Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting their 23rd Annual Report on
the business and operations of the Company and the
accounts for the Financial Year ended March 31, 2015.
1. Financial Results : (Rs in Lacs)
Particulars Consolidated Standalone
2014-2015 2013-2014 2014-2015 2013-2014
Total Income from 3834.16 5603.13 2540.27 3481.95
Operations
Finance Cost 1015.79 1965.32 863.66 1796.13
Depreciation 1914.30 3282.67 1206.24 925.04
Profit before (2347.46) (4089.77) (1599.48) (1544.03)
Taxation
Provisions for Taxes 191.16 349.20 139.87 297.01
Exceptional Items (1711.29) (143.98) (917.43) (1273.85)
Profit after Taxes (4249.92) (4582.95) (2516.92) (2817.88)
Balance brought 1891.04 6473.99 2930.41 6045.31
forward
Prior Period Income Nil Nil Nil Nil
Appropriations Nil Nil Nil Nil
Profit carried to (2419.30) 1891.04 219.14 2930.41
Balance Sheet
Earnings per share (5.37) (5.79) (3.35) (3.93)
2. Brief description of the Company's working during the year/State of
Company's affair:
During the year the consolidated income from operations was Rs 3834.16
lacs as compared to income from operations of Rs 5603.13 Lacs during
the previous financial year. The consolidated Loss was Rs 4249.92 Lacs
as compared to loss of Rs 4582.95 Lacs during the previous financial
year.
The standalone total income from operations was Rs 2540.27 Lacs as
compared to total income from operations of Rs 3481.95 Lacs during the
previous financial year. The standalone Loss was Rs 2516.92 Lacs as
compared to loss of Rs 2817.88 Lacs during the previous financial year.
3. Dividend:
Due to the loss incurred during the year, the Board of Directors of
your Company does not recommend any dividend for the Financial Year
2014-15.
4. Reserves:
Due to loss incurred during the year the amount is not transferred to
reserves.
5. Share Capital:
During the year under review, there was no change in the share capital
structure and the paid up capital of the Company as on 31st March, 2015
was Rs 158410900. During the year under review, the Company has not
issued shares with differential voting rights, sweat equity shares and
shares under Employees Stock Option Scheme
6. Directors and Key Managerial Personnel:
In accordance with the provisions of the Act and the Articles of
Association of the Company Mrs. Chetna Kothari, Director retire by
rotation at the forthcoming Annual General Meeting and being eligible,
offer herself for reappointment.
During the year under review, the members approved the appointments of
Mrs. Chetna Kothari as a Non-Executive Non- Independent Woman Director
who is liable to retire by rotation and Mr. Paresh Pathak and Mr.
Rajesh Panamburkar as Independent Director who is not liable to retire
by rotation.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet criteria of
independence as prescribed both under the act and Clause 49 of the
Listing Agreement with the stock exchanges.
7. Particulars of Employees:
In terms of the provisions of Section 197(12) of the Act read with
Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, a statement showing the names and
other particulars of the employees drawing remuneration in excess of
the limits set out in the said rules are provided in the Annual Report
is annexed as Annexure I
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Act read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are
provided in the Annual Report is annexed as (Annexure I).
Having regard to the provisions of the first proviso to Section 136(1)
of the Act and as advised, the Annual Report excluding the aforesaid
information is being sent to the members of the Company. The said
information is available for inspection at the registered office of the
Company during working hours and any member interested in obtaining
such information may write to the Company at the registered office of
the Company and the same will be furnished on request.
8. Meetings:
During the year nine Board Meetings and four 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.
9. Board Evaluation:
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, the directors individually as well
as the evaluation of the working of its Audit, Nomination &
Remuneration Committees.
The manner in which the evaluation has been carried out is explained as
follows:-
The Independent Directors of the Company, at their meeting (without the
attendance of Non-Independent Directors and members of management),
reviewed the performance of the Board as a whole and the Board
Committee and also evaluated the performance of Non-Independent
Directors and the Board of the Company taking into account the views of
Executive Directors and Non-Executive Directors and based on attendance
record and intensity of participation at meetings, quality of
interventions, special contributions and interpersonal relationships
with other Directors and Management .
10. Remuneration Policy:
The Board has, on the recommendation of the Nomination & Remuneration
Committee framed a policy for selection and appointment of Directors,
Senior Management and their remuneration policy is attached as
(Annexure- II).
11. Details of Subsidiary:
Pursuant to sub-section (3) of Section 129 of the Act, the statement
containing the salient feature of the financial statement of a
company's subsidiary or subsidiaries is given in Form AOC-I as
(Annexure- III).
Further, the Annual Accounts and related documents of the subsidiary
company shall be kept open for inspection at the Registered & Corporate
Office of the Company. The Company will also make available copy
thereof upon specific request by any Member of the Company interested
in obtaining the same. Further, pursuant to Accounting Standard AS-21
issued by the Institute of Chartered Accountants of India, Consolidated
Financial Statements presented by the Company in this Annual Report
include the financial information of its subsidiary.
12. Auditors:
The Board proposes the re-appointment of M/s Koshal & Associates,
Chartered Accountants, Mumbai as Statutory Auditors, based on the
recommendations of the Audit Committee, to hold office from the
conclusion of the ensuing Annual General Meeting till the conclusion of
the next Annual General Meeting.
