Mar 31, 2013
Dear Members,
The Directors have pleasure in presenting the Sixteenth Annual Report
of your Company on the business and operations of the Company, together
with the Audited Accounts for the financial year ended March 31, 2013.
FINANCIAL RESULTS:
(Rs. in Lakhs)
Particulars Standalone
March 31, March 31,
2013 2012
Total Income 118718.80 161247.06
Profit / (Loss) Before Taxes 229.96 37769.79
Less: Provision for Income Tax (net
off short/(excess) provision for earlier
years) (934.48) (12979.80)
Less: Provision for deferred tax/wealth
Tax/fringe benefit tax 705.52 914.86
Profit / (Loss) After Taxes 1.00 25704.84
Profit available for Appropriation 1.00 25704.84
Less: Proposed Dividend - 67.62
Less: Provision for Tax on Dividend - 10.97
Add: Balance Brought forward from
last year 54309.27 28683.02
Balance carried to Balance Sheet 33650.78 54387.86
REVIEW OF PERFORMANCE:
On a Standalone basis, your Company has recorded a total income of
118718.80 Lakhs for the financial year ended March 31, 2013, an
decrease of 27% compared to last year's figure of Rs. 161247.06 Lakhs.
The Company's profit /loss after tax stood at Rs. 1.00 Lakhs. Due to
subdued performance of the US subsidiary in view of the non
availability of the working capital at US, hence delayed integration
and delays in the indian projects execution, the results were lower as
compared to the previous year. In view of the losses and key
investments being held in various projects and US subsidiary, the
Company has been facing liquidity issues. The detailed analysis on the
Company Standalone /Consolidated financial results for the year end is
given in the Management Discussion & Analysis (MD&A) Report which is
separately annexed as part of the Annual Report.
DIVIDEND:
The Company as per its profit sharing policy, has been extending the
profit participation to it shareholders through distribution of
dividend. Your Company has been consistently dividend paying company.
However, due the subdued performance and liquidity tightness, there is
need to deploy the funds in the projects for the Company's performance
recovery, the Board of Directors do not recommend any dividend for the
year.
FINANCE AND CAPITAL STRUCTURE:
A) Cancellation of Warrants issued under the preferential guidelines:
As per the approval granted by the members of the Company at the 14th
Annual General Meeting, the Company on receipt of the requisite Stock
Exchange Approvals had issued 15,00,000 warrants, carrying the
entitlement of conversion of 1(one) equity share of Rs. 6/- each
(Rupees Six only) at Rs. 400/- per warrant to Glodyne Global Private
Limited, a promoter group Company. The warrants were due for conversion
in April, 2013.Since the Warrant holder did not exercise the conversion
option, the said warrants have been cancelled and the amount paid for
subscription of warrants have been forfeited in favor of the Company.
B) Increase in Share Capital:
Allotment on exercise of stock options under Employee Stock Option
Scheme:
During the year, 157,884 equity shares of the face value of Rs. 6/-
each (post subdivision) has been issued on the exercise of Stock
Options under the Employee Stock Option Scheme 2006 of the Company. As
a result of the above, the Company's paid up capital stood increased to
Rs. 27.09 crores consisting of 4,51,51,940 equity shares of Rs. 6
each/-.
C) Banking and Finance
In view of the subdued financial position of the Company, there have
been certain payment issues in the banking and finance arrangement of
the Company with its Bankers / Financing institutions. The Company has
been in discussion with some of the Bankers for restructuring of the
facilities and some of the Bankers have already restructured / are in
process of restructuring the exposure, which will help the Company to
revive its projects for better financial position. The Company has,
during the year, due to Government Projects delays and cash outflow for
servicing of debt, faced liquidity constraints.
D) Promoter Shareholding
During the year, the Promoters shareholding has come down on account of
the invocation and / or sale of shares pledged by the Promoters in
favour of Bankers/ Lenders.
DIRECTORS:
Pursuant to the provisions of the Companies Act, 1956 and in accordance
with the Articles of Association of the Company, Mr. Bryan Sanderson
will be retiring by rotation at the ensuing Annual General Meeting. Due
to his other business plans and pre occupations, Mr. Sanderson has not
sought his re-appointment. The Board of Directors put on record their
appreciation towards Mr. Sanderson's contribution.
