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Nicco Parks & Resorts Ltd

BSE: 526721 | NSE: ISIN: INE653C01022
Market Cap: [Rs.Cr.] 199.37 Face Value: [Rs.] 1
Industry: Recreation / Amusement Parks

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Director's Report
DIRECTORS

For the Financial Year Ended 31st March 2013

Your Directors have pleasure in presenting the Twenty Fourth Annual Report together with the Audited Accounts of your Company for the financial year ended 31st March 2013.

Financial Results & Appropriations

(Rs In Lakhs)

Particulars Year Ended 31.03.2013 Year Ended 31.03.2012
Profit Before Interest And Depredation 533 656
Less : Interest 45 37
Cash Profit 488 619
Less : Depreciation 151 122
Add: Extra . Ordinary Item 9 .
Profit Before Tax And Provision 346 497
Less : Provision For Tax 121 161
Profit After Tax 225 336
Add : Profit Brought Forward From Previous Year 906 672
1131 1008
Proposed Dividend On Equity Shares 70 70
Dividend Tax 12 12
Transfer To General Reserve 20 20
Net Surplus (After Appropriations) 1029 906
1131 1008

Payment of Dividend and Transfer to Reserve

Your Directors recommend a dividend of 15% on 4,68,00,000 equity shares amounting to Rs 70.20 lakhs for the financial year ending 31.03.2013, maintaining the previous year's rate of dividend, despite the drop in profits due to the unfortunate incident at water park in end August, 2012, resulting in full closure of Water Park and partial closure of Main Park for almost one & half.months post the incident.

An amount of Rs 20 lakhs is being transferred to general reserve. The dividend recommended takes into consideration the need for conservation of internal fund requirement of your Company for future growth.

Management Discussion and Analysis

Management Discussion and Analysis report as required under the listing agreement with the Stock Exchanges is enclosed as Annexure A,

Operations

During the year under review Main Park and Water Park footfall put together was 14% less than that of last year. Overall footfall of the park including "Bowler's Den", "Nicco Super Bowl" and "Other Recreation Facilities" was 15.17 L which was 10% less than previous year. This is mainly due to the unfortunate incident that took place during end August '12 in Water Park wherein a group of teenaged boys disobeyed all verbal, written instructions/warnings and overpowered our security guards and operators to take one ride together and consequently, got injured at the Water Park in the premises of Nicco Park. This unfortunate incident resulted in loss of footfall in Water Park and Main Park due to full and partial closure, respectively, for almost one & half.months immediately after the incident. This in turn has led to the reduction of profitability.

Cumulative Per Capita Contribution was, however, about 6% and 2% better compared to last year in the Main Park and Water Park respectively.

Other Revenue Generation Areas i.e. 'Food & Beverages', income from 'Other Recreation Facilities', 'Branding & Sponsorship' etc, has shown marginal growth. Rental & Merchandising income which had shown good improvement in 2011.12 dipped to some extent during this year due to less footfall.

Project Income was less as we did not have project orders in hand during beginning of the year, but during the year we received some orders which will be executed during 2013.14.

During this period your park successfully went through the Surveillance Audit of the latest version of ISO : 9001, ISO : 14001, OHSAS : 18001 and SA : 8000 and continues to hold all these valued certificates.

This year, your Company achieved a rare distinction of becoming India's first Small Medium Business Enterprise to achieve CII EXIM Bank's "Business Excellence" Prize/Award on European Foundation of Quality Management (EFQM) model.

Investments

Nandan Park Limited, Dhaka . Bangladesh

Nandan Park Ltd., Dhaka, Bangladesh the audited financial results show that they have made a profit of BDT 35.45 lakhs for the calendar and financial year 2011. The Results for the financial & calendar year ending 2012, is expected to be finalized shortly.

Nieco Jubilee Park Limited — Jamshedpur

This Park continues to be popular and is a major attraction for the localites and also for visitors of Jamshedpur. In the year under review the footfalls in the park were better than that of the previous year. The main impediment for the growth of this company continues to be increasing costs and the legacy of high rate of entertainment tax burden being carried over the years.

Nicco Parks Leisure Projects Private Limited

To support your company's future growth and expansion through acquisitions, participation in future joint venture projects for amusement parks and waterparks, your company has floated this Special Purpose Vehicle (SPV).

Future Plans and Prospects

During the year your Company received Rs 3 Crore worth of order for a 'River Cave' dark ride and for few other small rides. A few consultancies, turnkey contracts, ride orders in India & abroad, are under negotiation.

With aggressive marketing schemes to increase footfall, good number of booking for events and with an emphasis on increasing Food & Beverage sales, barring any unforeseen circumstances, your company looks to the future with confidence.

