MANANGMENT DISCUSSION AND ANALYSIS The objective of this report is to share and keep you abreast with the happenings and transformations occurring within the Company, that in the industry and economy, its technology and its overall business strategies. Among other things, the MD & A provides an overview of the brvious year of operations and how the company fared in that time. It also provides the report on the upcoming year, outlining future goals and approaches to new Project. We begin with a general review of the industry, macro economy followed by the operational and financial details of the company including details of its human resources. CAUTIONARY STATEMENT Statements in the Management Discussion and Analysis describing the Company's objectives, projections, estimate expectations may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those exbrssed or implied. Important factors that could influence the Company's operations include economic developments within the country, demand and supply conditions in the industry, input prices, changes in Government regulations, tax laws and other factors such as litigation and industrial relations. Indian Economy Overview Introduction India is set to emerge as the world's fastest-growing major economy by 2015 ahead of China, as per the recent report by The World Bank. India's Gross Domestic Product (GDP) is expected to grow at 7.5 per cent in 2015, as per the report. The improvement in India's economic fundamentals has accelerated in the year 2015 with the combined impact of strong government reforms, RBI's inflation focus supported by benign global commodity prices. Market size According IMF World Economic Outlook April, 2015, India ranks seventh globally in terms of GDP at current prices and is expected to grow at 7.5 per cent in 2016. India's economy has witnessed a significant economic growth in the recent past, growing by 7.3 per cent in 2015 as against 6.9 per cent in 2014. The size of the Indian economy is estimated to be at Rs 129.57 trillion (US$ 2.01 trillion) for the year 2014 compared to Rs 118.23 trillion (US$ 1.84 trillion) in 2013. The steps taken by the government in recent times have shown positive results as India's gross domestic product (GDP) at factor cost at constant (2011-12) prices 2014-15 is Rs 106.4 trillion (US$ 1.596 trillion), as against Rs 99.21 trillion (US$ 1.488 trillion) in 2013-14, registering a growth rate of 7.3 per cent. The economic activities which witnessed significant growth were 'financing, insurance, real estate and business services' at 11.5 per cent and 'trade, hotels, transport, communication services' at 10.7 per cent. Stating that its great time to invest in India, Minister of State for Finance Mr Jayant Sinha said the Indian economy has potential to become a US$ 4-5 trillion economy in the next 10-12 years. Investments/developments With the improvement in the economic scenario, there have been various investments leading to increased M&A activity. Some of them are as follows: India has emerged as one of the strongest performers with respect to deals across the world in terms of mergers and acquisitions (M&A). M&A activity increased in 2014 with deals worth US$ 38.1 billion being concluded, compared to US$ 28.2 billion in 2013 and US$ 35.4 billion in 2012. The total transaction value for the month of May 2015 was US$ 3.3 billion involving a total of 115 transactions. In the M&A space, pharma continues to be the dominant sector amounting to 23 per cent of the total transaction value. • India's Index of Industrial Production (IIP) grew by 4.1 per cent in April 2015 compared to 2.5 per cent in March 2015. The growth was largely due to the boost in manufacturing growth, which was 5.1 per cent in April compared to 2.8 per cent in the brvious month. • India's Consumer Price Index (CPI) inflation rate increased to 5.01 per cent in May 2015 compared to 4.87 per cent in the brvious month. On the other hand, the Wholesale Price Index (WPI) inflation rate remained negative at 2.36 per cent for the seventh consecutive month in May 2015 as against negative 2.65 per cent in the brvious month, led by low crude oil prices. • India's consumer confidence continues to remain highest globally for the fourth quarter in a row, riding on positive economic environment and lower inflation. According to Nielsen's findings, India's consumer confidence score in the first quarter of 2015 increased by one point from the brvious quarter (Q4 of 2014). With a score of 130 in the first quarter (2015), India's consumer confidence score is up by nine points from the corresponding period of the brvious year (Q1 of 2014) when it stood at 121. • India's current account deficit reduced sharply to US$ 1.3 billion (0.2 per cent of GDP) in the fourth quarter of 2015 compared to US$ 8.3 billion (1.6 per cent of GDP) in the brvious quarter, indicating a shrink in the current account deficit by 84.3 per cent quarter-on-quarter basis. • India's foreign