Mar 31, 2013
To The Members of Ontrack Systems Limited
The Directors are pleased to present the Twenty Fifth Annual Report
together with the Audited Statement of Accounts and the Auditor''s
Report of your Company for the Financial Year ended March 31, 2013.
The financial highlights for the year under review are given below:
(Rs.in Lacs)
Amount Amount
Sl.
No. Description for the
year ended for the
year ended
31.03.2013 31.03.2012
1. Total Income 10,446.07 10,327.83
2. Total Expenditure 10,182.77 9,954.07
3. Profit before
interest, depreciation & tax 263.30 373.76
4. Finance Charges 188.68 173.43
5. Depreciation & impairment loss 6.01 30.30
6. Other income 92.95 40.98
7. Profit before tax 161.56 211.01
8. Provision for tax 41.14 27.66
9. Deferred Tax - Asset (0.10) 28.33
10. Profit after tax 120.52 155.02
RESULTS OF OPERATIONS
- The operations of the company significantly improved during this year
principally due to increase in domestic business. Overseas operation
continues to be sluggish except for some improvement in Australia.
- Our total revenue increased to Rs. 10539.02 Lakhs from Rs. 10368.81 Lakhs
in the previous year at a growth rate of 1.64%..
- Profit before tax is Rs. 161.56 Lakhs during the year as against Rs.
211.01 Lakhs in the previous year.
- The Net profit after tax of Rs.120.52 Lakhs as against Rs. 155.02 Lakhs
in the previous year.
PERFORMANCE REVIEW OF BUSINESS UNITS
- Technology Solutions Group (TSG)
Technology Solutions Group since its inception in the year 2005 has
helped its customers create a secure IT Infrastructure geared for
meeting ever challenging and evolving requirements in different
business environment. The team has enabled IT to be transitioned into
an asset rather than just being a cost to the business.
TSG has invested in deploying Green IT solutions thereby enabling
customers to reduce their carbon footprint and have environment
friendly solutions.
Virtualization technologies deployed by TSG has enabled many companies
to convert their physical servers into virtual machines with 99.99%
availability - thereby creating valuable space in the data centers,
reduced consumption of energy and ease of manageability and agility of
the IT Infrastructure.
TSG has helped customers design their infrastructure to support big
data, assisting them to store data securely and access efficiently. TSG
deployed storage efficiency solutions that helped many customers get
the most out their storage investments by improving productivity while
reducing their costs.
TSG aims to provide customers with a range of consultancy services that
will enable them to implement and manage IPv6 successfully and
migration from IPv4 technology.
- SAP Business One
Considering the challenges for the SME organization in selecting and
investing in a branded ERP the risk for success is one of the major key
concerns of the decision making process SAP B1 has mitigated from time
to time in re-modeling the implementation service approach and putting
more focus on Change Management and User Acceptance Training and
Testing.
Some of the new Launch includes:
Configured Solution for Process Manufacturing Industry vertical, Add-on
Modules, Gate Pass Management, Discrete Manufacturing (Process
Routing Management). Sub-Contracting and Jobbing, Localized and
Government Acknowledged Payroll Solution as per Localization, Purchase/
Production Indenting/Requisitions and Approvals, PF Trust Management,
Purchase Tendering, Pre-Configured Solutions for Iron and Steel
Industry and IT Hardware/Software Distributors, Solutions for
College/Campus Management integrated with SAP Business One, Readymade
SAP B1 solution for Healthcare Industry Vertical.
- Tendertimes.com
The company''s offering of Secure T tender Management solution has been
very widely received by the customers. E-procurements with e-auction
and e-reverse auction suits are now being offered to clients on a trial
basis. E-procurement has been universally recognized as a method to
reduce and manage enterprise costs.
The company has now embarked on offering on-line end to end tender
management solutions keeping in mind the market demands for such cost
effective technology for transparent tendering process.
Tender times will continue to add more value to its brand equity and
enjoy its premium and leadership position in the e-tendering domain.
- Indiaonestop.com
The revenue from Sales of Project reports maintained a healthy upward
trend. Overseas clients were added from as far as Germany, Libya, UAE,
USA, Egypt, Venezuela, Bahrain, Saudi Arabia and Sri Lanka.
Indiaonestop.com is continuing its efforts to strengthen its e-platform
in providing more and more valuable and updated information for its
Indian business and industry helping exchange of information, views
between India and other countries. During the year under review the
portal registered over 4.7 million visitors monthly from over 90
countries.
- ERP Solutions
ERP implementations were closed on different platform including SAP B1
with major clients across the country.
