annual report | 2016 - 17 care homes limited … · annual report 2017 2 vision lichfl care homes...
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Annual Report | 2016 - 17
Annual Report 2017
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VISION
LICHFL Care Homes Limited has incorporated with a vision
to cater the needs of elderly citizens
and provide them an assisted living community.
LICHFL Care Homes Ltd shall be the hand stick of elderly
citizens of India and provide them an environment
to live with their dignity and independence.
MISSION
Ensuring comfort, care, security and independence
with privacy of individuals to make them live with
same dignity as the erstwhile.
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Contents
Page
No.
About Us …………………………………………………….. 4
Projects …………………………………………………….. 4
Company Information …………………………………………………….. 6
Notice …………………………………………………….. 7
Directors’ Report …………………………………………………….. 19
Independent Auditors’ Report,
Annexure to Auditors’ Report and
Report on Internal
Financial Control …………………………………………………….. 36
Balance Sheet …………………………………………………….. 42
Profit & Loss Account …………………………………………………….. 43
Cash Flow Statement …………………………………………………….. 44
Notes forming part of Accounts …………………………………………………….. 46
Grouping forming part of Accounts …………………………………………………….. 62
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About Us
LICHFL Care Homes Limited, a wholly owned subsidiary of LIC Housing Finance Ltd., was incorporated on
September 11, 2001, with the basic purpose of establishing and operating assisted living community centers for
elderly citizens in major cities across India. With the vision of LIC of India, the Company emerges to discharge
a great CSR (Corporate Social Responsibility). The Company has been working towards ensuring comfort,
privacy, and security to the elderly citizens along with preserving their dignity and independence. Company’s
pilot project at Bangalore, inaugurated in 2006, is an eco-friendly campus. LICHFL Care Homes Limited
promotes shelter & freedom from routine chores, social interaction, and harmonious companionship among
residents and provides comprehensive services with 24 x 7 securities.
Company is first public sector corporate unit ventures to convert a strong social need to a business opportunity,
with discharge of corporate social responsibility.
Projects
BANGALORE PH I
In order to cater to a long felt need of the elderly citizens of India, LICHFL Care Homes Limited took its maiden
step in establishing a premier retirement village amidst of abundant greenery and eco-friendly atmosphere at
Madanayakanahalli, Tumkur Road, Bangalore North. The Company utilized land admeasuring 7.14 acres for
development of Bangalore PH I project. The Company allotted independent residential cottages with best
quality construction, emergency medicare and other modern facilities for a community living at a very
affordable price. To ensure the harmonious living of the residents and keeping in view the objectives, the project
had been constructed with various amenities such as Common kitchen, Library, 24 hours security, Ambulance,
Yoga center etc.
The project consist of 98 cottages of two bedroom and one bedroom of different size at economical prices for
elderly citizens.
BANGALORE PH II
Remaining vacant land admeasuring 2.93 acres at Bangalore Campus of the Company utilized by developing
Bangalore PH II project. LICHFL Care Homes Limited constructed 144 flats divided into 4 towers comprising
of 2BHK and 3BHK at affordable prices for elderly citizens. The project inaugurated on August 12, 2013 with
all the planned amenities such as amenity center, reading room, gymnasium, meditation hall, function and
party hall, swimming pool, sewage treatment plant and water softener plant. The project has been structured
in a handicapped friendly architecture keeping in view health problems concerning to elderly citizens.
Bangalore PH II project takes care of energy conservation principles and has installed solar water heater over
the top of the buildings and solar street lights at common area to promote use of solar energy. Facilities like
Post office and ATM facility in the Bangalore Campus premises has also been started.
BHUBANESWAR
LICHFL Care Homes Limited started its another project located at Aiginia and Ghatikia, Bhubaneswar in May,
2011 on a land coverage of admeasuring 5 acres, The Company is developing this project consisting of 240 flats
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of 1BHK, 2BHK and 3BHK divided into 4 towers and an amenity building with space for various amenities
such as reading room, sewerage treatment plant, meditation hall, and gymnasium etc.
The project has its own location advantages such as nearby banks and markets, and in proximity of multi-
specialty hospital. The project is in its full swing and at nearly completion stage.
VASIND
LICHFL Care Homes Limited is launching its next Senior Living Care Homes project in collaboration with
TATA Value Homes Limited at Vasind, in Thane district of Maharashtra. The project is proposed with 566 flats
of 1BHK, 1.5BHK and 2BHK divided into 8 towers and senior living club house amenities such as age friendly
gym, multipurpose hall, meditation / yoga center, library reading room, landscaped garden etc.
The project has its own advantage of having two reputed brand names. The project is currently under plans
approval stage and is expected to start shortly. The basic infrastructure is already available at the locale and
the project propounds the ecstatic living purpose of LICHFL Care Homes Limited.
Annual Report 2017
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Company Information
BOARD OF DIRECTORS AUDITORS
Smt. Usha Sangwan M/s. Shankarlal Jain & Associates LLP
Chairman (Upto June 16’) Chartered Accountants
12, Engineer Building, 265,
Shri Hemant Bhargava Princess Street, Mumbai – 400 002
Additional Director & (Retires on this Annual General Meeting)
Chairman (From May 17’)
M/s. Sarda & Pareek
Smt. Sunita Sharma Chartered Accountants
Managing Director (upto April 17’) Mahavir Apartments, Third Floor,
598, M.G. Road, Near Suncity Cinema,
Shri Vinay Sah Vile Parle (East), Mumbai – 400 057.
Managing Director (From May 17’) (New appointment on this Annual General Meeting)
Shri V. Sathyakumar
Director & Chief Executive OFFICES
Registered & Corporate Office
Dr. Firdos T Shroff First floor, East Wing,
Independent Director Industrial Assurance Building,
Opp. Churchgate Station, Mumbai – 400 020.
Shri K Madhava Kumar Tel : 91 22 2287 5621 / 22
Director TeleFax : 91 22 2287 5622
Email : [email protected]
Website : www.lichflcarehomes.com
COMPANY SECRETARY Bangalore
Shri Surendra Vyas Madnayakanahlli, Off. Tumkur Road,
Bangalore – 562 162.
Tel : 91 80 2371 6574
CIN NO.
U85310MH2001PLC133341 Bhubaneswar
IPICOL House, 3rd Floor,
Janpath, Rupali Square,
BANKERS / FINANCIAL INSTITUTIONS Bhubaneswar – 751 022
Andhra Bank
Corporation Bank
HDFC Bank
Canara Bank
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Notice LICHFL CARE HOMES LIMITED
CIN: U85310MH2001PLC133341
Registered Office: First Floor, East Wing, Industrial Assurance Building, Churchgate, Mumbai - 400 020.
NOTICE OF THE SIXTEENTH (16TH) ANNUAL GENERAL MEETING
Notice is hereby given that the Sixteenth (16TH) ANNUAL GENERAL MEETING of LICHFL CARE HOMES
LIMITED will be held on Tuesday, June 27, 2017, at Committee Room No. 2, Seventh Floor, LIC of India, Central
Office, YOGAKSHEMA, Jeevan Bima Marg, Mumbai – 400 021, Maharashtra at 3.30 P.M. on Shorter Notice to
transact following business :
ORDINARY BUSINESS
1. Adoption of financial statements
To receive, consider and adopt the Annual Audited Balance Sheet as at March 31, 2017, the Profit & Loss
a/c for the year ended March 31, 2017, together with the Reports of Board of Directors and the Auditors
thereon.
2. Declaration of Dividend
To declare Dividend on Equity Shares for the financial year ended March 31, 2017.
3. Appointment of Director
To appoint a Director in place of Shri K. Madhava Kumar (DIN: 00791168), who retires by rotation and
being eligible, offers himself for re-appointment.
4. Appointment of Auditors
To consider and, if thought fit, to pass with or without modification(s) the following resolution as
ORDINARY RESOLUTION:
"RESOLVED THAT pursuant to the provisions of Section 139, 141, 142 and other applicable provisions, if
any, of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 including any
statutory modification(s) and re-enactments thereof for the time being in force and in terms of article 191 of
Articles of Association of the Company, the consent of the Company be and is hereby accorded to the
appointment of M/s. Sarda & Pareek, Chartered Accountants (Firm Registration No. 109262W) as Auditors
of the Company to hold office for a period of three years commencing from conclusion of this Annual
General Meeting until the conclusion of the Nineteenth Annual General Meeting of the Company, subject
to ratification of their appointment during every Annual General Meeting by Shareholders, on a
remuneration to be determined by the Board of Directors in consultation with them plus reimbursement of
out of pocket expenses incurred by them for the purpose of audit of Company's accounts at its Registered
and Corporate Office.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to take
such steps as may be necessary, expedient and desirable to give effect to this resolution and for matters
concerned therewith or incidental thereto."
Annual Report 2017
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SPECIAL BUSINESS
5. Appointment of Shri Hemant Bhargava (DIN: 01922717) as Director of the Company.
To consider and, if thought fit, to pass with or without modification(s) the following resolution as
ORDINARY RESOLUTION:
“RESOLVED THAT pursuant to the provisions of Section 152 and other applicable provisions, if any, of the
Companies Act, 2013 read with the rules made thereunder including any statutory modifications and
enactments thereof for the time being in force, Shri Hemant Bhargava (DIN: 01922717) who in terms of
Section 161 of the Companies Act, 2013 and rules made thereunder, has been appointed as an Additional
Director of the Company by the Board of Directors w.e.f. May 11, 2017 and holds office upto the date of this
meeting and in respect of whom, the Company has received a Notice in writing from a Member pursuant
to Section 160 of the Companies Act, 2013 proposing his candidature for the office of Director, be and is
hereby appointed as Director of the Company on a remuneration as determined by the Board of Directors
from time to time subject to limits prescribed under Part II of Schedule V of the Companies Act, 2013, not
liable to retire by rotation.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to take
such steps as may be necessary, expedient and desirable to put this resolution into effect and for matters
concerned therewith or incidental thereto.”
6. Appointment of Shri Vinay Sah (DIN: 02425847) as Managing Director of the Company.
To consider and, if thought fit, to pass with or without modification(s) the following resolution as
ORDINARY RESOLUTION:
"RESOLVED THAT pursuant to the provisions of Section 196, 197, Schedule V and other applicable
provisions, if any, of the Companies Act, 2013, read with the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, including any statutory modification(s) and re-enactments thereof
for the time being in force, approval of the Company be and is hereby accorded to the appointment of Shri
Vinay Sah (DIN : 02425847) as the Managing Director of the Company for a period commencing from May
11, 2017 till date of his services with LIC Housing Finance Limited subject to maximum term of five years
and stipulations prescribed under Part I & II of Schedule V of the Companies Act, 2013 on a remuneration
as determined by the Board of Directors from time to time subject to limits prescribed under Part II of
Schedule V of the Companies Act, 2013, not liable to retire by rotation.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to take
such steps as may be necessary, expedient and desirable to give effect to this resolution and for matters
concerned therewith or incidental thereto."
7. Increase in Authorised Capital of the Company.
To consider and, if thought fit, to pass with or without modification(s) the following resolution as
ORDINARY RESOLUTION:
“RESOLVED THAT pursuant to the provisions of Section 61, 64 and other applicable provisions, if any, of
the Companies Act, 2013 read with the rules made thereunder including any statutory modification(s) and
re-enactments thereof for the time being in force and article 3(a) and 78 of the Articles of Association of the
Company, the Authorized Equity Share Capital of the Company be and is hereby increased from Rs.
25,00,00,000/- (Rupees Twenty Five Crore only) divided into 2,50,00,000 (Two Crore Fifty Lakh only) Equity
Shares of face value of Rs. 10/- (Rupees Ten only) each to Rs. 75,00,00,000 (Rupees Seventy Five Crore only)
divided into 7,50,00,000 (Seven Crore Fifty Lakh only) Equity Shares of face value of Rs. 10/- (Rupees Ten
9
only) each by creation of new 5,00,00,000 (Five Crore only) Equity Shares of face value of Rs. 10/- (Rupees
Ten only) each.
RESOLVED FURTHER THAT pursuant to the provisions of Section 13 and other applicable provisions, if
any, of the Companies Act, 2013 including any statutory modification(s) and re-enactments thereof for the
time being in force, consequent to the increase in Authorized Share Capital of the Company, the existing
clause V(a) of Memorandum of Association of the Company be substituted with the following clause:
“V (a) The Authorized Share Capital of the Company is Rs. 75,00,00,000 (Rupees Seventy Five Crore only)
divided into 7,50,00,000 (Seven Crore Fifty Lakh only) Equity Shares of Rs. 10/- (Rupees Ten only) each.”
RESOLVED FURTHER THAT pursuant to the provisions of Section 14 and other applicable provisions, if
any, of the Companies Act, 2013 including any statutory modification(s) and re-enactments thereof for the
time being in force, consequent to the increase in Authorized Share Capital of the Company, the existing
clause 3(a) of Articles of Association of the Company be substituted with the following clause:
“3 (a) The Authorized Share Capital of the Company is Rs. 75,00,00,000/- (Rupees Seventy Five Crore only)
divided into 7,50,00,000 (Seven Crore Fifty Lakh only) Equity Shares of Rs. 10/- (Rupees Ten only) each with
power to increase or reduce the capital from time to time in accordance with these presents and subject to
the provisions of the Act and to divide the shares in the Capital of the Company for the time being whether
original or increase into several classes and attach thereto respectively such preferential, deferred, qualified
or special rights, privileges, restrictions or conditions whether in regard to dividend, voting, return of
capital or otherwise in accordance with these presents for the time being to vary, modify or abrogate any
such rights, privileges, conditions or restrictions in such manner as may be provided by the Act or as
provided by these presents.”
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to take
such steps as may be necessary, expedient and desirable to give effect to this resolution and for matters
concerned therewith or incidental thereto."
By Order and on Behalf of the Board of
LICHFL Care Homes Limited
Mumbai, June 27, 2017
sd/-
V. Sathyakumar
Director & Chief Executive
REGISTERED OFFICE:
First Floor, East Wing,
Industrial Assurance Building,
Churchgate, Mumbai – 400 020
Maharashtra.
Tel: 91 22 2287 5621 TeleFax: 91 22 2287 5622
Email: [email protected]
Website: www.lichflcarehomes.com
Annual Report 2017
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NOTES:
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A
PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF AND SUCH A PROXY NEED NOT
BE A MEMBER.
THE INSTRUMENT APPOINTING THE PROXY, IN ORDER TO BE EFFECTIVE, MUST BE RECEIVED
BY THE COMPANY AT ITS REGISTERED OFFICE NOT LESS THAN 48 HOURS BEFORE THE
COMMENCEMENT OF THE MEETING. Proxies submitted on behalf of limited Companies, Societies etc.,
must be supported by appropriate resolution / authority, as applicable.
2. The Register of Members, Register of Directors and their shareholding along with Transfer Books of the
Company will be closed from June 26 to June 27, 2017.
3. The Final Dividend for the financial year ended March 31, 2017, as recommended by the Board, if approved
at the AGM, shall be paid on or after July 1, 2017 to those members whose names appears in the Register of
Members of the Company as on the book closure date.
4. The member desiring any information with regard to accounts are requested to write to the Company at an
early date, so as to enable the Company to keep information ready at the meeting.
5. The relevant Explanatory Statement as required under section 102 of the Companies Act, 2013 in respect of
the agenda item No. 4 to 7 of the Notice convening the Meeting is annexed hereto.