The Company has received letter from him to the effect that his
re-appointment, if made, would be within the prescribed limits under
Section 141(3)(g) of the Companies Act, 2013 and they are not
disqualified for re-appointment.
Resolutions seeking your approval on these items are included in the
Notice convening the Annual General Meeting. Members are requested to
consider the appointment of M/s. Koshal & Associates, Chartered
Accountant, Mumbai, for the current year, on a remuneration to be
decided by the Board of Directors.
13. auditors' report
Qualifications mentioned in Auditors Report which are as follows:-
* Non compliance of Section 205(1A) of the Company's Act, 1956:- Due to
liquidity crunch faced by the company, there has been a delay in
payment of dividend to some shareholders.
* Non provision of interest amount :- Due to severe financial crisis,
the Company has requested some of the lenders to waive off some part of
their interest on loan and negotiation on said matter is going on
between the Company and the lenders. On the basis of discussion with
lenders, management feels that no interest provision is required on
loan from some of the lenders however, if any interest provision is
required as per final negotiation it will be made as and when required.
14. Secretarial Audit Report :
In terms of Section 204 of the Act and Rules made there under, M/s.
Jaanvi Joshi & Associates, Company Secretaries, Practicing Company
Secretary have been appointed Secretarial Auditors of the Company. The
report of the Secretarial Auditors is enclosed as (Annexure IV) to this
report. The report is self-explanatory and our reply to the comments
are as follows:-
* During the year we did not get a suitable candidate for the post of
Company Secretary and Chief Financial Officer in our Company as
required in terms of Section 203(1) of the Companies Act, 2013. We are
continuously posting our recruitment for the post of CS in news paper
and on job portal website. We ensure you as soon as we get a suitable
candidate we will appoint immediately.
* As mentioned by the Secretarial Auditor we have paid/ partially paid/
replied to each notices received by us under Section 58AA and Section
73 of the Companies Act, 1956 and Companies Act, 2013 respectively;
* As mentioned by the Secretarial Auditor there is a dispute between
Company and Ahmadabad Stock Exchange for delisting of its securities
and the matter is under dispute. Hence Company has not complied with
the Listing Agreement with Ahmadabad Stock Exchange.
* Due to financial difficulty there is delay in payment of listing fees
to the stock exchanges.
* We have increased our Authorized Capital on 30.09.2013 Annual General
Meeting. But due to heavy stamp duty fee and cash crunch in the company
e-form was not filed with the Registrar of Companies and the same was
not updated on MCA website. Because of that we could not able to file
Annual return (E-Form 20B) in terms of Section 159 of the Companies
Act, 1956 for the year ended March 31, 2014.4
* The Company has received multiple notices under Section 433 and 434
of the Companies Act, 1956 for default of repayment as Company is
facing financial difficulty.
15. Vigil Mechanism/Whistle Blower Policy :
In pursuant to the provisions of Section 177(9) & (10) of the Companies
Act, 2013 and Clause 49 of the Listing Agreement, a Vigil Mechanism/
Whistle Blower Policy for directors and employees to report genuine
concerns has been established. The Vigil Mechanism Policy/ Whistle
Blower Policy has been uploaded on the website of the Company at
www.tilinfo.com under http://www.tilinfo.com/Policies.aspx.
16. Risk Management Policy:
The Company has framed a Risk Management Policy to identify and access
the key business risk areas and a risk mitigation process.
A detailed excise is being carried out that the organization faces such
as strategic, financial, credit, market, liquidity, legal, regulatory
and other risks. The Board periodically reviews the risks and suggests
steps to be taken to control and mitigate the same through a properly
defined framework.
17. Extract of Annual Return:
As required pursuant to section 92(3) of the Companies Act, 2013 and
rule 12(1) of the Companies (Management and Administration) Rules,
2014, an extract of annual return in MGT 9 as a part of this Annual
Report as (Annexure V) .
18. Material changes and commitments, if any, affecting the financial
position of the company which have occurred between the end of the
financial year of the company to which the financial statements relate
and the date of the report:
There is no material changes and commitments, affecting the financial
position of the Company which have occurred between the end of the
financial year of the Company to which the financial statements relate
and the date of the report.
19. Details of significant and material orders passed by the regulators
or courts or tribunals impacting the going concern status and company's
operations in future:
There are no significant and material orders passed by the regulators
or courts or tribunals impacting the going concern status and company's
operations in future.
20. Adequacy of internal Financial Controls.
The Company has adequate internal financial controls in place with
reference to financial statements. These are continually reviewed by
the Company to strengthen the same wherever required. The internal
control systems are supplemented by internal audit carried out by an
Internal Auditor and Statutory Auditor and periodical review by
management. The Audit Committee of the Board addresses issues if any,
raised by both, the Internal Auditors and the Statutory Auditors.
21. Deposits:
The details relating to deposits, covered under Chapter V of the Act,-
(a) accepted during the year; Rs 5,77,63,021/-
(b) remained unpaid or unclaimed as at the end of the year; Rs
19,66,99,921/-
(c) whether there has been any default in repayment of deposits or
payment of interest thereon during the year and if so, number of such
cases and the total amount involved-
(i) at the beginning of the year; Principle - Rs 68,71,000/- Interest -
Rs 23,71,509/-
(ii) maximum during the year; Principle - Rs 4,32,50,116/- Interest -
Rs 1,26,46,438/-
(iii) at the end of the year; Principle - Rs 4,32,50,116/- Interest -
Rs 1,26,46,438/-
The Company has complied with all the requirements of Chapter V of the
Act except Section 73(2) (C ), 73 (3) and 74 (1) (b) of the Companies
Act, 2013.
