Mar 31, 2018
Dear Shareholders,
The Directors have pleasure in submitting their Twentieth (20th) Boardâs Report on the business and operations of the Company for the financial year ended March 31, 2018. The Standalone & Consolidated performance of the Company has been referred wherever required.
Results of Companyâs Operations and Performance (Rs. in Lakhs, except Per Share Data)
Standalone |
Consolidated |
|||
Particulars |
For the year ended March 31, |
For the year ended March 31, |
||
2018 |
2017 |
2018 |
2017 |
|
Revenue from Operations |
13625.70 |
13613.04 |
14069.69 |
14394.76 |
Cost of Sales |
7281.25 |
8118.07 |
7487.90 |
8370.57 |
Gross Profit |
6344.45 |
5494.97 |
6581.79 |
6024.19 |
Operating expenses |
||||
General and administration expenses |
4506.02 |
3832.76 |
4599.18 |
3915.90 |
Finance Cost |
1451.74 |
1394.15 |
1510.92 |
1427.12 |
Total Operating expenses |
5957.76 |
5226.91 |
6110.10 |
5343.02 |
Operating profit |
386.69 |
268.06 |
471.69 |
681.17 |
Other income |
231.71 |
192.32 |
264.45 |
182.13 |
Depreciation and Amortization |
412.30 |
356.93 |
419.07 |
363.65 |
Profit Before non-controlling interest/ |
||||
share in net loss of associate |
206.10 |
103.45 |
317.07 |
499.65 |
Exceptional Items |
(54.04) |
- |
193.47 |
120.17 |
Profit before tax |
152.06 |
103.45 |
510.54 |
619.82 |
Tax expense |
(11.14) |
(89.42) |
(58.05) |
(62.37) |
Profit after tax |
140.92 |
14.03 |
452.49 |
557.45 |
Non-controlling interest |
||||
Profit for the year |
140.92 |
14.03 |
452.49 |
557.45 |
Other comprehensive income/Expenses |
||||
Items not to be reclassified subsequently |
||||
to profit or loss |
22.69 |
(4.81) |
22.69 |
(4.81) |
Items to be reclassified subsequently to |
||||
profit or loss |
- |
- |
15.16 |
9.47 |
Total other comprehensive income, net of tax |
22.69 |
(4.81) |
37.85 |
4.66 |
Total comprehensive income for the year |
163.61 |
9.22 |
490.34 |
562.11 |
Earnings per share (EPS) |
||||
Basic |
1.35 |
0.14 |
4.32 |
5.57 |
Diluted |
1.34 |
0.14 |
4.31 |
5.53 |
Note: During the financial year ended March 31, 2018 the Company has sold its entire stake in three subsidiaries (viz. AI Instruments Private Limited, ADCC Tech Limited and ADCC International East Africa Limited.), During the previous financial year ended March 31, 2017 the Company has sold its entire stake in its subsidiary (ADCC Academy Private Limited). The gain/loss of sale of subsidiaries have been disclosed under exceptional items
Financial Position
(Rs. in Lakhs, except Per Share Data)
Particulars |
Standalone |
Consolidated |
||
For the year ended March 31, |
For the year ended March 31, |
|||
2018 |
2017 |
2018 |
2017 |
|
Equity |
||||
Equity Share Capital |
1109.04 |
913.82 |
1109.04 |
913.82 |
Other Equity |
5498.61 |
3971.56 |
6078.67 |
4240.03 |
Total Equity |
6607.65 |
4885.38 |
7187.71 |
5153.85 |
Non-Current Liabilities |
826.36 |
987.55 |
826.35 |
987.55 |
Current Liabilities |
14957.26 |
12258.46 |
15055.00 |
13289.98 |
Total Liabilities |
15783.62 |
13246.01 |
15881.35 |
14277.53 |
Equity Liabilities |
22391.27 |
18131.39 |
23069.06 |
19431.38 |
Property, Plant and Equipment |
2555.85 |
2598.34 |
2558.67 |
2621.01 |
Intangible Assets |
175.34 |
205.78 |
175.34 |
205.78 |
Other Non-Current Assets |
993.59 |
924.39 |
1156.90 |
981.04 |
Current Assets |
18666.49 |
14402.88 |
19178.15 |
15623.55 |
Total Assets |
22391.27 |
18131.39 |
23069.06 |
19431.38 |
Notes:
1. The above figures are extracted from the audited standalone and consolidated financial statements as per Indian Accounting Standards (Ind AS).
2. These are companyâs first financial statement prepared in accordance with IND AS.
3. IND AS permits a first time adopter to elect to continue with the carrying value for all its property, plant and equipment as recognized in the financial statements as at date of transition to IND AS, measured as per previous GAAP and use that as its deemed cost as at date of transition. This exemption can also be used for intangible assets covered by IND AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.
1. Financial Performance Revenue - Standalone
On a standalone basis in fiscal 2018, our Revenue from operations has shown only a slight increase to Rs. 13,625.70 Lakhs from Rs. 13,613.04 Lakhs in the previous fiscal 2017 thereby registering a marginal growth of 0.1%. Certain service contracts in previous GAAP were recorded using the completed contract method, however the same are now recorded as per principles laid down under IND AS 18 i.e. percentage of completion method. Out of total revenue from operations, 84.53% came from Enterprise Geospatial and Engineering Services, 13.76% from Software products and 1.71% came from Power generation.
Revenue - Consolidated
On a consolidated basis in fiscal 2018, our Revenue from operations has declined to Rs. 14,069.69 Lakhs from Rs. 14,394.76 Lakhs in fiscal 2017, thereby registering a decrease of 2.26%. The decrease was due to diminution in the Geospatial business revenue from ADCC Infocom Pvt Ltd, our subsidiary company. Certain service contracts in previous GAAP were recorded using the completed contract method, however the same are now recorded as per principles laid down under IND AS 18 i.e. percentage of completion method. Out of total revenue from operations, 82.69% came from Enterprise Geospatial and Engineering Services, 15.65% from Software products and 1.66 % came from Power generation.
Profits - Standalone
The Profit before tax and exceptional items is Rs.206.10 Lakhs (1.48 % of revenue), as against Rs. 103.45 Lakhs (0.75 % of revenue) in previous year. Profit after exceptional items and tax is Rs. 140.92 Lakhs (1.02% of revenue) as against Rs.14.03 Lakhs (0.10 % of revenue) in previous year. The total comprehensive income for the fiscal 2018 amounts to Rs. 163.61 Lakhs(1.18% of revenue) as against Rs. 9.22 Lakhs (0.07% of revenue) in the Fiscal 2017. It can be observed that there is remarkable increase in profit ratio despite the nominal increase in the Revenue.
Profits - Consolidated
The Profit before tax and exceptional items is Rs. 317.07 Lakhs (2.21% of revenue), as against Rs. 499.65 Lakhs (3.43 % of revenue) in previous year. Profit after exceptional items and tax is Rs. 452.49 Lakhs (3.16% of revenue), as against Rs. 557.45 Lakhs (3.82% of revenue) in previous year. The total comprehensive income for the fiscal 2018 amounts to Rs. 490.34 Lakhs (3.42% of revenue) as against Rs. 562.11 Lakhs (3.86% of revenue) in the Fiscal 2017. Profit before tax and exceptional items decreased due to diminution in the Geospatial business revenue in subsidiary which use to provide higher margins.
EPS
Basic earnings per share increased to Rs.1.35/- for Fiscal 2018 as compared to previous Fiscal 2017 of Rs. 0.14/-. Diluted earnings per share increased to Rs.1.34/- for Fiscal 2018 as compared to previous Fiscal 2017 of Rs. 0.14/-.
Dividend
Your directors have recommended a final dividend of Rs.1.25 per share for Fiscal 2018 aggregating to Rs.1,38,63,050/- subject to approval of Shareholders at the ensuing Annual General Meeting ofthe Company to be held on 29th September , 2018.
The Payment of Dividend is Subjected to Approval of Shareholders at the ensuing Annual General Meeting.
Share Capital
Pursuant to the approval of shareholders through Postal Ballot on 4th August, 2017, the authorized share capital of the company increased from Rs 1000 Lakhs to Rs 2000 Lakhs in the Fiscal 2018 by creation of additional 100 Lakhs equity shares of Rs. 10/- each.
The Company has issued 38,395 shares under ADCC Employee stock option plan, 2014 on 29th March, 2018 to eligible employees. The Company has issued 9,13,825 bonus shares in the ratio of 1 bonus share for each 10 existing equity shares on 11th August, 2017 and accordingly adjusted Rs. 91. 38 Lakhs against Securities Premium Account. The Company has made preferential allotment of 10,00,000 Equity Shares at a premium of Rs. 160/per share having face value of Rs 10/- each at an issue price of Rs. 170/- per share on 15 November, 2017.
Transfer to Reserves
The Company has not transferred any amount to the general reserve account during the reporting period.
Capital Expenditure on tangible assets
In Fiscal 2018, on a standalone basis, we incurred capital expenditure of Rs 334.17 Lakhs as compared to previous Fiscal 2017 of Rs 289.37 Lakhs.
2. Extract of Annual Return
The details forming part of the extract of the Annual Return in form MGT 9 is annexed herewith as Annexure 5 to Boardâs report as per section 92(3) of Companies Act, 2013.
3. Particulars of Loans, Guarantee and Investment
Loans, guarantees and investments covered under Section 186 of the Companies Act, 2013 forms part of the Notes to the standalone financial statements provided in this Annual Report.
4. Public Deposits
In terms of the provision of Chapter V of the Companies Act, 2013 read with the relevant rules, your Company has not accepted any Public deposit during the year under review.
5. Particulars of Contracts or Arrangements made with Related Parties
All contracts/ arrangements/transactions entered into by the Company during the financial year with the related party were in its ordinary course of business and on at armâs length basis.
As per the provisions of regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated and adopted Policy on Related Party Transactions, details of the same are provided in Annexure 8 to the Boardâs report.
