Mar 31, 2018
The directors are delighted to present their report on Company''s Business Operations along with the Audited Financial Statements for the year 31 March 2018.
1. FINANCIAL HIGHLIGHTS INR in Millions
Particulars |
2018 |
2017 |
Income from Operations |
213.39 |
50.92 |
Profit /(Loss) before interest, depreciation and tax |
179.42 |
1.56 |
Interest |
7.25 |
6.32 |
Depreciation & Amortisation |
10.52 |
14.78 |
Exceptional item |
73.83 |
- |
Profit/(Loss) before tax |
87.82 |
(19.54) |
Provision for Taxation |
- |
- |
Profit/(Loss) after tax |
87.82 |
(19.54) |
2. REVIEW OF OPERATIONS
During the year under review, your company recorded total income of Rs. 213.39 mn (Previous Year Rs.50.92 mn) comprising of Income from Animation services Rs.1.23 mn (Previous Year Rs.4.23 mn) Engineering Services Rs.6.80 mn (Previous Year Rs.5.13 mn) other services Rs.0.04 mn (Previous Year Rs.2.57 mn) and other income Rs.205.32 mn (Previous Year Rs.38.99 mn). The Company reported a net profit of Rs.87.82 mn.
The Company continued to carry on the business of electronic manufacturing services and animation content development during the year under review. As the Company''s amalgamation proposal of parent company merging with the company got sanctioned only in March 2018, the company could not pursue any major initiatives for lack of working capital finances. However you will be pleased to know that the company has been successful in monetizing one of our real estate assets towards the end of March 2018, which is part of the revenue reported in the accounts.
By way of a Settlement Agreement and Release dated 15 March 2017, signed by and between the company, Accel Limited and other Promoters M/s. CAC Holdings Corporation, Japan and Accel Frontline Limited, a settlement has been arrived at wherein all the parties have withdrawn their disputes and the litigation and as a part of the settlement, the company had transferred its holding in Accel Frontline Limited to a Trust without any consideration, the beneficiary of which will be Accel Frontline Limited. The accounts include loss on transfer of the shares amounting to Rs.73.83 mn which has been shown under Exceptional Item.
Detailed information on the operations of the Company and details on the state of affairs of the Company are covered in the Management Discussion and Analysis Report.
3). Dividend Distribution
During the year under review, the Company declared and paid to the shareholders, an interim dividend of Rs.0.40 per equity share (i.e. 20% of face value Rs.2 per share) in the month of June, 2018 and this is being proposed as final dividend also.
4). Transfer To Reserves
No amount was transferred to reserves during the FY 2017-18 as this is no longer mandatory.
5).Amalgamation of Holding company Accel Limited with company
On 5 March 2018, the Company received the order from National Company Law Tribunal, Chennai Bench, approving the Scheme of Amalgamation and Arrangement between Accel Transmatic Limited "Transferee Company" and Accel Limited "Transferor Company".
Pursuant to the approved Scheme
- The face value of the equity share of the transferee company has been reduced from Rs.10 per share to Rs. 2 per share and members of the Transferee Company other than Accel Limited have been issued 54,07,401 (Fifty Four Lakhs Seven Thousand Four Hundred and One) shares of Rs.2/- each.
- 16 (Sixteen) equity shares at par of the Transferee Company having face value of Rs.2/-per share fully paid up for every 1 (One) Equity shares of the face value of Rs.10/- per share fully paid up held by such member of the Transferor Company and the total number of shares so issued shall be 5,16,00,000 (Five Crore Sixteen Lakhs)shares of Rs.2/- each.
- The 56,30,000 equity shares held by transferor company in transferee company (cross holding) has been cancelled.
- The name of the transferee company has changed from "Accel Transmatic Limited" to "Accel Limited".
The Company has received the listing and trading approval from the Bombay Stock Exchange for new securities issued pursuant to the Scheme of Amalgamation an d Arrangement.
6. Material changes and commitments affecting the financial position between the end of financial year and date of report after the balance sheet date
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 relates and the date of this report.
7. Reporting under the Sexual Harassment of Woman at workplace (Prevention, Prohibition and Redressal) Act, 2013.
The company has in place an Anti-Sexual Harassment policy in line with the requirements of The Sexual Harassment of Women at the workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. No case was reported relating to Sexual harassment complaints during FY 2017-18.
8. Meetings Of The Board And Its Committees
The board of directors, in compliance with Section 173 of the Companies Act, 2013(''the Act''), read along with Secretarial Standard on Meetings of the Board of Directors (SS-1) and the Secretarial Standard on General Meetings (SS-2) issued by the Institute of Company Secretaries of India, meets at regular intervals to discuss on Company/business policy, strategy and financial results apart from other Board Business. The board has met six times during the financial year. The maximum interval between any 2 board meetings did not exceed 120 days.
The Company''s board has the following committees:
- Audit Committee
- Nomination and Remuneration committee
- Stakeholder relationship committee
The details of Composition, number of meetings, quorum at the meetings of the board and its committees listed above, during the FY 2017-18 and its terms of reference are briefly provided in Corporate Governance Report.
AUDIT COMMITTEE
Your company has an Audit Committee of the Board of Directors in place. The terms of reference of the Audit committee are in line with Section 177 of the Act read with the Companies (Meetings of the Board and its Powers) Rules 2014 and the Listing Regulations as amended. There were no frauds reported by Auditors of your Company under sub-section 12 of section 143 of the Act for the FY 2017-18.
NOMINATION AND REMUNERATION POLICY
Your company has in place a Nomination and Remuneration Policy to ensure that the Board and Top Management is appropriately constituted to meet its fiduciary obligations to stakeholders, to identify and determine the integrity, qualification expertise and experience of persons who are qualified to become Directors or who may be appointed in senior management and/or as Key Managerial Personnel of the Company. This policy lays down the guidelines relating to appointment and remuneration for Executive Directors, Non-Executive Directors/ Independent Directors, Key Managerial Personnel and Senior Management which are in line with the provisions of the Companies Act, 2013 and rules prescribed therein, as amended from time to time and as per the Listing Agreement with Stock Exchange(s), as amended from time to time and/or such other statutory notification, amendment or modification, as may be applicable.