Fixed Deposits

Your Company has not accepted any deposits from the public. Conservation of Energy

Your Company maintains an eco.friendly environment and continuously works towards conservation of energy by adhering to strict norms it has prepared in ISO 9001 and ISO 14001 manuals. Your Company has carried out energy audit by an external consultancy firm and is under.taking various projects towards conservation and recycling of water.

Your Company is producing vermi.compost and organic manure from the waste generated in the park and these are being used for its own horticulture and beautification of the park,

For long.run sustainability your Company's triple bottom line approach on economic, environmental and social returns had made the Company more environmental conscious and it is now committed towards minimizing its carbon foot.print and green house effects.

Business Excellence Award

In the year under review, yet another distinction was obtained by Nicco Park, to become the first Indian Amusement Park to achieve Business Excellence Award.

Confederation of Indian Industry (CII) the largest industry association in India collaborated with Export Import Bank of India (EXIM) and instituted "Business Excellence Award" in India during the year 1994 to recognize the best Corporates amongst all the industries in India. This CII.EXIM Bank Award is based on European Foundation of Quality Management (EFQM) model for which CII obtained the copy right from EFQM. EFQM Business Excellence challenge is based on 9 criteria consisting of various enablers and results involving people, process and performance.

So far in last 14 years only 7 Large Sector Companies qualified to get this highest recognition of award as "Role Model" amongst the entire industry. This award challenge with same criteria was also extended to Small Medium Business Enterprise (SMBE) 5 years back. Nicco Parks & Resorts Limited has become the first recipient (first amusement park in India) of one of the highest recognition of Prize/Award for the first time amongst all SMBE in India.

Foreign Exchange Earnings and Outgo

While there have been foreign visitors to the Park, no separate record is kept of earnings from them as they pay for the entry fees and other expenses in Indian Rupees. During the period under review Rs 3.22 lakhs worth of foreign exchange was received against supply of components.

The total Foreign Exchange used during the financial year ended 31st March, 2013 was Rs 37.64 lakhs on account of overseas travelling, exhibition, business promotion, subscription, and purchase of spares.

Corporate Social Responsibilities

As part of the process of institutionalizing commitment towards economic, social and environmental factors, your Company takes pleasure in reporting the following activities undertaken as per Global Reporting initiatives guidelines;.

1. Your Park is environment friendly and due to its strict environment control measures it has already obtained ISO 14001.2004 Environment Management systems certification. Every year Nicco Park observes World Environment Day with many eco.friendly activities. Your Park is making visitors aware by educating them for segregation of disposables of biodegradable and non.biodegradable nature of wastes into specific bins provided for the same. As a result of all these activities West Bengal Pollution Control Board has declared Nicco Park as a plastic free zone.

2. With the initiative of Local Municipality regular Pulse Polio immunization programme are conducted inside the Park premises.

3. Large numbers of orphans, destitute and physically challenged children are welcomed to visit the Park at a nominal cost through various philanthropic organizations such as Missionaries of Charity, Rotary Club and various NGOs.

4. Your Company has taken initiatives on various corporate social activities and is the first Amusement Park in India to have obtained the SA 8000 Certification.

Corporate Governance

The principles of good Corporate Governance through accountability and transparency have always been followed by your Company.

A separate report on Corporate Governance as prescribed by the Listing Agreements of the relevant Stock Exchanges along with a Certificate of Compliance issued by a Practising Company Secretary forms part of the Annual Report 2012.2013 (Annexure.B).

Directors

Mr. Suriil Mitra, was appointed as an Additional Director, Independent, Non.Executive on the Board of Directors of the Company with effect from 27th day of July, 2012. Mr. Mitra holds his office upto the date of the ensuing Annual General Meeting, The Company has received a separate Notice in writing under Section 257 of the Companies Act, 1956 a longwith requisite deposit, from a member of the Company signifying his intention to propose the appointment of Mr. Mitra as Director at the forthcoming Annual General Meeting.

The particulars of Mr. Sunil Mitra, which are required to be disclosed pursuant to Clause 49lV(G) of the Listing Agreement are mentioned in the Annexure to the Notice convening the 24th Annual General Meeting of the Company.

The Government of West Bengal, Department of Tourism, had vide its letter communicated of its nomination of Mr. Arnab Roy, Secretary, School Education Department, Government of West Bengal as Director on the Board of Directors of the Company. Accordingly, Mr. Arnab Roy was appointed as an Additional Director, Nominee of Government of West Bengal, Department of Tourism with effect from 22nd August, 2012, Mr. Roy holds his office upto the date of the ensuing Annual General Meeting, The Company has received a separate Notice in writing under Section 257 of the Companies Act, 1956 alongwith requisite deposit, from a member of the Company signifying his intention to propose the appointment of Mr. Roy as Director at the forthcoming Annual General Meeting.