exchange reserve stood at a record high of US$ 354.28 billion in the week up to June 12, 2015 -indicating an increase of US$ 1.57 billion compared to brvious week. • Owing to increased investor confidence, net Foreign Direct Investment (FDI) inflows touched a record high of US$ 34.9 billion in 2015 compared to US$ 21.6 billion in the brvious fiscal year, according to a Nomura report. The report indicated that the net FDI inflows reached to 1.7 per cent of the GDP in 2015 from 1.1 per cent in the brvious fiscal year. Government Initiatives Numerous foreign companies are setting up their facilities in India on account of various government initiatives like Make in India and Digital India. Mr Narendra Modi, Prime Minister of India, has launched the Make in India initiative with an aim to boost the manufacturing sector of Indian economy. This initiative is expected to increase the purchasing power of an average Indian consumer, which would further boost demand, and hence spur development, in addition to benefiting investors. Besides, the Government has also come up with Digital India initiative, which focuses on three core components: creation of digital infrastructure, delivering services digitally and to increase the digital literacy. Currently, the manufacturing sector in India contributes over 15 per cent of the GDP. The Government of India, under the Make in India initiative, is trying to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP. Following the government's initiatives several plans for investment have been undertaken which are as follows: Foxconn Technology group, Taiwan's electronics manufacturer, is planning to manufacture Apple iPhones in India. Besides, Foxconn aims to establish 10-12 facilities in India including data centers and factories by 2020. • India Electronics and Semiconductor Association (IESA) and Nasscom have signed a MoU to push electronics manufacturing share to 25 per cent of GDP by 2025. Under the MoU approval has been given to 21 electronic clusters. • Hyderabad is set to become the mobile phone manufacturing hub in India and is expected to create 150,000 - 200,000 jobs. Besides, the Telangana Government aims to double IT exports to Rs 1.2 trillion (US$ 18.7 billion) by 2019. • Ford Motor Company has started working on plans to manufacture EcoSport in India for exporting it to US. The company has provided the quotation for 90,000 units every year, which is greater than the vehicles it sells in India. • Hyundai Heavy Industries (HHI) and Hindustan Shipyard Ltd have joined hands to build warships in India. Besides, Samsung Heavy Industries and Kochi Shipyard will be making Liquefied Natural Gas (LNG) tankers. • Mercedes-Benz plans to increase the number of cars it manufactures in India by doubling the capacity to 20,000 vehicles a year and has come up with a new plant in Pune. Under the Digital India initiative numerous steps have been taken by the Government of India. Some of them are as follows: • The Government of India has launched a digital employment exchange which will allow the industrial enterprises to find suitable workers and the job-seekers to find employment. The core purpose of the initiative is to strengthen the communication between the stakeholders and to improve the efficiencies in service delivery in the MSME ministry. According to officials at the MSME ministry over 200,000 people have so far registered on the website. • The Ministry of Human Resource Development recently launched Kendriya Vidyalaya Sangthan's (KVS) e-initiative 'KV ShaalaDarpan' aimed at providing information about students electronically on a single platform. The program is a step towards realising Digital India and will depict good governance. • The Government of India announced that all the major tourist spots like Sarnath, Bodhgaya and Taj Mahal will have a Wi-Fi facility as part of digital India initiative. Besides, the Government has started providing free Wi-Fi service at Varanasi ghats. Based on the recommendations of the Foreign Investment Promotion Board (FIPB), the Government of India has approved 10 proposals of FDI amounting to Rs 2,857.83 crore (US$ 445.21 million) approximately. Out of the 10 approved proposals, six belonged to the pharmaceutical sector with a total value of Rs 1,415 crore (US$ 221.05 million) excluding the outflows. The Union Cabinet, chaired by the Prime Minister Mr Narendra Modi, has given its approval to enter into a Memorandum of Understanding (MoU) for strengthening cooperation in the field of Micro, Small and Medium Enterprises (MSMEs), between India and Sweden. The purpose of the MoU is to achieve and promote cooperation between MSMEs of the two countries by providing a structured framework and creating an environment to identify each other's technologies, strengths, markets, policies, etc. The Government of India has launched an initiative to create 100 smart cities as well as Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for 500 