Mar 31, 2023
Your Board of Directors take pleasure in presenting the 27th Annual Report Tanla Platforms Limited ( "Tania" or the "Company") together with the Audited Financial Statements (Standalone & Consolidated) for the Financial Year ended March 31, 2023.
State of affairs and financial position
Financial Summary
(Rs. in Lakhs) |
||||
Particulars |
Standalone |
Consolidated |
||
2022-23 |
2021-22 |
2022-23 |
2021-22 |
|
Revenue from operations |
1,14,871.87 |
1,24,687.30 |
3,35,455.49 |
3,20,597.33 |
Other income |
11,676.43 |
2,731.56 |
2,619.92 |
1,612.62 |
Total Income |
1,26,548.30 |
1,27,418.86 |
3,38,075.41 |
3,22,209.95 |
Cost of services |
97,303.04 |
1,02,933.93 |
2,51,783.40 |
2,29,793.74 |
Operating expenses |
8,967.07 |
8457.34 |
25,015.05 |
20,918.73 |
Depreciation |
687.69 |
643.59 |
4,617.13 |
4,085.63 |
Total Expenses |
1,06,957.81 |
1,12,034.86 |
2,81,415.58 |
2,54,798.11 |
Profit before tax and exceptional items |
19,590.49 |
15,384.00 |
56,659.83 |
67,411.84 |
Exceptional item: Reversal of provision for impairment of investment in subsidiary |
- |
- |
- |
- |
Profit before Tax |
19,590.49 |
15,384.00 |
56,659.83 |
67,411.84 |
Less: Tax expense |
2,215.60 |
3,515.76 |
11,894.97 |
13,483.92 |
Profit After Tax |
17,374.89 |
11,868.24 |
44,764.86 |
53,927.91 |
Other Comprehensive Income |
-212.59 |
46.79 |
2,003.24 |
687.9 |
Total Comprehensive Income |
17,162.30 |
11,915.03 |
46,768.10 |
54,615.81 |
Attributable to: |
||||
Shareholders of the Company |
17,115.89 |
11,915.03 |
46,768.10 |
54,615.81 |
Non-controlling interests |
- |
- |
- |
- |
Retained earnings - opening balance |
22,300.43 |
11,785.50 |
85,192.45 |
32,617.85 |
Add: Profit for the Year |
17,374.89 |
11,868.24 |
44,764.86 |
53,927.91 |
Less: Dividend and dividend tax |
-10,859.64 |
-1353.31 |
-10,859.64 |
-1353.31 |
Less: Adjustment of tax relating to PY''s |
-46.41 |
- |
- |
- |
Retained earnings - closing balance |
28,769.27 |
22,300.43 |
1,19,097.67 |
85,192.45 |
Earnings per Share (EPS) -Basic |
12.89 |
8.75 |
33.05 |
39.77 |
Earnings per Share (EPS)-Diluted |
12.89 |
8.75 |
33.04 |
39.74 |
Revenue grew by 4.6% YoY to ^3,35,455.49 lakhs primarily driven by combination of increased wallet share from our existing business, change in ILD pricing, growth in WhatsApp and other channels, new customer additions and creation of new revenue stream Trubloq.
Cost of services grew by 9.57% YoY to ^2,51,783.40 lakhs.
Net profit decreased by 17% YoY to ^44,764.86 lakhs and EPS decreased by 17% to ^33.05.
Revenue decreased by 7.87% to ^1,14,871.87 lakhs YoY. Cost of services decreased by 5.47% to ^97,303.04 lakhs YoY.
Net profit increased by 46 (%) to ^17,374.89 lakhs YoY. Earnings per share (EPS) increased 47% to ^12.89 YoY.
Dividend
The Company recommended / declared dividend as under:
Revenue from |
FY. 2022-23 |
|
operations Other income |
Dividend per share (in ^ ) |
Dividend payout (in ^ crores) |
Interim dividend |
6 |
81.45 |
*Final dividend |
4 |
53.76 |
Total dividend |
10 |
135.21 |
*Recommended by the Board of Directors at its meeting held on April 26, 2023. The payment is subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company.
The Dividend Distribution Policy of the Company is uploaded on the Company''s website https://www.tanla.com/ media/images/Policies/DividendDistributionPolicy.pdf
Change in the nature of business
There has been no change in the nature of business carried on by the Company during the year under review.
Material changes and commitments affecting financial position between the end of the financial year and date of the report
There have been no material changes and commitments which affect the financial position of the Company that have occurred between the end of the financial year to which the financial statements relate and the date of this report, except the following:
The Company executed a Share Purchase Agreement with ValueFirst Digital Media Private Limited ("VF Digital India") and its shareholders on June 8, 2023, and completed acquisition of 100% of paid-up share capital of VF Digital India on July 3, 2023. Pursuant to completion of this acquisition,
VF Digital India becomes a wholly owned subsidiary of Tanla Platforms Limited with effect from July 3, 2023.
The closing balance of the retained earnings of the Company as on March 31, 2023, after appropriations of dividend paid was ^28,769.28 lakhs.
Particulars of Loans, Guarantees or Investments
Details of Loans, Guarantees, Investments under the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014 as of March 31, 2023 form part of the notes to the financial statements provided in this Annual Report.
Your Company has not accepted any deposit from the public under Chapter V of the Act or under the corresponding provisions of Section 73 and 74 of the Companies Act, 2013, and no amount of principal or interest was outstanding as on the date of the Balance Sheet.
Particulars of contracts or arrangements made with related parties
All related party transactions that were entered into during the financial year were on an arms'' length basis and were in the ordinary course of business. There were no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.
None of the Directors had any pecuniary relationship or transactions with the Company, other than to the extent of their shareholding and except the payments made to them in the form of remuneration/sitting fee.
In accordance with Section 134(3)(h) of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014, the particulars of contract or arrangement entered into, if any, by the Company with related parties referred to in Section 188(1) in Form AOC-2 is attached as "Annexure -1 ".
During the financial year under review the Authorised Share Capital of the Company is Rs. 20,00,00,000/-divided into 20,00,00,000 equity shares of Re.1/-each.
The paid up share capital details for the FY''23: |
||||
Particular |
March 31, 2023 |
March 31, 2022 |
||
No. of Shares |
Rs. |
No. of Shares |
Rs. |
|
Shares outstanding at the beginning of the year |
13,57,45,523 |
13,57,45,523 |
13,60,36,450 |
13,60,36,450 |
Add: Issued and allotted during the year |
71,500 |
71,500 |
4,14,750 |
4,14,750 |
Less: Shares bought back during the year |
14,16,666 |
14,16,666 |
7,05,677 |
7,05,677 |
Shares outstanding at the end of the year |
13,44,00,357 |
13,44,00,357 |
13,57,45,523 |
13,57,45,523 |
The Company has one class of equity shares of Re. 1/- each fully paid-up. Each shareholder is eligible for one vote per equity share held. As on March 31, 2023, the paid-up equity share capital of the Company was Rs. 13,44,00,357/- |
Subsidiary, Associate & Joint Venture (JV) Companies
As on March 31, 2023, company has 5 direct subsidiaries and 3 step-down subsidiaries. There has been no material change in the nature of the business of the subsidiaries.
The changes in subsidiaries during the year is included in the Consolidated financial statements of the Company.
⢠Tanla Digital Labs Private Limited, (WoS of Tanla Platforms Limited) incorporated a WoS named Tanla Digital Labs Private Limited in the London, United Kingdom on June 22, 2022, which was subsequently renamed as Tanla Digital Labs UK Private Limited on August 9, 2022.
⢠Capitalsiri Investments Private Limited was under liquidation process. NCLT order of liquidation was received on May 25, 2023.
⢠ValueFirst Digital Media Private Limited was acquired by Tanla Platforms Limited on July 03,
2023 and it became a wholly owned subsidiary of your Company with effect from July 03, 2023.
Further, Pursuant to the provisions of Section 129(3) of the Act a statement containing the salient features of the financial statements of our subsidiaries in the prescribed format AOC-1 is appended as Annexure - 2 to the Board''s report.
In accordance with Section 136 of the Companies Act,
2013, the audited financial statements, including the Consolidated financial statements and related information of the Company and audited accounts of each of its subsidiaries, are available on our website under Subsidiaries section. https://www.tanla.com/investors.html.
Management Discussion and Analysis
Business Overview and Outlook and the state of the affairs of the Company and the Industry in which it operates, is discussed in detail in the section relating to Management Discussion & Analysis which forms part of this Report.
Insurance
All the properties and insurable interests of the Company including buildings have been fully insured.
Share Based Employee Benefit Schemes/Plans
The Company has implemented below Employee Benefit Schemes/Plans:
1. Tanla Platforms Limited - Restricted Stock Unit Plan 2021 (RSU 2021)
2. Tanla Solutions Limited - Employee Stock Option Plan 2015-16 (ESOP 2015-16)
3. Tanla Employee Stock Purchase Scheme 2018 (ESPS 2018)
As on March 31, 2023, there are no outstanding options in ESOP 2015-16 & ESPS 2018. The Company issued fresh grants only under RSU 2021.
The details of RSU, ESOP and ESPS pursuant to Section 62 of the Companies Act, 2013 read with Rules made thereunder and SEBI (Share Based Employee Benefits and Sweat Equity) Regulations,
2021 are provided in Annexure - 3(i) to this Report.
The disclosure as required under Regulation 14 of SEBI Circular CIR/CFD/POLICYCELL/2/2015 dated 16th June,
2015 is also available on the website of the Company and can be accessed at https://www.tanla.com/media/images/ Investor/fy2023/ESOPESPSDisclosureFY2022-23.pdf.
The Certificate from Secretarial Auditor of the Company as required under SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and any amendments thereto, with regard to Company''s RSU, ESOP and ESPS Scheme is provided as Annexure - 3(ii) to this Report.
Corporate Governance
Corporate Governance reflects the culture, values, and policies of Tanla. Realizing the criticality of sound corporate governance practices to enhance shareholder and stakeholder trust, Tanla observes the highest level of ethics in all its dealings.
To meet our obligation towards our shareholders and other stakeholders, Tanla has a corporate culture of conscience and consciousness, integrity, transparency and accountability for efficient and ethical conduct
of business. Apart from complying with the statutory requirements, effective systems and practices towards improving transparency; internal controls and promotion of ethics at workplace have been institutionalized.
At Tanla, we firmly believe that corporate governance standards should go beyond the law and must satisfy the spirit of law and not just the letter of law.
Report on Corporate Governance
The report on Corporate Governance for the year ended March 31, 2023, pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, forms part of this annual report(Annexure-4).
A Compliance certificate on Corporate Governance for the FY''23, from Mr. Mahadev Tirunagari, Company Secretary in Practice & Insolvency Professional (CP No. 7350) confirming compliance with the conditions of Corporate Governance is attached to the report on Corporate Governance Report as Annexure -4(i).
Board Meetings held during the year
The Board of Directors of the Company duly met seven (7) times during the financial year. The intervening gap between any two consecutive Board Meetings was within the period prescribed under the provisions of the Companies Act, 2013.
The details of Board meetings and the attendance of the Directors are provided in the Corporate Governance Report which forms part of this Annual Report.
Committees of the Board of Directors
As on March 31, 2023, the Board had five committees: the Audit Committee, the Corporate Social Responsibility Committee, the Nomination and Remuneration Committee, the Risk Management Committee, the Stakeholder''s Relationship Committee and ESG Council. All the Committees are constituted in compliance with the provisions the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
During the year, all recommendations made by the committees were approved by the Board.
A detailed note on the Board and its Committees is provided under the Corporate Governance Report which forms part of this Annual Report.
Company''s Policy on Directors'' appointment and remuneration
The current policy is to have an appropriate mix of executive, non-executive and independent directors to maintain the independence of the Board and separate its functions of governance and management.
As of March 31, 2023, the Board had six (6) members, two (2) of whom are executive directors, one (1) non-executive and non-independent directors and three (3) independent directors including One(1) woman independent director on the Board.
The details of Board and committee composition, tenure of directors, areas of expertise and other details are available in the corporate governance report that forms part of this Annual Report.
The NRC policy formulates the criteria for determining qualifications, competencies, positive attributes and independence for the appointment of a director (executive / non-executive) and also the criteria for determining the remuneration of the directors, KMP, senior management and other employees. The charter of the Committee with detailed terms of reference and the policy for determining the remuneration of the Directors, KMP''s and other employees is available on our website https://www.tanla.com/media/images/ Policies/Nomination_and_Remuneration_Policy.pdf
We affirm that the appointment/reappointment of the directors are as per the terms laid out in the Nomination and Remuneration Policy of the Company.
The parameters and the process for evaluation of the performance of the Board and its Committees have been explained in the Corporate Governance Report which forms part of this Annual Report.
Directors'' and officers'' ( D & O) liability insurance
The company has procured D & O liability insurance policy that covers the members of the Board including the Independent Directors for such quantum and risks as determined by its Board of Directors.
Declaration from Independent Directors
The Independent Directors have submitted the requisite declaration of independence, pursuant to Section 149 (7) of the Companies Act, 2013 stating that they meet the criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013 read with sub rule (1) and (2) of Rule 6 of Companies (Appointment and Qualification of Directors) Rules, 2014 as amended and Regulation 16 & 25 of the SEBI (LODR) Regulations) 2015.
The Independent Directors have also confirmed that they have complied with the Company''s code of conduct.
Familiarization Program for Independent Directors
In terms of Clause 25(7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of the familiarization program of the Independent Directors are available on the website of the Company i.e., https://www.tanla.com/media/images/Policies/ Familiarisation_Programme_for_IDs.pdf.
A separate meeting of the Independent Directors was held on March 21, 2023.
The composition of the Board of Directors as on March 31, 2023. |
||||
S. No. |
Name of the Director |
Category |
Designation |
|
1. |
Mr. D. Uday Kumar Reddy |
Executive |
Executive Chairman & CEO |
|
2. |
Mr. Deepak Satyaprakash Goyal |
Executive |
Whole-time Director |
|
3. |
Ms. Amrita Gangotra |
Independent |
Independent Director |
|
4. |
Mr. Rahul Khanna |
Independent |
Independent Director |
|
5. |
Mr. Rohit Bhasin |
Independent |
Independent Director |
|
6. |
Mr. Sanjay Kapoor |
Non-Executive |
Non-Executive Director |
|
Retirement and Resignation Changes in board composition are tabled hereunder: |
||||
S. No. |
Name of the Director |
Nature of change |
Date of change |
|
1. |
Mr. Sanjay Baweja |
Cessation on completion of his term as an Independent Director. |
August 26, 2022 |
|
2. |
Dr. A.G. Ravindranath Reddy |
Resigned as Director |
September 8, 2022 |
The Board of Directors places on record its sense of gratitude and appreciation for the valuable guidance and services provided by Mr. Sanjay Baweja and Dr. AG Ravindranath Reddy during their tenure as Directors of the Company.
Apart from the above, there were no changes in the Directors and KMP during the financial year ended March 31, 2023.
As per the provisions of section 152 of the Companies Act, 2013 and the rules framed there under and in terms of the Articles of Association of the Company, Mr. D. Uday Kumar Reddy, Founder Chairman & CEO (DIN: 00003382), retires as Director at the ensuing Annual General Meeting by rotation and being eligible offered himself for reappointment.
Based on performance evaluation and the recommendation of the Nomination and Remuneration Committee, the Board recommends his reappointment.
Internal Financial Control and their adequacy
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, safeguarding of its assets, prevention and detection of fraud, error reporting mechanisms, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, including the audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by management and the relevant board committees, including the audit committee, the Board is of the opinion that the Company''s internal financial controls
were adequate and effective during the Financial Year 202223. Please refer Internal control systems and adequacy" in the Management Discussion and Analysis report.
Code for Prevention of Insider Trading
Your Company has adopted a Code of Conduct to regulate, monitor and report trading by designated persons and their immediate relatives as per the requirements under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. This Code of Conduct also includes code for practices and procedures for fair disclosure of unpublished price sensitive information which has been made available on the Company''s website at https://www.tanla.com/media/images/Policies/Code_for_ Disclosure_of_Unpublished_Price_Sensitive_Information. pdf
Whistle Blower Policy/Vigil Mechanism
Pursuant to the requirement of the Companies Act, 2013 and of Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has a Whistle Blower Policy and has established the necessary Vigil Mechanism for directors and employees to report concerns about unethical behaviour. The said Policy provides for adequate safeguard against victimization of directors/employees who avail of such
mechanism and provides access to the Chairman of Audit Committee in exceptional cases. No person has been denied access to the Chairman of the Audit Committee.
The Whistle Blower Policy has been placed on website of the Company and web link thereto is https://www.tanla. com/media/images/Policies/Whistle_Blower_Policy.pdf
During the year, there were no whistle blower complaints received by the Company.
The Company had 312 employees as of March 31,
2023. The Company affirms that remuneration to the Directors and Key Managerial Personnel is as per the remuneration policy of the Company.
The percentage increase in remuneration, ratio of remuneration of each director and key managerial personnel (KMP) (as required under the Companies Act, 2013) to the median of employees'' remuneration, and the list of top 10 employees in terms of remuneration drawn, as required under Section 197(12) of the Companies Act,
2013, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, form part of Annexure - 5(i) to this Board''s report.
In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 including the amendments thereto, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in Annexure - 5(ii) to this report.
The Company has established Enterprise Risk Management (ERM) process to manage risks with the objective of maximizing shareholders value.
The Board of Directors of the Company has formed a Risk Management Committee to implement and monitor the risk management Policy of the Company.
The development and implementation of the risk management policy has been covered in the Management Discussion and Analysis, which forms part of this report.
Significant and material orders passed by the Courts/ Regulators
There are no significant material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.
Pursuant to Section 92 of the Act and Rule 12 of the Companies (Management and Administration) Rules, 2014 as amended, the draft Annual Return is available on the website of the Company on the following link https://www.tanla. com/media/images/Annual/Annual_Return_2022-23.pdf
Secretarial Standards
The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India
Investor Education and Protection Fund (IEPF)
The Company on March 16, 2016 declared and paid interim dividend of Re.0.20 Paise per equity share (20%) on face value of Re.1/- per share in the FY.2015-16 and as per provisions of Section 125 of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, the amount of Rs. 5,71,427/- lying in the Unpaid Dividend account which remains unclaimed for 7 years is required to be transferred to the Investor Education and Protection Fund established by the Central Government.
Note: The Interim Dividend declared for the financial year 2015-16, which remained unclaimed for a period of seven years was Rs. 5,71,427/- and corresponding unclaimed shares 1,87,241 credited/transferred to the IEPF.
The following table provides a list of years for which unclaimed dividends and their corresponding shares would become eligible to be transferred to the IEPF on the dates mentioned below:
Financial Year |
Type of Dividend |
Dividend per share (in Rs.) |
Date of payment |
Due date to transfer to IEPF |
2015-16 |
Interim Dividend |
0.20 |
March 28, 2016 |
April 28, 2023 |
2016-17 |
Final |
0.25/- |
September 27, 2017 |
October 27, 2024 |
2017-18 |
Final |
0.30/- |
September 28, 2018 |
October 28, 2025 |
2018-19 |
Final |
0.35/- |
October 15, 2019 |
November 15, 2026 |
2020-21 |
Interim Dividend |
1/- |
September 22, 2020 |
October 22, 2027 |
2020-21 |
Final |
1/- |
October 05, 2021 |
November 05, 2028 |
2021-22 |
Final |
2/- |
August 29, 2022 |
September 29, 2029 |
2022-23 |
Interim Dividend |
6/- |
September 06 2022 |
October 06, 2029 |
28th AGM. The requirement to place the matter relating to appointment of auditors for ratification by members at every AGM has been done away by the Companies (Amendment) Act, 2017 with effect from May 7, 2018. Accordingly, no resolution is being proposed for ratification of appointment of statutory auditors at the ensuing AGM.