MS Dynamics practice has expanded providing solution to clients'' length
and breadth of the country. SME segment have been targeted offerings
different suits depending on the client''s needs. A Memorandum of
Understanding was signed between West Bengal Industry Development
Corporation Ltd. (Webel - a nodal agency for development of IT and ITES
industry in West Bengal) and our company by offering a six months
certificate course for training in ERP and Management practice in
Microsoft Dynamics NAV and Axapta. The response has been encouraging.
Some of the training personnel are absorbed in the company for
execution of various projects in hand.
- Microsoft Dynamics NAV
In-spite-of the not so favorable market condition this division could
add several new clients during last financial years and came out as the
highest revenue contributor in the East for Microsoft.
With a vision to enter into the league of top five partners your
company is now focused on enhancing its geographical reach both
nationally and internationally. Initially the target is to cover the
Eastern India and reach out to Western India. Globally UK and UAE where
we already has a strong presence have been identified as potential
marketplace.
Subsidiary Companies
- UK: Ontrack UK WOS approach is partnering for long term relationship
with companies to bring to them the offshore advantage of skills and
price advantage. The relationships grown over the year will make into
long term business partners once the economy gets confident and
companies begin to reinvest in its IT spend.
Ontrack UK WOS continues to service Dresser Inc a GE company for onsite
management of infrastructure support and other bespoke developments.
The final Market launch of the UK based Pharmacy chains POS and Web
based application for the huge chain of single owner pharmacy is
ongoing.
Outlook for 2013 - 14
Ontrack UK WOS is working on a few proposed POC with GE Ontrack UK has
delayed launching its Microsoft Dynamics offshore support practice in
the UK due to the slowdown. It is looking into launching the same in
1st quarter of 2013 as there is decent demand in MS Dynamics Axapta.
- UAE: The African crisis contributed to a large extent in the poor
business environment in Middle East. However, client retention and
renewal of existing contracts continued. The Google Apps initiative was
started and yielded results, with clients acquired in UAE and the GCC
region. The need to expand and consider new markets was addressed
through delegation visits to Africa and regional partnership
augmentation. Sales and marketing initiatives were undertaken in the
region through these partnerships, primarily in Oman.
Government departments and projects were the main stay for the last
fiscal. We continue to provide technical and infrastructure support to
Government entities in Dubai and Abu Dhabi.
Expansions of markets were targeted through visits to Nigeria and
Kenya. Partnerships for project execution and delivery have been
identified and lead generation for promising projects were undertaken
through local partners. Regional partners in Oman and Bahrain were
identified, as well.
- Australia: Oz subsidiary signed Partnership agreement with SAP
Australia for selling and implementing SAP Business One in various
industries vertical especially in the SMB industry segment. The focus
would be offshore- onshore combo model including getting new IT Managed
service contracts.
Business outlook is improved substantially, Australia subsidiary
portfolio now includes pre-configured solutions for logistics, end to
end single window, service IT consultancy besides extended SAP R/ 3
through cost effective SAP remote support.
- Associates: First Job College:
The objective of the college is to prepare 2 passed students, industry
ready by imparting hands on training while enrolling them full time BBA
& BCA degree course awarded by the UGC recognized State Govt.
University.
The response for enrolment in the academic year 2012-13 has been very
encouraging. Adequate infrastructures for both physical and training
faculty are available. The best amongst first batch from the college is
likely to be absorbed with the Company.
- Comunet Info-systems Pvt. Ltd.
Energy Bill Payment system of WBSEDCL called ATP
Comunet Info-systems Pvt. Ltd. has been able to grow more than three
times in terms of turnover during the year. Daily transactions made by
the Automatic Bill Payment Kiosks of WBSEDCL, managed by Comunet, have
also increased significantly.
The company has executed successfully a ''Proof of Concepts'' on the
prototype already developed by them and supplied to a NBFC. The
product will fetch new business in the coming years. Two more
prototypes of transaction machine are being designed in the laboratory
of the company which will be developed in next year with the financial
support from MSME and Technology Development Board under Department of
Science and Technology, Govt. of India.
The company achieved a turnover of Rs. 367.84 Lakhs during the year as
against Rs. 1144.00 Lakhs in the previous year. Profit after Tax being Rs.
1.21 Lakhs against that of last year''s Rs. 5.55 Lakhs for making
substantial expenses in POC.
The Company has also explored new areas of ICT based services which
will contribute to the business of the co. from next year.