Shareholders attention is drawn to the relevant items appearing in the
Notice of the A.G.M. and the explanatory statement, seeking the
approval of the members in this matter.
EMPLOYEES STOCK OPTION SCHEME
In accordance with the Glodyne Employees Stock Option Scheme, 2010 of
the Company, No Stock Options (post subdivision no.) were granted
during the year by the Compensation Committee. No fresh grants were
made under the Employee Stock Option Scheme, 2006 of the Company. The
particulars required under the SEBI (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 are annexed to and
form part of this report. No employee was issued Stock Option during
the year equal to or exceeding 1% of the issued capital of the Company
at the time of grant. The Scheme is applicable to the eligible
employees which include employees and directors of the Company and its
subsidiary companies.
LITIGATIONS
During the year, certain litigations have been filed against the
Company and Directors, including some petitions for winding up of the
Company. The Company has been defending the same on merits. The
management has taken and been taking all diligent steps under legal
advise to defend the Company. The Company has not till date received
any adverse order impacting it materially. The Company has also been
working on mediation on some of the litigations, wherever desirable.
CORPORATE GOVERNANCE
Your Company has complied with the Corporate Governance norms as
stipulated under the provisions of the Listing Agreement entered into
with the Stock Exchanges. A separate section on Corporate Governance
Report and a Certificate from the Company's Statutory Auditors
confirming compliance with the conditions of Corporate Governance by
the Company as stipulated in Clause 49 of the Listing Agreement are
annexed to and forming part of this report.
STATUTORY INFORMATIONS:
CONSERVATION OF ENERGY, EFFORTS FOR EXPORT MARKET DEVELOPMENT, R & D
ACTIVITIES, FOREIGN EXCHANGE EARNINGS & OUTGO AND TECHNOLOGY
ABSORPTION:
As required under Section 217(1) (e) of the Companies Act, 1956 and the
rules made thereunder, the necessary details are given hereunder:
Conservation of Energy
Your Company's operations are Information technology driven and
services focused, the operations are not energy intensive. Hence there
are no particulars required to be furnished in respect of conservation
of energy. However, as a responsible corporate citizen, the Company
carries out various energy conservation measures, including use of
equipments for minimizing power consumption.
Export Market Development
The Company has been working on development of the export market
development the our its subsidiaries. The Company operates in the USA
through its subsidiaries and has been making further efforts to
offshore the activities carried out in the US by its subsidiaries,
which includes internal outsourcing and client servicing. The Company
focuses on offshore servicing of US clients, thereby increasing export
share.
Research & Development Activities
The Company's projects which involve Information Technology for the
social sector and transformational projects also essentially involve
research and development to make these projects more effective. There
is a constant endeavour at your Company to this end. For such purposes,
the Company invests and carries out the research and development
activities. To enhance the capabilities of service delivery, Company
has in house developed mobile application for its on field support
services. It has resulted in efficiency improvements and cost savings.
The Company also carried out virtualization of the Data Centers at US,
which resulted in better performance of the data centers and
efficiency.
Foreign Exchange Earnings and Outgo / Technology Absorption
During the year under review, the Company has earned NIL foreign
currency (Previous year Rs. 2377.76 Lakhs) and has spent Rs. 314.55
Lakhs (Previous year - Rs. 193.58 Lakhs). Details of the same are
available vide note nos. 27 & 28 of the Notes forming part of the
Audited Accounts, attached herewith.
The Company has not imported any foreign technology & hence the
requisite particulars in this regard are Nil.
Explanation in respect of Auditors comments in the Audit Report.
The Board gives the following explanations on the comments of Auditors
reported in the Annexure to Auditors Report:
1) Refer Note 4 of Financial Statements as mentioned in Auditors'
Report to the members - The writing off of the Advances in the opening
balances of the Profit & Loss Account instead of debiting to P& L
Account is in accordance with an opinion obtained by the Company in
this regards. Since the advances related to a period upto March 31,
2012, the same were directly written off from the opening balances.
2) Refer point (ix) (a) of the Annexure to Auditors' Report to the
members on Standalone Financial Statements - In view of the Liquidity
constraints faced by the company, there have been delays in payment of
the statutory dues. The Company has making diligent efforts to resolve
the issues and initiate the process of making the payment of the dues.
