Your Directors have great pleasure in presenting the 31st Annual Report on the business and operations of your company together with Audited financial statement of the Company including consolidated financial statement of the Company for the financial year ended 31st March 2016 and the Auditors’ report thereon.
FINANCIAL SUMMARY AND HIGHLIGHTS
BUSINESS OUTLOOK FOR LANCOR HOLDINGS LIMITED, ITS SUBSIDIARIES AND ASSOCIATES BUSINESS OVERVIEW
There has been no material change in the nature of business of the company
The Real Estate sector which has been suffering much pain in the last 3 years is yet to see a recovery. The buyers are still delaying their decisions and the sector awaits the return of customers and investors. The home prices have been under tremendous pressure than before as the customers are still not entering the market. As per data, there was an accumulated stock of 7 lakhs units across India by September 2015. There has been mispricing and misdesign of project in many places. Your Company recognizes this position and has designed its TCP-Lake Front Phase II, OMR project with apartments of average sizes starting from 850 sft with a ticket size of above Rs.53 lakhs. The MSB panel approval for TCP-Lake Front Phase II has been obtained and the project will be launched in the next 2 months. As against 279 apartments that were reported in the last report, there will be 378 apartments as the sizes of the apartments are made more attractive and affordable.
The commercial office space has been the only saving grace where vacancy levels are falling down. The actual trickledown effect of many reforms and policies announced over the last two years by the Central Government is yet to see its effects on ground.
Your company in order to de-leverage your balance sheet obtained the shareholders approval and monetised the land in Potheri and Vallancheri of 6.44 acres for Rs.57.31 Crores and reduced the debt to Rs.160.51 Crores as on 31.07.2016 at the group level.
As on 31.07.2016, the debt equity ratio of your Company at the Group level is 1.14:1.
Your Company has launched an Innovative Scheme titled ‘GRIHA (Guaranteed Rental Income and Home Appreciation scheme), under which the buyer gets rental guarantee for the apartment purchased at 4.99% yield and is further assured of capital appreciation of 12% at the end of 3 years. The initial response of the scheme has been positive.
The construction of G block in Lumina has been completed and your company is making efforts to sell its inventories in G block under the GRIHA Scheme.
The few units which are left in Townsville, Town & Country at Sriperumbudur, TCP-Lake Front at Sholinganallur are also offered under the GRIHA Scheme.
The country’s first auto rail hub in Walajabad should give a boost to realty sector in and around Sriperumbudur. Your Company’s Town & Country and Townsville project in Sriperumbudur will be benefitted by this. The talks are on for revival of Foxconn factory in Sriperumbudur, which would also provide impetus to Sriperumbudur and to your projects in Sriperumbudur, when it happens.
This is to inform you that as per rule 6 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017, all the shares in respect of which dividend is unclaimed for 7 (seven) consecutive years or more, shall be transferred by the Company to the Investor Education and Protection Fund (IEPF) constituted under Section 125 of the Companies Act, 2013.
In this regard, we hereby inform you that the shareholders who were not claimed the dividend amounts for a consecutive period of 7 years, and the respective dividend amounts were already transferred to Investor Education and Protection Fund (IEPF). Pursuant of IEPF Rules, the Company shall also transfer your equity shares to the said fund.
Subsequent to such transfer of your shares to IEPF, all benefits which may accrue, if any, in future, to such shares, including dividend, will be credited to the IEPF.
In terms of Rule 7 of the IEPF Rules, any person may claim his/her shares from IEPF authorities by filing an application in Form IEPF-5 and follow the prescribed procedure for re-transfer of such shares.
Hence, request you to claim your unclaimed dividend and ensure your shares are in live. If you need any further clarifications, please send an e-mail to email@example.com or IEPF@cameoindia.com.
FOR LANCOR HOLDINGS LIMITED
Dr. V. Rajesh
Company Secretary & Compliance Officer