- Subsidiary companies Consolidated Financial Statement
The Board of Directors by a resolution at the meeting held on
30.05.2012 given consent for not attaching the Balance Sheet and
Financial statements in terms of the Central Govt. Ministry of
Corporate Affairs Circular No.2/11 dated 08.02.2011. The consolidated
financial statements however have full details of the financial portion
of the subsidiaries as per the general approval of the Central Govt.
Circular dated 08.02.2011.
- MATERIAL CHANGES AND COMMITMENTS:
There are no material changes and commitments affecting the financial
position of your Company between the end of the Financial Year of your
Company to which the Balance Sheet relates and the date of this report.
- Increase in Share Capital
During the year under review the equity capital of the company has
remained unchanged since the company had not issued any new equity
shares.
- Corporate Social Responsibility
The company has taken initiatives in sponsoring building road
connecting two small villages to the nearest Block level offices in the
Nadia district of West Bengal. The Company through its Educational
Society proposes to impart skill development to at least 100 students
so that they are industry ready and employable.
- HUMAN RESOURCE DEVELOPMENT
The Company''s recruitment policy ensures suitable candidate with merit
are selected from campus. Your Company constantly strives on
improvement in the project management competency of its associates and
personnel by continuous up gradation of their skills by training and
development. The Company''s expansion globally has resulted in glo- bal
cultural integration since the Company employs people from vari- ous
foreign countries. The Company''s HR policies and processes are aligned
to effectively drive its expanding business and emerging op-
portunities. Attrition during the fiscal remained within reasonable
pro- portion.
- QUALITY
The ISO 9001-2008 certification includes Company''s state-of-the art
Global Delivery Centre at Salt Lake, Kolkata, Technology Solutions
Group, Human Resource Department, Accounts Department Tendertimes.com
and IndiaOneStop.com. Internal audit checks are conducted once every
quarter for all the units. The software division of the Company plans
to implement ISMS (Information Security Management System) in its salt
lake facility.
- CORPORATE GOVERNANCE
The Company has complied with the requirement of Corporate Governance
as stipulated under clause 49 of the Equity listing agreement with the
Stock Exchanges and accordingly, the Report on Corporate Governance
forms part of the Annual Report.
The requisite certificate from the Auditors of the Company, M/s.
Goenka, Shaw & Co., regarding compliances with the conditions of the
Corporate Governance is annexed to this Report as also the Management
Discussion and Analysis which is given as Annexure to this Report.
- CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, R & D AND FOREIGN
EXCHANGE EARNING AND OUTGO U/s 217(1) (e)
Your company continuously strives to conserve energy, adopt
environment-friendly practices and employ technology for efficient
operations.
The Company operates in various state-of-art technology areas and has
developed the necessary related skills.
The Technology Change Management Group of the Company continuously
scans the market for new technologies, design systems and processes to
induct such new technologies.
The foreign exchange earnings and outgoes for the year ended 31st
March, 2013.
(Amount in Rs.)
2013 2012
Earnings 437.16 808.10
Outgoes 0.43 1.18
- PERSONNEL
The Particulars of Employees, as per Section 217(2A) of The Companies
Act, 1956 read with The Companies (Particulars of Employees) Rules,
1975 is Nil.
- DIRECTOR''S RESPONSIBILITY STATEMENT U/s 217(2AA)
The Financial statements are prepared in accordance with the accounting
standards issued by the Institute of Chartered Accountants of India and
the requirements of the Companies Act, 1956, to the extent applicable
to us, and guidelines issued by SEBI on the historical cost convention
as a going concern and on the actual basis. There are no material
departures from prescribed accounting standards in the adoption of the
accounting standards.
We accept responsibility for the integrity and objectivity of these
financial statements. The accounting policies used in the preparation
of the financial statements have been followed consistently except as
otherwise stated in the notes. The estimates and judgments related to
the financial statements have been made on a prudent and reasonable
basis, in order that the financial statements reflect in a true and
fair manner the form and substance of transactions, and reasonably
present our state of affairs and profits for the year.
- FIXED DEPOSITS
The Company has not accepted any fixed deposit and, as such, no amount
of principal or interest was outstanding as of the Balance Sheet date.
- DIRECTORS
Shri. Ramdevan V Krishnaswamy retires by rotation and being eligible
offers himself for re-appointment.
- AUDITORS
M/s. Goenka Shaw & Co., Chartered Accountants, the Auditors of the
Company, retire at the ensuing Annual General Meeting and have con-
firmed their eligibility and willingness to continue till conclusion of
next AGM of the company, if re-appointed.
