Home  »  Company  »  PCS Technology  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of PCS Technology Ltd.

Mar 31, 2015

The Members,

PCS TECHNOLOGY LIMITED

The Directors of the Company are pleased to present the 34th Annual Report with the statement of audited financial accounts for the financial year ended 31st March 2015.

FINANCIAL RESULTS (Rs in lakhs)

Particulars Financial Year ended Financial Year ended 31.03.2015 31.03.2014

Net sales and services 10,046 10,060

Gross Profit 972 821

Depreciation 105 73

Profit for the year from Operations 867 748

Corporate Social Responsibility Expense 10 -

Provision for Taxation (Net) 312 346

Profit for the year / available for Appropriation 545 402

Balance of Profit/(Loss) available in Balance Sheet 1,545 1,000

OPERATIONS

In the year under review, the Company continued to witness the challenges in the price competition.

During the year under review, your Company has achieved Net Sales of Rs. 10046 lakhs as against Rs. 10060 lakhs in the previous year.

As planned in the interest of the Company, the Company has started focusing more on expanding IT & Facility Management Services which is now a major key driver over IT Hardware business operations, for improvement of margins & profitability. We are pleased that with the discontinuing of the manufacturing of computer hardware related activities, the overall profitability has improved. However, the current margins will remain under pressure due to rising trend in the manpower cost in the IT industry.

Adequacy of Internal Financial Control : The Company has in place adequate internal control procedures commensurate with the size of the Company and the nature of its business.

SCHEME OF AMALGAMTION AND ARRANGEMENT

The Scheme of Amalgamation and Arrangement between PCS International Limited, Mauritius ('PIL Mauritius' or 'the Transferor Company') and PCS Technology Limited ('PTL' or 'the Company' or 'the Transferee Company') and their respective Shareholders under Sections 391 to 394 read with Sections 100 to 103 of the Companies Act, 1956 and Section 52 of the Companies Act, 2013 and other applicable provisions of the Companies Act, 1956 and the Companies Act, 2013, ("the Scheme") has been sanctioned by the Hon'ble Bombay High Court on 8th May, 2015.

The Scheme was approved by the Board of Directors in its meeting held on 21st May, 2014 and the Company received 'No Objection' letter in support of the Scheme from BSE Ltd, Pune Stock Exchange Ltd. Subsequently, the Scheme was approved by the Equity Shareholders, Secured Creditors and Unsecured Creditors of the Company on 23rd January, 2015. The Scheme inter-alia provides for the merger of PIL Mauritius into the Company and also provides for financial restructuring of the Company with respect to its unproductive activities. Accordingly, it proposed to write off certain stressed assets against the Securities Premium Account and other available reserves.

The Company has submitted an authenticated copy of the Court Order approving the Scheme by the Hon'ble Bombay High Court on 8th May. 2015 with the Regulatory Authority at Mauritius for the striking off the name of PIL Mauritius from their records. The letter confirming the approval of the Registrar of Companies, Mauritius for the removal of the name of "PCS International Limited" Mauritius (PIL) from their record on 3rd June, 2015 has been received by the Company.

The Appointed Date for the Scheme is 1st April 2014. Since the name of PIL has been removed by the Regulatory Authority at Mauritius and the said Bombay High Court Order has been filed by the Company with the Registrar of Companies, Pune on 18th June, 2015 the effect of the Scheme will be given in the books of Accounts of the Company for the Financial Year 2015-16 with effect from the appointed date 1st April, 2014.

EXTRACTS OF ANNUAL RETURN

In accordance with Section 134 (3) (a) of the Companies Act, 2013 an extracts of the Annual Return in prescribed format is annexed and marked as Annexure 1 to the Board's Report.

DIVIDEND

In order to conserve the resources of the Company, your Directors express their inability to recommend any dividend for the financial year ended 31st March 2015.

RESERVES

Since the Company do not recommend any dividend, it is not required to transfer any amount to the General Reserve of the Company for the year under review. MATERIAL CHANGES & COMMITMENTS AFFECTING THE FINANCIAL POSITIONS OF THE COMPANY

No, material changes & Commitments have occurred between the end of Financial year of the Company to which the Financial statement relates and the date of this report which affects the financial position of the Company.

ANNUAL PERFORMANCE EVALUATIONS

In Compliance with the Companies Act, 2013 and clause 49 of the Listing Agreement, the performance evaluation of the Board was carried out during the year under review.

The criteria for performance evaluation as laid down by the Nomination Committee, and are mentioned in Corporate Governance attached to the Directors' Report of the Company.