9. Auditors and Audit Report Statutory Auditors
The Statutory Auditors of the Company, M/s. Vijaykumar & Easwaran, Chartered Accountants (Firm Registration Number -004703S) were appointed at the 31st Annual General Meeting of the Company to hold office for a term of 5 (five) consecutive years until the conclusion of the 36th Annual General Meeting of the Company.
Secretarial Audit
Pursuant to the provisions of Section 204 of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, your Directors appointed M/s. R. Kannan, Company Secretaries to undertake the Secretarial Audit of your Company for FY 2017-18. The Report of the Secretarial Auditor for FY 2017-18 is annexed as ''Annexure A'' to this Report.
There were no qualifications, reservations, observations or adverse remarks made by the Auditors in their report.
For FY 2018-19 it is proposed to appoint J.M. & Associate, Company Secretaries as Secretarial Auditors.
10. Directors'' Responsibility Statement
As required under clause (c) of sub-section (3) of section 134 of the Companies Act, 2013, directors, to the best of their knowledge and belief, state that-
i. in the preparation of the annual financial statements for the year ended 31 March 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
11. such accounting policies have been selected and applied consistently and made such 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 as at the end of the financial year 31 March 2018 and of the profit of the Company for that period;
iii. proper and sufficient care have been taken 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;
iv. annual financial statements have been prepared on a going concern basis;
v. internal financial controls have been laid down and followed by the Company and that such internal financial controls are adequate and are operating effectively; and
vi. proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
11. Fixed Deposit From Public
The Company has not accepted any deposits from the public and as such no amount on account of principal or interest on deposit from public was outstanding as on the date of the balance sheet.
12. Extract Of Annual Return
The extract of Annual Return as provided under sub-section (3) of section 92 of the Companies Act, 2013, in the prescribed form MGT-9 is annexed as ''Annexure B'' to this Report.
13. Details in respect of frauds reported by auditors under section 143(12)
During the year under review, there were no frauds reported by the auditors to the Audit Committee or the Board under section 143(12) of the Companies Act, 2013.
14. Particulars of loans, guarantees or investments
Information regarding loans, guarantees and investments covered under the provisions of section 186 of the Companies Act, 2013 are detailed in the Financial Statements.
15. Related Party Transactions
During the FY 2017-18, Related Party Transactions as defined under Section 188 of the Act read with Companies (Meeting of Board and its Powers) Rules, 2014, and the Listing Regulations, as amended, were at arm''s length and in ordinary course of business.
Omnibus approval for related party transactions (at arm''s length and in ordinary course of business) which were foreseen and repetitive in nature was obtained from the Audit Committee from time to time. During the period under review, your Company did not enter into any Related Party Transaction which may be considered material in terms of Section 188 of the Act read with Companies (Meeting of Board and its Powers) Rules, 2014, as amended, and thus disclosure in Form AOC-2 is not applicable to the Company.
16. Management Discussion and Analysis
The Management Discussion and Analysis and various initiatives and future prospects of the Company is presented in a separate section, which forms part of this Annual Report.
17. Auditors'' certificate on corporate governance
The Company has obtained the certificate from its statutory auditors regarding compliance with the provisions relating to corporate governance laid down in Part E of Schedule V to the SEBI Listing Regulations, 2015. This certificate is enclosed separately to this report.
18. Conservation Of Energy, Technology Absorption And Foreign Exchange Earnings And Outgo
The particulars as prescribed under Rule 8(3) of the Companies (Accounts) Rules, 2014, are set out in an ''Annexure C'' to this Report.
19. Risk Management Policy
Information on the development and implementation of a Risk Management Policy for the Company including identification therein of elements of risk, which in the opinion of the Board may threaten the existence of the Company, is given in the Corporate Governance Report.
20. Details of directors
During the year under review all independent directors have submitted the declaration of independence, as required pursuant to section 149(7) of the Companies Act, 2013 stating that they meet the criteria of independence as provided in section 149 (6) of the said Act and Regulation 16(1)(b) of SEBI, Listing Regulations, 2015.
Pursuant to the provisions of Section 152(6)(c) of the Companies Act, 2013, Mr. N.R. Panicker, Managing Director (DIN: 00236198) is liable to retire by rotation at the ensuing Annual General Meeting and offers himself for reappointment. The necessary resolution is being placed before the shareholders for approval.
21. Promoters shareholding
The Promoter shareholding is presented in the separate section in MGT-9 which forms part of this Annual Report.
22. Significant And Material Orders Passed By The Regulators Or Courts
There were no significant and material orders passed against your Company by the regulators or courts or tribunals during the FY 2017-18 impacting the going concern status and your Company''s operations in future.
23. Particulars Of Employees
The information required under section 197 of the Act and rules made there-under, in respect of employees of the company, is not required to be provided since there are no employees covered under the provision.
24. Indian Accounting Standards, 2015
The annexed financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time and other relevant provisions of the Act.
25. Details of internal financial controls with reference to the financial statements
The Company has documented its internal financial controls considering the essential components of various critical processes, physical and operational. This includes its design, implementation and maintenance, along with periodical internal review of operational effectiveness and sustenance, which are commensurate with the nature of its business and the size and complexity of its operations.
This ensures orderly and efficient conduct of its business, including adherence to the Company''s policies, safeguarding of its assets, prevention of errors, accuracy and completeness of the accounting records and the timely preparation of reliable financial information.
The internal financial controls with reference to the financial statements were adequate and operating effectively.
26. Documents placed in the company''s website (www.acceltransmatic.com/ www.accel-india.com)
Financial results for every fiscal year
Shareholding Pattern
Notes and Communication during each financial year.
Details on Corporate Governance initiatives.
26. Acknowledgements
The Board of Directors take this opportunity to thank all its shareholders, valued customers, banks, Government and statutory authorities, investors and stock exchanges for their continued support to the Company. Your Directors wish to place on record their deep sense of appreciation for the committed services by employees. Your Directors acknowledge with gratitude the encouragement and support extended by the valued shareholders and the Promoters of the Company.
