Nicco Parks & Resorts Ltd

BSE: 526721 | NSE:  | ISIN: INE653C01022 
Market Cap: [Rs.Cr.] 204.98 | Face Value: [Rs.] 1
Industry: Recreation / Amusement Parks

Director's Report

For the Financial Year Ended 31st March 2013

Your Directors have pleasure in presenting the Twenty Fourth Annual Report togetherwith 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 Rs70.20 lakhs for the financial year ending 31.03.2013, maintaining the previous year's rateof dividend, despite the drop in profits due to the unfortunate incident at water park inend August, 2012, resulting in full closure of Water Park and partial closure of Main Parkfor almost one & half.months post the incident.

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

Management Discussion and Analysis

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


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'sDen", "Nicco Super Bowl" and "Other Recreation Facilities" was15.17 L which was 10% less than previous year. This is mainly due to the unfortunateincident that took place during end August '12 in Water Park wherein a group of teenagedboys disobeyed all verbal, written instructions/warnings and overpowered our securityguards and operators to take one ride together and consequently, got injured at the WaterPark in the premises of Nicco Park. This unfortunate incident resulted in loss offootfall in Water Park and Main Park due to full and partial closure, respectively, foralmost one & half.months immediately after the incident. This in turn has led to thereduction of profitability.

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

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

Project Income was less as we did not have project orders in hand during beginning ofthe 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 thelatest version of ISO : 9001, ISO : 14001, OHSAS : 18001 and SA : 8000and continues to hold all these valued certificates.

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


Nandan Park Limited, Dhaka . Bangladesh

Nandan Park Ltd., Dhaka, Bangladesh the audited financial results show that they havemade a profit of BDT 35.45 lakhs for the calendar and financial year 2011. The Results forthe 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 alsofor visitors of Jamshedpur. In the year under review the footfalls in the park were betterthan that of the previous year. The main impediment for the growth of this companycontinues to be increasing costs and the legacy of high rate of entertainment tax burdenbeing 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, yourcompany 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' darkride and for few other small rides. A few consultancies, turnkey contracts, ride orders inIndia & abroad, are under negotiation.

With aggressive marketing schemes to increase footfall, good number of booking forevents and with an emphasis on increasing Food & Beverage sales, barring anyunforeseen 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 towardsconservation of energy by adhering to strict norms it has prepared in ISO 9001 and ISO14001 manuals. Your Company has carried out energy audit by an external consultancy firmand is under.taking various projects towards conservation and recycling of water.

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

For sustainability your Company's triple bottom line approach on economic,environmental and social returns had made the Company more environmental conscious and itis 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 becomethe first Indian Amusement Park to achieve Business Excellence Award.

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

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

Foreign Exchange Earnings and Outgo

While there have been foreign visitors to the Park, no separate record is kept ofearnings 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 receivedagainst supply of components.

The total Foreign Exchange used during the financial year ended 31st March, 2013 was Rs37.64 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 andenvironmental factors, your Company takes pleasure in reporting the following activitiesundertaken as per Global Reporting initiatives guidelines;.

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

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

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

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

Corporate Governance

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

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


Mr. Suriil Mitra, was appointed as an Additional Director, Independent, Non.Executiveon 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 Companyhas 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 topropose the appointment of Mr. Mitra as Director at the forthcoming Annual GeneralMeeting.

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

The Government of West Bengal, Department of Tourism, had vide its letter communicatedof its nomination of Mr. Arnab Roy, Secretary, School Education Department, Government ofWest Bengal as Director on the Board of Directors of the Company. Accordingly, Mr. ArnabRoy 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 uptothe date of the ensuing Annual General Meeting, The Company has received a separate Noticein writing under Section 257 of the Companies Act, 1956 alongwith requisite deposit, froma member of the Company signifying his intention to propose the appointment of Mr. Roy asDirector at the forthcoming Annual General Meeting.

The particulars of Mr. Arnab Roy, which are required to be disclosed pursuant to Clause49lV(G) of the Listing Agreement are mentioned in the Annexure to the Notice convening the24th Annual General Meeting of the Company.

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

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

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

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

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

Your Directors hereby confirm that: .

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

ii. they have selected such accounting policies and applied them consistently and madejudgements and estimates that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company at the year ended 31st March, 2013 and of theprofit of the Company for that period;

iii. they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956, forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

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

Your Company has no employee of the category required to be listed under Section2i7(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. ArijitSengupta, Managing Director & CEO, Mr. Abhu'it Dutta, Executive Director & COO,Mr. Bijay Kumar Baksi. President & CFO and Mr. Rahul Mitra, General Manager &Company Secretary,


Messrs Singhi & Co.. Chartered Accountants, Kolkata, Statutory Auditors of yourCompany, hold office until conclusion of this forthcoming Annual General Meeting and arerecommended 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.


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

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

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

On behalf of the Board of Directors
"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,
West Bengal-700106
Phone : West Bengal-91-033-66285549/66285509 / West Bengal-
Fax : West Bengal-91-033-23572116 / West Bengal-
E-mail :
Web :


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

Fund Holding
Scheme Name No. of Shares
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06 07 08 09 10 11 12