All documents referred to in the accompanying notice and statement pursuant to Section 102 of the
Companies act, 2013 are open for inspection during business hours on all working days (except Saturday,
Sunday and Public Holidays) at the Registered and Corporate Office of the Company.
6. As a measure of economy and to support ‘Green Initiative’, copies of the annual report will not be
distributed at the Annual General Meeting. Members are therefore, requested to bring their copies of the
Annual Report to the Meeting.
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Explanatory Statements (Pursuant to the Section 102 of the Companies Act, 2013)
AGENDA ITEM NO. 4
This explanatory statement is provided though mandatorily not required as per Section 102 of the Companies
Act, 2013.
M/s Shankarlal Jain & Associates LLP, Chartered Accountants were Statutory Auditors of the Company for a
period of three years commencing from conclusion of Thirteenth Annual General Meeting till conclusion of
Sixteenth Annual General Meeting of the Company. Accordingly the tenure of M/s. Shankarlal Jain & Associates
LLP in the office of Statutory Auditors ends with conclusion of this Annual General Meeting.
The candidature of M/s. Sarda & Pareek, Chartered Accountants (Firm Reg. No.: 109262 W) was considered for
appointment as Statutory Auditors of the Company and they have also expressed their willingness to carry out
Statutory Audit work. M/s. Sarda & Pareek is a Chartered Accountant firm based in Mumbai. The firm was
established in 1983, having 2 branches and 12 partners. The firm is registered with the Institute of Chartered
Accountants of India, Comptroller and Auditor General of India and Reserve Bank of India. M/s. Sarda &
Pareek, Chartered Accountants has exposure in Audit/Assurance, Direct Tax, Indirect Tax,
Advisory/Consultancy and Compliance & Regulatory.
M/s. Sarda & Pareek, Chartered Accountants has furnished Auditor Certificate dated: June 13, 2017 declaring
that they are eligible to be appointed as Statutory Auditors of the Company and do not incur any
disqualification specified under Section 141 of the Companies Act, 2013.
In compliance with the provisions of Section 139 of the Companies Act, 2013 and rules made thereunder, as per
the recommendations of the Audit Committee, the Board of Directors of the Company proposed appointment
of M/s. Sarda & Pareek, Chartered Accountants as Statutory Auditors of the Company for a period of three
years commencing from conclusion of this Annual General Meeting till conclusion of Nineteenth Annual
General Meeting subject to ratification of their appointment at every succeeding Annual General Meeting.
The appointment of M/s. Sarda & Pareek, Mumbai as Statutory Auditors of the Company requires approval of
the Shareholders of the Company by passing an Ordinary Resolution during Annual General Meeting of the
Company.
None of the Directors of the Company is deemed to be concerned or interested financially or otherwise in the
Ordinary Resolution at agenda Item No. 4 of this Notice.
The Board accordingly commends the ORDINARY RESOLUTION set out in agenda item No. 4 of the
accompanying Notice for the approval of the Members.
AGENDA ITEM NO. 5
Pursuant to the provisions of Section 161 of the Companies Act, 2013 and rules made in this regard and in
accordance with the nomination letter ref no.: LICHFL/CS/Nomination/2017-18, dated: May 2, 2017, the Board
of Directors (“the Board”) of the Company in its meeting dated May 11, 2017 appointed Shri Hemant Bhargava
(DIN: 01922717) as an Additional Director & Chairman of the Company w.e.f. May 11, 2017. In terms of Section
161 of the Companies Act, 2013, Shri Hemant Bhargava holds office of Additional Director upto the ensuing
Annual General Meeting.
Annual Report 2017
12
The Company has received a Notice under Section 160 of the Companies Act, 2013 from a member of the
Company along with requisite fee, proposing candidature of Shri Hemant Bhargava for appointment as a
Director of the Company. Shri Hemant Bhargava, if appointed, will not withdraw remuneration or
compensation from the Company but the scope of remuneration may be altered or varied by the Board of
Directors in light and in conformity with the provisions of the Companies Act, 2013 and rules made thereunder.
In terms of Section 152 of the Companies Act, 2013 and rules made thereunder, consent of Shareholders is
required for appointment of Shri Hemant Bhargava as Director of the Company.
As per the Article 131(3) of Articles of Association of the Company, Shri Hemant Bhargava, if his appointment
approved by the Shareholder, shall not be liable to retire by rotation.
A brief resume of Shri Hemant Bhargava is provided in Annexure to this notice.
Except Shri Hemant Bhargava, none of the Directors of the Company is deemed to be concerned or interested
in the Ordinary Resolution set out at agenda item No. 5 of this Notice, except as a member, if any, of the
Company.
The Board accordingly commends the ORDINARY RESOLUTION set out in agenda Item No. 5 of the
accompanying Notice for the approval of the Members.
AGENDA ITEM NO.6
Pursuant to the provisions Section 196, 197, Schedule V of the Companies Act, 2013 and rules made in this
regard and in accordance with the nomination letter ref no.: LICHFL/CS/Nomination, dated: April 17, 2017, the
Board of the Company in its meeting dated: May 11, 2017 appointed Shri Vinay Sah as Managing Director of
the Company w.e.f. May 11, 2017 for a period commencing from May 11, 2017 till the date of his services with
LIC Housing Finance Limited subject to maximum of five years and stipulations prescribed under Part I & Part
II of Schedule V of the Companies Act, 2013.
The Company has received a Notice under Section 160 of the Companies Act, 2013 from a member of the
Company along with requisite fee, proposing candidature of Shri Vinay Sah for appointment as Managing
Director of the Company. Shri Vinay Sah, if appointed, will not withdraw remuneration or compensation from
the Company but the scope of remuneration may be altered or varied by the Board of Directors in light and in
conformity with the provisions of the Companies Act, 2013 and rules made thereunder.
In terms of Section 196, 197 of the Companies Act, 2013 and rules made thereunder, consent of Shareholders is
required for appointment of Shri Vinay Sah as Managing Director of the Company.
As per the Article 131(3) of Articles of Association of the Company, Shri Vinay Sah, if his appointment approved
by the Shareholder, shall not be liable to retire by rotation.
A brief resume of Shri Vinay Sah is provided in Annexure to this notice.
Except Shri Vinay Sah, none of the Directors of the Company is deemed to be concerned or interested in the
Ordinary Resolution set out at agenda item No. 6 of this Notice, except as a member, if any, of the Company.
The Board accordingly commends the ORDINARY RESOLUTION set out in agenda Item No. 6 of the
accompanying Notice for the approval of the Members.
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AGENDA ITEM NO. 7
The Company was formed with an Authorised Share Capital of Rs. 25,00,00,000/- (Rupees Twenty Five Crore
only) comprising of 2,50,00,000 (Two Crore Fifty Lakh only) Equity Shares of face value of Rs. 10/- (Rupees Ten
only) each.
Over the years, the volume of business has been increasing constantly and the Company has also embarked
upon expansion plans. In order to expand the capital base, it is now proposed to increase the Authorised Equity
Share Capital from the existing limit of Rs.25,00,00,000/- (comprising 2,50,00,000 equity shares of Rs. 10/- each)
to Rs.75,00,00,000/- (comprising of 7,50,00,000 equity shares of Rs. 10/- each).
Pursuant to the provisions of Section 61 and 64 of the Companies Act, 2013 read with the rules made thereunder
and as per power conferred by the article 3(a) and 78 of the Articles of Association of the Company, the Board
in its meeting dated: January 18, 2017 accorded its approval to increase Authorised Share Capital of the
Company from existing Rs. 25,00,00,000/- (Rupees Twenty Five Crore only) divided into 2,50,00,000 (Two Crore
Fifty Lakh only) equity shares of face value of Rs. 10/- (Rupees Ten only) each to Rs. 75,00,00,000 (Rupees
Seventy Five Crore only) divided into 7,50,00,000 (Seven Crore Fifty Lakh only) equity shares of face value of
Rs. 10/- (Rupees Ten only) each by creation of new 5,00,00,000 (Five Crore only) equity shares of face value of
Rs. 10/- (Rupees Ten only).
The new Equity Shares so created shall rank pari-passu with existing Equity Shares of the Company in terms
of voting rights, dividend, and return of capital or otherwise.
Consequent to the increase in Authorised Share Capital of the Company, alteration in Capital Clause i.e. clause
V(a) of the Memorandum of Association and article 3(a) of Articles of Association shall be required with new
Authorised Share Capital of the Company i.e. Rs. 75,00,00,000/- (Rupees Seventy Five Crore only).
The Resolution set out in agenda item no. 7 seeks approval to increase the Authorised Share Capital of the
Company as aforesaid and to alter Memorandum of Association and Articles of Association of the Company
respectively, consequential to such increase in the Authorised Share Capital of the Company as proposed.
In terms of Section 61, 64, 13 and 14 of the Companies Act, 2013 the aforesaid proposal requires the consent of
the Shareholders.
None of the Directors of the Company is deemed to be concerned or interested financially or otherwise in the
Ordinary Resolutions set out at agenda item No. 7 of this Notice.
The Board accordingly commends the ORDINARY RESOLUTIONS set out in agenda Item No. 7 of the
accompanying Notice for the approval of the Members.
By Order and on Behalf of the Board of
LICHFL Care Homes Limited
sd/-
V. Sathyakumar
Director & Chief Executive
Mumbai, June 27, 2017
REGISTERED OFFICE:
First Floor, East Wing,
Industrial Assurance Building,
Churchgate, Mumbai – 400 020
Maharashtra.
Tel: 91 22 2287 5621 TeleFax: 91 22 2287 5622
Email: [email protected]
Website: www.lichflcarehomes.com
Annual Report 2017
14
Annexure to the Notice
Details of Director(s) seeking appointment/reappointment at the Sixteenth (16TH) ANNUAL GENERAL
MEETING
Name of Director Shri K, Madhava Kumar
Director Identification
Number
00791168
Date of Joining the Board November 9, 2015
Qualifications M.Com, CA IIB (UTI)
Directorship held in other
Companies
Union KBC Trustee Company Private Limited
Unit Trust Of India Investment Advisory Services Limited
Membership held in
Committees of other
Companies
Nil
Number of shares held in
Company
Nil
Name of Director Shri Hemant Bhargava
Director Identification
Number
01922717
Date of Joining the Board May 11, 2017
Qualifications M.A. (Economics)
Directorship held in other
Companies
LIC (Lanka) Limited
LIC Pension Fund Limited
LIC Mutual Fund Trustee Private Limited
Infrastructure Leasing and Financial Services Limited
Life Insurance Corporation (LIC) of Bangladesh Limited
LIC Golden Jubilee Foundation
LICHFL Assets Management Company Limited
Voltas Limited
National Insurance Academy, Pune
Membership held in
Committees of other
Companies
LIC of India
Investment Committee – Member
Executive Committee – Member
Policyholders Protection Committee – Member
Shareholder Committee - Member
LIC Pension Fund Limited
Audit Committee – Member
LIC (Lanka) Limited
Audit Committee – Chairman
15
Life Insurance Corporation (LIC) of Bangladesh Limited
Executive Committee – Chairman
Audit Committee - Member
Risk Management Committee – Member
Number of shares held in
Company
Nil
Name of Director Shri Vinay Sah
Director Identification
Number
02425847
Date of Joining the Board May 11, 2017
Qualifications M. Sc. (Statistics)
Directorship held in other
Companies
LIC Bangladesh Ltd.
Kesoram Industries Ltd.
LIC Housing Finance Ltd.
LIC Mutual Fund Asset Management Ltd.
LICHFL Financial Services Ltd.
LICHFL Asset Management Co. Ltd.
LICHFL Care Homes Ltd.
Membership held in
Committees of other
Companies
LICHFL Asset Management Co. Ltd.
HR Committee – Member
LIC Bangladesh Ltd.
Investment Committee – Member
Executive Committee – Chairman
Kesoram Industries Ltd.
Audit Committee – Member
Stakeholders Relationship Committee – Member
Nomination & Remuneration Committee - Member
Number of shares held in
Company
100
Annual Report 2017
16
Proxy FORM
[Pursuant to Section 105 (6) of the Companies
Act, 2013 read with Rule 19 (3) of the Companies
(Management and Administration) Rules, 2014 – Form MGT - 11]
LICHFL CARE HOMES LIMITED
CIN: U85310MH2001PLC133341
Registered Office: First Floor, East Wing, Industrial Assurance Building, Churchagte, Mumbai - 400 020.
I/We ..................................... of ............................... being a member/members of LICHFL Care Homes Limited hereby
appoint
Name: ............................................................................. ..... Email: …………………………..............................................
Address: ...........................................................................................................................................................................................
……..................................................................... Signature: ...............................................................................
and / or failing him / her
Name: .................................................................................. Email: …………………………..............................................
Address: .................................................................................................................... .......................................................................
……..................................................................... Signature: ...............................................................................
and / or failing him / her
Name: .................................................................................. Email: …………………………..............................................
Address: .................................................................................................................... .......................................................................
……..................................................................... Signature: ...............................................................................
as my/our Proxy to attend and vote for me/us and on my/our behalf at the SIXTEENTH (16TH) ANNUAL GENERAL
MEETING of the Company to be held on Tuesday, June 27, 2017, at Committee Room No. 2, Seventh Floor, LIC of
India, Central Office, YOGAKSHEMA, Jeevan Bima Marg, Mumbai – 400 021, Maharashtra at 3.30 P.M. and at any
adjournment(s) thereof in respect of such resolutions as are indicated below:-
17
Resolution
Number Resolution
VOTE (Optional see Note – 3)
For Against Absent
ORDINARY BUSINESS
1.
Adoption of Balance Sheet, Statement of Profit and Loss, Reports
of the Board of Directors and Auditors for the financial year
ended March 31, 2017.
2. Declaration of Dividend.
3.
Appointment of Director in place of Shri K. Madhava Kumar,
who retires by rotation and being eligible offers himself for
reappointment.
4. Appointment of M/s. Sarda & Pareek, Chartered Accountants as
auditors of the Company.
SPECIAL BUSINESS
5. Appointment of Shri Hemant Bhargava as Director of the
Company.
6. Appointment of Shri Vinay Sah as Managing Director of the
Company.
7. Increase in Authorised Capital of the Company.
Signed this day of 2017.
............................................ .....................................................
Signature of the member Signature of the proxy holder(s)
Note: 1. The proxy need not to be a member of the Company.
2. The proxy in order to be effective, deposit this form duly completed, stamped and signed to the Registered Office of the Company at First Floor, East
Wing, Industrial Assurance Building, Churchgate, Mumbai - 400 020, not less than 48 hours before the commencement of the meeting.
3. It is optional to indicate your preference. If you leave the 'for', 'against' or 'abstain' column blank against any or all of the resolutions, your proxy will be
entitled to vote in the manner as he/she may deem appropriate.
Affix
Revenue
Stamp of
not less
than INR 1
18
Route map to the venue of the AGM
Committee Room No. 2, Seventh Floor,
LIC of India, Central Office,
YOGAKSHEMA, Jeevan Bima Marg,
Mumbai – 400 021, Maharashtra.
19
Directors’ Report
To
The Members,
LICHFL Care Homes Limited
The Board of Directors is delighted to present the Sixteenth (16th) Annual Report of your Company together
with the Annual Audited Balance Sheet and Profit & Loss a/c and Auditors’ Report for the year ended March
31, 2017.
