Mar 31, 2015
VCU Data Management Limited
The Directors have pleasure in presenting the 3rd Annual Report of the Company together with the Audited Statement of Accounts for the year ended 31st March, 2015.
1. FINANCIAL STATEMENTS & RESULTS:
a. Financial Results
The Company's performance during the year ended 31st March, 2015 as compared to the previous financial year, is summarized below:
Particular For the For the financial financial year ended year ended 31st March, 31st March, 2015 2014
Income 36314969 24479537
Less: Expenses 25851275 30114226
Profit/(Loss) before tax 10463695 (5634689)
Less: Provision for tax (1318968) (173170)
Income Tax of earlier years w/off 0 0
Exception Income 0 0
Exception expenditure 0 0
Profit after Tax 9144727 (5807859)
No. of Equity Shares 15500000 15500000
EPS 0.59 (0.37)
The Board of Directors are pleased to state that during the year ended on 31st March 2015, the Company has made best use of the market forces and has taken advantage of the business opportunities that has come its way. During the financial year under review, the Revenues of the company has increased to Rs. 363.15 lacs as against previous year turnover of Rs. 244.79 Lacs i.e. an increase of 48.35%
There is an increase in turnover of the Company during the financial year under review. The current year profit of the Company is Rs. 91.45 lacs. During the previous year the loss of the Company was Rs. (58.08) lacs.
There was no change in nature of the business of the Company, during the year under review.
Presently, there is no subsidiary of the Company.
d. CONSOLIDATED FINANCIAL STATEMENTS
Since there is no subsidiary of the Company at present, hence no consolidated financial Statements have been prepared.
In order to conserve future resources, your Directors have not recommended any dividend for the financial year under review.
f. REVISION OF FINANCIAL STATEMENT:
There was no revision of the financial statements for the year under review.
The Company has not accepted or renewed any amount falling within the purview of provisions of Section 73 of the Companies Act 2013 ("the Act") read with the Companies (Acceptance of Deposit) Rules, 2014 during the year under review. Hence, the requirement for furnishing of details of deposits which are not in compliance with the Chapter V of the Act is not applicable.
h. DISCLOSURES UNDER SECTION 134(3)(l) OF THE COMPANIES ACT, 2013:
Except as disclosed elsewhere in this report, no material changes and commitments which could affect the Company's financial position have occurred between the end of the financial year of the Company and date of this report.
i. DISCLOSURE OF INTERNAL FINANCIAL CON- TROLS
The Internal Financial Controls with reference to financial statements as designed and implemented by the Company are adequate. During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.
j. DISCLOSURE OF ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNAL
No orders have been passed by any Regulator or Court or Tribunal which can have impact on the going concern status and the Company's operations in future.
k. PARTICULAR OF CONTRACTS OR ARRANGEMENT WITH RELATED PARTIES
The details of transactions/contracts/arrangements entered by the Company with related party(ies) as defined under the provisions of Section 2(76) of the Companies Act, 2013, during the financial year under review, are furnished in Annexure II and forms part of this Report.
l. PARTICULARS OF LOANS, GUARANTEES, INVESTMENTS AND SECURITIES:
Full particulars of loans, guarantees, investments and securities provided during the financial year under review along with the purposes for which such loans, guarantees and securities are proposed to be utilized by the recipients thereof, has been furnished in Annexure III which forms part of this report.
m. DISCLOSURE UNDER SECTION 43(a)(ii) OF THE COMPANIES ACT, 2013:
The Company has not issued any shares with differential rights and hence no information as per provisions of Section 43(a)(ii) of the Act read with Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.
n. DISCLOSURE UNDER SECTION 54(1)(d) OF THE COMPANIES ACT, 2013:
The Company has not issued any sweat equity shares during the year under review and hence no information as per provisions of Section 54(1)(d) of the Act read with Rule 8(13) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.
o. DISCLOSURE UNDER SECTION 62(1)(b) OF THE COMPANIES ACT, 2013:
The Company has not issued any equity shares under Employees Stock Option Scheme during the year under review and hence no information as per provisions of Section 62(1)(b) of the Act read with Rule 12(9) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.
p. DISCLOSURE UNDER SECTION 67(3) OF THE COMPANIES ACT, 2013:
During the year under review, there were no instances of non-exercising of voting rights in respect of shares purchased directly by employees under a scheme pursuant to Section 67(3) of the Act read with Rule 16(4) of Companies (Share Capital and Debentures) Rules, 2014 is furnished.
q. INITIAL PUBLIC OFFERING
During the year 2013 -14, the Company came out with an initial public offering of 75,00,000 Equity shares of the face value of Rs. 10/- each for cash at a price of Rs. 25/- per share (including a share premium of Rs. 15/- per Equity share) aggregating to Rs. 1875 Lacs.