The Auditors'' Report for FY 2023 does not contain any qualification, reservation or adverse remark.
Internal Auditors
The Company has appointed Deloitte Touche Tohmastu India LLP as Internal Auditors for FY''22 and FY''23 to audit processes. It reports to the Audit Committee about the adequacy and effectiveness of the internal control system of your Company. The recommendations of the internal audit team on improvements required in the operating procedures and control systems are also presented to the Audit Committee, for the teams to use these tools to strengthen the operating procedures.
Secretarial Auditors
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 and Regulation 24A (1) of SEBI (LODR) Regulations, 2015 the Board had appointed Mr. Mahadev Tirunagari, Company Secretary in Practice & Insolvency Professional (CP No. 7350) as Secretarial Auditors to conduct Secretarial audit of the Company for the FY''23. The Secretarial Audit Report issued by Mr. Mahadev Tirunagari, in form MR-3 is enclosed as Annexure - 6(i) to this Annual Report.
The Secretarial Audit Report of Karix Mobile Private Limited (material unlisted wholly-owned subsidiary of the Company) issued by Mr. Mahadev Tirunagari, Company Secretary in Practice & Insolvency Professional (CP No. 7350) in form MR-3 is enclosed as Annexure - 6(ii) to this Annual Report.
Directors'' Responsibility Statement
The Directors confirm to the best of their knowledge and ability, that:
(a) in the preparation of the annual financial statements for the year ended March 31, 2023, the applicable accounting standards have been followed with no material departures;
(b) the Directors have 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 as at March 31, 2023 and of the profit of the Company for the year ended on that date;
(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) the Directors have prepared the annual financial statements on a going concern basis;
(e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and operating effectively; and
(f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
Auditors and Auditors'' ReportStatutory Auditors
At the 23rd AGM of the Company, the members approved appointment of M/s. MSKA & Associates, Chartered Accountants, Firm Registration number 105047W as Statutory Auditors of the Company for a period of 5 years from the conclusion of that AGM till the conclusion of
Secretarial Compliance Report of the Company for the FY''23 in pursuance to Regulation 24A of the SEBI(LODR) Regulations, 2015 is enclosed as Annexure - 6(iii)
There are no qualifications, reservations or adverse remarks in the Secretarial Audit Report for the Financial Year.
Reporting of frauds by auditors
During the year under review, neither the statutory auditors nor the secretarial auditor has reported to the Audit Committee, under Section 143 (12) of the Companies Act, 2013, any instances of fraud committed against the Company by its officers or employees.
Maintenance of cost records and requirement of cost audit as prescribed under the provisions of Section 148(1) of the Companies Act, 2013 are not applicable for the business activities carried out by the Company.
Corporate Social Responsibility
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company as adopted by the Board and the initiatives undertaken by the Company on CSR activities during the year under review are set out in Annexure - 7 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. For other details regarding the CSR Committee, please refer to the Corporate Governance Report, which is a part of this report.
The CSR Policy is available on the website of the Company https://www.tanla.com/media/ images/Policies/CSR_Policy.pdf
Conservation of energy, research and development, technology absorption, foreign exchange earnings and outgo.
The particulars, as prescribed under sub-section (3)(m) of Section 134 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, are enclosed as Annexure - 8 to the Board''s report, which forms part of this report.
Business Responsibility and Sustainability Report (BRSR)
SEBI had introduced new requirements for sustainability reporting by listed entities. The new reporting called the Business Responsibility and Sustainability Report (''BRSR'') has replaced the existing Business Responsibility Report. In terms of the aforesaid amendment, with effect from the financial year 2022 -23, reporting of BRSR is made mandatory for the top 1000 listed companies (by market capitalisation).
The BRSR of the Company for FY 2023 as required under SEBI (LODR) Regulations,2015 forms part of this Report Annexure-9.
Environmental, Social and Governance (ESG)
The company''s report on ESG will be uploaded as a separate report (Sustainability Report FY''23).
Proceeding under the Insolvency and Bankruptcy Code, 2016 and One Time Settlement:
During the year under review, neither any application was made, nor any proceeding is pending under the Insolvency and Bankruptcy Code, 2016 against the Company.
Further, during the Year, the Company has not made any one-time settlement.
Sexual Harassment of Women at Workplace
Pursuant to the provisions of "The Sexual Harassment of Women at Workplace (Prohibition, Prevention and Redressal) Act, 2013" ("POSH Act") the Company has framed a Policy on Prohibition, Prevention and Redressal of Sexual Harassment of Women at Workplace and matters connected therewith or incidental thereto. 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 Company has always provided a safe and harassment free workplace for every individual working in its premises through various policies 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 been actively involved in ensuring that the associates are aware of the provisions of the POSH Act and rights thereunder. During the year under review, the details of complaint received are as under:
a) number of complaints filed during the financial year: Nil
b) number of complaints disposed of during the financial year: NA
c) number of complaints pending as on end of the financial year: NA
The Board of Directors take this opportunity to place on record their appreciation to all the Stakeholders of the Company, viz., customers, investors, banks, regulators, suppliers and other business associates for the support received from them during the year under review. The Directors also wish to place on record their deep sense of gratitude and appreciation for all the employees for their commitment and contribution towards achieving the goals of the Company.
On behalf of the Board of Directors of Tanla Platforms LimitedSd/-
D. Uday Kumar Reddy Date: July 20, 2023 Founder Chairman & CEO
Place: Hyderabad (DIN: 00003382)
Mar 31, 2022
The Board of Directors are pleased to present the twenty sixth report of Tanla Platforms Limited (hereinafter referred as "Tanla" or "the Company") on the Company''s business and operations together with the audited financial statements (both standalone and consolidated) for the financial year ended March 31, 2022.
1. State of affairs and financial position
(t in Lakhs) |
||||
Particulars |
Standalone |
Consolidated |
||
2021-22 |
2020-21 |
2021-22 |
2020-21 |
|
Revenue from operations |
1,24,687.30 |
89,187.55 |
3,20,597.33 |
2,34,146.55 |
Other income |
2,731.56 |
3,082.06 |
1,612.62 |
2,193.48 |
Total Income |
1,27,418.86 |
92,269.61 |
3,22,209.95 |
2,36,340.03 |
Cost of services |
1,02,933.93 |
71,087.64 |
2,29,793.74 |
1,76,380.05 |
Operating expenses |
8,441.84 |
4,786.23 |
20,786.56 |
14,420.57 |
Depreciation |
643.59 |
711.93 |
4,085.63 |
3,956.51 |
Finance cost |
15.50 |
9.72 |
132.18 |
107.48 |
Total Expenses |
1,12,034.86 |
76,595.52 |
2,54,798.11 |
1,94,864.61 |
Profit before tax and exceptional items |
15,384.00 |
15,674.09 |
67,411.84 |
41,475.42 |
Exceptional item: Reversal of provision for impairment of investment in subsidiary |
- |
(3,972.88) |
- |
- |
Profit before Tax |
15,384.00 |
19,646.97 |
67,411.84 |
41,475.42 |
Less: Tax expense |
3,515.76 |
3,791.04 |
13,483.93 |
5,861.67 |
Profit After Tax |
11,868.24 |
15,855.93 |
53,927.91 |
35,613.75 |
Other Comprehensive Income |
46.79 |
(173.67) |
687.90 |
(535.64) |
Total Comprehensive Income |
11,915.03 |
15,682.26 |
54,615.81 |
35,078.11 |
Attributable to: |
||||
Shareholders of the Company |
11,915.03 |
15,682.26 |
54,615.81 |
35,078.11 |
Non-controlling interests |
- |
- |
- |
- |
Retained earnings - opening balance |
11,785.50 |
(2,712.55) |
32,617.85 |
(1,638.02) |
Add: Profit for the Year |
11,868.24 |
15,855.93 |
53,927.91 |
35,613.75 |
Less: Dividend and dividend tax |
(1,353.31) |
(1,357.88) |
(1,353.31) |
(1,357.88) |
Retained earnings - closing balance |
22,300.43 |
11,785.50 |
85,192.45 |
32,617.85 |
Earnings per Share (EPS)-Basic |
8.75 |
11.25 |
39.77 |
25.27 |
Earnings per Share (EPS)-Diluted |
8.75 |
11.25 |
39.74 |
25.27 |
Revenue grew by 37% YoY to ^3,20,597.33 lakhs primarily driven by combination of increased wallet share from our existing business, change in ILD pricing, faster growth in whatsApp and other non-sms channels, new customer additions and creation of new revenue stream Trubloq.
Cost of services grew by 30.3% YoY to ^2,29,793.74 lakhs. Gross margin at 28.3% and increased by 365 basis points YoY.
Net profit grew by 51.4% YoY to ^53,927.9 lakhs primarily on account of growth in revenue and improved profitability.
EPS grew by 57% to ^39.77.
Revenue grew by 39.8% to ^1,24,687.30 lakhs YoY .Cost of services grew by 44.80% to ^1,02,933.93 lakhs YoY.
Net profit decreased by 25.1 (%) to ^11,868.24 lakhs YoY. Earnings per share (EPS) decreased by 22.2% to ^8.75 YoY. Reason for the reduction in net profit and earnings per share is recognition of one-time exceptional gain on reversal of provision for impairment of investment in subsidiary of ^3,972.88 lakhs in 20-21.
During the first three months of 21-22, the second wave of coronavirus caused heavy destruction and mental disturbances to India''s population. The Company continues to prioritize employee wellbeing, health, and safety and is continuously taking extensive measures to offer timely support and care.
Company has provided financial support to the employees to meet the medical expenses for COVID treatment and conducted extensive vaccination drives for employees and their families to ensure safety and well-being of the employees and their families.
For 21-22, the Board of Directors have recommended a final dividend of f2/- per equity share of face value of f1/- each at their meeting held on April 29,
2022 as per the divident distribution policy.
The final dividend on equity shares, if approved by the members, would involve a cash outflow of ^2,714.9 lakhs.
The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") is disclosed in the Corporate Governance Report and is uploaded on the Company''s website www.tanla.com/investors.html
The closing balance of the retained earnings of the Company as on March 31, 2022, after appropriations of dividend paid was ^22,300.43 lakhs.
There is no change in the nature of business of the Company or any of its subsidiaries or joint venture, during the year under review.
There have been no material changes and commitments, which affect the financial position of the Company, that have occurred between the end of the financial year to which the financial statements relate and the date of this report. except the following:
- Tanla Digital Labs Private Limited, (WoS of Tanla Platforms Limited) incorporated a WoS. Tanla Digital Labs Private Limited in the UK on 22nd June, 2022.
Particulars of loans, guarantees and investments covered under section 186 of the Companies Act, 2013 form part of the notes to the financial statements provided in this Annual Report.
Your Company has not accepted any deposit from the public under Chapter V of the Act or under the corresponding provisions of Section 73 and 74 of the Companies Act, 2013, and no amount of principal or interest was outstanding as on the date of the Balance Sheet.
During the year, the Board of Directors reviewed the affairs of the Subsidiaries. In accordance with Sub Section (3) of Section 129 of the Companies Act, 2013, your Company has prepared the consolidated financial statements of the Company, which forms part of this annual report.
As per the provisions of Section 136 of the Companies Act, 2013 the Company has placed separate audited financial statements of its Subsidiaries on its website
www.tanla.com/investors.html. The annual accounts of the Subsidiary Companies and the related detailed information shall be made available to members seeking such information at any point of time.
The statement containing the salient features of the Subsidiaries as per subsection (3) of section 129 read withw rule 5 of Companies (Accounts) Rules, 2014 and under Rule 8 of Companies (Accounts) Rules,
2014 of the Companies Act 2013 in Form AOC -1 is annexed herewith as Annexure- 1 to this report.
All related party transactions that were entered into during the financial year were on an arms'' length basis and were in the ordinary course of business.
There were no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.
None of the Directors had any pecuniary relationship or transactions with the Company, other than to the extent of their shareholding and except the payments made to them in the form of remuneration/sitting fee.
In accordance with Section 134(3)(h) of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014, the particulars of contract or arrangement entered into, if any, by the Company with related parties referred to in Section 188(1) in Form AOC -2 is annexed herewith as Annexure- 2 to this report.
All the properties and insurable interests of the Company including buildings have been fully insured.
The CARE ratings upgraded our ratings from CARE A to CARE A positive (for long term facilities) and CARE A1 to CARE A1 (for short term facilities).
2. Business strategy and future outlook
Tanla Platforms Limited transforms the way the world collaborates and communicates through innovative CPaaS solutions. Founded in 1999, it was the first company to develop and deploy A2P SMSC in India. Today, as one of the world''s largest CPaaS players, Tanla processes more than 800 billion interactions annually and about 62% of India''s A2P SMS traffic is processed through its distributed ledger platform-Trubloq, making it the world''s largest Blockchain use case. Tanla touches over a billion lives carrying mission critical messages.
Please refer MDA report of this annual report for details on bussiness hightlights including products and platforms.
In terms of the provisions of Regulation 34 of the Listing Regulations, the Management Discussion and Analysis Report highlighting the industry structure and developments, opportunities and threats, outlook, risks and concerns etc. is furnished separately and forms part of this Annual Report.
As on March 31, 2022, company has 6 direct subsidiaries and 2 step-down subsidiaries. There has been no material change in the nature of the business of the subsidiaries. The changes in subsidiaries during the year is included in the Consolidated financial statements of the Company.
â The joint venture of the company TZ Mobile Private Limited was voluntarily liquidated under the order of National Company Law Tribunal dated March 17, 2022.
â During Q3FY22, the Company disposed its investment in Jengatron Gaming Private Limited.
â Tanla Digital Labs Private Limited, (WoS of Tanla Platforms Limited) incorporated a WoS Tanla Digital (India) Private Limited on July 2, 2021.
â Tanla Platforms Limited incorporated a WoS.
Tanla Digital (India) Private Limited on July 6,
2021 as its CSR arm to carry on CSR activities on behalf of the Company and its Subsidiaries.
â Capitalsiri Investments Private Limited, (WoS of Tanla Platforms Limited) is under liquidation.
Further, Pursuant to the provisions of Section 129(3) of the Act a statement containing the salient features of the financial statements of our subsidiaries in the prescribed format AOC-1 is appended as Annexure- 1 to the Board''s report.
In accordance with Section 136 of the Companies Act, 2013, the audited financial statements, including the Consolidated financial statements and related information of the Company and audited accounts of each of its subsidiaries, are available on our website, https://www.tanla.com/investors.html
â Under ESOP 2015 Scheme, 4,14,750 equity shares Re 1/- each were allotted to the respective allottees.
â The Company bought back 7,05,677shares of Re 1/- each.
The paid-up equity share capital of the Company as on March 31, 2022 stood at R13,57,45,523/- divided into 13,57,45,523 equity shares of Re 1/- each. The details of the share capital are as follows:
The Company has one class of equity shares of Re. 1/- each fully paid-up. Each shareholder is eligible for one vote per every equity share held. As on April 01, 2021 the paid-up equity share capital of the Company was R13,60,36,450/-
Change in the authorized, issued, subscribed and paid-up share capital
March 31, 2022 |
March 31, 2021 |
||||
Particulars |
No. of Shares |
1 ^ |
No. of Shares | |
||
Share capital |
|||||
Authorised Equity shares of Re. 1/- each : |
20,00,00,000 |
20,00,00,000 |
20,00,00,000 |
20,00,00,000 |
|
Issued, Subscribed and fully paid-up equity |
13,57,45,523 |
13,57,45,523 |
13,60,36,450 |
13,60,36,450 |
|
share of Re.1/- each fully paid-up |
|||||
@ Reconciliation of the shares outstanding at the beginning and at the end of the reporting period |
|||||
March 31, 2022 |
March 31, 2021 |
||||
Particulars |
No. of Shares |
1 ^ |
No. of Shares | |
||
Equity shares |
|||||
Shares outstanding at the beginning of the year |
13,60,36,450 |
13,60,36,450 |
14,59,71,699 |
14,59,71,699 |
|
Add: Issued and allotted during the year |
4,14,750 |
4,14,750 |
67,57,503 |
67,57,503 |
|
Less: Shares bought back during the year |
7,05,677 |
7,05,677 |
1,66,92,752 |
1,66,92,752 |
|
Shares outstanding at the end of the year |
13,57,45,523 |
13,57,45,523 |
13,60,36,450 |
13,60,36,450 |
The Buyback of Shares of the Company was approved by the Board of Directors of the Company on July 22, 2021. The Buyback Opening Date was July 29, 2021 and the Buyback Closing Date was September 01, 2021. The total number of Equity Shares bought back pursuant to the Buyback were 7,05,677 Equity Shares at a price of INR 1/- (Indian Rupees One Only) per Equity Share.
During the year, a special resolution was passed for approval of Tanla Platforms Limited - Restricted Stock Unit Plan 2021 hereinafter referred to as (RSU 21 or Plan) in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
Nomination and Remuneration Committee of the Board of Directors of the Company, inter alia, administers and monitors the RSU 21 of the Company in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
ESOP 2015 was approved by the shareholders on September 16th, 2015. ESPS 2018 was approved by the shareholders in the EGM held on September 17th, 2018. RSU 21, was approved by the shareholders through postal ballot on May 19th 2021.
The details of ESOP, ESPS & RSU pursuant to Section 62 of the Companies Act, 2013 read with Rules made thereunder and SEBI (Share Based Employee Benefits and Sweat Equity) Regulations,
2021 are provided in Annexure- 3 (i) to this Report.
The disclosure as required under Regulation 14 of SEBI Circular CIR/CFD/POLICYCELL/2/2015 dated 16th June, 2015 is also available on the website of the Company and can be accessed at www.tanla.com/investors.html.
The Certificate from Secretarial Auditor of the Company as required under SEBI (Share Based Employee Benefits and Sweat Equity) Regulations,
2021 and any amendments thereto, with regard to Company''s ESOP, ESPS & RSU Scheme is provided as Annexure- 3 (ii) to this Report.
The Company did not declare dividend during FY 2014-15, hence no unpaid/unclaimed dividend for FY 2014-15 would be transferred to the IEPF.
The details of unpaid dividend are published on the website of the company at www.tanla.com/investors.html
Corporate Governance reflects in the culture, values, and policies of Tanla. Realizing the criticality of sound corporate governance practices to enhance shareholder and stakeholder trust, Tanla observes the highest level of ethics in all its affairs.
Tanla''s corporate culture of integrity, transparency and accountability for efficient and ethical conduct of business reflects Tanla''s commitment to governance. Apart from complying with the statutory requirements, effective systems and practices towards improving transparency; implementing internal controls and encouraging ethical practices have been institutionalized at workplace.
At Tanla, we firmly believe that corporate governance standards should go beyond the law and must satisfy the spirit of law and not just the letter of the law.
The report on Corporate Governance for the year ended March 31, 2022, pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of this annual report.
A Compliance certificate on Corporate Governance for the FY 2021-22, from a Practicing Company Secretary confirming compliance with the conditions of Corporate Governance is attached to the report on Corporate Governance as Annexure- 4.
The Board of Directors of the Company duly met 8 times during the Financial Year 2021 - 22.
The intervening gap between any two consecutive Board Meetings was within the period prescribed under the provisions of the Companies Act, 2013.
The details of Board meetings and the attendance of the Directors are provided in the Corporate Governance Report (Annexure - 4).