- ACKNOWLEDGEMENT
Your Directors take this opportunity to thank its customers both in
India and abroad, investors, business partners, bankers, financial
insti- tutions, business associates and advisors for their consistent
support to the Company. Your Directors place on record their
appreciation of the contributions made by employees at all level
through hard work, cooperation and dedication, which has enabled the
Company to move forward. Your Directors once again take this
opportunity to thank the Governments of India, UK, UAE, Holland,
Australia & USA for their cooperation and assistance in enabling your
Company to enter the global marketplace.
For and on behalf of the Board of Directors
Sd/- Sd/-
Place : Kolkata, India S. V. Ramani B. Hari
Date : 30.05.2013 Whole-time
Director Chairman and
and Secretary Managing Director
Mar 31, 2011
The Members of Ontrack Systems Limited
The Directors are pleased to present the Twentythird Annual Report
together with the Audited Statement of Accounts and the Auditor's
Report of your Company for the Financial Year ended March 31, 2011. The
financial highlights for the year under review are given below:
(Rs. in Lacs)
Sl. Amount Amount
No. Description for the year ended for the year ended
31.03.2011 31.03.2010
1. Total Income 6193.55 3558.30
2. Total Expenditure 5619.31 3185.73
3. Profit before interest,
depreciation & tax 574.24 372.57
4. Finance Charges 198.96 234.62
5. Depreciation & impairment loss 74.99 128.94
6. Other income 35.16 28.79
7. Profit/(Loss) on sale of Assets 0.71 -
8. Profit before tax 336.16 37.80
9. Provision for tax 36.00 12.00
10. Deferred Tax - Asset (16.37) 9.22
11. Profit after tax 316.53 16.58
12. Distributable Profit
Appropriation:Ã
Transfer to General Reserve - -
RESULTS OF OPERATIONS
- The operation of the company significantly improved during this year
principally due to increase in domestic business. Overseas operation
continues to be sluggish except for some markets.
- Our total revenue increased to Rs. 229.42 Lakhs from Rs. 3587.09
Lakhs in the previous year at a growth rate of 73.66%.
- Profit before tax is Rs. 336.16 Lakhs during the year as against Rs.
37.80 Lakhs in the previous year.
- The Net profit after tax of Rs. 316.53 Lakhs as against Rs. 16.58
Lakhs in the previous year.
PERFORMANCE REVIEW OF BUSINESS UNITS
- Enterprise Solutions Group
Enterprise Solutions Group has made significant breakthrough with major
clients during this year by bagging prestigious orders from public and
private sectors.
Focussing on Telemarketing Campaigns and Road-shows with a view to
penetrating verticals that include industries in Multilevel Marketing,
Die Casting Industry, IT Trading and Distribution, Tenancy Management
and Retail. Awareness campaigns in Tier-II and III towns in Eastern and
Central Zone and small enterprises and helping them grow through IT
solutions.
- Tendertimes.com
The company's offering of Secure 'T' tender Management solution has
been very widely received by the customers. E-procurements with
e-auction and e-reverse auction suits are now being offered to clients
on a trial basis. E-procurement has been universally recognized as a
method to reduce and manage enterprise costs.
The company has now embarked on offering on-line end to end tender
management solutions keeping in mind the market demands for such cost
effective technology for transparent tendering process.
Tendertimes will continue to add more value to its brand equity and
enjoy its premium and leadership position in the e-tendering domain.
- Indiaonestop.com
The revenue from sales of Project Reports maintained a healthy upward
trend. Overseas clients were added from as far as Germany, Libya, UAE,
USA, Egypt, Venezuela, Bahrain, Saudi Arabia and Sri Lanka.
Indiaonestop.com is continuing its efforts to strengthen its e-platform
in providing more and more valuable and updated information for its
Indian business and industry helping exchange of information, views
between India and other countries. During the year under review the
portal registered over 4.7 million visitors monthly from over 90
countries.
- ERP Solutions and Training
ERP implementations were closed on different platform including SAP B1
with major clients across the country.
MS Dynamics practice has expanded by providing solution to clients' in
different geographies.
Subsidiary Companies
- UK: The UK market continues to struggle and fighting hard to break
away from the recession. Clients are looking at cost saving activities
without diluting its performance. Ontrack UK in spite of the difficult
times have been positive in its approach in looking partnering
companies to bring to them the offshore advantage of skills and price
advantage.