FINANCIAL HIGHLIGHTS
The summarized results of the Company are given in the table below:
(Figures in Rs. Lakh)
PARTICULARS 2016 – 17 2015 – 16
Total Income 541.62 282.66
Total Expenditure including depreciation 539.07 254.37
Profit/ (Loss) Before extraordinary items and tax expenses 2.55 28.29
Tax expenses of current year 8.30 13.00
(Excess)/Short Provisions of earlier years (88.26) -
Profit / (Loss) After Tax transferred to Balance Sheet 82.51 15.29
OPERATIONAL SUMMARY
Our total income for the F.Y. 2016 - 17 is Rs. 541.62 Lakh (P.Y. Rs. 282.66 Lakh) which includes operational
income earned of Rs. 333.69 Lakh from Bhubaneswar project of the Company. During the year we have earned
interest income of Rs. 193.44 Lakh (P.Y. Rs. 254.08 Lakh) from short terms deposits held with various schedule
banks.
The Profit Before Tax and Extra-Ordinary items amounted to Rs. 2.55 Lakh (P.Y. Rs. 28.29 Lakh). The Profit after
Tax and Extra-Ordinary items of the current year is Rs. 82.51 Lakh (P.Y. Rs. 15.29 Lakh), which is transferred to
profit & loss account which now stands at Rs. 1,954.81 Lakh (P.Y. Rs. 1,872.30 Lakh).
DIVIDEND
Considering the expansion plans and future growth of the Company, your Directors recommend payment of
dividend for the financial year ended March 31, 2017 of Rs. 0.20 per equity share of face value of Rs. 10 per
equity share i.e. 2 percent. Total cash outgo for the current year on account of dividend would amount to Rs.
20.54 Lakh including Dividend Distribution Tax of Rs. 3.44 Lakh.
BUSINESS PERFORMANCE
The Company witnessed sluggish though steady growth in operations for its on-going project at Bhubaneswar
for the year under review. The work at project at Bhubaneswar is moving at its nearing completion stage. The
Company is putting its efforts to complete the project at Bhubaneswar at an early date.
We are seeking the goal to provide better living conditions to all the residents of our projects and are committed
to provide the superior quality services in future.
Annual Report 2017
20
INDUSTRY SCENARIO
Real estate tends to be a particularly cyclical industry, going up and down based on trends in the economy at
large such as the fluctuation in interest rates. The market size of real estate sector in India is projected to reach
third largest in the world by 2020.
The concept of homes for aged has undergone a seachange, with the name itself now being senior living or
assisted living. The services offered include fulfilling the social, security, healthcare, administrative, food and
other requirements including understanding what the requirements of elderly person are as against those of
young age.
In fact, the entire structure of senior living today is designed keeping in mind the requirement of seniors.
There are currently about 30 senior living projects at different geographical locations of India and most of these
senior living projects are single developments. Currently about 30 more senior living projects are in pipeline in
India. As per research, the current estimated demand for senior housing / assisted living in India is
approximately 3,00,000 units.
Looking to the industry scenario and prevailing market conditions, the Company has vast opportunities to
spread its wings in major cities across India.
FUTURE GROWTH
We are very optimistic about the future growth of the Company as presently Company is serving in two major
cities Bengaluru and Bhubaneswar. The Concept of senior / assisted living is keeping a momentum in India and
more people are showing their concern to become part of senior living community centers. Looking to the
dynamic change in the social structure and need of the society, we are looking to spread our wings in all major
cities of India.
The Company recently has tied up with TATA Value Homes Limited to develop in collaboration a Senior Living
project at Vasind in Thane district of Maharashtra. The project is under plans approval stage and shall start
shortly.
The Company is looking to acquire land parcels at Satyam Enclave, Jeedimetla, Hyderabad offered by
Infrastructure Leasing & Financial Services Limited (“IL&FS”). The Board has accorded its In-Principle
approval to acquire the land parcel. Techno-feasibility of the project has been done and legal due diligence of
land is in progress.
The Company is also looking to acquire land parcel at Aluva, Kerala through Kerala State IT Infrastructure
Limited a fully owned Government of Kerala Company. The Board has accorded its approval to acquire the
land parcel. Techno-feasibility of the project and legal due diligence has been done and acquisition of land
parcel is at the final stage.
The Company is also considering to acquire land parcel at Aerocity Mega Scheme of BDA, Bhopal from Bhopal
Development Authority. The matter of acquisition of land parcel is in process along with due negotiation with
Bhopal Development authority and the Company is likely to acquire the same at early date.
MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF
THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS
FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Company occurred between the
end of the financial year to which this financial statements relate i.e. March 31, 2017 and the date of this report.
21
PARTICULERS OF LOANS, GUARANTEES OR INVESTMENTS
The company has not given any loans or guarantees covered under the provisions of section 186 of the
Companies Act, 2013.
THE CHANGE IN THE NATURE OF BUSINESS
There was neither any change in the nature of the Business nor any increase in segmental business of the
Company during the financial year.
THE NAMES OF COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES, JOINT
VENTURES OR ASSOCIATE COMPANIES DURING THE YEAR
No Company has become or ceased to be subsidiaries, joint ventures of the Company during the year.
SIGNIFICANT AND MATERIAL ORDER PASSED BY THE REGULATORS
There are no significant and material orders passed by the regulators or courts or tribunals impacting the going
concern status of your Company and its operations in future
DEPOSITS
The Company has not accepted any deposit within the meaning of section 73 of the Companies Act, 2013 and
the Companies (Acceptance of Deposits) Rules, 2014.
LIQUIDITY & INVESTMENTS
We continue to be debt free and maintain sufficient cash to meet our business objectives. We clearly understand
that the liquidity in the Balance Sheet has to balance between earning adequate returns and need to cover
financial and business risks. Liquidity also enables us to make rapid shift in the direction, as the market so
demands.
As at March 31, 2017, we had liquid assets of Rs. 2,529.23 Lakh (P.Y. Rs. 3,284.45 Lakh). Out of total liquid fund
Rs. 2,452.84 Lakh (P.Y. Rs. 3,252.69 Lakh) have been invested in fixed deposits with schedule Banks. The
investment in Fixed Deposits has generated earnings of Rs. 193.44 Lakh (P.Y. Rs. 254.08 Lakh) during the
financial year 2016 - 17.
DIRECTORS’ DETAILS
The Company has following Directors on its Board:
SI. No. Name of Director Designation
1. Smt. Usha Sangwan (DIN : 02609263)
(upto June 01, 2016) Chairman & Director
2. Shri Hemant Bhargava (DIN : 01922717)
(from May 11, 2017) Chairman & Additional Director
3. Smt. Sunita Sharma (DIN : 02949529)
(upto April 11, 2017) Managing Director
4. Shri Vinay Sah(DIN : 02425847)
(from May 11, 2017) Managing Director
5. Shri V. Sathyakumar (DIN : 06477636) Whole Time Director & Chief
Executive
6. Dr. Firdos T. Shroff (DIN : 01851777) Independent Director
7. Shri K. Madhava Kumar (DIN : 00791168) Director
Smt. Usha Sangwan (DIN: 02609263) stepped down as Director of the Company on June 01, 2016. Smt. Usha
Sangwan had been on the Board of the Company since November 25, 2013 in capacity of Chairman of the Board
Annual Report 2017
22
and Company. The Board of Directors would like to place on record sincere appreciation for the contribution
made by Smt. Usha Sangwan during her tenure on the Board.
Pursuant to the provisions of Section 161(1) of the Companies Act, 2013 read with article 131(3) of Articles of
Association of the Company and in accordance with the nomination letter ref no.:
LICHFL/CS/Nomination/2017-18, dated: May 2, 2017 received from LIC Housing Finance Limited, the Board of
Directors in its meeting dated: May 11, 2017 appointed Shri Hemant Bhargava (DIN: 01922717) as an Additional
Director and Chairman on the Board and the Company. Pursuant to the provisions of Section 161(1) of the
Companies Act, 2013, the terms of office of Shri Hemant Bhargava ends on ensuing Annual General Meeting.
A notice has been received from a member pursuant to Section 160(1) of the Companies Act, 2013, proposing
candidature of Shri Hemant Bhargava as Director & Chairman of the Company.
Smt. Sunita Sharma (DIN: 02949529) stepped down as Managing Director of the Company on April 11, 2017.
Smt. Sunita Sharma had been on the Board of the Company since November 18, 2013 in capacity of Managing
Director of the Company. The Board of Directors would like to place on record sincere appreciation for the
contribution received from Smt. Sunita Sharma during her tenure on the Board.
Pursuant to the provisions of Section 196, 197 and Schedule V of the Companies Act, 2013 read with the article
131(3) of Articles of Association of the Company and in accordance with the nomination letter ref no.:
LICHFL/CS/Nomination, Dated: April 17, 2017 received from LIC Housing Finance Limited, the Board of
Directors in its meeting dated: May 11, 2017 appointed Shri Vinay Sah (DIN: 02425847) as Managing Director
of the Company. A notice has been received from a member pursuant to Section 160(1) of the Companies Act,
2013, proposing candidature of Shri Vinay Sah as Managing Director of the Company.
In Compliance with the provisions of Section 152(6) of the Companies Act, 2013 read with the rules made
thereunder and Articles of Association of the Company at the Sixteenth Annual General Meeting of the
Company, Shri K. Madhava Kumar (DIN : 00791168) retires by rotation and being eligible, offers himself for
reappointment. Shri K. Madhava Kumar was appointed on the Board w.e.f. November 9, 2015 and designated
as Director of the Company.
The above appointment of Director(s) form part of the Notice of the Sixteenth Annual General Meeting and the
respective resolution is recommended for your approval. A brief resume of aforesaid Director(s) and other
information have been detailed in the Notice. Your Directors recommend their appointment as Director(s) of
the Company.
DETAILS OF BOARD MEETING
During the financial year 2016 - 17, 6 Meetings of the Board of Directors were held, details of which are as
follows:
Sr. No. Date of Board Meeting No. of Directors Attended the
Meeting
1. April 13, 2016 5
2. June 30, 2016 4
3. August 23, 2016 4
4. October 27, 2016 3
5. January 18, 2017 4
6. March 17, 2017 3
Details of the Directors on the Board, their attendance at Board Meeting during the financial year 2016 - 17 and
last Annual General Meeting are as follows:
23
Name of Board Member Designation No. of
Meetings Held
No. of
Meetings
Attended
Whether Last
AGM
Attended
Smt. Usha Sangwan Chairman 6 1 No
Smt. Sunita Sharma Managing Director 6 5 Yes
Shri V. Sathyakumar Whole Time
Director
6 6 Yes
Dr. Firdos T. Shroff Independent
Director
6 5 Yes
Shri K. Madhava Kumar Director 6 6 Yes
Note: Smt. Usha Sangwan, Chairman stepped down as Director of the Company w.e.f. June 01, 2016.
Smt. Sunita Sharma, Managing Director stepped down as Managing Director of the Company w.e.f. April 11, 2017.
DECLARATION BY INDEPENDENT DIRECTOR
Dr. Firdos T. Shroff (DIN: 01851777) is an Independent Director on the Board of the Company who was
appointed as an Independent Director for consecutive period of 5 (five) years effective from April 01, 2014 to
March 31, 2019. In opinion of the Board and as confirmed by the Director by furnishing a written representation,
Dr. Firdos T. Shroff fulfills the conditions specified in Section 149 and Schedule IV of the Companies Act, 2013
and rules made thereunder to continue with his status of an Independent Director.
MANAGERIAL REMUNERATION
The Company had five Directors on its Board including one Independent Director during the financial year
under review. Dr. Firdos T. Shroff being an Independent Director received only Director sitting fee for attending
Board and Committee meetings, as the case may be. Shri K. Madhava Kumar being a non-executive Director
received Director sitting fee for attending Board and Committee meetings, as the case may be. Smt. Usha
Sangwan, Chairman and Smt. Sunita Sharma, Managing Director of the Company, did not withdraw
remuneration from the Company, as per the terms & conditions of their appointment. Shri V. Sathyakumar
being Whole Time Director & Chief Executive withdrawn remuneration in terms of salary and perquisites from
the Company as set out in his letter of appointment.
A brief details of remuneration and Director Sitting Fee paid to Directors during the financial year 2016 – 17 are
as under:
Directors' Remuneration:
SR.
NO.
NAME OF MANAGERIAL
PERSONNEL DESIGNATION
REMUNERATION PAID
DURING THE YEAR (in Rs.)
1. Smt. Usha Sangwan (DIN : 02609263) Chairman & Director Nil
2. Smt. Sunita Sharma (DIN : 02949529) Managing Director Nil
3. Shri V. Sathyakumar (DIN : 06477636) Director & Chief
Executive 28,01,386
4. Dr. Firdos T Shroff (DIN : 01851777) Independent Director 25,000
5. Shri K. Madhava Kumar (DIN :
00791168) Director 40,000
1. Shri V. Sathyakumar was appointed as Director & Chief Executive of the Company w.e.f. 27.04.2015 on deputation from LIC of India. Remuneration
withdrawn by him comprises salary as per provisions contained in Section 17(1) of the Income Tax Act, 1961 and value of perquisites u/s 17(2) of the
Income Tax Act, 1961.
2. Smt. Usha Sangwan, Chairman and Smt. Sunita Sharma, Managing Director did not withdraw remuneration from the Company, as per terms &
conditions of their appointment.
3. Smt. Usha Sangwan, Chairman stepped down as Director & Chairman w.e.f. 01.06.2016 from the Board of the Company.
4. Smt. Sunita Sharma, Managing Director stepped down as Managing Director of the Company w.e.f. 11.04.2017.
5. Dr. Firdos T Shroff, being the Independent Director withdrawn Director sitting fee from the Company pursuant to the provisions of 197 of the Companies
Act, 2013 as approved by Board of Directors vide their resolution passed in Board Meeting held on 18.04.2012.
6. Shri K. Madhava Kumar was appointed as a Director on the Board of the Company w.e.f. 09.11.2015. Shri K. Madhava Kumar has withdrawn Director
Sitting Fee from the Company pursuant to provisions of Section 197 of the Companies Act, 2013 as approved by the Board of Directors vide their resolution
passed in Board Meeting held on 09.11.2015.
Annual Report 2017
24
Remuneration of other Key Managerial Personnel (KMP):
SR.
NO. NAME DESIGNATION
REMUNERATION PAID DURING
THE YEAR (in Rs.)
1. Shri Surendra Vyas Company Secretary 13,33,489
1. Shri Surendra Vyas was appointed as Company Secretary w.e.f. 23.07.2012 and he received remuneration equivalent to his cadre (Asst. Manager) in LIC
Housing Finance Limited, Holding Company. The above remuneration comprises salary as per provisions contained in Section 17(1) of the Income Tax
Act, 1961 and value of perquisites u/s 17(2) of the Income Tax Act. 1961.
2. The above salary comprises arrears of wage revision for financial year 2012-13, 2013-14, 2014-15 & 2015 – 16 as approved by the Board of Director vide
its meeting dated: 27.10.2016.
PRESENTATION OF FINANCIAL RESULTS
The financial results of the Company for the year ended March 31, 2017 has been prepared in compliance with
the provisions of Section 129, 134 and Schedule III of the Companies Act, 2013, read with the Companies
(Accounts) Rules, 2014 including any amendments or reenactments thereof.