There were no material significant related party transactions made by the Company which could have potential conflict with the interest of the Company at Large. Particulars of contract or arrangements with related parties referred to in Section 188 (1) of Companies Act, 2013, in the prescribed Form AOC-2, is appended as Annexure 2 to this Boardâs report.
6. Material Events occurring after Balance Sheet date
The Board of Directors at their meeting held on May 28, 2018 and Shareholders through postal ballot & E-Voting approved the adoption of new set of Articles of Association of the Company; redesignation of Mr. Sagar Meghe from Whole Time Director with the Nomenclature of Chairman to Managing Director with the Nomenclature of Chairman and Managing Director of the company, Appointment of Dr. Hemant Thakare as Whole Time Director with the Nomenclature of Chief Operating Officer of the company, Appointment of CA Dinesh Kumar Singh as Whole Time Director with Nomenclature of Director-Finance and Chief Financial Officer ofthe company.
7. Board Policies
The details of the policies approved and adopted by the board are provided in Annexure 8 to the Boardâs report.
8. Risk Management
Risk Management is an integral and important component of Corporate Governance. Your Company believes that a robust Risk Management system ensure adequate controls and monitoring mechanisms for a smooth and efficient running ofthe business.
A risk-aware organization is better equipped to maximize the shareholder value. In the light of above, your Company at its Board meeting held on February 13, 2018 formed an IT and Risk Management Committee. The Companyâs Business Risk Management Framework helps in identifying risks and opportunities that may have a bearing on the organizationâs objectives, assessing them in terms of likelihood and Magnitude of impact and determining a response strategy. The details pertaining to the composition, terms of reference, etc. of the IT and Risk Management Committee are given in the Report on Corporate Governance section forming part ofthis Annual Report.
9. Business Description
Ceinsys offers state-of-the-art Geospatial, Engineering & IT Solutions with a specific Business focus in Infrastructure, Government and Defence & Security segments. It brings together deep domain expertise, strong financials, skilled resource base and 20 years of experience in meeting a variety of customer needs in geospatial, engineering and IT services. Ceinsys offers value added services to companies requiring help in getting spatial information mapped and interpreted.
Ceinsys focuses on providing a high quality end-user experience, while streamlining the underlying workflows and improving efficiency. The present domain expertise includes GIS, Remote Sensing, Photogrammetry, Highway Engineering, Heritage Mapping, Electrical Solutions, Water and sewerage solutions, Engineering Design Services and enterprise level End to End Solutions using Web GIS. Our solutions have wide market segment addressability. Ceinsys also initiated and introduced LiDAR (Laser based technology) and Unmanned Aerial Surveys (UAS) for Highway asset Management (also called Road Asset Management System - RAMS). Ceinsys is very well positioned to address these large opportunities.
Strategy
In order to fulfil business objectives and to meet the demands of present and future, we have to have a proper roadmap in place. Your Company has developed a Strategic Management Plan which deals with challenges, opportunities, and new initiatives that would lead to growth for company and its Stakeholders. Your company conducts its strategic planning through a defined and structured mechanism and builds up an integrated platform in IT, Geospatial & Engineering Tech Solutions, which enables us to serve our clients to the best of requirements.
Last year we rebranded the corporate identity from ADCC to Ceinsys, your Company has taken a path of becoming a world class IT organization; to position itself as a holistic solution provider in Geospatial, Engineering and IT Space. By creating roadmap for next 5 years with respect to Market, Industry Trends along with Government spending in Infrastructure & Information Technology space it will scale up its capability in Infrastructure, Government and Defence & Security Solutioning.
Your company will signup Technology Partnerships for empowering itself in providing end to end solution offering as one stop shop and bring in the right talent to cater the business needs ofthe company.
Along with these mentioned initiatives, Ceinsys have also planned to audit, standardize, streamline & develop processes that would help Middle Management Team and in turn, the company, to holistically manage its organisation structure, processes, practices employees, customers & infrastructure in accordance with its business objectives. Ceinsys also look forward in implementing effective systems of Learning & Development, Employee Engagement & Performance Management System for its employees towards their contribution in the growth path.
10. Human Resource Development
Ceinsys Tech Limited considers its employees as most valuable resource and ensures strategic alignment of Human Resource practices to business priorities and objectives. The Company strives to provide a conducive and competitive work environment to help the employees excel and create new benchmarks of productivity, efficiency and customer delight.
The Human Resource agenda continues to support the business in achieving sustainable and responsible growth by building the right capabilities in the organisation. It continues to focus on progressive employee relations policies, creating an inclusive work culture and a strong talent pipeline.
The company is known for having the best people practices for developing future leaders. The ability to attract the best talent, provides a competitive edge to the organisation. A series of programmes like maternity and paternity support, Career by Choice and location flexibility have helped in driving the Inclusion and Diversity agenda. The company continues to focus on driving inclusion through building leadership capability and recognising line managers who provide a simple, flexible and respectful work environment for their teams.
The Human Resource function of the Company achieved many milestones by strengthening its base through Capability Development Initiatives, Gender Diversity and Digitisation etc. The company drives sustainable growth by leveraging employee-potential through capability development initiatives in line with market expectations and by reducing cost and complexity in rehiring new talent. The company is focussed on building a high-performance culture with a growth mind-set, where employees are engaged and empowered to be the best they can be. Developing and strengthening capabilities of all employees in the company has remained an on-going priority.
The Company comprises a strong team of professionals, who are result oriented, committed and loyal. As on March 31, 2018, the Company had 418 employees on its rolls. Please refer a separate Report on Human Resource Management given in Management Discussion Analysis which form part ofthis Annual Report.
11. Management Discussion and Analysis
In terms of the provisions of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Management Discussion and Analysis Report is presented in a separate section forming part ofthis Annual Report.
12. Subsidiaries
As on 31, March 2018, The Company has no Associate Company, Operating Joint Venture and have only two Subsidiaries which are as follows:-
1. ADCC Infocom Private Limited;
2. ADCC Technology Zambia Limited
During the year, the Board of Directors (âthe Boardâ) reviewed the affairs of its subsidiaries. In accordance with Section 129(3) of the Companies Act, 2013, we have prepared consolidated financial statements of the Company and its subsidiaries, which form part of the Annual Report. Further, a statement containing the salient features of the financial statement of our subsidiaries in the prescribed format AOC-1 is appended as Annexure 1 to the Boardâs report.
The statement also provides details of the performance and financial position of each of the subsidiaries. In accordance with Section 136 of the Companies Act, 2013, the audited financial statements, including the consolidated financial statements and related information of the Company and audited accounts of each of its subsidiaries will be available for inspection till the date of AGM during business hours at our registered office.
During the year, the company has sold the following companies:
1. A I Instruments Private Limited
2. ADCC International East Africa Limited
3. ADCC Tech Limited
13. Corporate Governance
Your Company strives to ensure that best corporate governance practices are identified, adopted and consistently followed. Your Company believes that good governance is the basis for sustainable growth of the business and for enhancement of stakeholder value. Your Directors reaffirm their continued commitment to good corporate governance practices. It is an ethically driven business process that is committed to values aimed at enhancing an organizationâs brand and reputation. This is ensured by taking ethical business decisions and conducting business with a firm commitment to values, while meeting stakeholdersâ expectations. A detailed report on Corporate Governance forms an integral part of Annual Report and is set out as separate section therein.
14. Audit reports and Auditors Audit reports
- The Auditorsâ report for fiscal 2018 does not contain any qualification, reservation or adverse remark. The Auditorâs Report is enclosed with the financial statements in this Annual Report.
- CS Sushil Kawadkar is a Practising Company Secretary having FCS No: 5725 & CP No.: 5565
- The Secretarial Auditorsâ Report for fiscal 2018 does not contain any qualification, reservation or adverse, but have some observation which forms part of report. The Board has replied on the observation and forms part of the same report. In terms of provisions of sub-section 1 of section 204 of the Companies Act, 2013, the Company has annexed to this Boardâs report as Annexure-4, a Secretarial Audit Report given by the Secretarial Auditor.
- As required under SEBI (Listing obligation and disclosure requirement) regulation, 2015, the Practicing Company Secretaryâs Certificate on Corporate Governance is appended as Annexure-10. The appended report does not contain any qualification, reservation or adverse remarks.
Auditors
- Statutory Auditors
M/s. Price Waterhouse Chartered Accountants LLP (FRN 012754N/N500016) (âPrice Waterhouseâ) was appointed as Statutory Auditor of the Company on 26th September, 2017 for a period of One (1) year who shall hold office until the conclusion of the ensuing Annual General Meeting (âAGMâ), of the Company. The Company has received Special Notice under Section 140 (4) of the Companies Act, 2013 for appointment of Chaturvedi & Shah, Chartered Accountants in place of retiring Auditor.
On the receipt of the Special Notice under Section 140 (4) of the Companies Act, 2013, the Board under the guidance of the Audit Committee initiated the process of selection of Chaturvedi & Shah, Chartered Accountants and had detailed interactions with them and assessed them against a defined eligibility and evaluation criteria.
The Board, at its meeting held on 4th September, 2018 considered the recommendations of the Audit Committee with respect to the appointment of Chaturvedi & Shah, Chartered Accountants as the statutory auditor. Based on due consideration, the Board recommends for your approval the appointment of Chaturvedi & Shah, Chartered Accountants as the statutory auditor of the Company.
Accordingly resolution has been proposed for appointment of Chaturvedi & Shah, Chartered Accountants as Statutory Auditor of the Company in terms of Section 139, 140(4), 141, 142 and other applicable provisions, if any, of the Companies Act, 2013 and Rules thereunder for a period of Five (5) years.
- Secretarial Auditors
Pursuant to the provisions of section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. Sushil Kawadkar, Practicing Company Secretary to undertake the Secretarial Audit ofthe Company.
15. Reporting of Fraud by Auditors
During the year 2017-18, neither the statutory auditors nor the secretarial auditor has reported any instances of fraud committed against the Company by its officers or employees under section 143(12) ofthe Companies Act, 2013.
16. Segment Reporting
The Companyâs operating segments are established on the basis of those components of the Company that are evaluated regularly by the Board in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of services, the differing risks and returns and the internal business reporting systems.