The business environment in the entire Europe is very precarious and UK
is no exception. The area of Application Development & Maintenance
(ADM) especially in the mid market is expanding rapidly. We can see
onshore with offshore support activities have shown significant
progress as companies are seeking price advantages in these trying
times. The final market launch of the UK based Pharmacy chains POS and
Web based application for the huge chain of single owner pharmacy is
ongoing. This has been developed by Ontrack UK and Ontrack India
offshore team.
- UAE: The African crisis contributed to a large extent in the poor
business environment in Middle East. However, client retention and
renewal of existing contracts continued. The Google Apps initiative was
started and yielded results, with clients acquired in UAE and the GCC
region. The need to expand and consider new markets was addressed
through delegation visits to Africa and regional partnership
augmentation. Sales and marketing initiatives were undertaken in the
region through these partnerships, primarily in Oman.
Government departments and projects were the main stay for the last
fiscal. Ontrack continued providing technical and infrastructure
support to Government entities in Dubai and Abu Dhabi.
Software development projects from private and Government sectors were
executed. Support for software development was provided from the Global
Delivery Centre with the major projects requiring onsite development
and implementation.
Expansions of markets were targeted through visits to Nigeria and
Kenya. Partnerships for project execution and delivery have been
identified and lead generation for promising projects were undertaken
through local partners. Regional partners in Oman and Bahrain were
identified, as well.
- Australia: Oz subsidiary signed Partnership agreement with SAP
Australia for selling and implementing SAP Business One in various
industries vertical especially in the SMB industry segment. The focus
would be offshore- onshore combo model including for getting new IT
Managed service contracts.
Business outlook is improved substantially, Australia subsidiary
portfolio now includes pre-configured solutions for logistics, end to
end single window, service IT consultancy besides extended SAP R/ 3
through cost effective SAP remote support.
- Associates: First Job College:
The objective of the college is to prepare 2 passed students,
industry- ready by imparting hands-on training while enrolling them for
full time BBA & BCA degree course awarded by the UGC recognized State
Govt. University.
The response for enrolment in the academic year 2011-12 has been very
encouraging. At least 100 students are likely to enroll themselves for
the course with the college. Adequate infrastructures for both physical
and training faculty are available in the office. The best amongst
first batch from the college is likely to be absorbed with the Company.
- Comunet Info-systems Pvt. Ltd.
Comunet Info-Systems Pvt. Ltd. has expanded its business operations
significantly during the year. It has successfully stepped into new
areas and got the contract to operate and manage one hundred Automatic
Bill Payment Kiosks of West Bengal State Electricity distribution Co.
Ltd. spread across the state.
The Co. has also developed a unique multi-functional transaction Kiosk
for a NBFC, with whom negotiations are in the final stage for
procurement of a sizeable order. Also several new products have been
developed during the year which will be launched soon.
During the Year the Co. achieved a turnover of Rs. 331 Lakh as against
Rs. 39 Lakh in the previous year. Profit after Tax also increased to
Rs. 9.83 lakh as compared with Rs. 1 lakh in the previous year.
The Co. is set to further expand its business by exploring new areas
and consolidating its position in the existing spheres in the coming
year
- Subsidiary companies Consolidated Financial Statement
The Board of Directors by a resolution at the meeting held on
30.05.2011 given consent for not attaching the Balance Sheet and
Financial statements in terms of the Central Govt. Ministry of
Corporate Affairs Circular No. 2/11 dated 08.02.2011. The consolidated
financial statements however have full details of the financial portion
of the subsidiaries as per the general approval of the Central Govt.
Circular dated 08.02.2011.
- Increase in Share Capital
During the year under review the equity capital of the company was
augmented by fresh infusion equity by roping in strategic investor
valued at Rs. 10,20,00,000/-
- CORPORATE SOCIAL RESPONSIBILITY
The company has taken initiatives in sponsoring building road con-
necting two small villages to the nearest Block level offices in the
Nadia district of West Bengal. The Company through its Educational
Society proposes to impart skill development to at least 100 students
so that they are industry ready and employable.
- HUMAN RESOURCE DEVELOPMENT
The Company's recruitment policy ensures suitable candidate with merit
are selected from campus. Your Company constantly strives on
improvement in the project management competency of its associates and
personnel by continuous up gradation of their skills by training and
development. The Company's expansion globally has resulted in glo- bal
cultural integration since the Company employs people from vari- ous
foreign countries. The Company's HR policies and processes are aligned
to effectively drive its expanding business and emerging op-
portunities. Attrition during the fiscal remained within reasonable
pro- portion.