The particulars of Mr. Arnab Roy, which are required to be disclosed pursuant to Clause 49lV(G) of the Listing Agreement are mentioned in the Annexure to the Notice convening the 24th Annual General Meeting of the Company.

West Bengal Tourism Development Corporation Limited (WBTDC) had communicated its withdrawal of nomination of Ms, Pritha Sarkar with effect from 23rd November, 2012, as Nominee Director on the Company's Board of Directors due to transfer from the services of WBTDC. Your Directors place on record their appreciation of the valuable service rendered by Ms. Pritha SarkaT, during her tenure as Director with the Company.

Mr. Bhishmadeb Dasgupta, Managing Director, West Bengal Tourism Development Corporation Limited was appointed as an Additional Director, on 2nd February, 2013, as Nominee of West Bengal Tourism Development Corporation Limited. Mr. Dasgupta holds his office upto the date of the ensuing Annual General Meeting. The Company has received a separate Notice in writing under Section 257 of the Companies Act, 1956 alongwith requisite deposit, from a member of the Company signifying his intention to propose the appointment of Mr. Dasgupta as Director at the forthcoming Annual General Meeting.

The particulars of Mr. Bhishmadeb Dasgupta, which are required to be disclosed pursuant to Clause 49IV(G) of the Listing Agreement are mentioned in the Annexure to the Notice convening the 24th Annual General Meeting of the Company.

Mr. S.N. Menon & Mr. Rajive Kaul, Directors, retire by rotation at the forthcoming Annual General Meeting and are eligible for re.appointment.

Directors' Responsibility Statement Pursuant to Section 217 (2Aa) of the Companies Act, 1956

Your Directors hereby confirm that: .

i. in the preparation of the Annual Accounts, the applicable accounting standards have been followed;

ii. they have selected such accounting policies and applied them consistently and made judgements 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 year ended 31st March, 2013 and of the profit of the Company for that period;

iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. They have prepared the annual accounts on a going concern basis. Particulars of Employees

Your Company has no employee of the category required to be listed under Section 2i7(zA) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975, as amended, during the period under review.

Key Management Team

The company has the following members as part of their key management team. Mr. Arijit Sengupta, Managing Director & CEO, Mr. Abhu'it Dutta, Executive Director & COO, Mr. Bijay Kumar Baksi. President & CFO and Mr. Rahul Mitra, General Manager & Company Secretary,

Auditors

Messrs Singhi & Co.. Chartered Accountants, Kolkata, Statutory Auditors of your Company, hold office until conclusion of this forthcoming Annual General Meeting and are recommended for re.appointment.

Your Company has received a letter from them to the effect that their re.appointment, if made, would be within the limits prescribed under Section 224(1B) of the Companies Act, 1956.

Acknowledgement

Your Directors acknowledge with gratitude the co.operation and assistance received from State Government departments and other agencies during the period under review, viz., West Bengal Industrial Development Corporation Limited, West Bengal Tourism Development Corporation Limited, Allahabad Bank, Tourism Finance Corporation of India Limited and Bidhan Nagar Municipality,

Your Directors wish to thank the several organisations who have extended their support by way of sponsorships and promotions. Your Directors also take this opportunity to record their sincere appreciation of the efforts put in by all the employees and their commitment throughout this period.

Your Directors conclude this report by placing on record their gratitude to all the shareholders for their continued support.

On behalf of the Board of Directors
Registered Office; NICCO PARKS & RESORTS LIMITED
"Jheel Meel'
Sector IV, Salt Lake City,
Kolkata . 700 106 Arijit Sengupta Arnab Roy
Managing Director & CEO Director
Date: May 8, 2013
   
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Key Information

Key Executives:

Rajive Kaul , Director

Sujit Poddar , Director

Anand Chatrath , Director

Pallavi Priyadarshini Kaul , Vice Chairperson


Company Head Office / Quarters:

Jheel Meel Sector IV,
Salt Lake City,
Kolkata,
West Bengal-700106
Phone : West Bengal-91-033-66285549/66285509 / West Bengal-
Fax : West Bengal-91-033-23572116 / West Bengal-
E-mail : niccopark@niccoparks.com
Web : http://www.niccoparks.com

Registrars:

R & D Infotech Pvt Ltd
7A Betala Road,1st Floor, ,Kolkata - 700 026

 
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