As on March 31, 2022, the Board had five committees: the Audit Committee, the Corporate Social Responsibility and ESG Council, the Nomination and Remuneration Committee, the Risk Management Committee, and the Stakeholder''s Relationship Committee. All the Committees are constituted in compliance with the provisions the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the year, all recommendations made by the committees were approved by the Board.
A detailed note on the Board and its Committees is provided under the Corporate Governance Report which forms part of this Annual Report.
The current policy is to have an appropriate mix of executive, non-executive and independent directors to maintain the independence of the Board and separate its functions of governance and management. The policy forms part of the NRC policy of the company.
As of March 31, 2022, the Board had eight (8) members, two (2) of whom are executive directors, two (2) nonexecutive and non-independent directors and four (4) non-executive and independent directors.
There is One Woman independent director on the Board.
The details of Board and committee composition, tenure of directors, areas of expertise and other details are available in the Corporate Governance Report (Annexure - 4).
The NRC policy formulates the criteria for determining qualifications, competencies, positive attributes and independence for the appointment of a director (executive / non-executive) and also the criteria for determining the remuneration of the directors, KMP, senior management and other employees. The charter of the Committee with detailed terms of reference is available on our website https://www.tanla.com/investors.html.
We affirm that the appointment/reappointment of the director is as per the terms laid out in the Nomination and Remuneration Policy of the Company.
The parameters and the process for evaluation of the performance of the Board and its Committees have been explained in the Corporate Governance Report which forms part of this Annual Report.
The company has obtained ''D & O liability insurance'' in place that covers the members of the Board including the Independent Directors & Officers for such quantum and risks as determined by its Board of Directors.
The Independent Directors have submitted the declaration of independence stating that they meet the criteria of independence as prescribed under subsection (6) of Section 149 of the Companies Act, 2013 and Regulation 16 & 25 of the SEBI (Listing Regulations) 2015.
The Independent Directors have also confirmed that they have complied with the Company''s code of conduct.
In terms of Clause 25(7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, details of the familiarization program of the Independent Directors are available on the website of the Company i.e. www.tanla.com/investors.html
A separate meeting of the Independent Directors was held on March 02, 2022.
Pursuant to Section 134 (5) of the Companies Act,
2013, your Directors confirm that to the best of their knowledge and belief and according to the information and explanation obtained by them:
1. In the preparation of the annual accounts for the financial year ended March 31, 2022, the accounting standards have been followed along with proper explanation relating to material departures;
2. Such accounting policies as mentioned in the notes to the financial statements have been selected and applied consistently andjudgments and estimates that are reasonable and prudent made so as to give a true and fair view of the state of affairs of the Company at the end of the financial year 2021-22 and of the statement of profit and loss of the Company for that period;
3. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4. The annual accounts for the year 2021-22 have been prepared on a going concern basis;
5. That the Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively;
6. That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and effectively mentioned under various heads of the departments which are in then reporting to the Chairman & CEO.
Directors and Key Managerial Personnel
Appointment
Mr. Aravind Viswanathan was appointed as Chief Financial Officer and Key Managerial Personnel with effect from June 01, 2021.
Mr. G K Srinivas stepped down Chief Financial Officer and Key Managerial Personnel of the Company with effect from closure of the business hours on May 31, 2021.
Apart from the above, there were no changes in the Directors and KMP during the
financial year ended March 31, 2022.
As per the provisions of section 152 of the Companies Act, 2013 and in terms of Article 134 of the Articles of Association of the Company,
Mr. Deepak Goyal (DIN: 01755263), Whole-time Director, whose office is liable to retire at the 26th AGM, being eligible, seeks reappointment.
Based on performance evaluation and the recommendation of the nomination and remuneration committee, the Board recommends his reappointment.
Mr. Sanjay Baweja
Mr. Sanjay Baweja was appointed as an independent director for the first term of three years effective August, 30 2019. His office of directorship is due for retirement at the upcoming 26th General meeting. Based on the recommendation of the Nomination and Remuneration Committee and after taking into account the performance evaluation of his first term of three years and considering the knowledge, acumen, expertise, experience and the substantial contribution, the committee has recommended the appointment of Mr. Sanjay Baweja to the Board for a second term of Two (2) years.
The Board, at its meeting held on July 25, 2022, approved the reappointment of Mr. Sanjay Baweja as an independent director of the Company with effect from the 26th Annual General meeting up to the conclusion of 28th Annual General Meeting, whose office shall not be liable to retirement by rotation.
The Board recommends his reappointment to the shareholders. The notice convening the 26th AGM to be held on August, 26 2022 sets out the details.
Mr. Rohit Bhasin
Mr. Rohit Bhasin was appointed as an independent director for the first term of three years effective August, 30 2019. His office of directorship is due for retirement at the upcoming 26th General meeting. Based on the recommendation of the nomination and remuneration committee and after taking into account the performance evaluation of his first term of three years and considering the knowledge, acumen, expertise, experience and the substantial contribution, the committee has recommended the appointment of Mr. Rohit Bhasin to the Board for a second term of two (2) years.
The Board, at its meeting held on July 25, 2022, approved
the reappointment of Mr. Rohit Bhasin as an independent director of the Company with effect from the 26th Annual General meeting up to the conclusion of 28th Annual General Meeting, whose office shall not be liable to retire by rotation. The Board recommends his reappointment to the shareholders. The notice convening the 26th AGM to be held on August, 26 2022 sets out the details..
Mr. Sanjay Kapoor
Mr. Sanjay Kapoor was appointed as an nonexecutive director for the term of three years effective August, 30 2019. His office of directorship is due for retirement at the upcoming 26th General meeting. Based on the recommendation of the Nomination and Remuneration Committee and after taking into account the performance evaluation of his first term of three years and considering the knowledge, acumen, expertise, experience and the substantial contribution, the committee has recommended the appointment of Mr. Sanjay Kapoor to the Board for a next term of two (2) years.
The Board, at its meeting held on July 25, 2022, approved the reappointment of Mr. Sanjay Kapoor as an non-executive director of the Company with effect from 26th Annual General meeting up to the conclusion of 28th Annual General Meeting, whose office shall be liable to retire by rotation.
The Board recommends his reappointment to the shareholders. The notice convening the 26th AGM to be held on August, 26 2022 sets out the details..
The Company has complied with the applicable provisions of the Secretarial Standards issued by the Institute of Company Secretaries of India and notified by Ministry of Corporate Affairs.
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, safeguarding of its assets, prevention and detection of fraud, error reporting mechanisms, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, including the audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by management and the relevant board committees, including the Audit Committee, the Board is of the
opinion that the Company''s internal financial controls were adequate and effective during 21-22. Please refer Internal control systems and adequacy" in the Management Discussion and Analysis report.
The Company follows a comprehensive system of Risk Management. Your Company has adopted a procedure for identification, assessment and mitigation of probable risks. It ensures that all the risks are defined and mitigated in accordance with a well-structured risk management process.
During the year, the Risk Management Committee reviewed the elements of risk and the steps taken to mitigate the risks and in the opinion of the Board there are no major elements of risk, which has the potential of threatening the existence of the Company. A report on risk management and forms part of this annual report.
Your Company has adopted a Code of Conduct to regulate, monitor and report trading by designated persons and their immediate relatives as per the requirements under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. This Code of Conduct also includes code for practices and procedures for fair disclosure of unpublished price sensitive information which has been made available on the Company''s website at https://www.tanla.com/ media/images/Policies/Code_for_Disclosure_of_ Unpublished_Price_Sensitive_Information.pdf
Pursuant to the requirement of the Companies Act,
2013 and of Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
The Company has a Whistle Blower Policy and has established the necessary Vigil Mechanism for directors and employees to report concerns about unethical behavior. The said Policy provides for adequate safeguard against victimization of directors/employees who avail of such mechanism and provides access to the Chairman of Audit Committee in exceptional cases. No person has been denied access to the Chairman of the Audit Committee. The Whistle Blower Policy has been placed on website of the Company and web link thereto is www.tanla.com/investors.html
During the year, there were no whistle blower complaints received by the Company.
The Company had 336 employees as of March 31,
2022. The Company affirms that remuneration to the Directors and Key Managerial Personnel is as per the remuneration policy of the Company.
The percentage increase in remuneration, ratio of remuneration of each director and key managerial personnel (KMP) (as required under the Companies Act, 2013) to the median of employees'' remuneration, and the list of top 10 employees in terms of remuneration drawn, as required under Section 197(12) of the Companies Act,
2013, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, form part of Annexure - 5 to this Board''s report.
In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 including the amendments thereto, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in Annexure - 5 to this report.
Annual return
Pursuant to Section 92(3) read with Section 134(3)
(a) of the Act, the Annual Return as on March 31, 2022 will be uploaded on the Company''s website on at www.tanla.com/investors.html
5. Auditors and Auditors'' Report
At the 23rd AGM of the Company, the members approved appointment of M/s. MSKA & Associates, Chartered Accountants, Firm Registration number 105047W as Statutory Auditors of the Company for a period of 5 years from the conclusion of that AGM till the conclusion of 28th AGM. The requirement to place the matter relating to appointment of auditors for ratification by members at every AGM has been done away by the Companies (Amendment) Act,
2017 with effect from May 7, 2018. Accordingly, no resolution is being proposed for ratification of appointment of statutory auditors at the AGM.
The Auditors'' Report for fiscal 2022 does not contain any qualification, reservation or adverse remark.
The Report forms part of this Annual Report.
The Company has appointed Deloitte Touche Tohmastu India LLP as Internal Auditors for 21-22 and 22-23 to audit processes. It reports to the Audit Committee about the adequacy and effectiveness of the internal control system of your Company. The recommendations of the internal audit team on improvements required in the operating procedures and control systems are also presented to the Audit Committee, for the teams to use these tools to strengthen the operating procedures.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules
2014 and Regulation 24A (1) of SEBI (LODR) Regulations,
2015 the Board had appointed Ms. Madhu Lakhlan, Practicing Company Secretary as Secretarial Auditors to conduct Secretarial audit of the Company for the FY 21-22. The Secretarial Audit Report issued by Ms. Madhu Lakhlan, Practicing Company Secretary in form MR-3 is enclosed as Annexure - 7 to this Annual Report.
The Secretarial Audit Report of Karix Mobile Private Limited (material unlisted wholly-owned subsidiary of the Company) issued by Ms. Madhu Lakhlan,
Practicing Company Secretary in form MR-3 is enclosed as Annexure - 8 to this Annual Report.
Pursuant to the provisions of Regulation 24A (2) of SEBI (LODR) Regulations, 2015 the Secretarial Compliance Report issued by Ms. Madhu Lakhlan, Practicing Company Secretary is enclosed as Annexure -9 to this Annual Report. The Reports does not contain any qualification, reservation, disclaimer or adverse remark.
During the year under review, neither the statutory auditors nor the secretarial auditor has reported to the Audit Committee, under Section 143 (12) of the Companies Act, 2013, any instances of fraud committed against the Company by its officers or employees, the details of which would need to be mentioned in the Board''s report.
Pursuant to Section 148(1) of the Companies Act,
2013, Cost Audit is not required for the Company for the financial year ended March 31, 2022.
There are no significant material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company as adopted by the Board and the initiatives undertaken by the Company on CSR activities during the year under review are set out in "Annexure - 10" of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. For other details regarding the CSR Committee, please refer to the Corporate Governance Report, which is a part of this report.The CSR Policy is available on the website of the Company www.tanla.com/investors.html
The SEBI (Listing Regulations) 2015 mandated the inclusion of the BRR as part of the Annual Report for the top 1,000 listed entities based on market capitalization.
In compliance with the Listing Regulations, BRR disclosure is appended as Annexure - 11 to this Report.
A report on the company''s ESG initiatives is annexed as a separate section and forms part of this Annual Report.
Human Capital
Employees are our most valuable assets and key to the success of your Company. We are committed to hiring and retaining the best talent. We always strive towards collaborative, transparent and participative organization culture, and rewarding individual contribution and innovation.
The particulars as prescribed under Sub-section (3) (m) of Section 134 of the Act, read with the Companies (Accounts) Rules, 2014, are enclosed as Annexure-6 to this Report
Pursuant to the provisions of "The Sexual Harassment of Women at Workplace (Prohibition, Prevention and Redressal) Act, 2013" ("POSH Act") the Company has framed a Policy on Prohibition, Prevention and Redressal of Sexual Harassment of Women at Workplace and matters connected therewith or incidental thereto. 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 Company has always provided a safe and harassment free workplace for every individual working in its premises through various policies 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 been actively involved in ensuring that the associates are aware of the provisions of the POSH Act and rights thereunder. During the year under review, the details of complaint received are as under:
a. number of complaints filed during the financial year: Nil
b. number of complaints disposed of during the financial year: NA
c. number of complaints pending as on end of the financial year: NA.
The Board of Directors take this opportunity to place on record their appreciation to all the Stakeholders of the Company, viz., customers, investors, banks, regulators, suppliers, partners and other business associates for the support received from them during the year under review. The Directors also wish to place on record their deep sense of gratitude and appreciation for all the employees for their commitment and contribution towards achieving the goals of the Company.
For and on behalf of the Board of Directors of Tanla Platforms Limited
(formerly known as Tanla Solutions Limited)
Sd/-
D. Uday Kumar Reddy
Place: Hyderabad
1 DIN : 00003382
Date: July 25, 2022
Mar 31, 2021
The Board of Directors are pleased to present the twenty fifth annual report of Tanla Platforms Limited (hereinafter referred as âTanlaâ or âthe Companyâ) on the Companyâs business and operations together with the audited financial statements (both standalone and consolidated) for the financial year ended March 31,2021.
The summary of standalone & consolidated financial results for the current year in comparison to the previous year is as follows:
(Rs. in Lakhs)
Standalone |
Consolidated |
|||
Particulars |
FY 2020-21 |
FY 2019-20 |
FY 2020-21 |
FY 2019-20 |
Revenue from Operations |
89,187.55 |
1,06,037.06 |
2,34,146.55 |
1,94,283.97 |
Other Income |
3,082.06 |
913.58 |
2,193.48 |
1,236.46 |
Total Income |
92,269.61 |
1,06,950.64 |
2,36,340.03 |
1,95,520.43 |
Expenses |
||||
Operating expenses |
75,883.59 |
93,987.98 |
190908.11 |
1,76,423.23[ |
Depreciation and amortisation |
711.93 |
32,070.52 |
3,956.51 |
37,779.58 |
Total Expenses |
76,595.52 |
1,26,058.50 |
1,94,864.61 |
2,14,202.81 |
Profit before Tax |
19646.97 |
(23,981.00) |
41,475.42 |
(23,724.56) |
Less: Provision for Tax incl. deferred Tax |
3791.04 |
(4,088.79) |
5861.66 |
2,608 |
Profit After Tax |
15,855.93 |
(19,892.21) |
35,613.75 |
(21,116.56) |
Other Comprehensive Income |
(173.67) |
163.26 |
(535.64) |
992.67 |
Total Comprehensive Income |
15,682.26 |
(19,728.97) |
35,078.11 |
(20,123.90) |
Attributable to: |
||||
Shareholders of the Company |
15,682.26 |
(19,728.97) |
35,078.11 |
(20,123.90) |
Non-controlling interests |
- |
- |
- |
- |
Retained earnings -opening balance Add: Profit/(Loss) for the period |
(2712.55) 15,855.93 |
17786.25 (19892.19) |
(1638.02) 35613.75 |
20085.16 (21116.57) |
Less: Dividend and dividend tax |
(1357.88) |
(606.61) |
(1357.88) |
(606.61) |
Retained earnings -closing balance Earnings per Share (EPS) |
11785.51 |
(2712.55) |
32617.85 |
(1638.02) |
Basic & Diluted |
11.25 |
(13.92) |
25.27 |
(14.77) |
The standalone revenue from operations stood at Rs. 89,187.55 Lakhs for FY21, decreased by 15.89% YoY ( Rs 1,06,037.06 Lakhs in FY20). The net profit for FY21 stood at Rs 15,855.93 Lakhs against net loss of Rs (19,892.21) Lakhs in FY20.
The consolidated revenue from operations stood at Rs 2,34,146.55 Lakhs in FY21 and grew by 20.52% YoY (Rs 1,94,283.97 Lakhs in FY20). The net profit for FY21stood at Rs 35,613.75 Lakhs during FY21 against net loss of Rs (21,116.56) Lakhs in FY20.
The second wave of Covid-19 has hit India, and hit it hard. Economic activity in India has suffered due to localised lockdowns during the second wave of Covid-19.
The Company prioritized employee well-being, health, and safety and took extensive measures to offer timely support and care. A dedicated WhatsApp chatbot was created as a helpline for all employees and many People First Initiatives were taken such as:
⢠Tanla Aid was setup to help employees with medical assistance, financial & emotional support as needed.
⢠Work from Home - Most employees were asked to work from home and all steps to ensure continued service delivery to the clients were in place.
⢠Recuperation Leave - A 30-day leave was granted to employees who battled Covid for rest and recuperation. Employees could also avail a five-day leave as caregivers to assist family members recover from the pandemic.
⢠Remote Working Assistance - An allowance to set up an ergonomic home office and stable infrastructure for making these spaces more conducive was extended to every employee.
The Companyâs business as usual serviced all its customer without any disruption and this response has reinforced customerâs confidence in Tanla for keeping their business running under most challenging conditions.
For FY 2021, based on the Companyâs performance, the Bord of Directors declared an interim dividend of Re 1/- per equity share. The Board of Directors have also recommended a final dividend of Re 1/- per equity share, taking the total dividend to Rs 2/- per equity share for FY 2021, subject to the approval of the shareholders at the ensuing AGM.
The final dividend on equity shares, if approved by the members, would involve a cash outflow of Rs.13.58 crores including dividend tax subject to corporate actions such as ongoing buyback and ESOP allotment, if any.
The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âSEBI Listing Regulationsâ) is disclosed in the Corporate Governance Report and is uploaded on the Companyâs website www.tanla.com/investors.html
The Board does not propose to transfer any profits to the reserves for the FY21.
Tanla Platforms Limited transforms the way the world collaborates and communicates through innovative CPaaS solutions. Founded in 1999, it was the first company to develop and deploy A2P SMSC in India. Today, as one of the worldâs largest CPaaS players, Tanla processes more than 800 billion interactions annually and about 62% of Indiaâs A2P SMS traffic is processed through its distributed ledger platform-Trubloq, making it the worldâs largest Blockchain use case. Tanla touches over a billion lives carrying mission critical messages meeting the needs of the worldâs largest customers. Tanla Platforms Limited is headquartered in Hyderabad, India and is expanding its presence globally.
Tanla is listed on leading Indian Stock Exchanges i.e. BSE Limited and National Stock Exchange Limited (NSE: TANLA & BSE: 532790).
⢠Wisely, the patented platform launched in January, 2021 is our latest new age digital marketplace for enterprises and mobile carriers, with a global edge to edge network delivering private, secure and trusted experiences..
⢠Trubloq is the worldâs first blockchain enabled CPaaS stack with 200B transactions processed to date since commercial launch in Sept-20, the biggest use case globally in terms of scale, transactions, and capacity.
Particulars of loans, guarantees and investments covered under section 186 of the Companies Act, 2013 form part of the notes to the financial statements provided in this Annual Report.
The Nomination and Remuneration Committee of the Board and the Board of Directors of the Company (âBoardâ) at their respective meetings held on May 17, 2021 and May 19, 2021 have approved Tanla Platforms Limited- Restricted Stock Unit Plan 2021â (âRSU 2021â / âPlanâ).
