PART I - PERFORMANCE / OPERATIONS:
The Directors hereby present the Annual Report of the Company, together with the audited Financial Statements, for the year ended March 31, 2022.
FINANCIAL RESULTS
As there is no revenue generation this year there are no financial results FUTURE OUTLOOK
With the increase in number of vehicles a billions globally, today the Parking Industry needs efficient and smarter parking operations. According to new analysis, the world wide parking industry is expected to attract $200- $250 million of strategic investment over next 3-5 years.
INFRASTRUCTURE DEVELOPMENT DIVISION (ESTATES & BUILDINGS)
INFRASTRUCTURE DEVELOPMENT DIVISION (ESTATES & BUILDINGS) of your company is targeting to development & setting up of Infrastructure projects in the segments of Industrial Estates, Commercial Complexes, Housing Complexes, Sports Infrastructure, Arts Infra Structure, Agricultural Infrastructure and others.
The Infrastructure Development and Construction Industry in India is the second largest after agriculture. It accounts for about 11 % of India as GDP and contributes to the national economy also by providing employment to large number of people. Growth drivers are consequently in general the estimated urban housing shortage of 18.8 Million dwelling units and in the rural India the shortage is estimated at 47.4 Million units in 2012. Concerning the Infrastructure In India, the present level is inadequate to meet the demand of the existing urban population. Therefore a re-generation of urban areas in existing cities and the creation of new, inclusive smart cities are needed due to an increasing population and migration from rural to urban areas. Those future cities require smart real estate and urban infrastructure, Further also the Government pushes the growth by launching a new urban development mission to help develop 500 cities, which include cities with more than 100,000 and some cities of religious and tourist importance. The mission includes the support of use of private capital and expertise through Public Private Partnerships (PPPs), to holster their infrastructure and services in the next 10 years.
The Construction Industry in India is expected to grow at 5.6% during 2016-20, compared to 2.9% during2011-15, The activities that registered the highest growth include export cargo (10%), highway construction/widening (9.8%), power generation (6.6%), impart cargo (5.8%) and cargo at major parts(5.350),
India will be required to spend $ 454.8 by on infrastructure development over the period of five years (2015-20), with 70% of funds needed for power, roads and urban Infrastructure segments Expected cement capacity addition of 80-100 MT per annum over next five years.
India will become the world's third largest Construction Market by 2025 and thereby the Infrastructure Sector is a key driver for the Indian Economy. Especially the road sector profits from the Government's efforts and initiated policies to ensure time-bound creation of world class infrastructure in the country.
The Indian Engineering sector has witnessed a remarkable growth over the last few years driven by increased investments in infrastructure and industrial production, The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of strategic importance to India's economy.
India on its quest to become a global superpower has made significant strides towards the
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development of its engineering sector, The Government of India has appointed the Engineering Export Promotion Council (EEPC)as the apex body in charge of promotion of engineering goads, products and services from India. India exports transport equipment, capital goods, other machinery/equipment and light engineering products such as castings, forgings and fasteners to various countries of the world, The Indian semiconductor industry offers high growth potential areas as the industries which source semiconductors as inputs are themselves witnessing high demand,
India became a permanent member of the Washington Accord (WA) in June 2014. The country is now a part of an exclusive group of 17 countries who are permanent signatories of the WA, an elite international agreement on engineering studies and mobility of engineers.
NOTES ON SUBSIDIARY COMPANIES
Your company has no subsidiary companies as of now; however, your company is proposing to acquire the controlling equity in UBE Automotive Limited, UBE Projects Limited, UBE Tools Limited, UBE Weldproducts Limited, Rishab Alchem India Limited and Richweld Electrodes Limited. On acquiring controlling equity in the above companies, present business of all the divisions will be transferred to respective companies through the process of de-merger of each division from your company according to their present operations at an appropriate time.