- QUALITY
The ISO 9001-2008 certification includes Company's state-of-the art
Global Delivery Centre at Salt Lake, Kolkata, Service & Support
Division, Human Resource Department, Accounts Department
Tendertimes.com, IndiaOneStop.com. Internal audit checks are con-
ducted once every quarter for all the units. The software division of
the Company is continuing its efforts to be CMM level 4/5 compliant and
to implement ISMS (Information Security Management System) in its salt
lake facility.
- CORPORATE GOVERNANCE
The Company has complied with the requirement of Corporate Gover- nance
as stipulated under clause 49 of the Equity listing agreement with the
Stock Exchanges and accordingly, the Report on Corporate Governance
forms part of the Annual Report.
The requisite certificate from the Auditors of the Company, M/s.
Goenka, Shaw & CO, regarding compliances with the conditions of the
Corpo- rate Governance is annexed to this Report as also the Management
Discussion and Analysis which is given as Annexure to this Report.
- TECHNOLOGY, R & D AND FOREIGN EXCHANGE
The Company operates in various state-of-art technology areas and has
developed the necessary related skills.
The Technology Change Management Group of the Company con- tinuously
scans the market for new technologies, design systems and processes to
induct such new technologies.
The foreign exchange earnings and outgoes for the year ended 31st
March, 2011
(Amount in Rs.)
2011 2010
Earnings 9,66,58,922 8,45,16,251
Outgoes 5,63,101 6,68,763
- PERSONNEL
The Particulars of Employees, as per Section 217(2A) of The Companies
Act, 1956 read with The Companies (Particulars of Employees) Rules,
1975 is Nil.
- DIRECTOR'S RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the companies (Amendment) Act, 2000,
the Directors confirm that in preparation of the annual accounts, the
applicable accounting standards have been followed. Appropriate
accounting policies have been selected and applied consistently and
judgment and estimates made are reasonable and prudent so as to give
true and fair view of the affairs of the Company as on 31st March,
2011, and of the profit of the Company for the period 1st April 2010 to
31st March, 2011. Proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other irregu-
larities and the annual accounts have been prepared on a going con-
cern basis.
- FIXED DEPOSITS
The Company has not accepted any fixed deposit during the year under
review pursuant to Rule - 4A of the Companies (Acceptance of deposits)
Rules, 1975.
- DIRECTORS
In accordance with the requirements of the Companies Act 1956 read with
the provisions of the Articles of Association of the Company, Shri
Kaustuv Ray has been appointed as Additional Director and desig- nated
as Joint Managing Director, who holds the Office till the expiry of AGM
being eligible will be reappointed as Jt. Managing Director at AGM.
Robin Ghosh retires by rotation and being eligible offers himself for
re-appointment.
- AUDITORS
M/s. Goenka Shaw & Co., Chartered Accountants, the Auditors of the
Company, retire at the ensuing Annual General Meeting and have ex-
pressed their willingness to continue till conclusion of next AGM of
the company, if re-appointed.
- ACKNOWLEDGEMENT
Your Directors take this opportunity to thank its customers both in
India and abroad, investors, business partners, bankers, financial
insti- tutions, business associates and advisors for their consistent
support to the Company. Your Directors place on record their
appreciation of the contributions made by employees at all level
through hard work, cooperation and dedication, which has enabled the
Company to move forward. Your Directors once again take this
opportunity to thank the Governments of India, UK, UAE, Holland,
Australia & USA for their cooperation and assistance in enabling your
Company to enter the global marketplace.
For and on behalf of the Board of Directors
Sd/- Sd/-
S. V. Ramani B. Hari
Whole-time Director Chairman and
and Secretary Managing Director
Place : Kolkata, India
Date : 30th May 2011
Mar 31, 2010
The Directors are pleased to present the Twentysecond Annual Report
together with the Audited Statement of Accounts and the Auditors
Report of your Company for the Financial Year ended March 31, 2010. The
financial highlights for the year under review are given below:
(Rs. in Lacs)
Amount Amount
Sl. No. Description for the year
ended for the year
ended
31.03.2010 31.03.2009
1. Total Income 3558.30 2419.33
2. Total Expenditure 3185.73 2907.73
3. Profit before interest,
depreciation & tax 372.57 (488.40)
4. Finance Charges 234.62 180.05
5. Depreciation & impairment
loss 128.94 189.86
6. Other income 28.79 112.65
7. Profit/(Loss) on sale of Assets - 3.75
8. Profit before tax 37.80 (741.91)
9. Provision for tax 12.00 -
10. Provision for Fringe
Benefit Tax - 4.00
11. Deferred Tax - Asset 9.22 3.82
12. Profit after tax 16.58 (749.73)
13. Distributable Profit
Appropriation:-
Transfer to General Reserve - -
RESULTS OF OPERATIONS
- There has been significant improvement in the financial position of
the Company during year under review principally due to improvement in
the business scenario globally. The companys focus on domestic
business has also contributed significantly to the improved financial
position
- The Companys total revenue increased to Rs. 3587.09 lacs from
Rs.2535.73 lacs in the previous year at a growth rate of 41.46 %.