AUDITORS
M/s. Shankarlal Jain & Associates LLP, Chartered Accountants (Firm Reg. No. 109901 W / W 100082), are the
Statutory Auditors of the Company. Pursuant to the provisions of Section 139 of the Companies Act, 2013 read
with the Companies (Audit & Auditors) Rules, 2014 M/s Shankarlal Jain & Associates LLP was appointed as
Statutory Auditors of the Company during Thirteenth Annual General Meeting for a period of three years
commencing from conclusion of Thirteenth Annual General Meeting till the conclusion of Sixteenth Annual
General Meeting of the Company. The term of M/s. Shankarlal Jain & Associates LLP in the office of Statutory
Auditors ends with conclusion of the ensuing Annual General Meeting.
M/s. Sarda & Pareek, Chartered Accountants (Firm Reg. No. 109262 W) has proposed its candidature to be
appointed as Statutory Auditors of the Company. In compliance with the provisions of Section 141(3)(g) of the
Companies Act, 2013 they have also confirmed in written representation that their appointment, if made, would
be within prescribed limits and they are not disqualified from being appointed as Auditors of the Company.
The Board of Directors recommends appointment of M/s. Sarda & Pareek, Chartered Accountants as Statutory
Auditors of the Company for the period of three years from conclusion of Sixteenth Annual General Meeting
till conclusion of Nineteenth Annual General Meeting subject to ratification of their appointment during each
Annual General Meeting by Shareholders.
In accordance with the provisions of Section 139, 141 and other applicable Sections of the Companies Act, 2013
read with the Companies (Audit and Auditors) Rules, 2014, M/s. Sarda & Pareek, Chartered Accountants are
eligible to be appointed as Statutory Auditors of the Company.
The aforesaid appointment of M/s. Sarda & Pareek, Chartered Accountants, requires approval from
shareholders at the ensuing Annual General Meeting and the matter and details relating to their appointment
as Statutory Auditors of the Company is set out in the Notice to convene Sixteenth Annual General Meeting of
the Company.
AUDITORS' REPORT
M/s. Shankarlal Jain & Associates LLP, Statutory Auditors of the Company has presented their audit report for
the financial year ended March 31, 2017, which forms part of this Annual Report. The Statutory Auditors have
expressed their view that the financial statements of the Company give the information as required by the Act
in the manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India.
25
AUDIT COMMITTEE
Though provisions of Section 177 of the Companies Act, 2013 and rules made thereunder are strictly not
applicable to the Company, the Company maintains an audit committee to review the internal and external
auditors report and internal control of the Company.
The Company has following members in its Audit Committee:
Smt. Sunita Sharma Chairman (From January, 2014 to April, 2017)
Shri Vinay Sah Chairman (From June, 2017)
Shri V. Sathyakumar Member (From August, 2015)
Shri K. Madhava Kumar Member (From March, 2016)
Shri Surendra Vyas, Company Secretary acts as Secretary of the Committee.
The Audit Committee possesses adequate powers and performs its supervisory functions to:
Review with management, statutory and internal audit procedure and their report on the management.
Overview of the Company’s financial reporting process and disclosure of its financial information to
ensure that the financial statements are correct, sufficient and credible.
Suggest management steps to be taken to enhance the financial control and protection from operational
and business risk.
Recommend the appointment and removal of the statutory auditors, fixation of the audit fee and also
approval for the payment of other services.
Review with the management, the annual financial statements before submission to the Board.
Review of Auditors’ Reports and actions taken by the management with respect to observations and
qualifications of the auditors.
EXTRACT OF ANNUAL RETURN
The details forming part of the extracts of Annual Return in Form MGT – 9, in accordance with Section 92(3) of
the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014, are set out
herewith as “Annexure – A” to this report.
PARTICULARS OF CONTRACTS / ARRANGEMENTS MADE WITH RELATED PARTIES
There have been no materially significant related party transactions with the Company’s Promoters, Directors,
the Management, their subsidiaries or relatives which may have potential conflict with the interests of the
Company at large. All material related party transactions that were entered into, if any, during the financial
year were on arm length basis and were in ordinary course of business. Your Directors draw attention of the
members to Note – 21.15 of notes forming part of the accounts to the financial statement which sets out related
party disclosure forming part of this Annual Report.
The Company follows a practice on dealing with the Related Party Transactions and necessary approval of the
Audit Committee and Board of Directors are taken wherever required in accordance with the policy and
applicable laws.
The Form AOC – 2 pursuant to Section 134(3)(h) of the Companies Act, 2013 read with the Rule 8(2) of the
Companies (Accounts) Rules, 2014 is set out as “Annexure – B” to this report.
CORPORATE SOCIAL RESPONSIBILITY
The Company covers under the criteria specified in Section 135(1) of the Companies Act, 2013 read with
Schedule VII of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules,
2014. The Company has a Corporate Social Responsibility Committee comprising of following member:
Annual Report 2017
26
Smt. Sunita Sharma Chairman (upto April 11, 2017)
Shri V. Sathyakumar Member
Dr. Firdos T. Shroff Member
The Company’s operation during the year was under stress and project at Bhubaneswar could achieve 4.16%
during the year resulting in low operational income during the year under review. The Company could earn
Profit Before Tax of Rs. 2.55 Lakh during the year. Expenditure towards CSR activities, had spent, could have
brought down profits of the Company or propelled losses in financials of the Company for the year under
review. Therefore the Company could not spend any amount towards Corporate Social Responsibility.
However in light of the future prospects, the Company is optimistic for smooth conduct of its operations in next
financial year and committed to spend requisite money towards Corporate Social Responsibility.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The management continuously reviews the internal control systems and procedures for the efficient conduct of
the Company’s business. The Company adheres to the prescribed guidelines with respect to the transactions,
financial reporting and ensures that all of its assets are safeguarded and protected against losses.
The Company's internal control systems are commensurate with the nature of its business and size and
complexity of its operations. The LIC Housing Finance Ltd, Holding Company of LICHFL Care Homes Ltd.,
conducts the internal audit on a regular basis and the Audit Committee actively reviews internal audit reports
and effectiveness of internal control systems. Internal Control Systems are implemented to safeguard the
Company’s assets from loss or damage, to keep constant check on the cost structure, to prevent revenue
leakages, to provide adequate financial and accounting controls and implement accounting standards.
RISK MANAGEMENT
Your Company recognizes that risk is an integral part of business and is committed to managing risk in a
proactive and efficient manner. Your Directors regularly checks on various risk that the organization faces such
as strategic, financial, credit, market, liquidity, security, property, IT, legal, regulatory, reputational and other
risks, identifies and assesses risk element and takes adequate measures to protect from and control the risk
associated with the venture.
The Company manages, monitors and reports on the principal risk and uncertainties that can impact its ability
to achieve its strategic objectives.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO
The disclosures to be made under sub-section (3)(m) of Section 134 of the Companies Act, 2013 read with the
Rule (8)(3) of the Companies (Accounts) Rules, 2014 by your Company are explained as under :-
(A) Conservation of Energy –
i) The steps taken or impact on conservation of energy –
The Company has always considered energy and natural resource conservation as a focus area and
has been consciously making efforts towards improving the energy performance year on year. Energy
efficiency improvement initiatives have been implemented across all the offices and projects by
undertaking various energy and resource conservation projects for Sustainable development.
The Company has replaced models of computers, printers and other equipment which were
consuming between 50 to 90 percent more energy than energy-efficient models. This has ensured
reduction in energy consumption and resultant saving in costs.
27
Electronics such as computers and printers are plugged out at the end of day or after office hours in
order to save energy as mere turning off or shutting down does not save energy completely.
Air conditioning equipment is cleaned and serviced on routine basis thereby saving energy and costs
and giving required cooling. After office hours only the required lights and air conditioning is used
thereby saving energy and minimizing energy wastage.
ii) The steps taken by the Company for utilizing alternate sources of energy –
The Company has installed solar street lights in common area and solar water heaters (in PH II project)
at its Bangalore Campus to encourage efficient use of solar energy which also helps to reduces power
consumption burden of resident allottees of Bangalore project. The Company is also in the process of
exploring use of other alternate source of energy which can be implemented to its existing and
upcoming projects. The Bangalore Campus also has state in art Sewage Treatment Plant which recycle
the waste water which is utilized for gardening at the Campus.
The project at Bhubaneswar has provision for Sewage Treatment Plant as well as Rain Water
Harvesting Plant for efficient utilization of water resources and minimum losses on account of water
consumption.
iii) The capital investment on energy conservation equipment during the year – None
(B) Technology Absorption –
i) The efforts made towards technology absorption – Not Applicable.
ii) The benefits derived like product improvement, cost reduction, product development or import
substitution – Not Applicable
iii) In case of imported technology (imported during the last three years reckoned from the beginning of
financial year) – Not Applicable
a) The details of technology imported – Not Applicable.
b) The year of import – Not Applicable
c) Whether the technology has been fully absorbed – Not Applicable
d) If not fully absorbed areas where absorption has not taken place and the reason thereof – Not
Applicable
iv) The expenditure incurred on Research and Development – Not Applicable.
(C) Foreign Exchange Earning and Outgo
There is no foreign exchange earnings or outgoing during the year under review.
RESPONSIBILITY STATEMENT PURSUANT TO SECTION 134(3)(c) OF THE COMPANIES ACT, 2013
Pursuant to the requirement of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, with
respect to Directors’ responsibility statement, it is hereby confirmed that:
1. in the preparation of the annual accounts for the year ended March 31, 2017, the applicable accounting
standards have been followed and no material departures have been made from the same.
Annual Report 2017
28
2. the Directors have selected such accounting policies and 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 the financial year and of the profit of the Company for the year.
3. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company
and for preventing and detecting fraud and other irregularities.
4. the Directors have prepared the annual accounts for the year ended March 31, 2017 on a going concern
basis.
5. the Directors has laid down internal financial controls to be followed by the Company and that such
internal financial control are adequate and were operating effectively.
6. the Directors have devised proper system to ensure compliance with the provisions of all applicable laws
and that such systems were adequate and operating effectively.
PARTICULARS OF EMPLOYEES
The disclosure, as required under Section 134(3) of the Companies Act, 2013 and the rules made thereunder, is
not applicable to the Company as none of the employee of the Company is drawing Rs. 5 Lakh per month or
Rs. 60 Lakh per annum as remuneration.
ACKNOWLEDGEMENT
The Directors place on record their appreciation for the advice, guidance and support given by LIC of India and
LIC Housing Finance Limited. The Directors also place on record their sincere thanks to the Company’s Bankers,
Members for their Patronage and Employees for their sincere efforts.
For and on Behalf of the Board of
LICHFL Care Homes Limited
Mumbai, June 27, 2017
Sd/-
CHAIRMAN
29
Annexure – A: Extract of Annual Return
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31.03.2017
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and
Administration) Rules, 2014]
REGISTRATION AND OTHER DETAILS:
CIN : U85310MH2001PLC133341
Date of Registration : 11-09-2001
Name of the Company : LICHFL Care Homes Limited
Category / Sub-Category of the Company : Public Limited Company
Address of the Registered Office and contact details : First Floor, East Wing, Industrial Assurance Building,
Churchgate, Mumbai – 400 020, Maharashtra.
Tel : +91 22 2287 5621 / 22
Web: www.lichflcarehomes.com
Whether listed company : No
Name, Address and Contact details of Registrar and
Transfer Agent, if any : N.A.
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-
SI.
No.
Name and Description of main
products / services
NIC Code of the Product/
service
% to total turnover of the
company
1. Development and Maintenance of
Assisted Living Community Center. 7010 100%
PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
SI.
No.
Name and Address of
The Company CIN/GLN
Holding/
Subsidiary/
Associate
% of
Shares
Held
Applicable
Section
1. LIC Housing Finance
Limited, L65922MH1989PLC052257 Holding 100% 2(46)
SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
Category of
Shareholder
No. of Shares held at the beginning of
the year
(As on 01-04-2016)
No. of Shares held at the end of the year
(As on 31-03-2017) %
Change
During
the year Dema
t Physical Total
%
Total
Shares
Dema
t Physical Total
% Total
Shares
A.
PROMOTERS
(1) Indian
a) Individual /
HUF - - - - - - - - -
b) Central
Govt. - - - - - - - - -
Annual Report 2017
30
c) State Govt. - - - - - - - - -
d) Bodies
Corp.* - 85,50,000 85,50,000 100 - 85,50,000 85,50,000 100 -
e) Bank / FI - - - - - - - - -
f) Any Other - - - - - - - - -
SUBTOTAL OF
A(1) - 85,50,000 85,50,000 100 - 85,50,000 85,50,000 100 -
(2) Foreign - - - - - - - - -
g) NRIs-
Individuals - - - - - - - - -
h) Other-
Individuals - - - - - - - - -
i) Body Corp. - - - - - - - - -
j) Bank / FI - - - - - - - - -
k) Any Other - - - - - - - - -
SUBTOTAL OF
A(2) - - - - - - - - -
TOTAL
SHAREHOLDI
NG OF
PROMOTER
(A) = (A)(1) +
(A)(2)
- 85,50,000 85,50,000 100 - 85,50,000 85,50,000 100 -
B. PUBLIC
SHAREHOLDI
NG
1. Institutional
a) Mutual
Funds - - - - - - - - -
b) Banks / FI - - - - - - - - -
c) Central
Govt. - - - - - - - - -
d) State
Govt(s) - - - - - - - - -
e) Venture
Capital
Funds
- - - - - - - - -
f) Insurance
Companies - - - - - - - - -
g) FIIs - - - - - - - - -
h) Foreign
Venture
Capital
- - - - - - - - -
i) Funds
Others
(Specify)
- - - - - - - - -
SUB-TOTAL
(B)(1) - - - - - - - - -
2. NON-
INSTITUTION
S
31
a) Bodies
Corp.
I. Indian - - - - - - - - -
II. Overseas - - - - - - - - -
b) Individuals
I. Individual
shareholder
s holding
nominal
share
capital upto
Rs. 1 Lakh
- - - - - - - - -
II. Individual
shareholder
s holding
nominal
share
capital in
excess of Rs.
1 Lakh
- - - - - - - - -
c) Others
(specify) - - - - - - - - -
SUB-TOTAL
(B)(2) - - - - - - - - -
TOTAL
PUBLIC
SHAREHOLDI
NG (B) = (B)(1)
+ (B)(2)
- - - - - - - - -
C. SHARES
HELD BY
CUSTODIAN
FOR GDRS &
ADRS
- - - - - - - - -
GRAND
TOTAL
(A)+(B)+(C)
- 85,50,000 85,50,000 100 - 85,50,000 85,50,000 100 -
*Includes six other nominee shareholders.
(ii) Shareholding of Promoters
SI.
No.
Shareholders
Name
Shareholding at the beginning of the
year
(As on 01-04-2016)
Shareholding at the end of the year
(As on 31-03-2017) %
change
in share
holding
during
the year
No. of
Shares
% of
total
Shares of
the
Compan
y
% of
Shares
Pledged /
encumber
ed to total
Shares
No. of
Shares
% of
total
Shares of
the
Compan
y
% of
Shares
Pledged /
encumber
ed to total
Shares
1.
LIC Housing
Finance Limited
and its nominees
85,50,000 100 - 85,50,000 100 - -
Annual Report 2017
32
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
SI.
No. Shareholder Name
Shareholding at the
beginning of the year
(As on 01-04-2016)
Date
Increase /
Decrease
in
Shareholdi
ng
Reason
for
change
Cumulative
Shareholding during
the year (As on 31-03-
2017)
No. of
Shares
% of total
Shares of
the
Company
No. of
Shares
% of total
Shares of
the
Company
1. LIC Housing
Finance Ltd. 85,50,000 100 - - - 85,50,000 100
Note: There is no change in the total shareholding of promoters between 01-04-2016 and 31-03-2017
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and
ADRs):
SI.