For and on behalf of the Board of Directors
N.R.Panicker
Managing Director
DIN 00236198
Place: Chennai
Date: 14.08.2018
Mar 31, 2015
Dear Members,
Your Directors have pleasure in presenting the 29th Annual Report of
ACCEL TRANSMATIC LIMITED (the Company) Standalone financial statement
along with the audited financial statements for the financial year
ended 31 March, 2015,
FINANCIAL RESULTS INR in Millions
Particulars 2015 2014
Income from Operations 10.85 15.07
Profit /(Loss) before interest,
depreciation and tax (30.25) (5.78)
Interest 8,71 21.87
Depreciation & Amortisation 26,53 39.73
Profit/fLoss) after tax (70.66) (67.36)
REVIEW of operations
During the financial year 2014-15, your company recorded total Income
of Rs. 10.85 mn (Previous Year Rs, 15.07 mn)comprising income from
Animation services 7,73 mn and other services Rs.3.12mn. The company
reported a net loss of 70,65 mn mainly due to the high interest outgo
on borrowings from Banks and amortization of its Intellectual
properties without realizing a matching revenue by monetizing the same
through distribution. During the year, the animation division reported
a negative EBITDA of Rs.(30,25)mn (previous year, a negative EBITDA of
Rs.9.431 mn).
The company continued to carry on the business of content development
services in Animation and Visual Effects in a small way during the year
under review, and also pursued its efforts to monetize the IPRs. During
the financial year 2015-16, the company has started its Engineering
Services Division at its factory premises in Chennai for contract
manufacturing and Engineering services. The management: is hopeful of
scaling operations in both the divisions substantially during the
coming years.
The highlights of the performance are discussed in detail in the
management: discussion and analysis report attached as Annexure to this
report.
GOING CONCERN
The company has suffered losses for the past several years. The
accumulated losses as ondate of the Balance sheet is more than 102,75mn
(184 %) of its networth. However, considering the expected future cash
flows and the commitment of the promoters to try and revive the
operations in the coming years, the potential cash flows expected to be
received by the company from exploiting its IPRS, the management is of
the opinion that the company would be in a position to continue as a
going concern and hence the accounts have been drawn up on such basis.
The proposal of merging of the holding company with the company also
will assist the company to shore up it finances and operations.
DIVIDEND:
The Directors have not recommended dividend for the financial year
ended 31st March 2015 considering the losses and the necessary to
conserve resources,
PARTICULARS OF EMPLOYEES:
The information required under section 197 of the Act and rules made
there-under, in respect of employees of the company, is not required to
be provided since there are no employees covered under the provision.
DISCLOSURE AS PER SEXUAL HARRASMENT OF WOMAN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013.
"The company has in place an Anti-Sexual Harassment policy in line with
the requirements of The Sexual Harassment of Women at the workplace (
Prevention , Prohibition & Redressal) Act, 2013. Internal Complaints
committee (ICC) has been set up to redress complaints received
regarding sexual harassment. All employees (permanent, contractual,
temporary, trainees) are covered under this policy The following is a
summary of Sexual harassment complaints received and disposed off
during the year 2014-15, No of complaints:- Nil No of Complaints
disposed off- Nil DOCUMENTS PLACED ON THE
WEBSITE(www.acceltransmatic.com):
The following documents have been placed on the company's website in
compliance with the Companies Act:
1. Financial Statements of the Company.
2. Separate audited accounts in respect of subsidiaries as per fourth
proviso to Section 136(1).
3. Details of Vigil Mechanism for directors and employees to report
genuine concerns as per proviso to Section 177(10).
4. The Terms and Conditions of appointment of independent directors.
5. Details of unpaid dividend as per Section 124(2).
CORPORATE GOVERNANCE REPORT REQUIRED UNDER THE COMPANIES ACT, 2013 AND
LISTING AGREEMENT
As per Clause 49 of the Listing Agreement entered into with the stock
exchanges, Corporate Governance Report with Auditors' Certificate on
Compliance with the conditions of Corporate Governance are attached and
form part of this report.
MANAGEMENT DISCUSSION &ANALYSIS
The Management Discussion and Analysis and various initiatives and
future prospects of the company are enclosed, separately as Annexure-II
to this report.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement of Section 134(5) of the Act, and based on
the representations received from the management, the directors hereby
confirm that:
i, in the preparation of the annual accounts for the financial year
2014-15, the applicable accounting standards have been followed and
there are no material departures:
ii, they 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 Loss of the
Company for the financial year;
iii, they have taken proper and sufficient care to the best of their
knowledge and ability for the maintenance of adequate accounting
records in accordance with the provisions of the Act. They confirm that
there are adequate systems and controls 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;
v. they have laid down internal financial controls to be followed by
the Company and that such internal financial controls are adequate and
operating properly; and
vi. they have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars as prescribed under Rule 8(3) of the Companies
(Accounts) Rules, 2014, are set out in an Annexure- III to this Report
FIXED DEPOSITS FROM PUBLIC
The Company has not accepted any deposits from public and as such, no
amount on account of principal or interest on deposits from public was
outstanding as on the date of the balance sheet.
CEO/CFO CERTIFICATION;
The Chairman and the Whole time Director and CFO the Company have
submitted a certificate to the Board regarding the financial statements
and other matters, as required under Clause 49(V) of the Listing
Agreement.
DIRECTORS:
Mr.N.Gopalakrishnan Nair Director of the Company retire by rotation and
is proposed to be reappointed.
Ms, Shruthi Panicker was co-opted as an Additional Director with effect
from 31st March 2015 and is proposed to be reappointed.
QUALITY MANAGEMENT:
Your company's quality policy is to enhance customer satisfaction
through continued improvement of skills, processes and technologies,
During the year the company continued to invest in technologies,
infrastructure and processes in order to keep our quality management
systems updated
AUDITORS REPORT:
M/s. Varma & Varma, Chartered Accountants, Chennai, auditors of the
Company retire at the ensuing Annual General Meeting, and being
eligible, offer themselves for reappointment. The Company has received
confirmation from them that their appointment will be within the limit
prescribed under section 139 of the Companies Act, 2013, The Audit
Committee of the Board has recommended their reappointment, The
necessary resolution is being placed before the shareholders for
approval.