17. Board of Directors and its Meeting
The Company has a professional Board with right mix of knowledge, skills and expertise with an optimum combination of Executive, Non-Executive and Independent Directors including Woman Director. The Board provides strategic guidance and direction to the Company in achieving its business objectives and protecting the interest of the stakeholders. The Board met Eight (8) times during the financial year.
The maximum interval between any two meetings did not exceed 120 days, as prescribed under Companies Act, 2013.
The details pertaining to the composition, terms of reference, etc. of the Board of Directors of the Company and the meetings thereof held during the financial year are given in the Report on Corporate Governance section forming part ofthis Annual Report.
18. Directorsâ Responsibility Statement
The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on accrual basis except for certain financial instruments, which are measured at fair values, the provisions of the Act (to the extent notified) and guidelines issued by SEBI. Ind AS are prescribed under section 133 of Companies Act, 2013, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. Effective April 1, 2017, the Company has adopted all the Ind AS standards and the adoption was carried out in accordance with the applicable transition guidance. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or the revision to an existing accounting standard requires a change in the Accounting policy hitherto in use.
Pursuant to Section 134(5) ofthe Companies Act, 2013, the board of directors, to the best of their knowledge and ability, confirm that:
I. In the preparation of the annual accounts, 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 ofthe Company at the end ofthe financial year and ofthe profit ofthe 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 Act 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 such internal financial controls are adequate and operating effectively;
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
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory and secretarial auditors and external consultants and the reviews performed by management and the relevant board committees, including the audit committee, the board is of the opinion that the Companyâs internal financial controls were adequate and effective during the financial year 2017-18.
19. Internal Financial Controls with Reference to the Financial Statements
The Company has in place proper and adequate internal financial control systems commensurate with the nature of its business, size and complexity of its operations. Internal financial control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, compliance with policies, procedure, Applicable laws and regulations and that all assets and resources are acquired economically, used efficiently and adequately protected.
The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company and its subsidiaries and reports the same on quarterly basis to Audit Committee.
20. Declaration of Independence by Independent Director
The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013 and that he/she meets with the criteria of independence, as prescribed under Section 149(6) of the Companies Act, 2013 and Regulation 16(b) and 25 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
21. Board Evaluation
The provision of sec. 149(8) of Companies Act, 2013 states that a formal annual evaluation needs to be made by the Board of its own performance, its Chairman and that of individual directors. Further Schedule IV of the Companies Act, 2013 states that the performance evaluation of independent directors shall be done by the entire Board of Directors, excluding the director being evaluated.
Further the Independent Director has to review the assess of Quality, Quantity & Timeliness of flow of Information between the Company management and Board to Perform their Duties effectively. The Nomination and Remuneration Committee of the Company has laid down the criteria for performance evaluation of the Board, its Committees and individual directors including Independent Directors.
The evaluation of all the directors and the Board as a whole was conducted based on the criteria and framework adopted by the Board. The evaluation process has been explained in the Corporate Governance Report section in this Annual Report.
22. Familiarisation Programmes for Board Members
The Board members are provided with necessary documents / brochures, reports and internal policies to enable them to familiarise with the Companyâs procedures and practices. Periodic presentations are made on business and performance updates of the Company, business strategy and risks involved and given to the Directors. The Directors are also updated with various regulations prevailing at the time and the new judicial pronouncements.
Presentations on the latest technology and software developed by the company are also organised for the Independent Directors to enable them to understand the operations ofthe Company.
23. Directors and Key Managerial Personnel
The following changes were made during the year:
- Mr. Sameer Meghe resigned as Vice-Chairman and Whole Time Director ofthe Company on May 31, 2017. The Board places on record its appreciation of the contribution made by Mr. Sameer Meghe as Vice-Chairman and Whole Time Director of the Company.
- Mr. Atul Dev Tayal was appointed as Managing Director with the Nomenclature of Vice Chairman and Sr. Managing Director effective from July 01, 2017.
- Mr. Dhruv Kaji was appointed as an Additional Director in the category of non-executive and Independent Director of the Board effective from July 14, 2017 and the shareholders at the 19th Annual General Meeting held on September 26, 2017 have regularize his appointment as non-executive and Independent Director effective from July 14, 2017 for a term of Five (5) years i.e. up to July 13, 2022.
- Mr. Satish Wate was appointed as an Additional Director in the category of non-executive and Independent Director of the Board effective from July 14, 2017 and shareholders at the 19th Annual General Meeting held on September 26, 2017 have regularize his appointment as non-executive and Independent Director effective from July 14, 2017 for a term of Five (5) years i.e. up to July 13, 2022.
- Ms. Renu Challu was appointed as an Additional Director in the category of non-executive and Independent Director of the Board effective from August 31, 2017 and shareholders at the 19th Annual General Meeting held on September 26, 2017 have regularize her appointment as non-executive and Independent Director effective from August 31, 2017 for a term of Five (5) years i.e. up to August 30, 2022.
- Mr. Chandrakant Tiwari resigned effective from August 31, 2017. The Board places on record its appreciation of the contribution made by Mr. Chandrakant Tiwari as Independent Director ofthe Company.
- Mr. George Jacob resigned effective from August 31, 2017. The Board places on record its appreciation of the contribution made by Mr. George Jacob as Independent Director of the Company.
- Mr. Jinesh Vora resigned from the post of Company Secretary effective from August 31, 2017.
- Mr. Saugata De was appointed as Company Secretary and Chief Compliance Officer effective from August 31, 2017.
- Mr. Kishore Dewani was appointed as an Additional Director in the category of non-executive and Independent Director of the Board by passing resolution by circulation effective from January 15, 2018 and who shall hold office till the ensuing 20th Annual General Meeting to be held on September 29, 2018. Pursuant to section 160 of the Companies Act, 2013, your Company has received separate notices proposing the appointment of Mr. Kishore Dewani as an Independent Director on the Board at the ensuing Annual General Meeting. Accordingly, the Board recommends his appointment as an Independent Director. The resolution confirming the above appointment forms part of the notice of Annual General Meeting. We seek your support in confirming the above appointment.
- Mr. Saugata De resigned effective from March 29, 2018. The Board places on record its appreciation of the contribution made by Mr. Saugata De as Company Secretary and Chief Compliance Officer ofthe Company.
- Mr. Jinesh Vora was appointed as Company Secretary cum Compliance Officer effective from March 29, 2018 consequent to resignation of Mr. Saugata De.
- Mr. Amit Somani resigned effective from March 29, 2018. The Board places on record its appreciation of the contribution made by Mr. Amit Somani as Managing Director of the Company.
- Mr. Atul Dev Tayal resigned effective from March 29, 2018. The Board places on record its appreciation of the contribution made by Mr. Atul Dev Tayal as Vice Chairman and Sr. Managing Director ofthe Company.
- In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Dr. Abhay Kimmatkar is liable to retire by rotation at the ensuing 20th Annual General Meeting (AGM). Dr. Abhay Kimmatkar has confirmed his eligibility and willingness to accept the office of Director of your Company, if confirmed by the Members at the ensuing AGM. In the opinion of Directors, the Company will continue to benefit Dr. Abhay Kimmatkar in his capacity as the Joint Managing Director of the Company. The Board recommends and seeks your support in confirming reappointment of from Dr. Abhay Kimmatkar. The profile and particulars of experience, attributes and skills that qualify from Dr. Abhay Kimmatkar for the Board membership is disclosed in the Notice ofthe Annual General Meeting.
24. Policy on Directors Appointment, Remuneration and other details
The Nomination and Remuneration Committee (âNRCâ) of Ceinsys Tech Limited (the âCompanyâ), has adopted the policy and procedures with regard to identification and nomination of persons who are qualified to become directors and who may be appointed in senior management. This policy is framed in compliance with the applicable provisions of Regulation 19 read with Part D of the Schedule II of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 (âthe Regulationsâ) and Section 178 and other applicable provisions of the Companies Act, 2013.
The Board has also approved a Policy relating to remuneration of Directors, members of Senior Management and Key Managerial Personnel other matters provided in Section 178(3) of the Companies Act, 2013 is available on Companyâs website, at http://www.ceinsys.com/investors/Policies/Nomination-&Remuneration-Policy.pdf
Salient features of nomination & remuneration policy:
a. ensuring the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate directors ofthe quality required to run the company successfully.
b. ensuring that the relationship of remuneration to performance is clear and meets appropriate performance benchmarks;
c. determining the Companyâs policy on specific remuneration package for the Managing Director / Executive Director including pension rights.
d. ensuring that the remuneration to directors, key managerial personnel and senior management involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the company and its goals.
e. deciding the salary, allowances, perquisites, bonuses, notice period, severance fees and increment of Executive Directors.
f. defining and implementing the Performance Linked Incentive Scheme (including ESOP of the Company) and evaluating the performance and determining the amount of incentive of the Executive Directors for the same.
g. deciding the amount of Commission payable to the Whole time Directors, if any
h. reviewing and suggesting revision of the total remuneration package of the Key Managerial Personnel and Executive Directors after keeping in view the performance of the Company, standards prevailing in the industry, statutory guidelines etc.
i. formulating and administering the Employee Stock Option Scheme.
j. promoting and developing a high performance workforce in line with the Company strategy.
25. Committees of the Board
The Board has six committees:
1. Audit Committee
2. Nomination and Remuneration Committee
3. Corporate Social Responsibility Committee
4. Stakeholders Relationship & Investor Grievances Committee
5. Information Technology and Risk Management Committee*
6. Management Committee
*IT and Risk Management Committee was constituted by the Board at their meeting held on February 13,2018.
Board is responsible for direction, control, conduct management and supervision of the companyâs affairs. It has established effective corporate governance procedures and best practices in the company. Committees appointed by the Board focus on specific areas and take informed decisions within the framework of delegated authority, and make specific recommendations to the Board on matters in their areas or purview. All decisions and recommendations of the committees are placed before the Board for information or for approval.
The details of the powers, functions, composition and meetings of the Committees of the Board held during the year are given in the Report on Corporate Governance section forming part of this Annual Report.