cities with an outlay of Rs 48,000 crore (US$ 7.47 billion) and Rs 50,000 crore (US$ 7.78 billion) crore respectively. Smart cities are satellite towns of larger cities which will consist of modern infrastructure and will be digitally connected. The program was formally launched on June 25, 2015. The Phase I for Smart City Kochi (SCK) is set to launch in July 2015 which will be built on a total area of 650,000 sq. ft., having a floor space greater than 100,000 sq. ft. Besides, it will also generate a total of 6,000 direct jobs in the IT sector. Road Ahead The International Monetary Fund (IMF) and the Moody's Investors Service have forecasted that India will witness a GDP growth rate of 7.5 per cent in 2016, due to improved investor confidence, lower food prices and better policy reforms. Besides, according to mid-year update of United Nations World Economic Situation and Prospects, India is expected to grow at 7.6 per cent in 2015 and at 7.7 per cent in 2016. As per the latest Global Economic Prospects (GEP) report by World Bank, India is leading The World Bank's growth chart for major economies. The Bank believes India to become the fastest growing major economy by 2015, growing at 7.5 per cent. According to Mr Jayant Sinha, Minister of State for Finance, Indian economy would continue to grow at 7 to 9 per cent and would double in size to US$ 4-5 trillion in a decade, becoming the third largest economy in absolute terms. Furthermore, initiatives like Make in India and Digital India will play a vital role in the driving the Indian economy. Infrastructure sector in India Introduction A key driver of the economy, Infrastructure is highly responsible for propelling India's overall development. The industry enjoys intense focus from the top officials of the Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. This sector includes power, bridges, dams, roads and urban infrastructure development. Market Size The Indian power sector has an investment potential of US$ 250 billion in the next 4-5 years, providing immense opportunities in power generation, distribution, transmission and equipment, according to Mr Piyush Goyal, Union minister of coal, power and renewable energy. The total approximate earnings of Indian Railways on originating basis during April 1, 2014 to December 31, 2014 were Rs 114,656.13 crore (US$ 18.42 billion) compared to Rs 101,856.45 crore (US$ 16.37 billion) during the same period last year, registering an increase of 12.57 per cent. The total approximate earnings from goods during 1st April 2014 - 31st December 2014 were Rs 77,161.55 crore (US$ 12.4 billion) compared to Rs 68,776.35 crore (US$ 11.05 billion) during the same period last year, registering an increase of 12.19 per cent. Meanwhile, the number of export and import containers moving through major ports in India expanded 7.34 percent year-over-year from April to October 2014, as a result of the Modi Government's efforts to make port development a major priority. Foreign direct investment (FDI) received in construction development sector from April 2000 to January 2015 stood at US$ 24,028.19 million, according to the Department of Industrial Policy and Promotion (DIPP). Recent Developments India is witnessing significant interest from international investors in the infrastructure space. Many Spanish companies are keen on collaborating with India on infrastructure, high speed trains, renewable energy and developing smart cities • The government has unveiled plans to invest US$ 137 billion in its decrepit rail network over the next five years, heralding Prime Minister Narendra Modi's aggressive approach to building infrastructure needed to unlock faster economic growth. Over the next year, India will increase investment by about a half to US$ 16.15 billion including funds raised by market borrowing. • Indostar Capital Finance Ltd and Reliance Capital Ltd have invested Rs 200 crore (US$ 32.15 million) in Alliance group, a real estate company. The consortium of institutions has invested in the holding company of Alliance group, Alliance Infrastructure Projects Pvt. Ltd. • Andhra Pradesh-based regional airline Air Costa will add eight aircrafts before 2016 to its existing four aircrafts. The airline, which reported an operating profit in the month of December, 2014 for the first time, said that it will be a pan-India player by the end of 2015 • Union government-owned Kolkata Port Trust has signed an agreement with the West Bengal government to set up a new port at Sagar Island in South 24 Parganas district through a joint venture (JV) between the two. The Sagar Island port is estimated to cost Rs 11,900 crore (US$ 1.91 billion) and will be the first port to be built by the Union government in 14 years. • Larsen and Toubro Ltd (L&T) has announced that its building and factories business under L&T Construction has secured orders worth Rs 2,521 crore (US$ 405.27 million) in December 2014. In a statement, the firm said that these