Tantia Constructions Limited Annual Report 2016-17 Corporate Information
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Tantia Constructions Limited Annual Report 2016-17 Corporate Information BOARD OF DIRECTORS REGISTRAR AND SHARE TRANSFER Mr. Ishwari Prasad Tantia AGENTS (RTA) Chairman & Managing Director Maheshwari Datamatics Private Limited 23, R.N. Mukherjee Road, 5th floor Kolkata - 700 001 Mr. Rahul Tantia Phone : +91 33 22435029/5809/2248 2248 Director (Operations) Fax: +91 33 2248 4787 Mr. Murare Lal Agarwala E-mail: [email protected] Director (Projects) PRINCIPAL BANKERS Mr. Tarun Chaturvedi Independent, Non-Executive Director State Bank of India Allahabad Bank Mrs. Madhuchhanda Chatterjee Andhra Bank Independent, Non-Executive Director Axis Bank Ltd Md. Sarim Arshad IDBI Bank Ltd Independent, Non-Executive Director Oriental Bank of Commerce Punjab National Bank Ms. Rohini Sureka Indian Overseas Bank Chief Financial Officer Phoenix ARC Private Limited COMPANY SECRETARY REGISTERED OFFICE Ms. Priti Todi 25-27, Netaji Subhas Road Kolkata - 700 001 ADVOCATES Phone : +91 33 2230 1896/6284 S. K. Baid & Co. Fax : +91 33 2230 7403 8, Old Post Office Street E-mail : [email protected] 2nd floor, Kolkata - 700 001 CORPORATE OFFICE STATUTORY AUDITORS DD- 30, Sector-1, Salt Lake City Kolkata - 700 064 Konar Mustaphi and Associates Phone : +91 33 4019 0000 Chartered Accountants Fax : +91 33 4019 0001 ICAI FRN-314125E E-mail: [email protected] P-113, CIT Road, Kolkata - 700 014 INTERNAL AUDITORS S. Guha & Associates Somnath Ray & Associates Contents Chairman’s statement .................................................01 Balance Sheet ...............................................................44 Directors’ Report..........................................................02 Statement of Profit and Loss .................................... 45 Management Discussion and Analysis ....................21 Cash Flow Statement .................................................46 Corporate Governance Report ................................ 24 Notes to Financial Statements .................................48 Independent Auditor’s Report .................................. 39 Consolidated Financial Statements .........................71 Chairman’s statement Overview would likely have an overall neutral impact (at 12%, Dear shareholders, The future-facing incumbent Government slight savings; at 18%, marginal increase). Cement Warm greetings! It is an launched some significant initiatives, including prices are expected to go up, with the GST Council honour to address you demonetizing high currency notes and announcing a 28% tax rate on it, which will have an on behalf of the Board implementing the Goods and Services Tax, that will adverse impact on the construction industry. of Directors in the 52nd have a positive impact on the economy. Facts and figures Annual Report of your Though the administration is focused on reviving/ The Company’s turnover (standalone) stood at Company. developing large-scale infrastructure as a means H28,505 lacs in 2016-17, as compared with H40,556 to boost economic growth, a key longstanding lacs in 2015-16. The increase in the net loss is mainly request of the construction industry has been to attributable to the lower turnover. To overcome the bring forth a substantive change to the dispute challenging business environment, the Company resolution mechanism seeking payment of has proactively undertaken steps to realization of awarded amounts on completion of an arbitration claims, cost optimization, monetization of assets and appealing against the same only in exceptional and carefully bidding for new jobs apart from circumstances rather than as a rule. Another key focusing on streamlining internal processes with request has been to ensure that full land is made an emphasis on leveraging the Company’s existing available before award of projects so that work core competencies. The Company’s order book proceeds speedily and disputes relating to idling was H2,295.33 cr as on 31 March 2017. are eliminated. Both these requests, if actioned, will bring about a qualitative change in the manner in which projects are executed and infrastructure is Way forward created in India, the benefits of which will be seen I am grateful to our entire stakeholder family – within the short to medium term. The ambitious colleagues, business partners, customers and all GDP growth and job creation targets set by the others for reposing their faith in us, employees for present Government will also then become a their resolve and unstinted devotion, Members on reality. the Board for their wisdom and continued support and you, our shareholders, for reposing trust and The GST-driven changes in the real estate sector faith in us. are inevitable. When it comes to GST's impact on the