The auditors have emphasized in their report about the realization of
intangible assets, that the Company has incurred cash loss, networth
has been eroded and the current liabilities exceeds the current assets.
The Board of Directors would like to clarify as below regarding
"emphasis matter" expressed by the auditors in their report annexed
with this Annual Report
1, The Company continued to incur losses during the period under
review, due to various reasons like lack of viable service orders,
interest cost on the borrowings made for investments in fixed assets
and delays in monetizing the assets due to market slowdown for animated
content. The management is confident of sustaining the operations and
recovering the investments made in the business.
2, The promoters have lent funds to sustain the operations during the
years, the Company incurred losses. These amount have been shown under
current liabilities and hence the mismatch between current assets and
current liabilities. The holding company has already converted Rs. 5 Cr
out of these funds into cumulative preference shares to strengthen the
equity base of the company and also to improve the current ratio.
Further, the promoters have proposed to merge the holding company M/s,
Accel Limited with the company under a scheme of arrangement of
amalgamation,
3, The company is taking adequate steps to liquidate certain real
estate assets owned by the company to reduce the bank liabilities,
4, The management is committed to grow the media business and also
venture into new business and is confident of carrying on the business
as a going concern basis and would bring in necessary support to the
extent: possible as and when required,
5, The Company had availed an asset backed loan for Rs.7,67 crores from
a bank which is payable over a period of 83 month and hence long term
is nature. The long term assets were acquired / developed out of funds
infused by the promoter companies.
6. The management is confident that it will be able to realise the
intangible assets and with the support of its holding company and also
as explained m the notes to accounts and also explained above, will
continue to operate as a going concern.
INTERNAL CONTROL SYSTEMS;
Your company has adequate internal control procedures commensurate with
the size arid nature of its operations. The Audit Committee constituted
by the Board of Directors is functioning effectively. The Internal
Audit for the year 2014-2015 was carried out by M/s,
Vijayakumar&Easwaran covering all areas of operations. All significant
observations were discussed in the Audit Committee, which met 4 times
during the year under review
DEPOSITORY SYSTEMS;
Your Company's shares are tradable compulsorily in electronic form and
your Company has established connectivity with both the depositories,
i.e., National Securities Depository Limited (NSDL.) and Central
Depository Services (India) Limited (CDSL). In view of the numerous
advantages offered by the Depository system, members are requested to
avail of the facility of dematerialization of the Company's shares on
either of the Depositories as aforesaid,
ACKNOWLEDGEMENT;
Your directors would like to express their grateful appreciation for
the assistance and co-operation received from Central and State
governments, financial institutions, banks, government authorities,
customers, suppliers and investors during the year under review. Your
Directors also wish to place on record their deep sense of
appreciation, towards the dedicated and sincere services rendered by
the employees of the company for its success.
For and on behalf of the Board of Directors
Chennai. N.R. Panicker
13/11/2015 Chairman
Mar 31, 2014
Dear shareholders,
The Directors are pleased to present the 28th annual report together
with the audited accounts of the company for the year ended March 31,
2014.
(Rupees in Millions)
Particulars 2014 2013
Income from operations 15.07 36.83
Profit/(Loss) before interest,
depreciation and tax (5.76) (9.43)
Interest 21.87 24.31
Depreciation and Amortisation 39.73 51.67
Profit/(Loss) after tax (67.36) (65.42)
Review of operations:
During the financial year 2013-14, your company recorded total income
of Rs. 15.07 mn (previous year Rs 36.83 mn) comprising income from
Animation Services of Rs. 13.78 mn, other services Rs. 1.28 mn. The
company reported a net loss of Rs. 67.36 mn mainly due to the high
interest outgo on borrowings from Banks and amortization of its
Intellectual properties without realizing a matching revenue by
monetising the same through distribution. During the year, the
animation division reported a negative EBITDA of Rs. 5.76 mn (previous
year, a negative EBITDA of Rs. 9.43 mn).
The company continued to carry on the business of content development
services in Animation and Visual Effects during the year under review.
During the year under review the company completed the pilot for a new
project finalized to produce 6.5 hours of content in 3 D stereo for a
domestic customer.
The highlights of the performance are discussed in detail in the
management discussion and analysis report attached as Annexure to this
report.
Going Concern
The company has suffered losses for the past several years. The
accumulated losses as on date of the Balance Sheet is more than 50% of
its net worth. However, considering the expected future cash flows and
the commitment of the promoters to try and revive the operations in the
coming years, the potential cash flows expected to be received by the
company from exploiting its IPRs, the management is of the opinion that
the company would be in a position to continue as a going concern and
the hence the accounts have been drawn up on such basis.
Report on conservation of energy, technology absorption etc.
Information as required under section 217 (1) (e) of the Companies Act,
1956 read with Companies (disclosure of particulars in the report of
board of directors) rule, 1988 regarding conservation of energy,
technology absorption are given in Annexure I to this Report. The
details regarding foreign exchange earnings and outgo are mentioned in
the Notes to the Accounts.
Management discussion and analysis
The management discussion and analysis and various initiatives and
future prospects of the company are enclosed, separately as Annexure II
to this Report.
Report of Corporate Governance
A report on Corporate Governance on compliance with the conditions of
Corporate Governance as stipulated under Clause 49 of the Listing
Agreement is provided in Annexure III to this Report.
Auditors Certificate on corporate governance
The certificate issued by the auditors of the company on corporate
governance is given in Annexure IV to this Report.
Directors responsibility statement
The directors responsibility statement pursuant to sub section 2 AA of
Section 217 of the Companies Act 1956 is given in Annexure V to this
Report.
CEO/CFO Certification
The Chairman and Managing Director and the Company Secretary &
Compliance Officer have submitted a certificate to the Board regarding
the financial statements and other matters, as required under Clause 49
(V) of the Listing Agreement. This is provided as Annexure VI to this
Report.
Particulars of employees
For the financial year 2013-14, there was no such employee who was
meeting the criteria on payment of remuneration attracting the
provisions of section 217 (2A) of the companies act 1956.