The public issue opened for subscription on 4th October, 2013 and closed on 8th October, 2013. The basis of allotment was finalized in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited on 18th October, 2013. The Company's shares got listed on the SME platform of BSE Limited w.e.f. 23rd October, 2013.
r. REPORT ON UTILIZATION OF IPO FUNDS DURING THE YEAR
Particulars Amount (In Rs.) 31/03/2015
Funds raised from Public Issue (including share premium) 1875.00
Less - Utilization of Funds -
Towards purchase of Fixed Assets 13.13
Working Capital 1,059.22
IPO Expenses 38.40
Inter Corporate Deposits given (Temporary) 764.25
2.MATTERS RELATED TO DIRECTORS AND KEY MANAGERIAL PERSONNEL
a) BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL
Mrs. Renuka Shripal Bafna (DIN: 07007731) and Mr. Shripal Kantilal Bafna (DIN: 06489822) were appointed as Directors of the Company on 3rd November, 2014 and 23rd April, 2015.
Mr.Shripal Bafna was appointed as Key Managerial Person designated as Chief Financial Officer of the Company.
Mr. Sanjay Vardhan resigned as Director of the Company with effect from 23rd April, 2015 due to personal reasons.
Mr. Hardik Sanghvi has resigned as Managing Director w.e.f 12th August, 2015 & appointed as Director w.e.f. 17th August, 2015.
In accordance with the provisions of the Act, none of the Independent Directors is liable to retire by rotation.
As per the provisions of Section 152 of the Companies Act, 2013, Mrs. Renuka Bafna retire by rotation at the ensuing Annual General Meeting and being eligible, offer herself for re-appointment. Your Directors recommend their approval.
b. DECLARATIONS BY INDEPENDENT DIRECTORS:
The Company has received declarations form all the Independent Directors under Section 149(6) of the Companies Act, 2013 confirming their independence vis-Ã -vis the Company.
3. DISCLOSURES RELATED TO BOARD, COMMITTEES AND POLICIES
a. BOARD MEETINGS:
The Board of Directors met four times during the financial year ended 31st March 2015 in accordance with the provisions of the Companies Act, 2013 and rules made thereunder.
The dates on which the Board of Directors met during the financial year under review are 29th May, 2014, 1st September, 2014, 14th November, 2014 and 8th January, 2015.
b. DIRECTOR'S RESPONSIBILITY STATEMENT:
In terms of Section 134(5) of the Companies Act, 2013, in relation to the audited financial statements of the Company for the year ended 31st March, 2015, the Board of Directors hereby confirms that:
a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
b. such accounting policies have been selected and applied consistently and the Directors 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/loss of the Company for that year;
c. proper and sufficient care was taken 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 annual accounts of the Company have been prepared on a going concern basis;
e. internal financial controls have been laid down to be followed by the Company and that such internal financial controls are adequate and were operating effectively;
f. proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively;
c. NOMINATION AND REMUNERATION COMMITTEE:
The Nomination and Remuneration Committee of Directors as constituted by the Board of Directors of the Company in accordance with the requirements of Section 178 of the Act.
The composition of the committee is as under:
1. Mr. Dhruvaprakash Shetty, Chairman & Independent Director
2. Mr. Surendrakumar Jaiswal, Independent Director and
3. Mr. Shripal Bafna, Member & CFO
The Board has in accordance with the provisions of sub-section (3) of Section 178 of the Companies Act, 2013, formulated the policy setting out the criteria for determining qualifications, positive attributes, independence of a Director and policy relating to remuneration for Directors, Key Managerial Personnel and other employees.