No.
For Each of the Top
10 Shareholders
Shareholding at the
beginning of the
year (As on 01-04-
2016) Date
Increase /
Decrease in
Shareholding
Reason
of
transfer
Cumulative
Shareholding during
the year
(As on 31-03-2017)
No. of
Shares
% of total
Shares of
the
Company
No. of
Shares
% of total
Shares of
the
Company
------------------- N.A. -------------------
(v) Shareholding of Directors and Key Managerial Personnel:
SI.
No.
Name of
Director(s)
Shareholding at the
beginning of the year (As
on 01-04-2016)
Date
Increase /
Decrease
in
sharehold
ing
Reaso
n
Cumulative Shareholding
during the year (As on 31-
03-2017)
No. of
Shares
% of total
Shares of
the
Company
No. of
Shares
% of total Shares
of the Company
A. DIRECTORS
1. Smt. Sunita
Sharma* 100 0.0001 - - - 100 0.0001
2. Shri V.
Sathyakumar* - -
23.08.201
6 100
Trans
fer 100 0.0001
*Shares are held by Smt. Sunita Sharma and Shri V. Sathyakumar in capacity of nominees of LIC Housing Finance Limited.
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans
excluding deposits
Unsecured
Loans Deposits
Total
Indebtedness
Indebtedness at the beginning of
the financial year
I. Principal Amount
------------------- NIL ------------------- II. Interest due but not paid
III. Interest accrued but not due
Total (i+ii+iii)
33
Change in Indebtedness during
the financial year
Addition
------------------- NIL ------------------- Reduction
Net Change
Indebtedness at the end of the
financial year
I. Principal Amount
------------------- NIL ------------------- II. Interest due but not paid
III. Interest accrued but not due
Total (i+ii+iii)
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
SI. No. Particulars of Remuneration
Name of MD/WTD/Manager Total Amount
(in Rs. ) Smt. Sunita Sharma
(MD)
Shri V. Sathyakumar
(WTD)
1.
Gross salary
(a) Salary as per provisions contained
in section 17(1) of the Income-tax Act,
1961
- 22,14,475 22,14,475
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961 - 5,68,911 5,68,911
(c) Profits in lieu of salary under
section 17(3) Income-tax Act, 1961 - - -
2. Stock Option - - -
3. Sweat Equity - - -
4.
Commission -
- as % of profit - - -
- others, specify - - -
5. Others, please specify - - -
Total (A) - 28,01,386 28,01,386
B. Remuneration to other directors:
SI. No. Particulars of Remuneration
Name of Directors Total
Amount (in
Rs.) Smt. Usha
Sangwan (NED)
Dr. Firdos T.
Shroff (ID)
Shri K. Madhava
Kumar (NED)
1. Independent Director(s)
Fee for attending board /
committee meetings - 25,000 40,000 65,000
Commission - - - -
Others, please specify - - - -
Total (1) - 25,000 40,000 65,000
2. Other Non-Executive
Director(s)
Fee for attending board /
committee meetings - - -
-
Commission - - - -
Others, please specify - - - -
Total (2) - - - -
Total (B) = (1+2) - 25,000 40,000 65,000
Annual Report 2017
34
Total Managerial
Remuneration* 26,15,195
Overall Ceiling as per the
Act** 42,00,000
MD – MANAGING DIRECTOR, WTD – WHOLE TIME DIRECTOR, NED – NON-EXECUTIVE DIRECTOR, ID – INDEPENDENT DIRECTOR
* Total remuneration to Managing Director, Whole Time Director and Other Directors (being the total of A and B)
** Overall ceiling limit of remuneration has been taken as prescribed under Section II(A)(ii) of Part II of Schedule V of Companies Act, 2013.
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD:
SN PARTICULARS OF REMUNERATION
KEY MANAGERIAL PERSONNEL
Shri Surendra Vyas
(CS) CFO
Total
Amount
(in Rs. )
1
Gross salary
(a) Salary as per provisions contained in section
17(1) of the Income-tax Act, 1961* 11,39,533 - 11,39,533
(b) Value of perquisites u/s 17(2) Income-tax Act,
1961 1,93,956 - 1,93,956
(c) Profits in lieu of salary under section 17(3)
Income-tax Act, 1961 - - -
2 Stock Option - - -
3 Sweat Equity - - -
4 Commission
- as % of profit - - -
others, specify… - - -
5 Others, please specify - - -
Total 13,33,489 - 13,33,489
* Salary includes arrears of wage revision of FY 2012-13, 2013-14, 2014-15 & 2015-16 as approved by the Board of Director vide its meeting dated: October 27,
2016.
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type
Section of the
Companies
Act
Brief Description
Details of Penalty /
Punishment /
Compounding fee
imposed
Authority [RD /
NCLT / COURT]
Appeals made, if
any (give
details)
A. Company
Penalty
------------------- NIL ------------------- Punishment
Compounding
B. Directors
Penalty
------------------- NIL ------------------- Punishment
Compounding
C. Other officers in default
Penalty
------------------- NIL ------------------- Punishment
Compounding
35
Annexure – B: Particulars of Contracts / Arrangements
made with Related Parties
FORM AOC – 2
(PURSUANT TO SECTION 34(3)(H) OF THE COMPANIES ACT, 2013 READ WITH RULE 8(2) OF THE COMPANIES
(ACCOUNTS) RULES, 2014)
Form for disclosure of particulars of contracts / arrangements entered into by the Company with related parties referred to
in Section 188(1) of the Companies Act, 2013 including certain arm length transactions under third proviso thereto.
1. Details of contracts or arrangements or transactions not at arm length basis :
a) Name(s) of the related party and nature of relationship
NIL
b) Nature of contracts / arrangements / transactions
c) Duration of the contracts / arrangements / transactions
d) Salient terms of the contracts or arrangements or transactions including the
value, if any
e) Justification for entering into such contracts or arrangements or transactions
f) Date(s) of approval by the Board
g) Amount paid as advances, if any
h) Date on which the special resolution was passed
i) Amount paid as advances, if any
j) Date on which (a) the special resolution was passed in general meeting as
required under first proviso to Section 188 of the Companies Act, 2013
2. Details of material contracts or arrangements or transactions at arm’s length basis :
1 a) Name(s) of the related party and nature of relationship LIC of India
b) Nature of contracts / arrangements / transactions
Office rent of Registered
& Corporate Office at
Mumbai
c) Duration of the contracts or arrangements or transactions Ongoing
d) Salient terms of the contracts or arrangements or transactions including
value, if any
N.A.
e) Date(s) of approval by the Board, if any April 8, 2017
f) Amount paid as advances, if any Nil
LIC OF INDIA
1. Payment made towards office rent of Registered & Corporate office at Mumbai amounting to Rs. 9.90 Lakhs during the FY 2016-17.
For and on Behalf of the Board of
LICHFL Care Homes Limited
Mumbai, June 27, 2017
Sd/-
CHAIRMAN
36
Auditors’ Report
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LICHFL CARE HOMES LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of LICHFL CARE HOMES LIMITED (“the
Company”), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the significant accounting policies and other
explanatory information as required for fair present of financial statements.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,
2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and
fair view of the financial position, financial performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of
the assets of the Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We
have taken into account the provisions of the Act, the accounting and auditing standards and matters which
are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the
Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the
financial statements that give a true and fair view in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and
the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.
37
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone financial statements give the information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs
of the Company as at 31st March 2017, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by Section 143 (3) of the Act, we report that:
A. We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
B. In our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books.
C. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report
are in agreement with the books of account.
D. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
E. On the basis of the written representations received from the directors as on 31st March, 2017 taken on
record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being
appointed as a director in terms of Section 164 (2) of the Act.
F. With respect to the adequacy of the internal financial controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our separate Report in Annexure to Auditors’ Report.
G. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial
statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for
material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education
and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in its financial statements as to holding as well as
dealing in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016
and these are in accordance with the books of accounts maintained by the Company.
For SHANKARLAL JAIN & ASSOCIATES LLP
Chartered Accountants
FRN. 109901 W / W100082
Place: Mumbai
Date: April 8, 2017
S. L. Agrawal
(Partner)
Membership No. 72184
Annual Report 2017
38
LIC CARE HOMES LIMITED
FOR THE YEAR ENDED 31ST MARCH, 2017
ANNEXURE TO AUDITORS REPORT
(Refer to in paragraph 3 of our Report of even date)
1. a) The company has maintained proper records showing full particulars including quantitative details
and situation of fixed assets.
b) The fixed assets of the company have been physically verified during the year by the management and
no material discrepancies between the book records and the physical inventory have been noticed. The
company has not disposed off any substantial part of fixed assets during the year.
c) The title deeds of immovable properties held with the Company are in the name of the Company.
2. The company has no inventories during the year. Hence relevant clause is not applicable to the company.
Various building materials lying at project sites are on account of contractor for which confirmation has
been obtained.
3. As per the information and explanations given to us, the company has not granted any loans, Secured or
unsecured to companies, Firm or other Parties covered in the register maintained under Section 189 of the
Companies Act, 2013.
4. In our opinion and according to the information and explanation given to us there is adequate internal
financial control system commensurate with the size of the company and nature of its business with regard
to purchases of fixed assets, goods/services and sale of goods/services. During the course of our audit, we
have not observed any continuing failure to correct the major weakness in the internal financial control
system.
5. As per the information and explanations given to us, the company has not accepted deposits, therefore the
directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant
provisions of the Companies Act and the rules framed there under are not applicable.
6. The Central government has not prescribed the maintenance of cost records under section 148 (1) of the
Companies Act & as informed to us, the same has also not been maintained.
7. a) According to the information and explanation given to us and based on the books and records examined
by us the Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and other statutory dues,
wherever applicable, have been generally deposited regularly during the year with appropriate
authorities. There are no outstanding statutory dues as on 31st March, 2017 for a period of more than six
months from the date they become payable.
b) According to the information and explanation given to us and based on the books and records examined
by us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty,
cess and other statutory dues, wherever applicable, which have not been deposited on account of any
dispute.
39
c) The Company does not have any amount required to be transferred to investor education and protection
fund in accordance with the relevant provisions of the Companies Act, 2013 and rules made there under
has been transferred to such fund within time.
8. As there is no term loan taken from bank or institutions. Hence there is no question arise for default in
repayment of such loans.
9. As per the information and explanation given to us the company has not given any given any guarantee
for loans taken by others from bank or financial institutions, the terms and conditions whereof are
prejudicial to the interest of the company;
10. The company has not taken any term loan nor raised money through public offer. Hence relevant para is
not applicable.
11. According to the information and explanation given to us, no fraud on or by the company has been noticed
or reported during the year.
12. The Company has paid managerial remuneration in accordance with the provisions of Section 197 read
with Schedule V to the Companies Act, 2013.
13. There are not material related party transactions has been noticed during the year, necessary disclosures of
all transactions with related parties are in Compliance with Section 177 and 188 of the Companies Act, 2013
and details of the same have been disclosed in the annexed Financial Statements as required by the
applicable accounting standards.
14. The Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year, hence the relevant para is not applicable.
15. The Company has not entered into any non-cash transaction with Directors or persons connected with him
during the year.
16. The Company does not require to register under 45-IA of the Reserve Bank of India Act, 1934.
For SHANKARLAL JAIN & ASSOCIATES LLP
Chartered Accountants
Firm Reg. No. 109901W / W100082
Place: Mumbai
Dated: April 8, 2017
(S. L. AGRAWAL)
PARTNER
Membership No.72184
Annual Report 2017
40
ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE FINANCIAL
STATEMENTS OF.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (“the Act”)
We have audited the Internal Financial Controls over financial reporting of (“the Company”) as of March 31,
2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based
on the criteria established by the Company considering the size of company and essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (“the Guidance Note”). These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s
policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial information, as required
under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by
ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued
by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting includes obtaining an understanding of internal
financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company's internal financial control
over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and
41
expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the
financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error or
fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over
financial reporting and such internal financial controls were operating effectively as at March 31, 2017, based
on the assessment of essential components of internal controls over financial reporting stated in the Guidance
Note carried out by the Company and representation to that effect is made available to us by the Company.
For SHANKARLAL JAIN & ASSOCIATES LLP
Chartered Accountants
Firm Reg. No. 109901W / W100082
Place: Mumbai
Dated: April 8, 2017
(S. L. AGRAWAL)
PARTNER
Membership No.72184
Annual Report 2017
42
Balance Sheet As at 31st March, 2017
(Pursuant to Section 129 and Part I of Schedule III of Companies Act, 2013)
(Amount in Rs.)
PARTICULARS NOTE As at 31.03.2017 As at 31.03.2016
I EQUITY AND LIABILITES
i Shareholders’ Funds
Share Capital 1 8,55,00,000 8,55,00,000
Reserves & Surplus 2 19,84,26,629 19,22,30,309
Sub-Total 28,39,26,629 27,77,30,309
ii Non – Current Liabilities
Other Long-Term Liabilities 3 8,72,47,146 8,78,29,719
Long Term Provision 4 14,13,552 -
Sub-Total 8,86,60,698 8,78,29,719
iii Current Liabilities
Other Current Liabilities 5 8,27,03,871 11,47,84,396
Short-Term Provisions 6 21,21,733 53,81,352
Sub-total 8,48,25,605 12,01,65,748
TOTAL 45,74,12,933 48,57,25,776
II ASSETS
i Non – Current Assets
Fixed Assets
a) Tangible Assets 7 9,80,12,416 9,90,57,360
b) Capital Work-In-Process 7 56,78,431 24,54,261
Long-Term Loans and Advances 8 5,79,12,262 79,39,135
Sub-Total 16,16,03,109 10,94,50,757
ii Current Assets
Trade Receivables 9 1,26,10,000 1,27,31,850
Cash and Cash Equivalents 10 25,29,23,232 32,84,44,713
Short-Term Loans and Advances 11 2,16,85,885 2,49,11,153
Other Current Assets 12 85,90,707 1,01,87,303
Sub-Total 29,58,09,824 37,62,75,020
TOTAL 45,74,12,933 48,57,25,776
See accompanying notes to the financial statements 20-21
The notes referred to above and the notes thereon form an integral part of the Financial Statements.
As per our report of even date For and on behalf of the Board of
For Shankarlal Jain & Associates LLP LICHFL CARE HOMES LIMITED
Chartered Accountants
Firm Reg. No. 109901 W/W 100082
Sd/- Sd/- Sd/- Sd/-
(S. L. Agrawal) Sunita Sharma V. Sathyakumar Surendra Vyas
Partner Managing Director Director & Chief Executive Company Secretary
M.No. 72184
Place : Mumbai
Date: April 8, 2017
43
Statement of Profit & Loss for the year ended 31st March, 2017
(Pursuant to Section 129 and Part II of Sechdule III of the Companies Act, 2013)
(Figures in Rs.)
