SHRINIWAS POWER AND INFRASTRUCTURE LIMITED
(FORMERLY KNOWN AS CONCURRENT (INDIA) INFRASTRUCTURE LIMITED)
ANNUAL REPORT 2011-2012
The Members of
SHRINIWAS POWER & INFRASTRUCTURE LIMITED
(Formerly known as Concurrent (India) Infrastructure Limited),
Your Directors take pleasure in presenting the 18th Annual Report together
with Audited accounts for the financial year ended 31st March 2012. The
report covers all major events till the date of report.
Financial Results: (Rs. In Lakhs)
Particulars Year Ended Year Ended
Income 1992.52 14344.48
Profit before Depreciation and Interest 259.37 1609.66
Depreciation 2.51 4.40
Interest 223.04 54.10
Profit after Depreciation and Interest 33.82 1551.15
Provision for tax 8.38 -
Profit after tax 25.44 1551.15
Balance Brought Forward 2083.72 532.57
Balance carried to Balance Sheet 2109.16 2083.72
During the year Company has achieved a total income of Rs. 1992.52 Lakhs as
compared to Rs. 14344.48 Lakhs in the previous year and thereby registered
a decrease of 86.11% over the previous year. The Company has posted a PBT
of Rs. 33.82 Lakhs as compared to Rs. 1551.15 Lakhs in the previous year.
Your Directors have decided to plough back the profits and therefore no
Dividend is declared.
CHANGE IN CAPITAL:
The authorised capital of the company is increased from Rs. 45,16,00,000/-
(Rupees Forty Five Crores Sixteen Lakhs only) divided into 4,51,60,000
(Four Crore Fifty One Lakhs Sixty Thousand Only) equity shares of Rs. 10/-
(Rupees Ten each) to Rs. 75,00,00,000/-(Rupees Seventy Five Crores only)
divided into 7,50,00,000 (Seven Crore Fifty Lakhs Only) equity shares of
Rs. 10/- (Rupees Ten each) as on date. The paid up share capital as on the
date of this report stood at Rs. 430,599,990/- (Rupees Forty Three Crores
Five Lakhs Ninety Nine Thousand Nine Ninety Only)
CHANGE IN NAME:
The name of the Company is changed from Concurrent (India) Infrastructure
Ltd to Shriniwas Power & Infrastructure limited w.e.f. 13th April, 2012.
During the year, new independent directors were appointed. Mr. Abhijit
Bhattacharya was appointed as Additional Director on 31st December, 2012.
Mr. Sanjay Dighe, Mr. Sambhaji Jadhav, Mr. Abhijit Deshpande, were
appointed as Additional Directors on 6th February, 2012. Mr. Sudhir Babu
Koneru resigned as a Managing Director w.e.f. 18th Feb., 2012. However, he
continues as a non-Executive director of the Company. Mr. K Poornachandra
Rao resigned from the post of Chairman and Director w.e.f. 17th Feb., 2012.
Mr. Manoj Bhimaji Kokane was appointed as Managing Director of the Company
w.e.f. 18th Feb., 2012.
Your company has not accepted any deposits within the meaning of Section
58A of the Companies Act, 1956.
Vakratund Ispat Pvt. Ltd. is 100% subsidiary of your company. Your company
has set up Concurrent Composites (India) Private Limited as 100% subsidiary
during the financial year by subscribing to 10000 equity shares of that
Company. The financial results of the subsidiaries are consolidated with
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to provisions of Section 217(2AA) of the Companies Act, 1956, the
directors confirm that:-
(i) In the preparation of the accounts for the financial year ended 31st
March 2012 the applicable accounting standards have been followed, along
with proper explanation relating to all material departures;
(ii) They have, in the selection of the accounting policies, consulted the
statutory auditors and have applied them consistently and 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 at the end of financial year
and of the profit of the Company for that period under review.
(iii) They have taken proper and sufficient care to the best of their
knowledge and ability 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
(iv) The Directors have prepared the accounts for the financial year ended
31st March, 2012 on a going concern.
M/s B R R & Associates, Chartered Accountants will retire at the conclusion
of the ensuing Annual General Meeting and are eligible for reappointment.
The retiring auditors have expressed their willingness to continue as
Statutory Auditors of the Company.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION:
Your Company's operation does not involve large scale use of energy. The
disclosure of particulars under this head is not applicable as your Company
operates in the Service Sector. Although your Company is not a large scale
energy user, acknowledges, the concept of conventional energy.