The members of the Company had approved the Plan by passing a special resolution through Postal Ballot on June 19, 2021. Salient features of the Scheme:
S. No. |
Particulars |
Details |
1 |
Total number of options/ RSUs to be granted |
The total number of RSUs to be granted under RSU 2021 shall not exceed 30,00,000 (Thirty Lakhs Only) which upon exercise shall be convertible into not exceeding 30,00,000 (Thirty Lakhs Only) equity shares of the Company of Re. 1 each fully paid up. |
This ceiling is subject to fair and reasonable adjustment in case of corporate actions like share split, issue of bonus shares, rights shares, etc. |
||
II |
Eligible classes of employees entitled to participate in the RSU 2021 |
Permanent employees and Directors, whether whole-time or otherwise, of the Company and its subsidiary companies, whether working in India or abroad, (other than Promoters / Promoters Group of the Company, Independent Directors and Directors holding directly or indirectly more than 10% of the outstanding Equity Shares of the Company) as determined by the Nomination & Remuneration Committee (Committee). |
III |
Appraisal process for determining the eligibility of Employees under RSU 2021 |
The appraisal process for determining the eligibility of the Employees shall be decided from time to time by the Committee. |
The criteria may include parameters like tenure of association with the Company/ its subsidiary, performance during the previous years, contribution towards strategic growth, contribution to team building and succession, cross-functional relationship, corporate governance and such other parameters as may be decided by the Committee. |
||
IV |
Requirements of vesting and period of vesting |
Vesting is linked to continued employment/ service and is subject to such performance parameters as the Committee may specify additionally at the time of grant of RSU. |
RSUs would vest subject to minimum vesting period of 1 (One) year, or such other minimum vesting as may be prescribed under the applicable Law/ Regulations and a maximum vesting period of 7 (Seven) years from the date of grant of such RSUs. The exact vesting schedule within this limit shall be determined by the Committee at the time of grant of RSUs. |
||
V |
Maximum period within which RSUs shall vest |
RSUs granted under the Plan shall vest not later than a maximum of 7 (Seven) years from the date of grant of RSUs. |
VI |
Exercise price or pricing formula |
The exercise price per RSU shall be the face value of underlying share as on date of exercise of such RSU. |
VII |
Exercise period |
Vested options shall be exercised by the grantee within the maximum exercise period of 1 (One) year from the date of last vesting of RSUs, or such other shorter period as may be prescribed by the Committee at time of grant. |
In case of separation from employment/ service, the Plan envisages shorter exercise periods than that specified above on basis of reason for separation. |
||
VIII |
Maximum number of RSUs to be granted per employee and in aggregate |
The maximum number of RSUs that may be granted under RSU 2021 to any eligible Employee per grant and in aggregate shall be lesser than 1% (One Percent) of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant. |
IX |
Implementation or administration of the RSU 2021 |
RSU 2021 shall be implemented and administered directly by the Company without involving any trust. |
X |
Method of option/ RSU valuation |
âFair value methodâ for valuation of RSUs as prescribed under applicable Accounting Standard notified by the competent authorities from time to |
a) Tanla Foundation (Wholly-owned section 8 subsidiary of Tanla Platforms Limited) was incorporated on July 6, 2021 to carry on CSR activities on behalf of the Company and its Subsidiaries
b) Tanla Digital (India) Private Limited (Wholly-owned subsidiary of Tanla Digital Labs Private Limited) was incorporated on July 2, 2021.
The Board of Directors at their meeting held on July 22, 2021, approved the proposal for the buyback of the Companyâs fully-paid equity shares having a face value of X 1/- each (âEquity Sharesâ), for an aggregate amount not exceeding X65,00,00,000/- (Indian Rupees Sixty Five Crores Only) excluding any expenses incurred or to be incurred for the Buyback viz. brokerage, costs, fees, turnover charges, taxes such as buyback tax, securities transaction tax, goods and services tax (if any) and income tax, stamp duty, advisors fees, printing expenses, filing fees and other incidental and related expenses and charges (âMaximum Buyback Sizeâ) and at a price not exceeding X1,260/- (Indian Rupees Twelve Hundred Sixty Only) per Equity Share (âMaximum Buyback Priceâ).
There have been no material changes and commitments other than mentioned above, which affect the financial position of the Company, that have occurred between the end of the financial year to which the financial statements relate and the date of this report.
In terms of the provisions of Regulation 34 of the Listing Regulations, the Management Discussion and Analysis Report highlighting the industry structure and developments, opportunities and threats, outlook, risks and concerns etc. is furnished separately and forms part of this Annual Report.
Pursuant to Section 134 (5) of the Companies Act, 2013, your Directors confirm that to the best of their knowledge and belief and according to the information and explanation obtained by them:
i. in the preparation of the annual accounts for the financial year ended March 31, 2021, the accounting standards have been followed along with proper explanation relating to material departures;
ii. such accounting policies as mentioned in the notes to the financial statements have been selected and applied consistently and judgments and estimates that are reasonable and prudent made so as to give a true and fair view of the state of affairs of the Company at the end of the financial year 2020-21 and of the statement of profit and loss of the Company for that period;
iii. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. the annual accounts for the financial year 2020-21 have been prepared on a going concern basis;
v. that the Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively;
vi. that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and effectively maintained under various heads of the departments who are in then, reporting to the Chairman & CEO.
There is no change in the nature of business of the Company or any of its subsidiaries or joint venture, during the year under review. Subsidiary, Associate & Joint Venture (JV) Companies
Karix Mobile Private Limited (formerly known as Tanla Corporation Private Limited) a wholly owned subsidiary of Tanla Platforms Limited (Tanla) based at Hyderabad, India is engaged in development of products and services.
A petition was filed on September 30, 2019 with the Hyderabad bench of Honâble National Company Law Tribunal (âNCLTâ) in respect of the scheme of merger of Karix Mobile Private Limited and Unicel Technologies Private Limited (âUnicelâ) with Tanla Corporation Private Limited , Whollyowned Subsidiary Company of Tanla Platforms Limited (hereinafter referred as âthe Schemeâ), the Honâble NCLT pronounced its order on June 30, 2020, approving the Scheme.
Pursuant to the order of the Honâble NCLT, Karix Mobile Private Limited and Unicel Technologies Private Limited merged into Tanla Corporation Private Limited.
Further, pursuant to the order of the Honâble NCLT and subsequent to the approval of the Registrar of Companies, Ministry of Corporate Affairs, the name of Tanla Corporation Private Limited has been changed to Karix Mobile Private Limited w.e.f. August 19, 2020.
Tanla Mobile Asia Pacific Pte Limited, Singapore (âTMAPâ), a wholly owned subsidiary of Tanla, based at Singapore, provides aggregator and offshore development services to clients in telecommunications and offshore service sectors.
Capitalsiri Investments Private Limited (âCapitalsiriâ) a wholly owned subsidiary of Tanla based at Hyderabad, India was incorporated to carry on NBFC activity. The Company has hence surrendered its NBFC license on August 02, 2019.
Gamooga Softtech Private Limited (âGamoogaâ) a wholly owned subsidiary of Tanla based at Hyderabad, India was acquired by Tanla on October 24, 2019 and is engaged in marketing automation products.
Tanla Digital Labs Private Limited (âTDLPLâ) a wholly owned subsidiary of Tanla based at Hyderabad, India was incorporated on December 18, 2019, is engaged in information technology related services.
TZ Mobile Private Limited (âTZ Mobileâ) is a joint venture of Tanla with Zed Worldwide (ZWW), Spain is under liquidation w.e.f. June 18, 2019 and awaiting final order from the NCLT, Hyderabad.
Jengatron Gaming Private Limited (âJengatronâ) an associate company of Tanla, provides a skill based mobile gaming platform.
Tanla Digital Labs FZ LLC, Dubai (UAE) was incorporated as wholly-owned subsidiary of TMAP on March 03, 2021.
Your Company has not accepted any deposit from the public under Chapter V of the Act or under the corresponding provisions of Section 73 and 74 of the Companies Act, 2013, and no amount of principal or interest was outstanding as on the date of the Balance Sheet.
The paid-up equity share capital of the Company as on March 31,2021 stood at Rs 13,60,36,450/- divided into 13,60,36,450 equity shares of Re 1/- each. The details of the share capital are as follows:
Particulars |
As at March 31,2021 |
As at March 31,2020 |
||
Number of shares |
Rs. |
Number of shares |
Rs. |
|
SHARE CAPITAL |
||||
(a) Authorised Equity shares of Re. |
20,00,00,000 |
20,00,00,000 |
20,00,00,000 |
20,00,00,000 |
1/- each |
||||
(b) Issued, Subscribed and fully paid |
13,60,36,450 |
13,60,36,450 |
14,59,71,699 |
14,59,71,699 |
up equity share of Re.1/- each fully |
||||
paid-up |
As at March 31, |
2021 |
As at March 31, 2020 |
||
Particulars |
No. of Shares |
Rs. |
No. of Shares |
Rs. |
Equity Shares Shares outstanding at the beginning of the year |
14,59,71,699 |
14,59,71,699 |
11,56,26,827 |
11,56,26,827 |
Add: Issued and allotted during the year |
67,57,503 |
67,57,503 |
3,03,44,872f |
3,03,44,872f |
Less: Shares bought back during the year |
1,66,92,752 |
1,66,92,752 |
-- |
|
Shares outstanding at the end of the year |
13,60,36,450 |
13,60,36,450 |
14,59,71,699 |
14,59,71,699 |
The Company has one class of equity shares of Re. 1/- each fully paid-up. Each shareholder is eligible for one vote per every equity share held. As on April 01, 2020 the paid-up equity share capital of the Company was Rs. 14,59,71,699/-.
⢠The Company has issued and allotted 62,85,858 equity shares of Re 1/- each under Preferential Allotment on April 03, 2020 by way of conversion of warrants.
⢠Under ESOP 2015 Scheme, 4,71,645 equity shares Re 1/- each were allotted to the respective allottees.
⢠The Company has bought back 1,66,92,752 shares of Re 1/- each.
During the year under review, the Board of Directors approved the buyback of not exceeding 1,90,12,345 Equity Shares (representing 12.49 % of the total number of Equity Shares in the existing total paid-up equity capital of the Company and 16.44 % and 13.02 % of the total number of Equity Shares in the total paid-up equity capital as of March 31,2019, and March 31,2020, respectively) at a price of INR 81/- (Indian Rupees Eighty one only) per equity share.
The buyback was approved by the shareholders of the Company by way of Postal Ballot. The total number of Equity Shares bought back pursuant to the buyback was 1,66,92,752 Equity Shares at a price of INR 81/- (Indian Rupees Eighty One Only) per Equity Share. The total amount
utilized in the buyback was Rs. 135,21,12,912/- (Rupees One Hundred and Thirty Five Crores Twenty One Lakhs Twelve Thousand Nine Hundred and Twelve only), excluding Transaction Costs.
During the year, the Board of Directors reviewed the affairs of the subsidiaries/JVâs. In accordance with Sub Section (3) of Section 129 of the Companies Act, 2013, your Company has prepared the consolidated financial statements of the Company, which form part of this annual report.
As per the provisions of Section 136 of the Companies Act, 2013 the Company has placed separate audited financial statements of its Subsidiaries on its website www.tanla.com/investors.html. The annual accounts of the Subsidiary Companies/JVâs and the related detailed information shall be made available to members seeking such information at any point of time.
The statement containing the salient features of the Subsidiaries & JVâs as per sub -sections (3) of section 129 read rule 5 of Companies (Accounts) Rules, 2014 and under Rule 8 of Companies (Accounts) Rules, 2014 of the Companies Act 2013 in Form AOC -1 is herewith annexed as Annexure - 1 to this report.
All related party transactions that were entered into during the financial year were at an armsâ length basis and were in the ordinary course of business. There were no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.
None of the Directors had any pecuniary relationship or transactions with the Company, other than to the extent of their shareholding and except the payments made to them in the form of remuneration/sitting fee.
In accordance with Section 134(3)(h) of the Companies Act, 2013 and Rule 8(2) of the Companies(Accounts) Rules, 2014, the particulars of contract or arrangement entered into, if any, by the Company with related parties referred to in Section 188(1) in Form AOC-2 is attached as âAnnexure - 2â.
During the year under review, the Company has fully utilized the amount raised by way of conversion of 62,85,858 warrants on April 03, 2020 issued through Preferential Allotment as per the objectives of the issue.
Disclosure pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 is provided as Annexure - 3 of this Report.
In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 including the amendments thereto, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in Annexure - 4 to this report.
Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31, 2021 will be uploaded on the Companyâs website at www.tanla.com/investors.html
The report on Corporate Governance for the year ended March 31,2021, pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of this annual report.
A Compliance certificate on Corporate Governance for the FY 2020-21, from a Practicing Company Secretary confirming compliance with the conditions of Corporate Governance is attached to the report on Corporate Governance.
The SEBI (Listing Regulations) 2015 mandated the inclusion of the BRR as part of the Annual Report for the top 1,000 listed entities based on market capitalization. Your company is listed at 250th position as per the market capitalization announced by NSE as on March 31, 2021. In compliance with the Listing Regulations, BRR disclosure is appended as Annexure - 5 to this Report.
The ESG Council formed in March 2021, is chaired by Mr. Rahul Khanna, Independent Director.
A key initiative approved by the ESG council is to become carbon neutral by year 2025.
Mr. Rahul Khanna (DIN:07997083) was appointed as an Additional Director under the category of Independent Director by the Board of Directors on July 17, 2020 for a period of 5 (five) years. Mr. Khanna possesses integrity and relevant proficiency, which will bring tremendous value to the Board and to the Company. The shareholders approved his appointment as an Independent Director in the 24th AGM held on September 25, 2020.
Mr. Deepak Satyaprakash Goyal (DIN: 01755263) was appointed as an Additional Director under the category of Executive Director by the Board of Directors on July 17, 2020 for a period of 5 (five) years. The shareholders approved his appointment as an Executive Director in the 24th AGM held on September 25, 2020.
Mr. Aravind Viswanathan was appointed as Chief Financial Officer of the Company w.e.f April 07, 2021 and Key Managerial Personnel of the Company w.e.f. June 01, 2021 by the Board of Directors.
Mr. G K Srinivas, stepped down as a Chief Financial Officer and Key Managerial Personnel of the Company w.e.f. closing of the business hour of May 31,2021.
Pursuant to the provisions of section 152 of the Companies Act, 2013 and in terms of Article 134 of the Articles of Association of the Company, Mr. Sanjay Kapoor, Director retires by rotation and being eligible, offers himself for reappointment at the ensuing annual general meeting. The Board recommends his reappointment.
The Independent Directors have submitted the declaration of independence stating that they meet the criteria of independence as prescribed under sub-section (6) of Section 149 of the Companies Act, 2013 and Regulation 16 & 25 of the SEBI (Listing Regulations) 2015.
The Independent Directors have also confirmed that they have complied with the Companyâs code of conduct.
In terms of Clause 25(7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of the familiarization programme of the Independent Directors are available on the website of the Company i.e. www.tanla.com/investors.html
A separate meeting of the Independent Directors was held on March 16, 2021.
The Board of Directors of the Company duly met 10 (times) during the financial year. The intervening gap between any two consecutive Board Meetings was within the period prescribed under the provisions of the Companies Act, 2013.
The details of Board meetings and the attendance of the Directors are provided in the Corporate Governance Report.
We have in place all the Committees of the Board which are required to be constituted under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Board, at its meeting held on March 12, 2021, constituted the Environment, Social and Governance (ESG) Council.
A detailed note on the Board and its Committees is provided under the Corporate Governance Report section in this Boardâs Report. Secretarial Standards:
The Company has complied with the applicable provisions of the Secretarial Standards issued by the Institute of Company Secretaries of India and notified by Ministry of Corporate Affairs.
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, safeguarding of its assets, prevention and detection of fraud, error reporting mechanisms, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, including the audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by management and the relevant board committees, including the audit committee, the Board is of the opinion that the Companyâs internal financial controls were adequate and effective during FY 2020-21. Please refer Internal control systems and adequacyâ in the Management Discussion and Analysis report.
Pursuant to the requirement of the Companies Act, 2013 and of Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has a Whistle Blower Policy and has established the necessary vigil mechanism for directors and employees to report concerns about unethical behavior. The said Policy provides for adequate safeguard against victimization of directors/employees who avail of such mechanism and provides access to the Chairman of Audit Committee in exceptional cases. No person has been denied access to the Chairman of the Audit Committee. The Whistle Blower Policy has been placed on website of the Company and web link thereto is www.tanla.com/investors.html
During the year, there were no whistle blower complaints received by the Company.
The parameters and the process for evaluation of the performance of the Board and its Committees have been explained in the Corporate Governance Report.
Pursuant to the provisions of Section 178(3) of the Companies Act, 2013, and Regulation 19 of the Listing Regulations, the Nomination and Remuneration Committee has formulated a policy relating to the nomination and remuneration for the Directors and the Key Managerial Personnel (KMP). The current policy is to have an appropriate mix of executive non-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 directorsâ appointment and remuneration, including criteria for determining qualifications, positive attributes, independence of a director and other matters are adopted as per the provisions of the Companies Act, 2013.
The remuneration paid to the Directors is as per the terms laid out in the nomination & remuneration policy of the Company. The nomination & remuneration policy is adopted by the Board and is placed on the Companyâs website at www.tanla.com/investors.html
The Company follows a comprehensive system of Risk Management. Your Company has adopted a procedure for assessment and minimization of probable risks. It ensures that all the risks are timely defined and mitigated in accordance with the well-structured risk management process.
During the year, the Risk Management Committee reviewed the elements of risk and the steps taken to mitigate the risks and in the opinion of the Board there are no major elements of risk, which has the potential of threatening the existence of the Company. A report on risk management is prepared by the Committee and forms part of this annual report.
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company as adopted by the Board and the initiatives undertaken by the Company on CSR activities during the year under review are set out in Annexure - 6 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. For other details regarding the CSR Committee, please refer to the Corporate Governance Report, which is a part of this report.
The CSR Policy is available on the website of the Company www.tanla.com/investors.html AUDITORS AND AUDITORSâ REPORT:
At the 23rd AGM of the Company, the members approved appointment of M/s. MSKA & Associates, Chartered Accountants, Hyderabad, Firm Registration number 105047W as Statutory Auditors of the Company for a period of 5 years from the conclusion of that AGM till the conclusion of 28th AGM. The requirement to place the matter relating to appointment of auditors for ratification by members at every AGM has been done away by the Companies (Amendment) Act, 2017 with effect from May 7, 2018. Accordingly, no resolution is being proposed for ratification of appointment of statutory auditors at the ensuing AGM.
The Auditorsâ Report for FY21 does not contain any qualification, reservation or adverse remark. The Report is enclosed with the financial statements in this Annual Report.
The Company has appointed Deloitte Touche Tohmastu India LLP as Internal Auditors for FY 2021-22 and FY 2022-23 to audit processes. It reports to the Audit Committee about the adequacy and effectiveness of the internal control system of your Company. The recommendations of the internal audit team on improvements required in the operating procedures and control systems are also presented to the Audit Committee, for the teams to use these tools to strengthen the operating procedures.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014, the Board had appointed Madhu Lakhlan & Company, Practicing Company Secretaries as Secretarial Auditors to conduct Secretarial audit of the Company for the FY 2020-21. The Secretarial Audit Report issued by Ms. Madhu Lakhlan, Practicing Company Secretary in form MR-3 is enclosed as Annexure - 7 to this Annual Report.
Pursuant to the provisions of Regulation 24A of SEBI (LODR) Regulations, 2015, every listed entity and its material unlisted subsidiary incorporated in India shall undertake secretarial audit and shall annex a secretarial audit report given by a Company Secretary in Practice and in such form as specified, with the annual report of the listed entity.
