarded amounts leveraging the Company’s existing core competencies. The Company’s order book on completion of an arbitration and appealing against the same only in exceptional was Rs. 1796.68 crores as on 31 March 2018. circumstances rather than as a rule. Another key request has been to ensure that all land is made available before award of projects so that works proceed speedily and disputes relating to idling are eliminated. Both these requests, if actioned, will bring Way Forward about a tangible, qualitative change in the manner in which projects are executed Lastly, I am grateful to our entire stakeholders’ family –company colleagues, and infrastructure is created in India, the benefits of which will be seen within the business partners, customers and all others for reposing their faith in us, employees short to medium term. The ambitious GDP growth and job creation targets set by for their resolve and unstinted devotion, our Members on the Board for their the present Government will then be a reality. The economies globally are facing wisdom and continuous support and you, our shareholders for reposing trust & their own challenges characterized by rapidly changing geo-political environment faith in us. Thank you for your support for over last 53 years and we hope you and volatility in currency. continue your association with us forever. Best wishes I.P Tantia Tantia Constructions Limited 3 DIRECTORS’ REPORT Dear Members, Your Directors have pleasure in presenting the 53rd Annual Report together with the Audited Statement of Accounts of Tantia Constructions Limited (“the Company”) for the year ended 31st March, 2018. Financial Performance The summarized standalone results of your Company are given in the table below. (Rs. in Lakhs) PARTICULARS STANDALONE 2017-2018 2016-2017 Revenue from Operations(Net) and other income 24,060 32,318 Profit/(loss) before Interest, Depreciation & Tax (EBITDA) 2,773 4,764 Finance Charges 6,248 8,847 Depreciation 672 901 Profit Before Tax (PBT) (3,658) (4,462) Provision for Tax (3,589) (605) Profit After Tax (PAT) (69) (5,067) Balance brought forward from previous year - - Profit available for Appropriations - 43 Appropriations: (69) (5024) Interim Equity Dividend - - Proposed Final Equity Dividend Tax on Equity Dividends - - Previous Year Tax on Equity Dividends - - General Reserve - - Surplus carried to the next year’s account - - *Previous year figures have been regrouped/rearranged wherever necessary. DIVIDEND slower growth estimated at 6.6% in 2017-18. Even with this lower growth for 2017- Your Directors do not recommended any dividend for the year ended 31st March, 18, GDP growth averaged 7.3% for the period 2014-15 to 2017-18. The year under 2018. review was marked by structural reforms by the Government. In addition to GST introduction, the year witnessed significant resolution of problems associated with SUMMARY OF OPERATIONS bank nonperforming assets, FDI liberalization, bank recapitalization and During the year, net revenue from operations of your Company decreased by privatization of coal mines. However, we are observing signs of recovery as the 28.01%, from Rs 28,548 Lacs to Rs. 20,551 Lacs. For FY 2017-2018, your Company’s triple effects of demonetization, RERA and GST have begun to shape up the sector loss after tax stood at Rs. 69 Lacs vis-à-vis loss after tax of Rs. 5,024 Lacs in the with new standards of delivery, accountability and transparency. previous year. Infrastructure as a sector is also crucial for employment generation. Infrastructure spending was 7% of GDP during 2008-12, which fell to 5.8% of GDP during 2013-17 TRANSFER TO RESERVES (as estimated by Niti Aayog). Decline in infrastructure spending can be attributed to Since the Company is having losses, no amount is being transferred to the reserve high cost of capital, high level of stressed assets leading to slowdown in funding account. from financial institutions, land acquisition issues and slowdown in the economy. SHARE CAPITAL OUTLOOK The Authorized Share Capital of your Company as on 31st March, 2018 stands at Rs. Sustained increase in infrastructure is expected to be one of the crucial factors for 40,00,00,000/-divided into 390,00,000 Equity Shares of Rs. 10/- each and 10,00,000 sustaining strong growth during the current decade. Significant investment in 10.5% Cumulative Redeemable Preference Shares of Rs. 10/- each.. The paid-up physical infrastructure will also lead to employment generation, increased Equity Share Capital as on 31st March, 2018 of your Company is Rs. 28,74,20,980/- production efficiency, reduction in cost of doing business and improved standard of divided into 28742098 Equity Shares of Rs. 10/- each, fully paid up. living. Construction industry expects to employ 80 million workers by the year 2020. BAI, CHANGE IN NATURE OF BUSINESS, IF ANY in association with the government as well as private bodies, has taken up training During the year under review, the Company has not changed its nature of business. of construction workers. For the construction industry, Construction Skill Development Council of India (CSDCI) is formed , and Builders’ Association of MATERIAL CHANGES AFFECTING THE FINANCIAL POSITION OF THE India is one of the promoters The outlook for the construction sector is very positive COMPANY with the government ready to mobilize $1 trillion investment plan over the next five There were no material changes and commitments affecting the financial position of years. the company between the end of the financial year (31st March, 2018) and the date DETAILS OF BOARD MEETINGS of the report. Your Company’s Board is duly constituted and is in compliance with the requirements of the Companies Act, 2013, the Listing Regulations and provisions of DEPOSITS the Articles of Association of the Company. Your Board has been constituted with Your Company has not accepted any deposits covered under ‘Chapter V - requisite diversity, wisdom and experience commensurate to the scale of operations Acceptance of Deposits by Companies’ under the Companies Act, 2013 during the of your Company. financial year ended March 31, 2018. Details of Board composition and Board Meetings held during the financial year 2017-18 have been provided in the Corporate Governance Report which forms part INDUSTRY SCENARIO of this Annual Report. Infrastructure development has been fuelling India’s economic growth over the past During the year under review, Mr. I .P. Tantia (DIN: 00057004), Chairman & decade or so. Increasing population, rapid industrialization and urbanization, rising Managing Director of the Company, who retired at the 53rd AGM, was re- middle-class income, and the rise of nuclear families are driving the demand for appointed as a Director of the Company. The Board has appointed Mr. Ananda consistent investment in infrastructure development. Further, India is not only Mohan Maity (DIN: 08176162) and Mrs. Ishita Mookherjee (DIN: 08176161) as an among the world’s fastest growing major economies, but also one of the few Additional Director(s) of the Company with effect from 5th June, 2018 to hold office economies enacting major structural reforms. After registering GDP growth of over upto the date of the forthcoming AGM.