A separate report on Corporate Governance has been annexed as part of this
Directors' report. (Annexure 2)
MANAGEMENT DISCUSSION AND ANALYSIS:
A detailed review on operational highlights and achievements, vision and
strategy for the future notes and outlook for the industry segment in which
we operate, are given separately under the head 'Management Discussion and
Analysis' elsewhere as part of this Directors' report (Annexure 1).
MANAGEMENT'S REPLY TO AUDITOR'S QUALIFICATIONS:
1. Mr. Sudhir Babu Koneru, Managing Director of the company is also
director in Concurrent Infrastructure Pvt. Ltd. (CIPL), which was merged in
Concurrent India Infrastructure Ltd. (CIIL) (now known as Shriniwas Power &
Infrastructure Limited). The application for condonation of delay in filing
the order of merger of CIPL with CIIL is made with the Central Government.
The director is pursuing the matter with the Central Government in right
2. The company is taking steps to regularize the payments of overdue
interest and installments due to banks.
PARTICULARS OF EMPLOYEE:
During the year under review, no employee of the Company was in receipt of
remuneration exceeding the sum prescribed under section 217(2A) of the
Companies Act 1956, read with the Companies (particulars of employees)
During the year, the Company has not entered into any Foreign Currency
LISTING OF SHARES:
Equity shares of your company are listed on Bombay Stock Exchange and the
company has paid necessary listing fees for the year 2012-13.
Your directors take this opportunity to express their gratitude to the
investors, banks and financial institutions, customers, suppliers and
employees of the company for their valuable and continued support.
REGISTERED OFFICE BY ORDER OF THE BOARD OF DIRECTORS
Shop No. 8, Nilkamal Co-operative
Plot No. 17, Sector 5,
Ghansoli, Navi Mumbai 400701 K. Sudhir Babu Manoj Bhimaji Kokane
DATED: 14th August, 2012 Director Managing Director
MANAGEMENT DISCUSSION AND ANALYSIS: (Annexure 1)
Your Directors are pleased to present the Management Discussion and
Analysis Report for the year ended 31st March 2012.
DISCUSSION ON OPERATIONS OF THE COMPANY:
Revenue from operations decreased by 86.11% in the year 2011-12. The
Revenue for the year 2011-12 stands at Rs. 1992.52 Lakhs while for the year
2010-11 revenue from operation was Rs. 14344.48 Lakhs.
EBITDA dropped by 83.89% in the year 2011-12. The EBIDTA for the year
stands at Rs 259.37 lakhs whereas in the year 2010-11 it was Rs. 1609.6
PAT dropped substantially by 98.36% in the year 2011-12. The Net Profit
after tax for the year stands at Rs. 25.44 Lakhs whereas in the year 2009-
10. Net Profit was Rs. 1551.15 Lakhs.
Particulars Year 2011-12 Year 2010-11
No. of shares (in lakhs) 430.59 430.59
EPS - Rs. 0.06 3.60
EPS Growth (%) (98.36)% 249.51%
Book value in Rs. per share 16.16 16.11
P/BV 0.21 0.69
EBIDTA (as a % of revenue) 13.02% 11.22%
PBT (as a % of revenue) 1.70% 10.81%
PAT (as a % of revenue) 1.28% 10.81%
Debt-Equity Ratio 0.34% 0.32%
Current Ratio 10.90 2.88
Net Worth (Rs. in Lakhs) 6960.51 6935.07
The Net Worth of the company stands at Rs. 6960.51 lakhs in the year 2011-
12 as compared to Rs. 6935.07 lakhs in the year 2010-11. The Debt to Equity
ratio of the company is 0.34:1.
The Company has shown a steep fall in Earnings Per Share. The EPS for the
year 2011-12 stands at Rs. 0.06.
GLOBAL ECONOMIC OVERVIEW:
The world economy continues to face challenges on the road to sustained
recovery. Advanced Economies that seemed to be shaping well at the start of
2011 lost steam towards the fag-end of the year and this uncertainty is
clouding the prospects for global growth during 2012. The growth momentum
was impacted as the protracted debt crisis in the euro area and fiscal
fragilities dampened business and consumer confidence.
The economic crisis and its ramifications have accelerated the shift of
economic power from the developed to the emerging nations and exposed a
fragile world with limited capacity to respond to systemic risks. The
consequence has been volatile and low growth which is likely to stay for
some time to come.
Near term, the growth prospects for 2012-2013 remain uncertain, with growth
petering out in the euro area and moderating in the emerging markets, while
a better-than expected recovery is shaping up in the US. The baseline
scenario suggests that global growth may continue to be low in 2012, with a
recession in the euro area as the region makes the much needed fiscal
adjustment. In addition, there is the risk of large potential spillovers to
the region from Europe.