PARTICULARS NOTE Year Ended
31.03.2017
Year Ended
31.03.2016
I Revenue From Operations 13 3,33,69,440 -
II Other Income 14 2,07,93,159 2,82,66,146
III Total Revenue (I + II) 5,41,62,599 2,82,66,146
IV Less: Expenses
Construction/Project Expenses 15 3,28,92,034 20,34,594
Change In Inventory Of Finished Goods, Work-In-
Progress & Stock-In-Trade 16 - -
Employee Benefits Expenses 17 1,59,24,076 1,77,54,175
Depreciation & Amortisation Expenses 7 11,02,450 12,19,051
Administrative & Other Expenses 18 39,88,922 44,29,191
Total Expenses 5,39,07,482 2,54,37,011
V Profit Before Tax (III – IV) 2,55,117 28,29,135
VI Tax Expenses :
Provision For Current Tax 8,30,000 13,00,000
Excess/(Short) Provision Of Income Tax For Earlier
Years (88,25,722) -
Provisions for Deferred Tax - -
Total Tax Expense (79,95,722) 13,00,000
VII Profit After Tax Carried To Balance Sheet (IX-X) 82,50,839 15,29,135
VIII Earning Per Equity Share
(1) Basic 0.97 0.18
(2) Diluted 0.97 0.18
See accompanying notes to the financial statements 20-21
The notes referred to above and the notes thereon form an integral part of the Financial Statements.
As per our report of even date For and on behalf of the Board of
For Shankarlal Jain & Associates LLP LICHFL CARE HOMES LIMITED
Chartered Accountants
Firm Reg. No. 109901 W/W 100082
Sd/- Sd/- Sd/- Sd/-
(S. L. Agrawal) Sunita Sharma V. Sathyakumar Surendra Vyas
Partner Managing Director Director & Chief Executive Company Secretary
M.No. 72184
Place : Mumbai
Date: April 8, 2017
Annual Report 2017
44
Cash Flow Statement for the year ended 31st March, 2017
(Figures in Rs.)
Particulars As on 31st March, 2017 As on 31st March, 2016
A CASH FLOW FROM OPERATING
ACTIVITIES
NET PROFIT/(LOSS) BEFORE TAX 2,55,117 28,29,135
Add/(Less): Adjustment for
Depreciation 11,02,450 12,19,051
Preliminary Expenses w/off - 1,89,585
Interest on Fixed Deposits (1,93,44,119) (2,54,07,613)
Profit on sale of Fixed Assets - -
Interest on Income Tax Refund (1,83,481) -
Value of Opening WIP Charged to P&L A/c - -
(1,84,25,150) (2,39,98,977)
Operating Profit/(Loss) Before Working
Capital Changes (1,81,70,033) (2,11,69,842)
Add/(Less): Adjustment for
(Increase)/Decrease in Interest Accrued on
Deposit 15,96,596 (21,982)
(Increase)/Decrease in Loans & Advances –
Short Term 1,85,13,916 (25,68,561)
(Increase)/Decrease in Loans & Advances –
Long Term (4,99,73,127) -
(Increase)/Decrease in Trade Receivables 1,21,850 22,14,210
(Increase)/Decrease in Current Liabilities &
Provisions (4,32,74,036) (7,30,14,800) (1,11,07,741) (1,14,84,073)
Cash Flow From Operating Activities Before
Tax (9,11,84,834) (3,26,53,915)
Tax Paid – Advance Tax - -
NET CASH FLOW FROM OPERATING
ACTIVITIES (A) (9,11,84,834) (3,26,53,915)
B CASH FLOW FROM INVESTING
ACTIVITIES
Interest on Fixed Deposits 1,93,44,119 2,54,07,613
Interest on Income Tax Refund 1,83,481 -
Investment in Capital Work in Progress (32,24,170) -
Additions to Fixed Assets (57,505) (29,900)
Sale of Fixed Assets - -
Sale of Investment - -
Net amount received from Fixed Deposits 7,99,85,023 9,62,30,948 (75,73,694) 1,78,04,019
NET CASH FLOW FROM INVESTING
ACTIVITIES (B) 9,62,30,948 1,78,04,019
C CASH FLOW FROM FINANCING
ACTIVITIES
Decrease in Other Long Term Liabilities (5,82,573) -
Dividend Paid - -
Share Issue Expenditure Paid - (5,82,573) - -
NET CASH FLOW FROM FINANCING
ACTIVITIES (C) (5,82,573) -
45
NET INCREASE/(DECREASE IN CASH &
CASH EQUIVALENTS (A+B+C)
44,63,541 (1,48,49,896)
CASH & CASH EQUIVALENTS AT THE
BEGINNING OF THE YEAR 31,75,912 1,80,25,808
CASH & CASH EQUIVALENTS AT THE
END OF THE YEAR 76,39,454 31,75,912
Notes:-
1. Cash & Cash Equivalents includes Physical Cash and Balance in Current Accounts with Banks.
2. The Cash Flow Statement has been prepared under the ‘Indirect Method’ as set out in the Accounting Standard
3 (AS 3) on Cash Flow Statements issued by the Institute of Chartered Accountants of India.
The notes referred to above and the notes thereon form an integral part of the Financial Statements.
As per our report of even date For and on behalf of the Board of
For Shankarlal Jain & Associates LLP LICHFL CARE HOMES LIMITED
Chartered Accountants
Firm Reg. No. 109901 W/W 100082
Sd/- Sd/- Sd/- Sd/-
(S. L. Agrawal) Sunita Sharma V. Sathyakumar Surendra Vyas
Partner Managing Director Director & Chief Executive Company Secretary
M.No. 72184
Place : Mumbai
Date: April 8, 2017
Annual Report 2017
46
Notes forming parts of Accounts
NOTE 1: SHARE CAPITAL
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
Authorised
2,50,00,000 (P.Y. 2,50,00,000) Equity Shares of Rs. 10/- each. 25,00,00,000 25,00,00,000
Issued and Subscribed
85,50,000 Equity Shares (P.Y. 85,50,000) of Rs. 10 each fully paid up. 8,55,00,000 8,55,00,000
Paid Up
85,50,000 Equity Shares (P.Y. 85,50,000) of Rs. 10 each fully paid up. 8,55,00,000 8,55,00,000
1) The Company has one class of Equity Shares having Par Value
of Rs. 10 each
2) 85,50,000 Equity Shares are carrying voting rights of 1 share 1
vote
3) Following Share holders holding mare than 5% Equity Shares :
i) LIC Housing Finance Ltd. held 85,49,400 Shares of Rs. 10 each.
Total 8,55,00,000 8,55,00,000
NOTE 2: RESERVES & SURPLUS
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
General Reserve
Opening Balance 50,00,000 50,00,000
Add : Amount Transferred from Statement of Profit & Loss - -
50,00,000 50,00,000
Credit/(Debit) Balance in Statement of Profit & Loss
Opening Balance 18,72,30,309 18,57,01,174
Add : Amount Transferred from Statement of Profit & Loss 82,50,839 15,29,135
19,54,81,148 18,72,30,309
Less: Amount Transferred to General Reserve - -
Less: Proposed Dividend 17,10,000 -
Less: Tax on Proposed Dividend 3,44,518 -
19,34,26,629 18,72,30,309
Total 19,84,26,629 19,22,30,309
47
NOTE 3: OTHER LONG-TERM LIABILITIES
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
Deposits from Allottees – Bangalore Phase I 7,52,87,000 7,52,87,000
Maintenance Fund – Bangalore 1,19,60,146 1,25,42,719
Total 8,72,47,146 8,78,29,719
NOTE 4: LONG-TERM PROVISIONS
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
Provision for Employee Benefits (Refer Note No. 21.13) 14,13,552 -
Total 14,13,552 -
NOTE 5: OTHER CURRENT LIABILITIES
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
Advance Received from Customers 7,99,06,560 11,26,55,044
Security Deposit / Retention from Customers / Contractors 20,75,501 13,88,101
Other outstanding liabilities 7,10,885 7,30,373
Duties & taxes payable 10,925 10,878
Total 8,27,03,871 11,47,84,396
NOTE 6: SHORT-TERM PROVISIONS
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2017
Proposed Dividend (Rs. 0.20 per Share) 17,10,000 -
Tax on Proposed Dividend 3,44,518 -
Provision for Taxation - 53,81,352
(Net of Advance Tax & TDS of Rs. 22,17,457/- (P.Y. Rs. 1,61,18,648/- ))
Provision for Employee Benefits (Refer Note No. 21.13) 67,215 -
Total 21,21,733 53,81,352
Annual Report 2017
48
NOTE 7: TANGIBLE FIXED ASSETS
(Amount Rs. in lakh)
Particulars
Useful
Life of
Assets
(in yrs)
Rate of
Dep. (%)
Gross Block (At cost) Depreciation / Amortization Net
Block
As at 01.04.2016
Addition
for the
year
Deduction
for the
year
As at 31.03.2017
Upto
01.04.
2016
For
the
year
Writte
n back
during
the
year
Upto
31.03.
2016
As at
31.03.
2016
As at
31.03.
2015
Freehold Land
(Bangalore)* - - 88.28 - - 88.28 - - - - 88.28 88.28
Freehold Land at
Jaipur* - - 449.14 - - 449.14 - - - - 449.14 449.14
Leasehold
Improvement 10 9.50 3.20 - - 3.20 2.76 0.28 - 3.04 0.16 0.44
Building 60 1.58 530.38 - - 530.38 85.21 8.39 - 93.60 436.77 445.17
Electrical
Installation 10 9.50 8.41 - - 8.41 7.87 0.12 - 7.99 0.42 0.54
Generator 15 6.33 3.41 - - 3.41 2.08 0.22 - 2.29 1.12 1.33
Computers 3 31.67 3.56 0.58 - 4.14 2.89 0.54 - 3.43 0.71 0.67
Office Equipment 5 19.00 3.58 - - 3.58 1.73 0.51 - 2.24 1.33 1.84
Furniture & Fixtures 10 9.50 10.85 - - 10.85 7.68 0.98 - 8.65 2.19 3.17
Vehicle
(Ambulance) 8 11.88 0.13 - - 0.13 0.12 0.00 - 0.12 0.01 0.01
Total 1,100.93 0.58 - 1,101.51 1103.60 11.02 - 121.38 980.12 990.57
Previous Year 1,100.64 0.30 - 1100.93 98.16 12.19 - 110.36 990.57 1,002.47
JAIPUR
Preoperative
Expenditures
24.54 23.44 - 47.98 - - - - 47.98 24.54
VASIND
Preoperative
Expenditures
- 8.80 - 8.80 - - - - 8.80 -
Total 24.54 32.24 - 56.78 - - - - 56.78 24.54
* Change of Land Use (CLU) of land at Jaipur has been converted from Agriculture to Non-Agriculture land vide letter dated: 21-12-2016 of Jaipur
Development Authority.
* Various revenue expenditures incurred in respect of directly related to the projects have been capitalised as pre-operative expenditure of the project.
NOTE 8: LONG-TERM LOANS AND ADVANCES
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
Sundry Deposits 9,11,532 9,11,532
Deposit towards development of Vasind Project (Refer Note No.:
21.10(D)) 5,00,00,000 -
Recovery due from Bangalore Allottees Association 70,00,730 70,27,603
(considered good, refer Note No.: 21.12(a))
Total 5,79,12,262 79,39,135
49
NOTE 9: TRADE RECEIVABLES : (UNSECURED & CONSIDERED GOOD)
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
Booking Amount receivable from Customers (Less than six months)
- -
Booking Amount receivable from Customers (More than six months) 1,26,10,000 1,27,31,850
Total 1,26,10,000 1,27,31,850
Booking amount receivable Includes outstanding amount of more than three years of Rs. 72,70,000/-, however considered good, refer Note 21.11(I)(f).
NOTE 10: CASH AND CASH EQUIVALENTS
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
Cash in Hand 3,974 7,741
Balance in Current Account with Schedule Banks 76,35,480 31,68,171
Short term Deposits with Schedule Banks 24,52,83,778 32,52,68,801
(Pledge deposit of Rs. 65,71,146/- (P.Y. Rs. 60,93,587/-) against bank
guarantee)
Total 25,29,23,232 32,84,44,713
NOTE 11: SHORT – TERM LOANS AND ADVANCES
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
Advances Recoverable in Cash or in Kind
Advance payment of taxes and tax deducted at source 13,87,457 -
(Net of the provision of Rs. 11,00,000/-)
Other advances
Unsecured : (Considered Good)
Material Advance to Contractor - Bhubaneswar 2,00,56,203 2,44,82,328
Other Advance to Contractor - Bhubaneswar - 2,82,815
Other Advances 2,42,225 1,46,010
Total 2,16,85,885 2,49,11,153
NOTE 12: OTHER CURRENT ASSETS
(Amount in Rs.)
Particulars As at 31.03.2017 As at 31.03.2016
Interest accrued on bank deposits 84,09,674 1,00,00,554
Prepaid expenses 1,81,033 1,86,749
Total 85,90,707 1,01,87,303
Annual Report 2017
50
NOTE 13: REVENUE FROM OPERATIONS
(Amount in Rs.)
Particulars For the Period
31.03.2017
For the Period
31.03.2016
Revenue from Bhubaneswar Project 3,33,69,440 -
Total 3,33,69,440 -
NOTE 14: OTHER INCOME
(Amount in Rs.)
Particulars For the Period
31.03.2017
For the Period
31.03.2016
Interest on fixed deposits
- At Bhubaneswar (TDS Rs. 9,25,797/- [PY Rs. 10,41,149/-]) 92,57,974 1,04,11,492
- At Head Office (TDS Rs. 10,08,615/- [PY Rs. 1,49,961/-]) 1,00,86,145 1,49,96,121
Interest received on income tax refund 1,83,481 -
Administrative charges for transfer of occupancy rights 9,02,739 24,01,907
Other income 3,62,820 4,56,627
Total 2,07,93,159 2,82,66,146
NOTE 15: CONSTRUCTION / PROJECT EXPENSES
(Amount in Rs.)
Particulars For the Period
31.03.2017
For the Period
31.03.2016
A) Contract Cost
Contract Cost - Bhubaneswar Project 2,89,25,733 -
2,89,25,733 -
B) Site Establishment Expenses
Bhubaneswar Project
Salary & Allowances (including contribution to fund of Rs.
3,08,336/- (PY Rs. 1,33,152)) 27,65,031 12,51,656
Advertisement 6,95,548 56,835
Travelling Expenses 1,17,666 45,875
Professional & Legal Expenses 50,458 52,509
Other Expenses 3,37,598 3,35,359
39,66,301 17,42,234
Bangalore Project
Professional Expenses - 2,77,388
Other Expenses - 14,972
- 2,92,360
39,66,301 20,34,594
Total 3,28,92,034 20,34,594
51
NOTE 16: CHANGES IN INVENTORIES OF FINISHED GOODS, WORK – IN – PROGRESS & STOCK –
IN – TRADE
(Amount in Rs.)
Particulars For the Period
31.03.2017
For the Period
31.03.2016
Opening Stock - -
Less : Transferred to Projects - -
Total - -
NOTE 17: EMPLOYEE BENEFIT EXPENSES
(Amount in Rs.)
Particulars For the Period
31.03.2017
For the Period
31.03.2016
Salary & Wages* 1,12,76,820 1,39,47,792
Contribution to PF & Other Funds* 26,74,485 20,92,210
Staff Welfare Expenses 16,84,171 14,36,873
(Including tax on perquisites of Rs. 5,03,236/- PY Rs. 4,60,071/- )
Rent of Employees Hired Premises 2,88,600 2,77,300
Total 1,59,24,076 1,77,54,175
* (Excluding salary and contributions to funds apportioned to respective Project Rs. 27,65,031/- (PY Rs. 12,51,656/-)
* (Salary include payment of Rs. 11,49,022/- toward arrears of wage revision of LICHFL CH employees as approved by the Board of Directors vide meeting dated : October 27, 2016)
* Contribution to retirement funds includes amount of Rs. 14,13,552/- towards provision for retirement benefits of LICHFL CH employees relating to prior period pursuant to AS -15.