orders were from both the domestic and international markets. • Private equity funds and non-banking financial companies have found a niche within Gurgaon. Over the past 15 months, New Gurgaon, which is an area between Manesar and old Gurgaon, has seen investments in real estate projects by several private equity funds. Singapore sovereign wealth fund GIC recently put in Rs 150 crore (US$ 24.11 million) in a joint venture with realty firm Vatika group to develop two projects in this area of Gurgaon. Government Initiatives The Indian Government is taking every possible initiative to boost the infrastructure sector. Some of the steps taken in the recent past are being discussed hereafter. The Reserve Bank of India (RBI) has notified 100 per cent foreign direct investment (FDI) under automatic route in the construction development sector. The new limit is effective 2 December 2014, RBI said in a notification on its website. Recently, the Government has relaxed rules for FDI in the construction sector by reducing minimum built-up area as well as capital requirement and liberalised the exit norms. The Cabinet has also approved the proposal to amend the FDI policy. India and the US have signed a memorandum of understanding (MoU) in order to establish Infrastructure Collaboration Platform. The document showcases the relationship between both the Governments which intend to facilitate US industry participation in Indian infrastructure projects to improve the bilateral commercial relationship and benefit both the Participants' economies. The MoU's scope envisages efforts in the areas of Urban Development, Commerce and Industry, Railways, Road Transport and Highways, Micro Small and Medium Enterprises, Power, New & Renewable Energy, Information and Broadcasting, Communications & Information Technology, Water Resources, River Development and Ganga Rejuvenation. Road Ahead Indian port sector is poised to mark great progress in the years to come. It is forecasted that by the end of 2017 port traffic will amount to 943.06 MT for India's major ports and 815.20 MT for its minor ports. Along with that, Indian aviation market is expected to become the third largest across the globe by 2020, according to industry estimates. The sector is projected to handle 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion. Indian Aviation Industry that currently accounts for 1.5 per cent of the gross domestic product (GDP) has been instrumental in the overall economic development of the country. Given the huge gap between potential and current air travel penetration in India, the prospects and possibilities of growth of Indian aviation market are enormous. Feature of Construction and Infrastructure The construction/infrastructure sector is likely to get major boost from the Government's focus on development of infrastructure in India. While the recovery in the sector is likely, it would be gradual as majority of players are still burdened with leveraged balance sheets and stalled or slow moving projects. Furthermore, if structural constraints like uncertainty in land acquisition,delays in approvals, and inadequacy of long term funding avenues are not tackled swiftly, the project implementation on the ground may not gather momentum, thereby delaying recovery in the infrastructure sector. In addition, aggressive bidding in the past and inability or limited ability to raise equity for BOT projects have also impacted viability of infrastructure projects. These impediments need to be overcome for project implementation to gather pace. Difficulty in achieving financial closure and overall weak macro-economic environment had also reduced the risk appetite of developers towards new projects. These factors, amongst others, have resulted in relatively modest growth in Gross Fixed Capital Formation (GFCF) and Construction GVA (Gross Value Added) in 9mFY15. With the political stability, sharper focus on infrastructure development and improvement in economy, new projects announcements by both the public and private sector are likely to pickup in FY16. Movement in Stalled Projects The quantum of stalled projects continued to remain high during FY15 though the pace of new project stalling came down and revival of stalled projects increased in H2FY15. In January 2013, Project Monitoring Group (PMG) was set up in the Cabinet Secretariat to help such projects, both in the public and private sectors, by way of support in clearing the implementation bottlenecks. Till March 2015, PMG had accepted 511 projects with estimated investments of Rs. 25.4 trillion which were facing implementation hurdles. With the help of Cabinet Committee on Investment (CCI) issues related to 204 such projects worth Rs. 7 trillion have been resolved as per PMG data. However, another 307 projects with an investment of Rs. 18.4 trillion are still facing various bottlenecks which is impacting their progress. Apart from reviving stalled projects, plans to award major