Mar 31, 2018
To
The Members,
Compucom Software Limited
The Company have immense pleasure in presenting their 24th Annual Report on the business and operations of the Company together with Audited Financial Statements for the financial year ended on March 31, 2018.
Financial Results:
The highlights of the financial results for the financial year 2017-18 are as follows: (Rs. in Lakhs)
Particulars |
31.03.2018 |
31.03.2017 |
Total Income |
4948 |
5414 |
Total Expenses |
3219 |
3526 |
Operating Profit (PBDIT) |
1729 |
1888 |
Finance Cost |
100 |
210 |
Depreciation |
1202 |
1469 |
Profit before Tax |
427 |
209 |
Other Comprehensive Income |
12 |
12 |
Exceptional Items |
- |
- |
Provision for Income Tax including Deferred Tax |
131 |
35 |
Net Profit after Tax |
308 |
186 |
Appropriation |
||
Dividend |
79 |
79 |
Dividend Tax |
16 |
16 |
Transfer to General Reserve |
- |
- |
Total Appropriations |
95 |
95 |
Earnings per Share: Basic and Diluted (in Rs.) Considering Extraordinary Items Without Considering Extraordinary Items |
0.39 0.39 |
0.24 0.24 |
Results of Operations:
Total income earned during the year amounted to Rs. 4948 lakhs compared to that of Rs. 5,414 lakhs in the previous financial year. This reflects decrease of Rs. 4,66 lakhs i.e. 8.6% this is due to lower work order received in software segment and completion of one project under learning solutions. The profit before tax has increased from Rs. 209 lakhs in the previous financial year to Rs 427 lakhs in the current financial year.
The Operating Profit during the period under review is Rs. 1729 lakhs as compared to Rs. 1888 lakhs in the previous financial year and the total operating expenses during the year amounted to Rs. 3219 lakhs as compared to Rs. 3526 lakhs in the previous Financial Year.
As required by IND AS- 110, Consolidated Financial Statements are provided in the later section of the Annual Report. Business Operations:
(1) Software & E-Governance Services:
During the year, the Company focused on the areas where higher margin was available with low risk factors. The revenue generated from this segment during the current Financial Year 2017-18 was Rs. 401 Lakhs as against Rs 591 Lakhs during the previous financial year. This reflects decrease of 32.15% i.e. Rs. 190 Lakhs. Profit earned from this segment amount to Rs.99 Lakhs as compared to that of Rs. 293 Lakhs during the previous Financial Year, which has resulted in decrease of 66.21% i.e. Rs. 194 Lakhs. The profit is decreased due to completion of companies project iCARE Latest Release- Samsung and Tekmark and no any new project received.
(2) Learning Solutions:
Learning Solution Segment mainly comprises ICT Phase III, ICT Bihar, Computer Aided Training Programme and other projects. The Company has covered total 8,223 Govt. Schools and over 2 million learners under its educational umbrella so far. These PPP Projects could not have been a success without the cooperation extended by Employees, Business Associates, Vendors and Government officials. Most of these projects are in form of IT Infrastructure development at school levels.
The Company has been running successfully, ICT Project Phase III worth Rs. 158.50 Crore, for 1,373 Govt. Schools of Rajasthan. It has been commissioned in the month of Feb. 2014 and will be a five (5) year project on BOOT model.
The Company has massive plans for capturing the advantage of Indian education expenditure planned through Govt. of India promoted PPP models across India fuelled by Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and skill development initiatives. Company is also planning to leverage in-house software development and satellite based technology skills for expansion in school and coaching Business.
During the fourth quarter company has been awarded by 3 new projects:
1) 303 School Project: For supply of installation of Computer system, printers, UPS, LED TV, Projector etc. in 303 Govt. Secondary and Senior Secondary School (Phase-V) with 5 years on sight comprehensive warranty worth Rs. 11.87Crore(Approx).
2) 1172 School Project: For supply and installation of Computer Systems, UPS and Networking & Electrification etc. in 1172 Government Secondary/Senior Secondary Schools with five (5) year On-Site Comprehensive Warranty worth Rs. 32.99 Crores (Approx.).
3) ICT Phase IV: For providing education as per Govt. syllabus and supply of related items in 525 Government Schools for integrated scheme for Computer Education (CE) and Information & Communication Technology (ICT) @ Schools (Phase-IV) as BOOT Model worth Rs. 37.48 Crores (Approx.) for a period of Five (5) Years.
During the year the revenue generated from this segment was Rs. 4028 Lakhs as against Rs 4,427 Lakhs during the previous financial year. This reflects decrease of 9.01% i.e. Rs. 399 Lakhs. The revenue is decreased due to completion of ICT Bihar Project. The project period is 5 years from the date of implementation and approximate valuation is Rs. 46.72 Crores, which was completed and new project run from next year.
(3) Wind Power Generation:
The Company has installed two wind power generation plants in Jaisalmer (Rajasthan) with capacity of 0.6 MW each, two at Sikar (Rajasthan) with capacity of 0.6 MW each & One Plant at Krishna (Andhra Pradesh) with capacity of 0.8 MW. Total wind power generation capacity is 3.2 MW. The operation and maintenance of all these wind power project has been out-sourced to M/s Wind World India Ltd. (previously known as Enercon India Limited).
During the year revenue generated from this segment amounted to Rs. 141 as compared to Rs. 171 Lakhs during the previous year ended on March 31, 2017 which shows a decrease in the revenue by 17.54% i.e. Rs. 30 Lakhs due to lower generation of units. Profit earned from this segment amount to Rs. 26 Lakhs as compared to that of Rs. 43 Lakhs during the previous Financial Year, which has resulted a decrease of 39.53% i.e. Rs. 17 Lakhs due to variation in generation of unit which is depend on weather.
(4) Treasury Activities:
During the year revenue generated from other sources amounted to Rs. 378 as compared to Rs. 226 Lakhs during the previous year ended on March 31, 2017 which shows an increase in the revenue by 67.26% i.e. Rs. 152 Lakhs.
The following chart depicts revenue generated from operation for the year ended March 31, 2018: -
Details of Subsidiary Companies
The Company has two subsidiary Companies:
Pursuant to provisions of section 129(3) of the Companies Act, 2013 a statement containing salient features of the financial statements of the Companyâs subsidiaries in Form AOC-1 is provided in the later section of the Annual Report after Financial Statement of the Company as Annexure IX.
During the year, operations of following two subsidiaries were reviewed.
(A) ITneer, Inc. is a wholly owned subsidiary Company of Compucom Software Limited. It has earned total revenue of US$ 8,69,716 during the financial year 2017-18 as compared to US $ 12,38,528 in the previous financial year. This reflects a decrease of approx. 29.78% i.e. US $ 3,68,812. The Company has earned profit of US$ 21,305 as compared to the Profit of US $ 51,947 in the previous financial year. The Company is operating out of its own premises in Atlanta, USA. It is headed by Promoter Director Mr. Ajay Kumar Surana. The copy of the audited accounts, together with the independent auditorâs report, is provided in a separate Section of this Annual Report.
(B) CSL Infomedia Pvt. Ltd. is subsidiary Company of Compucom Software Limited. It has earned total revenue of Rs. 761 Lakhs during the financial year 2017-18 as compared to Rs. 586 Lakhs in the previous financial year which shows an increase of 29.86% i.e. Rs. 175 Lakhs. The Company has earned Profit of Rs. 236 Lakhs as compared to Rs. 71 Lakhs in the previous financial year which shows an increase of 232.39% i.e. Rs. 165 Lakhs. The Company is mainly operating in multimedia, Content Development, Education TV Segment and Satellite Education. The copy of the audited accounts together with the independent Auditors Report is provided in a separate section of this Annual Report. The company has two TV Channel one âJAN TVâ, Satellite TV channel and âJAN TV PLUSâ (an Infotainment Channel). Currently it is available on various cable networks across India and also available live on jantv.in
Dividend
Keeping the continuous track record of rewarding its shareholders, your Directors are pleased to recommend a dividend @ 5% i.e. Rs. 0.10/- per Equity share of Rs. 2/- each for the Financial Year 2017-18, subject to approval of the shareholders at the ensuing Annual General Meeting.
Dividend declared & paid during last 15 (Fifteen) years:
Financial Year |
Dividend Rate |
2002-03 |
25% |
2003-04 |
25% |
2004-05 |
25% |
2005-06 |
30% |
2006-07 |
30% |
2007-08 |
15% |
2008-09 |
10% |
2009-10 |
10% |
2010-11 |
15% |
2011-12 |
15% |
2012-13 |
20% |
2013-14 |
20% |
2014-15 |
5% |
2015-16 |
5% |
2016-17 |
5% |
Book Value per Share
Details of Book value during the last 18 (Eighteen) years are as under:
Financial Year |
No of Shares |
Face Value per share |
Book Value Per share (in Rs.) |
2000-01 |
5025000 |
10 |
55.74 |
2001-02 |
5025000 |
10 |
65.6 |
2002-03 |
5025000 |
10 |
69 |
2003-04 |
5025000 |
10 |
79.9 |
2004-05 |
5025000 |
10 |
90.79 |
2005-06 |
5025000 |
10 |
98.73 |
2006-07 |
5025000 |
10 |
105.89 |
2007-08** |
25,125,000** |
2 (10) |
22.79 |
2008-09*** |
502,50,000*** |
2 |
13.1 |
2009-10 |
502,50,000 |
2 |
14.47 |
2010-11**** |
7,91,25,188**** |
2 |
12.26 |
2011-12 |
7,91,25,188 |
2 |
12.97 |
2012-13 |
7,91,25,188 |
2 |
13.92 |
2013-14 |
79125188 |
2 |
14.74 |
2014-15 |
79125188 |
2 |
14.94 |
2015-16 |
79125188 |
2 |
15.7 |
2016-17 |
79125188 |
2 |
15.81 |
2017-18 |
79125188 |
2 |
15.42 |
**Equity share of face value of Rs.10 each subdivided into equity share of Face value of Rs. 2/- each. Record date for the same was October 15, 2007.
*** The Company issued bonus shares in the ratio of 1:1. Record date for the same was December 26, 2008.
****The Company issued bonus shares in the ratio of 1:2. Record date for the same was October 20, 2010.
**** Preferential issue of 37.50 Lacs Equity shares allotted on November 4, 2010.
Share Capital
During the year, there has been no change in the authorized and Paid up share capital of the Company. The Company have 20,00,00,000/- authorized Share Capital divided in 10,00,00,000 equity shares of RS. 2/- each. The Company has 15,82,50,376/ - paid up share capital.
Fixed Deposits/Deposits from Public
During the financial year 2017-18, your Company has not accepted any fixed deposits nor renewed any Fixed deposit, falling within the definition of Section 73, 74 and 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.
Listing of Shares
Your Companyâs shares are listed at National Stock Exchange of India Limited (NSE), BSE Ltd (BSE) and Calcutta Stock Exchange Limited (CSE) and the listing fee for the financial year 2018-19 has been duly paid. The Companyâs Symbol at NSE is COMPUSOFT and the Scrip Code of the Company at BSE is 532339 and at CSE is 13335.
Number of Meetings of Board of Directors
Four (4) meetings of Board were held during this financial year. The dates on which the Board Meetings were held are as follows:
May 29, 2017; August 30, 2017; December 12, 2017; February 8, 2018.
The intervening gap between any two meetings was within the period prescribed by the Companies Act, 2013 and SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 and SS-1 issued by The Institute of Company Secretaries of India. The Details of the Board Meetings and attendance at such meeting are provided in the Corporate Governance Report attached with the Annual Report as Annexure VIII.
Nomination and Remuneration Policy
The current policy is to have an appropriate mix of executive and independent directors to maintain the independence of the Board, and separate its functions of governance and management.
The policy of the Company on directorâs appointment and remuneration, including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under Sub-section (3) of Section 178 of the Companies Act, 2013, adopted by the Board. We affirm that the remuneration paid to the directors is as per the terms laid out in the nomination and remuneration policy of the Company. The Policy is also available on the weblink at compucom.co.in/ Policies/NOMINATION%20AND%20REMUNERATION%20POLICY.pdf
Details of appointment of Directors and KMPs and their resignation during the year
Reappointment
During the Year 2017-18 Mrs Trishla Rampuria was re-appointed as she was liable to retire by rotation in the 23rd Annual General Meeting held on 27th September, 2017.
Dr. Satish Kumar was appointed as an Additional Director on the Board of the Company w.e.f. 25th May, 2018, and subject to the approval of the members at the ensuing Annual General Meeting and his appointment is being regularized as Independent and Non-Executive Director on the terms and conditions as mentioned in the resolution of Notice.
The brief resume and other details of the Director seeking re-appointment in the forthcoming Annual General Meeting, in Pursuance of Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed to the Annual General Meeting notice.
Mr. Shubh Karan Surana is liable to retire by rotation in the ensuing Annual General Meeting and he doesnât want to reappoint.
Retirement
Dr. Anjila Saxena, Independent Director was retired w.e.f. 2nd August, 2018. She completed two term as Independent Director in the Company.
Vigil Mechanism
The Company Promotes ethical behavior in all its business activities and has put in place a mechanism for reporting illegal or unethical behavior. The Company has a vigil mechanism policy under which the employees, directors and other stakeholders are free to report matters such as generic grievances, corruption, misconduct, fraud, misappropriation of assets and noncompliance of code of conduct to the Company. The policy safeguards the whistle blowers to report concerns or grievances and also provides a direct access to the chairman of the audit committee. During the year under review none of the personnel has been denied access to the Audit Committee and during this Financial Year Company has not received any query regarding thereof.
The Vigil Mechanism Policy is available on the weblink compucom.co.in/Policies/VIGIL%20MACHANISM%20POLICY.pdf
Disclosure under the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013
Your Company has always believed in providing a safe and harassment free workplace for every individual working in its premises through various interventions and practices. The Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.
The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.
The following is a summary of sexual harassment complaints received and disposed off during the year 2017-18
- Number of complaints received: NIL
- Number of complaints disposed off: NIL
Declaration of independence by directors
The Independent Directors of the Company, viz. Mr. Rajendra Prasad Udawat, Dr. Anjila Saxena, Mr. Ghisa Lal Chaudhary, Dr. Satish Kumar have affirmed that they continue to meet all the requirements of independence specified under sub-section (6) of section 149 of Companies Act, 2013 and the Regulation 16(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Board Committees
Currently, the Board of the Company has four sub-committees namely Audit Committee, Nomination and Remuneration Committee, Stakeholderâs Relationship Committee and Corporate Social Responsibility Committee. The Composition and other Details of the Committee are provided in the Corporate Governance Report attached with the Annual report as Annexure VIII.
Corporate Social Responsibility
During the year, the Company spent 19.12 Lakhs (around 2.82% of the average net profits of last three financial years) on CSR activities. The annual report on CSR activities is annexed herewith marked as Annexure I.
Formal Annual Evaluation
As per the provisions of Schedule IV of the Companies Act, 2013 and SEBI (Listing obligations and Disclosure Requirements) Regulations 2015, the formal annual evaluations need to be made by the Board of its own performance, that of its committees and individual directors..
The evaluation of all the Directors, committees and Board as a whole was conducted based on the criteria and framework adopted by the Board. The evaluation process has been explained in the Corporate Governance report section in this Annual Report as Annexure VIII. The Board approved the evaluation results as collated by the Nomination and Remuneration Committee.
Familiarization Programme and Training to Independent Director
Every new Independent Director of the Board attends an orientation program. To familiarize the new inductees with the strategy, operations and functions of our Company, the executive directors / senior managerial personnel make presentations to the inductees about the companyâs strategy, operations, product and service offerings, markets, software delivery, organization structure, finance, human resources, technology, quality, facility and risk management.
The Company has a program to help its directors improve their expertise in governance held by well -known business schools in any part of the world.
Further, at the time of appointment of an independent director, the Company issues a formal letter of appointment outlining his/her role, function, duties and responsibilities as a director.
The details of familiarization programs given to the Independent Directors during the Financial Year 2017-18 are as follows:
Name |
Industry/Market Technology trends |
Visit and introduction to Solar Plant Project |
Visit and Familiarization to CIITM |
Completion and Future outlook |
Total hours |
Mr. R.P. Udawat |
1 |
1.5 |
1.5 |
1 |
5 |
Dr. AnjilaSaxena |
1 |
1.5 |
1 |
0.5 |
4 |
Mr. G.L. Chaudhary |
1 |
1.5 |
0.5 |
1 |
4 |
Dr. Satish Kumar |
1 |
1.5 |
1.5 |
1 |
5 |
Internal financial control systems
The Company has put in place an adequate system of internal control commensurate with its size and nature of business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies. The Audit Committee reviews adherence to internal financial control systems and internal audit reports. During the year, such controls were tested and no reportable material weakness in the design or operation were observed.
Loans, guarantees and investments in securities by the company
During the Financial Year Company has not give any Loan, Provide any Guarantee and Security. Particulars of the Investments made are provided in the standalone financial statement Please refer Note 6 to the standalone financial statement.
Transfer to Reserves
Your directors do not propose to transfer any amount to the general reserves of the company for the financial year ended on March 31, 2018.
Statutory Auditors and Auditorsâ Report
The Auditors Report to the shareholders for the Financial Year 2017-18 given by the M/s Sapra & Co. does not contain any observation and qualification.
No frauds have been reported by the Auditors under Section 143(12) of the Companies Act, 2013 requiring disclosure in the Boardâs Report.
M/s Sapra & Co., Chartered Accountants (FRN:003208C), appointed as Auditor of the Company in the 23rd Annual General Meeting for five Consecutive years i.e. till the 28th Annual General Meeting at such remuneration plus GST as may be mutually agreed between the Board of Directors and the Auditors.
Requirement of ratification of Statutory Auditor at every General Meting as per section 139(1) of the Companies Act 2013 which was ommited by the Companies (Amendment) Act 2017 w.e.f. 5th May 2018 as per notification S.No. 1833(E)
Secretarial Audit Report
As per section 204 of Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every Listed Company is required to appoint Secretarial Auditor to carry out Secretarial Audit of the Company.
In consonance with the requirements of Section 204 of the Companies Act, 2013 and rules made thereunder, M/s V. M. & Associates, Company Secretaries, was appointed as Secretarial auditors to conduct the secretarial audit of the Company for the financial year 2017-18.