Dividends
Considering the losses and the necessity to conserve resources, the
Directors do not recommend any dividend on the equity shares.
Directors
Mr. N.R. Panicker and Mr. A. Mohan Rao, Directors of the company,
retire by rotation.
Mr. N.R. Panicker being eligible for re-appointment offers himself for
reappointment.
Mr. A. Mohan Rao, though being eligible for reappointment, do not
intend to offer himself for reappointment and it has been decided that
such vacancy is not filled up.
Mr. A. Mohan Rao has been the Director of the company since 07-10-2004.
Your Directors place on record the valuable guidance, support and
advise extended by Mr. A. Mohan Rao during his tenure as a Director.
Mr. N. Gopalakrishnan Nair was co-opted as an Additional Independent
Director in the Board meeting held on 14th November 2013.
Mr. K.R. Chandrasekaran was co-opted as an Additional non-Independent
Director with effect from 21.02.2014.
Mr. M.R. Narayanan, Director retired at the AGM held on 14th August
2013 and ceased to be a Director.
Mr. M.R. Narayanan has been the Promoter of the company and a Director
since its inception. Mr. M.R. Narayanan continued to be associated with
the company even after Accel took over the company in 2004. Your
Directors place on record the valuable guidance, support and advise
extended by Mr. M.R. Narayanan during his tenure as a Director.
Mr. S.T. Prabhu resigned as a Director with effect from 21.02.2014.
Quality Management
Your company''s quality policy is to enhance customer satisfaction
through continued improvement of skills, processes and technologies.
During the year the company continued to invest in technologies,
infrastructure and processes in order to keep our quality management
systems updated.
Auditors and other observation
M/s Varma & Varma, Chartered Accountants, Chennai, auditors of the
Company retire at the ensuing Annual General Meeting, and being
eligible, offer themselves for reappointment. The company has received
confirmation from them that their appointment will be within the limits
prescribed under Section 224(1B) of the Companies Act, 1956. The Audit
Committee of the Board has recommended their reappointment. The
necessary resolution is being placed before the shareholders for
approval.
The auditors have emphasised in their report about the realisation of
intangible assets, that the company has incurred cash loss, net worth
has been eroded and the current liabilities exceeds the current assets.
The board of directors would like to clarify as below regarding
"emphasis matter" expressed by the auditors in their report annexed
with this annual report.
1. The company continued to incur losses during the period under
review, due to various reasons like lack of viable service orders,
interest cost on the borrowings made for investments in fixed assets
and delays in monetising the assets due to market slowdown for animated
content. The management is confident of sustaining the operations and
recovering the investments made in the business.
2. The promoters have lent funds to sustain the operations during the
years, the company incurred losses. These amounts have been shown under
current liabilities and hence the mismatch between current assets and
current liabilities. The holding company has already converted Rs. 5 cr
out of these funds into cumulative preference shares to strengthen the
equity base of the company and also to improve the current ratio.
Further they have agreed to convert Rs. 9.50 crores again into
cumulative preference shares during 2014-15.
3. The company is taking adequate steps to liquidate certain real
estate assets owned by the company to reduce the bank liabilities and
pay statutory liabilities.
4. The management is committed to grow the media business and is
confident of carrying on the business as a going concern basis and
would bring in necessary support to the extent possible as and when
required.
6. The company had availed an asset backed loan for Rs. 7.67 crores
from a bank which is payable over a period of 83 month and hence long
term in nature. The long-term assets were acquired/developed out of
funds infused by the promoter companies.
The management is confident that it will be able to realise the
intangible assets and with the support of its holding company and also
as explained in the notes to accounts and also explained above, will
continue to operate as a going concern.
Internal control systems
Your company has adequate internal control procedures commensurate with
the size and nature of its operations. The Audit Committee constituted
by the Board of Directors is functioning effectively. The Internal
Audit for the year 2013-2014 was carried out by M/s. Vijayakumar &
Easwaran covering all areas of operations. All significant
observations were discussed in the Audit Committee, which met 4 times
during the year under review.
Depository systems
Your Company''s shares are tradable compulsorily in electronic form and
your Company has established connectivity with both the depositories,
i.e., National Securities Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSL). In view of the numerous
advantages offered by the Depository system, members are requested to
avail of the facility of dematerialization of the Company''s shares on
either of the Depositories as aforesaid.
Acknowledgement
Your directors would like to express their grateful appreciation for
the assistance and co-operation received from Central and State
governments, financial institutions, banks, government authorities,
customers, suppliers and investors during the year under review. Your
Directors also wish to place on record their deep sense of
appreciation, towards the dedicated and sincere services rendered by
the employees of the company for its success.
For and on behalf of the Board of
Chennai. N.R. Panicker
Date : August 14, 2014 Chairman
Mar 31, 2013
Dear shareholders,
The Directors are pleased to present the 27th annual report together
with the audited accounts of the company for the year ended March 31,
2013.
In INR Millions
Standalone
Financial results 2013 2012
Income from operations 36.83 237.42
Proft before interest,
depreciation & tax (9.43) 85.77
Interest 24.31 30.90
Depreciation 51.67 51.97
Provision for tax
Proft /(loss) after tax (65.42) 2.89
Review of operations:
During the fnancial year 2012-13, your company recorded total income of
Rs 36.83 mn (previous year Rs 237.42 mn) comprising income from
animation services of Rs 11.62 mn , other services Rs.5.21 mn and
incentives on sale of technologies division of Rs 20 mn. The company
reported a net loss of Rs 65.42 mn.
The company during the year continued to focus on content development
services in Animation and Visual Efects and other activities in
entertainment space.
During the year the animation division reported a negative EBITDA of Rs
12.92 mn (previous year, a negative EBITDA of Rs.67.54 mn) and reported
a loss of Rs 88.32 mn mainly due to the high interest outgo on the term
loan availed for creation of infrastructure and the amortization of its
Intellectual properties without realizing a matching revenue by
exploiting the same through global distribution. During the fnancial
year under review, the company capitalized amounts spent on development
of a seventy minute series meant for DVD sales amounting to Rs 0.94 mn.