The dues as mentioned in point (b) are being contested by the Company
in appeals and therefore, remained pending.
3) Other Matters not amounting to qualification - The Company's
subsidiaries are in the service nature of business and therefore as on
the date of the balance sheet, considering the overall period since
acquired, integration of business of subsidiaries acquired five years
ago there is no impairment of the Goodwill. The liquidity constraints
are self explanatory.
DISCLOSURE OF PARTICULARS UNDER SECTION 217(2A):
The disclosure about the details of the employees drawing remuneration
in excess of the limits specified under Section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of employees)
Rules, 1975, during the year under review forms part of the Directors'
Report. However, having regard to the provisions of Section 219 (i)
(b) (iv) of the Companies Act, 1956, the Annual Report excluding the
aforesaid information is being sent to all the shareholders of the
Company and others entitled thereto. Any shareholder interested in
obtaining a copy of the same may write to the Company Secretary at the
Registered Office of the Company. The statement is also available for
inspection at the registered office during working hours upto the date
of the forthcoming Annual General Meeting (AGM).
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, the Directors hereby confirm:
(i) that in the preparation of the accounts for the financial year
ended March 31,2013, the applicable accounting standards have been
followed along with proper explanation relating to material departures;
(ii) that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
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 under review
and of the profit for the year under review;
(iii) that the Directors have 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;
(iv) that the Directors have prepared the accounts for the financial
year ended March 31,2013 on a going concern basis.
SUBSIDIARY COMPANIES:
As on March 31,2013, your Company's subsidiaries included Glodyne
People power Limited, Smaarftech Technologies Private Limited, Glodyne
Technoserve Inc., Decision One Corporation USA and its 2 US
subsidiaries, Glodyne Technoserve East Inc., Front Office Technologies,
Inc., Compulink USA Inc., Compulink Software Pte. Ltd., Compulink
Europe Ltd.
Ministry of Corporate Affairs has granted general exemption under
Section 212(8) of the Companies Act, 1956 exempting companies from
attaching copies of the Balance Sheet, Profit and Loss Account, Reports
of the Board of Directors and Auditors of Subsidiaries as specified
under Section 212(1) of the Companies Act, 1956 subject to publication
of certain summarised financial information of the subsidiaries in the
Annual Report. Also, as required, the Company has attached to this
report, Consolidated Audited Accounts of the Company and all its
subsidiaries. Accordingly these documents related to subsidiaries are
not attached to the Balance Sheet and the summarised financial
information related to subsidiaries is included in the Annual Report.
The annual accounts of the subsidiaries along with the related
information will be made available to the Members seeking such
information at any point of time. The annual accounts of the
subsidiaries are also available for inspection during business hours at
the Registered Office of the Company for inspection by any interested
shareholder.
FIXED DEPOSITS:
The Company has not accepted any deposits falling within the purview of
Section 58A of the Company's Act, 1956 during the year under review,
and as such, no principal or interest amount was outstanding on the
date of the Balance sheet.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:
Green Initiative
As permitted by the Ministry of Corporate Affairs (MCA) in its circular
"Green Initiative in Corporate Governance" issued towards encouraging
paperless compliances, the Company intends to disseminate the Annual
Report and related communications for FY- 2012-2013 in electronic mode.
Going forward also the Company's communications / documents (including
Notice of General Meetings, Audited Financial Statements, Directors'
Report, Auditors' Report and all other documents including Postal
Ballot documents) as may be allowed from time to time, by MCA will be
send in electronic mode to the registered e-mail addresses of the
Members as provided / updated by you and made available to the Company
by the Depositories, which will be deemed to be your registered e-mail
address for serving the necessary communications / documents.
Your directors also requests you to register your e-mail address with
your DP for the purpose of serving of documents by the Company in
electronic mode, if your e-mail address is not registered with your
Depository Participant (DP).
AUDITORS:
The Present Statutory Auditors of the Company M/s. N M Kapadia & Co,
Chartered Accountants, Mumbai, hold their office until the conclusion
of the ensuing Annual General Meeting. The present auditors have
confirmed their willingness and eligibility under Section 224(1B) of
the Companies Act, 1956 for their reappointment for the financial year
ending 2013-14 at a remuneration to be decided by the Board of
Directors or Committee thereof.