DIRECTORS

Cessation

Mr. Narendra Kumar Patni, (Din. 00179131) Director of the Company passed away on June 03, 2014.

We condole the untimely demise of Mr. N. K. Patni and took on record the invaluable contributions made by him during his tenure as the Director towards the progress of the Company.

Mr. Apoorva Patni, resigns from the Board of Directors of the Company w.e.f 22nd July, 2015. The Company takes on record the invaluable contributions made by him during his tenure as the Director towards the progress of the Company.

Retirement by Rotation

As per Article 135 of the Articles of Association of the Company, Mr. G. K. Patni (Din- 00014163), Director of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment on the Board of your company.

Appointment

Mrs. Vandana Gupta has been appointed as a Woman Director and also as an Independent Director of the Company under provision of the Companies Act, 2013 with the effect from 16th March, 2015.

Mr. Yash Bhardwaj has been appointed as an additional director and designated as Executive Director of the Company under provision of the Companies Act, 2013 with the effect from 22nd July, 2015.

Declaration given by Independent Director

The Company has received necessary declaration from each independent director under Section 149 (7) of the Companies Act, 2013, that he/she meets criteria of independence laid down in Section 149 (6) of the Companies Act, 2013 and Clause 49 of the Listing Agreement.

None of the independent directors are due for re-appointment.

Board and Audit Meetings

During the year under review, five Board Meetings and five Audit Committee Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.

Remuneration Policy

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy on directors' appointment and remuneration including criteria for determining qualifications, positive attributes including independence of a directors of the Company.

The Remuneration Policy is stated in the Corporate Governance Report.

COMMITTEES OF THE BOARD

Currently the Board has four committees, the Audit Committee, Stakeholders' Relationship Committee, Nomination and Remuneration Committee and Corporate Social Responsibility Committee (CSR Committee). The Composition of each of the committee is mentioned in the Annexure 2 of the Boards' Report.

STATUTORY AUDITOR

The Company's Auditor, Mr. S. C Bandi of Messrs S.C Bandi & Co. , Chartered Accountants, Mumbai who have been appointed at the Annual General Meeting of the Company held on 17th September, 2014 for the period of three Consecutive years. As required under Clause 49 of the Listing Agreement, the auditors has also confirmed that he hold a valid certificate issued by the Institute of Chartered Accountants of India.

SECRETARIAL AUDITOR

Mr. Bhavesh Desai of M/s. B. Desai & Associates, Practicing Company Secretary was appointed to conduct the secretarial audit of the Company for the financial year 2014-15 as required under Section 204 of the Companies Act, 2013 and Rules thereunder. The Secretarial Audit report for FY 2014-15 forms part of the Annual report as Annexure 3 to the Board's Report.

SIGNIFICANT AND MATERIAL ORDERS

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concerns status and company's operations in future. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to sub-section (3C) of Section 134 of the Companies Act, 2013, the Board of Directors of the Company hereby confirms that:

1. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

2. Appropriate accounting policies have been selected and applied consistently and have 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 as at 31st March, 2015 and of the profit of the company for the said year;

3. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

4. Annual Accounts have been prepared on a going concern basis.

5. Internal Financial controls are followed by the Company in adequate manner and are operating effectively, and.

6. The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

In view of the provisions relating to CSR contained in new Companies Act, 2013, the Board of Directors of your Company has set up a CSR Committee comprising four directors viz. Mr. G. K. Patni, Non-Executive Director, Mr. A. K. Patni, Non-Executive Director, Mr. G M Dave, a Non-Executive Independent Director, and Mr. H. C. Tandon, Managing Director and CEO of the Company. The Committee will oversee and monitor its CSR activities in line with the CSR policy of the Company in compliance with the provisions of the Companies Act, 2013

CRS has been integral part of the Company. The CSR policy on the Company is displayed on Company's website www.pcstech.com. CSR report along with the CSR activates are annexed herewith in the report and marked as Annexure 4.

Initiations taken by Company for CSR:

During the year under review the Company has contributed Rs. 10 lakhs to the Chief Minister Flood Relief Fund, Jammu & Kashmir in the month of September 2014. The Company has contributed in CSR activities as prescribed u/s 135 (5) of Companies Act, 2013.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

All the Details regarding Loans, Guarantees and Investments as required under provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.

All the Related party transactions are presented to the Audit Committee and the Board approval is obtained for the transactions made by the Company.

Investment by the Company

During the year under review, the Company has subscribed to the Equity Share Capital of the Company's wholly owned subsidiary company PCS Infotech Limited, for cash at par for an aggregate investment amount of Rs. 45,00,000/- (Rupees Forty Five Lakhs only).