The highlights of the performance are discussed in detail in the
management discussion and analysis report attached as Annexure to this
report.
Report on conservation of energy, technology absorption etc.
Information as required under section 217 (1) (e) of the Companies Act,
1956 read with Companies (disclosure of particulars in the report of
board of directors) rule, 1988 regarding conservation of energy,
technology absorption are given in Annexure I to this Report. The
details regarding foreign exchange earnings and outgo are mentioned in
the Notes to the Accounts.
Management discussion and analysis
The management discussion and analysis and various initiatives and
future prospects of the company are enclosed, separately as annexure II
to this Report.
Report of Corporate Governance
A report on Corporate Governance together with auditor''s certifcate on
compliance with the conditions of Corporate Governance as stipulated
under Clause 49 of the Listing Agreement is provided in Annexure III to
this Report.
Auditors Certifcate on corporate governance
The certifcate issued by the auditors of the company on corporate
governance is given in Annexure IV to this Report.
Directors responsibility statement
The directors responsibility statement pursuant to sub section 2 AA of
Section 217 of the Companies Act 1956 is given in Annexure V to this
Report.
CEO /CFO Certifcation
The Chairman and Managing Director and the Company Secretary &
Compliance Ofcer have submitted a certifcate to the Board regarding the
fnancial statements and other matters, as required under Clause 49 (V)
of the Listing Agreement. This is provided as Annexure VI to this
Report.
Particulars of employees
The company has not employed any person attracting the provision of
section 217 (2a) of the companies act 1956 during the year.
Dividends
Considering the losses and the necessity to conserve resources, the
Directors do not recommend any dividend on the equity shares.
Directors
Mr. A. Mohan Rao and Mr. M R Narayanan Directors of the company, retire
by rotation.
Mr. A. Mohan Rao being eligible for re-appointment ofers himself for
reappointment..
Mr. M R Narayanan, though being eligible for reappointment, do not
intend to ofer himself for reappointment and it has been decided that
such vacancy is not flled up.
Mr. S.T. Prabhu who has appointed as additional director holds ofce up
to the date of AGM and the company has received a notice proposing his
candidature for appointmet as a director.
Quality Management
Your company''s quality policy is to enhance customer satisfaction
through continued improvement of skills, processes and technologies.
During the year the company continued to invest in technologies,
infrastructure and processes in order to keep our quality management
systems updated.
Auditors and their report
M/s Varma & Varma, Chartered Accountants, Chennai, auditors of the
Company retire at the ensuing Annual General Meeting, and being
eligible, ofer themselves for reappointment. The company has received
confrmation from them that their appointment will be within the limits
prescribed under Section 224(1B) of the Companies Act, 1956. The Audit
Committee of the Board has recommended their reappointment. The
necessary resolution is being placed before the shareholders for
approval.
The auditors have emphasised in their report about the realisation of
intangible assets, that the company has incurred cash loss, networth
has been eroded and the current liabilities exceeds the current assets.
The board of directors would like to clarify as below regarding "
emphasis matter" expressed by the auditors in their report annexed with
this annual report.
1. The company continued to incur losses during the period under
review, due to various reasons like lack of viable service orders,
interest cost on the borrowings made for investments in fxed assets and
delays in monetising the assets due to market slowdown for animated
content. The management is confdent of sustaining the operations and
recovering the investments made in the business.
2. The promoters have lent funds to sustain the operations during the
years, the company incurred losses. These amounts have been shown under
current liabilities and hence the mismatch between current assets and
current liabilities. The holding company has already decided to
convert into Rs 5 cr out of these funds into cumulative preferential
shares to strengthen the equity base of the company and also to improve
the current ratio.
3. The company is taking adequate steps to liquidate certain real
estate assets owned by the company to reduce the bank liabilities and
pay statutory liabilities.
4. The management is committed to grow the media business and is
confdent of carrying on the business as a going concern basis and would
bring in necessary support to the extent possible as and when required.
5. The company had given corporate guarantee to a bank for the
fnancial facilities enjoyed by a group company when the same was a
subsidiary of the company. Subsequently the borrower company , which
ceased to be a subsidiary, has repaid all loans taken from the bank
except to the extent of Rs. 50 lacs, enjoyed as a cash credit which is
expected to be closed during the current year.
6. The company had availed a term loan for Rs. 10.50 crores from a
bank to fund the fxed assets, which were payable over a period of fve
years and hence long term in nature. The only short-term borrowing are
in the form of cash credit facility and public deposits which are
supported by Accounts Receivables. The long-term assets were acquired/
developed out of funds infused by the promoter companies.
The management is confdent that it will be able to realise the
intangible assets and with the support of its holding company and also
as explained in the notes to accounts and also explained above, will
continue to operate as a going concern.
Internal control systems
Your company has adequate internal control procedures commensurate with
the size and nature of its operations. The Audit Committee constituted
by the Board of Directors is functioning efectively. The Internal Audit
for the year 2012Â2013 was carried out by M/s. Vijayakumar & Easwaran
covering all areas of operations. All signifcant observations were
discussed in the Audit Committee, which met 4 times during the year
under review.
Depository systems
Your Company''s shares are tradable compulsorily in electronic form and
your Company has established connectivity with both the depositories,
i.e., National Securities Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSL). In view of the numerous
advantages ofered by the Depository system, members are requested to
avail of the facility of dematerialization of the CompanyÂs shares on
either of the Depositories as aforesaid.
Acknowledgement
Your directors would like to express their grateful appreciation for
the assistance and co-operation received from Central and State
governments, fnancial institutions, banks, government authorities,
customers, suppliers and investors during the year under review. Your
Directors also wish to place on record their deep sense of
appreciation, towards the dedicated and sincere services rendered by
the employees of the company for its success.
By Order of the Board of Directors,
Chennai. N.R. PANICKER
30th May 2013 CHAIRMAN
Registered Ofce:
17/27, Jagathy,
Trivandrum  695 014.
Mar 31, 2012
The directors are pleased to present the 26th annual report together
with the audited accounts of the company for the year ended March
31,2012.