A Secretarial Audit Report issued by M/s V. M. & Associates, Company Secretaries, (FRN:P1984RJ039200), in respect of the secretarial audit of the Company for the financial year ended March 31, 2018, is given as Annexure II to this Report. The Report does not contain any observation or qualification requiring explanation or comments from the Board under Section 134(3) of the Companies Act, 2013. The Secretarial Audit report for the financial year ended March 31, 2018 is self-explanatory and does not call for any further comments.
The Board has re-appointed M/s V. M. & Associates, Company Secretaries in Practice, Jaipur as Secretarial Auditor of the Company to carry out secretarial audit for the financial year 2018-19.
Internal Audit Report
As per Section 138 of Companies Act, 2013 read with Companies (Accounts) Rules, 2014, every Listed Company is required to appoint Internal Auditor to carry out Internal Audit of the Company.
In consonance with the requirements of Section 138 of the Companies Act, 2013 and rules made there under, Mrs. Garima Gupta, Chartered Accountant, Jaipur, was appointed to conduct the internal audit of the Company for the financial year 201718.
The Board has reappointed Mrs. Garima Gupta, Chartered Accountant, Jaipur as an Internal Auditor of the Company in its meeting held on May 29th, 2018 to carry out internal audit for the financial year 2018-19.
Corporate Governance Report
The Company is committed to observe good corporate governance practices. The report on Corporate Governance for the financial year ended March 31, 2018, as per Regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms a part of this Annual Report as Annexure VIII. The requisite certificate from auditors of the Company confirming compliance with the conditions of Corporate Governance is annexed to this Annual report.
Management Discussion and Analysis Report
Statements in Management Discussion and Analysis of Financial Conditions and Results of Operations of the Company describing the Companyâs objectives, expectations or predictions. Management Discussion and Analysis Report forms as part of this Annual Report as Annexure VII.
Conservation of Energy, Research & Development, Technology Absorption, Foreign Exchange and Outgo
The particulars as prescribed under Section 134 (3) (m) of the Companies Act, 2013 read with the Rule 8(3) of the Companies (Accounts) Rules, 2014 are annexed to this Report as Annexure III.
Change in KMP
During the Financial Year 2017-18 there is no any changes in KMP Transactions with related parties
Information on transactions with related parties pursuant to Section 188(1) for entering into such contract or arrangement in Form AOC-2 is annexed to this Report as Annexure IV. All the transactions with the related party were in ordinary course of business and on an armâs length basis and in accordance with the Section 188 of the Companies Act, 2013, read with the Rules issued thereunder and the Listing Regulations.
Particulars of Employees
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, is attached as Annexure V of the Boardâs Report.
Details as required under Section 197(12) of the Act, read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, with respect to information of top ten employees of the Company in terms of remuneration drawn will be provided upon request by a Member. In terms of the provisions of Section 136(1) of the Act, the Report and Accounts, as set out therein, are being sent to all the Members of your Company, excluding the aforesaid Annexure which is available for inspection by the Members at the Registered Office of the Company during business hours on all working days of the Company upto the date of the Annual General Meeting. If any Member is interested in obtaining a copy thereof, such Member may write to the Company Secretary at the Registered Office of your Company in this regard
none of the employees listed in the said Annexure is a relative of any Director of the Company. None of the employees hold (by himself or along with his/her spouse and dependent children) more than two percent of the equity shares of the Company.
Extract of Annual Return
An extract of the Annual Return in Form MGT-9 in compliance with Section 92 of the Companies Act, 2013 read with Rules made there under is annexed to this Report as Annexure VI.
Transfer of Unclaimed Dividend to Investor Education and Protection Fund (IEPF)
Pursuant to the provisions of Section 124(5) of the Companies Act, 2013, dividend due for refund which remains unpaid or unclaimed for a period of seven years from the date of its transfer to unpaid dividend/unclaimed account is required to be transferred by the company to Investor Education and Protection Fund (IEPF), established by the Central Government under the provisions of Section 125 of the Companies Act, 2013. During the year 2017-18, Rs. 89,754/- was transferred to Investor Education and Protection Fund.
Human Resource Management
Your Company draws its strength from a highly engaged and motivated workforce, whose collective passion and commitment has helped the organization scale new heights. Human Resource policies and processes have evolved to stay relevant to the changing demographics, enhance organizational ability and remain compliant with the changing regulatory requirements. The company has created a favorable work-environment that encourages innovation and nurturing of commercial and managerial talents in its operations.
Trade Relations
The Company maintained healthy, cordial and harmonious Industrial relations at all levels. The Directors wish to place on record their appreciation for the valuable contribution by the employees of the Company.
Quality Assurance
Sustained commitment to the highest levels of quality, best in class service management and robust information security practices helped the Company attain the following milestone during the year.
The Company is an ISO 9001:2015 organization, certified by JAS-ANZ and ISO/IEC 27001:2013 certified by LMS Certification. These standards enable us to identify risks at the initial planning stage of the project. The Company firmly believes in the pursuits of excellence to compete in this emerging and growing software market. Our focus has been on providing quality products and services to our customers.
The Company achieved CMMI level-3 certification and continues to implement the certification quality level in its operation.
Risk Management
The Company has developed and implemented a Risk Management policy which encompasses practices relating to identification, assessment, monitoring and mitigation of various risks to key business objective. The risk Management frame work of the Company seeks to minimize adverse impact of risks on our key business objectives and enables the Company to leverage market opportunity effectively. The Policy is available on the weblink compucom.co.in/Policies/ RISK%20MANAGEMENT%20POLICY.pdf
Material Changes affecting the Company
During the Financial Year 2017-18 Company intends to venture into hospitality Industry and necessary steps are being undertaken in this regard and the Board of the Company approved the capital expenditure of upto Rs. Twenty-Five Crores (25,00,00,000) for venturing into star rating Hotel Business.
Code of Conduct
In compliance with Regulation 26(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013, the Company has framed and adopted a code of conduct and ethics for Board and Senior Management (The Code) . The Code is applicable to the members of the Board, the executive officers and all employees of the Company and its Subsidiaries. The Code is available on the weblink compucom.co.in/Policies/ CODE%20OF%20CONDUCT%20FOR%20BOARD%20MEMBERS%20&%20SENIOR%20MANAGEMENT.pdf
Cost Records
In Compliance with Regulation prescribed by the Central Government under section 148(1) of the Act, the Company maintained Cost Records for activity related to Education and Wind Power Generation.
Prevention of Insider Trading
In compliance with the provisions of Securities Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, the Board has adopted a code of conduct and code of practices and procedures for fair disclosure of unpublished price sensitive information to preserve the confidentiality of price sensitive information to prevent misuse thereof and regulate trading by insiders. The code of practices and procedures for fair disclosure of unpublished price sensitive information is also available on the weblink compucom.co.in/Policies/CODE%20OF%20CONDUCT%20TO%20REGULATE, %20MONITER%20AND%20REPORT%20TRADING%20BY%20INSIDERS.pdf
Credit Rating
During the year, the Companyâs credit rating for long-term bank facilities were upgraded by one notch up from CARE BBB-(Triple B Minus) to CARE BBB (Triple B Plus), which denotes adequate degree of safety regarding timely servicing of financial obligations. Moreover, short-term bank facilities were CARE A3 (A Three) , which denotes strong degree of safety regarding timely servicing of financial obligations
Directorsâ Responsibility Statement
Based on the framework of internal financial controls established and maintained by the company, reviews performed by management in concurrence with the Audit committee, the Companyâs internal financial controls were adequate and effective as on 31st March, 2018.
In compliance with Section 134(5) of the Companies Act, 2013, the Board of Directors to the best of their knowledge and hereby confirm the following:
(a) In the preparation of the annual accounts, the applicable Accounting Standards had been followed along with proper explanations 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;
(e) The Directors had laid down internal financial control to be followed by the Company and that such internal financial controls are adequate and were operating effectively;
Explanation. âFor the purposes of this clause, the term âinternal financial controlsâ means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information;
(f) The Directors had devised proper system to ensure compliance with the provisions of all applicable laws and that such system was adequate and operating effectively.
Other Disclosure
No other disclosure are required as per Companies Act, 2013 of SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015.
Acknowledgement
The Directors take this opportunity to thank all Investors, associates and business partners, clients, strategic alliance partners, technology partners, vendors, financial institutions/banks, regulatory and government authorities, media and stock exchanges, for their continued support during the year. The Directors place on record their appreciation of the contribution made by all the employees at all levels for their dedicated service and continued excellent work throughout the year.
By order of the Board
For Compucom Software Limited
Sd/- Sd/-
(Surendra Kumar Surana) (Shubh Karan Surana)
Managing Director & CEO Director
(DIN:-00340866) (DIN:- 00341082)
Place: Jaipur,
Date: August 13, 2018
Mar 31, 2016
The Directors have immense pleasure in presenting their 22nd Annual Report on the business and operations of the Company together with Audited Financial Statements for the year ended on March 31, 2016.
Financial Results:
The highlights of the financial results for the financial year 2015-2016 are as follows:
(Rs. in Lakhs)
Particulars |
31.03.2016 |
31.03.2015 |
Total Income |
5761.56 |
5,519.08 |
Operating Expenditure |
2869.49 |
2,576.10 |
Operating Profit (PBDIT) |
2892.07 |
2,942.98 |
Finance Cost |
342.87 |
495.41 |
Depreciation |
1456.07 |
1427.55 |
Profit before Tax |
1093.13 |
1020.02 |
Exceptional Items |
78.13 |
231.27 |
Provision for Income Tax including Deferred Tax |
318.28 |
230.15 |
Net Profit after Tax |
696.72 |
558.60 |
Appropriation |
|
|
Dividend |
79.12 |
79.13 |
Dividend Tax |
16.56 |
16.20 |
Transfer to General Reserve |
- |
- |
Total Appropriations |
95.68 |
95.33 |
Earnings per Share: Basic and Diluted (in Rs.) |
|
|
Considering Extraordinary Items |
0.88 |
0.71 |
Without Considering Extraordinary Items |
0.88 |
0.71 |
Results of Operations:
Total revenues earned during the year amounted to Rs 5761.56 lakhs compared to that of Rs.5,519.08 lakhs in the previous financial year. During the year under review, the income from operations is Rs.5,576.37 lakhs compared to Rs 5,251.17 lakhs in the previous financial year. This reflects increase of Rs. 325.2 lakhs, which is mainly due to the increase of income from Learning Solution business segment. The profit before tax has increased from Rs.1,020.02 lakhs in the previous financial year to Rs 1093.13 lakhs in the current financial year.
The Operating Profit during this period is Rs.2892.07 lakhs as compared to Rs. 2,942.98 lakhs in the previous financial year.
As required by AS- 21, Consolidated Financial Statements are provided in the later section of the Annual Report.
Business Operations:
(1) Software & E-Governance Services:
During the year, the Company focused on the areas where higher margin was available with low risk factors. The revenue generated from this segment during the Financial Year 2015-16 was Rs. 461.71 Lakhs as against Rs 456.51 Lakhs during the previous financial year. This reflects increase of 1.14 % i.e. Rs. 5.20 Lakhs. Profit earned from this segment amount to Rs. 223 Lakhs as compared to that of Rs. 159.71 Lakhs during the previous Financial Year, which has resulted in increase of 39.63% i.e. Rs. 63.29 Lakhs.
During the year 2015-16 the Company has been awarded one more project i.e. LDMS Project. The Company has generated revenue of Rs. 52.11 Lakhs in the last quarter of this financial year.
(2) Learning Solutions:
During this year revenue from this segment is amounted to Rs. 4938.79 Lakhs against the previous year revenue of Rs. 4,605.43 Lakhs which shows an increase in revenue by 7.24% i.e; Rs. 333.36 Lakhs.
Learning Solution Segment mainly comprises ICT Phase II, ICT Phase III, ICT Bihar, CALP II, Computer Aided Training Programme and other projects. The Company has covered total 8,223 Govt. Schools and over 2 million learners under its educational Umbrella so far. These PPP Projects could not have been a success without the cooperation extended by Employees, Business Associates, Vendors and Government officials. Apart from this, the other projects that have completed successfully, those are CALP-II worth Rs.10.41 Crore covers 836 Govt. schools of Rajasthan has completed in September 2015. Most of these projects are in form of IT Infrastructure development at school levels.
The Company has been running successfully, ICT Project Phase III worth Rs. 158.50 Crore, for 1,373 Govt. Schools of Rajasthan. It has been commissioned in the month of Feb. 2014 and will be a five (5) year project on BOOT model.
The Company has massive plans for capturing the advantage of Indian education expenditure planned through Govt. of India promoted PPP models across India fuelled by Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and skill development initiatives. Company is also planning to leverage in-house software development and satellite based technology skills for expansion in school and coaching Business.
(3) Wind Power Generation:
The Company has installed two Wind power generation plants in Jaisalmer (Rajasthan) with capacity of 0.6 MW each, two at Sikar (Rajasthan) with capacity of 0.6 MW each & One Plant at Krishna (Andhra Pradesh) with capacity of 0.8 MW. Total wind power generation capacity is 3.2 MW. The operation and maintenance of all these wind power project has been out-sourced to M/s Wind World India (previously known as Enercon India Limited). During the year revenue generated from this segment amounted to Rs. 175.87 Lakhs as compared to Rs. 189.23 Lakhs during the previous year ended on March 31, 2015 which shows a decrease in the revenue by 7.06%i.e. Rs. 13.36 Lakhs due to lower generation of units. Profit earned from this segment amount to Rs. 54.29 Lakhs as compared to that of Rs. 61.99 Lakhs during the previous Financial Year, which has resulted a decrease of 12.42% i.e. Rs. 7.7 Lakhs.
4. Treasurey Activities:
The revenue generated from this segment during the Financial Year 2015-16 was Rs. 185.19 Lakhs as against Rs. 267.91 Lakhs during the last financial year. During the year, the revenue generated from treasury operations has decreased by 30.88% i.e. Rs. 82.72 Lakhs.
The following chart depicts revenue generated from operation for the year ended March 31, 2016:-
Details of Subsidiary and associates Companies
The Company has two subsidiary Companies and one associate Company:
Pursuant to provisions of Section 129(3) of the Companies Act, 2013 a statement containing salient features of the financial statement of the Company''s subsidiaries and associate in Form AOC-1 is provided in the later section of the Annual Report of the Company.
Pursuant to the provisions of Section 136 of the Companies Act, 2013 the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited accounts in respect of subsidiaries, are also available on the website of the Company.
During the year, operations of following two subsidiaries were reviewed.
(A) ITneer, Inc. is a wholly owned subsidiary Company of Compucom Software Limited. It has earned total revenue of US$ 1,001,417 during the financial year 2015-16 as compared to US $ 9,57,720 in the previous financial year. This reflects a increase of approx. 4.56% i.e. US $ 43,697. The Company has earned profit of US$ 34,969 as compared to the Profit of US $ 22,547 in the previous financial year. The Company is operating out of its own premises in Atlanta, USA. It is headed by Promoter Director Mr. Ajay Kumar Surana. The copy of the audited accounts, together with the independent auditor''s report, is provided in a separate Section of this Annual Report.
(B) CSL Infomedia Pvt. Ltd. is another subsidiary Company of Compucom Software Limited. It has earned total revenue of Rs. 567.11 Lakhs during the financial year 2015-16 as compared to Rs. 412.92 Lakhs in the previous financial year which shows an increase of 37.34% i.e. Rs. 154.19 Lakhs. The Company has earned Profit of Rs.105.67 Lakhs as compared to the loss of Rs. 34.06 Lakhs in the previous financial year. The Company is mainly operating in multimedia, Content Development, Education TV Segment and Satellite Education. The copy of the audited accounts together with the independent Auditors Report is provided in a separate section of this Annual Report. The Company has two TV Channel one âJAN TVâ, Satellite TV channel and âJAN TV PLUSâ (an Infotainment Channel).Currently it is available on various cable networks across India and also available live on jantvplus.in.
Dividend
Keeping the continuous track record of rewarding its shareholders, your Directors are pleased to recommend a dividend @ 5% i.e. Rs. 0.10/- per Equity share of Rs. 2/- each for the Financial Year 2015-16, subject to approval of the shareholders at the ensuing Annual General Meeting.
Dividend declared & paid during last 15 (Fifteen) years:
Financial Year |
Dividend Rate |
2000-01 |
25% |
2001-02 |
10% |
2002-03 |
25% |
2003-04 |
25% |
2004-05 |
25% |
2005-06 |
30% |
2006-07 |
30% |
2007-08 |
15% |
2008-09 |
10% |
2009-10 |
10% |
2010-11 |
15% |
2011-12 |
15% |
2012-13 |
20% |
2013-14 |
20% |
2014-15 |
5% |
Book Value per Share:
Details of book value during the last 15 (Fifteen) years are as under:
Financial Year |
No of Shares |
Face Value per share |
Book Value Per share (in Rs.) |
2000-01 |
5,025,000 |
10 |
55.74 |
2001-02 |
5,025,000 |
10 |
65.6 |
2002-03 |
5,025,000 |
10 |
69 |
2003-04 |
5,025,000 |
10 |
79.9 |
2004-05 |
5,025,000 |
10 |
90.79 |
2005-06 |
5,025,000 |
10 |
98.73 |
2006-07 |
5,025,000 |
10 |
105.89 |
2007-08** |
25,125,000** |
2 (10) |
22.79 |
2008-09*** |
502,50,000*** |
2 |
13.1 |
2009-10 |
502,50,000 |
2 |
14.47 |
2010-11**** |
7,91,25,188**** |
2 |
12.26 |
2011-12 |
7,91,25,188 |
2 |
12.97 |
2012-13 |
7,91,25,188 |
2 |
13.92 |
2013-14 |
79125188 |
2 |
14.74 |
2014-15 |
79125188 |
2 |
14.94 |
2015-16 |
79125188 |
2 |
15.70 |
**Equity share of face value of Rs.10 each subdivided into equity share of Face value of Rs. 2/- each. Record date for the same was October 15, 2007.
*** The Company issued bonus shares in the ratio of 1:1. Record date for the same was December 26, 2008.
****The Company issued bonus shares in the ratio of 1:2. Record date for the same was October 20, 2010.
**** Preferential issue of 37.50 Lakhs Equity shares allotted on November 4, 2010.
Fixed Deposits/Deposits from Public
During the financial year 2015-16, your Company has not accepted any fixed deposits nor renewed any Fixed deposit, falling within the definition of Section 73, 74 and 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.
Listing of Shares
Your Company''s shares are listed at Bombay Stock Exchange Ltd. (BSE), National Stock Exchange of India Limited (NSE) and Calcutta Stock Exchange Limited (CSE) and the listing fee for the year 2016-17 has been duly paid. The Scrip Code of the Company is 532339 at BSE.