RELATED PARTY TRANSACTIONS

All transactions entered into with Related Parties as defined under the Companies Act, 2013 and Clause 49 of the Listing Agreement during the financial year were in compliance to the provisions of Section 188 of the Companies Act, 2013. There were no materially significant transactions with related parties during the financial year which were in conflict with the interest of the Company. Suitable disclosure as required by the Accounting Standards (AS18) has been made in the notes to the Financial Statements. The Board has approved a policy for related party transactions which has been uploaded on the Company's website.

CORPORATE GOVERANCE

A report on Corporate Governance and Management Discussion Analysis is included as a part of the Annual Report along with a Certificate from the Statutory Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the amended Listing Agreement. Corporate Governance report is annexed herewith and marked as Annexure 5.

DEPOSITS

Your Company has neither invited nor accepted any deposits from the public so far.

CODE OF CONDUCT

The Board of Directors has approved a Code of Business Conduct which is applicable to the Members of the Board and all employees. The Code has been posted on the Company's website www.pcstech.com. The Code lays down the standard of conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. The Code gives guidance through examples on the expected behavior from an employee in a given situation and the reporting structure. All the Board Members and the Senior Management personnel have confirmed compliance with the Code.

SUBSIDIARY COMPANY

As required under Section 129 of the Companies Act, 2013 the Audited Balance sheet and Profit & Loss Account and the respective reports of the Board of Directors' and Auditors' for the financial year ended 31st March 2015 of PCS International Limited, Mauritius, PCS Technology USA., Inc., PCS Positioning Systems (India) Limited and PCS Infotech Limited are annexed.

Pursuant to the first proviso to sub section (3) of Section 129 to be read with Rule 5 of the Companies (Accounts) Rules, 2014 of the Companies Act, 2013 the statement containing the salient features of the financial statement of each of the subsidiary company are also annexed and marked as Annexure 6.

CONSOLIDATED FINANCIAL STATEMENT

The consolidated Financial Statements have been prepared in accordance with the provisions of Section 129 of the Companies Act, 2013, applicable Accounting Standards and the provisions of the Listing Agreement with Stock Exchanges and forms part of this Annual Report.

PARTICULARS OF EMPLOYEES

The table containing the names and other particulars of employees in accordance with the provisions of Section 197 (12) of the Companies Act, 2013 read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel ) Rules , 2014 is appended as Annexure 7 to the Board's Report.

During the financial year, there were no employees drawing remuneration in excess of the monetary ceiling prescribed under Section 197 read with Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS/OUTGO

The Information required under the above heads in accordance with the provision of section 134(3) (m) of the Companies Act, 2013 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, are given in Annexure '8' to this report.

ACKNOWLEDGEMENTS

Your Directors express their warm appreciation to all the employees at various units for their diligence and contribution made towards the growth of the Company. The Board of Directors place on record their appreciation for the un-stinted support by the Bankers and Financial Institutions and confidence given by the Customers, Suppliers and Shareholders at all levels towards the growth and development of the Company.

On behalf of the Board of Directors

G.K. Patni

Chairman

Mumbai, July 22, 2015




Mar 31, 2014

Dear Members,

The Directors of the Company are pleased to present the 33rd Annual Report with the statement of audited financial accounts for the financial year ended 31st March 2014.

FINANCIAL RESULTS (Rs. in lakhs)

Particulars Financial Financial Year ended Year ended 31.03.2014 31.03.2013

Net sales and services 10,060 9,753

Gross Profit 821 564

Depreciation 73 73

Profit for the year from Operations 748 491

Provision for Taxation (Net) 346 138

Profit for the year / available 402 354 for Appropriation

Balance of Profit/(Loss) available 1000 598 in Balance Sheet

OPERATIONS

In the year under review the Company continued to witness the challenges in the price competition.

During the year under review, your Company has achieved Net Sales of Rs. 10,060 lakhs as against Rs. 9,753 lakhs in the previous year.

As planned in the interest of the Company, the Company has started focusing more on expanding IT & Facility Management Services which is now a major key driver over IT Hardware business operations, for improvement of margins & profitability. We are pleased that with the discontinuing of the manufacturing of computer hardware related activities, the overall profitability has improved. However, the current margins will remain under pressure due to rising trend in the manpower cost in the IT industry.