INR in million
Financial results 2012 2011
Total Income 237.42 202.69
Profit before interest, depreciation & tax 85.77 30.85
Interest 30.90 22.30
Depreciation 51.97 45.06
Provision for tax - -
Profit /(loss) after tax 2.89 (36.52)
Review of operations:
During the financial year 2011-12, your company recorded total income
of Rs 237.42 mn (previous year Rs 202.69 mn) comprising income from
technology services of Rs 72.95 mn, animation services of Rs 17.18 mn ,
other services Rs.6.74 mn and profit on sale of technologies division
of Rs 140.55 mn. During the year, the company completed development of
its second intellectual property" Raju The Rickshaw The company reported
a net profit of Rs 2.89 mn.
During the year, the company sold its technology services business with
effect from 15.08.2011 to M/s Accel Frontline Limited for cash
consideration of Rs. 199.70 mn after obtaining necessary approval of
the shareholders. The net tangible assets of the division on the date
of transfer stood at Rs.59.15 mn, resulting in a profit on sale of
undertaking of Rs.140.55 mn.The amount realized was used to repay
liabilities of the company, apart from funding production of
Intellectual properties, Raju the Rickshaw and Shaktimaan etc. During
the financial year the company incurred cash losses mainly on account
of Animation Business and the same was also funded from the
consideration.
With the transfer of the technologies division, the company's future
focus will be in content development services in Animation and other
activities in media & entertainment space.
During the year the animation division reported a negative EBITDA of Rs
67.54 mn (previous year, a positive EBITDA of Rs.0.60 mn)and reported a
loss of Rs 146.38 mn mainly due to the high interest outgo on the term
loan availed for creation of infrastructure and the amortization of its
Intellectual properties without realizing a matching revenue by
exploiting the same through global distribution. During the financial
year under review, the company capitalized amounts spent on development
of the second intellectual property and a co production property
amounting to Rs 38.34 mn.
The highlights of the performance are discussed in detail in the
management discussion and analysis report attached as Annexure to this
report.
Report on conservation of energy, technology absorption etc.
Information as required under section 217 (1) (e) of the Companies Act,
1956 read with Companies (disclosure of particulars in the report of
board of directors) rule, 1988 regarding conservation of energy,
technology absorption are given in Annexure I to this Report. The
details regarding foreign exchange earnings and outgo are mentioned in
the Notes to the Accounts.
Management discussion and analysis
The management discussion and analysis and various initiatives and
future prospects of the company are enclosed, separately as Annexure II
to this Report.
Report of corporate governance
A report on Corporate Governance together with auditor's certificate on
compliance with the conditions of Corporate Governance as stipulated
under Clause 49 of the Listing Agreement is provided in Annexure III to
this Report.
Auditors Certificate on corporate governance
The certificate issued by the auditors of the company on corporate
governance is given in Annexure IV to this Report.
Directors responsibility statement
The directors responsibility statement pursuant to sub section 2 AA of
Section 217 of the Companies Act 1956 is given in Annexure V to this
Report.
CEO /CFO Certification
The Chairman and the Company Secretary have submitted a certificate to
the Board regarding the financial statements and other matters, as
required under Clause 49 (V) of the Listing Agreement. This is provided
as Annexure VI to this Report.
Particulars of employees
The particulars regarding employees of the company pursuant to Section
217 (2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 are given in Annexure VII to the
Director's Report. However, in terms of sec 219 (1) (b) (iv) of the
Companies Act, 1956 the Directors Report (excluding Annexure VII) is
being sent to all the shareholders of the company. Any shareholder
interested in obtaining a copy of the said Annexure may write to the
Company Secretary at the registered office of the company.
Dividends
Considering the losses and the necessity to conserve resources, the
Directors do not recommend any dividend on the equity shares.
Directors
Mr. N.R. Panicker and Mr. Philp John Directors of the company, retire
by rotation.
Mr. N R Panicker being eligible for re-appointment offers himself for
reappointment.
Mr. Philip John, though being eligible for reappointment, do not intend
to offer himself for reappointment and it has been decided that such
vacancy is not filled up.
Quality management
Your company's quality policy is to enhance customer satisfaction
through continued improvement of skills, processes and technologies.
During the year the company continued to invest in technologies,
infrastructure and processes in order to keep our quality management
systems updated.
Auditors
M/s Varma & Varma, Chartered Accountants, Chennai, auditors of the
Company retire at the ensuing Annual General Meeting, and being
eligible, offer themselves for reappointment. The company has received
confirmation from them that their appointment will be within the limits
prescribed under Section 224(1 B) of the Companies Act, 1956. The Audit
Committee of the Board has recommended their reappointment. The
necessary resolution is being placed before the shareholders for
approval.
Internal control systems
Your company has adequate internal control procedures commensurate with
the size and nature of its operations. The Audit Committee constituted
by the Board of Directors is functioning effectively. The Internal
Audit for the year 2011-2012 was carried out by M/s. Vijayakumar &
Easwaran, Chartered Accountants, Trivandrum covering all areas of
operations. All significant observations were discussed in the Audit
Committee, which met 4 times during the year under review.
Depository systems
Your Company's shares are tradable compulsorily in electronic form and
your Company has established connectivity with both the depositories,
i.e., National Securities Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSL). In view of the numerous
advantages offered by the Depository system, members are requested to
avail of the facility of dematerialization of the Company's shares on
either of the Depositories as aforesaid.
Acknowledgement
Your directors would like to express their grateful appreciation for
the assistance and co-operation received from Central and State
governments, financial institutions, banks, government authorities,
customers, suppliers and investors during the year under review. Your
Directors also wish to place on record their deep sense of
appreciation, towards the dedicated and sincere services rendered by
the employees of the company for its success.
For and on behalf of the Board of
Chennai. N.R.Panicker
Date: 29th May 2012 Chairman
Mar 31, 2010
The directors are pleased to present the 24th annual report to- gether
with the audited accounts of the company for the year ended March 31,
2010.