Number of Meetings of Board of Directors
Four (4) meetings of Board were held during this financial year. The dates on which the Board Meetings were held are as follows:
May 29, 2015; August 12, 2015; November 6, 2015; February 11, 2016.
The intervening gap between any two meetings was within the period prescribed by the Companies Act, 2013 and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Policy on Director''s appointment and remuneration
The current policy is to have an appropriate mix of executive and independent Directors to maintain the independence of the Board, and separate its functions of governance and management. As on March 31, 2016, the Board consists of 8 members, one of whom is executive or whole time Director, 3 are Non-Executive & Non-Independent Directors and 4 are Non-Executive & Independent Directors.
The policy of the Company on Director''s appointment and remuneration, including criteria for determining qualifications, positive attributes, independence of a Director and other matters provided under Sub-section (3) of Section 178 of the Companies Act, 2013, adopted by the Board, is as Annexure I of the Board''s report. We affirm that the remuneration paid to the Directors is as per the terms laid out in the nomination and remuneration policy of the Company. The Policy is also available on the Company''s Website at www.compucom.co.in
Details of appointment of Directors and KMPs and their resignation during the year Appointments
Mr. Ghisa Lal Chaudhary was appointed as an Additional Director on the Board of the Company w.e.f. 11th February, 2016, and subject to the approval of the members at the ensuing Annual General Meeting his appointment is being regularized as Independent and Non-Executive Director on the terms and conditions as mentioned in the resolution in the Notice.
Dr. Satish Kumar was appointed as an Additional Director on the Board of the Company w.e.f. 25th May, 2016, and subject to the approval of the members at the ensuing Annual General Meeting his appointment is being regularized as Independent and Non-Executive Director on the terms and conditions as mentioned in the resolution in the Notice.
Reappointment
During the year Mr. Ajay Kumar Surana is liable to retire by rotation and being eligible has offered himself for re-appointment. Accordingly, approval of the members is sought for his reappointment at the ensuing Annual General Meeting.
Mr. Rajendra Prasad Udawat was re-appointed as an Additional Director on the Board of the Company w.e.f., 2nd April, 2016, and subject to the approval of the members at the ensuing Annual General Meeting, his appointment is being regularized as Independent and Non-Executive Director on the terms and conditions as mentioned in the resolution in the Notice.
Dr. Anjila Saxena was re-appointed as an Additional Director on the Board of the Company w.e.f. 3rd August, 2016 and subject to the approval of the members at the ensuing Annual General Meeting, her appointment is being regularized as Independent and Non-Executive Director on the terms and conditions as mentioned in the resolution in the Notice.
The brief resume of the Directors seeking appointment/re-appointment in the forthcoming Annual General Meeting, in Pursuance of Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed to the Annual General Meeting notice.
Retirement
During the year Mr. Rajendra Prasad Udawat & Mr. Stephen Carl Viehman, as Independent Directors retired on March 31, 2016 and Dr. Anjila Saxena retired on July 31, 2016.
Vigil Mechanism
The Company had implemented a vigil mechanism, whereby employees, Directors and other stakeholders can report matters such as generic grievances, corruption, misconduct, fraud, misappropriation of assets and non-compliance of code of conduct to the Company. The policy safeguards the whistle blowers to report concerns or grievances and also provides a direct access to the chairman of the audit committee. During the year under review none of the personnel has been denied access to the chairman of Audit Committee.
The Vigil Mechanism Policy is available on the Company''s website at www.compucom.co.in
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
Your Company has always believed in providing a safe and harassment free workplace for every individual working in its premises through various interventions and practices. The Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.
The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.
The following is a summary of sexual harassment complaints received and disposed off during the year 2015-16
- Number of complaints received: NIL
- Number of complaints disposed off: NIL
Declaration of independence by Directors
The Independent Non-Executive Directors of the Company, viz. Mr. Rajendra Prasad Udawat, Dr. Anjila Saxena, Mr Ghisa Lal Chaudhary, Dr. Satish Kumar and Mr. Ramesh Chand Jain have affirmed that they continue to meet all the requirements specified under sub-section (6) of section 149 of Companies Act, 2013 and the Regulation 16 (1) (B) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Composition of Audit Committee: The Audit Committee comprises three Non-Executive Directors, two of whom are Independent Directors and one is Non-Independent Director. Mr. Rajendra Prasad Udawat is the Chairman of the Audit Committee. The Members possess adequate knowledge of Accounts, Audit and Finance. The composition of the Audit Committee meets the requirements as per the Section 177 of the Companies Act, 2013 and of Regulation 18 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. There are no recommendations of the Audit Committee which have not been accepted by the Board.
Board Evaluation
As per the provisions of the Companies Act, 2013 and SEBI (Listing obligation and Disclosure Requirements) Regulations 2015, the formal annual evaluations needs to be made by the Board of its own performance and that of its committees and individual Directors. Schedule IV of the Companies Act, 2013 states that the performance evaluation of Independent Directors shall be done by the entire Board of Directors, excluding the Director being evaluated.
The evaluation of all the Directors and the Board as a whole was conducted based on the criteria and framework adopted by the Board. The evaluation process has been explained in the Corporate Governance report section in this Annual Report. The Board approved the evaluation results as collated by the Nomination and Remuneration Committee.
Training of Independent Directors
Every new Independent Director of the Board attends an orientation program. To familiarize the new inductees with the strategy, operations and functions of our Company, the executive Directors / senior managerial personnel make presentations to the inductees about the Company''s strategy, operations, product and service offerings, markets, software delivery, organization structure, finance, human resources, technology, quality, facility and risk management.
Further, at the time of appointment of an independent Director, the Company issues a formal letter of appointment outlining his/ her role, function, duties and responsibilities as a Director.
Familiarization Programme for Independent Directors:
The Company believes that the Board be continuously empowered with the knowledge of the latest developments in the Company''s business and the external environment affecting the industry as a whole. To this end, the Directors were given presentations on the global business environment, as well as all business areas of the Company including business strategy, risk opportunities. Monthly updates on performance/developments giving highlights of performance of the Company during each month including the developments / events having impact on the business of the Company are also sent to all the Directors. The details of familiarization programs imparted to Independent Directors is disclosed on the Company''s website at www.compucom.co.in.
Performance evaluation:
Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10), 19(4) and part D of Schedule II of the SEBI (LODR Regulations) 2015, a Board Evaluation Policy has been framed and approved by the Nomination and Remuneration Committee (N & RC) and by the Board.
The Board carried out an annual performance evaluation of its own performance, the Independent Directors individually as well as the evaluation of the working of the Committee of the Board. The Performance evaluation of all the Directors was carried out by the Nomination and Remuneration Committee. The Performance evaluation of the Chairman and the Non- Independent Directors was carried out by the Independent Directors.
Corporate Social Responsibility Committee
As per Section 135 of Companies Act, 2013 the Company constituted a Corporate Social Responsibility(CSR) Committee for formulating and recommending to Board, a Corporate Social Responsibility policy (CSR Policy) which indicate the activities to be undertaken by the Company as specified in Schedule VII of the Companies Act, 2013, to recommend the amount of expenditure to be incurred on the activities and to monitor the Corporate Social Responsibility Policy of the Company from time to time.
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure II of this report in the prescribed format of the Companies (Corporate Social Responsibility Policy) Rules, 2014. The Policy is available on the Company''s website at www.compucom.co.in
Internal financial control systems
The Company has put in place an adequate system of internal control commensurate with its size and nature of business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies. The Audit Committee reviews adherence to internal control systems and internal audit reports.
Loans, guarantees and investments in securities by the Company
The particulars of Loans, Guarantees and Investments have been disclosed on the Financial Statements.
Transfer to Reserves
The Company doesn''t transfer any amount to reserves.
Statutory Auditors and Auditors'' Report
The Company has received consent from M/s. S Misra & Associates, Chartered Accountants to the effect that their appointment, if made, would be within the prescribed limits under Section 139 of the Companies Act, 2013 and that they are not disqualified for appointment within the meaning of Section 141 of the said Act. Accordingly, the Board of Directors has recommended the ratification of appointment as Statutory Auditors.
At the Company''s 20th Annual General Meeting (AGM) held on August 27, 2014, M/s S. Misra & Associates, Chartered Accountants, were appointed as the Company''s Statutory Auditors from the conclusion of the 20th Annual General Meeting till the Conclusion of the 23rd AGM. In terms of the section 139(1) of the Companies Act, 2013, appointment of the Statutory Auditors to hold office from the conclusion of 20th Annual general meeting until the conclusion of 23rd Annual General Meeting is placed for your ratification.
The Auditors Report to the shareholders for the year under review does not contain any qualification.
No frauds have been reported by the Auditors under Section 143(12) of the Companies Act, 2013 requiring disclosure in the Board''s Report
Secretarial Audit Report
As per Section 204 of Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every Listed Company is required to appoint Secretarial Auditor to carry out Secretarial Audit of the Company.
In consonance with the requirements of Section 204 of the Companies Act, 2013 and rules made there under, M/s V. M. & Associates, Company Secretaries in Practice, Jaipur, was appointed to conduct the secretarial audit of the Company for the financial year 2015-16.
A Secretarial Audit Report issued by M/s V. M. & Associates, Company Secretaries in practice, in respect of the secretarial audit of the Company for the financial year ended 31st March, 2016, is given in Annexure III to this Report. The Report does not contain any observation or qualification requiring explanation or comments from the Board under Section 134(3)of the Companies Act,2013.
The Secretarial Audit report for the financial year ended 31st March, 2016 is self-explanatory and does not call for any further comments.
The Board has re-appointed M/s V. M. & Associates, Company Secretaries in Practice, Jaipur as Secretarial Auditor of the Company to carry out secretarial audit of the Company for the financial year 2016-17.
Internal Audit Report
As per Section 138 of Companies Act, 2013 read with Companies (Accounts) Rules, 2014, every Listed Company is required to appoint Internal Auditor to carry out Internal Audit of the Company.
In consonance with the requirements of Section 138 of the Companies Act, 2013 and rules made there under, Mr. Girish Kumar Gupta, Chartered Accountant, was appointed to conduct the internal audit of the Company for the financial year 2015-16.
No major internal audit observations were observed during the period under review.
Corporate Governance Report and Management Discussion and Analysis Report
The Company is committed to observe good corporate governance practices. The report on Corporate Governance for the financial year ended March 31, 2016, as per Regulation 34(3) read with Schedule V of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 form a part of this Annual Report. The requisite certificate from auditors of the Company confirming compliance with the conditions of Corporate Governance is annexed to this report.
Conservation of Energy, Research & Development, Technology Absorption, Foreign Exchange and Outgo
The particulars as prescribed under Section 134 (3) (m) of the Companies Act, 2013 read with the Rule 8(3) of the Companies (Accounts) Rules, 2014 are annexed to this Report as Annexure IV.
Transactions with related parties
Information on transactions with related parties pursuant to Section 188(1) along with the justification for entering into such contract or arrangement in Form AOC-2 is annexed to this Report as Annexure V.
Particulars of Employees
1. None of the employees of the Company was in receipt of the remuneration exceeding the limits prescribed u/s 197 (12) read with rule 5, sub-rule 2 of The Companies (Appointment and Remuneration of Managerial Personnel) of the Companies Act, 2013 during the year under review.
2. The ratio of the remuneration of each Director to the median employee''s remuneration and other details in terms of subsection 12 of Section 197 of the Companies Act, 2013 read with Rule 5(1) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are forming part of this report as Annexure VI.
Extract of Annual Return
An extract of the Annual Return in Form MGT-9 in compliance with Section 92 of the Companies Act, 2013 read with Rules made there under is annexed to this Report as Annexure VII.
Transfer of Unclaimed Dividend to Investor Education and Protection Fund (IEPF)
Pursuant to the provisions of Section 124(5) of the Companies Act, 2013, dividend due for refund which remains unpaid or unclaimed for a period of seven years from the date of its transfer to unpaid dividend/unclaimed account is required to be transferred by the Company to Investor Education and Protection Fund (IEPF), established by the Central Government under the provisions of Section 125 of the Companies Act, 2013. During the year, no amount was due to be transferred to Investor Education and Protection Fund.
Human Resource Management
Your Company draws its strength from a highly engaged and motivated workforce, whose collective passion and commitment has helped the organization scale new heights. Human Resource policies and processes have evolved to stay relevant to the changing demographics, enhance organizational ability and remain compliant with the changing regulatory requirements. The Company has created a favorable work-environment that encourages innovation and nurturing of commercial and managerial talents in its operations.
Trade Relations
The Company maintained healthy, cordial and harmonious Industrial relations at all levels. The Directors wish to place on record their appreciation for the valuable contribution by the employees of the Company.
Quality Assurance
Sustained commitment to the highest levels of quality, best in class service management and robust information security practices helped the Company attain the following milestone during the year.
The Company is an ISO 9001:2000 organization, certified by Det Norske Veritas (DNV) since 1998. These standards enable us to identify risks at the initial planning stage of the project. The Company firmly believes in the pursuits of excellence to compete in this emerging and growing software market. Our focus has been on providing quality products and services to our customers.
The Company achieved CMMI level-3 certification and continues to implement the certification quality level in its operation.
Directorsâ Responsibility Statement
Based on the framework of internal financial controls established and maintained by the Company, reviews performed by management in concurrence with the Audit committee, the Company''s internal financial controls were adequate and effective as on 31st March, 2016.
In compliance with Section 134(5) of the Companies Act, 2013, the Board of Directors to the best of their knowledge and hereby confirm the following:
(a) In the preparation of the annual accounts, the applicable Accounting Standards have been followed along with proper explanations and disclosures relating to material departures;
(b) The Directors have selected relevant 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;
(e) The Directors had laid down internal financial control to be followed by the Company and that such internal financial controls are adequate and operating effectively; and
(f) The Directors have devised proper system to ensure compliance with the provisions of all applicable laws and that such system were adequate and operating effectively.
Acknowledgement
The Directors take this opportunity to thank all Investors, associates and business partners, clients, strategic alliance partners, technology partners, vendors, financial institutions/banks, regulatory and government authorities, media and stock exchanges, for their continued support during the year. The Directors place on record their appreciation of the contribution made by all the employees at all levels for their dedicated service and continued excellent work throughout the year.
For and on behalf of the Board
(Surendra Kumar Surana) (Shubh Karan Surana)
Managing Director & CEO Director
(DIN:-00340866) (DIN:- 00341082)
Jaipur,
August 03, 2016
Mar 31, 2015
Dear Members,
The Directors have immense pleasure in presenting their 21st Annual
Report on the business and operations of the Company together with
Audited Financial Accounts for the year ended on March 31,2015.
Financial Results:
The highlights of the financial results for the financial year2014-2015
are as follows:
(Rs. in Lacs)
Particulars 31.03.2015 31.03.2014
Total Income 5,519.08 7,385.92
Total Expenses 2,576.10 3,968.61
Operating Profit (PBDIT) 2,942.98 3,417.31
Finance Cost 495.41 337.28
Depreciation 1427.55 1,502.28
Profit before Tax 1020.02 1577.75
Exceptional Items 231.26 -
Provision for Income Tax including 230.15 554.04
Deferred Tax
Net Profit after Tax 558.60 1023.71
Appropriation
Dividend 79.13 316.50
Dividend Tax 16.20 53.79
Transfer to General Reserve - -
Total Appropriations 95.33 370.29
Earnings per Share: Basic and
Diluted (in Rs.)
Considering Extraordinary Items 0.71 1.29
Without Considering Extraordinary Items 0.71 1.29
Results of Operations:
Total revenues earned during the year amounted to Rs. 5,519.08Lacs
compared to that of Rs. 7,385.92Lacs in the previous financial year.
During the year under review, the income from operations was Rs.
5,251.17 Lacs compared to Rs. 7,050.36 Lacs in the previous financial
year. This reflects decrease of Rs. 1,799.19 Lacs, which is mainly due
to the decrease of income from Learning Solution business segment. The
profit before tax has decreased from Rs. 1,577.75 Lacs in the previous
financial year to Rs. 1,020.02Lacs in the current financial year.
The Operating Profit during this period is Rs. 2,942.98 Lacs as
compared to Rs. 3417.31 Lacs in the previous financial year.
As required by AS- 21, Consolidated Financial Statements are provided
in the later section of the Annual Report.
Business Operations:
(1) Software & E-Governance Services:
During the year, the Company focused on the areas where higher margin
was available with low risk factors. The revenue generated from this
segment during the Financial Year 2014-15 was Rs.456.51 Lacs as against
Rs. 596.35 Lacs during the previous financial year. This reflects
decrease of 23.45 % i.e. Rs. 139.84 Lacs. Profit earned from this
segment amount to Rs. 159.71 Lacs as compared to that of Rs. 247.47
Lacs during the previous Financial Year, which has resulted in decrease
of 35.46% i.e. Rs. 87.76 Lacs.
(2) Learning Solutions:
During this year revenue from this segment is amounted to Rs. 4,605.43
Lacs against the previous year revenue of Rs. 6251.23 Lacs which shows
a decrease in revenue by 26.33% i.e. Rs.1,645.80Lacs.
Learning Solution Segment mainly comprises ICT Phase II, ICT Phase III,
ICT Bihar, CALP I, CALP II, ComputerAided Training Programme and other
projects. The Company has covered total 4,595Govt. Schools and over 2
million learners under its educational Umbrella so far. These PPP
Projects could not have been a success without the cooperation extended
by Employees, Business Associates, Vendors and Government officials.
The Company has successfully completed the ICT-I Project & recently the
Company has successfully completed another education project ICT
Phase-II involving 1550 Govt. Higher Secondary Schools in August 2015.
Apart from this the other projects that are running successfully are
CALP-I project, worth Rs.10.68 cores for imparting training in 836
Govt. schools of Rajasthan, CALP-II worth Rs.10.41 Crore covers 836
Govt. schools of Rajasthan. Most of these projects are in form of IT
Infrastructure development at school levels.
The Company has been awarded one more Project, ICT Project Phase III
worth Rs. 158.50 Crore, for 1,373 Govt. Schools of Rajasthan. It has
been commissioned in the month of Feb. 2014 and will be a five (5) year
project onBOOT model.
The Company has massive plans for capturing the advantage of Indian
education expenditure planned through Govt. of India promoted PPP
models across India fuelled by Sarva Shiksha Abhiyan (SSA), Rashtriya
Madhyamik Shiksha Abhiyan (RMSA) and skill development initiatives.