Your Directors recommend their re-appointment at the ensuing Annual
General Meeting for your approval.
HUMAN CAPITAL:
The Company has been rationalizing its human capital to suit the
reviewed needs. The Company always have had strong culture of bonding
and team work and promotes it. The Company's Human Capital has seen
turnover in last year in view of the rationalization. The Company's
present human capital comprises organic resources and additions made
through the overseas acquisitions.
QUALITY INITIALISES:
The Company has been certified with by International Organization for
Standardization (ISO) with ISO 27001, the highest certification
standard on information security. The Company is also an ISO 9001:2000
certified and CMMi level 3 compliant Company. The Process methodologies
are followed to ensure quality deliverables to clients.
ACKNOWLEDGEMENTS:
The Board of Directors put on record their sincere thanks to the
clients, vendors, bankers, educational/academic institutions, media,
analysts for their continued support and co-operation.
Your Directors place on record their appreciation for the business
associates and shareholders. Your Directors also thank all the
Government and regulatory authorities connected with the Company's
business for their support during the year.
Your Directors also appreciate and value the contribution of each
member of Glodyne family including the contribution of the employees at
all levels in the growth of the organization.
For and on Behalf of the Board
Sd/-
Annand Sarnaaik
Chairman & Managing Director
Place: Mumbai
Date: August 13, 2013
Mar 31, 2011
The Members of
Glodyne Technoserve Limited
The Directors have pleasure in presenting the Fourteenth Annual Report
of your Company, together with the Audited Accounts for the financial
year ended March 31, 2011.
FINANCIAL RESULTS: (Rs. in Lakhs)
Particulars Standalone Consolidated
Year Ended Year Ended Year Ended
March 31, 2011 March 31, 2011 March 31, 2010
Total Income 98,881.83 175,145.79 74,294.27
Profit / (Loss)
Before Taxes 20,025.01 23,295.77 12,996.74
Less: Provision for
Income Tax (net off
short / (excess)
provision 5,100.00 5,205.00 2,570.72
for earlier years)
Less: Provision for
deferred tax/wealth
Tax /fringe benefit tax 508.85 571.52 715.99
Add: Adjustment on
account of Alignment
in Accounting Policy - - 325.91
Profit / (Loss)
After Taxes 14,416.16 17,519.25 10,035.94
Less: Transfer to
Minority Interest - 107.70 35.89
Profit available for
Appropriation 14,416.16 17,411.55 10,000.05
Less: Transfer to
General Reserve 1,441.62 1,441.62 1,917.19
Less: Proposed
Dividend @ Rs. 4.2
per share 1,845.80 1,845.80 1,103.70
Less: Provision for
Tax on Dividend 299.44 299.44 183.31
Add: Balance brought
forward from previous
year 17,853.74 18,930.69 13,015.67
Less: Transfer from
Debenture Redemption
Reserve - - 42.00
Less: Utilized for
bonus issue of shares - - 118.73
Balance carried to
Balance Sheet 28,683.04 32,755.39 19,734.79
REVIEW OF PERFORMANCE:
On a Consolidated basis, your Company has recorded a total income ofRs.
175,145.79 Lakhs for the financial year ended March 31, 2011, an
increase of 133% compared to last year's figure ofRs. 74,294.27 Lakhs.
The Earnings before Interest, Tax, Depreciation and Adjustments
(EBITDA) stood atRs. 31,625.20 Lakhs as compared to last yearsRs. 17,107.03
Lakhs, recording a growth of 85%. The Company's profit after tax stood
at Rs. 17,411.55 Lakhs as compared to previous year's Rs. 10,000.05 Lakhs,
recording a growth of 74%. The Consolidated Results of last year
included 9 months' financials of DecisionOne Corporation, U.S.A., a
Company acquired by your Company in the year and therefore may not be
strictly comparable with previous year consolidated results.
DIVIDEND:
Enthused by the continued impressive performance of your Company during
the year under review, with expansion of its top line and bottom line,
and following the Company's policy for dividend payout, your Directors
recommend for your approval, a dividend of Rs. 4.20/- on equity share of
Rs. 6/- each, (Previous year a dividend of Rs. 4.20/- on equity share of Rs.