After the re-structuring and having the subsidiaries, your company will be a holding company to these companies and also few other companies proposed to be taken over and be a marketing company to all its subsidiaries, other associated companies. Further. Your company is in the process of finalizing with international companies and Indian companies where in the excellent products to be brought to India.
DIVIDEND
Considering the long-term interest of the Members and as a matter of prudence it is proposed to plough back profits to build up own resources, your directors, therefore, have not recommended payment of cash dividend for the period ended 31 March 2022.
CORPORATE SOCIAL RESPONSIBILITY
Your Company continues to accord high priority in contribution to socio economic development particularly in the areas of rural health, education etc among the villages in the vicinity of the plant.
INSURANCE
All properties and insurable intere: t of the company have been adequately insured, as required under Public Liability Insurances Act, 1991, your company has taken necessary insurance coverage.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
A) CONSERVATION OF ENERGY
As the operations of the company have not geared up fully, therefore, Conservation of Energy is not applicable.
B) TECHNOLOGY ABSORPTION
As the operations of the company have started in a minute form, therefore, Technology Absorption is not applicable, however, your company is exploring to seek the Technology from Reputed Manufacturers, Consultants, Design and R & D firms from world over.
C) FOREIGN EXCHANGE OUT GO
As the operations of the company have not started in total, therefore, no earnings including foreign exchange or any foreign Technology, Visits or purchases are made during the year 2021-2022, hence, nothing to be reported under this heading.
HEALTH, SAFETY AND ENVIORMENT
Your company continues to take care about health, safety and environment within and around k. INVESTMENTS
Your company has made certain investments and the same shall be reported in the forthcoming financials years as part of Balance Sheet and proposed to invest in the projects under development by the Infrastructure Development Division as JVs/SPV which are under progress.
RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION AND ENERGY CONSERVATION
Your Company has initiated to focus on Research and Development activities with special emphasis on Engineering Products such as Welding Consumables, EPC Projects (Turn Key Projects) & Fabrication (Heavy, Structural, Pressure Parts, Light Special Purpose Machines & Tooling Systems and Jigs & Fixtures, Automotive Engineering and Infrastructure Development (Construction and Construction Related along with Special Materials and Material Sciences.
Further development of the Global Scenario in the above line of activities.
LONG TERM BORROWINGS.
Your company has no Long Term Borrowings as of now.
PART II - CORPORATE MATTERS HUMAN RESOURCES.
HUMAN RESOURCES.
Your Company continues to place high value on Human Resources as one of the corner stones for achieving the organizational vision. In line with this, it is proposed the Chairman's Award has to be instituted as the highest form of recognition for individuals and teams that have significantly contributed towards Your Company's long term profitable growth. It is proposed, the individuals and the teams are assessed by an eminent jury and the best achievements are recognized and honoured.
Your Company's proposed for initiating and developing internal leadership pipeline, the "Emerging Leaders Programme", has taken off to a good start and the identified talent are going through a structured development process.
Your Company has promoted purposive Industry-Institute collaborative initiatives creating a talent pool for industry with contemporary knowledge and skills.
PARTICULARS OF EMPLOYEES
Particulars of Employees as required under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
The board's report shall include a statement showing the name of every employee of the company., who-
(i) if employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than sixty lakh rupees; NIL
(ii) if employed for a part of the financial year, was in receipt of remuneration for any part of that year, at a rate which, in the aggregate, was not less than five lakh rupees per month; NIL
(iii) if employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the company. NIL
During the period, there was no employee drawing remuneration in the above category.
During the period, the company has three (Engineering Graduate trainees) one Engineer apart from Sixteen employees(by clients), however, the Personnel Policy of the company is initiated and will be made keeping in view of one of the best human.
As of now the company has twenty employees in total including client deputed employees A comprehensive Personnel Policy of the company is under constant revision by the Remuneration Committee keeping in view of the test human resource model.
AUDITORS
M/s. D Venugopal & Co, auditors of your Company, who are retiring at the Thirty Seventh General Meeting and being eligible to offer themselves for reappointment.