Major criteria defined in the policy framed for appointment of and payment of remuneration to the Directors of the Company, are as under:
d. AUDIT COMMITTEE:
The Audit Committee of Directors was constituted pursuant to the provisions of Section 177 of the Companies Act, 2013. The composition of the Audit Committee is in conformity with the provisions of the said section. The Audit Committee comprises of:
1. Mr. Dhruvaprakash Shetty, Chairman & Independent Director
2. Mr. Surendrakumar Jaiswal, Independent Director and
3. Mr. Shripal Bafna, Member & CFO
The scope and terms of reference of the Audit Committee have been amended in accordance with the Act and the Listing Agreement entered into with the Stock Exchanges.
During the year under review, the Board of Directors of the Company had accepted all the recommendations of the Committee.
e. VIGIL MECHANISM POLICY (WHISTLE BLOWER POLICY) FOR THE DIRECTORS AND EMPLOY- EES
The Board of Directors of the Company has, pursuant to the provisions of Section 178(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014, framed "Vigil Mechanism Policy" for Directors and employees of the Company to provide a mechanism which ensures adequate safeguards to employees and Directors from any victimization on raising of concerns of any violations of legal or regulatory requirements, incorrect or misrepresentation of any, financial statements and reports, etc.
The employees of the Company have the right/option to report their concern/grievance to the Chairman of the Audit Committee.
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations.
f. RISK MANAGEMENT POLICY:
The Board of Directors of the Company has designed Risk Management Policy and Guidelines to avoid events, situations or circumstances which may lead to negative consequences on the Company's businesses, and define a structured approach to manage uncertainty and to make use of these in their decision making pertaining to all business divisions and corporate functions. Key business risks and their mitigation are considered in the annual/ strategic business plans and in periodic management reviews.
g. CODE OF CONDUCT
Your Company has laid down a Code of Conduct ("Code") for all the Board Members and Senior Management Personnel of the Company. The Code is available on the website of the Company i.e., www.vcupack.com. All Directors and Senior Management Personnel of the Company have affirmed compliance with the Company's Code of Conduct for the financial year ended March 31, 2015.
h. CORPORATE SOCIAL RESPONSIBILITY POLICY:
As per the provisions of Section 135 of the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014, the Corporate Social Responsibility (CSR) Committee is not required to be formed for the Company.
i. ANNUAL EVALUATION OF DIRECTORS, COMMITTEE AND BOARD:
A statement indicating the manner for evaluation of performance of the Board and its committee, individual Directors is attached with the Board Report as Annexure IX and forms part of this Report.
j. INTERNAL CONTROL SYSTEMS:
Adequate internal control systems commensurate with the nature of the Company's business and size and complexity of its operations are in place has been operating satisfactorily. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws and regulations and that all assets and resources are acquired economically, used efficiently and adequately protected.
k. DISCLOSURE UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 AND OTHER DISCLOSURES AS PER RULE 5 OF COMPANIES (APPOINTMENT & REMUNERATION) RULES, 2014:
The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year under review has been marked as Annexure X.
4. AUDITORS AND REPORTS
The matters related to Auditors and their Reports are as under:
a. OBSERVATIONS OF STATUTORY AUDITORS ON ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2015:
The observations made by the Statutory Auditors in their report for the financial year ended 31st March 2015 read with the explanatory notes therein are self-explanatory and therefore, do not call for any further explanation or comments from the Board under Section 134(3) of the Companies Act, 2013.
b. SECRETARIAL AUDIT REPORT FOR THE YEAR ENDED 31ST MARCH 2015:
Provisions of Section 204 read with Section 134(3) of the Companies Act, 2013, mandates to obtain Secretarial Audit Report from Practicing Company Secretary. VKM & Associates, Company Secretaries had been appointed to issue Secretarial Audit Report for the financial year 2014-15.
Secretarial Audit Report issued by VKM & Associates, Company Secretaries in Form MR-3 for the financial year 2014-15 forms part to this report. The said report does not contain any observation or qualification requiring explanation or comments from the Board under Section 134(3) of the Companies Act, 2013.
c. INTERNAL AUDITORS & INTERNAL AUDIT RE- PORT
M/s. S. D. Motta & Associates, Chartered Accountants performs the duties of internal auditors of the company and their report is reviewed by the audit committee from time to time.
d. RATIFICATION OF APPOINTMENT OF AUDITORS:
Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, M/s. Kriplani Milani & Co., Chartered Accountants, the Statutory Auditors of the Company have been appointed for a term of five years. However, their appointment as Statutory Auditors of the Company shall be required to be ratified by the Members at the ensuing Annual General Meeting. The Company has received a confirmation from the said Auditors that they are not disqualified to act as the Auditors and are eligible to hold the office as Auditors of the Company.