26. Conservation of Energy, Technology Absorption, Foreign exchange earnings and outgo
The particulars as prescribed under Sub-section (3)(m) of Section 134 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, are mentioned as Annexure-9 to the Boardâs report.
27. Employee Stock Option Plans
The Nomination and Remuneration Committee (NRC) of the Board of the Company, inter alia, administers and monitors the Employeesâ Stock Option Scheme of the Company in accordance with the applicable provisions of SEBI Guidelines. Your Company has issued and implemented the Employees Stock Option Scheme (âSchemeâ) named as ADCC ESOP 2014 in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (âthe SEBI Regulationâ) as a measure to reward and motivate employees as also to attract and retain the talent to its employees. Details of the stock options granted under ADCC ESOP 2014 are annexed to this Report as Annexure-7.
During the year under review, the Company has allotted 38,395 shares pursuant to âADCC Employee Stock Option Plan, 2014â on March 29, 2018. The issuance of shares pursuant to the said scheme has resulted in the increase in number of Equity shares issued by the Company which stands at 1,10,90,440 shares as on March 31, 2018.
28. Corporate Social Responsibility
The Company is committed to conduct its business in a socially responsible, ethical and environmental friendly manner and to continuously work towards improving quality of life of the communities in its operational areas. The Board of Directors at its meeting held on July 26, 2014 had constituted Corporate Social Responsibility (CSR) Committee in accordance with Section 135 of Companies Act, 2013 read with rules formulated therein. The CSR agenda is planned in consultation with the CSR committee members through a systematic independent need assessment we believe in positive relationships that are built with constructive engagement which enhances the economic, social and cultural well-being of individuals and regions connected to our activities. The Company had adopted a detailed policy on Corporate Social Responsibility and also discussed and identified the core areas in which the CSR activities was proposed to be carried out in the CSR Committee Meetings from time to time. The Corporate Social Responsibility Policy can be accessed on the Companyâs website at the link: http://www.ceinsys.com/investors/Policies /CorporateSocial-Responsibility-Policy.pdf The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure-6 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014.
Salient features of Corporate social responsibility policy:
I. Identifying broad areas of intervention in which the company can undertake projects;
ii. to serve this policy as a guiding document in executing and monitoring CSR projects;
iii.undertaking broad criteria for implementation agencies;
iv. ensuring an increased commitment at all levels in the organization;
v. directly or indirectly taking up programs that benefit the communities in & around its work centres that leads to enhancing the quality of life & economic well - being ofthe local populace.
29. Secretarial Standards
The Company duly complies with all applicable secretarial standards.
30. Vigil Mechanism (Whistle Blower Policy)
In terms of the section 177(9) of companies act, 2013 and rules framed thereunder, your Company has established a âWhistle Blower Policy and Vigil Mechanismâ for directors and employees it provides a channel to the employees to report to the appropriate authorities concerns about unethical behavior, Actual or suspected, fraud or violation of the Companyâs code of conduct policy and provides safeguards against victimization of employees who avail the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases. Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone line or a letter to the concerned authorities. The details of the vigil mechanism (whistle blower policy) are given in Annexure-8 ofthis board report.
31. Prevention of Insider Trading
The Securities and Exchange Board of India (SEBI) vide notification dated January 15, 2015 has put in place a new framework for prohibition of Insider Trading in Securities and to strengthen the legal framework thereof. These new regulations of the SEBI under the above notification have become effective from May 15, 2015. Accordingly, the Board has formulated Insider Trading Policy in accordance with Regulation 8 & 9 of Insider Trading Regulations, 2015 for regulating, monitoring and reporting of Trading of Shares by Insiders. The Code lays down guidelines, procedures to be followed and disclosures to be made while dealing with shares of the Company. The details of the Code of Conduct & Fair Disclosure for Prohibition of Insider Trading are given in Annexure-8 ofthis board report.
32. Legal, Governance and Brand Protection
Your Company continued to focus on the key areas and projects within the Legal, Compliance and Corporate Affairs functions. The Company has established a vigil mechanism for Directors and employees to report their genuine concerns.
33. Enhancing Shareholders Value
Your Company believes that its Members are among its most important stakeholders. Accordingly, your Companyâs operations are committed to the pursuit of achieving high levels of operating performance and cost competitiveness, consolidating and building for growth, enhancing the productive asset and resource base and nurturing overall corporate reputation.
34. Listing on Stock Exchange
The Companyâs Shares were listed on SME Platform of BSE Limited on October 22, 2014. In Fiscal 2018, the Company has migrated from the SME platform to the main board of BSE Limited in fiscal 2018.
35. Significant and Material Orders Passed by the Regulators or Courts or Tribunals Impacting the Going Concern Status of the Company
There are no orders passed by the Regulators or Courts or Tribunals which would impact the going concern status and the Companyâ future operations.
36. Sexual Harassment of Women at Workplace:
The Company has zero tolerance towards sexual harassment at the workplace and has adopted a Policy on Prevention of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder. The details of the policy are given in Annexure-8 of this board report.
During the year, the Company has not received any complaints of sexual harassment.
37. Green Initiatives
Electronic copies of Annual Report 2017-2018 and the Notice of 20th Annual General Meeting are sent to all the members whose email addresses are registered with the company/depository participant. For members who have not registered their email address, physical copies are sent in the permitted form.
38. Acknowledgement
Your Directors place on record their appreciation to the Government of India, the Securities and Exchange Board of India, the Stock Exchanges and other regulatory authorities for their valuable guidance and support and wish to express our sincere appreciation for their continued co-operation and assistance. We look forward to their continued support in future. We wish to thank our bankers, investors, rating agencies, customers and all other business associates for their support and trust reposed in us.
Your Directors express their deep sense of appreciation for all the member of the Ceinsys family whose commitment, co-operation, active participation, dedicated efforts, consistent contribution and professionalism at all levels has made the organizationâs growth possible.
Finally, the Directors thank you for your continued trust and support.
For and on behalf of the Board
Place : Nagpur Sagar Meghe
Date: 4th September 2018 (Chairman & Managing Director)
Mar 31, 2016
Dear Shareholders,
The Directors have pleasure in submitting their Eighteenth Annual Report of the Company together with the Audited Financial Statements for the year ended March 31, 2016.
1) FINANCIAL RESULTS
We are delighted to present the report on our business and operations for the year ended March 31, 2016.
Standalone |
Consolidated |
|||
2016 |
2015 |
2016 |
2015 |
|
Total Income |
1,25,86,35,082 |
98,44,85,473 |
1,34,06,90,901 |
1,08,67,34,364 |
Profit before interest, depreciation and taxes |
26,14,58,561 |
19,58,38,333 |
23,87,84,999 |
20,09,10,519 |
Finance Cost |
11,04,89,842 |
7,47,67,032 |
11,53,86,692 |
7,50,66,984 |
Depreciation |
2,88,72,727 |
2,36,07,319 |
3,02,77,998 |
2,44,96,298 |
Provision for income tax |
4,78,61,880 |
3,18,33,806 |
4,78,86,782 |
3,20,00,036 |
Prior Period item: |
||||
Depreciation |
0 |
0 |
0 |
0 |
Employee benefit |
0 |
0 |
0 |
0 |
Net Profit for the year |
7,42,34,112 |
6,56,30,176 |
4,52,33,527 |
6,93,47,200 |
Dividend |
90,99,475 |
67,95,000 |
- |
- |
Dividend tax |
1 8,52,471 |
13,83,326 |
- |
- |
Net worth |
43,55,45,334 |
37,01,40,540 |
- |
- |
Earnings per Share (EPS) ( Basic) |
8.19 |
7.24 |
- |
- |
Earnings per Share (EPS) ( Diluted) |
8.07 |
7.10 |
- |
- |
2) COMPANY''S PERFORMANCE:
Revenues Standalone
Total Income on Standalone basis in Financial year 2015-16 increased to Rs, 1,25,86,35,082/- from Rs, 98,44,85,473/-in the previous year 2014-15, at a growth rate of 28%. Profit before interest, tax, depreciation (EBITD) were Rs, 26,14,58,561/- registering a growth of 34% over EBITD of Rs, 19,58,38,333/- in 2014-15. Profit before tax (PBT) for the year was Rs, 12,20,95,992/- recording a growth of 25% over the PBT of Rs, 9,74,63,982/- in 2014-15. Profit after tax (PAT) for the year was Rs, 7,42,34,112/- recording a growth of 13% over the PAT of Rs, 6,56,30,176/- in 2014-15.
Revenues Consolidated
Our Total Income on Consolidated basis in Financial year 2015-16 increased to Rs, 1,34,06,90,901/- from Rs, 1,08,67,34,364/- in the previous year 2014-15, at a growth rate of 23 %. Profit before interest, tax, depreciation (EBITD) was Rs, 23,87,84,999/- registering a growth of 18 % over EBITD of Rs, 20,09,10,519/- in 2014-15. Profit before tax (PBT) for the year was Rs, 9,31,20,309 /- recording a decline of 8.8% over the PBT of Rs, 10,13,47,237 /- in 2014-15. Profit after tax (PAT) for the year was Rs, 4,52,33,527/- recording a decline of 0.53 % over the PAT of Rs, 6,93,47,200/- in 2014-15.
3) DIVIDEND:
In continuation of earlier trend of declaring cash dividend and keeping in mind the overall performance and the outlook for your Company, the directors are pleased to recommend for approval of the members, at the ensuing Annual General Meeting, a final dividend of Rs, 1/- per share for the financial year 2015-16 aggregating to Rs, 90,99,475/-. The equity dividend outgo for the Financial Year 2015-16, if approved by the members would involve a cash outflow of Rs, 1,09,51,946 /- including dividend tax for financial year 2015-16. A
The Final Dividend, subject to the approval of Members at the Annual General Meeting on September 29, 2016, will be paid on or after October 10, 2016 to the Members whose names appear in the Register of Members, as on the date of book closure, i.e. from September 24, 2016 to September 29, 2016 (both days inclusive).