10/- each). Considering the split of equity shares during the year
from the face value ofRs. 10/- each to face value ofRs. 6/- each, the
effective dividend for the year under review works out at 70% compared
to 42% of the previous year. The dividend amount will absorb a total Rs.
1845.80 Lakhs, excluding corporate tax on dividend.
The register of members and share transfer books will remain closed on
September 15, 2011 and the dividend will be paid to members whose names
appear in the Register of Members as on September 14, 2011; in respect
of shares held in dematerialised form, it will be paid to members whose
names are furnished by National Securities Depository Limited and
Central Depository Services (India) Limited, as benefcial owners.
FINANCE AND CAPITAL STRUCTURE:
A) Strategic Acquisitions / Mergers:
Overseas Acquisition:
Your Company continued on its growth path through a healthy mix of
organic and inorganic route. As a part of this strategy and in a major
leap towards expanding its presence in one of the largest IMS market in
the world i.e. US, the Company during the year acquired DecisionOne
Corporation.
DecisionOne is one of the largest, Profitable pure-play technology IMS
companies in North America, with revenue of $200 million. DecisionOne
has extensive capabilities in providing onsite and remote IMS in the
U.S. and Canada. Among its key clients are a number of large enterprise
customers including Fortune 500 companies and virtually every major IT
manufacturer and IT service provider. The acquisition will significantly
enhance Glodyne's position in the $524 billion global technology IMS
opportunity and strengthen its global reach with a robust onsite-remote
IMS delivery model. Glodyne expects to significantly strengthen its
position in the North American market with the addition of marquee
clients and highly skilled professionals. The transaction also deepens
and broadens the service offering portfolio across many segments,
including: data center, networking, server, workstation, and storage
services, as well as application management and remote technology
infrastructure management services. Company paid a Enterprise Value of
US $ 104 million for the acquisition, which was funded by a combination
of the debt, equity and internal accruals. The Company has been working
on the integration process of DecisionOne with your Company.
DecisionOne is one of the subsidiary companies of Glodyne.
B) Sub division (split) of equity shares:
During the year under review, as per the approval granted by the
members of the Company at the 13th Annual General Meeting, the Company
has subdivided its equity share of face value ofRs. 10/- each to the face
value Rs.6/- each. As on March 31, 2011, the paid-up equity share capital
is Rs. 26,29,51,680 divided into 4,38,25,280 equity shares of Rs. 6/- each.
Pursuant to subdivision, 5408 equity shares have arisen which as per
the shareholder consent have been issued in name of the Independent
Directors who held the said shares in trust. Accordingly the
proportionate amount on sale of shares is being distributed to the
entitled shareholders.
C) Increase in Share Capital:
During the year, pursuant to the amalgamation of Compulink Systems
Limited and Broadllyne Technologies Limited with the Company, the
authorized capital of the Company increased by Rs. 15 Crores and Rs. 1
Crores respectively. Further, the Company increased its Authorized
Capital and the Capital as on March 31, 2011 stood atRs. 59.10 Crores,
consisting of Nine Crore Equity Shares of Rs.6/- each and Eighty Five
Lakhs Preference Shares of Rs.6/- each.
The Company has also issued and allotted:
a) 5,28,403 equity shares of the face value of Rs. 10/- each (pre
subdivision) to the shareholders of Compulink Systems Limited (CSL) on
approval of Scheme of Amalgamation of CSL with the Company, the equity
share capital of the Company is increased from 2,39,75,913 equity
shares to 2,45,04,316 equity shares.
b) 17,20,284 equity shares of the face value of Rs. 10/- each (pre
subdivision) to the shareholders of Broadllyne Technologies Limited
(BTL) on approval of Scheme of Amalgamation of BTL with the Company,
the equity share capital of the Company is increased from 2,45,04,316
equity shares to 2,62,24,600 equity shares.
c) 79,988 equity shares of the face value of Rs. 10/- each (pre
subdivision) on exercise of Stock Options under the Employee Stock
Option Scheme of the Company during the year.