SCHEME OF AMALGAMTION AND ARRANGMENT

The Board of Directors in its meeting held on August 14, 2013 had approved the Scheme of Amalgamation & Arrangement between PCS Positioning Systems (India) Limited (''PPSIL'') and PCS International Limited, Mauritius (''PIL Mauritius'') and PCS Technology Limited (''PTL'' or ''the Company''). The Scheme inter-alia provided for the merger of the PPSIL and PIL Mauritius into PTL effective from March 31, 2014. The Scheme also provided for write off of certain stressed assets against the Securities Premium Reserve and other available Reserves.

In terms of SEBI circular dated February 4, 2013 read with circular dated May 21, 2013, the Company had obtained a No Objection Letter dated November 26, 2013 from BSE Limited, the designated Stock Exchange and also obtained a No Objection Letter dated September 25, 2013 from Pune Stock Exchange Ltd. Due to on-going litigation for some assets of PPSIL, the Company could not proceed with the implementation of the Scheme, due to which the Board of the Company at their meeting held on May 21, 2014 decided to alter the Scheme (''Altered Scheme'') providing inter-alia for:

1. Withdrawing the merger of PPSIL with the Company; and

2. Amending the Appointed Date to April 1, 2014.

The Altered Scheme therefore provides for amalgamation of PIL Mauritius with the Company and write-off of certain stressed assets against Securities Premium Reserve and other available Reserves.

The Company has already initiated steps to intimate to the Stock Exchanges about the Altered Scheme which will also be subject to the approval of shareholders and relevant jurisdictional authorities.

DIVIDEND

In order to conserve the resources of the Company, your Directors express their inability to recommend any dividend for the financial year ended 31st March 2014.

DIRECTORS

As per Article 135 of the Articles of Association of the Company, Mr. P. V. Mehta, Mr. Satish Ajmera and Mr. G. M. Dave, Directors of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment on the Board of your company.

Pursuant to Sections 149, 152 and other applicable provisions of the Companies Act, 2013 and the rules made thereunder read with Schedule IV of the Companies Act, 2013 and subject to the approval of the Company in Annual General Meeting, the Board of Directors at its meeting held on 30th May, 2014 appointed Mr. P. V. Mehta, Mr. Satish Ajmera, Mr. G M Dave, Mr. K . K. Barjatya and Mr. D B Engineer as Independent Directors of the Company for five consecutive years for a term upto 31st March, 2019.

A brief note on Directors retiring by rotation and being eligible for re-appointment as well as the appointment of Independent Directors is furnished in the Explanetory stament annexed to the notice convening the Annual General Meeting.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

In view of the provisions relating to CSR contained in new Companies Act, 2013, the Board of Directors of your Company has set up a CSR Committee comprising of four directors viz. Mr. G M Dave, a Non-Executive Independent Director, Mr. G. K . Patni, Non- Executive Director, Mr. A. K. Patni, Non-Executive Director and Mr. H. C. Tandon, Managing Director and CEO of the Company. The Committee will recommend CSR Policy for the Company to the Board for approval in due course and will oversee and monitor its CSR activities in line with the said policy in compliance with the provisions of the Companies Act, 2013.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956, the Board of Directors of the Company hereby confirms that:

1. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

2. Appropriate accounting policies have been selected and applied consistently and have 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 as at 31st March, 2014 and of the profit of the company for the said year;

3. 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;

4. Annual Accounts have been prepared on a going concern basis.

CORPORATE GOVERNANCE

A report on Corporate Governance and Management Discussion Analysis is included as a part of the Annual Report along with a Certificate from the Statutory Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the amended Listing Agreement.

DEPOSITS

Your Company has neither invited nor accepted any deposits from the public so far.

SUBSIDIARY COMPANY

As required under Section 212 of the Companies Act, 1956 the Audited Balance sheet and Profit & Loss Account and the respective reports of the Board of Directors'' and Auditors'' for the financial year ended 31st March 2014 of PCS International Limited, Mauritius, PCS Technology USA., Inc., PCS Positioning Systems (India) Limited and PCS Infotech Limited are annexed.

CONSOLIDATED FINANCIAL STATEMENT

The consolidated Financial Statements have been prepared in accordance with the applicable Accounting Standards and the provisions of the Listing Agreement with Stock Exchanges and forms part of this Annual Report.

AUDITORS

The Company''s auditors, M/s. S. C. Bandi & Co. Chartered Accountants, retire and being eligible, offer themselves for re- appointment. Your Directors recommend their re-appointment for the ensuing year.

PARTICULARS OF EMPLOYEES

During the financial year, there were no employees drawing remuneration in excess of the monetary ceiling prescribed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975, as amended.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS/OUTGO

The Information required under the above heads in accordance with the provision of section 217(1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, are given in Annexure ''A'' to this report.