4) TRANSFER TO RESERVES:
The Company has not transferred any amount to the general reserve account during the reporting period.
5) EXTRACT OF ANNUAL RETURN:
The details forming part of the extract of the Annual Return in form MGT 9 is annexed herewith as Annexure 6 to Director''s Report.
6) PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
Loans, guarantees and investments covered under Section 186 of the Companies Act, 2013 forms part of the notes to the standalone financial statements provided in this Annual Report.
7) PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:
The Company has adequate internal Control systems and follows procedures for purpose of identification and monitoring of related party transactions. All related party transactions are periodically placed before the Audit Committee for review and approval, as appropriate. The Company is listed on SME platform of BSE, thus the provisions of regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding formulation of policy on materiality of related party transactions is not applicable to the Company. There were no materially significant related party transactions made by the Company with promoters. Directors, key managerial personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Particulars of contracts or arrangements with related parties referred to in Section 188(1) of the Companies Act, 2013, in the prescribed Form AOC-2, is appended as Annexure 2 to the Board''s report.
8) STATE OF COMPANY''S AFFAIRS:
The Company is an ITES Company serving in Geospatial Services & Solutions. It has emerged as a specialist in GIS & Engineering Services Solutions provider as well in infrastructural deliverables. The company offers diversified services to address engineering challenges in an increasingly complex world while making continual advancement in the infrastructure, technology and resources to various engineering industry verticals.
The Company has developed GIS Services & Solutions with infrastructure facilitation (water & electricity), to capture, to integrate, to analyze, to design, to manage and present all types of geographical data / information in the fields of GIS, Remote Sensing, LiDAR (Light Detection And Ranging), Photogrammetric, Energy System & Solutions, outright Infrastructural Solutions (Electricity & Water), Emergent with Building Information Modeling (BIM), SMART Solutions and SMART grid catering to SMART Cities, Surveys and Customized Software Application Development.
9) MATERIAL EVENTS OCCURRING AFTER BALANCE SHEET DATE:
The Promoters of the Company Mr. Sagar Meghe, Mr. Sameer Meghe and their spouses Mrs. Devika Meghe and Mrs. Vrinda Meghe respectively has made an open offer pursuant to regulation 3(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 were the said persons are acting as acquirer(s) to acquire up to 23,65,864 equity shares representing 26% of the total paid up equity share capital of the Company. The said offer will result into a considerable change in shareholding pattern of the Company.
The Board has proposed a postal ballot on 28th May, 2016 for the approval of shareholders which they approved through E-voting and Postal Ballot Form the result of which declared on 06th July, 2016. The business transacted through postal ballot includes Alteration of Main object clause of Memorandum of Association, change in designation and remuneration of Mr. Sagar Meghe as whole time director with the nomenclature of chairman of the Company and to consider change in remuneration of Mr. Sameer Meghe, Mr. Amit Somani and Mr. Abhay Kimmatkar.
10) FIXED DEPOSITS:
In terms of the provision of Sections 73 of the Companies Act, 2013 read with the relevant rules, your Company has not accepted any fixed deposits during the year under review.
11) MANAGEMENT''S DISCUSSION AND ANALYSIS:
In terms of the provisions of Regulation 34(2)(e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Management''s Discussion and Analysis Report on the financial condition and result of consolidated operations of the Company for the year under review is presented in a separate section forming part of the Annual Report.
12) SUBSIDIARIES:
As on March 31, 2016, we have six subsidiaries which are as follows:-
1. ADCC Infocom Private Limited;
2.AI Instruments Private Limited;
3. ADCC Academy Private Limited;
4. ADCC Tech Limited;
5. ADCC International East Africa Limited and
6. ADCC Technology Zambia Limited
During the year, the Board of Directors (''the Board'') reviewed the affairs of the subsidiaries. In accordance with Section 129(3) of the Companies Act, 2013, we have prepared consolidated financial statements of the Company and all its subsidiaries, which form part of the Annual Report. Further, a statement containing the salient features of the financial statement of our subsidiaries in the prescribed format AOC-1 is appended as Annexure 1 to the Board''s report.
The statement also provides the details of performance, financial positions of each of the subsidiaries. These documents will also be available for inspection during business hours at our registered office in Nagpur, India.
During the year. Non-current investments were made in the following subsidiaries:
1)ADCC Academy Private Limited;
2)ADCCTech Limited;
3)AI Instruments Private Limited;
4)ADCC Infocom Private Limited;
13) BUSINESS: Strategy
At ADCC our strategic objective is to build up an integrated platform in Geospatial field which enables us to serve our clients to the best of their requirements and at the same time generating profitable growth for our investors. In order to fulfill these objectives and to meet the demands of present and future, the Company in consultation with Price Water House Coopers is developing Strategic Management Plan which deals with challenges, opportunities, and new initiatives which will result into growth for company and its Stake Holders.
Human resources management
To ensure good human resources management, your Company focuses on all aspects of the employee lifecycle. In ADCC Retention has been identified as one of the areas within HR to strategize upon. As a part of HR initiative for retentions we have specifically Implemented some Industry Best practices with employee Benefits.
The Company periodically arranges Rewards and Recognitions programs at the right time for the right resource and they are in the form of monetary rewards. Paid Vacations for extraordinary performances, certificates. Awards and the Company conduct Regular surveys and Audits to judge employee Satisfaction and reviews for changes accordingly. Survey from great place to work with focus on organizational culture, employee inputs etc. Target based incentive plans and Timely annual Appraisals. This provides a holistic experience for the employ-eeas well. During their tenure at the Company, employees are motivated through various skill-development, engagement and volunteering programs.
The focus of the HRD during FY 15-16 was to give the human resources the chance to grow and nurture themselves in the organization. The focus was to develop the employee capability while maintaining a work life balance which in turn will ensure a holistic growth of each and every employee of ADCC. This approach will strengthen our aim to consider our employees as human assets. The focus was also on training and development where in each employee a mandatory 48 hours of training to enhance their skills. Another aspect to build a skilled workforce was to decentralize the recruitment process and conduct various walk in interviews at project sites to hire local talent. Recruitment was done to increase the diversity and knowledge base within the company.
Internship MOUS were tied up with prestigious GIS colleges for obtaining M. Tech and MSc students for internship programs at your Company, who were subsequently offered a permanent position with the company. Structured insurance policies were created and the information conveyed to all employees for their well-being and benefit. ADCC follows a 360 degree appraisal methodology. Self-appraisal as well as reporting authority''s evaluation is considered. Employees are also given a chance to present their views to the top management directly as well. Employee Engagement survey was one such important survey conducted amongst employees, which yielded a result of more than 90% trust amongst employees on its top management.
On the welfare side Annual sports day was conducted to make employees realize the importance of physical Fitness, health camp was also successfully done as a part of welfare of Head Office and branch offices.
14) RISK MANAGEMENT:
For your Company, Risk Management is an integral and important component of Corporate Governance. Your Company believes that a robust Risk Management ensure adequate controls and monitoring mechanisms for a smooth and efficient running of the business. A risk-aware organization is better equipped to maximize the shareholder value. Your Company has a well-defined risk management framework in place. The risk management framework works at various levels across the Company. These levels form the strategic defense cover of the Company''s risk management. The Company has a robust organizational structure for managing and reporting on risks. The Company follows well established and detailed risk assessment and minimization procedures, which are periodically reviewed by the Board. The Company''s Business Risk Management Framework helps in identifying risks and opportunities that may have a bearing on the organization''s objectives, assessing them in terms of likelihood and Magnitude of impact and determining a response strategy.
The key cornerstones of your Company''s Risk Management Framework are:
1)Periodic assessment and prioritization of risks that affect the business of your Company;
2) Development and deployment of risk mitigation plans to reduce the vulnerability to the prioritized risks;
3) Focus on both the results and efforts required to mitigate the risks;
4) Defined review and monitoring mechanism wherein the functional teams, the top management and the Board review the progress of the mitigation plans.
15) CORPORATE GOVERNANCE:
Your Company strives to ensure that best corporate governance practices are identified, adopted and Consistently followed. Your Company believes that good governance is the basis for sustainable growth of the business and for enhancement of stakeholder value. Your Directors reaffirm their continued commitment to good corporate governance practices. It is an ethically driven business process that is committed to values aimed at enhancing an organization''s brand and reputation. This is ensured by taking ethical business decisions and conducting business with a firm commitment to values, while meeting stakeholders'' expectations. The Company presents a statement of all related party transactions before the Audit Committee. A detailed report on Corporate Governance forms an integral part of Annual Report and is set out as separate section therein.
16) APPOINTMENT OF STATUTORY AUDITORS:
The Members of the Company at the Annual General Meeting of the Company held on August 26, 2014 appointed M/s. Shah Baheti Chandak & Co, Chartered Accountants (Firm Registration No.109513W) as the Statutory Auditors of the Company to hold such office till the conclusion of twentieth (20th) Annual general Meeting.
M/s. Shah Baheti Chandak & Co, Chartered Accountants have confirmed their eligibility and willingness to accept office, if appointment is ratified by the Members of the Company. The ratification of appointment of Statutory Auditors is subject to the approval of the Members of the Company. Your Directors propose ratification of appointment of M/s. Shah Baheti Chandak & Co, Chartered Accountants Co. as the Statutory Auditors of your Company.
Auditors'' report is self-explanatory and therefore does not require further comments and explanation.
17) SECRETARIAL AUDITORS'' REPORT:
Pursuant to the provisions of section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. Sushil Kawadkar, Practicing Company Secretary to undertake the Secretarial Audit of the Company.
In terms of provisions of sub-section 1 of section 204 of the Companies Act, 2013, the Company has annexed to this Board Report as Annexure-5, a Secretarial Audit Report given by the Secretarial Auditor.
18) BOARD OF DIRECTORS AND ITS MEETINGS:
The Company has a professional Board with right mix of knowledge, skills and expertise with an optimum combination of executive, non-executive and independent Directors including one woman Director. The Board provides strategic guidance and direction to the Company in achieving its business objectives and protecting the interest of the stakeholders.