The Company has filed an application under Section 74(2) of the
Companies Act, 2013 to the Honorable Company Law Board for extension of
time to repay deposits on 09.10.2014 and on amendment of the Company
Law Board regulations, 1991 vide order no. F. No. 113/36/2001-CLB dated
28th January, 2015 (the "order"), the Company once again submitted a
petition in the revised format on 31st March, 2015 to the Honorable
Company Law Board thereby seeking extension of time to repay deposits.
22. Particulars of loans, guarantees or investments under section 186:
Details of Loans, Guarantees and Investments, if any covered under the
provisions of Section 186 of the Act are given in the notes to the
Financial Statements.
23. Particulars of contracts or arrangements with related parties:
The particulars of every contract or arrangements entered into by the
Company with related parties referred to in sub-section (1) of section
188 of the Companies Act, 2013 including certain arm's length
transactions under third proviso thereto shall be disclosed in Form No.
AOC-2. As (Annexure VI).
24. Corporate Governance Certificate:
The Compliance certificate from the auditors regarding compliance of
conditions of corporate governance as stipulated in Clause 49 of the
Listing agreement shall be annexed with the report.
25. Management Discussion And Analysis:
The Management Discussion and Analysis forms part of this Annual Report
for the year ended 31st March, 2015.
26. Disclosures:
Audit Committee:
Audit Committee comprises of Mr. Rajesh Panamburkar, Mr. Paresh Pathak
and Mr. Chetan Kothari. All the recommendations made by the Audit
Committee were accepted by the Board.
27. Obligation Of Company Under The Sexual Harassment Of Women At
Workplace (Prevention, Prohibition And Redressal) Act, 2013:
As per the requirement of The Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 ('Act') and Rules made
there under, your Company has constituted Internal Complaints
Committees (ICC). During the year Company has not received any
complaint of harassment.
28. Conservation Of Energy, Technology Absorption And Foreign Exchange
Earnings And Outgo
The information as prescribed under Section 134(3) (m) of the Companies
Act, 2013, read with the Companies (Accounts) Rules, 2014 is as
follows:
A. Conservation Of Energy:
The operations of your Company are not energy-intensive. However,
adequate measures have been taken to ensure that there is optimum
utilization of energy with no wastage, as far as possible.
B. Technology Absorption And Research & Development:
Your Company develops software to provide efficient Business Process
Outsourcing services to its customers. The systems team of your Company
does continuous research and development for up gradation of the
software, in order to provide better services to its clientele. Your
Company also develops software products to process the data required
for providing services to its customers.
Your Company takes efforts to adapt latest technology and techniques,
which helps it to be in competition.
C. Foreign exchange earnings and Outgo:
During the year, the total foreign exchange used was Rs 2496.41 lakh
and the total foreign exchange earned was Rs 168.58 lakh.
29. Corporate Social Responsibility (CSR):
The Company has constituted Corporate Social Responsibility Committee
on 29th May, 2014 in terms of the provision of Section 135(1) of the
Companies Act, 2013. It comprises three members namely Mr. Chetan
Kothari, Mr. Paresh Pathak and Mr. Rajesh Panamburkar. This CSR
Committee reviews and restates the Company's CSR policy in order to
make it more comprehensive and aligned with the activities specified in
Schedule Vll of the Companies Act, 2013.
As per Section 135(5) of the Companies Act, 2013 and applicable rules
made there under, Company is required to spend in every financial year
at least 2% of average net profits of the company made during the three
immediately preceding financial years.
In this regard CSR committee after discussion arrived to the conclusion
that our Company is not required to spend 2% of average net profits of
the company made during the three immediately preceding financial years
as Company has incurred average net loss during the three immediately
preceding financial years.
Annual Report on CSR activities annexued herewith as Annexure VII
30. Human Resources:
Your Company treats its "human resources" as one of its most important
assets.
Your Company continuously invests in attraction, retention and
development of talent on an ongoing basis. A number of programs that
provide for the motivation of the employees.
31. Directors' Responsibility Statement:
The Directors' Responsibility Statement referred to in clause (c) of
sub-section (3) of Section 134 of the Companies Act, 2013, shall state
thatÂ
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) the directors had 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 and
loss of the company for that period;
(c) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern
basis; and
(e) the directors, in the case of a listed company, had laid down
internal financial controls to be followed by the company and that such
internal financial controls are adequate and were operating
effectively.
(f) the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
32. Acknowledgements
An acknowledgement to all with whose help, cooperation and hard work
the Company is able to achieve the results.
