NATIONAL BUILDINGS CONSTRUCTION CORPORATION LIMITED
ANNUAL REPORT 2011-2012
I have immense pleasure In welcoming you all at the 52nd Annual General
Meeting of the Company after listing on NSE & BSE in the second week of
April this year. Memories are fresh in my mind about the historic Gong
Ceremony marking the commencement of trading in company`s shares on these
stock exchanges. The Notice of the meeting together with Directors` Report
and Audited Annual Accounts for the financial year ending on 31.3.2012 has
already been circulated and with your permission, I take them as read.
I would like to begin with the unique characteristic of your Company which
is the only Public Sector Undertaking operating in three segments viz.,
(i) Project Management Consultancy;
(ii) Civil Construction for Infrastructure Power Projects; and
(iii) Real Estate Development. The Company`s prime engagement remains
confined in the core area of Project Management Consultancy occupying more
than 90% of its top line. The Company has obtained ISO Certification
9001:2008 from the Bureau of Indian Standards in respect of the Project
Management & Consultancy Division.
The Company`s client base is restricted to Central Government
organizations, departments, ministries. Also, the Company is executing
infrastructure and other developmental projects in few `States` under the
centrally sponsored schemes/projects. The slow down of economy with GDP
growth sliding to 5.3% in the three months to March, from a robust
positioning of 9.2% in the same period last year, has not made any major
impact on the Company either on its working operations or upon the
development of new business. Here, I would like to share with you that a
few old government colonies have been identified for re-development to
build different categories of accommodation for officials of the central
government. Re-development of such localities in the capital is expected to
generate sizeable volume of business to the Company in coming times.
Already, one work of this type having project cost of Rs.4264 crore has
been entrusted to the Company at a project management fee of 10% for
building 4747 dwelling units of different categories upon demolishing
around 2330 old houses at East Kidwai Nagar, New Delhi. Similarly, three
other projects of this kind are in pipeline for which the Company has taken
up initiatives for preparation of DPRs.
The performance of the Company has been impressive during fiscal 2011-12.
Net profit increased by 36% from Rs.140.34 crore to Rs.190.17 crore with
top line upwardly moving by 10% from Rs.3126.77 crore to Rs.3429.32 crore
in comparison to previous year. The Company issued fully paid bonus shares
of Rs. 30 crore during the financial year 2011-12 whereby the paid-up
capital increased from Rs.90 crore to Rs.120 crore and earning per share on
the expanded capital was maintained slightly higher at Rs.15.85 as against
Rs. 15.59 in the previous year. The net worth at the close of the financial
year 2011-12 stood at Rs.795.49 crore being 6.63 times of the paid-up
capital of the Company. The Comptroller and Auditor General of India has
conducted a supplementary audit and offered `nil` comments on the accounts
of the Company for the year ended 31st March, 2012.
Your Company has been signing Memorandum of Understanding with the
Government of India every year. Based on MoU parameters, the performance
has been rated `Excellent` since the year 2003-2004.
The Company has comfortable work order in hand of Rs. 13200 crore excluding
real estate work order. An eight storied commercial complex, NBCC Centre,
Okhla, New Delhi having 225833 sqft. built up space is likely to be
completed by March, 2013. Part sale of office space and shops in NBCC
Centre and partial sale of dwelling units in two other residential
complexes in Gurgaon is expected to generate fair revenue thereby improving
the overall margins of the Company during the current fiscal.
Geographically, the operations of the Company are spread in almost all
parts of the country through its on-going projects numbering around 150.
The Company has developed expertise in execution of hospitals on turn key
basis for esteemed client like ESIC and other state Governments. Few
clients such as MHA, DVC, NTPC, EPFO etc. having reposed their confidence
in your Company, have given repeat orders from time to time. I would like
to make a mention about first Green Building project executed with captive
solar power, solar heating and energy saving system, iconic Gold Rated -
Green Building, executed by your Company, for Ministry of Corporate Affairs
at Manesar, Haryana which was inaugurated by the Hon`ble Prime Minister of
India in April, 2012. Your Company would continue to construct more Green
Buildings and environmental projects. The Green Building having 5-Star
GRIHA rating for Ministry of New and Renewable Energy (MNRE) and Platinum
rating for Coal India Limited at Kolkata are under execution.
Your Company is committed to implement best practices of corporate
governance to observe total transparency and complete disclosures to all
the stakeholders. Annual financial results of the Company have been drawn
in conformity with the Accounting Standards, meetings of the audit
committee and other sub-committees of the board of directors are being
regularly convened. The Company has adopted Code of Business Ethics and
Conduct and all board members and key management personnel have affirmed
compliance to the `Code of Conduct` for the financial year ending on March
31, 2012. As per directives of the Department of Public Enterprises, fixed
percentage of the net profit of the Company has been allocated under a non-
lapsable fund for undertaking CSR activities. Similarly, budget allocation
has been provided for and policy formulations are under way for
`Sustainable Development` and `Research & Development` programmes.
I express my sincere thanks to the Ministry of Urban Development, Ministry
of Housing & Urban Poverty Alleviation, Ministry of Home Affairs, Ministry
of Defence, Ministry of Rural Development, Ministry of Commerce, Ministry
of Finance, various Departments of Government of India/State Governments
and Clients Organizations, PSUs etc. for their valued support and look
forward to continued support in future. I would also wish to place on
record the invaluable support and guidance from all members of the Board of
Directors. I would also place on record my appreciation to the employees
for their commitment in the progress of the Company.
Place: New Delhi Vishnu P. Das
Dated: Sept. 8, 2012 Chairman-cum-Managing Director
Newspaper: THE FINANCIAL EXPRESS
Dated : SEPTEMBER 10, 2012.