One meeting of the Board of Directors is held in each quarter. Additional meetings of the Board are convened as may be necessary for proper management of the business operations of the Company. Separate meeting of independent Directors is also held at least once in a year to review the performance of non-independent Directors, the Board as a whole and the Chairman.
The details pertaining to the composition, terms of reference, etc. of the Board of Directors of the Company and the meetings thereof held during the financial year are given in the Report on Corporate Governance section forming part of this Annual Report.
19) DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to Section 134(5) of the Companies Act, 2013, the board of directors, to the best of their knowledge and ability, confirm that:
i. in the preparation of the annual accounts, 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 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 Act 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 such internal financial controls are adequate and operating effectively;
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.
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory and secretarial auditors and external consultants and the reviews performed by management and the relevant board committees, including the audit committee, the board is of the opinion that the Company''s internal financial controls were adequate and effective during the financial year 2015-16.
20) DIRECTORS AND KEY MANAGERIAL PERSONNEL:
As on March 31, 2016, your Company has 5 (five) Non-Executive Directors out of them 4 (four) are Non-Executive Independent Directors. Pursuant to Section 149 of the Companies Act, 2013, every listed company shall have at least one-third of its total strength of the Board of Directors as Independent Directors. Based on the present composition of the Board of Directors and the number of Independent Directors, the Company complies with this requirement.
In terms of Section 152 of the Companies Act, 2013 and Article 134 of the Articles of Association of your Company, Mr. Amit Somani, Director is liable to retire by rotation at the Eighteenth Annual General Meeting. Mr. Amit Somani has confirmed his eligibility and willingness to accept the office of the Director of your Company, if confirmed by the Members at the ensuing Annual General Meeting.
In the opinion of your Directors, your Company will continue to benefit from Mr. Amit Somani in his capacity as the Managing Director of your Company. Your Directors, therefore, recommend that the proposed resolution relating to reappointment of Mr. Amit Somani be passed.
21) POLICY ON DIRECTORS'' APPOINTMENT AND REMUNERATION AND OTHER DETAILS:
The Company''s policy on directors'' appointment and remuneration and other matters provided in Section 178(3) of the Act has been disclosed in the Corporate Governance Report, which forms part of the directors'' report.
22) DECLARATION OF INDEPENDENCE BY INDEPENDENT DIRECTOR:
The Board of the Company comprises eight Directors, out of which four Directors are independent. All independent Directors of the Company have declared and confirmed that they meet with the criteria of independence, as prescribed under Section 149(6) of the Companies Act, 2013 and Regulation 16(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
23) BOARD EVALUATION:
The provision of sec. 149(8) of Companies Act, 2013 states that a formal annual evaluation needs to be made by the Board of its own performance and that of its committees and individual directors. Further Schedule IV of the Companies Act, 2013 states that the performance evaluation of independent directors shall be done by the entire Board of Directors, excluding the director being evaluated.
The Nomination and Remuneration Committee of the Company has laid down the criteria for performance evaluation of the Board, its Committees and individual directors including independent Directors.
The evaluation of all the directors and the Board as a whole was conducted based on the criteria and framework adopted by the Board. The evaluation process has been explained in the corporate governance report section in this Annual Report. Recommendations and suggested areas of improvement for the Board, its various committees and the individual Directors were considered by the Board. The Board approved the evaluation results as collated by the nomination and remuneration committee.
24) COMMITTEES OF THE BOARD:
During the year under report, the Board of Directors of your Company constituted the following Committees of the Board. The details of the powers, functions, composition and meetings of the Committees of the Board held during the year are given in the Report on Corporate Governance section forming part of this Annual Report.
- Management Committee
- Audit Committee
- Nomination and Remuneration Committee
- Corporate Social Responsibility Committee
- Stakeholders Relationship and Grievance Committee
25) CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
The particulars as prescribed under Sub-section (3)(m) of Section 134 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, are mentioned as Annexure 10 to the Board''s report.
26) EMPLOYEE STOCK OPTION PLANS:
The Nomination and Remuneration Committee (NRC) of the Board of the Company, inter alia, administers and monitors the Employees'' Stock Option Scheme of the Company in accordance with the applicable provisions of SEBI Guidelines. Your Company has issued and implemented the Employees Stock Option Scheme ("Scheme") named as ADCC ESOP 2014 in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (''the SEBI Regulation'') as a measure to reward and motivate employees as also to attract and retain the talent to its employees. Details of the stock options granted under ADCC ESOP 2014 is annexed to this Report as Annexure 8.
During the year under review, the Company has allotted 39,475 shares pursuant to "ADCC Employee Stock Option Plan, 2014" on 11th of March, 2016. The issuance of shares pursuant to the said scheme has resulted in the increase in number of Equity shares issued by the Company which stands at 90,99,475 shares as on date.
27) CORPORATE SOCIAL RESPONSIBILITY:
The Company is committed to conduct its business in a socially responsible, ethical and environmental friendly manner and to continuously work towards improving quality of life of the communities in its operational areas. The Board of Directors at its meeting held on May 08, 2014 had constituted Corporate Social Responsibility (CSR) Committee in accordance with Section 135 of Companies Act, 2013 read with rules formulated therein. The CSR agenda is planned in consultation with the CSR committee members through a systematic independent need assessment. We believe in positive relationships that are built with constructive engagement which enhances the economic, social and cultural well-being of individuals and regions connected to our activities. The Company pursuant to the recommendation of the CSR Committee had adopted a detailed policy on Corporate Social Responsibility and also discussed and identified the core areas in which the CSR activities was proposed to be carried out in the CSR Committee Meetings from time to time. The Corporate Social Responsibility Policy can be accessed on the Company''s website at the link: http://adccinfocad.com/investors/Policies/ Corporate-Social-Responsibility-Policy.pdf
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure 7 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014.
28) EXTRACT OF ANNUAL RETURN:
As provided under Section 92(3) of the Act, the extract of annual return is annexed as Annexure-6 to the Board''s report in the prescribed Form MGT-9.
29) VARIATION OF IPO PROCEEDS:
Pursuant to regulation 32(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 the Company is required to give an explanation for variation in utilization of IPO proceeds. The Company executes projects in Geospatial & Engineering services i.e. GIS/Remote Sensing, LiDAR (Light Detection and Ranging), Photogrammetric, Energy System and solutions. Engineering Design Services, Surveys and Customized Application Development and therefore requires Technical Equipment, Software and Hardware to carry out the aforesaid activities.
The Company has taken essential steps to deploy funds earmarked for Purchase of Technical Equipment, Software and Hardware mentioned in the IPO Proceeds as per "Schedule of Implementation & Deployment of Funds" in Prospectus, but the specification and the requirement of Technical Equipment, Software and Hardware keep changing as per the present business contract to be executed for the clients. Further, at times for cost-effectiveness it is important to select a more economic, consistent and reliable source to ascertain and acquire software, hardware and technical equipments from other than mentioned in the Prospectus and require more time for finalizing the vendors.
Thus, by keeping in mind the above issues Company management has decided that it will utilize the money so raised, as and when the need arise, in best possible way with complete transparency. The detailed utilization of IPO proceeds till March 31, 2016 is mentioned in Financial Statement, which forms part of Annual Report.
30) VIGIL MECHANISM (WHISTLE BLOWER POLICY):
In terms of the section 177(9) of companies act, 2013 and rules framed there under, your Company has established a ''Whistle Blower Policy and Vigil Mechanism'' for directors and employees it provides a channel to the employees to report to the appropriate authorities concerns about unethical behavior, actual or suspected, fraud or violation of the Company''s code of conduct policy and provides safeguards against victimization of employees who avail the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases. Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone line or a letter to the concerned authorities. The details of the vigil mechanism (whistle blower policy) are given in Annexure 9 of this board report.
31) PREVENTION OF INSIDER TRADING:
The Securities and Exchange Board of India (SEBI) vide notification dated January 15, 2015 has put in place a new framework for prohibition of Insider Trading in Securities and to strengthen the legal framework thereof. These new regulations of the SEBI under the above notification have become effective from May 15, 2015. Accordingly, the Board has formulated Insider Trading Policy in accordance with Regulation 8 & 9 of Insider Trading Regulations, 2015 for regulating, monitoring and reporting of Trading of Shares by Insiders. The Code lays down guidelines, procedures to be followed and disclosures to be made while dealing with shares of the Company. The copy of the same is available on the website of the Company at the link: http://adccinfocad.com/ investors/Policies/lnsider-Trading-Policy.pdf
32) LEGAL, GOVERNANCE AND BRAND PROTECTION:
Your Company continued to focus on the key areas and projects within the Legal, Compliance and Corporate Affairs functions. The Company has established a vigil mechanism for Directors and employees to report their genuine concerns, details of which have been given in the Corporate Governance Report annexed to the Board''s Report.
33) INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:
The Company has in place proper and adequate internal control systems commensurate with the nature of its business, size and complexity of its operations. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, compliance with policies, procedure, applicable laws and regulations and that all assets and resources are acquired economically, used efficiently and adequately protected.
The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company and its subsidiaries and reports the same on quarterly basis to Audit Committee.
34) ENHANCING SHAREHOLDERS VALUE:
Your Company believes that its Members are among its most important stakeholders. Accordingly, your Company''s operations are committed to the pursuit of achieving high levels of operating performance and cost competitiveness, consolidating and building for growth, enhancing the productive asset and resource base and nurturing overall corporate reputation.
35) SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY:
There are no significant and material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status and the Company''s future operations.
36) SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 (SHWWA):
ADCC''s quest for competitive excellence consists of its commitment to lawful and ethical conduct and adherence to its values. Integrity, honesty and respect for people remain some of its core values. Your Company is committed to providing a work environment that is professional and mature, free from animosity and one that reinforces our value of integrity that includes respect for the individual. The Company has always believed in providing a safe and harassment free workplace for every individual working in the Company''s premises through various interventions and practices. The Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.
All employees are treated with dignity with a view to maintain a work environment free of sexual harassment whether physical, verbal or psychological. The Policy aims to develop a harmonious and productive working environment free from sexual harassment. The Company also ensures all allegations of sexual harassment are investigated and dealt with effectively and appropriately.