Company is also planning to leverage in-house software development and
satellite based technology skills for expansion in school and coaching
Business.
(3) Wind Power Generation:
The Company had set up two wind power generation plants of 1.20 MW each
at Jaisalmer (Rajasthan), two at Sikar (Rajasthan) of 1.20 MW each& One
Plant at Krishna (Andhra Pradesh) of 0.8 MW. Total wind power
generation capacity is 3.2 MW. The operation and maintenance of all
these wind power project has been out-sourced to M/s Wind World India
(previously known as Enercon India Limited). During the year revenue
generated from this segment amounted to Rs. 189.23 Lacs as compared to
Rs. 202.78 Lacs during the previous year ended on March 31,2014. Which
shows a decrease in the revenue by6.68%i.e. Rs. 13.55 Lacs due to lower
generation of units.Profit earned from this segment amount to Rs. 61.99
Lacs as compared to that of Rs. 94.00 Lacs during the previous
Financial Year, which has resulted an decrease of 34.05% i.e. Rs. 32.01
Lacs.
(4) Treasury Activities:
The revenue generated from this segment during the Financial Year
2014-15 was Rs. 267.91 Lacs as against Rs. 335.56Lacs during the last
financial year. During the year, the revenue generated from treasury
operations has decreased by 20.16% i.e. Rs. 67.65 Lacs. During the
year most of the funds were invested in FDRs, where returns are lower
but safe in comparison to equity-oriented funds.
The following chart depicts revenue generated from operation for the
year ended March 31,2015:-
Details of Subsidiary and associates Companies
The Company has two subsidiary Companies and one associate Company:
Pursuant to provisions of Section 129(3) of the Companies Act, 2013 a
statement containing salient features of the financial statement of the
Company's subsidiaries and associate in Form AOC-1 is provided in the
later section of the Annual Report of the Company.
Pursuant to the provisions of Section 136 of the Companies Act, 2013
the financial statements of the Company, consolidated financial
statements along with relevant documents and separate audited accounts
in respect of subsidiaries, are also available on the website of the
Company.
During the year, operations of following two subsidiaries were
reviewed.
(A) ITneer, Inc. is a wholly owned subsidiary Company of Compucom
Software Limited. It has earned total revenue of US$ 9,57,720 during
the financial year 2014-15 as compared to US$ 9,76,721 in the previous
financial year. This reflects a decrease of approx 1.95% i.e.
US$19,001. The Company has declared profit of US$ 22,547 as compared to
the loss of US$ 14,280 in the previous financial year. The Company is
operating out of its own premises in Atlanta, USA. It is headed by
Promoter Director Mr. Ajay Kumar Surana. The copy of the audited
accounts, together with the independent auditor's report, is provided
in a separate section of this Annual Report.
(B) CSL Infomedia Pvt. Ltd. is another subsidiary Company of Compucom
Software Limited. It has earned total revenue of Rs. 412.92 Lacs during
the financial year 2014-15 as compared to Rs. 477.45 Lacs in the
previous financial year which shows a decrease of 13.52% i.e. Rs.
64.53 Lacs. The Company has declared loss of Rs.34.07 Lacs as compared
to the loss of Rs. 81.00 Lacs in the previous financial year. The
Company is mainly operating in multimedia, Content Development and
Education TV Segment. The copy of the audited accounts together with
the independent Auditors Report is provided in a separate section of
this Annual Report. The company has two TV Channel one "Jan TV",
Satellite TV channel and "Jan TV PLUS" (an Infotainment
Channel).Currently it is available on various cable networks across
India and also available live on jantvplus.in.
Dividend
Keeping the continuous track record of rewarding its shareholders, your
Directors are pleased to recommend a dividend @5% i.e. Rs. 0.10/ - per
Equity share of Rs. 2/- each for the Financial Year 2014-15, subject to
approval of the shareholders at the ensuing Annual General Meeting.
Financial Year Dividend Rate
2000- 01 25%
2001- 02 10%
2002- 03 25%
2003- 04 25%
2004- 05 25%
2005- 06 30%
2006- 07 30%
2007- 08** 15%
2008- 09*** 10%
2009- 10 10%
2010- 11**** 15%
2011- 12 15%
2012- 13 20%
2013- 14 20%
Book Value per Share:
Details of book value during the last 14 (Fourteen) years are as under:
Financial No of Shares Face Value Book Value
Year per share Per share
(in Rs.)
2000-01 5,025,000 10 55.74
2001-02 5,025,000 10 65.6
2002-03 5,025,000 10 69
2003-04 5,025,000 10 79.9
2004-05 5,025,000 10 90.79
2005-06 5,025,000 10 98.73
2006-07 5,025,000 10 105.89
2007-08** 25,125,000** 2(10) 22.79
2008-09*** 502,50,000*** 2 13.1
2009-10 502,50,000 2 14.47
2010-11**** 7,91,25,188**** 2 12.26
2011-12 7,91,25,188 2 12.97
2012-13 7,91,25,188 2 13.92
2013-14 79125188 2 14.74
2014-15 79125188 2 14.94
**Equity share of face value of Rs.10 each subdivided into equity share
of Face value of Rs. 2/- each. Record date for the same was October 15,
2007.
*** The Company issued bonus shares in the ratio of 1:1. Record date
for the same was December 26, 2008.
****The Company issued bonus shares in the ratio of 1:2. Record date
for the same was October 20, 2010.
**** Preferential issue of 37.50 Lacs Equity shares allotted on
November 4, 2010.
Directors' Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, Directors state
therein that:
(a) In the preparation of the annual accounts, the applicable
Accounting Standards have been followed along with proper explanations
and disclosures relating to material departures.
(b) The Directors have selected relevant accounting policies and
applied them 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 on March 31,2015 and of the profit
of the Company for the period.
(c) 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 safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
(d) The annual accounts have been prepared on a going concern basis.
(e) They have laid down internal financial control to be followed by
the Company and such internal financial controls are adequate and
operating effectively.
(f) They have devised proper system to ensure compliance with the
provisions of all applicable laws and that such system were adequate
and operating effectively.
Fixed Deposits/Deposits from Public
During the financial year 2014-15, your Company has not accepted any
public deposits nor renewed any fixed deposit, falling within the
definition of Section 73, 74 of the Companies Act, 2013.
Listing of Shares
Your Company's shares are listed at Bombay Stock Exchange, National
Stock Exchange and Calcutta Stock Exchange Limited and the listing fee
for the year 2015-16 has been duly paid.
Number of Meetings of Board
Four (4) meetings of Board were held during this financial year. The
intervening gap between any two meetings was within the period
prescribed by the Companies Act, 2013.
Policy on Director's appointment and remuneration
The current policy is to have an appropriate mix of executive and
independent directors to maintain the independence of the Board, and
separate its functions of governance and management. As on March
31,2015, the Board consists of 6 members, one of whom is executive or
whole time director, and three are independent directors.
The policy of the Company on director's appointment and remuneration,
including criteria for determining qualifications, positive attributes,
independence of a director and other matters provided under Sub-section
(3) of Section 178 of the Companies Act, 2013, adopted by the Board, is
as Annexure I of the Board's report. We affirm that the remuneration
paid to the directors is as per the terms laid out in the nomination
and remuneration policy of the Company.
Appointments:-
Mr. Ramesh Chand Jain was appointed as an Additional Director on the
Board of the company w.e.f. 29th May, 2015, and subject to the approval
of the members at the ensuing Annual General Meeting his appointment is
being regularized as Independent Non Executive Director on the terms
and conditions as mentioned in the resolution in the Notice.
The Company has received requisite notice in writing from a member
proposing his candidature for appointment as an Independent Director.
He meets with the criteria of independence as prescribed both under
sub-section (6) of Section 149 of the Companies Act, 2013 and under
Clause 49 of the Listing Agreement with the Stock Exchanges.
Mrs. Trishla Rampuria was appointed as an Additional Director on the
Board of the company w.e.f. 12th August, 2015, and subject to the
approval of the members at the ensuing Annual General Meeting her
appointment is being regularized as Non-Independent and Non Executive
Director on the terms and conditions as mentioned in the resolution in
the Notice.
Vigil Mechanism
The Company has already established a vigil mechanism policy as per
clause 49 of Listing Agreement and also placed on the website of
company and the policy is annexed in the Board's report as Annexure II.
Sexual Harassment
During the year under review, there were no cases filed pursuant to the
sexual harassment of women at work place (prevention, prohibition and
redressal) Act, 2013
Declaration of Independence by Directors
The Independent Non-Executive Directors of the Company, viz. Mr.
Rajendra Prasad Udawat, Dr. Anjila Saxena, Mr. Stephen Carl Viehman and
Mr. Ramesh Chand Jain have affirmed that they continue to meet all the
requirements specified under sub-section (6) of section 149 of
Companies Act, 2013 in respect of their position as an "Independent
Director" of Compucom Software Limited.
Board Evaluation
Clause 49 of the Listing Agreement mandates that the Board shall
monitor and review the Board evaluation framework. The Companies Act,
2013 states that a formal annual evaluations needs to be made by the
Board of its own performance and that of its committees and individual
directors. Schedule IV of the Companies Act, 2013 states that the
performance evaluation of independent directors shall be done by the
entire Board of Directors, excluding the director being evaluated.
The evaluation of all the directors and the Board as a whole was
conducted based on the criteria and framework adopted by the Board. The
evaluation process has been explained in the Corporate Governance
report section in this Annual Report. The Board approved the evaluation
results as collated by the nomination and remuneration committee.
Training of Independent Directors
Every new Independent Director of the Board attends an orientation
program. To familiarize the new inductees with the strategy, operations
and functions of our Company, the executive directors / senior
managerial personnel make presentations to the inductees about the
company's strategy, operations, product and service offerings, markets,
software delivery, organization structure, finance, human resources,
technology, quality, facility and risk management.
The Company has a program to help its directors improve their expertise
in governance held by well -known business schools in any part of the
world.
Further, at the time of appointment of an independent director, the
Company issues a formal letter of appointment outlining his/her role,
function, duties and responsibilities as a director.
Corporate Social Responsibility Committee
As required under Section 135 of Companies Act, 2013 during the year,
the Board of Directors has constituted the Corporate Social
Responsibility(CSR) Committee for formulating and recommending to
Board, a Corporate Social Responsibility policy (CSR Policy) which
shall indicate the activities to be undertaken by the Company as
specified in Schedule VII of the Companies Act, 2013, to recommend the
amount of expenditure to be incurred on the activities and to monitor
the Corporate Social Responsibility Policy of the Company from time to
time.
* The brief outline of the Corporate Social Responsibility (CSR) Policy
of the Company and the initiatives undertaken by the Company on CSR
activities during the year are set out in Annexure III of this report
in the prescribed format of the Companies (Corporate Social
Responsibility Policy) Rules, 2014. The Policy is available on the
website of the Company.
Internal Financial Control Systems
The Company has put in place an adequate system of internal control
commensurate with its size and nature of business. These systems
provide a reasonable assurance in respect of providing financial and
operational information, complying with applicable statutes,
safeguarding of assets of the Company and ensuring compliance with
corporate policies. The Audit Committee reviews adherence to internal
control systems and internal audit reports.
Risk Management
The Board of the Company has formed a risk management committee to
frame, implement and monitor the risk management plan for the Company.
The committee is responsible for reviewing the risk management plan and
ensuring its effectiveness. The audit committee has additional
oversight in the area of financial risk and controls. Major risk
identified by the businesses and functions are systematically addressed
through mitigating action on a continuing basis.
The development and implementation of risk management policy has been
covered in the management discussion and analysis, which forms part of
this report.
Statutory Auditors and Auditors' Report
Pursuant to the provisions of the Section 139 and all other applicable
provisions, if any, of the Companies Act, 2013 and the rules framed
thereunder, as amended from time to time, the Company hereby ratifies
the appointment of M/s S. Misra & Associates, Chartered Accountants
(Firm Registration No. 004972C), as Auditors of the Company to hold
office from the conclusion of this Annual General Meeting till the
conclusion of Twenty-Second AGM of the Company to be held in the year
2016 at such remuneration plus service tax as may be mutually agreed
between the Board of Directors of the Company and the Auditors."
There are no reservations, qualifications or adverse remarks contained
in the auditor's Report attached to the balance sheet as at 31st March,
2015.Information referred in the Auditor's Report isself-explanatory
and does notcall for any further comments.
Secretarial Audit Report
As per Section 204 of Companies Act, 2013 read with Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014,
every Listed Company is required to appoint Secretarial Auditor to
carry out Secretarial Audit of the Company.
In consonance with the requirements of Section 204 of the Companies
Act, 2013 and rules made thereunder,M/s V. M. & Associates, Company
Secretaries in Practice, Jaipur, was appointed to conduct the
secretarial audit of the Company for the financial year 2014-15.
A Secretarial Audit Report issued by M/s V M. & Associates, Company
Secretaries, in respect of the secretarial audit of the Company for the
financial year ended 31st March, 2015, is given in Annexure IV to this
Report.
The Secretarial Audit report for the financial year ended 31st March,
2015 is self explanatory and does not call for any further comments.
The Board has re-appointed M/s V. M. & Associates, Company Secretaries
in Practice, Jaipur as Secretarial Auditor of the Company to carry out
secretarial audit of the Company for the financial year 2015-16.
Internal Audit Report
As per Section 138 of Companies Act, 2013 read with Companies
(Accounts) Rules, 2014, every Listed Company is required to appoint
Internal Auditor to carry out Internal Audit of the Company.
In consonance with the requirements of Section 138 of the Companies
Act, 2013 and rules made thereunder,Mr. Prateek Agarwal, Chartered
Accountant, Jaipur, was appointed to conduct the internal audit of the
Company for the financial year 2014-15.
TheInternal Audit Report issued by Mr. Prateek Agarwal, Chartered
Accountant, in respect of the internal audit of the Company for the
financial year ended 31st March, 2015 is self explanatory and does not
call for any further comments.
The Board has appointed Mr. Girish Kumar Gupta, Chartered Accountant,
Jaipur as an Internal Auditor of the Company to carry out internal
audit of the Company for the financial year 2015-16.
Corporate Governance Report and Management Discussion and Analysis
Report
As per the Clause 49 of the Listing Agreement entered into with the
Stock Exchanges, Corporate Governance Report with a certificate from
auditors of the Company and Management Discussion and Analysis Report
are attached which forms part of this report.
Conservation of Energy, Research & Development, Technology Absorption,
Foreign Exchange and Outgo
Disclosure under Section 134 (3)(m) of Companies Act, 2013read with the
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are given in the Annexure V.
Particulars of Loan, guarantees and investment
The particulars of loan, guarantees and investments have been disclosed
in the financial statements.
Transactions with related parties
Information on transactions with related parties pursuant to Section
134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts)
Rules, 2014 are given in Annexure VI in Form AOC-2 and the same forms
part of this report.
Extract of Annual Return
In accordance with Section 134 (3) (a) of the Companies Act, 2013,an
extract of annual return is given in Annexure VII in the prescribed
Form MGT-9, which forms part of this report.
Particulars of Employees
(A) None of the employees of the company was in receipt of the
remuneration exceeding the limits prescribed u/s 197 (12) read with
rule 5, sub-rule 2 of The Companies (Appointment and Remuneration of
Managerial Personnel) of the Companies Act, 2013 during the year under
review.
(B) The ratio of the remuneration of each director to the median
employee's remuneration and other details in terms of sub-section 12 of
Section 197 of the Companies Act, 2013 read with Rule 5(1) of The
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, are forming part of this report as Annexure-VIII .
Transfer of Unclaimed Dividend to Investor Education and Protection
Fund (IEPF)
The Company has transferred a sum of Rs. 3,96,445/- (Rupees Three Lakhs
Ninety Six Thousand Four Hundred Forty Five only) during the year to
the Investor Education and Protection Fund (IEPF) established by the
Central Government under Section 125 the Companies Act, 2013 The said
amount represents unclaimed dividend pertaining to financial year
2006-07 (Final) and 2007-08 (Interim) which was lying in unpaid
dividend account of the Company for a period of seven years.
Human Resource Management
Your Company draws its strength from a highly engaged and motivated
workforce, whose collective passion and commitment has helped the
organization scale new heights. Human Resource policies and processes
have evolved to stay relevant to the changing demographics, enhance
organizational agility and remain compliant with the changing
regulatory requirements. The company has created a favorable work-
environment that encourages innovation and nurturing of commercial and
managerial talents in its operations.
Trade Relations
The Company maintained healthy, cordial and harmonious Industrial
relations at all levels. The Directors wish to place on record their
appreciation for the valuable contribution by the employees of the
Company.
Quality Assurance
Sustained commitment to the highest levels of quality, best in class
service management and robust information security practices helped the
Company attain the following milestone during the year.
The Company is an ISO 9001:2000 organization, certified by Det Norske
Veritas (DNV) since 1998. These standards enable us to identify risks
at the initial planning stage of the project. The Company firmly
believes in the pursuits of excellence to compete in this emerging and
growing software market. Our focus has been on providing quality
products and services to our customers.
The Company achieved CMMI level-3 certification and continues to
implement the certification quality level in its operation.
Acknowledgement
The Directors take this opportunity to thank all Investors, associates
and business partners, clients, strategic alliance partners, technology
partners, vendors, financial institutions/banks, regulatory and
government authorities, media and stock exchanges, for their continued
support during the year. The Directors place on record their
appreciation of the contribution made by all the employees at all
levels for their dedicated service and continued excellent work
throughout the year.
For and on behalf of the Board
(Surendra Kumar Surana) (Shubh Karan Surana)
Managing Director & CEO Director
(DIN:-00340866) (DIN:- 00341082)
Jaipur,
August 12, 2015
Mar 31, 2014
The Directors have immense pleasure in presenting their 20th Annual
Report on the business and operations of the Company together with
Audited Financial Accounts for the year ended on March 31, 2014.
Financial Results: (Rs. in Lacs)
The highlights of the financial results
for the financial year
2013-2014 are as follows:
Particulars 31.03.2014 31.03.2013
Total Income 7,385.92 7,347.59
Total Expenses 3,968.61 3,768.97
Operating Profit (PBDIT) 3,417.31 3,578.62
Finance Cost 337.28 440.47
Depreciation 1,502.28 1,843.40
Profit before Tax 1577.75 1294.75
Provision for Income Tax including
Deferred Tax 554.04 425.73
Net Profit after Tax 1023.71 869.02
Appropriation
Dividend 316.50 316.50
Dividend Tax 53.79 51.34
Transfer to General Reserve - 100.00
Total Appropriations 370.29 467.84
Earnings per Share: Basic and
Diluted (in Rs.)