d) 14,53,221 equity shares of the face value ofRs. 10/- each (pre
subdivision) on preferential basis in accordance with the consent of
the shareholders at the Extra Ordinary General Meeting held on June 10,
2010 and SEBI (ICDR) Regulations to the foreign shareholders with the
intend of utilizing the funds for the Company's acquisition. The
details of the utilization of funds have been provided by the Company
to the Stock Exchanges in accordance with the requirement of the
Listing Agreement.
e) 6,00,000 Convertible warrants atRs.180/- per warrant issued to Glodyne
Global Pvt. Limited, a promoter group Company. Post sub-division of
the shares of the Company, the no. of warrants has proportionately
increased to 10,00,000 warrants, carrying the right to apply and seek
allotment of one equity share of Rs. 6/- each and at a premium of Rs. 426
per share i.e. total of Rs. 432 per share. Warrants issued to the
promoters' group Company are pending exercise of options for acquiring
equal number of equity shares, on or before December 22, 2011.
As a result of the above, as on March 31, 2011, the Company's paid up
capital stood increased to Rs. 26,29,51,680 consisting of 43,825,280
equity shares of Rs.6/- each.
DIRECTORS:
Pursuant to the provisions of the Companies Act, 1956 and in accordance
with the Articles of Association of the Company Mr. Dhiren B. Kothary
will be retiring by rotation at the ensuing Annual General Meeting In
accordance with Company's policy for rotation of independent Directors,
Mr. Dhiren Kothary would retire from the directorship. The Board of
Directors puts on record its appreciation towards the contribution made
by Mr. Kothary to the Company over the years.
Subsequent to the year end, the Board of Directors has approved the
appointment of Mr. Bryan Sanderson, Dr. Mohan Kaul & Mr. Samar Ray as
Additional Directors on the Board.
Shareholders attention is drawn to the relevant items appearing in the
Notice of the A.G.M. and the explanatory statement, seeking the
approval of the members in this matter.
EMPLOYEES STOCK OPTION SCHEME
During the year and pursuant to the approval of the shareholders at
their meeting held on December 24, 2010, the Company has formulated
Glodyne Employee Stock Option Scheme 2010. The Stock Options under this
Scheme & earlier ESOS Scheme ESOS 2006 were also increased
proportionately to give effect to the split of the face value of the
equity share of the Company from Rs. 10/- each to Rs. 6/- each.
In accordance with the Employee Stock Option Scheme, 2006 & Glodyne
Employees Stock Option Scheme, 2010 of the Company, a total number of
60,000 Stock Options (post subdivision no.) & 11,80,980 Stock Options
(post subdivision no.) respectively were granted during the year by the
Compensation Committee. The particulars required under the SEBI
(Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999 are annexed to and form part of this report. No
employee was issued stock option during the year equal to or exceeding
1% of the issued capital of the Company at the time of grant.
The issuance of equity shares pursuant to exercise of Options does not
affect the profit and loss account of the Company, as the exercise is
made at the market price as per SEBI Guidelines.
CORPORATE GOVERNANCE
Your Company has complied with the Corporate Governance norms as
stipulated under the provisions of the Listing Agreement entered into
with the Stock Exchanges. A separate section on Corporate Governance
Report and a Certifcate from the Company's Statutory Auditors
confirming compliance with the conditions of Corporate Governance by
the Company as stipulated in Clause 49 of the Listing Agreement are
annexed to and forms part of this report.
STATUTORY INFORMATIONS:
CONSERVATION OF ENERGY, EFFORTS FOR EXPORT MARKET DEVELOPMENT, R & D
ACTIVITIES, FOREIGN EXCHANGE EARNINGS & OUTGO AND TECHNOLOGY
ABSORPTION:
As required under Section 217(1) (e) of the Companies Act, 1956 and the
rules made thereunder, the necessary details are given hereunder:
Conservation of Energy
At your Company's Offices and facilities we make efforts to conserve
energy as various levels and also make use of equipments which would
save energy. In the internal IT set up owned by the organization, the
Company uses technology equipments which make optimal use of energy
resources, at all the stages of its activities.
As your Company's business comprises of Technology IMS and Software
Services and related activities, the operations are not energy
intensive. Hence there are no particulars required to be furnished in
respect of conservation of energy.
Export Market Development
The Company has been providing services to client in the US market. The
Company has been making efforts for further client mining in the
geographies for export development. Subsequent to the acquisition of
DecisionOne and integration of the US Company with parent company, the
Company expects to provide offshore services to a larger client base in
US, and thereby trying to increase the export revenues.