Necessary resolution for ratification of appointment of the said Auditors is included in the Notice of AGM for seeking approval of members.
5. OBLIGATION OF COMPANY UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
In order to prevent sexual harassment of women at work place a new act The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 has been notified on 9th December, 2013. Under the said Act every company is required to set up an Internal Complaints Committee to look into Complaints relating to sexual harassment at work place of any women employee.
Company has adopted a policy for prevention of Sexual Harassment of Women at workplace and has set up Committee for implementation of said policy. During the year Company has not received any com- plaint of Harassment.
6. OTHER DISCLOSURES
Other disclosures as per provisions of Section 134 of the Act read with Companies (Accounts) Rules, 2014 are furnished as under:
a. EXTRACT OF ANNUAL RETURN:
Pursuant to the provisions of Section 134(3)(a) of the Companies Act, 2013, Extract of the Annual Return for the financial year ended 31st March 2015 made under the provisions of Section 92(3) of the Act is attached as Annexure XI which forms part of this Report.
b. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 in respect of conservation of energy and technology absorption have not been furnished considering the nature of activities undertaken by the Company during the year under review. Foreign exchange earnings and outgo etc. are furnished in Annexure XII which forms part of this Report.
c. RELATED PARTY TRANSACTION:
The Company has entered into material significant transactions with its related parties. The details of transactions with the Company and related parties are given for information under notes to Accounts.
d. PARTICULARS OF EMPLOYEES:
Pursuant to the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, statement of particulars of employees is annexed as Annexure IV.
e. CORPORATE GOVERNANCE CERTIFICATE
The Compliance certificate from the auditors or practicing company secretaries regarding compliance of conditions of corporate governance as stipulated in Clause 52 of the SME Listing agreement shall be annexed with the report.
f. LISTING FEES
The Company confirms that it has paid the annual listing fees for the year 2015-16 to the Bombay Stock Exchange
7. ACKNOWLEDGEMENTS AND APPRECIATION:
Your Directors take this opportunity to thank the customers, shareholders, suppliers, bankers, business partners/associates, financial institutions and Central and State Governments for their consistent support and encouragement to the Company.
By Order of the Board
For VCU Data Management Limited
Mar 31, 2014
The Directors have great pleasure in presenting the 2nd Annual Report together with the Audited Balance Sheet as at 31st March, 2014 and Profit & Loss Account for the year ended on that date.
FINANCIAL RESULTS (In Rs.)
Particulars Year Ending Year Ending 31st March, 31st March, 2014 2013
Sales 12672584 0
Total Income 11806953 0
Operating Expenses 21790688 5725
EBIDTA (3884577) (5725)
Depreciation 1737649 0
Interests 0 0
Taxes 173170 0
Net Profit After Tax (5807859) (5725)
No. of Equity Shares 15500000 10100
EPS 0.37 0.37
The Board of Directors are pleased to state that during the year ended on 31st March 2014, the Company has made best use of the market forces and has taken advantage of the business opportunities that has come its way. During the financial year under review, the Revenues of the company has increased to Rs. 244.80 Lacs as against previous year turnover of Rs. Nil Lacs i.e. an increase of 100.00 %.
The current year loss of the Company is Rs. (58.08) lacs. During the previous year the loss of the Company was Rs. (0.06) lacs. There is an increase in the operating cost, financial expenses and other administrative expenses of the Company during the year.
The Directors have decided not to recommend the dividend for the current year as there are inadequate profits for declaring dividend.
INCREASE IN AUTHORIZED SHARE CAPITAL
During the year under review, the authorized share capital of the Company was increased from Rs. 25 Lacs divided into 2,50,000 equity shares of Rs. 10/ - each to Rs. 16 Crores divided into 1,60,00,000 equity shares of Rs. 10/ each.
LISTING ON SME PLATFORM
Your Directors are pleased to inform you that the Company''s securities have been listed on the SME Platform of BSE Limited w.e.f. October 23, 2013 and the Company has paid listing fee to the Ex- change for the year 2013-14.
