NCL Holdings Unlisted Shares

Annual Report Summary

NCL Holding’s (A&S) LTD’s fifth annual report for the financial year 2021-22 includes audited statements of accounts for both the company and its subsidiaries. The AGM was scheduled for September 28, 2022, and it involved consideration of financial statements, approval of a final dividend of Rs. 1 per equity share, and the reappointment of Bimal Vinodrai Goradia as director. Pooja Kalidindi's regularization as a director (Non-Executive – Promoter) was also under consideration. Shareholders were to receive the AGM notice electronically, and the meeting was conducted through video conferencing. Remote e-voting was available, with CDSL providing the e-voting platform.

The report highlights financial results in lakhs of rupees, comparing FY2021-22 to FY2020-21. For the standalone results, income increased from 472.85 to 541.33 (includes income from sale of part of NCL Industries Ltd Shares) while profit after tax decreased from 231.93 to 64.83. The profit decline was attributed to a provision for loss of Rs. 244.82 lakhs on the sale of Sun Crop Sciences shares in July 2022. For the consolidated results, income increased from 2,097.37 to 2,498.34 and profit after tax increased from 160.00 to 180.7. The focus for the year was on consolidating subsidiaries and running the power project smoothly. An application for the amalgamation of NCL Holdings (A&S) Limited, NCL Green Habitats Pvt. Limited, and Eastern Ghat Renewable Energy Limited was in process. The board decided to retain the entire profit in the profit and loss account and recommended a final dividend of Rs. 1 per equity share.

Material changes included the sale of shares of M/s. Sun Crop Sciences Private Limited, reducing NCL Holding’s shareholding from 76% to 30%. The company has four subsidiaries: Sun Crop Sciences Private Limited, Kakatiya Industries Private Limited (KIPL), Eastern Ghat Renewable Energy Limited, and NCL Green Habitats Pvt. Ltd. Sun Crop Sciences showed a nominal profit. The Hydro Power Project (2 X 4.5 MW) of Kakatiya Industries commenced commercial operations in April and May 2022. The company has applied for registration under Global Carbon Council (GCC) for carbon credits related to the hydro power project, with sales of carbon credits expected to contribute to revenue. The chemical division’s revenue increased by 57% to Rs. 1,002.78 Lakhs, with a profit before tax of Rs. 219.74 Lakhs. Divesting the Chemical Division via scheme of demerger is planned with approvals pending. Eastern Ghat Renewable Energy Limited does not plan to undertake any activities, and a merger with NCL Holdings (A&S) Ltd is proposed. NCL Green Habitats Pvt. Ltd. has the plan approval for land in Hosur, Tamil Nadu with an expected sale value of Rs. 68.48 Crores and is aiming to exit from the state and to re-invest in Hyderabad. Management had proposed to merge with NCL Holdings (A&S) Ltd.

There were six board meetings during the year and none of the directors are disqualified. Ashven Datla resigned, and Pooja Kalidindi was appointed as Additional Director. Madhur Shrivastav was appointed as Company Secretary, and D. Sarasuram as Chief Financial Officer (CFO). The company has extended a Corporate Guarantee in favor of SBI to cover the revised limits availed by NCL Buildtek Limited. Related party transactions were on an arm’s length basis and in the ordinary course of business.

The report includes annexures with financial statements, auditor’s reports, details of share capital, reserves, borrowings, and assets. The auditors expressed an opinion that the standalone and consolidated financial statements give a true and fair view of the state of affairs of the company.