Research & Development Activities
Your Company has undertaken programs in the Technology IMS Market in
India which are focused on the Social Sector schemes. The Company
invests and carries out the research and development activities for
upgrading its products and services delivered to its customers. For
such purposes, some of the specifc areas like process changes for
service delivery up gradation / customization of the products /
solutions offered by the Company, version enhancements, security
features are being carried out by the Company. Your company has
developed its own applications and service capabilities to cater to
large scale technology programs deployed in the social sectors / e -
governance programs.
Foreign Exchange Earnings and Outgo / Technology Absorption
During the year under review, the Company has earned Rs. 15,223.80 Lakhs
in foreign currency (Previous year Rs. 11,200.41 Lakhs) and has spentRs.
37.28 Lakhs (Previous year -Rs. 17.95 Lakhs). Details of the same are
available vide note nos. B - 6 & 7 of the Notes in Schedule L forming
part of the Audited Accounts, attached herewith.
The Company has not imported any foreign technology & hence the
requisite particulars in this regard are Nil.
DISCLOSURE OF PARTICULARS UNDER SECTION 217(2A):
The disclosure about the details of the employees drawing remuneration
in excess of the limits specifed under Section 217(2A) of the Companies
Act, 1956 read with the Companies (Particulars of employees) Rules,
1975, during the year under review forms part of the Directors' Report.
However, having regard to the provisions of Section 219 (i) (b) (iv) of
the Companies Act, 1956, the Annual Report excluding the aforesaid
information is being sent to all the shareholders of the Company and
others entitled thereto. Any shareholder interested in obtaining a copy
of the same may write to the Company Secretary at the Registered Office
of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, the Directors hereby confirm:
(i) that in the preparation of the accounts for the financial year ended
March 31, 2011, the applicable accounting standards have been followed
along with proper explanation relating to material departures;
(ii) that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
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 under review
and of the profit for the year under review;
(iii) that the Directors have 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;
(iv) that the Directors have prepared the accounts for the financial
year ended March 31, 2011 on a going concern basis.
SUBSIDIARY COMPANIES:
As on March 31, 2011, your Company's subsidiaries included Glodyne
Peoplepower Limited, Smaarftech Technologies Private Limited, Glodyne
Technoserve Inc. and its step down subsidiaries including DecisionOne
Corporation USA and its 2 subsidiaries and Compulink USA Inc.,
Compulink Software Pte. Ltd., Compulink Europe Ltd.
Ministry of Corporate Affairs has granted general exemption under
Section 212(8) of the Companies Act, 1956 exempting companies from
attaching copies of the Balance Sheet, Profit and Loss Account, Reports
of the Board of Directors and Auditors of Subsidiaries as specified
under Section 212(1) of the Companies Act, 1956 subject to publication
of certain summarised financial information of the subsidiaries in the
Annual Report. Accordingly these documents related to subsidiaries are
not attached to the Balance Sheet and the summarised financial
information related to subsidiaries is included in the Annual Report.
The annual accounts of the subsidiaries along with the related
information will be made available to the Members seeking such
information at any point of time. The annual accounts of the
subsidiaries are also available for inspection during business hours at
the Registered Office of the Company for inspection by any interested
shareholder.
FIXED DEPOSITS:
The Company has not accepted any deposits falling within the purview of
Section 58A of the Company's Act, 1956 during the year under review,
and as such, no principal or interest amount was outstanding on the
date of the Balance sheet.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:
Green Initiative
The Ministry of Corporate Affairs (MCA) has taken a "Green Initiative
in Corporate Governance" vide Circular No. 17/2011 dated 21.04.2011 and
Circular No. 18/2011 dated 29.04.2011, respectively, by allowing
paperless compliances by companies through electronic mode. Companies
are now permitted to send various communications / documents (including
Notice of General Meetings, Audited Financial Statements, Directors'
Report, Auditors' Report and all other documents including Postal
Ballot documents) to its Members, through electronic mode, to the
registered e-mail addresses of the Members.