ACKNOWLEDGEMENTS

Your Directors express their warm appreciation to all the employees at various units for their diligence and contribution made towards the growth of the Company. The Board of Directors place on record their appreciation for the un-stinted support by the Bankers and Financial Institutions and confidence given by the Customers, Suppliers and Shareholders at all levels towards the growth and development of the Company.

On behalf of the Board of Directors G.K. Patni Chairman

Mumbai, 30th May, 2014


Mar 31, 2013

To The Members of PCS TEChNOLOGY LIMITED

The Directors of your Company are pleased to present the 32nd Annual Report with the statement of audited fnancial accounts for the year ended 31st March 2013.

FINANCIAL RESULTS (Rs. In lacs)

Particulars Financial Year ended Financial Year ended 31.03.2013 31.03.2012

Net sales and services 9817 13619

Gross Proft 565 622

Depreciation 73 391

Proft for the year from Operations 491 231

Provision for Taxation (Net) 138 73

Proft for the year 354 158

Less: Extraordinary items 13

Net Surplus available for Appropriation 354 144

Balance of Proft/(Loss) available in Balance Sheet 598 244

OPERATIONS

In the year under review the Company continued to witness the challenges in the price competition.

During the year under review, your Company has achieved Gross Sales of Rs.9,817 lacs as against Rs.13,619 lacs in the previous year.

As planned in the interest of the Company, the Company has started focusing more on expanding IT & Facility Management Services which is now a major key driver over IT Hardware business operations, for improvement of margins & proftability.

In view of the above restructuring of the business operations, the sales turnover of the Company of the current year will not be comparable with previous year''s sales turnover.

ShARE CAPITAL

Pursuant to the resolution passed by the members at the Annual General Meeting (AGM) held on 21st December 2012 the Company has Re-classifed it''s Authorised Share Capital comprising 2,10,25,000 Equity shares of Rs.10 each and 39,75,000 Redeemable, Non convertible and Non-Cumulative Preference Shares of Rs.10 each, aggregating Rs.25,00,00,000. At the said AGM, the members had also passed a resolution for issue on private placement basis of 39,75,000; 9% Redeemable, Non convertible and Non-Cumulative Preference Shares of Rs.10 each for cash at a Premium not exceeding Rs.125 per share, together with premium aggregating not exceeding Rs.53,66,25,000 to the Promoters and Promoter companies of the Company.

Accordingly, during the year under review the Company has allotted 39,75,000; 9% Redeemable, Non convertible and Non-Cumulative Preference Shares of Rs.10 each for cash at a Premium of Rs.125 per share (Preference shares) to the Promoters and Promoter companies of the Company. The premium amounting to Rs.49,68,75,000 collected on the issue of said preference shares has been credited to Securities Premium Account.

DIVIDEND

In order to conserve the resources of the Company, your Directors express their inability to recommend any dividend for the fnancial year ended 31st March 2013.

DIRECTORS

As per Article 135 of the Articles of Association of the Company, Mr. A. K. Patni, Mr. N. K. Patni and Mr. D. B. Engineer, Directors of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment on the Board of your company.

A brief note on Directors retiring by rotation and being eligible for re-appointment is furnished in the notice convening the Annual General Meeting.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956, the Board of Directors of the Company hereby confrms that:

1. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

2. Appropriate accounting policies have been selected and applied consistently and have 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 as at 31st March, 2013 and of the proft of the company for the said year;

3. Proper and suffcient 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;

4. Annual Accounts have been prepared on a going concern basis.

CORPORATE GOVERNANCE

A report on Corporate Governance and Management Discussion Analysis is included as a part of the Annual Report along with a Certifcate from the Statutory Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the amended Listing Agreement.

DEPOSITS

Your Company has neither invited nor accepted any deposits from the public so far.

SUBSIDIARY COMPANY

During the year under review, the Company has incorporated PCS Infotech Limited as its wholly owned subsidiary with a drive for creating a new image in the feld of Information Technology and enabled services.

As required under Section 212 of the Companies Act, 1956 the Audited Balance sheet and Proft & Loss Account and the respective reports of the Board of Directors'' and Auditors'' for the fnancial year ended 31st March 2013 of PCS International Limited, Mauritius, PCS Technology Inc., USA, PCS Positioning Systems (India) Limited and PCS Infotech Limited are annexed.

CONSOLIDATED FINANCIAL STATEMENT

The consolidated Financial Statements have been prepared in accordance with the applicable Accounting Standards and the provisions of the Listing Agreement with Stock Exchanges and forms part of this Annual Report.