37) ACKNOWLEDGEMENT:
Your Directors place on record their appreciation to the Government of India, the Securities and Exchange Board of India, the Stock Exchanges and other regulatory authorities for their valuable guidance and support and wish to express our sincere appreciation for their continued co-operation and assistance. We look forward to their continued support in future. We wish to thank our bankers, investors, rating agencies, customers and all other business associates for their support and trust reposed in us.
Your Directors express their deep sense of appreciation for all the member of the ADCC family whose commitment, co-operation, active participation, dedicated efforts, consistent contribution and professionalism at all levels has made the organization''s growth possible.
Finally, the Directors thank you for your continued trust and support.
For and on behalf of the Board of Directors
Place: Nagpur Mr7Sagar|Meghe CA''Amit Somani
Date: 03rd September, 2016 (Chairman) (Managing Director)
Mar 31, 2015
Dear Members,
The Directors are pleased to present the Seventeenth Annual Report of
the Company together with the Audited Statements of Accounts for the
year ended March 31st, 2015
1. Financial Results
We are delighted to present the report on our business and operations
for the year ended March 31st, 2015.
Standalone
Particulars 2015 2014
Total Income 98,44,85,473 77,55,42,112
Profit before interest,
depreciation and 19,58,38,333 18,45,04,177
taxes
Finance Cost 7,47,67,032 6,27,70,445
Depreciation 2,36,07,319 1,90,21,475
Provision for income 3,18,33,806 3,05,67,516
tax
Prior Period item:
Depreciation 0 55,40,813
Employee benefit 0 15,47,025
Net Profit for the 6,56,30,176 6,50,56,903
year
Dividend 67,95,000 1,49,84,991
Dividend tax 13,83,326 25,46,701
Net worth 36,50,22,271 21,69,83,194
Earnings per Share 7.24 9.77
(EPS) (Basic)
Earnings per Share 7.10 9.77
(EPS) (Diluted)
Consolidated
Particulars 2015 2014
Total Income 1,08,67,34,364 79,85,05,457
Profit before interest,
depreciation and 20,09,10,519 18,13,11,657
taxes
Finance Cost 7,50,66,984 6,31,05,386
Depreciation 2,44,96,298 1,98,28,253
Provision for income 3,20,00,036 3,04,86,757
tax
Prior Period item:
Depreciation 0 55,40,811
Employee benefit 0 15,47,025
Net Profit for the 6,93,47,200 6,08,03,425
year
Dividend 67,95,000 1,49,84,991
Dividend tax 13,83,326 25,46,701
Net worth 36,80,93,103 21,16,77,689
Earnings per Share 7.55 9.02
(EPS) (Basic)
Earnings per Share 7.40 9.02
(EPS) (Diluted)
2. Company's Performance
Revenues Standalone
Total Income on Standalone basis in Financial year 2014-15 increased to
Rs. 98,44,85,473/- from Rs. 77,55,42,112/- in the previous year
2013-14, at a growth rate of 26.94%. Profit before interest, tax AND
depreciation (EBITD) were Rs. 19,58,38,333/- registering a growth of
6.14% over EBITD of Rs.18,45,04,177/- in 2013-14. Profit before tax
(PBT) for the year was Rs. 9,74,63,982/- recording a growth of 1.93%
over the PBT of Rs. 9,56,24,419/- in 2013-14. Profit after tax (PAT)
for the year was Rs. 6,56,30,176/- recording a growth of 0.88 % over
the PAT of Rs. 6,50,56,903/- in 201314.
Revenues Consolidated
Total Income on Standalone basis in Financial year 2014-15 increased to
Rs. 1,08,67,34,364/- from Rs. 79,85,05,457/-in the previous year
2013-14, at a growth rate of 36.10%. Profit before interest, tax,
depreciation (EBITD) was Rs. 20,09,10,519/- registering a growth of
10.81% over EBITD of Rs. 18,13,11,657/- in 2013-14. Profit before tax
(PBT) for the year was Rs. 10,13,47,237/- recording a growth of 11.02%
over the PBT of Rs. 9,12,90,182/- in 2013-14. Profit after tax (PAT)
for the year was Rs. 6,93,47,200/- recording a growth of 14.05. % over
the Profit after tax (PAT) of Rs. 6,08,03,425/- in 2013-14.
3. Dividend:
Based on the Company's performance, the directors are pleased to
recommend for approval of the members a final dividend of Rs. 0.75/-
per share for the financial year 2014-15 aggregating to Rs.
67,95,000/-. The final dividend on equity shares, if approved by the
members would involve a cash outflow of Rs. 81,78,326/- including
dividend tax for financial year 2014-15.
The Dividend, subject to the approval of Members at the Annual General
Meeting on September 30, 2015, will be paid on or after September 7,
2015 to the Members whose names appear in the Register of Members, as
on 21st September, 2015 and the share transfer book shall be closed
from September 22, 2015 to September 30, 2015 (both days inclusive).
4. Transfer to Reserves:
The Company has not transfer any amount to the general reserve account
during the reporting period
5. Particulars of Loans, Guarantees or Investments:
Loans, guarantees and investments covered under Section 186 of the
Companies Act, 2013 form part of the notes to the financial statements
provided in this Annual Report.
6. Particulars of Contracts or Arrangements made with related parties:
Particulars of contracts or arrangements with related parties referred
to in Section 188(1) of the Companies Act, 2013, in the prescribed Form
AOC-2, is appended as Annexure 2 to the Board's report.
7. Material Events occurring after Balance Sheet date:
The Company in its Prospectus dated September 23, 2014 had specified
the utilization of the proceeds of the fresh issue by the Company under
the section titled "Objects of the Issue" on page no. 65. The Total
Fund requirement under the Issue (including internal accruals) was Rs.
992.74 lakhs (including 32.74 lakhs of internal accruals) and the said
proceeds was to be utilized for (i) Purchase of New Technical
Equipment, Software and Hardware (i.e. Rs. 115.83 lakhs), (ii) Part
finance the long term Working Capital requirement (Rs. 700 lakhs),
(iii) International Marketing & Branding Expenses (Rs. 48.99 lakhs),
(iv) General Corporate Purposes (Rs. 77.92 lakhs) and (v) issue
expenses (Rs. 50 lakhs).
The company achieved with respect to utilization of the objects
relating to "Technical Equipment, Software and Hardware" as mentioned
in prospectus was 27.13% till 31st March, 2015 (in terms of total
amount deployed in this particular object). As on March 31, 2015, the
total amount utilized for the said Objects of the Issue is Rs. 31.42
lakhs and the balance unutilized amount amounting to Rs. 84.41 lakhs is
temporarily lying in current accounts with Banks. During the current
financial year, the Company has acquired some Technical Equipment,
software and Hardware which is mentioned in the below revised proposed
object.
Thus pursuant to the provisions of Section 27 and other applicable
provisions, if any, of the Companies Act, 2013 read with The Companies
(Prospectus and Allotment of Securities) Rules, 2014 the Company has
conducted a postal ballot in which the shareholders shall approve the
variation in deployment of funds. The Company has dispatch the Postal
Ballot Notice to all the Shareholders which has been completed on 03rd
August, 2015 and the Notice of Postal Ballot will be available at
website of the Company as well as on the website of Bombay Stock
Exchange. The E-Voting commenced from August 5, 2015 at 10:00 A.M. and
shall complete on September 3, 2015 at 5:00 P.M.
There will not be any material impact on financial position of the
company, if company purchase the Technical Equipment, Software and
Hardware from the proposed vendors within the extended dates as
mentioned above from the IPO proceeds.
8. Fixed deposits:
In terms of the provision of Sections 73 and 74 of the Companies Act,
2013 read with the relevant rules, your Company has not accepted any
fixed deposits during the year under review.
9. Management's discussion and analysis:
In terms of the provisions of Clause 52 of the Listing Agreement, the
Management's discussion and analysis is set out in this Annual Report.
10. Subsidiaries:
As on March 31, 2015, we have six subsidiaries which are as follows:
I. ADCC Infocom Private Limited;
II. AI Instruments Private Limited;
III. ADCC Academy Private Limited;
IV. ADCC International East Africa Limited;
V. ADCC Tech Limited; and
VI. ADCC Technology Zambia Limited
During the year, the Board of Directors ('the Board') reviewed the
affairs of the subsidiaries. In accordance with Section 129(3) of the
Companies Act, 2013, we have prepared consolidated financial statements
of the Company and all its subsidiaries, which form part of the Annual
Report. Further, a statement containing the salient features of the
financial statement of our subsidiaries in the prescribed format AOC 1
is appended as Annexure 1 to the Board's report.
The statement also provides the details of performance, financial
positions of each of the subsidiaries. In accordance with Section 136
of the Companies Act, 2013, the audited financial statements, including
the consolidated financial statements and related information of the
Company and audited accounts of each of its subsidiaries, shall be
available on our website www.adccinfocad.com. These documents will also
be available for inspection during business hours at our registered
office in Nagpur, India.
Investments and Disinvestments made during the reporting period in the
subsidiaries are mentioned below:
During the reporting period, the Company invested in ADCC Tech Limited
as a Subscriber to the Memorandum at the time of incorporation on
February 14, 2015.
The Main object of ADCC Tech limited is to carry on the business of
geographical surveys and mapping, On-Shore & Off-Shore surveys and
Fields Surveys including oil & gas and any other fields, Consultancy of
Survey Engineering, Survey Planning, Aerial Photography, Aerial and
Satellite Remote Sensing using different sensors like RADAR, Aeromag,
LiDAR etc., in addition to cameras and mapping using any of the above
mentioned sensor systems from Aerial and other platforms, geographical
information systems, Management System Engineering Consultancy
including without limiting the generality, to all such other
events/activities ancillary thereto.
During the reporting period, the Company disinvested 5 percent of its
holding made in ADCC Academy Private Limited and ADCC Infocom Private
Limited.