Registered Office: By Order of the Board
Tricom House, Gandhi Estate
Safed Pool, Andheri Kurla Road,
Andheri (East), Mumbai-400072 Chetan Kothari Chetna Kothari
CIN:L65910MH1992PLC068953 Managing Director Director
Place: Mumbai
Date : September 1, 2015
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the Twenty Second Annual
Report together with the Audited Statements of Accounts for the year
ended 31st March, 2014
FINANCIAL RESULTS ( Rs in lacs)
Particulars Consolidated
2014 2013
Total Income from Operations 5,603.13 8,173.95
Interest 1,965.32 2,457.91
Depreciation 3,282.67 983.04
Profit before Exceptional Items & Taxes (4,089.77) (1,338.39)
Provisions for Taxes 349.21 141.83
Exceptional Items (143.98) 272.25
Profit after Taxes (4,582.95) (1,752.48)
Balance brought forward 6,473.99 8,226.47
Appropriations - -
Profit carried to Balance Sheet 1,891.04 6,473.99
Earnings per share (5.79) (2.30)
Particulars Standalone
2014 2013
Total Income from Operations 3,481.95 4,414.89
Interest 1,796.13 2,214.65
Depreciation 925.04 551.99
Profit before Exceptional Items & Taxes (1,544.03) (1,423.30)
Provisions for Taxes 297.01 116.71
Exceptional Items (1,2 73.85) _
Profit after Taxes (3,114.90) (1,540.02)
Balance brought forward 6,045.31 7,585.33
Appropriations 2,930.41 6,045.31
Profit carried to Balance Sheet Earnings per share (3.93) (2.02)
BUSINESS OPERATION
During the year the consolidated income from operations was '' 5,603.13
lacs as compared to income from operations of '' 8,173.95 lacs during
the previous financial year. The consolidated loss was '' 4,582.95 lacs
as compared to loss of '' 1,752.48 lacs during the previous financial
year.
The standalone total income from operations was '' 3,481.95 lacs as
compared to total income from operations of '' 4,414.89 lacs during the
previous financial year. The standalone loss was '' 3,114.90 lacs as
compared to loss of '' 1,540.02 lacs during the previous financial year.
DIVIDEND
Due to the loss incurred during the year, the Board of Directors of
your Company does not recommend any dividend for the Financial Year
2013-14.
FIXED DEPOSITS
Total amount of deposits outstanding as on 31st March, 2014 was ''
24,23,60,647/-.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
state that:
1. In the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures, if any;
2. That appropriate accounting policies have been selected and applied
consistently, and that the judgments and estimates made are reasonable
and prudent so as to give a true and fair view of the state of affairs
of your Company as at the end of the financial year and of the Loss of
your Company for the said period;
3. That 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 your Company and for
preventing and detecting fraud and other irregularities;
4. That the annual accounts have been prepared on a going concern
basis.
SUBSIDIARY COMPANIES
As on 31st March, 2014, the Company has the following subsidiaries:
Domestic subsidiaries
1. eDATA Processing Private Limited (formerly known as Tricom I.T
Services Private Limited)
2. Tricom Infotech Solutions Limited
3. Tricom Data Processing Private Limited (formerly known as Mastiff
Tech Private Limited)
4. Tricom LPO Private Limited
Foreign subsidiaries
1. Tricom Document Management, Inc., USA,
2. Pacific Data Centers, Inc., USA,
3. Tricom Infotech Solutions, Inc., USA,
4. Tricom Infotech Solutions (Cyprus) Limited,
5. Tricom Data Services Inc., USA,
6. Tricom Litigation Coding Services, Inc., USA,
7. Tricom Software Services Inc., USA,
8. Grand Imaging & Technology Inc., USA,
9. Tricom Search Services Inc., USA.
PARTICULARS IN TERMS OF SECTION 212 OF THE COMPANIES ACT
As per Section 212 of the Companies Act, 1956, the Company is required
to attach the Report of Board of Directors and Auditors, Balance Sheet
and Statement of Profit and Loss (financial statements) of its
subsidiaries. In view of the general exemption granted by the Ministry
of Corporate Affairs, Central Government vide General Circular No. 2
and 3 dated 8th February, 2011 and 21st February, 2011 the said reports
and financial statements of the subsidiaries are not attached. However,
the financial data of the subsidiaries have been furnished under
''Details of Subsidiaries'' forming part of the Annual Report. Further,
pursuant to Accounting Standard AS-21 issued by the Institute of
Chartered Accountants of India, Consolidated Financial Statements of
the Company and its subsidiaries for the year ended 31st March, 2014,
together with reports of Auditors thereon and the statement pursuant to
Section 212 of the Companies Act, 1956, are attached.
The financial statements of subsidiaries will be available on a request
made by any member of the Company and will also be available for
inspection by any member at the registered office of the Company.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Reports on Corporate Governance and Management Discussion and Analysis,
Managing Director''s & Auditors Certificate as stipulated under Clause
49 of the Listing Agreement are separately given and form part of this
Annual Report.
As on 31st March, 2014, the Board of Directors of your Company
comprised of three Directors one of whom is the Managing Director. The
remaining two Directors are Non-Executive and Independent Directors.
The composition of the Board is in consonance with Clause 49 of the
Listing Agreement, as amended from time to time, and in accordance with
the applicable provisions of Companies Act, 2013.
In accordance with the provisions of Section 149 and other applicable
provisions of the Companies Act, 2013, your Company is seeking
appointment of Mr. Paresh Pathak and Mr. Rajesh Panamburkar as an
Independent Directors for five consecutive years not liable to retire
by rotation.
Mr. Baldev Boolani retired on 30th September, 2013. The Board places on
record its appreciation for the distinguished service and contribution
made by Mr. Baldev Boolani as a Director of the Company.
Further Mr. Jayant Tanksale resigned on 8th January, 2014. The Board
places on record its appreciation for the distinguished service and
contribution made by Mr. Jayant Tanksale as a Director of the Company.
As per the provisions of Section 149(1) of the Act and amended Clause
49 of the Listing Agreement, the Company should have at least one Woman
Director. Ms. Chetna Kothari was appointed as an Additional Director of
the Company w.e.f. 14th August, 2014 and will be regularized in
forthcoming Annual General Meeting as Non Executive Non Independent
Woman Director.