Considering Extraordinary Items 1.29 1.10
Without Considering Extraordinary Items 1.29 1.10
Results of Operations:
Total revenues earned during the year amounted to Rs.7385.92 Lacs
compared to that of Rs. 7347.59 Lacs in the previous financial year.
During the year under review, the income from operations was Rs.
7050.36 Lacs compared to Rs. 7127.72 Lacs in the previous financial
year.
This reflects decrease of Rs.77.36 Lacs, which is mainly due to the
decrease of income from Learning Solution business segment. The profit
before tax has increased from Rs. 1294.75 Lacs in the previous
financial year to Rs. 1577.75 Lacs in the current financial year.
The profit before interest, depreciation and tax during this period is
Rs. 3417.31Lacs as compared to the previous financial year PBIDT i.e.
Rs.3578.62 Lacs.
As required by AS- 21, Consolidated Financial Statements are provided
in the later section of the Annual Report.
Business Operations:
(1) Software & E-Governance Services:
During the year, the Company focused on the areas where higher margin
was available with low risk factors. The revenue generated from this
segment during the Financial Year 2013-14 was Rs. 596.35 Lacs as
against Rs. 584.99 Lacs during the last financial year. This reflects
an increase of 1.94 % i.e. Rs. 11.36 Lacs due to growth in the economy
of USA and also marketing strategy adopted by Company. Profit earned
from this segment amount to Rs. 247.47 Lacs as compared to that of
Rs.184.43 Lacs during the previous Financial Year, which has resulted
an increase of 34.18% i.e. Rs. 63.04 Lacs.
(2) Learning Solutions:
During this year revenue from this segment amounted to Rs.6251.23 Lacs
against the last year revenue of Rs.6334.30 Lacs which shows a decrease
in revenue by 1.31% i.e. Rs.83.07Lacs.
Learning Solution Segment mainly comprises ICT Phase I, ICT Phase II,
ICT Phase III, ICT Bihar, CALP I, CALP II, Computer Aided Training
Programme and other projects. The Company has total 8223 Government
Schools and over 2 million learners under its educational Umbrella so
far. These PPP projects could not have been success without the
cooperation extended by Employees, Business Associates, Vendors and
Government Officials. The Company has successfully completed the
education projects, ICT Project Phase-I involving 2292 Government
higher secondary schools in the month of April 2014. The Company has
also successfully completed another education project ICT Phase-II
involving 1550 Government Higher Secondary Schools in Feb. 2014, Apart
from this the other projects that are running successfully are CALP-I
project, worth Rs.10.68 Crores for imparting training in 836 Government
schools of Rajasthan, CALP-II worth Rs.10.41 Crores covers 836
Government schools of Rajasthan most of these projects are in the form
of IT infrastructure development at school levels.
The Company has been awarded one more Project, ICT Project Phase III
worth Rs. 158.50 Crores, for 1373 Government Schools of Rajasthan. It
has been commissioned in the month of Feb. 2014 and will be a five (5)
years BOOT Project.
The Company has massive plans for capturing the advantage of Indian
education expenditure planned through Government of India promoted PPP
models across India fueled by Sarva Shiksha Abhiyan (SSA), Rashtriya
Madhyamik Shiksha Abhiyan (RMSA) and skill development initiatives.
Company is also planning to leverage in-house software development and
satellite based technology skills for expansion in school and coaching
business.
(3) Wind Power Generation:
The Company had set up two wind power generation plants of 1.20 MW at
Jaisalmer (Rajasthan), two at Sikar (Rajasthan) of 1.20 MW & One Plant
at Krishna (Andhra Pradesh) of 0.8 MW. Total wind power generation
capacity is 3.2 MW. The operation and maintenance of all these wind
power project has been out-sourced to M/s Wind World India (previously
known as Enercon India Limited). During the year revenue generated from
this segment amounted to Rs. 202.78 Lacs as compared to Rs. 208.43 Lacs
during the previous year ended on March 31, 2013. Which shows a
decrease in the revenue by 2.71%i.e. Rs. 5.65 Lacs due to lower
generation of units.
(4) Treasury Activities:
The revenue generated from this segment during the Financial Year
2013-14 was Rs. 335.56 Lacs as against Rs. 219.87 Lacs during the last
financial year. During the year, the revenue generated from treasury
operations has increased by 52.62% i.e. Rs. 115.69 Lacs. During the
year most of the funds were invested in FDRs, where returns are lower
but safe in comparison to equity-oriented funds.
The following chart depicts revenue generated from operation for the
year ended March 31, 2014:-
Details of Subsidiary Companies
The Company has two subsidiary Companies:
(A) ITneer Inc. is a wholly owned subsidiary Company of Compucom
Software Limited. It has earned total revenue of US$ 9,76,721 during
the financial year 2013-14 as compared to US$ 7,02,823 in the previous
financial year. This reflects an increase of approx 38.97% i.e. US$
2,73,898. The Company has declared loss of US$ 14,280 as compared to
the profit of US$ 2,115 in the previous financial year. The Company is
operating out of its own premises in Atlanta, USA. It is headed by
Promoter Director Ajay Kumar Surana. The copy of the audited accounts,
together with the independent auditor''s report, is provided in a
separate Section of this Annual Report.
(B) CSL Infomedia Pvt. Ltd. is another subsidiary Company of Compucom
Software Limited. It has earned total revenue of Rs.477.45 Lacs during
the financial year 2013-14 as compared to Rs. 253.60 Lacs in the
previous financial year which shows an increase of 88.26% i.e. Rs.
223.85 Lacs. The Company has declared loss of Rs. 80,99,674 as compared
to the loss of Rs. 91,13,681 in the previous financial year. The
Company is mainly operating multimedia, Content Development and
Education TV Segment. The copy of the audited accounts together with
the independent Auditors Report is provided in a separate section of
this Annual Report. The Company has two TV Channels one "JAN TV",
Satellite TV channel and "JAN TV PLUS", an Infotainment Channel.
Currently it is available on various cable networks across India and
also available live on jantvplus.in
Dividend
Keeping the good financial position of the Company & maintaining
continuous reward to its shareholders, your Directors are pleased to
recommend a dividend @20% i.e. Rs. 0.40/- per Equity share of Rs. 2/-
each for the Financial Year 2013-14, subject to approval of the
shareholders at the ensuing Annual General Meeting.
Financial Year Dividend
Rate
1999-00 20%
2000-01 25%
2001-02 10%
2002-03 25%
2003-04 25%
2004-05 25%
2005-06 30%
2006-07 30%
2007-08** 15%
2008-09*** 10%
2009-10 10%
2010-11**** 15%
2011-12 15%
2012-13 20%
Dividend declared & paid during last 14 (Fourteen) years:
Book Value per Share:
Details of book value during the last 14 (Fourteen) years are as under:
Financial No of Shares Face
Value Book
Value
Year per
share Per
share
(in Rs.)
1999-00 5,00,000 10 42.28
2000-01 5,025,000 10 55.74
2001-02 5,025,000 10 65.60
2002-03 5,025,000 10 69.00
2003-04 5,025,000 10 79.90
2004-05 5,025,000 10 90.79
2005-06 5,025,000 10 98.73
2006-07 5,025,000 10 105.89
2007-08** 25,125,000** 2 (10) 22.79
2008-09*** 502,50,000*** 2 13.10
2009-10 502,50,000 2 14.47
2010-11****7,91,25,188**** 2 12.26
2011-12 7,91,25,188 2 12.97
2012-13 7,91,25,188 2 13.92
2013-14 79125188 2 14.74
**Equity share of face value of Rs.10 each subdivided into equity share
of Face value of Rs. 2/- each. Record date for the same was October 15,
2007.
*** The Company granted bonus issue in the ratio of 1:1. Record date
for the same was December 26, 2008.
****The Company granted bonus issue in the ratio of 1:2. Record date
for the same was October 20, 2010.
**** Preferential issue of 37.50 Lacs Equity shares allotted on
November 4, 2010.
Directors'' Responsibility Statement
Pursuant to Section 217 (2AA) of the Companies Act, 1956, Directors
state therein that:
(a) In the preparation of the annual accounts, the applicable
Accounting Standards have been followed along with proper explanations
and disclosures relating to material departures.
(b) The Directors have selected relevant accounting policies and
applied them 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 on March 31, 2014 and of the profit
of the Company for the period.
(c) The Directors had taken proper and sufficient care 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.
(d) The annual accounts have been prepared on a going concern basis.
Fixed Deposits/Deposits from Public
During the financial year 2013-14, your Company has not accepted any
fixed deposits nor renewed any deposit, falling within the definition
of Section 73, 74 of the Companies Act, 2013.
Listing of Shares
Your Company''s shares are listed at Bombay Stock Exchange, National
Stock Exchange and Calcutta Stock Exchange Limited and the listing fee
for the year 2014-15 has been duly paid.
Board of Directors/Key Managerial Personal and Meetings of Board
Four (4) meetings of Board were held during this financial year.
Appointments:-
Pursuant to the provisions of Section 149 and Rule 3 of Companies
(Appointment and Qualification) Rules, 2014 Company has appointed a
Woman Director, Dr. Anjila Saxena. Pursuant to section 161(1) of the
Companies Act, 2013 and the Articles of Association of the Company, Dr.
Anjila Saxena was also appointed as an Additional Director designated
as an Independent Director w.e.f. August 1, 2014 and she shall hold
office up to the date of the ensuing Annual General Meeting. The
Company has received requisite notice in writing from a member
proposing her for appointment as an Independent Director. In terms of
the Articles of Association of the Company, she meets with the criteria
of independence as prescribed both under sub-section (6) of Section 149
of the Companies Act, 2013 and under Clause 49 of the Listing Agreement
with the Stock Exchanges.
Re-appointments/ Retirements:-
Mr. Ajay Kumar Surana, being eligible for appointment, seeks
re-appointment at the ensuing Annual General Meeting. An appropriate
resolution for his re-appointment is being placed before you for your
approval at the ensuing Annual General Meeting. The brief Resume of the
aforesaid Director and other information has been detailed in the
notice. Your Directors recommend his re-appointment as Directors of
your Company.
Mr. Surendra Kumar Surana, being eligible for appointment, seeks
re-appointment at ensuing Annual General Meeting. Appropriate
resolution for his re-appointment is being placed before you for your
approval at the ensuing Annual General Meeting. The brief Resume of the
aforesaid Director and other information has been detailed in the
notice. Your Directors recommend his re-appointment as Managing
Director/Chief Executive Officer of your Company.
Mr. Ghisa Lal Chaudhary, who ceases at ensuing Annual General Meeting,
does not seek re-appointment.
In view of the provisions of Companies Act, 2013, read with the
provisions of the Listing Agreement, one half of the Directors on the
Board of the Company are required to be independent Director. The
Independent Directors are not being considered for the purpose of
determining the directors liable to retire by rotation. Three of the
existing directors, viz. Mr. Ramesh Chand Jain, Mr. Stephen Carl
Viehman and Mr. Rajendra Prasad Udawat are independent Director. So far
as per the above-referred three independent directors are concerned, at
the ensuing Annual General Meeting of the company they would be
appointed as the Independent Director of the Company for a term of one,
two & two consecutive years respectively commencing from the April 1,
2014.
Disclosures/Declarations
Company has also received the requisite disclosure/declaration from the
entire Directors of Compucom Software Limited as per section 149(6),
164 (2) and 184(1) of Companies Act, 2013.
Corporate Social Responsibility Committee
As required under Section 135 of companies Act, 2013During the year,
the Board of Directors has constituted the Corporate Social
Responsibility(CSR) Committee for formulating and recommending to
Board, a Corporate Social Responsibility policy (CSR Policy) which
shall indicate the activities to be undertaken by the Company as
specified in Schedule VII of the Companies Act, 2013, to recommend the
amount of expenditure to be incurred on the activities and to monitor
the Corporate Social Responsibility Policy of the Company from time to
time
Auditors and Auditors'' Report
M/s S. Misra & Associates, Chartered Accountants, Statutory Auditors of
the Company, retires at the forthcoming Annual General Meeting and have
confirmed their eligibility and willingness to accept the
reappointment, if made, would be within the prescribed limits under
Section 139 of Companies Act, 2013 and that they are not disqualified
for such re- appointment within the meaning of the Act. As per the new
provisions of the Companies Act, 2013 they are being re-appointed for
three years. The Board of Directors in its meeting held on August 1,
2014 has recommended the appointment of M/s S. Misra& Associates as
Statutory Auditors of the Company at the ensuing Annual General
Meeting..
There are no reservations, qualifications or adverse remarks contained
in the auditor''s Report attached to the balance sheet as at 31st March,
2014.Information refereed in the Auditor''s Report are self-explanatory
and don''t call for any further comments.
Cost Audit Report
Pursuant to the Companies (Cost Audit Report) Rules 2011, the Cost
Audit Reports and the Compliance Report for the financial year 2012-13
were filed by the Cost Auditor for electricity on 28th September, 2013
on the Ministry of Corporate Affairs Web Site.
Corporate Governance Report, Management Discussion and Analysis Report
and Corporate Social Responsibility Report
As per the Clause 49 of the Listing Agreement entered into with the
Stock Exchanges, Corporate Governance Report with a certificate from
auditors of the Company and a Management Discussion and Analysis Report
and Corporate Social Responsibility Report are attached which forms
part of this report.
Secretarial Audit Report
As a measure of good corporate governance practice Company has obtained
the Secretarial Compliance Report from M/s. V.M. & Associates for the
financial year ended on 31st March, 2014 as annexed with the annual
report.
In the line with the requirement of section 204 of the Companies Act,
2013 and as recommended by Audit Committee, the Board of Directors of
the Company has appointed M/s. V.M. & Associates, Company Secretaries,
to conduct secretarial audit on compliances of the Company for the
financial year 2014-15.
Conservation of Energy, Research & Development, Technology Absorption,
Foreign Exchange and Outgo
Disclosure under Section 217(1) (e) of Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are given in the Annexure "A".
Particulars of Employees
As required by the provisions of Section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975, no
employee is drawing remuneration at or above the limits mentioned
therein.
Transfer of Unclaimed Dividend to Investor Education and Protection
Fund (IEPF)
The Company has transferred a sum of Rs.1,66,405 (Rupees One Lac Sixty
Six Thousand Four Hundred Five only) during the year to the Investor
Education and Protection Fund (IEPF) established by the Central
Government under Section 205(C) the Companies Act, 1956 The said amount
represents unclaimed dividend pertaining to financial year 2005-06 and
2006-07(Interim) which was lying in unpaid dividend account of the
Company for a period of seven years.
Human Resource Management
Your Company draws its strength from a highly engaged and motivated
workforce, whose collective passion and commitment has helped the
organization scale new heights. Human Resource policies and processes
have evolved to stay relevant to the changing demographics, enhance
organizational agility and remain compliant with the changing
regulatory requirements. The company has created a favorable work-
environment that encourages innovation and nurturing of commercial and
managerial talents in its operations.
TRADE RELATIONS
The Company maintained healthy, cordial and harmonious Industrial
relations at all levels. The Directors wish to place on record their
appreciation for the valuable contribution by the employees of the
Company.
Quality Assurance
Sustained commitment to the highest levels of quality, best in class
service management and robust information security practices helped the
Company attain the following milestone during the year.
The Company is an ISO 9001:2000 organization, certified by Det Norske
Veritas (DNV) since 1998. These standards enable us to identify risks
at the initial planning stage of the project. The Company firmly
believes in the pursuits of excellence to compete in this emerging and
growing software market. Our focus has been on providing quality
products and services to our customers.
The Company achieved CMMI level-3 certification and continues to
implement the certification quality level in its operation.
Acknowledgement
The Directors take this opportunity to thank all Investors, associates
and business partners, clients, strategic alliance partners, technology
partners, vendors, financial institutions/banks, regulatory and
government authorities, media and stock exchanges, for their continued
support during the year. The Directors place on record their
appreciation of the contribution made by all the employees at all
levels for their dedicated service and continued excellent work
throughout the year.
For and on behalf of the Board
Surendra Kumar Surana Shubh Karan Surana
Managing Director & CEO Director
Jaipur
August 1, 2014
Mar 31, 2013
To the Members
The Directors have immense pleasure in presenting their 19th Annual
Report on the business and operations of the Company for the year ended
March 31, 2013.
Financial Results: (Rs. in Lacs)
The highlights of the financial
results for the Financial Year
2012-2013 are as follows:
Particulars 31.03.2013 31.03.2012
Total Income 7,347.59 7,182.65
Total Expenses 3,768.97 2,962.14
Operating Profit (PBDIT) 3,578.6 4,220.51
Interest 440.47 528.30
Depreciation 1,843.40 2,463.16
Profit before Tax 1294.75 1,229.05
Provision for Income Tax
including Deferred Tax 425.73 119.92
Net Profit after Tax 869.02 1,109.13
Appropriation
Dividend 316.50 237.38
Dividend Tax 51.34 38.50
Transfer to General Reserve 100.00 100.00
Total Appropriations 467.84 375.88
Earning per Share: Basic and
Diluted (in Rs.)
Considering Extraordinary Items 1.10 1.40
Without Considering Extraordinary Items 1.10 1.40
Results of Operations:
Total revenues earned during the year amounted to Rs. 7347.59 Lacs
compared to that of Rs. 7182.65 Lacs in the previous Financial Year.
During the year under review, the income from operations was Rs.
7127.72 Lacs compared to Rs. 6995.32 Lacs in the previous Financial
Year. This reflects increase of Rs.132.40 Lacs, which is mainly due to
the increase of income from Learning Solution business segment. The
profit before tax has increased from Rs. 1229.05 Lacs in the previous
Financial Year to Rs. 1294.75 Lacs in the current Financial Year.
The profit before interest, depreciation and tax during this period is
Rs. 3578.62 Lacs as compared to the previous Financial Year PBIDT i.e.
Rs.4220.51 Lacs.
As required by AS- 21, Consolidated Financial Statements are provided
in the later Section of the Annual Report.
Business Operations:
(1) Software & E-Governance Services:
During the year, the Company focused on the areas where higher margin
was available with low risk factors. The revenue generated from this
segment during the Financial Year 2012-13 was Rs. 584.99 Lacs as
against Rs. 695.00 Lacs during the last Financial Year. This reflects a
decrease of 15.83% i.e. Rs. 110.01 Lacs due to successful closure of
JVVNL, Jaipur & Kota Project.