- Profit before tax is Rs.37.80 lacs during the year as against loss of
Rs.741.91 lacs in the previous year.
- The Net profit after tax showed a positive figure of Rs.16.58 lacs
against a loss of Rs.749.73 lacs in the previous year.
PERFORMANCE REVIEW OF BUSINESS UNITS
- Enterprise Solution Group
Enterprise Solution Group provides end to end simple window turnkey
solution highly beneficial to existing and new customers. Building on
the success achieved with application of offshore -onsite combo model
in collaboration with Ontrack Australia and UK, ESG plans to expand
their business overseas through the wholly owned subsidiaries at UAE,
Australia and UK.
The future focus would be venturing into end to end solution combining
the strength on Internet Service Provider Also expanding the Touch
screen Information kiosks which finds ready application in Railways ,
Power and other core sectors including e-governance projects in various
Government departments.
- Tendertimes.com
The Companys offering of Secure T tender Management solution has been
very widely received by the customers. E-procurements with e-auction
and e-reverse auction suits are now being offered to clients on a trial
basis.
E-procurement has been universally recognized as a method to reduce and
manage enterprise costs.
The Company has now embarked on offering on-line end to end tender
management solutions keeping in mind the market demands for such cost
effective technology for transparent tendering process.
tendertimes will continue to add more value to its brand equity and
enjoy its premium and leadership position in the e-tendering domain.
- Indiaonestop.com
Indiaonestop.com is continuing its efforts to strengthen its e-platform
in providing more and more valuable and updated information for its
Indian business and industry helping exchange of information, views
between India and other countries. During the year under review the
portal registered over 4.5 million visits from over 90 countries. The
revenue from Sales of Project reports maintained a healthy upward
trend. Overseas clients were added from as far as Germany, Libya, UAE,
USA, Egypt, Venezuela, Bahrain, Saudi Arabia and Pakistan.
- ERP Solutions and Training
MS Dynamics practice has expanded providing solution to clients in
different parts of the country. SME segment have been targeted
different suits depending on the clients needs. A Memorandum of
Understanding was signed between West Bengal Industry Development
Corporation Ltd. (Webel - a nodal agency for development of IT and ITES
industry in West Bengal) and our Company by offering a six months
certificate course for training in ERP and Management practice in
Microsoft Dynamics NAV and Axapta. The response has been encouraging.
Some of the training personnel are absorbed in the Company for
execution of various projects in hand.
Subsidiary Companies
- UK: market continues to reel under recession. It is a great
opportunity for us to offer natural offshore facilities from India. The
Managed service space Application development and Maintenance
especially in the Small and Medium segment will be continued focus in
UK. Ontrack UK bagged a prestigious offshore development order from a
UK based pharmacy chain for developing POS and back end software
support from India.
- UAE: New clients in the Government section from different Emirates
were acquired.As a solution partner, UAE subsidiary has been
implementing Remote Infrastructure and Solution support to various
clients both in the Govt. and the private sector.
An Emiratization Project which has been successfully supported for more
than 3 years was further enhanced with new feature rollouts. Expansion
initiatives to other GCC countries is being pursued with interest of
Partnership from entities in Saudi Arabia and Bahrain.
The focus will remain in Long term onsite support contacts and large
government projects.
- Australia: Oz subsidiary signed Partner agreement with SAP Australia
for selling and implementing SAP Business One in various industry
vertical especially in the SMB industry segment. The focus would be
offshore- onshore combo model including getting new IT Managed service
contracts.
Business outlook is improved substantially after the general financial
pressure eased a little and business has started picking up. Based on
the success achieved during past year , Australia subsidiary portfolio
now includes pre-configured solutions for logistics, end to end single
window service IT consultancy besides extended SAP R/3 through cost
effective SAP remote support.
- Subsidiary companies Consolidated Financial Statement
In terms of Section 212 of the company Act 1956 we are required to
attach to the Directors Report, Balance Sheet and Profit & Loss
account of our subsidiaries. We had applied to the Government of India
for an exemption from such an attachment as we present the audited
consolidated financial statement in the Annual Report. The Govt. of
India has granted us an exemption from complying with section 212 vide
the approval letter No.: 47/679/2010-CL-III. Accordingly the annual
report does not contain the financial statement of subsidiaries.