AUDITORS

The Company''s auditors, M/s. S. C. Bandi & Co. Chartered Accountants, retire and being eligible, offer themselves for re- appointment. Your Directors recommend their re-appointment for the ensuing year.

PARTICULARS OF EMPLOYEES

During the fnancial year, there were no employees drawing remuneration in excess of the monetary ceiling prescribed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975, as amended.

CONSERVATION OF ENERGY, TEChNOLOGY ABSORPTION AND FOREIGN EXChANGE EARNINGS/OUTGO

The Information required under the above heads in accordance with the provision of section 217(1) (e) of the companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, are given in Annexure ‘A'' to this report.

ACKNOwLEDGEMENTS

Your directors express their warm appreciation to all the employees at various units for their diligence and contribution made towards the growth of the Company. The Board of Directors place on record their appreciation for the un-stinted support by the Bankers and Financial Institutions and confdence given by the Customers, Suppliers and Shareholders at all levels towards the growth and development of the Company.

On behalf of the Board of Directors

G.K. Patni Chairman

Mumbai, 25th May, 2013


Mar 31, 2012

To The Members of PCS TECHNOLOGY LIMITED

The Directors have the pleasure in presenting their 31st Annual Report together with Audited Accounts for fnancial year ended 31st March 2012.

FINANCIAL RESULTS (Rs. In lacs)

Particulars Financial Financial Year ended Year ended 31.03.2012 31.03.2011

Net sales & Services 13619 18486

Gross Proft 621 586

Depreciation 391 492

Proft for the year from Operations 230 94

Provision for Taxation (Net) 73 22

Proft for the year 157 72

Less: Extraordinary items 13 -

Net Surplus available for Appropriation 144 2379

Balance of Proft/(Loss) available in Balance Sheet 244 2379



OPERATIONS

During the year under review, your Company has achieved Gross Sales of Rs. 13619 Lacs as against Rs. 18486 Lacs in the previous year.

Some of the activities of the Company relating to computer hardware faced stiff competition and affected margins and caused stress on cash fow over the past few years. It was therefore, proposed that in the best interest of Company and its shareholder such of those unproductive activities be restructured and enable Management to better focus on IT and IT enabled services.

In view of restructuring of the business line, the sale turnover of the company will not be comparable to the last year's turnover.

SCHEME OF ARRANGEMENT

As per the "Scheme of Arrangement between the Company and its Shareholders and Creditors" pursuant to the provisions of Sections 391 to 394 read with Sections 78, 100 to 103 of the Companies Act, 1956 and the order passed by Hon'ble High Court of judicature at Bombay, vide order dated 28 September 2012 , the Company has written off some assets of the unproductive activities amounting to Rs. 7899.62 Lacs which have lost economic value to the Company by utilization of Reserves and Surplus as on 31st March 2012.

DIVIDEND

In order to conserve the resources of the Company, your Directors express their inability to recommend any dividend for the fnancial year ended 31st March 2012.

REGISTERED OFFICE OF THE COMPANY

During the year under report, the Company has shifted its Registered offce to new premises bearing unit no 1 situate at Gat no. 478, Alandi Markaal Road, Tal. Khed, Alandi, Dist. Pune - 412 106 as the Plot bearing nos. 148-151 situate at Alandi Markaal Road, Alandi, Pune which was the registered offce of the Company prior to its shifting to Gat no. 478 has been sold.

DIRECTORS

As per Article 135 of the Articles of Association of the Company, Mr. K. K. Barjatya, Mr. Apoorva Patni and Mr. G. K. Patni, Directors of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment on the Board of your company.

A brief note on Directors retiring by rotation and being eligible for re-appointment is furnished in the notice convening the Annual General Meeting.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956, the Board of Directors of the Company hereby confrms that:

1. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

2. Appropriate accounting policies have been selected and applied consistently and have 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 as at 31st March, 2012 and of the proft of the company for the said year;

3. Proper and suffcient 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;

4. Annual Accounts have been prepared on a going concern basis.

CORPORATE GOVERNANCE

A report on Corporate Governance and Management Discussion Analysis is included as a part of the Annual Report along with a Certifcate from the Statutory Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the amended Listing Agreement.

DEPOSITS

Your Company has neither invited nor accepted any deposits from the public so far.

SUBSIDIARY COMPANY

As required under Section 212 of the Companies Act, 1956 the Audited Balance sheet and Proft & Loss Account and the respective reports of the Board of Directors' and Auditors' for the fnancial year ended 31st March 2012 of PCS International Limited, Mauritius and PCS Technology Inc., USA and PCS Positioning Systems (India) Limited are annexed.