commercial real estate market - with the Best wishes, service tax for commercial leases at 15%, GST I.P. Tantia 02 Tantia Constructions Limited | Annual Report 2016-17 Directors’ Report Dear Members, Your Directors have pleasure in presenting the 52nd Annual Report together with the Audited Statement of Accounts of Tantia Constructions Limited (“the Company”) for the year ended 31st March, 2017. Financial Performance The summarized standalone results of your Company are given in the table below. (H in lakhs) PARTICULARS STANDALONE 2016-17 2015-16 Revenue from Operations (Net) and other income 27,866 41,060 Profit/(loss) before Interest, Depreciation & Tax (EBITDA) 2,891 5,089 Finance Charges 8,847 7,197 Depreciation 901 1,221 Profit Before Tax (PBT) (6,857) (3,329) Provision for Tax (135) (293) Profit After Tax (PAT) (6,722) (3,036) Balance brought forward from previous year - - Profit available for Appropriations - - Appropriations: Interim Equity Dividend - - Proposed Final Equity Dividend - - Tax on Equity Dividends - - Previous Year Tax on Equity Dividends - - General Reserve 1,415 1,415 Surplus carried to the next year’s account - - *Previous year figures have been regrouped/rearranged wherever necessary. DIVIDEND Pursuant to Corporate Debt Restructuring Scheme the Company Your Directors do not recommended any dividend for the year allotted 99,19,032 Equity Shares at a price H21.26/- per share ended 31st March, 2017. (inclusive of premium of H11.26/- per share) on 19th November, 2016 to the Promoters of the Company (i.e. Mr. Rahul Tantia and SUMMARY OF OPERATIONS M/s Nigolice Trading Private Limited). During the year, net revenue from operations of your Company decreased by 29.66% from H40,554 lakhs to H28,526 lakhs. For CHANGE IN NATURE OF BUSINESS, IF ANY FY2017, your Company’s loss after tax stood at H6,722 lakhs vis-à-vis During the year under review, the Company has not changed its loss after tax of H3,036 lakhs in the previous year. nature of business. Your Company continues to be under Corporate Debt Restructuring MATERIAL CHANGES AFFECTING THE FINANCIAL Scheme. POSITION OF THE COMPANY TRANSFER TO RESERVES There were no material changes and commitments affecting the financial position of the company between the end of the financial Since the Company is having losses, no amount is being transferred year (31st March, 2017) and the date of the report. to the reserve account. DEPOSITS SHARE CAPITAL The Company has not accepted any deposits from the public The paid-up Equity Share Capital as on 31st March, 2017 was during the Financial Year ended 31st March, 2017 as per Section 73 H28,74,20,980. Directors’ Report Management Discussion and Analysis Corporate Governance Report Financial Statements 03 of the Companies Act, 2013 read with Companies (Acceptance of capital cycles and restrained lending by banks and aggressive Deposits) Rules, 2014. bidding at low margins is expected to reverse with the government focused on creating transparent policies and innovative operational INDUSTRY SCENARIO models to drive sectoral growth. Infrastructure is the backbone of every country’s growth and prosperity and especially, for the logistics industry to flourish, DETAILS OF BOARD MEETINGS emphasis has to be on building world-class road networks, During the year, 4 (four) Board Meetings were convened and held, integrated rail corridors, modern airport cargo facilities and the details of which are given in the Corporate Governance Report. logistics parks. The infrastructure sector is one of the key drivers of The intervening gap between the Meetings was within the stipulated economic development in a developing country like India. In recent time period, as prescribed under the Companies Act, 2013. years, India has consistently increased investments in infrastructure by 10% to H3,96,135 crores (US$ 59.18 billion) over financial year COMMITTEES OF THE BOARD 2017 revised estimates. Audit Committee However, basic infrastructure development is still relatively The composition and terms of reference of the Audit Committee slower compared to other countries. Rapid growth of the Indian has been furnished in the Corporate Governance Report forming economy in recent years has placed increasing stress on physical part of this Annual Report. There has been no instance where infrastructure, i.e. electricity, railways, roads, ports, irrigation, water the Board has not accepted the recommendations of the Audit supply and sanitation, all of which already suffer from deficit in Committee. terms of capacities as well as efficiencies. The infrastructure sector is mainly affected due to delays in project award, environmental Nomination and Remuneration Committee clearance hurdles, land acquisition issues, slower execution, lack of The composition and terms of reference of the Nomination and cheaper