NOTE 18: ADMINISTRATIVE & OTHER EXPENSES
(Amount in Rs.)
Particulars For the Period
31.03.2017
For the Period
31.03.2016
Advertisement Expenses 2,880 -
Travelling & Conveyance Expenses 7,57,123 7,29,126
Electricity Expenses 1,28,910 1,61,338
Legal & Professional Fees 2,94,106 8,51,552
Rent, Rate and Taxes 9,90,257 9,83,202
Repair & Maintenance 5,40,165 1,85,504
Telephone Expenses 1,69,114 1,70,072
Payment to Auditors :
1) Audit Fees 80,500 80,150
2) Income Tax & Other Matters 28,875 34,653
Directors Fee (Sitting Fee) 65,000 35,000
Board & AGM Meeting Expenses 27,615 31,801
Motor Car Expenses 1,92,455 1,84,976
Director & Officers Liability Insurance 2,23,758 2,27,430
Service Tax Paid (on Reverse Charge basis) 16,715 1,21,476
Printing & Stationary 88,384 69,318
Sundry Balances Written Off - 25,355
Miscellaneous Expenses 3,83,065 3,48,654
Preliminary Expenses Written Off - 1,89,585
Total 39,88,922 44,29,191
Annual Report 2017
52
NOTE 20
SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS FOR THE YEAR
ENDED 31.03.2017
20.1. System of Accounting
The financial statements are prepared under the historical cost convention on accrual basis, in
accordance with Generally Accepted Accounting Principles in India. The financial statements comply
in all material aspects with the Accounting Standards specified under Section 133 of the Companies
Act, 2013 (“the Act”) read with the Rule 7 of the Companies (Accounting Standard) Rules, 2014, the
relevant provisions of the Companies Act, 2013 (to the extent notified) as amended, modified or
reenacted.
Accounting policies not specifically referred to otherwise are consistently with generally accepted
accounting principles followed by the Company.
20.2. Use of Estimates
The preparation of the financial statements in conformity with GAAP requires the Management to
make estimates and assumptions that affect the reported balances of assets and liabilities and
disclosures relating to contingent assets and liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. The Management believes that the
estimates used in preparation of the financial statements are prudent and reasonable. Future results
could differ from these estimates.
20.3. Revenue Recognition
Revenue from Operations
Revenue is recognized based on nature of activity when consideration can be reasonably measured and
there exists reasonable certainty of its recovery.
a) The Company is following the “Percentage of Completion Method” of accounting. As per this method,
revenue from sale of properties is recognized in Statement of Profit & Loss in proportion to the actual
cost incurred as against the total estimated cost of projects under execution with the Company on
transfer of significant risk and rewards to the buyer. Up to 31st March, 2012 revenue was recognized
only if the actual project cost incurred is 20% or more of the total estimated project cost.
b) Effective from 1st April, 2012, in accordance with the “Guidance Note on Accounting for Real Estate
Transactions (Revised 2012)” (Guidance Note), all projects commencing on or after the said date or
projects which have already commenced, but where the revenue is recognized for the first time on or
after the above date, construction revenue on such projects have been recognized on percentage of
completion method provided the following thresholds have been met:
o All critical approvals necessary for the commencement have been obtained;
o The expenditure incurred on construction and development costs is not less than 25 per cent of
the total estimated construction and development costs;
53
o At least 25 percent of the saleable project area is secured by contracts or agreements with buyers;
and
o At least 10 percent of the agreement value is realized at the reporting date in respect of such
contracts and it is reasonable to expect that the parties to such contracts will comply with the
payment terms as defined in the contracts.
c) Determination of revenues under the percentage of completion method necessarily involves making
estimates, some of which are of a technical nature, concerning, where relevant, the percentages of
completion, costs to completion, the expected revenues from the project or activity and the foreseeable
losses to completion. Estimates of project income, as well as project costs, are reviewed periodically.
The effect of changes, if any, to estimates is recognized in the financial statements for the period in
which such changes are determined. Losses, if any, are fully provided for immediately.
d) Interest on delayed payment from Customers is booked on realisation basis.
Other Income
In other cases, income is recognized when there is no significant uncertainty as to determination and
realization.
20.4. Fixed Assets / Capital work in Progress :
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation and
impairment of loss, if any. Cost is inclusive of other incidental expenses incurred up to the date of
capitalization. Land cost incurred for acquisition and all related acquisition expenses are capitalized
with Land cost and are grouped under tangible assets (gross block) till the time of starting development
of the project.
Capital work-in-progress represents expenditure incurred in respect of capital projects under
development and are carried at cost. Cost includes land development cost, incidental construction cost,
borrowing cost and other direct expenditures.
20.5. Depreciation and Amortization:
a) Depreciation in respect of Fixed Assets is charged based on the useful life of the assets as prescribed
in Schedule II of the Act.
b) Cost of leasehold improvements is amortized over the period of the lease.
c) Software is amortized on straight line basis over five years.
20.6. Impairment Loss:
Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable
amounts. Recoverable amount is the higher of an asset’s net selling price and its value in use. Value in
use is the present value of estimated future cash flows expected to arise from the continuing use of the
asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from
sale of the asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of
disposal.
Annual Report 2017
54
20.7. Contingencies & Events occurring after the Balance Sheet Date
The company has proposed a dividend of Rs. 0.20/- for each equity shares for the year.
20.8. Investments
Long Term Investments are valued at cost. Any decline in value, other than temporary is provided for.
20.9. Miscellaneous Expenditure:
Preliminary expenses are written off over a period of ten years.
20.10. Employee Benefits
Defined Contribution Plan
Provident Fund
Contribution paid to recognized Provident Fund Trust is debited to the Statement of Profit & Loss.
Defined Benefit Plan
Gratuity
Gratuity liability is a defined benefit obligation for employees. The Company accounts for liability for
future gratuity benefits based on actuarial valuation carried out at the end of each financial year and
the Contribution paid to LIC is charged to the Statement of Profit and Loss. Actuarial gain or losses
arising from changes in actuarial assumptions are immediately recognized in the Statement of Profit
and Loss in the period in which they arise.
In respect of employees under deputation from LIC of India (“LIC”) an amount equal to five percent of
aggregate of basic salary and dearness allowance of such employees, paid / payable to LIC is charged
to the Statement of Profit and Loss and is treated as a defined contribution obligation.
Short-term employee Benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the
services rendered by employees (other than employees who are deputation from LIC) are recognized
during the year when the employees render the service. These benefits include compensated absences
which are expected to occur within twelve months after the end of the period in which the employee
renders the related service.
Long-term employee Benefits
Compensated absences which are not expected to occur within twelve months after the end of the
period in which employee (other than employee who is deputation from LIC or LIC HFL) renders the
related service are recognized as a liability at the present value of the defined benefit obligation as at
the Balance Sheet date.
20.11. Earnings per share:
In accordance with Accounting Standard 20 (AS-20) “Earning Per Share” issued by the Institute of
Chartered Accountants of India, basic earnings per share is computed using the weighted average
number of shares outstanding during the period.
55
20.12. Taxes on Income
Taxes on income are accounted for in accordance with Accounting Standard (AS-22) – “Accounting for
taxes on income”, notified under the relevant provisions of the Act. Income Tax comprises both current
and deferred tax.
Current tax is measured on the basis of estimated taxable income and the amount expected to be paid
to the taxation authorities using the applicable tax rates considering tax credits computed in accordance
with the provisions of the Income Tax Act, 1961.
Deferred Tax Assets and liabilities are measured using the tax rates and tax laws that have been
announced up to the balance sheet date. Deferred tax assets and liabilities are recognized for the future
tax consequences attributable to timing differences between the taxable income and accounting income.
The effect of tax rate change is considered in the profit and loss account of the respective year of change.
Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty
that sufficient future taxable income will be available against which such deferred tax assets can be
realized.
20.13. Provision and Contingencies:
Provisions are recognized when the Company has a legal and constructive obligation as a result of a
past event, for which it is probable that cash outflow will be required and a reliable estimate can be
made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a
possible or present obligation where it is not probable that an outflow of resources will be required to
settle it. Contingent assets are neither recognized nor disclosed.
20.14. Prior Period Items:
Prior period expenses / income are accounted under the respective heads. Material items, if any, are
disclosed separately by way of a note.
NOTE 21
OTHER NOTES FORMING PART OF THE ACCOUNTS
21.1. Nature of Activities
The Company was established to carry out the business of setting up, running and maintaining Assisted
Living Community Centre / Care Homes for Senior Citizens. The Company has commenced
commercial operations w.e.f. 30th April, 2006.
21.2. Estimated amount of contracts remaining to be executed on capital accounts and not provided for is Rs.
18.17 Crore (Previous Year Rs. 21.24 Crore).
21.3. Contingent Liability
Bank guarantee outstanding of Rs. Nil (P.Y. Rs. Nil).
21.4. Managerial Remuneration U/s 197 of the Companies Act, 2013, to the Directors
(Amount in Rs.)
PARTICULARS FOR THE YEAR ENDED
31ST MARCH, 2017
FOR THE YEAR ENDED
31ST MARCH, 2016
Salary 20,85,422 18,95,593
Annual Report 2017
56
Contribution to Provident and other Funds 2,52,640 2,28,301
Perquisites 4,64,773 3,79,072
Total 28,02,835 *25,02,966
* includes managerial remuneration of Rs. 1,38,607/- related to Ex-Director & Chief Executive.
21.5. As per information available with Company, there are no amounts payable to any Small Scale Industrial
Undertaking.
21.6. Earnings Per Share
(Amount in Rs.)
PARTICULARS YEAR ENDED
31.03.2017
YEAR ENDED
31.3.2016
Net profit / (loss) attributable to equity
Shareholders (in Rs.) 82,50,839 15,29,135
Weighted average number of equity shares 85,50,000 85,50,000
Basic Earnings per share of Rs.10/- each (in
Rs.) 0.97 0.18
The company does not have any outstanding dilutive potential equity shares. Consequently, the basic
and diluted earnings per share remains the same.
21.7. In the opinion of the Company, all current assets, loans & advances and other receivables are
approximately of the value stated, if realized in the ordinary course of business.
21.8. Deferred Tax Assets and Liabilities are measured using tax rates laws and have been announced up to
the balance sheet date. Deferred Tax Asset & Liabilities are recognized for the future tax consequences
attributable to timing difference between the taxable income and accounting income. The effect tax rate
change is considered in the profit & loss account of the respective year of change.
Deferred Tax Assets of C.Y. Rs. 18,91,549/- (P.Y. Rs. 13,13,157/-).
Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty
that sufficient future taxable income will be available against which such deferred tax assets can be
realized. Hence the same is not recognized in the accounts in absence of ultimate certainty of future
profit.
21.9. Segmental Information: there are no separate reportable segments as per the Accounting standard on
Segment Reporting (AS-17), as the company’s prime business is to provide Assisted Living community
Centers/ community care homes/ centers.
21.10. Capital Work in Progress
(A) Jaipur Project
Capital Work in progress relating to Project include the following Pre-operative expenses incurred
during the year which will be capitalized on Completion of the Project-
PARTICULARS CURRENT YEAR
(AMT. in Rs.)
PREVIOUS YEAR
(AMT. in Rs.)
Opening Balance 24,54,261 24,54,261
Professional Fees 7,90,900 -
Boundary Wall Construction 9,70,978 -
57
Advertisement Expenses 1,08,794 -
Other Misc. Expenses 18,357 -
Conversion Fee to Jaipur Development Authority 4,40,010 -
Travelling Expenses 15,071 -
TOTAL 47,98,371 24,54,261
Change of Land Use (CLU) of land at Jaipur has been converted from Agriculture to Non-Agriculture
land vide letter dated: 21.12.2016 of Jaipur Development Authority.
(B) Bangalore (Phase II)
Company has Completed Phase II projects during 2013-14 amount received from allottees is shown as
sale. Details of operative expenses are as under:
PARTICULARS CURRENT YEAR
(AMT. IN Rs.)
PREVIOUS YEAR
(AMT. IN Rs.)
Opening Balance Nil NIL
Administrative Expenses Nil 2,92,360
TOTAL Nil 2,92,360
Less : Transferred to Construction Cost Nil 2,92,360
(C) Bhubaneswar :
Company has been started booking for Bhubaneswar projects and amount received from parties is
shown as Advance received from customers for Bhubaneswar. Details of operative expenses are as
under:
PARTICULARS CURRENT YEAR
(AMT. IN Rs.)
PREVIOUS YEAR
(AMT. IN Rs.)
Opening Balance Nil NIL
Salaries 27,65,031 12,51,656
Advertisement Expenses 6,95,548 56,835
Traveling & Misc. Exp. 5,05,722 4,33,743
TOTAL 39,66,301 17,42,234
Less : Transferred to Construction Cost 39,66,301 17,42,234
(D) Vasind
Company is launching its next Care Homes project in collaboration with TATA Value Homes Limited
(“TVHL) at Vasind in Thane District of Maharashtra. The Company and TVHL has signed a Letter of
Intent dated: September 8, 2016 in this regard and the Company has paid an upfront payment of Rs.
5,00,00,000/- as refundable earnest money deposit for development of the project. A Collaboration
Agreement in respect of the project with TATA Value Homes Limited is yet to be executed. Details of
pre-operative expenses of the project are as follows:
PARTICULARS CURRENT YEAR
(AMT. IN Rs.)
PREVIOUS YEAR
(AMT. IN Rs.)
Opening Balance Nil Nil
Professional Fee 3,73,525 Nil
Advertisement Expenses 4,63,806 Nil
Travelling Expenses 8,279 Nil
Printing & Stationery 34,450 Nil
Annual Report 2017
58
TOTAL 8,80,060 Nil
Less : Transferred to Construction Cost Nil Nil
21.11. (I) Bhubaneswar Project
a) Company has commenced Residential Project at Bhubaneswar consisting of 240 flats & more than
80% of sale consideration has been received. Upto 31.03.2017, the project has been completed
80.30%. Upto last year, revenue was booked for 76.14% based on percentage completion method.
During the current year 4.16% work at Bhubaneswar Project was executed hence revenue of 4.16%
from the project has been booked in current year.
b) Project cost incurred up to 31/3/2017 is Rs. 50,04,21,832/- (P.Y. Rs. 46,75,29,798/-).
c) Details of the Bhubaneswar project are as under :
Amount (Rs. in Crore)
PARTICULARS CURRENT
YEAR
PREVIOUS
YEAR
Estimated sale proceeds 80.21 80.21
Estimated total cost including land cost 67.82 67.82
Amount of project revenue recognized 3.33 Nil
C.Y. (4.16% of Rs. 80.21Crore for 240 Flats) P.Y. (Nil % of Rs. 80.21 Crore
for 240 Flats)
Accumulated Percentage completion method 80.30% 76.14%
Amount of advance received from buyers 7.98 11.26
Aggregate amount of Actual Cost Incurred for 240 flats 50.04 46.75
Amount receivable from Customers 1.26 1.27
d) In respect of Bhubaneswar project service tax has been collected from the allottees and deposited
to the department. However VAT on this project has not been collected as the same is not applicable
in the state.
e) In respect of Bhubaneswar project, the Company will charge escalation cost on the project to buyers
of flats, if any, at the time of handing over possession of flats. Necessary effect on account of
escalation will be given at the time of completion of the project.
f) In respect of Bhubaneswar project the interest charged, if any, on the booking amount receivables
from allottees is accounted for as and when realized due to uncertainty of recovery.
g) Bank guarantees of Rs. 6,40,59,379/- has been issued by SVEC Constructions Limited, contractor of
the project in favour of the Company towards various project advances provided in respect of
project execution.