projects after acquiring land and requisite approvals under the plug and play model will significantly reduce execution delays and also attract higher private sector participation. Steps taken towards easing funding issues in Infrastructure sector Many steps have been taken to improve funding avenues to the infrastructure sector. The key policy measures include easing of FDI norms for Construction, Railways, and Defence, liberalization of ECB policy, and providing incentives to promote REITs and InvITs. RBI has also taken multiple steps to ease funding availability to infrastructure project. Some of the key ones include providing incentives to banks in the form of exemption from CRR/SLR for long term bonds raised to lend to infrastructure sector, flexibility in refinancing norms for infrastructure projects by way of 5/25 structure etc. Besides, the Union Budget has also allocated higher funds towards public sector infrastructure projects. Provisions for Infrastructure sector in Budget 2015-16 In the Budget 2015-16, the capital outlays for roads, and railways have been increased by Rs. 140.3 billion and Rs. 100.5 billion respectively which along with significantly higher Road Cess will enable higher public spending towards these infrastructure projects. In total, investment in infrastructure is proposed to increase by Rs. 700 billion in FY16 (BE) over FY15 (RE). Recognizing the need of reviving private sector participation in infrastructure projects, Budget has proposed rebalancing of risks in PPP projects with Government taking up major risks, appointing an Expert Committee for analysing the possibility of and replacing multiple prior permissions with a br-existing regulatory mechanism, and rationalizing dispute resolution mechanism. The budget also proposes to set-up 5 UMPPs totalling 20 GW in the plug-and-play mode wherein all clearances and linkages will be obtained before the award of project. It has also announced its intent towards some large infrastructure projects like building 100 smart cities and Sardar Patel Urban Housing Mission, which will provide long term infrastructure opportunities. In the railways sector, the focus is on faster execution of Dedicated Freight Corridor (DFC) which is an important on-going project. Performance of Construction Companies The growth in operating income of construction companies (ICRA sample of 15 exchange-listed construction companies) during this period had remained muted which implies that execution is yet to pick up in a meaningful manner. This can be partly attributed to stretched financial position of many construction companies which has constrained resources for speeding up execution. In terms of profitability however, there has been gradual improvement observed in 9m-FY15, led by subsiding cost brssures particularly on subcontracting, raw-material and labor related costs. While the sustainability of improvement in operating profitability remains to be seen, without ramp-up in the scale of operations, the operating profits will not be sufficient to cover the interest expenses for most of the construction companies as has been the case in the last six quarters. The interest coverage ratio for sample of 15 companies had improved marginally to 0.62 times in Q3FY15 from 0.42 times in Q2FY15. The reversal in the interest rate cycle and lowering of interest rates will help ease the debt servicing burden; however, this alone will not be sufficient for improving credit metrics. Any significant improvement in liquidity profile and credit metrics of construction companies will take time and will be contingent on improvement in working capital cycle (by way of faster execution and release of stuck receivables/retention money), improvement in pace of execution and ability to raise long term funds by way of stake sale or equity placements. Some large players have raised and many are planning to raise funds via Qualified Institutional Placement (QIP)/Rights Issue/warrants/brference shares or sale of stake in subsidiaries. Outlook The recovery in the construction sector is expected to be gradual and would be linked with on-ground impact of the policy measures as well as availability of funding. With high leverage, ability to raise funds via stake sale in subsidiaries, monetization of assets, or dilution of equity will be key in improving liquidity and capital structure of construction companies that have been aggressive in the BOT space in past. Many companies including GMR Infrastructure, Jaiprakash Associates, NCC Ltd, IVRCL etc. have either raised or have plans of raising funds through equity route like Qualified Institutional Placement (QIP)/Rights issue/Warrants/Preference shares or sale of stake at the SPV or holding company level to reduce overall indebtedness at the Group level. The likely reversal in the interest rates cycle would also provide some respite. Focus Area: Infrastructure Investment Trusts In order to improve funding options, alternate funding