The Secretarial Audit Report of Karix Mobile Private Limited (material unlisted wholly-owned subsidiary of the Company) issued by Ms. Madhu Lakhlan, Practicing Company Secretary in form MR-3 is enclosed as Annexure - 8 to this Annual Report.
The Reports does not contain any qualification, reservation, disclaimer or adverse remark.
During the year under review, neither the statutory auditors nor the secretarial auditor has reported to the audit committee, under Section 143 (12) of the Companies Act, 2013, any instances of fraud committed against the Company by its officers or employees, the details of which would need to be mentioned in the Boardâs report.
Pursuant to Section 148(1) of the Companies Act, 2013, Cost Audit is not required for the Company for the financial year ended March 31, 2021. Significant and material orders passed by the Courts/Regulators:
There are no significant material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.
Ratings has been upgraded from CARE A to CARE A positive (for long term facilities) and reaffirmed CARE A1 (for short term facilities). Insurance:
All the properties and insurable interests of the Company including buildings have been fully insured.
Employees are our most valuable assets and key to the success of your Company. We are committed to hiring and retaining the best talent. We always strive towards collaborative, transparent and participative organization culture, and reward individual contribution and innovation.
The particulars as prescribed under Sub-section (3)(m) of Section 134 of the Act, read with the Companies (Accounts) Rules, 2014, are enclosed as Annexure - 9 to this Report.
Nomination and Remuneration Committee of the Board of Directors, inter alia, administers and monitors the Employeesâ Stock Option Plan of the Company in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (âSEBI Regulationsâ). There is no change in the ESOP scheme and ESPS scheme of the Company during the year.
The Company has an operative Employees Stock Option Scheme Plan 2015-16 (ESOP 2015) which provides for grant of stock options to eligible employees of the Company and Employee Share Purchase Scheme 2018 (ESPS 2018) for the employees of the Company and its subsidiaries.
ESOP 2015 was approved by the shareholders in their 19th AGM held on September 16, 2015. ESPS 2018 was approved by the shareholders in their EGM held on September 17th, 2018.
The details of ESOP and ESPS pursuant to Section 62 of the Companies Act, 2013 read with Rules made thereunder and SEBI (Share Based Employee Benefits) Regulations, 2014 as amended and erstwhile SEBI (Employeesâ Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 are provided in Annexure - 10 to this Report.
The disclosure as required under Regulation 14 of SEBI Circular CIR/CFD/POLICYCELL/2/2015 dated 16th June, 2015 is also available on the website of the Company and can be accessed at www.tanla.com/investors.html.
Pursuant to the provisions of âThe Sexual Harassment of Women at Workplace (Prohibition, Prevention and Redressal) Act, 2013â (âPOSH Actâ) the Company has framed a Policy on prohibition, prevention and redressal of sexual harassment of women at workplace and matters connected
therewith or incidental thereto. 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 Company has always provided a safe and harassment free workplace for every individual working in its premises through various policies and practices. The company always endeavours to create and provide an environment that is free from discrimination and harassment including sexual harassment. The Company has been actively involved in ensuring that the employees are aware of the provisions of the POSH Act and rights thereunder. In the year under review, the Company has not received any such complaint from any employee.
The Board of Directors takes this opportunity to place on record its appreciation to all the Stakeholders of the Company, viz., customers, investors, banks, regulators, suppliers and other business associates for the support received from them during the year under review. The Directors also wish to place on record their deep sense of gratitude and appreciation of all the employees for their commitment and contribution towards achieving the goals of the Company.
Sd/-
D. Uday Kumar Reddy
Place: Hyderabad Chairman & CEODate: August 30, 2021 Din : 00003382
Mar 31, 2018
The Directors are pleased to submit their 22 nd report together with the audited financial statements of the Company for the year ended 31st March 2018.
Summary of Financial Results
(Rs. in Lakhs)
Particulars |
Consolidated |
Standalone |
||
FY 2017-18 |
FY 2016-17 |
FY 2017-18 |
FY 2016-17 |
|
Revenue from Operations |
79,161.33 |
57,930.00 |
69,193.52 |
49,871.50 |
Other Income |
476.00 |
249.20 |
467.22 |
239.77 |
Total Income |
79,637.32 |
58,179.21 |
69,660.75 |
50,111.27 |
Expenses Operating expenses |
72,642.45 |
52,320.33 |
64,131.75 |
49,157.07 |
Depreciation |
5,733.04 |
1,959.13 |
4,891.48 |
1,105.51 |
Total Expenses |
78,375.49 |
54,279.47 |
69,023.24 |
50,262.58 |
Profit before Tax |
1,261.83 |
3,899.74 |
637.51 |
(151.31) |
Less: Provision for Tax incl. deferred Tax |
(648.96) |
(191.60) |
(671.71) |
(88.43) |
Profit After Tax |
1,910.79 |
4,091.34 |
1,309.22 |
(62.88) |
Other Comprehensive Income |
227.77 |
5.49 |
34.66 |
5.48 |
Total Comprehensive Income |
2,138.56 |
4,096.83 |
1,343.87 |
(57.40) |
Attributable to: Shareholders of the Company |
2,138.56 |
4,096.83 |
1,343.87 |
(57.40) |
Non-controlling interests |
- |
- |
- |
- |
Retained earnings - opening balance |
6,993.10 |
2,901.76 |
15,509.20 |
15,572.08 |
Add: Profit/(Loss) for the period |
1,910.79 |
4,091.34 |
1,309.22 |
(62.88) |
Less: Dividend and dividend tax |
(333.81) |
- |
(333.81) |
- |
Retained earnings - closing balance |
8,570.08 |
6,993.10 |
16,484.60 |
15,509.20 |
Earnings per Share (EPS) (?) Basic & Diluted |
1.70 |
3.81 |
1.16 |
(0.06) |
State of Companyâs Affairs
Consolidated Performance:
The Consolidated Revenue from operations at Rs.791.6 Crore grew by 37% during FY 2017-18 primarily due to increased business volumes in Cloud Communication Services, increased reach in the domestic market serving all categories of enterprises through its messaging and voice platforms stabilisation of ILD hub in Singapore, global footprints and accelerated volumes in existing markets have contributed to the achieved growth during the year. Revenue has grown at a CAGR of 66% and Profit after Tax (PAT) of 103% over the past five years.
Transfer to Reserves
The Company has not proposed to transfer any amount to the general reserve for the Financial Year ended 31st March 2018.
Dividend
During the year under review, the Board has recommended a final dividend for FY 2017-18 @ 30% of the paid-up equity share capital i.e. Rs.0.30 per fully paid-up equity share of Rs.1/- each, for your consideration and approval at the ensuing 22nd Annual General Meeting of the Company.
With the proposed final dividend, the dividend for FY 2017-18 would be Rs.0.30 per fully paid-up equity share of Rs.1/- each (30% of the paid-up value) as against the total dividend of Rs.0.25 per equity share (25% of the paid-up value) declared in the previous year 2016-17.
The dividend would result in a cash outflow of Rs.4.06 Crore including dividend distribution tax.
Operations
Tanla was, founded in 1999 and listed since 2007, started its journey as the new-millennium group of mobile messaging experts, with base in Hyderabad, India, to create a world-class messaging service. Today, Tanla is a global leader in its domain as one of the largest Cloud Communication providers, handling over 90 billion business communications annually. Tanla is innovating the way enterprises communicate, continuously raising the bar through enhanced speed, ease and simplicity of Cloud Communication solutions, adopting cutting-edge technologies backed by the best of IT setup, highly scalable cloud infrastructure, industry standard processes and world-class security (ISO 27001:2013) to meet the discerning needs of a diverse clientele, from enterprises to carriers across geographies. Tanla is a public limited company on leading Indian stock exchanges (BSE CODE: 532790 and NSE: TANLA).
Listing with Stock Exchanges
The equity shares of the Company are listed on National Stock Exchange of India Limited (NSE) and BSE Limited. The annual listing fee for the financial year 2017-18 is paid to both these exchanges.
Particulars of Loans, Guarantees or Investments
Details of loans and guarantees given and investments made under Section 186 of the Act are given in the Notes to the Financial Statements.
Material Changes and Commitments
There are no Material changes and commitments, affecting the financial position of the Company during financial year 2017-18 to which the financial statements relate and the date of signing of this report.
Management Discussion & Analysis
The Management Discussion and Analysis Report highlighting the industry structure and developments, opportunities and threats, future outlook, risks and concerns etc. is furnished separately and forms part of this Annual Report, as per the requirements of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Directorsâ Responsibility Statement as required under Section 134 of the Companies Act, 2013
The Directorsâ Responsibility Statement pursuant to the requirement of Section 134(3)(c) and 134(5) of the Companies Act, 2013 (âthe Actâ) is appended as Annexure-1 to this Report.
Consolidated Financial Results
Pursuant to Regulation 33 of SEBI (Listing Obligations & Disclosures Requirements) Regulations 2015, and the Companies Act, 2013, the Consolidated Financial Statements have been prepared as per Companies Act, 2013 and Indian Accounting Standards, duly audited forms part of the Annual Report.
Consolidated Financial Statements incorporating the operations of the Company, its subsidiaries and Joint Venture Company is appended. As required under the provisions of the Act, a statement showing the salient features of the financial statements of the subsidiaries and joint venture is enclosed in Form AOC-1 as an Annexure-2 to this Report.
The financial statements of the subsidiary companies will be made available to the members of the Company on request and will also be kept for inspection in the Registered Office of the Company.
Change in the nature of business, if any
Company has formed a new subsidiary, Capitalsiri Investments Private Limited for entering into the business of Non-Banking Financial Company and has received a certificate of registration of NBFC ND TYPE - II from the Reserve Bank of India dated May 28, 2018. Apart from entering into Non-Banking sector, there is no change in the nature of business of the Company or any of its subsidiaries or joint venture, during the year under review.
Subsidiary Companies
Tanla Corporation Private Limited, India (Earlier known as Mufithumb Corporation Private Limited), a wholly owned subsidiary of Tanla Solutions Limited based at Hyderabad, India is engaged in development of products and services.
Tanla Mobile Asia Pacific Pte Limited, Singapore (hereinafter referred to as âTanla Singaporeâ), a wholly owned subsidiary of Tanla based at Singapore, provides aggregator services to clients in telecommunications service sectors.
Capitalsiri Investments Private Limited a wholly owned subsidiary of Tanla Solutions Limited based at Hyderabad, India is engaged in NBFC activity. It received a Certificate of Registration from the Reserve Bank of India on May 28, 2018 and the Company is expected to commence its operations during the financial year 2018-19.
Safety, Health and Environment (SHE)
The Company believes that a clean environment in and around the work place fosters health and prosperity for individuals, groups and the community they belong to. The employees of Tanla are encouraged to undergo periodical medical examinations and as such certain health care schemes are an integral part of the Companyâs policy. There were nil reportable complaints or incidents during the year under review. The Companyâs policies give highest priority to safety, both occupational and general health of employees, and on environment protection.
Deposits
The Company has not accepted any deposit from the public under Chapter V of the Act or under the corresponding provisions of Section 73 and 74 of the Companies Act, 2013, and no amount of principal or interest was outstanding as on the Balance Sheet date.
Share Capital
The paid-up equity share capital of the Company as on March 31st, 2018 was Rs.1,124.22 Lakhs. During the year the Company had issued shares as detailed below:
As at March |
31, 2018 |
As at March |
31, 2017 |
|
Particulars |
Number of shares |
Rs. |
Number of shares |
Rs. |
SHARE CAPITAL (a) Authorised Equity shares of Rs.1/- each |
12,00,00,000 |
12,00,00,000 |
12,00,00,000 |
12,00,00,000 |
(b) Issued Subscribed and fully paid up: Equity Shares of Rs.1/- each fully paid-up |
11,24,21,952 |
11,24,21,952 |
10,74,85,785 |
10,74,85,785 |
11,24,21,952 |
11,24,21,952 |
10,74,85,785 |
10,74,85,785 |
Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
||
Equity Shares |
No. of Shares |
Rs. |
No. of Shares |
Rs. |
Shares outstanding at the beginning of the year |
10,74,85,785 |
10,74,85,785 |
10,14,79,593 |
10,14,79,593 |
Add: Issued and allotted during the year |
49,36,167 |
49,36,167 |
60,06,192 |
60,06,192 |
Less: Shares bought back during the year |
- |
- |
- |
- |
Shares outstanding at the end of the year |
11,24,21,952 |
11,24,21,952 |
10,74,85,785 |
10,74,85,785 |
The Company has one class of equity shares of Rs.1/- each fully paid-up. As on April 01, 2017 the paid-up share capital of the Company was Rs.10,74,85,785. For the year under review, the Company has alloted shares to the Promoters as mentioned below:
(a) 24,68,084 number of equity shares of face value Rs.1/- each to Mr. D. Uday Kumar Reddy (b) 24,68,083 number of equity shares of face value Rs.1/- each to Ms. D. Tanuja Reddy, upon conversion of preferential warrants into equity. With this allotment, both the promoters have subscribed in total to the preferential allotment of 99,99,999 warrants. During the FY 2016-17, the Promoters were alloted 50,63,832 equity shares subsequent to subscription to warrants and 9,42,360 fully paid up equity shares under Tanla ESOP Plan 2015. As on March 31st, 2018 the paid-up share capital of the Company is Rs.11,24,21,952.
(ii) Terms/Rights and restrictions attached to the equity shares:
The Company has only one class of equity shares having a face value of '' 1/-. Each shareholder is eligible for one vote per every equity share held.
(iii) The details of shareholder holding more than 5% shares in the Company:
Sl. No D Uday Kumar Reddy |
Shareholding at the beginning of the year |
Cumulative shareholding during the year |
||
No. of shares |
% of total shares of the company |
No. of shares |
% of total shares of the company |
|
1 At the beginning of the year |
1,70,28,409 |
15.84 |
- |
- |
18/05/2017 |
9,84,155 |
0.90 |
1,80,12,564 |
16.46 |
04/07/2017 |
14,83,929 |
1.34 |
1,94,96,493 |
17.57 |
At the end of the year (or on the date of separation, if separated during the year) |
1,94,96,493 |
17.34 |
Sl. No |
D Tanuja Reddy |
Shareholding at the beginning of the year |
Cumulative shareholding during the year |
|||
No. of shares |
% of total shares of the company |
No. of shares |
% of total shares of the company |
|||
2 |
At the beginning of the year |
1,18,51,187 |
11.03 |
- |
- |
|
18/05/2017 |
9,84,155 |
0.90 |
1,28,35,342 |
11.73 |
||
11/09/2017 |
14,83,928 |
1.32 |
1,43,19,270 |
12.74 |
||
At the end of the year (or on the date of separation, if separated during the year) |
1,43,19,270 |
12.74 |
Particulars of Employees
In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 including the amendments thereto, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in Annexure-4 to this report.
Disclosure pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 is provided as Annexure-3 of this Report.
Extract of the Annual Return
Pursuant to the provisions of Section 134(3) (a) of the Companies Act, 2013 and rules framed there under, an extract of the Annual Return in form MGT-9 in the prescribed format is appended as Annexure-5 to this Report. The weblink for accessing the extract of annual return is www.tanla.com.
Your Company is committed to good Corporate Governance coupled with good corporate practices. The report on corporate governance for the year ended March 31st, 2018 pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 forms part of this annual report. A Compliance Report on Corporate Governance for the year 2017-18 from a Practicing Company Secretary confirming compliance with the conditions of Corporate Governance is attached to the Report of Corporate Governance.
The Corporate Governance Report, inter-alia, contains the following disclosure:
i. Number of Board Meetings
ii. Composition of Audit Committee
iii. Composition of Nomination & Remuneration Committee
iv. Composition of Stakeholders Relationship Committee
v. Composition of Corporate Social Responsibility Committee
vi. Appointment & Remuneration Policy (for Directors, Key Managerial Personnel & Senior Management Personnel of the Company)
vii. Performance Evaluation criteria of the Board, its Committees & individual Directors.
viii. Details as required by SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015
Directors and Key Managerial Personnel
Pursuant to the provisions of Section 149 & 184 of the Companies Act, 2013 and under Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, all the Independent Directors of the Company have submitted a declaration that each of them meet the criteria of Independence as prescribed in Section 149(6) of the Act and there has been no change in the circumstances which may affect their status as an Independent Director during the year.
Pursuant to provisions of Section 203 of the Act, Mr. Dasari Uday Kumar Reddy, Chairman & Managing Director, Mr. Srinivas Gunupudi Kamoji, Chief Financial Officer and Mrs. Seshanuradha Chava, Company Secretary, are the Key Managerial Personnel (KMP) of the Company.
Mr. Gautam Sabharwal resigned as Director effective May 31, 2017 and was also reclassified from Promoter category to Public Category basis shareholders'' approval through Postal Ballot and approval from the exchanges with effect from August 04, 2017.
Apart from the above, no other Director or KMP were appointed or had retired or resigned during FY 2017-18.
Brief particulars and expertise of director seeking reappointment together with their other directorships and committee memberships have been given in the annexure to the notice of the Annual General Meeting in accordance with the requirements of the Listing Regulations and applicable Secretarial Standards.
Declaration from Independent Directors
The independent directors have submitted the declaration of independence stating that they meet the criteria of independence as provided in sub-section (6) of Section 149 of the Companies act, 2013.
Familiarisation Programme for Independent Directors
In addition to giving a formal appointment letter to the newly appointed Director on the Board, a detailed induction plan covering the role, function, duties, responsibilities and the details of compliance requirements expected from the Director under Companies Act, 2013 and relevant regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 are given and explained to the Director.
On their appointment, Independent Directors are familiarized about the Companyâs operations and businesses. Interaction with the Business Heads and key executives of the Company is also facilitated. Detailed presentations on the business of each of the division are also made to the Directors. Direct meetings with the Chairman & Managing Director are further facilitated for the new appointee to familiarize him/her about the Company/its businesses and the group practices.
A meeting of Independent Directors was held on January 24, 2018.
Board Meetings
During the year ended March 31st, 2018, four (4) Board Meetings were held. And the dates on which they were held are - May 18, 2017; July 28, 2017; October 31, 2017; January 24, 2018.
Secretarial Standards
The Company is in compliance with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.
Internal Financial Control
The Company has comprehensive internal financial control system for all major processes to ensure reliability of reporting. The system also helps management to have timely data/ feedback on various operational parameters for effective review. It also ensures proper safeguarding of assets across the Company and its economical use.
The internal financial control system of the Company is commensurate with the size, scale and complexity of its operations. The systems and controls are periodically reviewed and modified based on the requirement.
The Company has an internal audit function, which is empowered to examine the adequacy and compliance with policies, plans and statutory requirements. It is also responsible for assessing and improving the effectiveness of risk management, control and governance process. The scope of Internal Audit is well defined and documented and the Audit Committee reviews the observations of the internal audit critically. The composition and working of the audit Committee forms part of the Corporate Governance Report.
Whistle Blower Policy/Vigil Mechanism
In staying true to our values of Passion, Result-Oriented, Wellness, Transparent & Trust, Customer Success, Give back and in line with our vision of being one of the most respected companies, the Company is committed to the high standards of Corporate Governance and stakeholder responsibility.
In line with requirement of the Companies Act, 2013 and of Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Vigil Mechanism/Whistle Blower Policy has been formulated for Directors and employees to report concerns about unethical behaviour, actual or suspected fraud or violation of Companyâs Code of Conduct etc. The said Policy provides for adequate safeguard against victimization of directors/employees who avail of such mechanism and provides access to the Chairman of Audit Committee in exceptional cases. It is affirmed that no person has been denied access to the Audit Committee. The Whistle Blower Policy has been placed on website of the Company and web link thereto is www.tanla.com
During the year, no Whistle Blower complaints were received.
Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015, the Board has carried out evaluation of its own performance, the Directors individually and the Committees of the Board.
A structured questionnaire was prepared after taking into consideration inputs received from Directors, covering aspects of the Boardâs functioning such as adequacy of the Composition of Board and its Committees, execution and performance of specific duties, obligations and governance.
A separate exercise was carried out to evaluate the performance of the Individual Directors including the Chairman of the Board. The Directorsâ performance was evaluated on parameters such as level of engagement and contribution in safeguarding the interest of the Company etc.
The performance evaluation of the Independent Directors was carried out by the entire Board. Further the performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors.
Remuneration Policy:
Pursuant to the provisions of Section 178(3) of the Companies Act, 2013, and Regulation 19 of the Listing Regulations, the NRC has formulated a policy relating to the remuneration for the Directors, key managerial personnel (KMP) and other employees. The philosophy for remuneration is based on the commitment of fostering a culture of leadership with trust. While formulating this policy, the NRC has considered the factors laid down in Section 178(4) of the Companies Act, 2013, which are as under:
- That the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate Directors of the quality required to run the Company successfully;
- Relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and
- Remuneration to Directors, KMP and senior management involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the Company and its goals.
The key principles governing the Remuneration Policy are as follows:
- Market competitiveness;
- Role played by the individual;
- Reflective of size of the Company, complexity of the sector/industry/Companyâs operations and the Companyâs capacity to pay;
- Consistent with recognized best practices; and
- Aligned to any regulatory requirements.
In accordance with the policy, the Managing Director, Executive Director, KMPs and employees are paid basic salary, benefits, perquisites, allowances and annual incentive remuneration / performance linked bonus subject to achievement of certain performance criteria and such other parameters as may be considered appropriate from time to time by the Board. The performance linked bonus would be driven by the outcome of the performance appraisal process and the performance of the Company.
The policy of the Company on directorsâ appointment and remuneration, including criteria for determining qualifications, positive attributes, independence of a director and other matters are adopted as per the provisions of the Companies Act, 2013. The remuneration paid to the Directors is as per the terms laid out in the Nomination & Remuneration policy of the Company. The Nomination & Remuneration policy adopted by the Board is placed on the Companyâs website at www.tanla.com.
Risk Management
The Company has laid down the procedure for risk assessment and its mitigation through an internal Risk Committee. Key risks and their mitigation arising out of reviews by the Committee are assessed and reported to the Audit Committee on a periodic basis. The Risk Management Policy details the Companyâs objectives and principles of Risk Management along with an overview of the Risk Management processes, procedures and related roles and responsibilities.
During the year, the Board reviewed the elements of risk and the steps taken to mitigate the risks and in the opinion of the Board there are no major elements of risk, which have the potential of threatening the existence of the Company. A report on risk management is prepared by the management and forms part of this annual report.
Material Subsidiary Policy
The Company has adopted a policy for determining material subsidiary, in line with the requirements of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Policy on Material Subsidiaries is available on the website of the Company and web link thereto is www.tanla.com
Related Party Transactions
All related party transactions that were entered into during the financial year were on an armsâ length basis and were in the ordinary course of business. There were no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.
In line with the provisions of Section 177 of the Companies Act, 2013 read with the Companies (Meetings of the Board and its Power) Rules, 2014, omnibus approval for the estimated value of transactions with the related parties for the financial year ahead has been obtained from the Audit Committee. The transactions with the related parties are routine and repetitive in nature.
None of the Directors had any pecuniary relationship or transactions with the Company, other than to the extent of their shareholding and except the payments made to them in the form of remuneration/sitting fee.
In accordance with Section 134(3)(h) of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014, the particulars of contract or arrangement entered into, if any, by the Company with related parties referred to in Section 188(1) in Form AOC-2 is attached as âAnnexure-6â.
The details of related party disclosures form part of the notes to the financial statements provided in this annual report.
Audit Committee
Audit Committee of the Company meets the requirements of section 177 of the Companies Act, 2013 and Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The details of the composition of the Audit Committee as required under the provisions of Section 177(8) of the Companies Act, 2013 is given in the Corporate Governance Report furnished as part of the Annual Report. During the year under review, the Board has accepted all the recommendations of the Audit Committee.
The Audit Committee comprises of Dr. A.G.Ravindranath Reddy - Chairman, and Mr. D. Uday Kumar Reddy, Mr. Ram Narain Agarwal & Ms. Kalpana Reddy - Members.
Nomination and Remuneration cum Compensation Committee
Nomination and Remuneration cum Compensation Committee meets the requirements of section 178 ofthe Companies Act, 2013 and Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The details of the composition of the Nomination and Remuneration Committee as required under the provisions of Section 178 of the Companies Act, 2013 is given in the Corporate Governance Report furnished as part of the Annual Report. During the year under review, the Board has accepted all the recommendations of the Nomination and Remuneration Committee.
Corporate Social Responsibility Committee (CSR)
Corporate Social Responsibility Committee of the Company meets the requirements of Section 135 of the Companies Act, 2013. The details of the composition of the Corporate Social Responsibility Committee as required under the provisions of Section 135 of the Companies Act, 2013 are given in the Corporate Governance Report which forms part of this annual report.
Pursuant to the provisions of Section 135 of the Companies Act, 2013 and the Rules made thereunder, the brief outline of the Corporate Social Responsibility (âCSRâ) policy of the Company and the initiatives undertaken by the Company on the CSR activities during the year are provided elsewhere in this report in the format prescribed in the Companies (Corporate Social Responsibility) Rules, 2014. The said policy is available on the Companyâs website www.tanla.com. The CSR Report for the FY 2017-18 has been annexed as Annexure-7.
2% of the average net profits of the Company for the immediately preceding three financial years calculated as per Section 198 of the Companies Act, 2013 is Rs.4.05 lakhs and the Company has spent Rs. 4.5 lakhs on CSR activities as described in Annexure-7.
Auditors
Statutory Auditors
M/s. M.N.Rao & Associates, Chartered Accountants, the auditors of the Company have completed their term of 1 year from the date of 21st AGM until the conclusion of 22nd AGM to be held in 2018 and therefore, the Board of Directors of your Company, on the recommendation of the Audit Committee, have recommended reappointment of M/s. M.N.Rao & Associates,
Chartered Accountants, Hyderabad, Firm Registration number 005386S as Statutory Auditors of the Company for a period of 1 year from the conclusion of 22nd Annual General Meeting of the Company till the conclusion of 23rd Annual General Meeting to be held in 2019.
Internal Auditors
The Company appointed Ernst & Young LLP as the Internal Auditors for FY 2017-18 to audit specific locations and processes. It reports to the Audit Committee about the adequacy and effectiveness of the internal control system of your Company. The recommendations of the internal audit team on improvements in the operating procedures and control systems are also presented to the Audit Committee and the business to use these as tools for strengthening the operating procedures.
Secretarial Auditors
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014, the Board had appointed BS & Company Company Secretaries LLP as Secretarial Auditors to conduct Secretarial audit of the company for the financial year 2017-18. The Secretarial Audit Report issued by BS & Company Company Secretaries LLP in form MR-3 is enclosed as Annexure-8 to this Annual Report. There were nil observations / qualifications stated in the Secretarial Audit Report for FY 2017-18.
Cost Audit: Pursuant to Section 148(1) of the Companies Act, 2013, Cost Audit is not required for the Company for the financial year ended March 31st, 2018.
Auditorsâ Qualifications/reservations/adverse remarks/Frauds reported
There are no Auditorsâ qualifications or reservations or adverse remarks on the financial statements of the Company. The Auditors have not reported any frauds to the Audit Committee and/or to the Central Government as prescribed under Section 143 (12) of the Companies Act, 2013.
Significant and material orders passed by the Courts/ Regulators
There are no significant and material orders passed by the Courts or Regulators against the Company.
Rating
CARE has affirmed its rating as CARE A2
Dun & Bradstreet has affirmed its rating as 5a3
Insurance
All the properties and insurable interests of the Company including buildings have been fully insured.
Human Capital
Employees are our most valuable assets and they play a vital role in the growth of your Company. The Company places the engagement, development and retention of talent as its highest priority, to enable achievement of organizational vision. Structure, Process and Culture are the cornerstones of our Human Resource strategy and we have made strides in these areas during the last year.
With an unswerving focus on nurturing, training and retaining talent, your Company provides avenues for learning and development through function al, behavioural and lead ership training programs, communication channels for information sharing, to name a few.
The Human Resources team plays a critical role in your Companyâs talent management process. The team continues to strive to build a performance driven culture and create an environment conducive for the employeeâs growth. Your Company also believes that the human capital is of utmost importance to sustain the market leadership in all product segments and also to capture new markets.
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo:
The particulars as prescribed under Sub-section (3)(m) of Section 134 of the Act, read with Companies (Accounts) Rules, 2014, are enclosed as Annexure-9 to this Report.
Employee Stock Option Scheme (ESOP)
The Company has an operative Employees Stock Option Scheme Plan 2015 (ESOP 2015-16) which provides for grant of Stock Options to eligible employees of the Company.
Nomination and Remuneration Committee of the Board of Directors of the Company, inter alia, administers and monitors the Employeesâ Stock Option Plan of the Company in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (âSEBI Regulationsâ). There was no change in the ESOP scheme of the Company during the year.
The details of Employee Stock Options pursuant to Section 62 of the Companies Act, 2013 read with Rules made thereunder and SEBI (Share Based Employee Benefits) Regulations, 2014 and erstwhile SEBI (Employeesâ Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 are provided in Annexure-10 to this Report and there were 2,00,000* grant of options during FY 2017-18.
*These ESOPs were brought back to the pool due to resignation of employees who were granted options, but were not vested / exercised
Sexual Harassment Policy
The Company as required under the provisions of âThe Sexual Harassment of Women at Workplace (Prohibition, Prevention and Redressal) Act, 2013â has framed a Policy on Prohibition, Prevention and Redressal of Sexual Harassment of Women at Workplace and matters connected therewith or incidental thereto. 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.
In the year under review, the Company has not received any complaint under this Policy.
Acknowledgement
The Board of Directors take this opportunity to place on record their appreciation to all the Stakeholders of the Company, viz., customers, investors, banks, regulators, suppliers and other business associates for the support received from them during the year under review. The Directors also wish to place on record their deep sense of gratitude and appreciation to all the employees for their commitment and contribution towards achieving the goals of the Company.
On behalf of The Board of Directors
for Tanla Solutions Limited
Sd/-
D. Uday Kumar Reddy
Hyderabad Chairman & Managing Director
August 14, 2018 (DIN: 00003382)
Mar 31, 2015
Dear Members,
The Directors take pleasure in presenting the 19th Annual Report along
with the Audited Financial Statements for the financial year ended
March 31, 2015.
Summary of Financial Results (Standalone):
Particulars FY 2014-15 FY 2013-14
Income from Operations 1,326,117,472 257,032,965
Operating Profit (EBITDA) 110,352,965 55,863,987
Less: Depreciation 103,826,714 107,090,414
Operating Profit before Tax 6,526,251 (51,226,428)
Add: Other Income 52,077,522 54,760,885
Profit for the year before Exceptional 58,603,773 3,534,457
Items & Tax
Less: Exceptional Items - 96,809,938
Profit before Tax 58,603,773 (93,275,481)
Less: Provision for Tax incl. deferred tax 27,910,401 3,326,009
Profit after Tax 30,693,372 (96,601,490)
Net Profit transferred to Reserves 30,693,372 (96,601,490)
Earnings Per Share : Basic/ Diluted 0.30 (0.95)
(Rs. 1 each)
Share Capital 101,479,593 101,479,593
Reserves & Surplus 6,150,469,044 6,049,856,116
Total Shareholder's Funds 6,251,948,637 6,151,335,709
Book Value per Share (Rs.1 each) 61.61 60.62
State of the Company's Affairs
During the period under review, the Company has achieved revenue of
Rs.1326. 12 million and net profit of Rs. 30. 70 million on a Standalone
basis.
During the same period, the Company has achieved revenue of Rs. 2424.91
million and net profit of Rs. 25.88 million on a consolidated basis.
Transfer to Reserves
The Company has not proposed to transfer any amount to the general
reserve for the financial year ended March 31,2015.
Dividend
The Company has not declared dividend for the financial year ended
March 31,2015.
Operations
Tanla Solutions [BSE: 532790 | NSE: TANLA] founded in the year 1999
listed since 2007, a Hyderabad based Indian company is a leading
provider of telecom solutions to Mobile Operators., Tanla is the first
Indian Company to develop and deploy SMSC with all leading telcos.
Tanla serves more than 100 clients in 32 countries.
Tanla is a telecom products & solutions company that specializes in
pioneering communication roadmaps and integrating various systems of
communication for mobile technology.
Tanla is listed on the Bombay Stock Exchange (BSE) and the National
Stock Exchange (NSE) in India.
Material Changes:
There are no Material changes affecting the financial position of the
Company during financial year 2014-15.
Management Discussion & Analysis
The Management Discussion and Analysis Report highlighting the industry
structure and developments, opportunities and threats, future outlook,
risks and concerns etc., is furnished separately and forms part of this
Annual Report.
Directors Responsibility Statement as required under Section 134 of the
Companies Act, 2013
The Directors' Responsibility Statement pursuant to the provisions of
Section 134(3)(c) and 134(5) of the Companies Act, 2013 ("the Act")
is appended as Annexure A to this Report.
Consolidated Financial Results
Consolidated Financial Statements incorporating the operations of the
Company, its subsidiaries and Joint Venture Companies is appended. As
required under the provisions of the Act, a statement showing the
salient features of the financial statements of the subsidiaries and
joint ventures is enclosed as an Annexure B to this Report.
The financial statements of the subsidiary companies will be made
available to the members of the Company and its subsidiary companies on
request and will also be kept for inspection in the Registered Office
of the Company.
Subsidiary Companies
Tanla Solutions (UK) Limited, formerly Techserv Teleservices (UK)
Limited, UK (hereinafter referred to as "Tanla UK"), a wholly owned
subsidiary of Tanla based at London, UK, provides aggregator and
offshore development services to clients in telecommunications and
offshore service sectors.
Tanla Corporation Private Limited (formerly known as
Mufithumb Corporation Private Limited, India), a wholly owned
subsidiary of Tanla based at Hyderabad, India is engaged in
Board's Report
development of telecom products and services. Tanla Mobile Private
Limited (a 100% subsidiary company) was merged with Mufithumb
Corporation Private Limited (a 100% subsidiary company) with
implementation date April 01,2014 vide Honourable High Court of Andhra
Pradesh and Telangana order no. C. P of 7 & 8 of 2015 dt. April 28,
2015 and subsequently the name was changed to Tanla Corporation Private
Limited.
Tanla Mobile Asia Pacific Pte Limited, Singapore (hereinafter referred
to as "Tanla Singapore"), a wholly owned subsidiary of Tanla based at
Singapore, provides aggregator and offshore development services to
clients in telecommunications and offshore service sectors.
Tanla Mobile Ireland Pvt Limited, Ireland (hereinafter referred to as
"Tanla Ireland"), a wholly owned subsidiary of Tanla Singapore based
at Ireland, provides aggregator services to clients in the
telecommunications sector.
Tanla Mobile Middle East FZ LLC, Dubai (hereinafter referred to as
"Tanla Dubai"), a wholly owned subsidiary of Tanla Singapore based at
Dubai, UAE provides aggregator services to clients in the
telecommunications sector.
Tanla Mobile Finland Oy, Finland (hereinafter referred to as "Tanla
Finland,"), a wholly owned subsidiary of Tanla Dubai based at Finland.
Tanla Oy, Finland (hereinafter referred to as "Tanla Oy"), a wholly
owned subsidiary of Tanla Finland Oy, Finland provides payment
solutions to clients in telecommunications and allied areas.
Safety, Health and Environment (SHE)
Company's focus on Safety, Health and Environment continued during the
year under review across all locations maintaining high safety
standards. Company has put in place robust processes and performance
indicators to track its SHE performance. There were nil reportable
incidents during the year. The Company maintained high standards of
environmental performances with all facilities operating well within
norms. The Company continued its efforts to track health indicators of
its entire operating staff.
Corporate Social Responsibility
As the Company has not made profits during the preceding three (3)
years, the Company has not spent any amount on CSR activity.
Particulars of Loans, Guarantees and Investments
Details of loans and guarantees given and investments made under
Section 186 of the Act are given in the Notes to the Financial
Statements.
Public Deposits
The Company has not accepted any deposit from the public under Chapter
V of the Act or under the corresponding provisions of Section 73 and 74
of the Companies Act, 2013, and no amount of principal or interest was
outstanding as on the Balance Sheet date.
Particulars of Employees
A table containing the particulars in accordance with the provisions of
Section 197(12) of the Act, read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, is
appended as Annexure C to this Report.
A statement containing the name of every employee employed throughout
the financial year and in receipt of remuneration of Rs. 60 lakh or more,
or employed for part of the year and in receipt of Rs. 5 lakh or more a
month, under Rule 5(2) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, is enclosed as Annexure D to this
Report.
Extract of the Annual Return
In accordance with Section 134(3)(a) of the Act, an extract of the
Annual Return (MGT-9) in the prescribed format is appended as Annexure
E to this Report.
Corporate Governance
The Company is committed to maintain high standards of Corporate
Governance. As stipulated under the requirements of the Listing
Agreement with Stock Exchanges, a report on Corporate Governance is
appended to this report from a Practicing Company Secretary confirming
compliance with the conditions of Corporate Governance.
Directors and Key Managerial Personnel
In accordance with Article 121 of the Company's Articles of
Association, read with Section 152 of the Act, Mr. D Uday Kumar Reddy,
retires by rotation at the ensuing Annual General Meeting and being
eligible, offers himself for re-appointment.
Mr. Satish Kathirisetti, Director of the company resigned from the
Board w.e.f. 02nd September, 2014
All the Independent Directors of the Company have given declarations
under sub-section (6) of Section 149 of the Act, and the same have been
considered and taken on record by the Board.
Mr. D Uday Kumar Reddy, Mr. Gautam Sabharwal Mr. Satish Kathirisetti
(resigned w.e.f Sept 02, 2014), Mr G.K.Srinivas, Chief Financial
Officer and Smt. Seshanuradha Chava, Company Secretary, are the Key
Managerial Personnel (KMP) of the Company in terms of the provisions of
the Act.
Familiarisation Programme for Independent Directors
On their appointment, Independent Directors are familiarised about the
Company's operations and businesses. Interaction with the Business
Heads and key executives of the Company is also
Board's Report
facilitated. Detailed presentations on the business of each of the
Division are also made to the Directors. Direct meetings with the
Chairman & Managing Director are further facilitated for the new
appointee to familiarize him/her about the Company/its businesses and
the group practices.
Number of meetings of the Board of Directors
During the year ended March 31,2015, Five (5) Board Meetings were held.
The dates on which the Board meetings were held are - May 30, 2014;
July 08, 2014; October 17, 2014; December 27, 2014 and January 14, 2015
Internal Financial Control Systems
The Company has adequate Internal Financial Controls consistent with
the nature of business and size of the operations, to effectively
provide for safety of its assets, reliability of financial transactions
with adequate checks and balances, adherence to applicable statutes,
accounting policies, approval procedures and to ensure optimum use of
available resources. These systems are reviewed and improved on a
regular basis. It has a comprehensive budgetary control system to
monitor revenue and expenditure against approved budget on an ongoing
basis.