11. Business:
Strategy
At ADCC our strategic objective is to build up an integrated platform
in Geospatial field which enables us to serve our clients to the best
of their requirements and at the same time generating profitable growth
for our investors. In order to fulfill these objectives and to meet the
demands of present and future the Company has developed ADCC Strategic
Management Plan which deals with challenges, opportunities, and new
initiatives that have resulted through a study of organizational
processes and the geospatial industry.
Attract and Retain
A global, diverse, motivated and high performing employee base
To ensure good human resources management, your Company focuses on all
aspects of the employee lifecycle. In ADCC retention has been identified
as one of the areas within HRD to strategize upon. As a part of HR
initiative for retentions we have specifically Implemented some Industry
Best practices with employee Benefits. The Company periodically arranges
Rewards and Recognition programs at the right time for the right
resource and they are ranging from monthly monetary rewards to Foreign
Tours for extraordinary performances, Holiday Club Benefits with paid
vacation of 3 days to 5 top performers, the Company conduct Regular
surveys and Audits to judge employee Satisfaction and reviews for
changes accordingly, Survey from great place to work with focus on
organizational culture, employee inputs etc. Target based incentive
plans and Timely annual Appraisals. The Company has taken a very unique
initiative CMMI (Capability Maturity Model Integration) implementation
process to strengthen Process for employees.
Human Resources Management
The company has adapted good practices to retain, encourage and develop
skills of all the employees of the company. The details of Human
Resource of the company has been mentioned in other sections of this
Annual Report.
12. Corporate Governance:
Corporate governance is an ethically driven business process that is
committed to values aimed at enhancing an organization's brand and
reputation. This is ensured by taking ethical business decisions and
conducting business with a firm commitment to values, while meeting
stakeholders' expectations. Our Corporate governance report for fiscal
2015 forms part of this Annual Report.
13. Appointment of statutory auditors:
The Members of the Company at the Annual General Meeting of the Company
held on August 26, 2014 appointed M/s. Shah Baheti Chandak & Co;
Chartered Accountants (Firm Registration No.109513W) as the Statutory
Auditors of the Company to hold such office till the conclusion of
twentieth (20th) Annual general Meeting.
M/s. Shah Baheti Chandak & Co; Chartered Accountants have confirmed
their eligibility and willingness to accept office, if appointment is
ratified by the Members of the Company. The ratification of appointment
of Statutory Auditors is subject to the approval of the Members of the
Company.
Your Directors propose ratification of appointment of M/s. Shah Baheti
Chandak & Co, Chartered Accountants Co. as the Statutory Auditors of
your Company.
14. Auditors' report and secretarial auditors' report:
Pursuant to Section 204 of the Companies Act, 2013, the Board of
Directors had appointed M/s. Sushil Kawadkar, Practicing Company
Secretary as the Secretarial Auditor of the Company. Accordingly, the
Secretarial Auditor has given his report, which is annexed hereto as
Annexure-6. The comments of the Board on the observations of the
Secretarial Auditor are given after Annexure-6 above.
15. Board Meetings:
The details pertaining to the composition, terms of reference, etc. of
the Board of Directors of the Company and the meetings thereof held
during the financial year are given in the Report on Corporate
Governance section forming part of this Annual Report.
16. Directors' responsibility statement:
Pursuant to Section 134(5) of the Companies Act, 2013, the board of
directors, to the best of their knowledge and ability, confirm that:
i. in the preparation of the annual accounts, 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 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
Act 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 such internal financial controls are adequate and
operating effectively;
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.
Based on the framework of internal financial controls and compliance
systems established and maintained by the Company, work performed by
the internal, statutory and secretarial auditors and external
consultants and the reviews performed by management and the relevant
board committees, including the audit committee, the board is of the
opinion that the Company's internal financial controls were adequate
and effective during the financial year 2014-15.
17. Directors and Key Managerial Personnel:
During financial year 2014-15, 4 (Four) Independent Directors were
appointed for a period of 5 (Five) consecutive years. Pursuant to the
provisions of the Companies Act, 2013, they are not liable to retire by
rotation. As on March 31, 2015 your Company has 6 (Six) Non-Executive
Directors out of them 5 (five) are Independent Directors and One is
NonIndependent. Pursuant to Section 149 of the Companies Act, 2013,
your company should have at least one third of its total strength of
the Board of Directors as Independent Directors and pursuant to clause
52 (I) (A) (i) and 52 (I) (A) (ii) of listing agreement your company
should have at least fifty percent of its total strength of the Board
of Directors as Independent Directors. Based on the present composition
of the Board of Directors and the number of Independent Directors, the
Company complies with this requirement.
In terms of Section 152 of the Companies Act, 2013 and Article 134 of
the Articles of Association of your Company, Mr. Sagar Meghe, Director
is liable to retire by rotation at the Seventeenth Annual General
Meeting. Mr. Sagar Meghe has confirmed his eligibility and willingness
to accept the office of the Director of your Company, if confirmed by
the Members at the ensuing Annual General Meeting.
In the opinion of your Directors, your Company will continue to benefit
from Mr. Sagar Meghe in his capacity as the Director and Chairman of
your Company. Your Directors, therefore, recommend that the proposed
resolution relating to appointment of Mr. Sagar Meghe be passed.
Pursuant to Section 149 of the Companies Act, 2013, and pursuant to
rules made there under every listed company should have at least one
woman director on the Board. In order to comply with these provisions,
Board of Directors of your Company in its meeting held on 11th March,
2015 appointed Ms. Shrilekha Lanjekar as an Additional Director in the
Category of Non-Executive Independent Women Director of the Company and
who holds office till the date of Annual General Meeting. In terms of
section 161 of the Companies Act, 2013 and in respect of whom the
Company has received a notice in writing from a member under section
160 of the Companies Act, 2013 signifying his intention to propose Ms.
Shrilekha Lanjekar as a candidate for the office of a director of the
Company. The resolutions seeking approval of the Members for the
appointment of Ms. Shrilekha Lanjekar is incorporated in the notice of
the forthcoming annual general meeting of the Company along with brief
details about her. The Company has received a notice under Section 160
of the Act along with the requisite deposit proposing the appointment
of Ms. Shrilekha Lanjekar.
18. Policy on directors' appointment and remuneration and other
details:
The Company's policy on directors' appointment and remuneration and
other matters provided in Section 178(3) of the Act has been disclosed
in the corporate governance report, which forms part of the Annual
report.
19. Declaration of Independence by Independent Director:
The Board confirms that all Independent Directors of the Company have
given a declaration under Section 149 (7) of the Companies Act, 2013,
to the Board that they meet the criterion of independence as prescribed
under Section 149(6) of the Companies Act, 2013.
20. Board Evaluation:
The Companies Act, 2013 sec.149 (8) states that a formal annual
evaluation needs to be made by the Board of its own performance and
that of its committees and individual directors. Pursuant to Schedule
IV of the Companies Act, 2013 states that the performance evaluation of
independent directors shall be done by the entire Board of Directors,
excluding the director being evaluated.
The evaluation of all the directors and the Board as a whole is
followed based on the criteria and framework adopted by the Board. The
evaluation process has been explained in the corporate governance
report section which forms part of the Annual report. Recommendations
and suggested areas of improvement for the Board, its various
committees and the individual Directors were considered by the Board.
The Board approved the evaluation results as collated by the nomination
and remuneration committee.
21. Committees of the Board:
During the financial year 2014-15, the Board of Directors of your
Company constituted the following Committees of the Board. The details
of the powers, functions, composition and meetings of the Committees of
the Board held during the year are given in the Report on Corporate
Governance section forming part of this Annual Report.
i. Management Committee
ii. Audit Committee
iii. Nomination and Remuneration Committee
iv. Corporate Social Responsibility Committee
v. Stakeholders Relationship and Grievance Committee
22. Corporate Governance:
A separate section on Corporate Governance with a detailed compliance
report as stipulated under the Listing Agreement and any other
applicable law for the time being in force forms an integral part of
this Report.
23. Conservation Of Energy, Technology Absorption, Foreign Exchange
Earnings and Outgo:
The particulars as prescribed under Sub-section (3)(m) of Section 134
of the Companies Act, 2013, read with the Companies (Accounts) Rules,
2014, are annexed as Annexure-11 to the Board's report.
24. Employee stock option plans:
Your Company has issued ADCC ESOP 2014 to its employees. Details of the
stock options granted under ADCC ESOP 2014 are annexed as Annexure-9 to
the Board's report.
25. Corporate social responsibility:
The brief outline of the Corporate Social Responsibility (CSR) Policy
of the Company and the initiatives undertaken by the Company on CSR
activities during the year are set out in Annexure-8 to the Board's
report in the format as prescribed in the Companies (Corporate Social
Responsibility) Rules, 2014.
26. Extract of annual return
As provided under Section 92(3) of the Act, the extract of annual
return is annexed as Annexure-7 to the Board's report in the prescribed
Form MGT-9.
27. Vigil Mechanism /Whistle Blower Policy
The details of the vigil mechanism/whistle blower policy are annexed in
Annexure-10 to the Board's report
28. Legal, Governance and brand protection
Your Company continued to focus on the key areas and projects within
the Legal, Compliance and Corporate Affairs functions. During the year,
your Company has adopted new policies and amended existing policies
such as Policy on CSR Policy and Vigil mechanism/Whistle Blower Policy,
Policy on code of conduct, Nomination and Remuneration policy, Insider
Trading Policy in line with new governance requirements. The Company
has established a vigil mechanism for Directors and employees to report
their genuine concerns, details of which have been given in the
Corporate Governance Report annexed to the Board's report.
29. Enhancing Shareholders Value
Your Company believes that its Members are among its most important
stakeholders.
30. Acknowledgement
The directors thank the Company's employees, customers, vendors,
investors for their continuous support. The directors also thank the
government of various countries, government of India, the governments
of various states in India and concerned government departments /
agencies for their co-operation. The directors appreciate and value the
contributions made by every member of the ADCC family.
For and on behalf of the Board of directors
SD/- SD/-
Place: Nagpur CA Amit Somani Mr. Sameer Meghe
4th September, 2015 Managing Director Vice Chairman