sources like Infrastructure Debt Funds (IDFs), Alternate Investment Funds (AIFs) were introduced in the past to tap into other source of savings like Insurance and Pension Funds so as to accelerate and enhance the flow of long term funds. In this regard, the recent initiative in the form of Infrastructure Investment Trusts (InvITs) may help in channelising long term funds into the sector and in releasing developers' capital for further deployment in new projects. Moreover, InvITs could play a pivotal role in providing wider long-term refinance avenue thereby providing headroom for banks for new funding requirements. InvIT is proposed on the same lines as Real estate Investment Trust (REIT) and are dedicated towards infrastructure sector. However, in comparison to REIT, the capital apbrciation aspect is limited in the case of InvITs as majority of the infrastructure assets have a finite life and low residual value at the end of the project life (except the accumulated cash). Unlike REITs where the investors also benefit from capital apbrciation, the NAV of an InvIT is expected to decline gradually over the concession period of the underlying asset unless there is significant increase in revenues like toll collections in case of a toll road project. Due to this, the annual yield offered by an InvIT includes partial return of capital deployed by investors into InvIT. The marketability of InvITs will depend on the effective yield (adjusted for NAV) which can be offered. InvITs will face competition from REITs and other fixed-income products as well as high dividend-yield stocks. Investors in InvITs will benefit in the form of better liquidity by virtue of being publicly traded, while Sponsors will have better scalability (fund raising through follow-on offers) and access to capital markets. The challenge now is to make InvITs a more attractive option for parking operating infrastructure assets. This in turn will increase the ability of developers to undertake more infrastructure project development. The success of InvITs also depends on tax regime. As majority of the infrastructure projects are developed on PPP (Public Private Partnership) framework, they can only be indirectly held by InvIT through stake in the SPV holding the project. However, as taxation for SPVs are not pass-through and SPVs have to pay corporate and dividend distribution taxes, the efficiency of distribution of profits is constrained. Some respite in case of infrastructure projects can be the ten year tax-holiday which could result in savings during this period. Furthermore, some efficiency can be brought in by leveraging the SPV by way of InvIT infusing funds in SPV in the form of debt. The path for establishing REIT/InvITs has not been easy in other Asian countries also as it takes time to gain market acceptance. For an investor, InvIT provides opportunity to own a different asset class, though adjusted returns would be the key criterion for inflow of money towards InvITs. The success of InvIT in Indian context will also depend on alternatives available for sponsors as well as valuations and taxation aspects. Our Company's Business overview We are an Infrastructure company which provides EPC (Engineering, Procurement and Construction) services for Infrastructure Projects in India since 1998. We have the brsence on PAN India basis and have a strong brsence in Northern, Eastern and North-Eastern parts of India such as Delhi-NCR, Haryana, Punjab, Rajasthan, Uttar Pradesh, West Bengal, Bihar, Assam, Arunachal Pradesh and Mizoram etc. We are executing Infrastructure projects independently and in Joint Ventures. Over the years, we have built a strong organization base on PAN India basis and have executed and are executing praiseworthy projects in the different states and for different clients. Roads, Bridges, Tunnels, Buildings, other Misc works etc for our various clients such as: 1. Indian Institute of Technology, Guwahati 2. IRCON International Limited 3. West Bengal Housing Infrastructure Development Corporation Limited (WBHIDCO) 4. Public Works Department (PWD) [Assam, Haryana, Punjab] 5. Airports Authority of India 6. Reliance Infrastructure Ltd 7. Punjab Infrastructure Development Board (PIDB) 8. Municipal Corporation of Delhi (MCD) 9. HSCC (India) Ltd 10. Water Resource Department, Bihar etc Working overview during the year During the period under review company face tough days due to economic slowdown and and some other unavoidable reasons like (constant increase of finance cost, labour cost, Decline of margins etc.). Due to constantly increase of finance Cost Company unable to pay its timely installments and interest to the bank. Due to that company face the situation of CDR. under CDR there is a post restructuring of company debt. As compare to last financial year company's turnover is slightly increase but company loss before tax is increased due to inflation and constantly increase of company cost. Threats risks and