AUDITORS
The Board proposes the re-appointment of M/s Koshal & Associates,
Chartered Accountants, Mumbai as Statutory Auditors, based on the
recommendations of the Audit Committee, to hold office from the
conclusion of the ensuing Annual General Meeting till the conclusion of
the next Annual General Meeting.
The Company has received letter from him to the effect that his
re-appointment, if made, would be within the prescribed limits under
Section 141(3)(g) of the Companies Act, 2013 and they are not
disqualified for re- appointment.
Resolutions seeking your approval on these items are included in the
Notice convening the Annual General Meeting. Members are requested to
consider the appointment of M/s. Koshal & Associates, Chartered
Accountant, Mumbai, for the current year, on a remuneration to be
decided by the Board of Directors.
AUDITORS REPORT
Qualification mentioned in Auditor Report regarding non provision of
interest amount. Due to severe financial crisis, the Company has
requested some of the lenders to waive off some part of their interest
on loan and negotiation on aforesaid matter is going on between the
Company and the lenders. On the basis of discussion with lenders,
management feels that no interest provision is required on loan from
some of the lenders however, if any interest provision is required as
per final negotiation it will be made as and when required.
CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS & OUTGO
The information as prescribed under 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, 1998 is as follows:
A. CONSERVATION OF ENERGY
The operations of your Company are not energy-intensive. However,
adequate measures have been taken to ensure that there is optimum
utilization of energy with no wastage, as far as possible.
B. TECHNOLOGY ABSORPTION AND RESEARCH & DEVELOPMENT
Your Company develops software to provide efficient Business Process
Outsourcing services to its customers. The systems team of your
Company does continuous research and development for up gradation of
the software, in order to provide better services to its clientele.
Your Company also develops software products to process the data
required for providing services to its customers.
Your Company takes efforts to adapt latest technology and techniques,
which helps it to be in competition.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
The foreign exchange earnings of your Company during the year under
review amounted to Rs.2,942.79 Lacs. The foreign exchange outflow
during the year was Rs.413.12 Lacs.
HUMAN RESOURCES
Your Company regards human capital as the most valuable asset. At the
end of March, 2014, your Company had approx 1,218 employees.
However, none of the employees throughout the financial year were in
receipt of remuneration in excess of the limits as prescribed under
Section 217(2A) of the Companies Act, 1956 (''Act''), read with the
amended Companies (Particulars of Employees) Rules, 1975.
ACKNOWLEDGEMENTS
Your Directors take this opportunity to express their grateful
appreciation for the excellent assistance and co- operation extended by
the banks and Government agencies giving support to your Company. Your
Directors also thank all the shareholders for their continued support
and all the employees and vendors of your Company for their valuable
services during the year.
Place : Mumbai BY ORDER OF THE BOARD
Date : 27th August, 2014
Chetan Kothari
CHAIRMAN
Mar 31, 2013
Dear Members,
The Directors have pleasure in presenting the Twenty First Annual
Report together with the Audited Statements of Accounts for the year
ended March 31,2013.
FINANCIAL RESULTS (Rs. in lacs)
Particulars Consolidated Standalone
2013 2012 2013 2012
Total Income from
Operations 8,173.95 13,750.67 4,414.89 8,007.34
Profit before
Interest,
Depreciation
and Taxes 2,102.55 4,349.40 1,343.33 3,467.29
Interest 2,457.91 1,813.27 2,214.65 1,520.98
Depreciation 983.04 944.02 551.99 535.62
Profit before
Taxation (1,338.39) 1,592.11 (1,423.30) 1,410.69
Provisions
for Taxes 141.83 579.35 116.71 503.14
Exceptional Items 272.25
Profit after Taxes (1,752.48) 1,012.76 (1,540.02) 907.55
Balance
brought forward 8,226.47 7,212.96 7,585.33 6,677.77
Prior
Period Income (0.74)
Appropriations
Profit carried
to Balance Sheet 6,473.99 8,226.47 6,045.31 7,585.33
Earnings per share (2.30) 1.55 (2.02) 1.39
OPERATIONAL PERFORMANCE
During the year the consolidated income from operations»was Rs. 8173.95
lacs as compared to income from operations of Rs. 13750.67 Lacs during
the previous financial year. The consolidated Loss after Tax was Rs.
1752.48 Lacs as compared to profit after tax of W 1012.76 Lacs during
the previous financial year.
The standalone total income from operations was Rs. 4414.89 Lacs as
compared to total income from operations of Rs. 8007.34 Lacs during e
previous financial year. The standalone Loss after tax was Rs. 1540.02
Lacs as compared to profit
aftertaxofRs.907.55Lacsduringthepreviousfinancialyear.
The financial year was a year of consolidation of the acquisitions made
during the earlier years and the Company was able to maintain the grow
momentum despite dismal export market scenario and increasingfinancial
cost.
Your Company is providing services for the back office work to overseas
customers in different verticals such as Healthcare, Litigation
Support, Title Insurance, Indexing, E-Publishing and Software
Development.
Considering the market potential for the existing services which your
Company is providing, your Company is in the process of augmenting
resources for long term grow, both in operations and marketing. Company
is also providing services for prestigious set of clients in the
government and public enterprises in sectors such as Finance and
Banking, IT & Software, Legal, Title Insurance, General Insurance,
Pharmaceutical and Logistics.