(II) Bangalore PH II Project
a) in respect of Bangalore PH II project, the Company granted occupancy right against deposits
received providing, all the rights of enjoyment to the allottees subject to compliance of certain terms
& conditions of allotment. Deposit against such allotment is considered as revenue and cost
incurred has been considered as cost of the project for determining profit of the said project.
However, the same is in contrast to the treatment given for Bangalore PH I project where in cost is
treated as fixed assets of the Company and deposits against allotment considered as liabilities.
59
b) In respect of Bangalore Phase II project right to occupancy has been granted to the allottees. As per
the legal opinion received from tax consultants, no service tax and VAT is applicable. The Company
has not collected the service tax and VAT from the allottees due to non-applicability of the same on
transaction of granting right to occupancy considering it as perpetual lease.
21.12. a) Amount recoverable from Bangalore Care Homes Allottees Association is Rs. 70,00,730/- (P.Y. Rs.
70,27,603/-) and the same is shown as recoverable under Long-Term Loans & Advances head and which
has been confirmed by the Bangalore Campus Office vide their confirmation letter dated : 05.04.2017.
The management is hopeful to recover the same fully hence no provision has been made for the same.
b) 16 car parking slots have been allotted in respect of Bangalore PH I project, against which deposit
from allottees are yet to be received. Interest on deposits, as applicable, will be accounted for as and
when the deposits realized.
c) Amount of Rs. 9,02,739/- (P.Y. Rs. 24,01,907/-) received during the year towards administrative
charges for transfer of occupancy right from allottees of Bangalore campus pursuant to the clause 7 of
terms and conditions of allotment and the same is shown under Other Income.
21.13. Disclosure in respect of Employee Benefits:
a) In accordance with the Accounting Standard on (AS-15) – “Employee Benefits” the following disclosures
have been made:
Provident Fund and Pension Fund Liability
The Company has recognized Rs. 5,05,146/- (Previous Year Rs. 7,07,087/-) in the Statement of Profit and
Loss towards contribution to Provident fund in respect of Company employees as well as employees on
deputation from LIC and LIC HFL as the case may be. In respect of LIC employees on deputation who
have opted for pension, Rs. 2,68,116/- (Previous Year Rs. 9,97,388/-) have been contributed towards LIC
of India (Employees) Pension Rules, 1995.
Gratuity Liability
(Amount in Rs.)
Change in the Benefit Obligations Current Year Previous Year
Liability at the Beginning of the year - -
Actuarial Loss on obligations 643,938 -
Liability at the end of the year 643,938 -
Amount Recognized in the Balance Sheet Current Year Previous Year
Liability at the end of the year 643,938 -
Amount recognized in the Balance Sheet 643,938 -
Assumptions Current Year Previous Year
Discount Rate 7.34% -
Salary Escalation 8.00% -
Attrition Rate 2.00% -
Leave Encashment
(Amount in Rs.)
Change in the Benefit Obligations Current Year Previous Year
Liability at the Beginning of the year - -
Actuarial Loss on obligations 679,998 -
Annual Report 2017
60
Liability at the end of the year 679,998 -
Amount Recognized in the Balance Sheet Current Year Previous Year
Liability at the end of the year 679,998 -
Amount recognized in the Balance Sheet 679,998 -
Assumptions Current Year Previous Year
Discount Rate 7.34% -
Salary Escalation 8.00% -
Attrition Rate 2.00% -
The estimates of future salary increases, considered in actuarial valuation, include inflation, seniority,
promotion and other relevant factors such as supply and demand in the employment market. The above
information is certified by the actuary and relied upon by the Auditors.
Sick Leave
The Company has recognized Rs. 1,56,831/- (Previous Year Rs. Nil) in the Statement of Profit and Loss
towards sick leave in respect of company employees.
b) Pursuant to the Accounting Standard – 15, retirement benefits of LICHFL CH employees are recognized
on actuarial valuation basis instead of cash basis as followed upto last year. Due to this change of
method, profit for the year is understated by Rs. 14,80,767/-.
21.14. In accordance with the notification no.: G.S.R. 308(E) issued by the Ministry of Corporate Affairs dated:
March 30, 2017, the details of Specified Bank Notes (SBN) transacted during the period from November
8, 2016 to December 30, 2016 is as follows:
SBNs
Other Denomination
Notes Total
Closing cash in hand as on 08.11.2016 7,000 1,130 8,130
(+) Permitted receipts Nil Nil Nil
(-) Permitted payments Nil Nil Nil
(-) Amount deposited in Banks 7,000 Nil 7,000
Closing cash in hand as on 30.12.2016 Nil 13,254 13,254
21.15. Related Party Disclosure, as required by Accounting Standard 18, “Related Party Disclosure” issued by
the Institute of Chartered Accountants of India is given below:
a) List of related parties
Holding Company LIC Housing Finance Ltd.
Key Management Personnel Shri V. Sathyakumar (Director & Chief Executive)
Associate Concern LIC of India
b) Company has entered into transactions with certain parties as listed below during the year under
consideration.
61
(Amount Rs. in Lakh)
21.16. Figures for the previous year has been regrouped and rearranged wherever necessary. The figures have
been rounded off to the nearest rupee.
As per our report of even date For and on behalf of the Board of
For Shankarlal Jain & Associates LLP LICHFL CARE HOMES LIMITED
Chartered Accountants
Firm Reg. No. 109901 W/W 100082
Sd/- Sd/- Sd/- Sd/-
(S. L. Agrawal) Sunita Sharma V. Sathyakumar Surendra Vyas
Partner Managing Director. Director & Chief Executive Company Secretary
M.No. 72184
Place : Mumbai
Date: April 8, 2017
NAME OF
THE PARTY
NATURE OF
RELATIONS
HIP
NATURE
OF
TRANSAC
TION
TOTAL OF DEBITS & CREDITS
DURING THE YEAR
OUTSTANDIN
G
AS AT YEAR
END
MAX AMOUNT
OUTSTANDIN
G
C.Y. P.Y. C.Y. P.Y. C.Y. P.Y.
LIC Housing
Finance Ltd.
Holding
Company
Current
Account
Dr.- Nil Dr.- 127.70 Cr.-
Nil
Cr.-
Nil
Cr.-
Nil
Cr.-
Nil
Cr.- Nil Cr.- 16.22
LIC of India Associate
Company
Current
Account
Dr. – 9.90
(Charged to
Profit & Loss
account)
Dr. – 9.83
(Charged to
Profit & Loss
account)
Nil Nil Nil Nil
Shri V.
Sathyakumar
Key
Management
Personnel
(Director &
Chief
Executive)
Remunerati
on\
(Excl.
Perquisite)
23.38 Rs. 21.23 Nil Nil Nil Nil
Annual Report 2017
62
Grouping forming part of Balance Sheet as on 31.03.2017
(Amount in Rs.)
Sr.
No. Particulars
As at 31.03.2017
As at 31.03.2016
1. OTHER LONG – TERM LIABILITIES
Deposits From Allottees
Deposit from Bangalore Allottees 7,20,47,000 7,20,47,000
Deposits for Car Parking Slot 32,40,000 32,40,000
Maintenance Deposit Bangalore Allottees 1,19,60,146 1,25,42,719
Total 8,72,47,146 8,78,29,719
2. LONG TERM PROVISION
Provision for Employee Benefits
Provision for Gratuity Benefits 6,34,226 -
Provision for Leave Encashment Benefits 7,79,326 -
Total 14,13,552 -
3 OTHER SHORT-TERM LIABILITIES
a) Advance Received from Customers
Advance from Bhubaneswar Allottees – Against Flat
Booking 7,97,76,560 11,26,46,000
Advance from Bangalore Allottees – Against Flat Booking - 9,044
Expression of Interest Received - Vasind Project 1,25,000 -
Demand Survey Fee Received – Vasind 5,000 -
Total 7,99,06,560 11,26,55,044
b) Advance Received from Creditors
Earnest Money deposit from Contractor – HO 58,400 1,00,000
Earnest Money deposit from Contractor – Bangalore 72,000 72,000
Earnest Money deposit from Contractor – Bhubaneswar 18,10,450 10,86,450
Retention Money of Contractor 46,922 41,922
Booking amount payable to customer 87,729 87,729
Total 20,75,501 13,88,101
c) Other Outstanding Liabilities
Cheque cancellation a/c BBSR - 44,500
Cheques cancellation a/c HO 33,524 57,055
Other Outstanding Expenses 6,77,361 6,28,818
Total 7,10,885 7,30,373
d) Duties & Taxes Payable
TDS Payable – Head Office
63
On Professional Fee 10,925 10,878
Total 10,925 10,878
4 SHORT TERM PROVISIONS
Provision for Employee Benefits
Provision for Gratuity Benefits 9,712 -
Provision for Leave Encashment Benefits 57,503 -
Total 67,215 -
5 LONG-TERM LOANS AND ADVANCES
Deposit with BESCOM – Head Office 4,38,423 4,38,423
Deposit with BESCOM – Bangalore 3,48,109 3,48,109
Lease Security Deposit for Employee Hired Premises 1,00,000 1,00,000
Deposit for WCT – Bangalore 25,000 25,000
Deposit towards development of Vasind Project 5,00,00,000 -
Recovery due from Bangalore Allottees Association 70,00,730 70,27,603
Total 5,79,12,262 79,39,135
6 TRADE RECEIVABLES
Booking amount receivables from Allottees –
Bhubaneswar 1,26,10,000 1,27,30,000
Booking amount receivables from Allottees –
Bangalore - 1,850
Total 1,26,10,000 1,27,31,850
7 CASH AND CASH EQUIVALENTS
A. Cash Balance
Imprest Cash 3,974 7,741
Total 3,974 7,741
B. Bank Balance
Andhra Bank – Head Office 40,50,437 7,84,046
Corporation Bank – Head Office 5,09,340 19,19,821
Corporation Bank - Vasind Project 1,31,931 -
HDFC Bank – Bhubaneswar 26,37,191 2,97,407
HDFC Bank – Bangalore 19,679 -
HDFC Bank – Head Office 82,301 82,301
Canara Bank – Bangalore 2,04,601 84,596
Total 76,35,480 31,68,171
C. Deposits
Short term deposits with Andhra Bank – Head Office 6,23,92,108 6,23,92,108
Short term deposits with HDFC Bank – Bhubaneswar 12,45,00,000 14,40,00,000
Annual Report 2017
64
Short term deposits with Corporation Bank - Head Office 5,83,91,670 11,88,76,693
Total 24,52,83,778 32,52,68,801
8 SHORT – TERM LOANS AND ADVANCES
Advances recoverable in cash or kind
a) Advance payment of Tax & TDS
(Net of Provisions)
TDS for A.Y. 2006 – 07 1,26,766 1,26,766
TDS for A.Y. 2008 – 09 18,289 18,289
TDS for A.Y. 2009 – 10 1,37,989 1,37,989
TDS for A.Y. 2015 - 16 – Bhubaneswar - 12,81,259
TDS for A.Y. 2015 - 16 - Head Office - 11,74,118
TDS for A.Y. 2015 - 16 – Bangalore - 1,01,467
Advance Tax for AY 2015 – 16 - 1,07,38,000
TDS for A.Y. 2016 - 17 - Bhubaneswar - 10,41,149
TDS for A.Y. 2016 - 17 – Head Office - 14,99,611
TDS for AY 2017 - 18 Bhubaneswar 9,25,797 -
TDS for AY 2017 - 18 Head Office 10,08,615 -
Total 22,17,457 1,61,18,648
Less: Provisions
Income Tax A.Y. 2015 - 16 - 2,02,00,000
Income Tax A.Y. 2016 – 17 - 13,00,000
Income Tax AY 2017 – 18 8,30,000 -
Total 8,30,000 2,15,00,000
Net Amount (Payable) / Receivable 13,87,457 (53,81,352)
b) Other Advances
Unsecured (Good)
Material Advance to Contractor – Bhubaneswar 2,00,56,203 2,44,82,328
Other Advance to Contractor – Bhubaneswar - 2,82,815
Festival Advance 1,04,800 1,00,500
Other Advances 1,21,546 41,633
Sundry Receivables – Bangalore 13,575 2,610
Amount due from LIC of India 240 240
Mediclaim Premium Payable 2,064 1,027
Total 2,02,98,428 2,49,11,153
9 OTHER CURRENT ASSETS :
A. Interest Accrued on Bank Deposits
- At Bhubaneswar 32,64,837 12,38,785
- At Head Office
- Corporation Bank 30,73,000 71,19,734
65
- Andhra Bank 20,71,837 16,42,035
Total 84,09,674 1,00,00,554
B. Prepaid Expenses 1,81,033 1,86,749
Total 1,81,033 1,86,749
Annual Report 2017
66
Grouping forming part of statement of Profit & Loss a/c for the year ended 31.03.2017
(Amount in Rs.)
Sr.
No. Particulars
For the Period
31.03.2017
For the Period
31.03.2016
1. OTHER INCOME – HEAD OFFICE
Guest House Charges & Other Miscellaneous Receipts 25,023 10,409
Rent Received 1,11,802 1,23,530
Misc Recovery from employees and others 23,297 3,22,688
Form sale receipts 1,500 -
Sundry Balances Written Back 2,01,198 -
Total 3,62,820 4,56,627
2. SALARY, WAGES, BONUS, ALLOWANCES &
DIRECTORS FEES
Salary & Wages 1,01,45,819 1,32,66,095
Leave Travel Concession 2,35,271 1,42,285
Medical Benefits (Lump – Sum) 3,10,621 3,37,408
PL encashment (All Employees) 3,82,177 2,02,004
PLLI to LIC Employees 2,02,931 -
Total 1,12,76,820 1,39,47,792
3. CONTRIBUTION TO PF & OTHER
Company’s Contribution to Provident Fund 5,05,146 7,07,087
Company’s Contribution to Pension Fund 2,68,116 9,97,388
Company’s Contribution to Mediclaim – all groups 52,145 40,160
Company’s Contribution to GSLI – all groups 2,537 1,247
Gratuity Contribution for LIC Employees 3,65,774 3,46,328
Gratuity Benefit for LICHFL CH Employees 6,43,938 -
Leave Encashment Benefit for LICHFL CH Employees 8,36,829 -
Total 26,74,485 20,92,210
4. STAFF WELFARE EXPENSES
Other Staff Amenities & Benefits 16,54,876 14,06,620
Canteen Expenses 29,295 30,253
Total 16,84,171 14,36,873
5. MISCELLANEOUS EXPENSES
Property Inspection & Other Local Conveyance 7,661 16,144
Reimbursement of Associate Fee to Institute 1,125 1,125
Postage, Telegrams, M.O. Charges & Internet 27,764 12,961
Bank Charges – Current Account 9,784 9,417
Software Charges 3,995 3,500
P.C. Service Charges & Repairs 35,408 18,983
67
Entertainment Expenses 83,344 1,10,542
Office Up-Keep & Cleaning Material 62,200 60,453
Subscription to Newspaper – Office 1,000 1,300
Other Miscellaneous Expenses 1,26,310 88,636
Subscription to Newspaper – Reimbursement to
Executives 24,475 21,044
Professional Tax on Company - 2,500
Penalty for late filing of Returns & Payment of Service Tax - 1,100
Interest on Late Payment of TDS & Service Tax - 948
Total 3,83,065 3,48,654
Annual Report 2017
68
Notes