concerns With the stable Central government in place and infrastructure sector high on its agenda, the Indian construction industry is poised for growth in medium to long term. To achieve the targeted economic growth, the government has to spend on the capacity building and infrastructure improvements which will provide huge growth potential for construction industry. India's investment in infrastructure is estimated to double to about USD 1 trillion during the 12th plan ( 10 % of GDP during 12th plan ) compared to the brvious plan. Indian government has also planned to build 100 smart cities. The government has allocated USD 1.2 billion for this project in its 2014-15 budget. This plan would need more PPP's for better and fast execution. To minimize the risks your company has taken few initiatives like diversified & integrated business model , strong balance sheet , large fleet of owned machineries along with strong management and organization skills. Outlook The year gone by has once again reinforced the strength of management to steer the company through troubled waters. In financial year 2014-15 there was growth on all operational and financial parameters. The company has potential and will outperform in the coming years with improvement in the economy and macro-economic fators. With strong and stable government at the centre, the business outlook of construction industry has changed in a positive direction. The company is expected good cash inflow of fresh orders in the financial year 2015-16. Challenges in the sector have thrown immense opportunities to experienced players like BIL. The adaptability to meet the challenges and encash the opportunities available through a well balanced business plan support by strong balance sheet along with increased spending in infrastructure segment in India will help your company to reap the benefit of the opportunities by evaluation various options for venturing into other infrastructure activities and maximize shareholder's value. Internal Control Systems and their Adequacy The Company has a proper and adequate system of internal controls to ensure that all its assets are safeguarded and protected against loss from un-authorized use or disposition and to ensure that all transactions are duly authorized, recorded and reported correctly and adequately. The Company's internal controls are supplemented by an extensive programme of internal audits, review by management and documented policies, guidelines and procedures. The internal control is designed to ensure that financial and other records are reliable for brparing financial information and for maintain accountability of assets. All financial and audit control systems are also reviewed by the Audit Committee of the Board of Directors of the company. Human Resource / Industrial relations Human capital has continued to be the key engine for our growth and aspirations. The Company has been constantly reviewing its HR policies and practices to keep abreast with the market changes and has embarked upon several initiatives to focus on creating a positive work environment that provides employees with ample growth and development opportunities as well as ensuring high levels of motivation and engagement. Industrial relations have continued to be cordial throughout the year. Measures for safety of employee, scientific training, welfare, performance based appraisal system, compensation, career growth and social security schemes continued to remain key priority of the Company. Financial performance and results The Financial statements have been brpared in compliance with the requirements of the Companies Act and the Accounting Standards issued by the Institute of Chartered Accountants of India. 1 Turnover: The Company recorded turnover and other income of Rs. 27788.50 Lacs during the year 2014-15 as against Rs. 25792.93 Lacs in brvious year. 2 Finance costs: Finance costs for the year amounted to Rs. 4452.79 Lacs as against the brvious year of Rs. 4470.76 Lacs. 3 Debrciation: The current year debrciation amounted to Rs. 1655.49 Lacs as against Rs. 2447.90 Lacs of brvious year. 4 Profit: a) Profit before Debrciation and Taxation amounted to Rs. (737.41) Lacs as against the brvious year of Rs. (362.70) Lacs. b) Provision for taxation & deferred tax for the year amounting to Rs. (664.60) Lacs as against the brvious year of Rs. (742.87) Lacs. C) Profit after tax for the year amounted to Rs. (2497.65) Lacs as against the brvious year of Rs. (2067.74) Lacs. 5 Fixed Assets: During the year the fixed assets of the company Rs to Rs.8128.09 Lacs as compare brvious year Rs.9824.68 Lacs 6 Inventories: Inventories amounted to Rs. 31781.94 Lacs as against Rs. 31477.03 Lacs of brvious year. 7 Trade Receivables: Trade receivables amounted to Rs. 9784.56 Lacs as against Rs. 13129.27 Lacs of brvious year. 8 Long term Loans and Advances: Long term Loans and advances rebrsent Rs. 3980.82 Lacs as against Rs. 4817.23 Lacs in brvious year. |