Annual Report | 2016 - 17 - LIC Housing Finance Limited Care Homes Limited- Annual... · citizens of India and provide them an environment ... The project inaugurated on August 12,

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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.



“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.



"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.




7. Increase in Authorised Capital of the Company.



“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

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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.”




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

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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


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


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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


By Order and on Behalf of the Board of


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

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


Number

01922717

Date of Joining the Board May 11, 2017

Qualifications M.A. (Economics)


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


Company

Nil

Name of Director Shri Vinay Sah


Number

02425847

Date of Joining the Board May 11, 2017

Qualifications M. Sc. (Statistics)


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


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,


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



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



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.



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.



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


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





Firm Reg. No. 109901 W/W 100082

Sd/- Sd/- Sd/- Sd/-



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.





Firm Reg. No. 109901 W/W 100082

Sd/- Sd/- Sd/- Sd/-



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.)


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.)


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.)


Provision for Employee Benefits (Refer Note No. 21.13) 14,13,552 -

Total 14,13,552 -

NOTE 5: OTHER CURRENT LIABILITIES

(Amount in Rs.)


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.)


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.)


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.)


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.)


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.)


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.)


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.)


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.)


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.)


31.03.2017

For the Period

31.03.2016

Opening Stock - -

Less : Transferred to Projects - -

Total - -

NOTE 17: EMPLOYEE BENEFIT EXPENSES

(Amount in Rs.)


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.)


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:


(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:


(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:


(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


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


Amount Recognized in the Balance Sheet Current Year Previous Year


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.




Firm Reg. No. 109901 W/W 100082

Sd/- Sd/- Sd/- Sd/-


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

Documents

Annual Report | 2016 - 17 - LIC Housing Finance Limited Care Homes Limited- Annual... · citizens of India and provide them an environment ... The project inaugurated on August 12,