The Company has its own corporate internal audit function to monitor
and assess the adequacy and effectiveness of the Internal Financial
Controls and System across all key processes. Deviations are reviewed
periodically and due compliance ensured. Summary of Significant Audit
Observations along with recommendations and its implementation are
reviewed by the Audit Committee and concerns, if any, are reported to
Board.
Vigil Mechanism / Whistle Blower Policy
The Company has a Whistle Blower Policy which provides the employees,
customers, vendors and Directors an avenue to raise concerns on ethical
and moral standards and legal provisions in conduct of the business
operations of the Company. It also provides for necessary safeguards
for protection against victimization for whistle blowing in good faith.
Board Evaluation
In accordance with the provisions of the Act and Clause 49 of the
Listing Agreement, the Board has carried out evaluation of its own
performance, the performance of Committees of the Board, namely, Audit
Committee, Risk Management Committee, Stakeholders Relationship
Committee, and Nomination & Remuneration Committee and also the
Directors individually. The manner in which the evaluation was carried
out and the process adopted has been mentioned in the Report on
Corporate Governance.
The Board has, on the recommendation of the Nomination & Remuneration
Committee, framed a policy for selection and appointment of Directors,
Senior Management and their remuneration. Salient features of the
Remuneration Policy are set out in the Report on Corporate Governance.
Risk Management Policy
The Company has constituted a Risk Management Committee. Details of
constitution of the Committee and its terms of reference are set out in
the Report on Corporate Governance. The Company has formulated a Risk
Management Policy, under which various risks associated with the
business operations are identified and risk mitigation plans have been
put in place, details of which are set out in the Management Discussion
and Analysis Report.
Material Subsidiary Policy
The Company has adopted a policy for determining material subsidiary,
in line with the requirements of the Listing Agreement. The Policy on
Material Subsidiary is available on the website of the Company at
www.tanla.com
Related Party Transactions
All related party transactions that were entered into during the
financial year were on arm's length basis and were in the ordinary
course of business. There were no material significant related party
transactions made by the Company with the Promoters, Directors, Key
Managerial Personnel or the Senior Management which may have a
potential conflict with the interest of the Company at large.
The related party transactions entered into are reviewed by an
independent audit firm to confirm that they were in the ordinary course
of business and at arm's length basis. The Company has formulated a
policy for Related Party Transactions which has been approved by the
Board and is placed on the website of the Company.
None of the Directors had any pecuniary relationship or transactions
with the Company, except the payments made to them in the form of
remuneration and sitting fee.
In accordance with Section 134(3) (h) of the Companies Act, 2013 and
Rule 8(2) of the Companies (Accounts) Rules, 2014, the particulars of
contract or arrangement entered into by the Company with related
parties referred to in Section 188(1) in Form AOC-2 is attached as
"Annexure B". The details of related party disclosures form part of
the notes to the financial statements provided in this annual report.
The Audit Committee comprises of Padmabhushan Ram Narain Agarwal,
Chairman, and Dr. A.G.Ravindranath Reddy & Mr. Gautam Sabharwal,
Members. All the recommendations made by the Audit Committee were
accepted by the Board.
Statutory Auditors
M/s Ramasamy Koteswara Rao & Co., Chartered Accountants, were appointed
as Auditors of the Company for a period of three years from the
conclusion of the last Annual General Meeting held on September 30,
2014. As required under the provisions of Section 139 of the Act, a
resolution for the yearly ratification of their appointment is being
placed before the shareholders for their approval. In this regard, the
Company has received a certificate from the auditors to the effect that
if they are reappointed, it would be in accordance with the provisions
of Section 141 of the Act.
Cost Auditors
The provisions of Section 148 of the Companies Act, 2013 does not apply
to the Company and hence, no cost auditors are appointed.
Secretarial Auditor
As per the provisions of Section 204 of the Act and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules 2014, the
Board had appointed BS & Company, Company Secretaries as Secretarial
Auditor to conduct Secretarial audit of the company for the financial
year ended on March 31, 2015. Secretarial Audit Report issued by BS &
Company, Company Secretaries in form MR-3 is enclosed as a part of
Corporate Governance Report.
Secretarial Auditors have observed that, there is no Woman Director on
the Board of the Company.
The Company is in the process of identifying a suitable candidate to be
appointed as a Woman Director on Board of the Company.
Conservation of energy, technology absorption, foreign exchange
earnings and outgo
The particulars as prescribed under Sub-section (3)(m) of Section 134
of the Act, read with Companies (Accounts) Rules, 2014, are enclosed as
Annexure-F to this Report.
Employees' Stock Options
The Nomination and Remuneration Committee has cancelled the ESOP Scheme
2008 and the underlying ESOP Pool of 5,000,000 Options. The Board in
its meeting held on August 13, 2015 has
approved ESOP 2015-16 Policy to its Employees with 50 Lakh fully
paid-up Equity Shares, subject to the approval of Shareholders.
Obligation Of Company Under The Sexual Harassment Of Women At Workplace
(Prevention, Prohibition And Redressal) Act, 2013
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 2014-15:
Board's Report
No complaints have been received under this Act, during the year.
Your Directors place on record their appreciation for the services
rendered by the employees. The relation between the management and the
employees has been cordial throughout the year.
Acknowledgement
The Directors acknowledge and would like to place on record the
commitment and dedication on the part of the employees of your Company
for their continued efforts in achieving good results. The Directors
also wish to acknowledge and record their appreciation of the continued
support and assistance received by the Company's Banks, financial
institutions, mutual funds, as well as from various Government bodies
both at the Centre and the State.
On behalf of the Board of Directors
for Tanla Solutions Limited
Sd/-
D. Uday Kumar Reddy
Chairman & Managing Director
(DIN: 00003382)
Mar 31, 2014
To the Members,
The Directors submit the 18th Annual Report of Tanla Solutions Limited
along with the audited financial statements for the financial year
ended March 31, 2014.
1. Results of Operations:
Financial Performance of the Company (Standalone): Rs.
Particulars Results Results
March 31, 2014 March 31, 2013
Income from operations 257,032,965 272,186,941
Operating Profit (EBIDTA) 55,863,987 9,946,777
Less: Depreciation & amortization 107,090,414 105,732,038
Operating Profit before Tax (51,226,428) (95,785,261)
Add: Other Income 54,760,885 79,524,107
Profit for the year before Exceptional
Items & Tax 3,534,457 (16,261,154)
Less: Exceptional Items 96,809,938 9,859,244
Profit before Tax (93,275,481) (26,120,398)
Less: Provision for Tax 3,326,009 (8,353,170)
Profit after Tax (96,601,490) (17,767,228)
Dividend (incl. dividend tax) - -
Transfer to General Reserve - -
Net Profit Transferred to Reserves (96,601,490) (17,767,228)
Earnings per share : Basic / Diluted
(Rs. 1 each) (0.95) (0.18)
Dividend Rate - -
Share Capital 101,479,593 101,479,593
Reserves & Surplus 6,049,856,116 6,146,457,605
Total Shareholders'' Funds 6,151,335,709 6,247,937,198
Book value per share (Rs. 1 each) 60.62 61.57
1. Operational Performance :
Standalone
For the financial year ended March 31, 2014, the Company has recorded
operating revenues of Rs. 2,570.33 Lakhs as against Rs. 2,721.87 Lakhs
for FY ended March 31, 2013 and other income of Rs. 547.61 Lakhs for
the current year as against Rs. 795.24 Lakhs in the previous year.
Total sales decreased by 6% over the previous financial year.
Profits
For the financial year ended March 31, 2014, Profit Before Tax (PBT)
stood at Rs. (932.75) Lakhs as against Rs. (261.20) Lakhs in the
previous financial year. Profit After Tax (PAT) stood at Rs. (966.01)
as against Rs. (177.67) Lakhs in the previous financial year.
Liquidity
As on March 31, 2014, Cash and Cash Equivalents stood at Rs. 1,790.12
Lakhs as against Rs. 1,847.48 Lakhs during the previous financial year.
2. Further Issue of Equity Shares on Preferential Basis
The Company has not issued Equity Shares on Preferential Basis during
the financial year 2013-14.
3.Fixed Deposits
The Company has not accepted any public deposits during the financial
year under review and as such, no amount on account of principal or
interest on public deposits was outstanding as on the date of the
balance sheet.
4. Directors
During the year under review, Dr. A.G.Ravindranath Reddy was appointed
as Additional Director (Independent Director) on January 29, 2014 and a
notice has been received from a shareholder proposing his appointment
as a Director of the Company. The details of Directors seeking
appointment or re-appointment as required by Clause 49 of the Listing
Agreement are provided in the Notes to the Notice convening the ensuing
Annual General Meeting of the Company.
During the year under review, Dr. Sudhanshu Shekar Jamuar, Independent
Director, resigned from the Board on January 01, 2014.
5. Corporate Governance Report, Management Discussion & Analysis Report
As per Clause 49 of the Listing Agreements entered into with the Stock
Exchanges, Corporate Governance Report with Certificate from Practicing
Company Secretary thereon and Management Discussion and Analysis are
attached and form part of this report.
6. Subsidiaries
(a) As on the date of this report, the Company has the following
subsidiaries:
(i) Mufithumb Corporation Private Limited
(ii) Tanla Mobile Private Limited
(iii) Tanla Mobile Asia Pacific Pte. Ltd., Singapore
(iv) Tanla Solutions (UK) Limited , U.K.
(b) Below mentioned are the subsidiaries of Tanla Mobile Asia Pacific
Pte. Ltd., Singapore:
(i) Tanla Mobile Middle East FZ LLC, Dubai
(ii) Tanla Mobile Ireland Pvt Ltd., Ireland
(c) Tanla Oy, Finland is a subsidiary of Tanla Mobile Finland Oy,
which is a subsidiary of Tanla Mobile Middle East FZ LLC, Dubai.
(d) TZ Mobile Private Limited, incorporated in 2009 under the
provisions of the Companies Act, 1956, is a joint venture between
Tanla Solutions Limited and Zed Worldwide Holdings SL, Spain,
each holding 50% of shareholding.
(e) In 2013, an application was submitted for winding up Tanla Mobile
South Asia Pvt Ltd., and Tanla Mobile South Africa Proprietary
Ltd., South Africa, subsidiaries of Tanla Mobile Asia Pacific
Pte. Ltd., Singapore. Tanla Mobile Inc., has been liquidated
during the financial year 2013-14.
7. Subsidiary companies and consolidated financial statements
The Company had 4 subsidiaries and 4 step down subsidiary companies as
on March 31, 2014. There has been no material change in the nature of
the business of the subsidiaries.
As required under the Listing Agreement entered into with the Stock
Exchanges, consolidated financial statements of the Company is
attached. The consolidated financial statements have been prepared in
ac- cordance with the relevant accounting standards as prescribed under
section 211(3C) of the Companies Act, 1956.The consolidated financial
statements disclose the assets, liabilities, income, expenses and other
details of the Company and its subsidiaries.
Pursuant to the provision of section 212(8) of the Companies Act, 1956,
the Ministry of Corporate Affairs vide its circular dated February 8,
2011 has granted general exemption from attaching the balance sheet,
statement of profit and loss and other documents of the subsidiary
companies with the balance sheet of the Company.
A statement containing brief financial details of the Company''s
subsidiaries for the financial year ended March 31, 2014 is included in
the annual report. The annual accounts of these subsidiaries and the
related information will be made available to any member of the
Company/its subsidiaries seeking such information and are available for
inspection by any member of the Company/its subsidiaries at the
registered office of the Company.
8. Directors'' responsibility statement
Pursuant to the requirement of section 217(2AA) of the Companies Act,
1956, and based on the representations received from the operating
management, the directors hereby confirm that:
(i) in the preparation of the annual accounts for the financial year
2013-14, the applicable accounting standards have been followed and
there are no material departures;
(ii) they have 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 of the
Company for the financial year;
(iii) they have taken proper and sufficient care to the best of their
knowledge and ability for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 1956.
They confirm that there are adequate systems and controls for
safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities;
(iv) they have prepared the annual accounts on a going concern basis.
9. Particulars of Employees
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975,
as amended, no employee has been paid remuneration equal to or
exceeding the remuneration prescribed under the above mentioned rules.
10. Conservation of Energy, Research and Development, Technology
Absorption, Foreign Exchange Earnings and Outgo
(i) Conservation of Energy
While continuing to believe in philosophy of Energy saved is Energy
produced, adequate measures comensureate with the business operations
have been taken to reduce and conserve the energy consumption by
utilising energy efficient equipment wherever required.
(ii) Research & Development, Technology Absorption
We continue to focus and invest in Research & Development of New
Products and methodologies for enhancing the qauality of products and
services
(iii) Foreign Exchange earnings & outgo
The particulars regarding foreign exchange earnings and expenditure are
annexed hereto and forms part of this report.
11. Employee Stock Option
The Employee Stock Options granted in October 2009 pursuant to SEBI
(Employees Stock Option and Employee Stock Purchase Scheme) Guidelines,
1999 shall be revived during the financial year 2014-15.
12. Transfer of Unclaimed Shares to Suspense Account
In accordance with Clause 5A of the Listing Agreement entered into with
the Stock Exchanges, 870 Equity Shares held by 15 shareholders, were
held in the "Tanla Solutions Limited-Demat Suspense Account vide
DPIDCLID:IN300484 13842503 in Axis Bank Ltd., Jubilee Hills Branch,
Hyderabad as on March 31, 2014. The voting rights on these shares
shall remain frozen till the rightful owner claims the same.
13. Transfer of Unpaid/Unclaimed Dividend to the "Investor Education
and Protection Fund"
According to the provisions of Section 205A (5) of the Companies Act,
1956, unpaid and unclaimed dividend in the dividend account of the
company has to be transferred to the "Investor Education and Protection
Fund" after seven years of declaration. Shareholders are requested to
ensure that they claim the dividend(s) from the Company before transfer
to the Investor Education and Protection Fund. The seven year period of
"Un-paid and Un-Claimed dividend for the year 2006-07Â which amounts
to Rs. 2,31,820 /- (Rupees Two lakhs thirty one thousand eight hundred
and twenty only) expires on October 04, 2014 and the same will be
transferred to the "Investor Education and Protection Fund".
Financial Year Type of Dividend Date of Declaration
2006-07 Dividend of Equity Shares 29.08.2007
2007-08 Dividend of Equity Shares 29.09.2008
2008-09 Dividend of Equity Shares 30.09.2009
2009-10 Dividend of Equity Shares 30.09.2010
2010-11 Dividend of Equity Shares 30.09.2011
Financial Amount of unclaimed Last Date for Due date
Year dividend outstanding claiming unpaid for transfer
as on 31.03.2014 dividend by to IEPF
investors
2006-07 231,820 04.10.2014 03.11.2014
2007-08 201,613 03.11.2015 02.12.2015
2008-09 340,958 04.11.2016 03.12.2016
2009-10 198,515 04.11.2017 03.12.2017
2010-11 236,360 04.11.2018 03.12.2018
14. Industrial Relations
The Company enjoyed cordial relations with the employees during the
year under review and the Management appreciates the employees for
their dedicated services to the company, and expects continued support,
higher level of productivity for achieving the targets set for the
future.
15. Auditors
M/s Ramasamy Koteswara Rao & Co., Chartered Accountants, Hyderabad, who
are the Statutory Auditors of the Company, hold office till the
conclusion of the forthcoming AGM and are eligible for re-appointment.
Pursuant to the provisions of section 139 of the Companies Act, 2013
and the Rules framed there under, it is proposed to appoint M/s
Ramasamy Koteswara Rao & Co., Chartered Accountants, as statutory
auditors of the Company from the conclusion of the forthcoming AGM till
the conclusion of the twenty-first AGM to be held in the year 2017,
subject to the ratification of their appointment at every AGM.
The Independent Auditors'' Report to the Members of the Company on the
Financial Statements for the Financial Year ended March 31, 2014 does
not contain any qualification(s) or adverse observations.
16. Acknowledgement
The directors thank the Company''s employees, customers, vendors,
investors and academic institutions for their support.
The directors also thank the government of various countries,
Government of India, State Governments in India and concerned
government departments/agencies for their co-operation.
The directors appreciate and value the contributions made by every
member of the Tanla family globally.
On behalf of the Board of Directors,
Sd/-
D. Uday Kumar Reddy
Chairman & Managing Director
DIN : 00003382
Place : Hyderabad
Date : July 08, 2014
Mar 31, 2013
Dear Members''
The Directors have pleasure in presenting the 17th Directors'' Report on
the business and operations of our Company for the financial year ended
on March 31'' 2013.
1. Results of Operations Rs.
Financial performance of the Company (Standalone):
Results Results
Particulars March 31'' 2013 March 31'' 2012
Income from operations 27 21 86 941 36 83 28 675
Operating Profit (EBIDTA) 99 46 777 (65 72 494)
Less: Depreciation & amortisation 10 57 32 038 13 93 47 846
Operating Profit before Tax (9 57 85 261) (14 59 20 339)
Add: Other Income 7 95 24 107 49 18 636
Profit Before Tax (1 62 61 154) (14 10 01 703)
Less: Provision for Tax (83 53 170) (3 51 27 709)
Profit after Tax (79 07 985) (10 58 73 994)
Dividend (incl. dividend tax)
Transfer to General Reserve
Net Profit Transferred
to Reserves (79 07 985) (10 58 73 994)
Earnings per share: Basic / Diluted
(Rs. 1 each) (0.18) (1.04)
Dividend Rate
Share Capital 101479593 10 14 79 593
Reserves & Surplus 614 64 57 605 616 42 24 834
Total shareholders funds 624 79 37 198 626 57 04 427
Book value per share (Rs.1 each) 61.57 62.74
1. Operational Performance Standalone
The total income of the Company for the FY 2012-13 comprises operating
revenues of Rs. 272.1 Lakhs as against Rs. 368.3 Lakhs in FY 2011-12 and
other income of Rs. 79.5 Lakhs for the current year as against Rs. 4.9
Lakhs in the previous year. Total sales decreased by 26% over the last
financial year.
Profits
For the FY 2012-13'' Profit before Tax (PBT) stood atRs. (162.61) Lakhs as
againstRs. (1410.02) Lakhs in FY 2011-12. For the FY 2012-13'' Profit
after Tax (PAT) stood atRs. (79.07) Lakhs as againstRs. (1058.74) Lakhs for
FY 2011-12.
Liquidity
During the financial year'' cash flows have more than adequately covered
working capital requirements as well as for the capital expenditure. As
of 31 March'' 2013'' the Company has cash and cash equivalents of Rs.
2443.42 Lakhs '' as against Rs. 7135. 92 Lakhs on 31 March'' 2012.
2. Further Issue of Equity Shares on Preferential Basis
The company has not issued Equity Shares on Preferential basis during
the financial year 2012-13.
3. Public Deposits
The Company has not accepted any deposits within the meaning of Section
58A of the Companies Act'' 1956 and the rules made there under during
the financial year under review.
4. Directors
In accordance with the provisions of the Companies Act'' 1956 and
Articles of Association of the Company'' Mr. Satish Kathirisetti ''
Director - Chief Technology Officer retires by rotation at the
forthcoming Annual General Meeting and being eligible'' offer himself
for re-appointment.
A brief resume of each of Director proposed to be
appointed/re-appointed'' their expertise in specific functional areas
and names of companies in which he holds
Directorship/Membership/Chairmanship of the Board/Committees'' as
stipulated under Clause 49 of the Listing Agreement with Stock
Exchanges'' has been provided as annexure to the Notice convening
Seventeenth Annual General Meeting.