The year 2011-2012 was abetted by the continuing global volatility and
challenges. These uncertainties led to widespread risk aversion and
adversely affected capital flows to new projects. The competition for
limited opportunities, led to socio-political tensions, increasing
protectionism, reassessment of regulation and more importantly, heightened
competition for scarce natural resources.
INDIAN ECONOMIC OVERVIEW:
After a rebound in growth in 2010-2011, the Indian economy slowed down to
6.5% in fiscal 2011-2012. This was the lowest annual growth in the last 9
years and was sub-par in comparison to not just the pre-crisis years up to
2008 but also compared to immediate post crisis period. With increasing
global integration, the Indian economy was impacted by global
uncertainties, while at the same time faced significant domestic challenges
of persistent and high inflation, tight monetary conditions, low investment
and delays in policy making. The slowdown in 2011-12 was seen in all the
major sectors of the economy as compared with the previous year. The
Services sector grew by 8.9%, Industry by 3.4% and Agriculture by 2.8% as
compared with 9.3%, 7.2% and 7% respectively in 2010-2011. Industrial
growth remained subdued due to supply-side bottlenecks, particularly in the
mining sector, and moderation in investment demand. The most dismal picture
has been presented by capital goods segment which has been in a negative
territory during the fiscal. Significantly, slowdown was witnessed in
capacity addition as defined by capital formation which decelerated to 5.5%
in 2011-2012 as against 7.5% achieved in 2010-2011.
Despite the prevailing economic uncertainties, the year 2012-2013 holds
prospects of gradual build-up in the growth momentum of the Indian economy.
Infrastructure development assumes prominence in the Government's budget
proposals for the year 2012-2013. In the long-term, India continues to
offer considerable opportunities aided by its favourable demographic
profile. Its large consumer market has attracted global companies, many of
whom have made India their manufacturing hub. However, in order to harness
this potential and achieve sustainable growth, the country needs to push
forward critical reforms and build innovative public-private partnerships
to deliver rapid and inclusive growth as also provide an enabling
environment for upgrading infrastructure.
POWER & INFRASTRUCTURE:
The 11th Plan laid emphasis on development of physical infrastructure
including transport to support the accelerated growth of the country's
economy. The thrust in the sector has been on augmenting capacity through
technology upgradation and modernisation. In this regard, improving
accessibility to remote and rural areas and enhancing mobility through
various programmes with enlarged participation of private sector have been
the objectives of the 11th Plan.
Roads carry about 65 per cent of the freight and 80 per cent of the
passenger traffic. While national highways/expressways constitute only
about 66,590 kms (2 per cent of all roads), they carry 40 per cent of the
road traffic. This signifies the huge potential for highways development in
the country. The number of vehicles has been growing at an average pace of
10.16 per cent per annum over the last five years. For the purpose of
management and administration, roads in India are divided into the
1. National Highways (NH) which are intended to facilitate medium and long
distance intercity/state passenger and freight traffic across the country.
2. State Highways (SH) which carry traffic along major centers within the
3. Major District Roads (MDR) having the secondary function of linkage
between main roads and rural roads.
4. Other district roads and village roads which provide accessibility to
villages to meet their social needs, as also the means to transport
agricultural produce from villages to nearby markets.
Some of the key initiatives taken by the Government in the private sector
are as follows:
1. The Government of India would carry out initial preparatory work
including land acquisition and utility removal. Rights of way to be made
available to concessionaires free from all encumbrances.
2. NHAI/The Government of India may provide capital grant up to 40%
(maximum) of project cost to enhance viability on a case to case basis.
3. 100% tax exemption for any consecutive 10 out of 20 years from the
Commercial Operation Date.
4. Concession period allowed for up to 30 years.
5. Duty free import of specified modern high capacity equipment for highway
6. The Government of India has approved 100% Foreign Direct Investments for
road and highway construction through the automatic route.
7. In BOT projects concession holder s are allowed to collect and retain
8. Planning Commission, NHAI and Ministry of Road Transport and Highways
have introduced the model concession agreement to mitigate the traffic
risks of toll based projects -pursuant to which the concession period will
be extended or reduced based on actual traffic.
Infrastructure covers design, engineering and construction of projects in
Roads and Runways, Elevated Corridors, Metros, Tunnels, Ports, Special
Bridges, Hydro Power, Nuclear Power, Defence and Railway infrastructure
Given the huge gap between infrastructure demand and supply in a growing
economy like India, all business relating to urban infrastructure, power,
roads and water would witness attractive growth over a sustained period.