DIVIDEND
Due to the loss incurred during the year, the Board of Directors of
your Company does not recommend any dividend for the Financial
Year2012-13.
CONVERSION OF WARRANTS INTO EQUITY SHARES OFRs. 2 EACH
Your company had allotted 50,00,000 Equity shares of Rs. 2 each against
conversion of Fully Convertible warrants of Rs. 13.50 each.
The above shares on conversion were listed on Bombay Stock Exchange
Limited (''BSE'') on October 30, 2012 and National Stock Exchange of
India Limited (''NSE'') on October 12, 2012 and the same were permitted
for trading over BSE from November 6,2012 and on NSE from November
6,2012.
FIXED DEPOSITS
Total amount of deposits outstanding as on March 31, 2013 was Rs.
16,49,70,068. There were Rs. 5,95,000 claimed but not Raid deposits as on
Mach 31,2013.
AUDITORS REPORT
Qualification mentioned in the auditors'' report regarding non
compliance of Section 205(1A) of the Company''s Act, 1956. Due to the
liquidity crunch faced by the company, there has been a delay in
rJayment of dividend to some shareholders which is being paid in the
current financial year.
DIRECTORS''RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
state that:
1. Ih the preparation 6f the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relatingto material departures, if any;
2. That appropriate accounting policies have been selected and applied
consistently, and that the judgments and estimates made are reasonable
and prudent so as to give a true and fair view of the state of affairs
of your company asattheendofthefinancialyearandofthe
LossofyourCompanyforthesaidperiod;
3. That 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 your Company and for
preventing and detecting fraud and other irregularities;
4. That the annual accounts have been prepared on a going concern
basis. SUBSIDIARY COMPANIES
As on March 31,2013, the Company has the following subsidiaries:
Domestic subsidiaries
1. Tricom IT. Services Private Limited (formerly known as Mastiff
Internet Media Solutions Private Limited)
2. Tricom Infotech Solutions Limited
3. Mastiff Tech Private Limited r
4. Tricom LPO Private Limited
Foreign subsidiaries
1. Tricom Document Management, Inc., USA
2. Pacific Data Centers, Inc., USA
3. Tricom Infotech Solutions, Inc., USA
4. Tricom Infotech Solutions (Cyprus) Limited
5. Tricom Data Services Inc.; USA
6. Tricom Litigation CodingServices,lnc.USA
7. Tricom Software Services Inc.USA
8. Grand Imaging &Technology Inc.
9. Tricom Search Services Inc.
PARTICULARS IN TERMS OF SECTION 212 OF THE COMPANIES ACT
As per section 212 of the Companies Act, 1956, the Company is required
to attach the Report of Board of Directors and Auditors, Balance Sheet
and Statement of Profit and Loss (financial statements) of its
subsidiaries. In view of the general exemption granted by the Ministry
of Corporate Affairs, Central Government vide General Circular No. 2
and 3 dated February 8, 2011 and February 21, 2011 the said reports and
financial statements of the subsidiaries are not attached. However,
the financial data of the subsidiaries have been furnished under
''Details of Subsidiaries'' forming part of the Annual Report. Further,
pursuant to Accounting Standard AS-21 issued by the Institute of
Chartered Accountants of India, Consolidated Financial Statements of
the Company and its subsidiaries for the year ended March 31, 2013,
together with reports of Auditors thereon and the statement pursuant to
Section 212 of the Companies Act, 19,56, are attached. The financial
statements of subsidiaries will be available on a request made by any
member of the Company and will also be available for inspection by any
member at the registered office of the Company.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Reports on Corporate Governance and Management Discussion and Analysis,
Managing Directors & Auditors Certificate as stipulated under Clause 49
of the Listing Agreement are separately given and form part of this
Annual Report.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Paresh Pathak, Director of
the Company will retire by rotation at the forthcoming 21 Annual
General Meeting and being eligible, offers himself for re-appointment.
Mr. BaldevBoolani who retires by rotation being eligible, not offering
himself for reappointment.
Further Mr. Gaurav Bhatia and Mr. Gautam Berry, Directors have resigned
w.e.f. May 14,2012, Mr. Vijay Bhatia has resigned w.e.f. September 4,
2012 and Mr. Hiren Kothari has resigned w.e.f. October 31, 2012. Mr.
Rasik Chaturvedi has resigned w.e.f. December 10,2012.The Board places
on record its appreciation for the valuable services rendered by all
the directors duringtheirtenure.
Further Mr. Rajesh Panamburkar appointed as an additional Director of
the company on January 7, 2013 has now been regularized as a Director
of the company in ensuing Annual General Meeting.
AUDITORS
M/s Koshal and Associates, Chartered Accountants, Mumbai, retire as
auditors and have given their consent for re- appointment. The
Shareholders are requested to elect auditors for the current year and
to authorize your Directors to fix their remuneration as per item No.4
of the Notice. As required under the provisions of Section 224(1B) of
the Companies Act, 1956, your Company has obtained written confirmation
from the above auditors proposed to be re-appointed that the
re-appointment, if made, would be in conformity with in the limits
specified in the said section.
CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS&OUTGO
The information as prescribed under Section 217 (l)(e) of the Companies
Act, 1956, read with the Companies (Disclosure of Particulars in the
Report of the Board of Directors) Rules, 1998 is as follows:
A. CONSERVATION OF ENERGY
The operations of your Company are not energy-intensive. However,
adequate measures have been taken to ensure that there is optimum
utilization of energy with no wastage, as far as possible.