(INR in millions)
Particulars Standalone
2010 2009
Sales, services & other income 182.86 382.02
Proft before interest, depn & tax 38.98 14.87
Interest 24.52 34.94
Depreciation 28.65 25.03
Provision for tax 1.53 (0.82)
Proft after tax (16.45) (44.28)
Turnover
The details of revenues by segments are given below:
(INR in millions) Particulars March 31, 2010 March 31, 2009
Software Services 110.77 112.45
Animation Services 34.49 60.47
Systems & Services - 209.11
Others 37.60 -
Total 182.86 382.03
Review of operations :
The year under review was challenging due to the economic slow down.
The software division consolidated its relation- ship with its overseas
customers, and reported an EBITDA of Rs.21.35 mn on a turnover of Rs.
110.77 mn. The animation division reported a net loss of Rs.54.40 mn.
The turnover of the animation division was Rs.34.49 mn excluding the
value of in- tellectual property capitalized of Rs.52.30 mn.
The highlights of the performance are discussed in detail in the
management discussion and analysis report attached as annexure to this
report.
During the year under review, the company reported a net turnover of
Rs182.86 mn as compared to Rs. 382.02 mn for the year ended March 31,
2009., The fnancial results of the com- pany is not comparable with the
previous year Ãs fgures as one of the divisions, Systems and Services
Division, was hived off during the year as it was a non core activity
and was in- curring losses due to lack of suffcient orders. The company
reported a net loss of Rs. 16.45 mn. On a consolidated basis, the net
turn over was Rs.232 mn. as compared to the previous year net turnover
of Rs. 414 mn. During the year under review the company had cash crunch
due to losses incurred and has delayed statutory payments beyond due
dates as mentioned in annexure to the auditors report. The company has
since made good all the statutory payments due as on the date of the
balance sheet. The companys cash fow is expected to im- prove during
the currunt fnancial year.
Consolidated fnancial statements
Consolidated fnancial statements, prepared in accordance with
Accounting Standard AS 21, issued by the Institute of Chartered
Accountants of India, and as required by the listing agreement are
attached and forms part of the annual report and accounts. The summary
results are provided in the table above.
Report on conservation of energy, technology absorption etc.
Information as required under section 217 (1) (e) of the com- panies
act, 1956 read with companies (disclosure of particu- lars in the
report of board of directors) rule, 1988 regarding conservation of
energy, technology absorption are given in annexure I to this Report.
The details regarding foreign ex- change earnings and outgo are being
mentioned in the notes to the accounts.
Management discussion and analysis
The management discussion and analysis and various initia- tives and
future prospects of the company are provided, sepa- rately as
annexure II
Report of corporate governance
A report on Corporate Governance together with auditors certifcate on
compliance with the conditions of Corporate Governance as stipulated
under Clause 49 of the Listing Agreement is provided in annexure III to
this report
Auditors certifcate on corporate governance
The certifcate issued by the auditors of the company on cor- porate
governance is given in Annexure IV
CEO /CFO certifcation
The Chairman and the Company Secretary & Complaince Offcer have
submitted a certifcate to the Board regarding the fnancial statements
and other matters as required under Clause 49 (V) of the Listing
Agreement. This is provided as An- nexure V to this report
Directors responsibility statement
The directors responsibility statement pursuant to sub section 2 AA of
Section 217 of the Companies Act 1956 is provided in annexure VI
Particulars of employees
The particulars regarding employees of the company pursu- ant to
Section 217 (2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 are giv- en in annexure VII to
the Directors Report.
Subsidiaries
The companys subsidiary in USA reported a turnover of Rs.130.37 mn.
(USD 2.73 mn ) and the proft after tax was Rs. 2.39 mn (USD 0.05 mn)
During the year under review, the subsidiary in Japan was ac- quired by
the JV partner and as on 31.03.2010 it is no longer a subsidiary of the
company. The subsidiary was divested, as the turnover was insignifcant
at Rs.2.9 mn with a loss of Rs. 0.9 million. The company shall continue
to do business with the JV partner on a case to case basis. This will
save costs, while continuing to do business with Japanese clients.
Dividends
Considering the losses and the necessity to conserve resources, the
Directors do not recommend any dividend on the equity shares.
Directors
Mr. N.R. Panicker and Mr. A. Mohan Rao, Directors of the com- pany ,
retires by rotation and are eligible for re-appointment.
Auditors
Varma & Varma, Chartered Accountants, Chennai, auditors of the Company
retire at the ensuing annual general meeting, and being eligible, offer
themselves for reappointment. The company has received confrmation from
them that their ap- pointment will be within the limits prescribed
under Section 224(1B) of the Companies Act, 1956. The audit committee
of the Board has recommended their reappointment. The nec- essary
resolution is being placed before the shareholders for approval.
Quality Management
Your companys quality policy is to enhance customer satis- faction
through continued improvement of skills, processes and technologies.
During the year the company continued to invest in technologies,
infrastructure and processes in order to keep our quality management
systems updated. Our software development processes (assessed at CMM
L-3) ensure high quality deliverables, low risk and sustainable
business.
Internal control systems
Your company has adequate internal control procedures commensurate with
the size and nature of its operations. The audit committee constituted
by the Board of Directors is functioning effectively, Internal audit
for the year 2009 Ã 2010 was carried out by M/s. Vijayakumar &
Easwaran, Chartered Accountants covering all areas of operations. All
signifcant observations, if any, were discussed in the audit committee,
which met 4 times during the year under review.
Depository systems
As the members are aware, your Company Ãs shares are trad- able
compulsorily in electronic form and your company has established
connectivity with both the depositories, i.e., Na- tional Securities
Depository Limited (NSDL) and Central De- pository Services (India)
Limited (CDSL). In view of the numer- ous advantages offered by the
Depository system, members are requested to avail of the facility of
dematerialization of the company Ãs shares on either of the
Depositories as aforesaid.
Acknowledgement
Your directors would like to express their grateful apprecia- tion for
the assistance and co-operation received from central and state
governments, fnancial institutions, banks, govern- ment authorities,
customers, suppliers and investors during the year under review. Your
directors wish to place on record their deep sense of appreciation, of
the dedicated and sincere services rendered by the employees of the
company for its success.
For and on behalf of the
Board of directors
Place : Chennai. N. R. Panicker
Date : May 27, 2010 Chairman