Profit earned from this segment amount to Rs. 184.43 Lacs as compared
to that of Rs. 246.93 Lacs during the previous Financial Year, which
has resulted a decrease of 25.31% i.e. Rs. 62.50 Lacs.
(2) Learning Solutions:
During this year revenue from this segment amounted to Rs. 6334.30 Lacs
against the last year revenue of Rs. 6096.27 Lacs which shows an
increase in revenue by 3.90% i.e. Rs. 238.03 Lacs.
Learning Solution Segment mainly comprises ICT Phase I, ICT Phase II,
ICT Bihar, Delhi School Project, CALP I, CALP II, CATP and other
projects. The Company has total 6850 Govt. Schools and over 2 million
learners under its educational umbrella. The Company has successfully
implemented the two big educational projects, first is ICT
Project-Phase I, involving 2292 Govt. higher secondary schools, going
to complete in the month of June 2013 which has been further extended
upto December 2013. Second educational project completed in December
2012 is Delhi School Project, involving 568 schools. During the year
2012, the Company has been awarded one more project, ICT Bihar worth
Rs. 46.72 Crore, it has 336 Govt. Schools of Bihar. Up to March, 2013
it has been implemented in 300 schools. Further the Company has
witnessed the successful implementation of the Computer Aided Training
Programme, the total project value is 13.85
Crore in 1000 schools.The project has started from December 2012 & will
complete in December 2017. Apart from this the other projects that are
running successfully are CALP-I project, worth Rs. 10.68 crores for
imparting training in 836 Govt. schools of Rajasthan, CALP II worth
Rs.10.41 Crore includes 836 Govt. schools of Rajasthan and ICT Phase II
worth Rs. 77.77 Crore, involving 1550 Govt. higher secondary schools.
The Company has massive plans for capturing the advantage of Indian
education expenditure planned through Govt. of India promoted PPP
models across India fueled by SSA (Sarva Shiksha Abhiyan).
(3) Wind Power Generation:
The Company had set up two wind power generation plants of 1.20 MW at
Jaisalmer (Rajasthan), two at Sikar (Rajasthan) of 1.20 MW & One Plant
at Krishna (Andhra Pradesh) of 0.8 MW. Total wind power generation
capacity is 3.2 MW.The operation and maintenance of all these wind
power project has been out-sourced to M/s Wind World India (previously
known as Enercon India Limited) During the year revenue generated from
this segment amounted to Rs. 208.43 Lacs in the current year as
compared to Rs. 204.05 Lacs during the previous year ended on March 31,
2012. which shows an increase in the revenue by 2.15% i.e. Rs. 4.38
Lacs
(4) Treasury Activities: The revenue generated from this segment during
the Financial Year 2012-13 was Rs. 219.87 Lacs as against Rs. 187.34
Lacs during the last Financial Year. During the year, the revenue
generated from treasury operations has increased by 17.36% i.e. Rs.
32.53 Lacs. During the year most of the funds were invested in FDRs,
where returns are lower but safe in comparison to equity-oriented
funds.
(5) Status of Subsidiary Companies The Company has two subsidiary
Companies:
(A) ITneer, Inc. is a wholly owned subsidiary Company of Compucom
Software Limited. It has earned total revenue of US$ 7,02,823 during
the Financial Year 2012-13 as compared to US$ 6,72,121 in the previous
Financial Year. This reflects an increase of approx 4.57% i.e. US$
30,702. The Company has declared a net profit of US$ 2,115 as compared
to the profit of US$ 11,866 in the previous Financial Year which
reflects a decrease of approx 82.17% i.e. US$ 9,751. The copy of the
audited accounts, together with the independent Auditor''s Report, is
provided in a separate section of this Annual Report.
(B) CSL Infomedia Pvt. Ltd. is another subsidiary Company of Compucom
Software Limited. It has earned total revenue of Rs. 253.60 Lacs during
the Financial Year 2012-13 as compared to Rs. 45.73 Lacs in the
previous Financial Year which shows an increase of 454.56% i.e. Rs.
207.87 Lacs. The Company is mainly operating multimedia, Content
Development and Education TV Segment. The copy of the audited accounts
together with the Independent Auditors Report is provided in a separate
section of this Annual Report.
Dividend
Keeping in view the good financial position of the Company &
maintaining continuous reward to its shareholders, your Directors are
pleased to recommend a dividend @ 20% i.e. Rs. 0.40/- per Equity share
of Rs. 2/- each for the Financial Year 2012-13, subject to approval of
the shareholders at the ensuing Annual General Meeting.
Dividend declared & paid during last 13 (Thirteen) years:
Financial Year Dividend Rate
1999-00 20%
2000-01 25%
2001-02 10%
2002-03 25%
2003-04 25%
2004-05 25%
2005-06 30%
2006-07 30%
2007-08** 15%
2008-09*** 10%
2009-10 10%
2010-11**** 15%
2011-12 15%
Book Value per Share: Details of book value during the last 14
(Fourteen) years are as under:
Financial No of
Shares Face Value Book Value
Year per share Per share
(in Rs.)
1999-00 5,00,000 10 42.28
2000-01 5,025,000 10 55.74
2001-02 5,025,000 10 65.60
2002-03 5,025,000 10 69.00
2003-04 5,025,000 10 79.90
2004-05 5,025,000 10 90.79
2005-06 5,025,000 10 98.73
2006-07 5,025,000 10 105.89
2007-08** 25,125,000** 2 (10) 22.79
2008-09*** 502,50,000*** 2 13.10
2009-10 502,50,000 2 14.47
2010-11
**** 7,91,25,188**** 2 12.26
2011-12 7,91,25,188 2 12.97
2012-13 7,91,25,188 2 13.92
**Equity share of Face Value of Rs.10 each sub-divided into equity
share of Face value of Rs. 2/- each. Record date for the same was
October 15, 2007.
*** The Company granted bonus issue in the ratio of 1:1. Record date
for the same was December 26, 2008.
****The Company granted bonus issue in the ratio of 1:2. Record date
for the same was October 20, 2010.
**** Preferential issue of 37.50 Lacs Equity shares allotted on
November 4, 2010.
Directors'' Responsibility Statement
Pursuant to Section 217 (2AA) of the Companies Act, 1956, Directors
state therein that:
(a) In the preparation of the annual accounts, the applicable
Accounting Standards have been followed along with proper explanations
and disclosures relating to material departures.
(b) The relevant accounting policies are applied consistently and the
directors'' 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 on March 31, 2013 and of the profit of the Company for
the period.
(c) Proper and sufficient care has been taken in 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.
(d) The annual accounts have been prepared on a going concern basis.
Fixed Deposits
During the Financial Year 2012-13, your Company has not accepted any
fixed deposits nor renewed any deposit, falling within the definition
of Section 58A of the Companies Act, 1956.
Board of Directors
In accordance with the Companies Act, 1956 ("the Act") and Articles of
Association of your Company, Mr. Rajendra Prasad Udawat was appointed
as an Additional Director in the Board Meeting held on July 31,
2013.The Board recommends his appointment as a regular Independent
Director of the Company liable to retire by rotation.
Mr. Shubh Karan Surana and Mr. Stephan Carl Viehman, being eligible for
appointment, seek re-appointment at the ensuing AGM. Appropriate
resolutions for their re-appointment are being placed before you for
your approval at the ensuing AGM. The brief Resume of the aforesaid
directors and other information has been detailed in the notice. Your
directors recommend their re-appointment as directors of your Company.
Auditors and Auditors'' Report
M/s S. Misra & Associates, Chartered Accountants, Statutory Auditors of
the Company, retires at the forthcoming Annual General Meeting and have
confirmed their eligibility and willingness to accept the office, if
reappointed. The Board of Directors in its meeting held on July 31,
2013 has recommended the appointment of M/s S. Misra & Associates as
Statutory Auditors of the Company at the ensuing Annual General
Meeting. The Auditors'' Report is self-explanatory and does not call for
further explanation.
Cost Auditor and Cost Audit Report
Pursuant to Section 233B(2) of the Companies Act 1956, and in terms of
the Central Government''s approval the Board of Directors on the
recommendation of the Audit Committee appointed Mr. R. K. Bhandari,
Cost Accountant, as the Cost Auditor of
the Company for the F.Y. 2012-13 under review relating to generation of
electricity. Mr. R. K. Bhandari has confirmed that his appointment is
within the limits of Section 224 (1B) of the Companies Act,1956 and has
certified that he is free from any disqualification specified under
Section 233B(5) read with Section 224 Sub Section (3) or Sub Section
(4) of Section 226 of the Companies Act,1956.
The Audit Committee has also received a certificate from the Cost
Auditor certifying his independence and Arm''s length relationship with
the Company. Pursuant to the Companies (Cost Audit Report) Rules 2011,
the Cost Audit Reports and the Compliance Report for the Financial Year
2011-12 were filed by the Cost Auditor for electricity on February 28,
2013 on the Ministry of Corporate Affairs Website. The due date for
filing the Cost Audit Reports for the Financial Year 2012-13 is
September 30, 2013.
Corporate Governance Report, Management Discussion and Analysis Report
and Corporate Social Responsibility Report
As per the Clause 49 of the Listing Agreement entered into with the
Stock Exchanges, Corporate Governance Report with a certificate from
auditors of the Company and a Management Discussion and Analysis Report
and Corporate Social Responsibility Report are attached and form part
of this report.
Secretarial Compliance Report
As a measure of good corporate governance practice, the Board of
Directors of the Company had appointed V. M. & Associates, Company
Secretaries, to conduct secretarial audit on compliances of the
Company. The Secretarial Compliance Report for the Financial Year ended
on March 31, 2013 is provided in the Annual Report.
Jan TV-A Satellite TV Channel
"Jan TV", Satellite TV channel of Compucom Software Limited''s
subsidiary Company CSL Infomedia Pvt. Ltd. completed one successful
year and celebrated its first anniversary on May 13, 2013. Jan TV has
also started its Bihar/Jharkhand bureau which will focus on local news
from the States of Bihar and Jharkhand.
Our second satellite TV Channel "Jan TV PLUS" (an Infotainment Channel)
has also been launched on March 28, 2013. Currently it is available on
BSNL IPTV Channel No. 173 and on other cable networks in Rajasthan. It
is also available live on
jantvplus.in.
Conservation of Energy, Research & Development, Technology Absorption,
Foreign Exchange and Outgo
Disclosure under Section 217(1)(e) of the Companies Act, 1956, read
with the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules 1988 are given in the Annexure "A".
Particulars of Employees
As required by the provisions of Sub-Section 217(2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees) Rules,
1975, no employee is drawing remuneration at or above the limits
mentioned therein.
Human Resource Management
Compucom Software Limited draws its strength from a highly engaged and
motivated workforce, whose collective passion and commitment has helped
the organization scale new heights. Human Resource policies and
processes have evolved to stay relevant to the changing demographics,
enhance organizational agility and remain compliant with the changing
regulatory requirements. The Company has created a favorable
work-environment that encourages innovation and nurturing of commercial
and managerial talents in its operations.
Quality Assurance
Sustained commitment to the highest levels of quality, best in class
service management and robust information security practices helped the
Company to attain the various milestones.
The Company is an ISO 9001:2000 organization, certified by Det Norske
Veritas (DNV) since 1998. These standards enable us to identify risks
at the initial planning stage of the project. The Company firmly
believes in the pursuits of excellence to compete in this emerging and
growing software market. Our focus has been on providing quality
products and services to our customers.
The Company achieved CMMI level-3 certification and continues to
implement the certification quality level in its operation.
Acknowledgement
The Directors take this opportunity to thank all Investors, associates
and business partners, clients, strategic alliance partners, technology
partners, vendors, financial institutions/banks, regulatory and
government authorities, media and stock exchanges, for their continued
support during the year. The Directors place on record their
appreciation of the contribution made by all the employees at all
levels for their dedicated service and continued excellent work
throughout the year.
For and on behalf of the Board
Surendra Kumar Surana Shubh Karan Surana
Managing Director & CEO Director
Jaipur
July 31, 2013
Mar 31, 2012
The Directors have immense pleasure in presenting their report on the
business and operations of the Company for the year ended March 31,
2012.
Financial highlights:
(Rs. in Lacs)
The highlights of the financial results for the financial year
2011-2012 are as follows:
Particulars 31.03.2012 31.03.2011
Total Income 7,182.65 7,286.97
Total Expenses 2,962.14 3,138.28
Operating Profit (PBDIT) 4,220.51 4,148.69
Interest 528.30 488.29
Depreciation 2,463.16 2,125.71
Profit before Tax 1,229.05 1,534.69
Provision for Income Tax
including Deferred Tax 119.92 331.87
Net Profit after Tax 1,109.13 1,202.82
Appropriation
Dividend 237.38 237.38
Dividend Tax 38.50 39.42
Transfer to General Reserve 100.00 100.00
Total Appropriations 375.88 376.80
Earning per Share: Basic and
Diluted (in Rs.)
Considering Extraordinary Items 1.40 1.56
Without Considering Extraordinary Items 1.40 1.56
Results of operations : Total revenues earned during the year amounted
to Rs. 7,182.65 Lacs compared to that of Rs. 7,286.97 Lacs in the
previous Financial Year. The profit before tax has Decreased from Rs.
1,534.69 Lacs in the previous financial year to Rs. 1,229.05 Lacs in
the current financial year. During the year under review, the income
from operations was Rs. 6,995.32 Lacs compared to Rs. 7,102.49 Lacs in
the previous financial year. This reflects decrease of Rs.107.17 Lacs,
which is mainly due to the decrease in income from learning solution
business segment.
The profit before interest, depreciation and tax during this period is
Rs. 4,220.51 Lacs as compared to the previous financial year PBIDT i.e.
Rs.4,148.69 Lacs.
As required by AS-21, Consolidated Financial Statements are provided in
the later Section of the Annual Report.
Business Review
(1) Learning Solutions:
During this year revenue from this segment amounted to Rs. 6,096.27
Lacs against the last year revenue of Rs.6,107.62 Lacs which shows a
decrease in revenue by Rs.11.35 Lacs i.e. 0.19%.
Learning Solution Segment mainly comprises ICT Phase I, ICT Phase II,
ICT Bihar, Delhi School Project, CALP I, CALP II. The Company has total
6418 Govt. Schools and 2 million learners under its educational
Umbrella. The Company has so far successfully implemented various
educational projects viz. ICT Phase-I worth Rs. 141 Crores involving
2292 Govt. Higher Secondary Schools, ICT Phase II worth Rs. 77.77
Crores involving 1550 Govt. Higher Secondary Schools, Delhi School
project worth Rs. 14.82 Crores involving 568 schools. Out of these
projects, the ICT Phase I and Delhi Project got completed in June 2012.
However the Govt. of Rajasthan has extended ICT Phase I project for
further 1 year i.e. upto June 30, 2013. During the year 2012 the
company has bagged one more project of ICT from Govt. of Bihar worth
Rs. 46.71 Crores involving 336 Schools. Further the company has
successfully implemented CALP-I and CALP-II projects in 836 Primary
Schools each worth RS. 10.68 Crores and Rs. 10.41 Crores respectively.
All the above projects are running successfully.
The Company has massive plans for capturing the advantage of Indian
education expenditure planned through Govt. of India promoted PPP model
across India fueled by SSA (Sarva Shiksha Abhiyan).
(2) Software & E-Governance Services: During the year, the Company
focused on the areas where higher margin was available with low risk
factors. The revenue generated from this segment during the Financial
Year 2011-12 was Rs. 695.00 Lacs as against Rs. 804.04 Lacs during the
last Financial Year. This reflects a decrease of 13.56 % i.e. Rs.
109.04 Lacs due to lower spending by the Govt. Deptt.& fear of
recession.
Profit earned from this segment amounts to Rs. 246.93 Lacs as compared
to that of Rs. 358.52 Lacs during the previous Financial Year, which
has resulted a decrease of 31.13%. The ratio of the segmental profit to
the segmental revenue has decreased by 9.07% from 44.59% to 35.52% as
compared to the previous Financial Year.
Your Company has been awarded the contract by JdVVNL for "Providing
Manpower for Operation of Customer Care Center under R-APDRP at
Jodhpur" for 3 years which has valuation of Rs. 3.02 Crores approx. We
have started the operations under this project w.e.f. January 2012. The
JVVNL project for Jaipur and Kota cities, which expired on April 30,
2012 has been extended by the department for further 1 year i.e. up to
April 30, 2013. JVVNL has also given an increase of 18% on the overall
rates for executing this project for this extended period of 1 year.
Under this project your Company has to provide the call center, fault
rectification and CSC (Customer Service Centre) services and we are
pleased to announce that we are successfully running the project. The
project with JdVVNL for providing IT enabled call center services at
Bikaner City has been successfully completed in February 2012.
(3) Wind Power Generation:
The Company had set up two wind power generation plants of 1.20 MW at
Jaisalmer (Rajasthan), two at Sikar (Rajasthan) of 1.20 MW & One Plant
at Krishna (Andhra Pradesh) of 0.8 MW. Total wind power generation
capacity is 3.2 MW.The operation and maintenance of all these wind
power project has been out-sourced to M/s Enercon India Ltd.. During
the year revenue generated from this segment amounted to Rs.204.05 Lacs
in the current year as compared to Rs. 190.83 Lacs during the previous
year ended on March 31, 2011.which shows an increase in the revenue by
Rs. 13.22 Lacs i.e. 6.93%.
(4) Treasury Activities:
Treasury income includes capital gains, dividends from mutual funds and
equity shares, interest on FDRs etc. During the year, the revenue
generated from treasury operations has increased by Rs. 2.86 Lacs
mainly due to increase in interest income on FDRs. During the year
most of the funds was invested in FDRs, where returns are lower but
safe in comparison to equity-oriented funds.
(5) Subsidiary Companies: The Company has two subsidiary Companies:
(a) ITneer, Inc. is a wholly owned subsidiary Company of Compucom
Software Limited. It has earned total revenue of US$ 6,72,121 during
the Financial Year 2011-12. This reflects an increase of approx 56.85%
as compared to the previous Financial Year. The Company has declared a
net profit of US$ 11,866 as compared to the Profit of US$ 6,428 in the
previous Financial Year. The copy of the audited accounts, together
with the Independent Auditor's Report, is provided in a separate
section of this Annual Report.