However the consolidated financial statements of the subsidiaries are
separately published.
- Increase in Share Capital
During the year under review the equity capital of the Company was
augmented by fresh infusion of equity by roping in strategic investor
valued at Rs. 1,19,17,050/-.
- Corporate Social Responsibility
The Company has taken initiatives in sponsoring building road
connecting two small villages to the nearest Block level offices in the
Nadia district of West Bengal. The Company through its Educational
Society proposes to impart skill development to atlest 50 students so
that they are made industry ready and employable.
- HUMAN RESOURCE DEVELOPMENT
The Companys recruitment policy ensures suitable candidates with merit
are selected from campus. Your Company constantly strives on
improvement in the project management competency of its associates and
personnel by continuous upgradation of their skills by training and
development. The Companys expansion globally has resulted in global
cultural integration since the Company employs people from various
foreign countries. The Companys HR policies and processes are aligned
to effectively drive its expanding business and emerging opportunities.
Attrition during the fiscal remained within reasonable proportion.
- QUALITY
The ISO 9001-2008 certification includes Companys state-of-the- art
Global Delivery Centre at Salt Lake, Kolkata. ISO internal audit checks
are conducted once every quarter for all divisions including accounts
department that was brought under the purview of ISO Audit last year.
The Company has taken initiatives to become CMM level 4/5 compliant and
to implement ISMS (Information Security Management System).
- CORPORATE GOVERNANCE
The Company has complied with the requirement of Corporate Governance
as stipulated under clause 49 of the Equity listing agreement with the
Stock Exchanges and accordingly, the Report on Corporate Governance
forms part of the Annual Report.
The requisite certificate from the Auditors of the Company, M/s.
Goenka, Shaw & CO, regarding compliances with the conditions of the
Corporate Governance is annexed to this Report as also the Management
Discussion and Analysis which is given as Annexure to this Report.
- TECHNOLOGY, R & D AND FOREIGN EXCHANGE
The Company operates in various state-of-art technology areas and has
developed the necessary related skills.
The Technology Change Management Group of the Company continuously
scans the market for new technologies, design systems and processes to
induct such new technologies.
The foreign exchange earnings and outgoes for the year ended 31st
March, 2010
(Amount in Rs.)
2010 2009
Earnings 8,45,16,251 14,78,41,514
Outgoes 6,68,763 6,72,627
- PERSONNEL
The Particulars of Employees, as per Section 217(2A) of The Companies
Act, 1956 read with The Companies (Particulars of Employees) Rules,
1975 is Nil.
- DIRECTORS RESPONSIBILITY
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000,
the Directors confirm that in preparation of the annual accounts, the
applicable accounting standards have been followed. Appropriate
accounting policies have been selected and applied consistently and
judgment and estimates made are reasonable and prudent so as to give
true and fair view of the affairs of the Company as on 31st March,
2010, and of the profit of the Company for the period 1st April 2009 to
31st March, 2010. Proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities and the annual accounts have been prepared on a going
concern basis.
- FIXED DEPOSITS
The Company has not accepted any fixed deposit during the year under
review pursuant to Rule - 4A of the Companies (Acceptance of deposits)
Rules, 1975.
- DIRECTORS
In accordance with the requirements of the Companies Act 1956 read with
the provisions of the Articles of Association of the Company Shri Robin
Ghosh and Shri Ramadevan Krishnaswamy retire by rotation and being
eligible offer themselves for re-appointment.
- AUDITORS
M/s. Goenka Shaw & Co., Chartered Accountants, the auditor of the
company retire at the ensuing AGM and have expressed their willingness
to continue till conclusion of next AGM of the company, if
re-appointed.
- ACKNOWLEDGEMENT
Your Directors take this opportunity to thank its customers both in
India and abroad, investors, business partners, bankers, financial
institutions, business associates and advisors for their consistent
support to the Company. Your Directors place on record their
appreciation of the contributions made by employees at all level
through hard work, cooperation and dedication, which has enabled the
Company to move forward. Your Directors once again take this
opportunity to thank the Governments of India, UK, UAE, Holland,
Australia & USA for their cooperation and assistance in enabling your
Company to enter the global marketplace.
For and on behalf of the Board of Directors
Sd/- Sd/-
Place : Kolkata, India S. V. Ramani B. Hari
Date : 29th May, 2010 Whole-time Director Managing Director
and Secretary
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