INITIAL PUBLIC OFFERING
During the year the Company came out with an initial public offering of 75,00,000 Equity shares of the face value of Rs. 10/- each for cash at a price of Rs. 25/- per share (including a share premium of Rs. 15/- per Equity share) aggregating to Rs. 1875 Lacs.
The public issue opened for subscription on 4th October, 2013 and closed on 8th October, 2013. The basis of allotment was finalized in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited on 18th October, 2013. The Company''s shares got listed on the SME platform of BSE Limited w.e.f. 23rd October, 2013.
REPORT ON UTILIZATION OF IPO FUNDS DURING THE YEAR
Nature of Transaction Amt. (Rs.) Amt. (Rs.)
Working Capital -
Purchase Import 7,461,162
Trade Advance 95,344,830
Off. Expenses 1,920,841 104,726,833
Assets Purchased 1,047,154
Royalty to Vmukti
Deposit to Vmukti
IPO Expenses 3,839,773
Inter Corporate Deposits
(ICD''s) & other Loans 76,425,000
DEMATERIALIZATION OF SHARES
In the year currently under review, the Company''s equity shares have been dematerialized to be traded in electronic form in the Depository systems operated by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), Mumbai.
Further, the Company has appointed M/s Sharepro Services (I) Private Limited as the Registrar to the Company.
Presently, there is no subsidiary of the Company.
CONSOLIDATED FINANCIAL STATEMENTS
Since there is no subsidiary of the Company at present, hence no consolidated financial statements have been prepared
During the year under review, the Company has not accepted or renewed any fixed deposits from the public.
PARTICULARS OF EMPLOYEES
Your Directors'' would like to place on record their deep appreciation of all employees for dedicated and sincere services rendered by them.
The Statement of employees required under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Amendment Rules, 1975 is not annexed, as there is no employee drawing salary exceeding the present limits as provided under the Act i.e. drawing monthly remuneration exceeding Five Lakh Rupees and annual remuneration exceeding Sixty Lakh Rupees.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EX-CHANGE EARNING AND OUTGO
The provisions of Section 217 (1) (e) of the Companies Act, 1956 and the Companies (Disclosure of Particulars in the report of Board of Directors'') Rules, 1988 regarding conservation of energy and technol- ogy absorption are not applicable. Therefore the information relating to conservation of energy or technology absorption etc is not given. The foreign ex-change earnings and outgo during the year are as follows:
AUDITORS & AUDITORS'' REPORT
M/s S. D. MOTTA & ASSOCIATES Statutory Auditors of the Company, retire at the conclusion of the ensuing Annual General Meeting of the Company. In place of them, M/s. KRIPLANI MILANI & CO., Chartered Accountants, Mumbai (Firm Registration No. 130461W) be and are hereby appointed as Statutory Auditors of the Company for a term of five consecutive years. The Board of Directors and the Audit Committee recommend their appointment for the ensuing year
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement of Section 217 (2AA) of the Companies Act, 1956, with respect to Directors'' Responsibility Statement, the Directors hereby confirm that:-
(i) In the preparation of the annual accounts for the year ended March 31, 2014, the applicable Accounting Standards have been followed and proper explanations were provided for material departures.
(ii) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are rea- sonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit and loss of the Company for that period.
(iii) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safe guarding the assets of the Company and for preventing and detecting fraud and other ir- regularities;
(iv) The Directors had prepared the annual accounts for the financial year ended March 31, 2014, on a going concern basis.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
As required under Clause 52 of the Listing Agreement to be entered into with Bombay Stock Ex-change Ltd., Management Discussion and Analysis Report is presented in the separate section and forms an integral part of the Directors Report.
The Company''s Equity Shares got listed on October 23, 2013 on SME platform of BSE Ltd. (BSE). A detailed report on the Corporate Governance in compliance with Clause 52 of the Listing Agreement is presented as a part of the Annual Report. A Certificate from the Auditor on the compliance with Corporate Governance requirements by your Company is attached to the Report on Corporate Governance.
Your Directors would like to express their sincere appreciation of the co-operation and assistance received from Shareholders, Bankers, regulatory bodies and other business constituents during the year under review.
Your Directors also wish to place on record their deep sense of appreciation for the commitment displayed by all executives, officers and staff, resulting in successful performance of the Company during the year.
By Order of the Board For VCU Data Management Limited
Sanjay Vardhan Director DIN: 000632772
Place: Mumbai Date: 01.09.2014