B. TECHNOLOGY ABSORPTION AND RESEARCH & DEVELOPMENT -
Your Company develops software to provide efficient Business Process
Outsourcing services to its customers. The systems team of your Company
does continuous research and development for upgradation of the
software, in order to provide better services to its clientele. Your
Company also develops software products to process the data required
for providing services to its customers.
Your Company takes efforts to adapt latest technology and techniques,
which helps it to be in competition.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
The foreign exchange earnings of your Company during the year under
review amounted to Rs. 3/943.07 Lacs. The foreign exchange outflow during
the year was Rs. 3,214.08 Lacs
HUMAN RESOURCES
Your Company regards human capital as the most valuable asset. At the
end of March, 2013, your Company had approx 2037 employees. *
However, none of the employees throughout the financial year were in
receipt of remuneration in excess of the limits as prescribed under
Section 217(2A) of the Companies Act, 1956 (''Act''), read with the
amended Companies (Particulars of Employees) Rules, 1975.
ACKNOWLEDGEMENTS
Your Directors take this opportunity to express their grateful
appreciation for the excellent assistance and co-operation extended by
the banks and Government agencies giving support to your company. Your
Directors also thank all the shareholders for theircontinued support
and all the employees and vendors of your company for their valuable
services during the year.
FOR AND ON BEHALF OF THE BOARD
Place : Mumbai
Date : September 3,2013 CHETAN KOTHARI
CHAIRMAN & MANAGING DIRECTOR
Mar 31, 2010
The Directors have pleasure in presenting the Eighteenth Annual Report
together with the Audited Statements of Accounts for the year ended
31st March, 2010.
Financial results (Rs. In Lacs)
particulars Consolidated Standalone
2010 2009 2010 2009
Total Income from Operations9020.69 8526.28 5472.07 4536.84
Profit
before Interest,
Depreciation and Taxes 3067.63 2730.79 2772.06 2431.87
Interest 941.59 615.60 789.37 518.84
Depreciation 480.14 531.21 368.28 319.28
Profit before Taxation 1645.90 1583.98 1614.41 1593.75
Provisions for Taxes 21.83 (21.42) 25.50 (23.57)
Exceptional Items 154.25 188.43 154.25 188.86
Prior Period Items - 2.66 - 0.43
Profit after Taxes 1469.82 1414.31 1434.66 1428.46
Balance brought forward 4213.51 2935.85 4163.96 2872.15
Appropriations 263.98 136.65 263.98 136.65
Reserves carried to Balance
Sheet 5419.35 4213.51 5434.64 4163.96
Earnings per share 2.52 2.43 2.46 2.45
operatIonaL performance
The consolidated income from operations increased to Rs.9020.60 Lacs
from Rs.8526.28 Lacs a growth of 5.80% over the previous financial
year. The consolidated profit after tax has increased to Rs 1469.83
Lacs from Rs.1414.33 Lacs over the previous financial year.
The standalone total income increased from Rs.4536.84 Lacs to
Rs.5472.07 Lacs , a growth of 21% over the previous financial year. The
standalone profit after tax has increased from 1428.46 Lacs to
Rs.1434.66 Lacs over the previous financial year. The stagnation in net
profit despite increase in total income during the year as compared to
the previous year is attributable to the exceptional loss of Rs.596.74
Lacs on account of foreign currency exchange rate fluctuations and
increase in the interest expenses.
The financial year was a year of consolidation of the acquisitions made
during the previous year and the Company was able to maintain the
growth momentum despite dismal export market scenario and increasing
financial cost.
Your Company is providing services for the back office work to overseas
customers in different verticals such as Healthcare, Litigation
Support, Title Insurance, Indexing, E-Publishing and Software
Development. Considering the market potential for the existing services
which your
Company is providing, your Company is in the process of augmenting
resources for long term growth, both in operations and marketing. Your
Company is also providing services for prestigious set of clients in
the government and public enterprises in sectors such as Finance and
Banking, IT & Software, Legal, Title Insurance, General Insurance,
Pharmaceutical and Logistics.
Your Companys and its subsidiaries infrastructure consists of about
1,00,000 sq. ft. spread across 8 locations in India and USA.
Dividend
The Directors have recommended a dividend @ 12% (i.e. Rs.0.24/-) per
equity share of face value of Rs.2/- each on paid up equity share
capital of the Company for the financial year 2009-10 The dividend on
Equity Shares, if approved by the shareholders at the 18h Annual
General Meeting, would amount to Rs. 163.98 Lacs (including dividend
tax of Rs. 23.82 Lacs) and will be paid to those members whose names
appear on the Register of Members of the Company as on 30th September,
2010.
Employees Stock option Scheme
The Company has not granted any options to subscribe to the equity
shares of the Company to any of the employees of the Company under ÃTIL
Employee Stock Option Scheme-2004Ã (TIL ESOS). There were no
outstanding options to be exercised during the year pursuant to the
previous Stock Options Scheme of the Company.
Fiesed Deposits
Total amount of deposits outstanding as on March 31, 2010 was Rs. 95
Lacs. There were no unclaimed deposits as on March 31, 2010.