The Union Budget 2012-2013 also lays greater emphasis on infrastructure
development. The realisation of order prospects in infrastructure, power,
defence and railways sectors, however, largely depend upon the government's
ability to implement the policy decision and finance large scale projects.
DISCUSSIONS ON OPERATION OF THE COMPANY:
To exploit the various opportunities in Power sector, the Company has taken
a long-term strategic view to focus on execution of projects under
development. The company has been executing EPC contracts for Power
Transmission and Distribution Projects in domestic markets.
The Company is focusing on contracts, sub-contracts and collaborations for
road development and BOT projects during 2012-13.
The company is clearly focusing in capitalising the current market trend.
With the specific and continuous thrust on business development, the
company is looking at new opportunities across various business segments in
The business of the Company is focusing on harnessing domestic prospects.
Margins would remain under pressure during 2012-2013 with inflationary
conditions and continuing competition from domestic players. Conditions of
tight iquidity and elevated interest rates are expected to prevail in 2012-
2013. The working capital levels unless managed well are likely to trend
Competition is expected to intensify in the domestic infrastructure and
construction sectors, post the revival of growth trajectory of the economy.
We expect competition to intensify due to possible new entrants (both
national and international players) in various segments including
construction (which includes EPC), existing competitors further expanding
Increasing prices of commodities/raw materials:
Inflationary conditions have erupted in the economy due to supply side
constraints. This would have a snowballing effect on the raw materials and
input prices , which may imp act the profitability of net margins in the
near to medium term.
Dependence on Government policies:
The growth of the infrastructure industry in India and our infrastructure
development business is dependent on the establishment of stable Government
policies and prudent regulation. Infrastructure development in India has
historically been the preserve of the Central and St ate Governments, and
has been constrained by various factors such as shortages of public
funding, political considerations and issues of transparency and
accountability. More recently, policy changes in the transportation,
energy, urban infrastructure and industrial and commercial infrastructure
sectors have begun to attract significant private sector interest. Changes
in Government policy and support for the infrastructure sector will affect
our growth prospects and operational results.
Decrease in margins on account of bidding for large projects:
Infrastructure project developments on a public private partnership basis
in India involve pre-qualifying interested companies based on their
technical and financial strengths. The nature of the Government of India's
process is such that the relevant experience in the infrastructure sector
plays an important role in allowing companies to bid for new projects.
Further, the ability to strategically partner with other players will also
determine our success in being awarded projects for which we bid. Our
project management capability will also affect our financial condition and
operations. Maintaining execution and operating costs at a competitive rate
is crucial to the profitability of our construction (which includes EPC),
property development and power (comprising power generation and power
Investment in our new projects:
We plan to make significant investments in a number of new projects over
the next several years, and we intend to bid for new projects. If the
development of these projects costs substantially less than what we have
budgeted, or if we are able to complete these projects ahead of schedule,
our financial condition and earnings could improve. Conversely, if we are
unable to complete these projects in accordance with our budgets and within
the scheduled time or, once completed, these projects do not operate
profitably, our financial condition and operational results could be
Delay in execution of Order Book:
It's an inherent risk factor, where sub-contracting works are procured by
the company, as the subcontracted works always need to be synchronized with
the main contracting party and their cash flows.
Delay in execution of overseas projects:
Execution of overseas projects is dependent on all local conditions like
physical, economical and environmental. Management view on risk factors:
Management of the company transparently presented the key risks associated
with the industry and the company in general. All companies in the industry
are working within the given framework. Your company is also confident to
perform well amidst the risk factors discussed in general over here.
INTERNAL CONTROL SYSTEMS:
The Company has strong Internal Control System which involves various
systems and procedures which are time tested and tried at both the
Operational as well as the Managerial Level.
This report contains forward-looking statements, which may be identified by
their use of words like 'plans', 'expects', 'will', 'anticipates',
'believes', 'intends', 'projects', 'estimates' or other words of similar
meaning. All statements that address expectations or projections about the
future, including but not limited to statements about the Company's
strategy for growth, product development, market position, expenditures and
financial results, are forward looking statements. Forward-looking
statements are based on certain assumptions and expectations of future
events. The Company cannot guarantee that these assumptions and
expectations are accurate or will be realized. The Company's actual
results, performance or achievements could thus differ materially from
those projected in any such forward-looking statements. The Company assumes
no responsibility to publicly amend, modify or revise any forward looking
statements, on the basis of any subsequent developments, information or