(b) CSL Infomedia Pvt. Ltd. is another subsidiary Company of Compucom
Software Limited. It has earned total revenue of Rs. 45.73 Lacs during
the Financial Year 2011-12. The Company is mainly operating multimedia,
Content Development and Education TV Segment. The copy of the audited
accounts together with the Independent Auditor's Report is provided in
a separate section of this Annual Report.
Employee Stock Options :
In 1999, the Company issued 1,00,000 Equity Shares of Rs. 10/- face
value at par to Compucom Software Limited Employee Welfare Trust for
the benefit of the employees and created a stock option plan. These
shares have been irrevocably granted to the trust and are used for the
benefit of the employees. As on March 31, 2012 the Trust has the
ownership of 30,18,579 unutilized shares. During the Financial Year
2011-12, the Company has not issued fresh stock options.
Directors' Responsibility Statement :
Pursuant to Section 217 (2AA) of the Companies Act, 1956, Directors
state therein that:
(a) In the preparation of the annual accounts, the applicable
Accounting Standards have been followed along with proper explanations
and disclosures relating to material departures.
(b) The relevant accounting policies are applied consistently and the
directors 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 on March 31, 2012 and of the profit of the Company for
the period.
(c) Proper and sufficient care has been taken in 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.
(d) The annual accounts have been prepared on a going concern basis.
Dividend :
Keeping the very good financial position of the Company & maintaining
continuous reward to its shareholders, your Directors are pleased to
recommend a dividend @15% i.e. Rs. 0.30/- per Equity share of Rs. 2/-
each for the Financial Year 2011-12, subject to approval of the
shareholders at the ensuing Annual General Meeting,
Dividend declared & paid during last 12 (Twelve) years
Financial Year Dividend Rate
1999-00 20%
2000-01 25%
2001-02 10%
2002-03 25%
2003-04 25%
2004-05 25%
2005-06 30%
2006-07 30%
2007-08** 15%
2008-09*** 10%
2009-10 10%
2010-11**** 15%
Book Value Per Share: Details of book value during the l
Financial No of Shares Face Value Book Value
Year per share Per share
(in Rs.)
1999-00 5,000,000 10 42.28
2000-01 5,025,000 10 55.74
2001-02 5,025,000 10 65.60
2002-03 5,025,000 10 69.00
2003-04 5,025,000 10 79.90
2004-05 5,025,000 10 90.79
2005-06 5,025,000 10 98.73
2006-07 5,025,000 10 105.89
2007-08** 25,125,000** 2(10) 22.79
2008-09*** 502,50,000*** 2 13.10
2009-10 502,50,000 2 14.47
2010-11**** 7,91,25,188**** 2 12.26
2011-2012 7,91,25,188 2 12.97
**Equity share of face value of Rs.10 each subdivided into equity share
of Face value of Rs. 2/- each. Record date for the same was October 15,
2007.
*** The Company granted bonus issue in the ratio of 1:1. Record date
for the same was December 26, 2008.
****The Company granted bonus issue in the ratio of 1:2. Record date
for the same was October 20, 2010.
**** Preferential issue of 37.50 Lacs Equity shares allotted on
November 4, 2010.
Fixed Deposits :
During the Financial Year 2011-12, your Company has not accepted any
fixed deposits nor renewed any deposit, falling within the definition
of Section 58A of the Companies Act, 1956.
Awards &Achievement :
During the Financial year 2011-12, your Company has been honoured by
the Govt. of Rajasthan. The Chief Minister, Govt. of Rajasthan has
conferred Excellence award for IT Export, Education and E-Governance.
The award was given on January 18, 2012.
Inauguration of Jan TV -A Satellite TV Channel :
"Jan TV" , Satellite TV channel of Compucom Software Limited's
subsidiary Company CSL Infomedia (P) Ltd., was inaugurated by Shri
Ashok Gehlot, Chief Minister of Rajasthan on May 13, 2012.
On this occasion, Chief Minister praised the efforts of Compucom, to
bring innovations in education sector. He wished that Jan TV would
become vehicle of transformation in Education, Employment,
Entertainment and News.
Elaborating about plans for Jan TV, Director of CSL Infomedia, Shri
S.K. Surana said that Jan TV will have 2 Million Eye Balls
for which constructive programs like Computer Classes, Campus News,
Employment Opportunities, Satellite Education, would provide value
additions in the life of people of rural India.
Other Dignitaries who graced the occasion were Shri. Jitendra Singh
(Minister of Information and Public Relations, Govt. of Rajasthan),
Smt. Naseem Akhthar Insaaf (State Minister of Education, Govt. of
Rajasthan) and Shri Ghanshyam Tiwari (Deputy Leader-Opposition and Ex.
Education Minister, Govt. of Rajasthan)
Besides this, Officials from various Govt. Departments, RIICO,
Journalists, Educationists and Artists were present.
Jan TV is available across India on Reliance Big TV DTH on channel no.
422 and BSNL IPTV Channel No. 174. It is also available with local
cable operators who have signed-up with the Company and across the
globe through its portal www.jantv.in.
Jan TV will use satellite technology to augment its Educational
initiatives and focus on Employment Generation and Skill Development
areas specially targeting Rural and Semi-urban Population.
Company also plans to cater needs of Agricultural, Healthcare and
Tourism programs to cover wider section of society through its TV
Channel.
Compucom Software Limited, apart from IT Software, Education,
E-Governance is working towards establishing its strong mark in
Satellite Education, Media Services, Non-Conventional Energy and
Tutorial Services.
Board of Directors :
In accordance with the Companies Act, 1956 ("the Act") and Articles of
Association of your Company, Mr. Ramesh Chand Jain was appointed as an
Additional Director in the Board Meeting held on August 1, 2012. The
Board recommends his appointment as a regular Independent Director of
the Company, liable to retire by rotation.
Dr. Anjila Saxena and Mr. Rajendra Prasad Udawat, Directors of the
Company are liable to retire by rotation.The Board places on record
their valuable contribution made by them during their tenure as an
Independent Director of the Company.
Listing of Equity Shares at NSE :
During the Financial Year 11-12, the Equity shares of Compucom Software
Limited have been admitted for trading at National Stock Exchange of
India Limited (NSE) w.e.f. March 2, 2012.
The NSE symbol is: COMPUSOFT & Series is : EQ.
Forfeiture of Warrants :
During the year 2010-11 the Company had issued Twenty Five Lacs
(25,00,000) convertible warrants to Promoter Group Company (Compucom
Technologies Private Limited), which have been forfeited on May 3, 2012
due to non exercising the option for conversion & the application money
of Rs. 1,58,50,000/- (Rupees One Crore Fifty Eight Lacs & Fifty
Thousand) deposited by Compucom Technologies Private Limited at time of
allotment of warrants, forfeited and transferred to Capital Reserve.
Auditors and Auditors' Report :
M/s S.Misra & Associates, Chartered Accountants, Statutory Auditors of
the Company, retires at the forthcoming Annual General Meeting and have
confirmed their eligibility and willingness to accept the office, if
reappointed. The Board of Directors in its meeting held on August 1,
2012 has recommended the appointment of M/s S. Misra & Associates as
Statutory Auditors of the Company at the ensuing Annual General
Meeting.
The Auditors' Report is self-explanatory and does not call for further
explanation.
Conservation of Energy, Research & Development, Technology Absorption,
Foreign Exchange and Outgo :
Disclosure under Section 217(1)(e) of the Companies Act, 1956, read
with the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules 1988 are given in the Annexure "A".
Particulars of Employees :
As required by the provisions of Sub-Section 217(2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees) Rules,
1975, no employee is drawing remuneration at or above the limits
mentioned therein.
Human Resource Management and Employee Relation :
Employees are vital assets of the Company. The Company has created a
favorable work-environment that encourages innovation and nurturing of
commercial and managerial talents in its operations. The Company also
provides sharing of ownership of the Company through employee stock
option scheme, wherein stock options are granted based on the cadre of
the employees and the policy prevailing in the organization. The
Company continues to have cordial relation with its employees.
Quality Assurance :
Your Company is an ISO 9001:2000 organization, certified by Det Norske
Veritas (DNV) since 1998. These standards enable us to identify risks
at the initial planning stage of the project. The Company firmly
believes in the pursuits of excellence to compete in this emerging and
growing software market. Our focus has been on providing quality
products and services to our customers.
Your Company achieved CMMI level-3 certification and continues to
implement the certification quality level in its operation. Corporate
Governance :
A report on Corporate Governance, along with a certificate from
auditors of the Company, regarding the Compliance of condition of
Corporate Governance, as also the Management Discussion and Analysis
Report as stipulated under Clause 49 of the Listing Agreement are
annexed to this report.
Secretarial Compliance Report :
As a measure of good corporate governance practice, the Board of
Directors of the Company had appointed V.M.& Associates,
Company Secretaries, to conduct secretarial audit on compliances of the
Company. The Secretarial Compliance Report for the financial year ended
on March 31, 2012 is provided in the annual report.
Acknowledgement :
The Directors take this opportunity to thank all Investors, associates
and business partners, clients, strategic alliance partners, technology
partners, vendors, financial institutions/banks, regulatory and
government authorities, media and stock exchanges for their continued
support during the year. The Directors place on record their
appreciation of the contribution made by all the employees at all
levels for their dedicated service and continued excellent work
throughout the year.
For and on behalf of the Board
Surendra Kumar Surana Shubh Karan Surana
Managing Director & CEO Director
Jaipur
August 1, 2012
Mar 31, 2011
Directors' Report to the Members
The Directors have immense pleasure in presenting their report on the
business and operations of the Company for the year ended March 31,
2011.
Financial Highlights : (Rs. in Lacs)
The highlights of your Company's financial results for the financial
year April 1, 2010 to March 31, 2011 are as follows:
Particulars 31.03.2011 31.03.2010
Total Income 7,286.97 6079.38
Total Expenses 3,138.28 2812.87
Operating Profit (PBDIT) 4,148.69 3266.51
Interest 488.29 502.80
Depreciation 2,125.71 1645.54
Profit before Tax 1,534.69 1118.17
Provision for Income Tax including
Deferred Tax 331.87 190.59
Net Profit after Tax 1,202.82 927.58
Appropriation
Dividend 237.38 100.50
Dividend Tax 39.42 17.08
Transfer to General Reserve 100.00 100.00
Total Appropriations 376.80 217.58
Earning per Share: Basic and Diluted (in Rs.)
Considering Extraordinary Items 1.56 1.23
Without Considering Extraordinary Items 1.56 1.23
Results of Operations : Total revenues earned during the year amounted
to Rs. 7,286.97 Lacs compared to that of Rs. 6,079.38 Lacs in the
previous Financial Year. The profit before tax has increased from Rs.
1,118.17 Lacs in the previous Financial Year to Rs. 1,534.69 Lacs in
the current Financial Year. During the year under review, the income
from operations was Rs. 7,102.49 Lacs compared to Rs. 5,943.16 Lacs in
the previous Financial Year. This reflects an increase of Rs.1,159.33
Lacs, which is mainly due to the increase of income from learning
solution business segment.
The profit before interest, depreciation and tax during this period is
Rs. 4,148.69 Lacs as compared to the previous Financial Year PBIDT i.e.
Rs. 3,266.51 Lacs.
As required by AS- 21, Consolidated Financial Statements are provided
in the later section of the Annual Report.
Business Review :
(1) Software & E-Governance Services : During the year, the Company
focused on domestic Software services and E-Governance opportunities,
looking at the bleak scenario in USA. The revenue generated from the
software segment during the Financial Year 2010-11 was Rs. 804.04 Lacs
as against Rs. 985.24 Lacs during the last Financial Year. This reflect
a decrease of 18.39 % i.e. Rs. 181.20 Lacs. Decline in the overseas
business is due to slowdown in US Economy.
Profit earned from this segment amount to Rs. 358.52 Lacs as compared
to that of Rs. 477.95 Lacs during the previous Financial Year, which
has resulted a decrease of 25%. The ratio of the segmental profit to
the segmental revenue has decreased by 3.92 % from 48.51% to 44.59% as
compared to the previous Financial Year.
During the year end, JdVVNL has further extended their contract for
providing and operating IT enabled call center services at Bikaner city
for the next six months up to December 31, 2011 or till the
finalization of the new tender. JdVVNL has recently issued LOI to the
Company for "Providing Manpower for operation of Customer Care Centre
under R-APDRP at Jodhpur" and agreement for the same has been signed
with JdVVNL. This is a 3(Three) year project and total valuation of the
project is approx. Rs. 3.02 Crores. Compucom is also executing the
JVVNL order on BOOT basis of contract value of Rs. 11.38 Crores in
Jaipur city and at Kota city value of Rs. 4.81 Crores. Under this
contract your Company is providing the call center, fault rectification
and CSC services, which are running successfully and widely
appreciated.
(2) Learning Solutions : Company now has 6082 schools and 2 million
learners under its educational umbrella. The Company is successfully
implementing the two big educational projects, first is ICT Project by
secondary education department, Govt. of Rajasthan for providing
computer education on BOOT basis in 2292 schools of Rajasthan. The
second project is an IT Project on BOOT basis in 568 Government schools
of Delhi. Company has witnessed the successful implementation of the
Computer Aided Learning Program (CALP) project for imparting training
in 836 Govt. schools of Rajasthan worth Rs.10.68 Crores. We are
pleased to inform you that during the year under review your Company
has successfully implemented ICT-II project in 1550 Schools worth Rs.
77.77 Crores and CALP II project in 836 Schools worth Rs. 10.41 Crores.
The Company has massive plans for capturing the advantage of Indian
education expenditure planned through Govt. of India promoted PPP model
across India fueled by SSA (Sarva Shiksha Abhiyan).
During the year under review revenue generated from learning solution
business amounts to Rs. 6107.62 Lacs while the revenue generated in the
previous Financial Year was Rs. 4761.16 Lacs, reflecting an increase of
Rs. 1346.46 Lacs i.e. 28.28%. The increase is mainly due to execution
of ICT II and CALP II projects of Govt. of Rajasthan. Profit earned
from this segment has increased by 107.37 % to Rs. 927.47 Lacs in
comparison to Rs. 447.25 Lacs in the previous Financial Year, which is
mainly due to execution of high profit margin projects like new
ICT/CALP II projects. In terms of ratio of segment profit to segment
revenue it has increased to 15.19 %. Profit generated from this segment
is 59.81% as compared to 38.69% of the previous Financial Year.
(3) Wind Power Generation : The Company owns four wind power generation
plants of 0.60 MW each, two at Jaisalmer and two at Sikar in Rajasthan.
Company also owns a 0.8 MW Plant at Krishna (Andhra Pradesh). The
Company has total installed Wind Power capacity of 3.2 MW. The
operation and maintenance of the wind power project has been out-
sourced to Enercon India Ltd. The revenue generated from this segment
amounted to Rs. 190.83 Lacs in the current year as compared to Rs.
196.76 Lacs during the previous year ended on March 31, 2010.
(4) Treasury Activities : Treasury income includes capital gains,
dividends from mutual funds and equity shares, interest on FDRs etc.
During the year, the revenue generated from treasury operations has
increased by Rs. 48.26 Lacs mainly due to increase in interest income
on FDRs. During the year most of the funds were invested in FDRs, where
returns were lower but safe in comparison to equity-oriented funds.
(5) Subsidiary Companies :
(a) ITneer Inc. is a wholly owned subsidiary of Compucom Software
Limited. It has earned total revenue of US$ 4,28,492 during the
Financial Year 2010-11. This reflects a decrease of approx. 27.36% as
compared to the previous Financial Year. The Company has declared a net
profit of US$ 6,428 as compared to the loss of US$ 15,848 in the
previous Financial Year. The copy of the audited accounts together with
the independent Auditors' Report is provided in a separate section of
this Annual Report.
(b) CSL Infomedia Pvt. Ltd. is another subsidiary of Compucom Software
Limited. It has earned total revenue of Rs. 24.55 Lacs during the
Financial Year 2010-11. The Company is mainly operating in Multimedia,
Content Development and Educational TV Segment. The copy of the audited
accounts together with the independent Auditors' Report is provided in
a separate section of this Annual Report.
Employee Stock Options :
In 1999, the Company issued 1,00,000 Equity Shares of Rs. 10/- face
value at par to Compucom Software Limited Employee Welfare Trust for
the benefit of the employees and created a stock option plan. These
shares have been irrevocably granted to the trust and are used for the
benefit of the employees. As on March 31, 2011 the Trust has the
ownership of 30,16,529 unutilized shares.
During the Financial Year 2010-11, the Company has not issued fresh
stock options.
Directors' Responsibility Statement : Pursuant to Section 217 (2AA) of
the Companies Act, 1956, Directors state therein that:
(a) In the preparation of the annual accounts, the applicable
Accounting Standards have been followed along with proper explanations
and disclosures relating to material departures.
(b) The relevant accounting policies are applied consistently and the
directors' 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 on March 31, 2011 and of the profit of the Company for
the period.
(c) Proper and sufficient care has been taken in 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.
(d) The annual accounts have been prepared on a going concern basis.
Dividend : In view of the Company's profitable performance, your
Directors are pleased to recommend, for approval of the Members at
ensuing Annual General Meeting, a dividend @15% i.e. Rs. 0.30/- per
equity share of Rs. 2/- each for the Financial Year 2010-2011.
Dividend declared & paid during last 11 (Eleven) years
Financial Year Dividend Rate
1999-00 20%
2000-01 25%
2001-02 10%
2002-03 25%
2003-04 25%
2004-05 25%
2005-06 30%
2006-07 30%
2007-08** 15%
2008-09*** 10%
2009-10 10%
Book Value per Share : Details of book value during the last 12
(Twelve) years is as under:
Financial No. of Shares Face Value Book Value
Year per share Per share
(in Rs.)
1999-00 5,000,000 10 42.28
2000-01 5,025,000 10 55.74
2001-02 5,025,000 10 65.60
2002-03 5,025,000 10 69.00
2003-04 5,025,000 10 79.90
2004-05 5,025,000 10 90.79
2005-06 5,025,000 10 98.73
2006-07 5,025,000 10 105.89
2007-08** 25,125,000 2 (10) 22.79
2008-09*** 502,50,000 2 13.10
2009-10 502,50,000 2 14.47
2010-11**** 7,91,25,188 2 12.26
**Equity share of face value of Rs. 10 each subdivided into equity
share of Face value of Rs. 2/- each. Record date for the same was
October 15, 2007.
*** The Company granted bonus issue in the ratio of 1:1. Record date
for the same was December 26, 2008.