Directors responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
state that:
a. In the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures, if any;
b. That appropriate accounting policies have been selected and applied
consistently, and that the judgments and estimates made are reasonable
and prudent so as to give a true and fair view of the state of affairs
of your company as at the end of the financial year and of the profit
of your Company for the said period;
c. That 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 your Company and for preventing and
detecting fraud and other irregularities;
d. That the annual accounts have been prepared on a going concern
basis.
SUBSIDISARY Companies
As on 31st March, 2010, the Company has the following subsidiaries:
Domestic subsidiaries Tricom Infotech Solutions Limited, foreign
subsidiaries
o Tricom Document Management, Inc., USA.
o Pacific Data Centers, Inc., USA.
o Tricom Infotech Solutions, Inc., USA.
o Tricom Infotech Solutions (Cyprus) Limited
o Tricom Data Services Inc.; USA.
o Tricom Litigation Coding Services, Inc. USA,
o Tricom Software Services Inc.USA.
o Tricom Data Discovery Services, Inc.USA.
particulars In terms of SectIon 212 of tHe Companies act
In terms of the approval received from the Central Government vide
their letter dated 25th August, 2010 under Section 212(8) of the
Companies Act, 1956, the Balance Sheet, Profit and Loss Account,
Reports of the Board of Directors and Auditors of the subsidiaries have
not been attached with the Balance Sheet of the Company. However, as
directed by the Central Government, the financial data of the
subsidiaries have been furnished under ÃDetails of SubsidiariesÃ
forming part of the Annual Report. Further, pursuant to Accounting
Standard AS-21 issued by the Institute of Chartered Accountants of
India, Consolidated Financial Statements of the Company and its
subsidiaries for the year ended March 31, 2010, together with reports
of Auditors thereon and the statement pursuant to Section 212 of the
Companies Act, 1956, are attached. The financial statements of
subsidiaries will be available on a request made by any member of the
Company and will also be available for inspection by any member at the
registered/head office of the Company and that of the subsidiary
concerned.
Corporate Governance and management discussion and analisis report
Reports on Corporate Governance and Management Discussion and Analysis,
Managing Directors & Auditors Certificate as stipulated under Clause
49 of the Listing Agreement are separately given and form part of this
Annual Report.
DIrectors
The Board has approved the appointment of Mr. Chetan Kothari as
Managing Director of the Company subject to shareholders approval with
effect from 4th December, 2009.
Mr. Rasik Chaturvedi, was appointed as Additional Director of the
Company w.e.f 30th January, 2010. Mr. Chaturvedi will hold office till
the date of the forthcoming Annual General Meeting and a notice has
been received from a Members proposing the candidature of Mr.
Chaturvedi for being appointed a Director of the Company.
Further, Mr. Shailesh Bathiya, Director has resigned w.e.f. 29th May,
2010. The Board places on record its appreciation for the valuable
services rendered by Mr. Shailesh Bathiya during his tenure.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Hiren Kothari, Mr.Jayant
Tanksale & Mr. Baldev Boolani, Directors of the Company will retire by
rotation at the forthcoming 18th Annual General Meeting and being
eligible, offer themselves for re-appointment.
AUDITORS
M/s. J. L. Bhatt & Co., Chartered Accountants, Mumbai, retire as
auditors and have given their consent for re- appointment. The
shareholders are requested to elect auditors for the current year and
to authorize your Directors to fix their remuneration as per item No.
04 of the Notice. As required under the provisions of Section 224 (1B)
of the Companies Act, 1956, your Company has obtained written
confirmation from the above auditors proposed to be re- appointed that
the re-appointment, if made, would be in conformity with in the limits
specified in the said Section.
Conservation of energy, research & Development, technology absorption,
foreiGn exchange earnings & outgo The information as prescribed under
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, 1998 is as follows:
a. Conservation of energy
The operations of your Company are not energy- intensive. However,
adequate measures have been taken to ensure that there is optimum
utilization of energy with no wastage , as far as possible.
B. technology absorption and research & Development
Your Company develops software to provide efficient Business Process
Outsourcing services to its customers. The systems team of your Company
does continuous research and development for upgradation of the
software, in order to provide better services to its clientele. Your
Company also develops software products to process the data required
for providing services to its customers.
Your Company takes efforts to adapt latest technology and techniques,
which helps it to be in competition.
C. foreign exchange earnings and outgo
The foreign exchange earnings of your Company during the year under
review amounted to Rs. 5472.07 Lacs. The foreign exchange outflow
during the year was Rs.1015.26 Lacs.
HUMAN RESOURCES
Your Company regards human capital as the most valuable asset. At the
end of March, 2010, your Company had 1591 employees as against 2264 as
at end of March, 2009.
The information as per Section 217(2A) of the Companies Act, 1956
("Act"), read with the Companies (Particulars of Employees) Rules, 1975
forms part of this Report. As per the provisions of Section
219(1)(b)(iv) of the Act, the Report and Accounts are being sent to the
shareholders of your Company excluding the statement of particulars of
employees under Section 217(2A) of the Act. Any shareholder interested
in obtaining a copy of the said statement may write to the Company at
the Registered Office.
ACKNOWLEDGEMENTS
Your Directors take this opportunity to express their grateful
appreciation for the excellent assistance and co- operation extended by
the banks and Government agencies giving support to your company. Your
Directors also thank all the shareholders for their continued support
and all the employees and vendors of your company for their valuable
services during the year.
For and on behalf of the Board,
PLACE: MUMBAI B.L.BooLanI
DATE : 25th August, 2010 CHAIRMAN
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