AUDIT COMMITTEE
Your company has constituted an Audit Committee to meet the requirements under the provisions of Sections 177 of the Companies Act, 2013 and the listing agreement with the stock exchanges. The committee is chaired by Mr Rajarapu Ramesh has taken over as the Chairman of the committee, who is an MBA with Finance as specialization and has 10 years of wide experience in the field of Finance & Marketing Services.
CORPORATE GOVERNANCE REPORT
A report on Corporate Governance Report and Management Discussions & Analysis Report is annexed separately as part of the report.
CASH FLOW STATEMENT
A cash flow statement for the year's operation is appended.
FIXED DEPOSITS
Your company has not accepted any fixed deposits under the provisions of Section 73 of the Companies Act, 2013 hence not applicable to the company.
All properties are insurable in the interest of the company including buildings, plant and machinery and stocks have been adequately insured. As required under Public Liability Insurance Act. 1991, your company has taken necessary insurance coverage.
DIRECTORS
Mr S Rajaneesh Chandra (02202828) and Mrs Rani Prasanna Sirimalla (02943355) by rotation and being eligible to offer themselves for reappointment.
ANCILLARY DEVELOPMENT
Your company has planned to develop ancillary companies wherein the products of ancillary Companies will be used in the products of your company.
DIRECTORS' RESPONSIBILITY STATEMENT AS PER SECTION 134 OF THE COMPANIES ACT, 2013
Responsibilities in relation to financial statements:
The financial statements have been prepared in conformity, in all material respects, with the generally accepted accounting principles in India and the accounting standards prescribed by ICAI in a consistent manner and supported by reasonable and prudent judgments and estimates. The Directors believe that the financial statements reflect true and fair view of the financial position as on 31.03.2022.
The financial statements have been audited by M/s. D Venugopal & Co, Chartered Accountants in accordance with generally accepted auditing standards which include an assessment of the systems of internal controls and tests of transactions to the extent considered necessary by them to support their opinion.
GOING CONCERN
In the opinion of the Directors, the Company's operations the main business activities, Manufacturing of Welding Consumable and Eqi ipment, Design, Fabrication, Erection and Commissioning of Process
Plants (EPC and Heavy Fabrication), Design, Manufacture, Erection and Commissioning of Special Purpose Machine Tools and Tooling Systems, and Infrastructure Development and accordingly it is considered appropriate to prepare the financial statements on the basis of going concern. Maintenance of accounting records and internal controls
The company has taken proper and sufficient care for the maintenance of adequate accounting records as required by the Statute.
Directors have overall responsibility for the Company's internal control system which is designed to provide a reasonable assurance for safeguarding of assets, reliability of financial records and for preventing and detecting fraud and other irregularities.
The system of internal control is monitored by internal audit function, which encompasses the examination and evaluation of the adequacy and effectiveness of the system of internal control and quality of performance in carrying out assigned responsibilities. Internal Audit Department interacts with all levels of management and the Statutory Auditors, and reports significant issued to the Audit Committee of the Board.
Audit Committee supervises financial reporting process through review of accounting and reporting practices, financial and accounting controls and financial statements. Audit Committee also periodically interacts with internal and statutory auditors to ensure quality and veracity of company's accounts.
Internal Auditors and Statutory Auditors have full and free access to all the information and records as considered necessary to carry out their responsibilities. All the issues raised by them have been suitably acted upon and followed up.
ACKNOWLEDGEMENTS
Your Directors wish to thank the Central Government, Government of Telangana, Financial Institutions and the Company's Bankers for a variety of help and regular encouragement to the company. Your Directors gratefully acknowledge the trust and confidence you as esteemed shareholders have placed in the company at all times. Your Directors also wish to place on record their appreciation of the dedicated services rendered by all the officers, staff and workers of the company at all levels and for their unfailing loyalty and sense of belonging which constituted the hall mark of your company.