CONSOLIDATED FINANCIAL STATEMENTS

The consolidated Financial Statements have been prepared in accordance with the applicable Accounting Standards and the provisions of the Listing Agreement with Stock Exchanges and forms part of this Annual Report.

AUDITORS

The Company's auditors, M/s. S. C. Bandi & Co. Chartered Accountants, retire and being eligible, offer themselves for re- appointment. Your Directors recommend their re-appointment for the ensuing year.

PARTICULARS OF EMPLOYEES

During the fnancial year, there were no employees drawing remuneration in excess of the monetary ceiling prescribed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975, as amended.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS/OUTGO

The Information required under the above heads in accordance with the provision of section 217(1) (e) of the Companies Act 1956, read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, are given in Annexure 'A' to this report.

ACKNOWLEDGEMENTS

Your directors express their warm appreciation to all the employees at various units for their diligence and contribution made towards the growth of the Company. The Board of Directors place on record their appreciation for the un-stinted support by the Bankers and Financial Institutions and confdence given by the Customers, Suppliers and Shareholders at all levels towards the growth and development of the Company.



On behalf of the Board of Directors

G.K. Patni

Mumbai, 18th October, 2012 Chairman


Mar 31, 2011

The Members,

PCS TECHNOLOGY LIMITED

The Directors have the pleasure in presenting their Thirtieth Annual Report together with Audited Accounts for financial year ended 31st March 2011.

FINANCIAL RESULTS (Rs. In lacs)

Particulars (12 Months) (9 Months) Financial Financial Year ended Period ended 31.03.2011 31.03.2010

Gross Revenue 19,137 19,880

Gross Profit 815 1,002

Depreciation 492 431

Profit for the year from Operations 323 571

Bad Debts, Remission & Exceptional 222 273 items

Provision for Taxation (Net) 22 98

Profit for the year 79 200

Net Surplus available for 2379 2300 Appropriation

Balance Carried to Balance Sheet 2379 2300

OPERATIONS

During the year under review, your Company has achieved Gross Revenue of Rs.191 crores as against Rs 198 crores in the previous period.

The Computer Hardware business of your Company has declined over the years due to stiff competitions from MNC and unbranded products. Margin from hardware business continue to remain under pressure. The cash inflow too remains tight demanding high working capital. The Directors of your Company has been evaluating to probably discontinue the Computer Hardware manufacturing and shift its focus more on IT and IT enabled services where margins are much better.

DIVIDEND

In order to conserve the resources of the Company, your Directors express their inability to recommend any dividend for the financial year ended 31st March 2011.

SALE OF ASSETS

Your company has acquired new office premises being 6th and 7th Floor in the building known as "Techhocity", situate at MIDC area, Mahape, Navi Mumbai and intends to shift its Mumbai operations to these premises. With this we propose to sell surplus properities at Alandi (Pune) and Sakinaka (Mumbai). The proposed sale is in the interest of shareholders and the business.

DIRECTORS

Mr. M . Y Kulkarni has resigned as Director of the Company w. e. f. 20th April, 2011 The Board places on record its sincere appreciation for the valuable services rendered by him during the tenure of his office as the Director of the Company.

As per Article 135 of the Articles of Association of the Company, Mr. P. V. Mehta, Mr. Satish Ajmera and Mr. G. M. Dave Directors of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment on the Board of your company.

A brief note on Directors retiring by rotation and being eligible for re-appointment is furnished in the notice convening the Annual General Meeting.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956, the Board of Directors of the Company hereby confirms that:

1. In the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

2. Appropriate accounting policies have been selected and applied consistently and have made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the company as at 31st March, 2011 and of the profit of the company for the said year;

3. 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;

4. Annual Accounts have been prepared on a going concern basis. '

CORPORATE GOVERNANCE

A report on Corporate Governance and Management Discussion Analysis is included as a. part pf the Annual Report along with a Certificate from the Statutory Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the amended Listing Agreement.

DEPOSITS

Your Company has neither invited nor accepted any deposits from the public so far.

SUBSIDIARY COMPANY .

As required under Section 212 of the Companies Act, 1956 the Audited Balance sheet and Profit & Loss Account and the respective reports of the Board of Directors' and Auditors' for the financial year ended 31st March 2011 of PCS International Limited, Mauritius and PCS Technology USA, Inc. and PCS Positioning Systems (India) Limited are annexed.

AUDITORS

The Company's auditors, M/s. S. C. Bandi & Co. Chartered Accountants, retire and are eligible for re-appointment. Your Directors recommend their re-appointmenf for the ensuing year.