Your Company proposes to henceforth effect all communications /
documents, as may be allowed from time to time, including Annual Report
for the Financial Year 2010-11, in electronic form to its Members, to
the e-mail address provided / updated by you and made available to the
Company by the Depositories, which will be deemed to be your registered
e-mail address for serving the necessary communications / documents.
Your Directors also request you to register your e-mail address with
your DP for the purpose of serving of documents by the Company in
electronic mode, if your e-mail address is not registered with your
Depository Participant (DP).
Glodyne Care Foundation
We are committed to contributing to the society and initiated setting
up of "Glodyne Care Foundation", a not-for-Profit trust setup to support
our social initiatives. The foundation is setup to promote the object
of imparting education, providing medical aid, helping the poor etc.
The Foundation embodies corporate systems and processes driven
organization operating on a not for Profit basis, with the overall aim
to create and support meaningful and innovative activities that will
address some of India's most pressing development challenges. The
Foundation is being formed with an initial contribution of Rs. 1 Lakh.
AUDITORS:
The Present Statutory Auditors of the Company M/s. N M Kapadia & Co,
Chartered Accountants, Mumbai, hold their Office until the conclusion of
the ensuing Annual General Meeting. The present auditors have confirmed
their willingness and eligibility under Section 224(1B) of the
Companies Act, 1956 for their reappointment for the financial year
ending 2011-12 at a remuneration to be decided by the Board of
Directors or Committee thereof.
Your Directors recommend their re-appointment at the ensuing Annual
General Meeting for your approval.
M/s. Kreischer Miller has carried out the US GAAP audit and S.R.
Batliboi & Associates has carried out the Indian GAAP Audit of
DecisionOne Corporation - largest subsidiary of your Company.
HUMAN CAPITAL:
The Company has expanded its human capital through organic hiring as
well as addition through the acquisitions it did. In the Company there
are stringent selection processes to ensure fairness and employment of
the quality resources. The Company carries out various initiatives for
the talent management within the organization and to this intent,
various employee centric programs such - Glodyne Care, Excellence
workshops, Glofest etc have been designed and are carried out. These
various initiatives are aimed to promote healthy competition, motivate
the workforce, and aligning them to the organization's objectives. The
attrition rate of your company's employees' has been below the industry
average. Your Company provides opportunities to the employees for
growth in congruence with the Company's goals.
QUALITY INITIAVIES:
The Company being the Service industry follows norms and procedures of
international standards. The Company has been certified with by
International Organization for Standardization (ISO) with ISO 27001,
the highest certifcation standard on information security. The Company
is also an ISO 9001:2000 certified and CMMi level 3 compliant Company.
AWARDS & ACCOLADES:
During the year under review, your Company was awarded with the
following Awards:
- Maharashtra IT 2010 award
- Best Under a Billion award for the year by Forbes Asia
- Deloitte Technology Fast 500 AsiaPac and Fast 50 India programs
- Super ranked 4th by Business Standard
- Ranked 8th by India Inc amongst the best performing midsized
companies in the year
ACKNOWLEDGEMENTS:
The Board of Directors put on record their sincere thanks to the
clients, business partners, bankers, media, analysts, research houses
for their continued support and co-operation.
Your Directors place on record their appreciation for the business
associates and shareholders. Your Directors also thank all the
Government and regulatory authorities connected with the Company's
business for their support during the year.
Your Directors also appreciate and value the contribution of each
member of Glodyne family including the contribution of the employees at
all levels in the growth of the organization.
For and on Behalf of the Board
Sd/-
Place : Mumbai Annand Sarnaaik
Date : August 05, 2011 Chairman & Managing Director
Mar 31, 2010
To,
The Members of
Glodyne Technoserve Limited
Your Directors have pleasure in presenting the Thirteenth Annual Report, together with the Audited Accounts
for the financial year ended March 31, 2010.
FINANCIAL RESULTS:
The Consolidated and Standalone financial performance of the Company, for the year ended March 31, 2010 is
summarized below. Since the Appointed Date for the Arrangement & Amalgamation of Compulink Systems
Limited (CSL) & Broadllyne Technologies Limited (BTL) with Glodyne Technoserve Limited is April 01, 2009, the
assets and liabilities of CSL & BTL and its operating results have been incorporated in the CompanyÃs financials
for the financial year 2009 - 2010.2010.
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