****The Company granted bonus issue in the ratio of 1:2. Record date
for the same was October 20, 2010.
**** Preferential issue of 37.50 Lacs Equity shares allotted on
November 4, 2010.
Fixed Deposits : During the Financial Year 2010-11, your Company had
not accepted any fixed deposits nor renewed any deposit, falling within
the definition of Section 58 A of the Companies Act, 1956.
Awards : The Govt. of Rajasthan has communicated that Company has been
selected for Excellence Award for Export Performance during the
Financial Year 2008-09.
Board of Directors : In accordance with the provisions of Articles of
Association of your Company, Mr. Ajay Kumar Surana and Mr. Rajeev
Sogani, Directors of the Company retire by rotation. Mr. Ajay Kumar
Surana being eligible offer himself for reappointment. The Board
recommends the reappointment of Mr. Ajay Kumar Surana. Mr. G. L.
Chaudhary was appointed as an Additional Director in the Board Meeting
held on August 9, 2011, sought to be appointed as a Director of the
Company. The Board recommends the appointment of Mr. G. L. Chaudhary as
a Director of the Company.
Issue of Bonus Shares : During the Financial Year 2010-11, the Company
had rewarded the shareholders by allotting bonus shares in the ratio of
1:2 and made an allotment of 2,51,25,188 bonus shares of Rs. 2/- (two)
each, to the eligible shareholders of the Company in the Board Meeting
held on October 21, 2010. The said Bonus issue was recommended by the
Board on July 31, 2010 and approved by the shareholders in the Annual
General Meeting held on September 18, 2010. Record date for the same
was October 20, 2010.
Preferential Issue : During the Financial Year 2010-11, the Board
issued 25,00,000 convertible warrants and 37,50,000 Equity Shares of
Rs. 2/- each, at an exercise price of Rs. 25.36/- in the Board Meeting
held on November 4, 2010 as per the Special Resolution passed by the
Company in its Extra Ordinary General Meeting held on October 25, 2010,
to the following allottees:
S.
No. NAME OF ALLOTTEE NO. OF EQUITY NO. OF CONVERTIBLE
SHARES ALLOTTED WARRANTS ALLOTTED
1. Compucom Technologies Pvt. Ltd.
(Promoter) 7,50,000 25,00,000
2. Rukmani Sales Pvt. Ltd.
(Non-Promoter) 30,00,000 -
Total 37,50,000 25,00,000
In-Principle Approval for the same was received from Bombay Stock
Exchange Ltd. on October 22, 2010. The above equity shares have been
listed on BSE on April 11, 2011 & trading approval has been received on
May 5, 2011.
Strategic Investment in Educational Broadcasting, T.V., Entertainment &
Media Segments : The Company made strategic investment of Rs. 3.25
Crores in the form of equity shares at par in CSL Infomedia Pvt. Ltd.,
making it a subsidiary , to venture into Educational, Television,
Entertainment and Media segments.
Auditors and Auditors' Report : M/s S. Misra & Associates, Chartered
Accountants, Statutory Auditors of the Company, retires at the
forthcoming Annual General Meeting and confirmed their eligibility and
willingness to accept the office, if reappointed. The Board of
Directors in its meeting on August 9, 2011 has recommended the
appointment of M/s S. Misra & Associates as Statutory Auditors of the
Company at the ensuing Annual General Meeting. The Auditors' Report is
self-explanatory and does not call for further explanation.
Conservation Of Energy, Research & Development, Technology Absorption,
Foreign Exchange Outgo : Disclosure under Section 217(1)(e) of the
Companies Act, 1956, read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules 1988 are given in the
Annexure "A".
Particulars of Employees : As required by the provisions of Sub-Section
217(2A) of the Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975, no employee had drawn
remuneration at or above the limits mentioned therein.
Human Resource Management and Employee Relation : Employees are vital
assets of the Company. The Company has created a favorable
work-environment that encourages innovation and nurturing of commercial
and managerial talents in its operations. The Company also provides
sharing of ownership of the Company through employee stock option
scheme, wherein stock options are granted based on the cadre of the
employees and the policy prevailing in the organization. The Company
continues to have cordial relation with its employees.
Quality Assurance : Your Company is an ISO 9001:2000 organization,
certified by Det Norske Veritas (DNV) since 1998. These standards
enable us to identify risks at the initial planning stage of the
project. The Company firmly believes in the pursuits of excellence to
compete in this emerging and growing software market. Our focus has
been on providing quality products and services to our customers.
Your Company achieved CMMI level-3 certification and continues to
implement the certification quality level in its operations.
Corporate Governance : As required under the Listing Agreement with the
Stock Exchange, a report on Corporate Governance is given in a separate
section in this Annual Report.
Acknowledgements : The directors sincerely appreciate the contributions
made by all the employees, associates and business partners who have
contributed towards the success of the Company. The directors are also
thankful for the cooperation, support and assistance received from
banks, investors, customers, central and state government departments,
local authorities, vendors, strategic alliance partners, stock
exchanges and all others associated with the activities of the Company.
For and on behalf of the Board
Surendra Kumar Surana R.P. Udawat
Managing Director & CEO Director
Jaipur, August 9, 2011
Mar 31, 2010
The Directors have the pleasure in presenting their report on the
business and operation of the Company for the year ended on 31st March
2010
FINANCIAL RESULTS: (Rs. in Lacs)
Particulars 31.03.2010 31.03.2009
Total Income 6079.38 5198.16
Total Expenses 2812.87 2746.18
Operating Profit (PBDIT) 3266.51 2451.98
Interest 502.80 229.13
Depreciation 1645.54 997.44
Profit Before Tax 1118.17 1225.41
Provision for Income Tax including
Deferred Tax 190.59 373.13
Net Profit after Tax 927.58 852.28
Appropriation
Dividend 100.50 100.50
Dividend Tax 17.08 17.08
Transfer to General Reserve 100.00 100.00
Total Appropriations 217.58 217.58
Earning per Share: Basic and Diluted (in Rs.)
Considering Extra Ordinary Item 1.85 2.69
Without Considering Extraordinary Items 1.85 2.69
Results of Operation - Total revenues earned during the year amounted
to Rs. 6079.38 lacs compared to that of Rs. 5198.16 lacs in the
previous financial year. The Profit before tax has decreased from Rs.
1225.41 lacs in the previous financial year to Rs. 1118.17 lacs in the
current financial year. During the year under review, the income from
operation was Rs. 5943.16 lacs compared to Rs. 4819.79 lacs in the
previous financial year. This reflects an increase of Rs. 1123.37 lacs,
which is mainly due to the increase of income from learning solution
business segment.
The Profit before interest, depreciation and tax during this period was
Rs. 3266.51 lacs as compared to the previous financial year PBIDT i.e.
Rs. 2451.98 lacs.
As required by AS-21, Consolidated Financial Statements are provided in
the later section of the annual report.
Business Review
(1) Software Services : During the year under report the company
focused on the areas where higher margin were available with Low risk
factors. The revenue generated from the software segment during the
financial year 2009- 10 was Rs. 985.24 lacs as against Rs. 974.03 lacs
during the last Financial Year. This reflect an increase of 1.15% i.e.
Rs. 11.21 lacs.
Profit earned from this segment amount to Rs. 477.94 lacs as compared
to that of Rs. 301.92 lacs during the previous financial Year, which
has resulted an increase of 58.29%. The ratio of the segmental profit
to the segmental revenue has increased by 18.51% from 30.00% to 48.51%
as compared to the previous financial year.
During the year end JdVVNL has further extended their contract for
providing and operating IT enabled call center services at Bikaner city
for the next six months upto 31st December 2010 or till the
finalization of the new tender for which the company is also applied.
Compucom is also executing the JVVNL order on BOOT basis of contract
value worth 11.38 Crores in Jaipur city and at Kota city value worth
4.81 Crores. Under this contract your company has to provide the call
center, fault rectification and CSC services and we are pleased to
announce that we are successfully running the project.
(2) ITneer Inc., USA : ITneer Inc. is a wholly owned subsidiary of
Compucom Software Limited. It has earned total revenue of US$ 589847
during the financial year 2009-10. This reflects a decrease of approx
40.92% as compared to the previous financial year. The company has
declared a net loss of US$ 14120 as compared to the profit of US$ 9160
in the previous financial year. The copy of the audited accounts,
together with the independent auditors report, is provided in a
separate section of this annual report. The decrease in the net profit
was mainly due to the slow down in the US economy.
(3) Learning Solution : During the year under report the company has
witnessed the successful closure of the FMS and GRACE Project of
RAJCOMP. The company is successfully implementing the two big
educational projects, first is ICT Project by secondary education
department, Govt. of Rajasthan for providing computer education on BOOT
basis in 2292 schools of Rajasthan and second is an IT Project on BOO
basis in 568 Government schools of Delhi. Company has witnessed the
successful implementation of the Computer Aided Learning Program (CALP)
project for imparting training in 836 Govt. schools of Rajasthan worth
Rs.10.68 Crores. We are pleased to inform you that your company has
recently been awarded an ICT Project by secondary education department,
Govt. of Rajasthan for
providing computer education on BOOT basis in 1550 school worth Rs.
77.77 Crores. We further state that ICT Phase II project is in the
initial stage of Implementation. The company has massive plans for
capturing the advantage of Indian education expenditure planned through
Govt. of India promoted PPP model across India fueled by SSA (Sarva
Shiksha Abhiyan). During the year under report revenue generated from
learning solution business amounts to Rs. 4761.16 lacs while the
revenue generated in the previous financial year was Rs. 3645.71 lacs,
reflecting an increase of Rs. 1115.45 lacs i.e. 30.60%. The increase is
mainly due to the revenue derived from Computer Aided Learning Program
(CALP) project awarded to the company under SSA (Sarva Shiksha Abhiyan)
of Govt. of India during the year. Profit earned from this segment has
decreased by 12.47% to Rs. 447.25 lacs in comparison to Rs 510.96 lacs
in the previous financial year, which is mainly due to execution of new
high cost project i.e. CALP project. In terms of ratio of segment
profit to segment revenue has decreased to 9.39%. Profit generated from
this segment is 38.69% as compared to 39.39% of the previous financial
year.
(4) Wind Power Generation : The company had set up two wind power
generation plants of 0.6 MW each at Jaisalmer (Rajasthan), two at Sikar
(Rajasthan) of 0.6 MW each, and one of 0.8 MW at Krishna (Andhra
Pradesh). The operation and maintenance of the wind power project has
been out-sourced to Enercon India Ltd. The 0.8 MW wind Power Plant
situated at Tumkur (Karnataka) has been sold to Enercon India Limited
in March 2010 for Rs. 3.32 Crores since the generation from the said
plant was very Low. During the current year the company has established
a new 0.8 MW Plant at Krishna (Andhra Pradesh). The total Capital
Outlay on the said plant was Rs. 4.30 Crores. Company is expecting the
better generation from this Wind Power Plant.
The revenue generated from this segment amounted to Rs. 196.76 lacs in
the current year as compared to Rs. 200.05 lacs during the previous
year ended on 31st March 2009.
Enercon India Ltd. guarantees a minimum generation of 15 lacs units per
annum per machine for the first 3 years for Sikar and Jaisalmer . In
case of any shortfall in generation Enercon shall compensate the
company for the same. As the result of same the company has claimed an
amount of Rs. 32,03,160/- from Enercon India Ltd. in lieu of shortfall
in generation of wind power as against the guaranteed generation during
the current financial year.
- Guarantee for the two wind power plants in Jaisalmer has ended on
30th April 2007.
- Guarantee for two wind power plants in Sikar has ended in January
2010.
(5) Treasury Activities : Treasury income includes capital gains,
dividends from mutual funds and shares, interest on FDRs etc. During
the year, the revenue generated from treasury operations has decreased
by Rs. 242.15 lacs mainly due to capital gain on mutual funds of
Rs199.85 lacs realized during the previous year 2008-09. During the
year most of the funds was invested in FDRs, debt funds, where returns
are lower but safe margins are available in comparison to equity-
oriented funds.
Employee Stock Options : In 1999, the company issued 1,00,000/- equity
shares of Rs. 10/- face value, at par to Compucom Software Limited
Employee Welfare Trust, for the benefit of the employees and created a
stock option Plan. These shares have been irrevocably granted to the
trust and are used for the benefit of the employees. As on 31st March
2010 the Trust has the ownership of 2356488 unutilized shares.
The company has issued no fresh stock options, during the financial
year 2009-10.
Directors Responsibility Statement : Pursuant to section 217 (2AA) of
the Companies Act, 1956, Directors state therein:
(a) In preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanations and
disclosures relating to material departures.
(b) That they had selected such accounting policies and had applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give a true and fair view to the state of affairs
of the company as on 31st March 2010 and of the profit of the company
for the period.
(c) Proper and sufficient care has been taken in the maintenance of
adequate accounting records in accordance with the provision of the
companies act, 1956, for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities.
(d) The annual accounts have been prepared on a going concern basis.
Dividend : The Board of the directors has declared the Interim dividend
@ 10 % i.e. Rs. 0.20 per share for the financial year ending on 31st
March 2010. The Record date for the same was 21st May, 2010. Yours
directors decided not to recommend any final dividend and as such
interim dividend becomes the dividend for the year 2009-10.
Dividend declared & paid during last 11 (Eleven) years
Financial Year Dividend Rate
1999-00 20%
2000-01 25%
2001-02 10%
2002-03 25%
2003-04 25%
2004-05 25%
2005-06 30%
2006-07 30%
2007-08** 15%
2008-09*** 10%
2009-10 10%
Book Value per Share : Details of book value during the last 11
(Eleven) years are as under:
Financial No of Shares Face Value Book Value
Year per share Per share
(in Rs.)
1999-00 5,000,000 10 42.28
2000-01 5,025,000 10 55.74
2001-02 5,025,000 10 65.60
2002-03 5,025,000 10 69.00
2003-04 5,025,000 10 79.90
2004-05 5,025,000 10 90.79
2005-06 5,025,000 10 98.73
2006-07 5,025,000 10 105.89
2007-08** 25,125,000** 2 (10) 22.79
2008-09*** 502,50,000*** 2 13.10
2009-10 502,50,000 2 14.47
**Equity share of face value of Rs. 10 subdivided into equity share of
Face value of Rs. 2 each. Record date for the same was
15th October 2007.
*** Bonus issue in the ratio of 1:1 was granted by the company. Record
date for the same was 26th December 2008.
Fixed Deposits : During the financial year 2009-10, your company has
not accepted or renewed any fixed deposits falling within the
definition of Section 58 A of the companies act, 1956.
Board of Directors : In accordance with the provisions of articles of
association of your company, Mr. Shubh Karan Surana and Mr. Stephen
Carl Viehman, Directors of the Company retire by rotation and being
eligible, offer themselves for reappointment. The board recommends the
reappointment of Mr. Shubh Karan Surana and Mr. Stephen Carl Viehman as
directors liable to retire by rotation.
POSTAL BALLOT : The Shareholders of the Company passed 2 ordinary and 2
special resolutions through postal ballot. The details are as under:
The Board of Directors of the Company in its meeting held on 10.05.2010
sought the approval of the shareholders through postal ballot and
appointed Mr. Manoj Maheshwari, Practising Company Secretary, Jaipur as
the scrutinizer for conducting the postal ballot process. The notice of
the Postal Ballot dated 10.05.2010; postal ballot form and
self-addressed pre-paid postage envelope were sent to the shareholders.
The last date of receipt of the Postal Ballot form the shareholders was
07.07.2010. Mr. Manoj Maheshwari submitted his report dated 09.07.2010
and based on the said report, results of Postal Ballot were declared on
13.07.2010 confirming -
a) Increase in Authorised Share Capital from Rs. 12,00,00,000/- to Rs.
20,00,00,000/-.
b) Alteration in Object clause
c) Authorising the Board under section 293(1)(a) & (d) to sell, lease
etc. and borrowing etc. , respectively to the extent of Rs.
300,00,00,000/- d) Authorising Board under section 372A for making
Inter Corporate Loans and Investments etc. to an extent of Rs.
150,00,00,000/-.
The above resolutions were approved by overwhelming majority of the
shareholders.
Auditors and Auditors Report : S. Misra & Associates, chartered
accountants, statutory auditors of the company, retire at the
forthcoming annual general meeting and have confirmed their eligibility
and willingness to accept the office, if reappointed. Accordingly, the
said auditors are proposed to be re-appointed as statutory auditors of
the company at the ensuing annual general meeting. The auditors report
is self-explanatory and does not call for further explanation.
Conservation of Energy, Research & Development, Technology Absorption,
Foreign Exchange Outgo : Disclosure under section 217(1)(e) of the
companies act, 1956, read with the companies (Disclosure of Particulars
in the Report of Board of Directors) rule 1988 are given in the
annexureà AÃ
Particulars of Employees : As required by the provisions of sub-section
217(2A) of the companies act, 1956, read with the Companies
(Particulars of Employees) rules, 1975, no employee is drawing
remuneration at or above the limits mentioned therein.
Human Resource Management and Employee Relation : Employees are vital
assets of the company. The company has created a favorable
work-environment that encourages innovation and nurturing of commercial
and managerial talents in its operations. The company also provides
sharing in ownership of the company through employee stock option
scheme, wherein stock options are granted based on the cadre of the
employees and the policy prevailing in the organization. The company
continues to have cordial relation with its employees.
Quality Assurance : Your Company is an ISO 9001:2000 organization,
certified by Det Norske Veritas (DNV) since 1998. These standards
enable us to identify risks at the initial planning stage of the
project. The company firmly believes in the pursuits of excellence to
compete in this emerging and growing software market. Our focus has
been on providing quality products and services to our customers.
Your company achieved CMMI level-3 certification during the last
financial year and continues to implement the certification quality
level in its operation.
Corporate Governance : As required under the listing agreement with the
stock exchange, a report on corporate governance is given in a separate
section in this annual report.
Acknowledgments : The directors sincerely appreciates the contributions
made by all the employees, associates and business partners who have
contributed towards the success of the company. The directors are also
thankful for the cooperation, support and assistance received from
banks, investors, customers, central and state government departments,
local authorities, vendors, strategic alliance partners, stock
exchanges and all others associated with the activities of the company.
The directors would also like to acknowledge the continuous support of
the companys shareholders.
For and on behalf of the Board
Sd/- Sd/-
Surendra Kumar Surana Shubh Karan Surana
Managing Director & CEO Director
Jaipur, 31st July 2010
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