PARTICULARS OF EMPLOYEES

During the financial year, there were no employees drawing remuneration in excess of the monetary ceiling prescribed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975, as amended.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS/OUTGO

The Information required under the above heads in accordance with the provision of section 217(1) (e) of the companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, are given in Annexure 'A' to this report.

ACKNOWLEDGEMENTS

Your directors express their warm appreciation to all the* employees at various units-for their diligence and contribution made towards the growth of the Company. The Board of Directors place on record their appreciation for the un-stinted support by the Bankers and Financial Institutions and confidence given by the Customers, Suppliers and Shareholder at all levels towards the growth and development of the Company.

On behalf of the Board of Directors

G. K. Patni Chairman

Mumbai, 31st May, 2011


Mar 31, 2010

The Directors have the pleasure in presenting their Twenty Ninth Annual Report together with Audited Accounts for financial period ended 31st March 2010.

FINANCIAL RESULTS (Rs. In lacs)

Particulars (9 Months) {12 Months) Financial Financial Period ended Year ended 31.03.2010 30.06.2009 Gross Revenue 19,880 29,036

Gross Profit 1,002 1143

Depreciation 431 449

Profit for the year from Operations 571 694

Bad Debts, Remission & Exceptional items 273 137

Provision for Taxation (Net) 98 213

Profit for the year 200 344

Net Surplus available for Appropriation. 2300 2100

Balance Carried to Balance Shee 2300 2100



CHANGE IN FINANCIAL YEAR

Pursuant to the resolution passed by the Board of Directors at its meeting held on 29th April, 2010 current financial year of the Company has been changed commencing from 1st July, 2009 to 31st March, 2010 for a period of nine months (hereinafter referred to as the "said financial period") instead of 1st July, 2009 to 30th June, 2010. Accordingly the accounts of the Company has been prepared and audited for the said financial period ended 31st March, 2010. Further it was also approved & resolved that every subsequent financial year of the Company.be adopted as from April 1 to March 31 following the next calendar year.

OPERATIONS

During the Period under review, your Company has achieved Gross Turnover of Rs.198 crores (9 months) as against Rs 288 crores (12 months).

DIVIDEND

In order to conserve the resources of the Company, your Directors express their inability to recommend a dividend for the current financial period / year ended 31st March, 2010.

DIRECTORS

As per the Article 135 of the Articfes of Association of the company, Mr. G K Patni, Mr. A K Patni, Mr. N. K. Patni and Mr. D. B. Engineer Directors of the Company, retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for reappointment on the Board of your Company.

A brief note on Directors retiring by rotation and eligible for re-appointment is furnished in the notice convening the Annual General Meeting.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to sub section (2AA) of section 217 of the Companies Act, 1956, the Board, of Directors of the Company hereby confirms that:

1. In the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

2. Appropriate accounting policies have been selected and applied consistently and have made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the company as at 31st March, 2010 and of the profit of the company for the period / year on that date;

3. 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;

4. Annual Accounts have been prepared on a going concern basis.

CORPORATE GOVERNANCE

A report on Corporate Governance and Management Discussion Analysis is included as part of the Annual Report along with a Compliance Certificate from the Statutory Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the Amended Listing Agreement.

DEPOSltS

Your company has neither invited nor accepted any deposits from the public so far.

SUBSIDIARY COMPANIES

As required under Section 212 of the Companies Act, 1956 the Audited Balance Sheet and Profit & Loss Account and the respective reports of the Board of Directors and Auditors for the Financial Period ended 31 st MarcK, 2010 of PCS International Limited, Mauritius , PCS Technology USA, Inc. and PCS Positioning Systems (India) Ltd are annexed.

AUDITORS:

The Companys auditors, M/s. S. C. Bandi & Co. Chartered Accountants, retire and are eligible for re-appointment. Your Directors recommend their re-appointment for the ensuing year.

PARTICULARS OF EMPLOYEES

The information as required by the provisions of section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975, hereto as Annexure A and forms part of this report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS/OUTGO

The Information required under the above heads in accordance with the provision of section 217(1) (e) of the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, are given in Annexure B to this report.

ACKNOWLEDGEMENTS

Your directors express their warm appreciation to all the employees at various units for their diligence and contribution made towards the growth of the Company. The Board of Directors place on record their appreciation for the un-stinted support by the Bankers and Financial Institutions and confidence given by the Customers, Suppliers and Shareholder at all levels towards the growth and development of the Company.

On behalf of the Board of Directors

G. K. Patni

Mumbai, 31st May, 2010 Chairman

 
Subscribe now to get personal finance updates in your inbox!