SMS LIMITED - Nagpur

1 SMS LIMITEDANNUAL REPORT FOR THE FINANCIAL YEAR 2015 & Corp. Add.: IT Park, 20, , GayatriNagar, Parsodi, Nagpur 440 022 (India).Ph.: 0712-7125000, Fax: : Company Overview A LEGACY OF EXCELLENCE SINCE 1963 Founded by Late Shri Shaktikumar M. Sancheti, SMS Group has the distinction of being one of the largest Infrastructure Companies of Central India with its presence across the country. The group is known not only in its work but also in its ethics, The magnitude of operations is no longer restricted to the country alone with a keen eye on the global infrastructure requirements, SMS boasts of large and experienced employee base with a very low attrition.

2 SMS has a satisfied client of over 53 major Government entities & PSUs. Making a humble beginning in 1963, SMS has gone on to diversify into all the major sectors of infrastructure that contributes in nation building. A no compromise policy on quality and exemplary farsightedness has made SMS a force to reckon with in the field of Mining, Railways, Irrigation, Highway Construction, Power, Environment, Urban & Rural Development. SMS has been recognized as one of the most trusted and preferred partner of choice by all our valued customers. Group Overview business History: Incorporated in 1963 and headquartered in Nagpur , SMS LIMITED is promoted by Sancheti family Sectors of Operations & specialization : Undertakes EPC contracts for various sectors such as highways, railways, electric, mining , irrigation and environment.

3 Order Book: Order book of USD 807 Mn as on 31st Dec 2015 majority of which is highways, airports & railways (17%), mining (7%), irrigation & pipeline (9%), environment (9%), O&M &Toll (48%) and Electrical (10%). BOT Presence/ Investment Portfolio: Owns one BOT Road project, hydro power plant, parking solutions and small investments in waste/water treatment plants. Also has investments in mining and taxicabs business . Resources: Manpower of full time 1800 employees and 3000+ contracted labor force and net asset block of USD 24 mn on Dec 15. Awarded ISO 14001:2004 and ISO 9001 : 2008 for civil construction & maintenance, irrigation, tunneling & waste management services.

4 Key Clients: National Highways Authority of India IRCON International LIMITED RITES LIMITED Vidarbha Patbandhare Vikas Maha Mandal Awards: ILC Power Brand Awards 2016 July 1 2016 was the most memorable moment for the Company as India Leadership Conclave & Indian Affairs business Leadership Awards 2016 declared Mr. Anand Sancheti, Managing Director of SMS LIMITED in the very prestigious category of Transformational business Leader of the Year 2016 at the ILC Power Brand Awards 2016 to be held in Mumbai on 1st July 2016. Mr Anand Sancheti was declared winner after the jury looked into the landmark achievements that he led to ensure SMS Group as one of the top company.

5 Career highlights and top moments: 1997- Awarded first BOT Project of National Highways Authority of India 2007- Awarded mining contract for Asia s largest Uranium Mine 2008- Commissioned India s largest Plasma Gasification Plant converting waste to ` energy 2009 Started Asia s biggest Bio Medical waste facility in Mumbai 2011- Launched Tab Cab, India s largest fleet of radio cabs 2012 First introduction to India of low cost continues mining through blast free technology. 2013 - Commissioned India s first fully automated underground car parking system with 828 car park spaces in Kamla Nagar, Delhi. 2014- Became India s second largest waste processor in terms of volume.

6 2015- Featured in the Fortune India magazine July 2015 issue. Consistent Growth Strong Order Book Most Diversified portfolio Multisectoral Presence Only company to feature in Fortune India Magazine Presence in sunrise sectors like underground Mining, Sewage Treatment, Electrical and Waste Management. Contents Key Performance Board of Company Board and its Key Management Director s Auditor s Report on Standalone Financial Statements ..79 Standalone Balance Statement of Profit and Cash Flow Notes forming part of Auditors Report on Consolidated Financial Consolidated Balance Consolidated Statement Profit and Consolidated Cash Notes to Route Map to AGM Landmark Achievements at 7th Annual India Leadership Conclave & Indian Affairs business Leadership Awards 2016 ---------------------------------------- ---------------------------------------- -------------- Key Performance Indicators (Standalone ,050 1,100 1.)

7 150 1,200 1,250 1,300 FY12FY13FY14FY15FY16 Financial 170 180 190 200 210 220 FY12FY13FY14FY15FY16 Financial YearEBITDA and EBITDA MarginEBITDAEBITDA 20 30 40 50 60 FY12FY13FY14FY15FY16 Financial YearPAT and PAT MarginPATPAT -100 200 300 400 500 600 700 FY12FY13FY14FY15FY16 Financial YearDebt : EquityDebtDebt : Equity 1 of 184 ProfitCash Profit% Increase in Cash (Basic)EPS (Basic)% Increase in BlockGross Block% Increase in Gross 12FY 13FY 14FY 15FY 16 Book Value/ShareBook Value/Share% Increase in Book Value/Share 2 of 184 Book (`Cr) (` Cr)

8 3 of 184 SMSL Board of Directors Abhay Sancheti Ajay Sancheti Chairman Vice-Chairman Anand Sancheti Dilip Surana Managing Director Whole Time Director 4 of 184 Renu Challu Ramendra Gupta Independent Director Independent Director Ajay Lakhotia Independent Director 5 of 184 Company Information Abhay Sancheti Chairman of the Board Ajay Sancheti Vice Chairman of the Board Anand Sancheti Managing Director

9 Dilip Surana Whole Time Director Renu Challu Independent Director Ramendra Gupta Independent Director Ajay Lakhotia Independent Director Sushant Mukherjee Chief Financial Officer Smita Agarkar Company Secretary Sagdeo & Co.

10 Statutory Auditors Surana & Co. Internal Auditors Yugandhara Kothalkar Secretarial Auditor Manisha & Associates Cost Auditor Registered Office Park, 20, , Gayatri Nagar, Parsodi, Nagpur - 440022 6 of 184 Board & Committees The Board of Directors Abhay Sancheti Chairman of the Board Ajay Sancheti