Mr. Abhishek Khaitan'' Independent Director resigned from the Board on
May 29'' 2013 after serving the Board since December 30'' 2004. The Board
places on record its sincere appreciation for the services rendered
during his tenure on Board.
5. Management Discussion and Analysis
A separate Management Discussion and Analysis Report attached elsewhere
forms an integral part of this report.
6. Subsidiaries
(a) As on the date of this Report'' the Company has the following
subsidiaries:
1. Mufithumb Corporation Private Limited (earlier known as Mufithumb
Entertainment Private Limited)
2. Tanla Mobile Private Limited
3. Tanla Mobile Asia Pacific Pte Ltd.'' Singapore
4. Tanla Solutions (UK) Limited'' UK
(b) In February 2013'' an application was submitted in the Companies
House'' UK for striking off Tanla Mobile Ltd.'' UK is a subsidiary of
Tanla Solutions (UK) Ltd.'' UK.
(c) Below mentioned are the subsidiaries of Tanla Mobile Asia Pacific
Pte Limited'' Singapore: (i) Tanla Mobile Middle East FZ LLC'' Dubai
(ii) Tanla Mobile Inc.'' USA
(iii) Tanla Mobile South Africa Proprietary Ltd.'' South Africa (iv)
Tanla Mobile South Asia Pvt Ltd.'' Sri Lanka and (v) Tanla Mobile
Ireland Pvt Ltd.'' Ireland
(d) Tanla Oy'' Finland is a subsidiary of Tanla Mobile Finland Oy'' which
is a subsidiary of Tanla Mobile Middle East FZ LLC'' Dubai.
(e) TZ Mobile Private Limited'' incorporated in July 2009 under the
provisions of the Companies Act'' 1956 is a Joint Venture between Tanla
Mobile Pvt Ltd.'' a wholly owned subsidiary of Tanla Solutions Ltd and
Zed Worldwide Holdings SL'' Spain each holding 50% of shareholding.
7. Consolidated Financial Statements
Vide General Circular No. 2/2011 dated February 08'' 2011'' the Ministry
of Corporate Affairs'' Government of India has granted a general
exemption to companies from attaching the Balance Sheet'' Profit & Loss
Account and other documents referred to in Section 212(1) of the Act in
respect of its subsidiary companies'' subject to fulfillment of the
conditions mentioned therein. Accordingly'' the said documents are not
being attached with the Balance Sheet of the Company. A gist of the
financial performance of the subsidiary companies is contained in the
report. The Annual Accounts of the subsidiary companies are open for
inspection by any member/ investor and the Company will make available
these documents/details upon request by any member of the company to
any investor of its subsidiary companies who may be interested in
obtaining the same. Further'' the Annual Accounts of the subsidiary
companies will be kept open for inspection by any investor at the
Company''s Registered Office would be posted on the website of the
company. In terms of Clause 32 of the Listing Agreement with the Stock
Exchanges and as prescribed by Accounting Standard 21 notified by the
Government of India under Section 211(3C) of the Companies Act'' 1956''
the Audited Consolidated Financial Statements duly signed by the
Statutory Auditors are annexed.
8. Directors Responsibility Statement
In terms of Section 217(2AA) of the Companies Act'' 1956'' the Board of
Directors hereby confirm that:
(i) In preparation of the Annual Accounts'' the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
(ii) Appropriate accounting policies have been applied consistently and
reasonably prudent judgements and estimates which are reasonable have
been made so as to a give true and fair view of the state of affairs of
the company as at March 31'' 2013 and of the loss of the company for the
year ended on that date.
(iii) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act'' 1956 for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities;
(iv) The annual accounts have been prepared on a "Going Concern basis".
9. Corporate Governance
Pursuant to the provisions of Clause 49 of the Listing Agreement with
Stock Exchanges'' a report on Corporate Governance together with a
certificate from M/s BS & Company'' Practicing Company Secretaries
features as part of this Annual Report.
10. Particulars of Employees
In terms of the provisions of Section 217(2A) of the Companies Act''
1956'' read with the Companies (Particulars of Employees) Rules'' 1975''
as amended'' no employee has been paid a remuneration equal to or
exceeding the remuneration prescribed under the above amended rules.
12. Conservation Of Energy'' Research And Development'' Technology
Absorption'' Foreign Exchange Earnings And Outgo
Conversation of Energy
The operations of the Company are not energy intensive. However''
adequate measures have been taken to conserve and reduce the energy
consumption by using energy efficient hardware'' usage of natural light
and other equipment. Air Conditioners are used only when required and
air-conditioned areas have been treated with heat resistant material.
We continue to evaluate new technologies and invest to conserve and
reduce energy consumption. We believe energy saved is energy produced.
Research & Development'' Technology Absorption
The company continues to invest in research and development of new
products'' processes and methodologies for improving the productivity
and quality of its products and services.
Foreign Exchange earnings and outgo
The particulars regarding foreign exchange earnings and expenditure are
annexed hereto and forms part of this report.
13. Employee Stock Option
Options were granted to employees in October 2009'' but no options were
vested with the employees pursuant to the grant.
Disclosures in compliance with Securities and Exchange Board of India
(Employees Stock Option Scheme and Employee Stock Purchase Scheme
Guidelines'' 1999) as amended'' are as under:
Nature of Disclosure Particulars
41''75''000 options were granted on October 16'' 2009'' each option gives
Options granted the grantee a right to subscribe to equity share of
face value of Re.1/- each.
At a discount of 20% on the latest available closing market price prior
to the The pricing formula date of grant of options of the company on
the exchange having the highest trading volume.
Options Vested No Options were vested during the year
Options Exercised No Options were exercised during the year
Total number of shares arising as a result of exercise of option No
Options were exercised during the year
Options lapsed No Options were vested during the year
Variation of terms of Options No variation has been done
Money realized by exercise of Options As no Options were exercised
during the year'' no money was realized.
14. Transfer of Unclaimed Shares to Suspense Account
870 Equity Shares held by 15 shareholders'' were held in the "Tanla
Solutions Limited  Demat Suspense Account" in Axis Bank Ltd.'' Jubilee
Hills Branch'' Hyderabad as on March 31'' 2013 in accordance with the
provisions of Clause 5A of the Listing Agreement. The voting rights on
these shares shall remain frozen till the rightful owner of such shares
claims the shares.
15. Transfer of Unpaid/Unclaimed Dividend to the Investor Education and
Protection Fund
According to the provisions of Section 205A (5) of the Companies Act''
1956'' unpaid and unclaimed dividend in the dividend account of the
company has to be transferred to the "Investor Education and Protection
Fund" after seven years of declaration. Hence pursuant to the
provisions of Section 205A of the Companies Act'' 1956 and other
applicable guidelines'' Rs. 85''962.50 (Rupees Eighty five thousand nine
hundred and sixty two and fifty paise only) representing the "Un-paid
and Un-Claimed dividend for the year 2005-06" has been transferred to
the "Investor Education and Protection Fund."
16. Industrial Relations
The company enjoyed cordial relations with the employees during the
year under review and the Management appreciates the employees of all
cadres for their dedicated services to the company'' and expects
continued support'' higher level of productivity for achieving the
targets set for the future.
17. Auditors and Auditor''s Report
M/s Ramasamy Koteswara Rao & Co.'' Chartered Accountants'' Hyderabad'' the
Statutory Auditors'' retire at the ensuing annual general meeting and
are eligible for re-appointment. The company received confirmation that
their appointment'' if made'' would be within the prescribed limits under
the provisions of Section 224(1B) of the Companies Act'' 1956. The
Auditors Report to the shareholders for the year ended March 31'' 2013
does not contain any qualification and therefore does not call for any
explanations/comments.
18. Acknowledgement
The Directors wish to express their appreciation of the support and
co-operation of the Central and the State Governments'' bankers''
business partners'' employees'' associates and expects the same in future
as well for sustaining the growth rates achieved in the past.
On behalf of Board of Directors
Sd/-
D. Uday Kumar Reddy
Date: August 08''2013 Chairman & Managing Director
Place : Hyderabad
Mar 31, 2012
The Directors have pleasure in presenting the 16th Directors' Report on
the business and operations of our Company for the financial year ended
on March 31, 2012.
1. Results of Operations in Rs.
Financial performance of
the Company (Standalone):
Results Results
Particulars
March 31, 2012 March 31, 2011
Income from operations 36 83 28 675 28 70 50 801
Operating Profit (EBIDTA) (65 72 494) 5 45 47 723
Less: Depreciation & amortisation 13 93 47 846 31 21 72 843
Operating Profit before Tax (14 59 20 339) (25 76 25 120)
Add: Other Income 49 18 636 53 40 458
Profit Before Tax (14 10 01 703) (25 22 84 661)
Less: Provision for Tax (3 51 27 709) (7 37 93 030)
Profit after Tax (10 58 73 994) (17 84 91 631)
Dividend (incl. dividend tax) - 1 18 33 408
Transfer to General Reserve - -
Net Profit Transferred to
Reserves (10 58 73 994) (19 03 25 039)
Earnings per share: Basic /
Diluted (Rs.1 each) (1.04) (1.76)
Dividend Rate Nil 10%
Share Capital 10 14 79 593 10 14 79 593
Reserves & Surplus 616 42 24 834 627 00 98 828
Total shareholders funds 626 57 04 427 637 15 78 421
Book value per share (Rs.1 each) 61.74 62.79
2. Further Issue Of Equity Shares On Preferential Basis
The company has not issued Equity Shares on Preferential basis during
the financial year 2011-12.
3. Public Deposits
The Company has not accepted any deposits within the meaning of Section
58A of the Companies Act, 1956 and the rules made there under during
the financial year under review.
4. Directors
In accordance with the provisions of the Companies Act, 1956 and
Articles of Association of the Company, three Directors retire by
rotation at the forthcoming Annual General Meeting and being eligible,
offer themselves for re-appointment. A brief resume of the Directors
seeking re-appointment is annexed to the Notice. Details of Directors
who resigned after the previous AGM till the date of this Report:
1. Mr. Surjeet Kumar Palhan, Independent Director resigned from the
Board on September 30, 2011 after serving the Board since July 18,
2007.
2. Mr. Amit Gupta, Director Finance, resigned from the Board on
November 01, 2011 after serving the Board since November 11 ,2005.
3. Mr. Anoop Roy Kundal, Director - Operations, resigned from the
Board on December 30, 2011 after serving the Board since October 27,
2004.
4. Mr. Navnit Chachan, Director & Chief Operating Officer, resigned
from the Board on June 30, 2012 after serving the Board since November
11, 2005.
5. Mr. Shrikanth Madan Chitnis, Independent Director resigned from the
Board on August 14, 2012 after serving the Board since December 28,
2005.
The Board placed on record appreciation for the services rendered by
the Directors during their tenure on the Board.
5. Management Discussion and Analysis
A separate Management Discussion and Analysis Report is also attached
and forms part of this report.
6. Subsidiaries
The subsidiaries of the Company are:
1. Mufithumb Entertainment Private Limited
2. Tanla Mobile Private Limited
3. Tanla Mobile Asia Pacific Pte Ltd., Singapore
4. Tanla Solutions (UK) Limited, U.K.
The step down subsidiaries of the Company are:
1. Tanla Mobile Ltd., UK a subsidiary of Tanla Solutions (UK) Ltd.,
UK.
2. Tanla Mobile Spain SL, Spain a subsidiary of Tanla Mobile Ltd., UK.
3. Tanla Mobile Middle East FZ LLC, Dubai
4. Tanla Mobile Inc., USA
5. Tanla Mobile South Africa Proprietary Ltd., South Africa
6. Tanla Mobile South Asia Pvt Ltd., Sri Lanka and
7. Tanla Mobile Ireland Pvt Ltd., Ireland are subsidiaries of Tanla
Mobile Asia Pacific Pte Ltd., Singapore
8. Tanla Mobile Finland Oy, a subsidiary of Tanla Mobile Middle East
FZ LLC, Dubai
9. Tanla Oy, Finland, is a subsidiary of Tanla Mobile Finland Oy
TZ Mobile Private Limited, incorporated in July 2009 under the
provisions of the Companies Act, 1956 is a Joint Venture between Tanla
Solutions Ltd and Zed Worldwide Holdings SL, Spain each holding 50% of
shareholding.
7. Consolidated Financial Statements
Pursuant to the exempti on granted vide General Circular No. 2/2011
dated February 08, 2011, by the Ministry of Corporate Affairs,
Government of India, a gist of the financial performance of the
subsidiary companies is contained in the Annual Report. The Annual
Accounts of the subsidiary companies are open for inspection by any
member/investor and the Company will make available these
documents/details upon request by any member of the company to any
investor of its subsidiary companies who may be interested in obtaining
the same.
In terms of Clause 32 of the Listing Agreement with the Stock Exchanges
and as prescribed by Accounting Standard 21 notified by the Government
of India under Section 211(3C) of the Companies Act, 1956, the Audited
Consolidated Financial Statements duly signed by the Statutory Auditors
are annexed elsewhere in this Annual Report.
8. Directors Responsibility Statement
In terms of Section 217(2AA) of the Companies Act, 1956, the Board of
Directors hereby confirm that:
(i) In the preparation of the Annual Accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
(ii) Appropriate accounting policies have been applied consistently,
judgements and estimates which are reasonable and prudent have been
made 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 loss of the company
for that period;
(iii) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities;
(iv) The annual accounts have been prepared on a going concern basis.
9. Corporate Governance
Pursuant to the provisions of Clause 49 of the Listing Agreement with
Stock Exchanges, a report on Corporate Governance together with a
certificate from M/s Ravi & Subramanyam, Practi cing Company
Secretaries, Hyderabad, features as part of the Annual Report. The
company will continue to implement and adhere in letter and spirit to
the policies of good corporate governance.
10. Particulars of Employees
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975,
as amended, no employee /whole-time Director has been paid a
remuneration equal to or exceeding the remuneration prescribed under
the above amended rules.
11. Conservation Of Energy, Research And Development, Technology
Absorption, Foreign Exchange Earnings And Outgo Conversation of Energy
The operations of the Company are not energy intensive. However,
adequate measures have been taken to conserve and reduce the energy
consumption by using energy efficient hardware, usage of natural light
and other equipment. Air Conditioners are used only when required and
air-conditioned areas have been treated with heat resistant material.
We continue to evaluate new technologies and invest to conserve and
reduce energy consumption. We believe energy saved is energy produced.
Research & Development, Technology Absorption
The company has rendered certain cost effective products and solutions
to its clients as a result of its constant endeavour to research and
develop new products, processes and methodologies for improving the
productivity and quality of its products and services.
Foreign Exchange earnings and outgo
The particulars regarding foreign exchange earnings and expenditure are
annexed hereto and forms part of this report.
12. Employee Stock Option
Options were granted to employees in October 2009, but no options were
vested with the employees pursuant to the grant.
Disclosures in compliance with Securities and Exchange Board of India
(Employees Stock Option Scheme and Employee Stock Purchase Scheme
Guidelines, 1999) as amended, are as under:
Nature of Disclosure Particulars
41,75,000 options were granted on
October 16, 2009, each option gives
Options granted
the grantee a right to subscribe to
equity share of face value of Re.1/- each.
At a discount of 20% on the latest available
closing market price prior to
The pricing formula the date of grant of options of the company
on the exchange having the highest
trading volume.
Options Vested No Options were vested during the year_
Options Exercised No Options were exercised during the year
Total number of shares
arising as a result of
exercise of option No Options were exercised during the year
Options lapsed No Options were vested during the year
Variation of terms of
Options No variation has been done_
Money realized by
exercise of Options As no Options were exercised during the year,
no money was realized.
Total number of options
in force Details of
Options granted to
41,75,000
senior managerial
personnel
Any other employee who
receives a grant in any
one year of option
No Options were granted during the year 2011-12
amounting to 5% or more
of option granted during
the year
Identified employees who
were granted option,
during any one year,
equal to or exceeding
1% of the issued capital
(excluding outstanding
No Options were granted during the year 2011-12
warrants and
conversions) of the
company at the time of
grant
Diluted Earnings per
share(EPS) pursuant
to issue of shares on
exercise of option
calculated in
accordance with
Accounting No shares
were issued as no
options were
exercised.
Standard(AS) 20 -
Earnings Per Share
(i) Method of
calculation of
employee
compensation cost.
(ii) Difference
between the
compensation cost
using the intrinsic
value of the stock
options(which is
the method of
accounting used
by the company)
and the Compensation
cost that would have
been recognized in the
accounts if the As no
shares were allotted
during the year
2011-12, this section
fair value of options
had been used as
method of Accounting.
is in-applicable
(iii)Impact of
difference mentioned
above in (i) above
on the profits of the
company.
(iv) Impact of the
difference mentioned
in (i) above on the
EPS
_of the company__
(i) Weighted Average
exercise price of
options As no shares were allotted during the
year 2011-12, this section is
(ii) Weighted Average
fair value of options in-applicable
(i) Method used to
estimate the fair value
of options
(ii) Significant
assumptions used
(Weighted Average
information relating
to all grants):-
(a)Risk free interest
rate
As no shares were allotted during the
year 2011-12, this section is in-
(b) Expected life
of options ,
(c) Expected
volatility applicable
(d) Expected dividend
yields
(e) Price of the
underlying share in
market at the time/of
option granted
13.Transfer of Unclaimed Shares to Suspense Account
870 Equity Shares held by 15 shareholders, in the "Tanla Solutions
Limited - Demat Suspense Account" in Axis Bank Ltd., Jubilee Hills
Branch, Hyderabad, as on March 31, 2012 in accordance with the
provisions of Clause 5A of the Listing Agreement. The voting rights on
these shares shall remain frozen till the rightful owner of these
shares claims the shares.
14. Transfer of Unpaid/Unclaimed Dividend to the Investor Education
and Protection Fund
Pursuant to Section 205A(5) of the Companies Act, 1956, and other
applicable guidelines,Rs. 1,28,579.00 (Rupees One lakh twenty eight
thousand five hundred and seventy nine only) representing the "Un-paid
and Un-Claimed dividend for the year 2004-05" has been transferred to
the Investor Education and Protection Fund.
15. Industrial Relations
The company enjoyed cordial relations with the employees during the
year under review and the Management appreciates the employees of all
cadres for their dedicated services to the company, and expects
continued support, higher level of productivity for achieving the
targets set for the future.
16. Auditors and Auditor's Report
M/s Ramasamy Koteswara Rao & Co., Chartered Accountants, Hyderabad, the
Statutory Auditors, retire at the ensuing annual general meeting and
are eligible for re-appointment. The company received confirmation that
their appointment, if made, would be within the prescribed limits under
the provisions of Section 224(1B) of the Companies Act, 1956.
The Auditors Report to the shareholders for the year ended March 31,
2012 does not contain any qualification and therefore does not call for
any explanations/comments.
17. Group
List of Promoters including the Promoter Group of the company
comprising "Group" as defined under the Monopolies and Restrictive
Trade Practices Act, 1969 (54 of 1969) pursuant to Regulation
3(1)(e)(i) of the SEBI(Substantial Acquisition of Shares & Takeovers)
Regulations, 1997 are:
1. Mr. D. Uday Kumar Reddy
2. Mrs. D. Tanuja Reddy
3. Mr. Satish Kathiriseffi
4. Mr. Gautam Sabharwal
18. Acknowledgements
The Directors wish to express their appreciation of the support and
co-operation of the Central and the State Governments, bankers,
business partners, employees, associates and expects the same in future
as well for sustaining the growth rates achieved in the past.
On behalf of Board of Directors
Sd/-
Date: 14 August, 2012 D. Uday Kumar Reddy
Place : Hyderabad Chairman & Managing Director
Mar 31, 2011
To the Members,
The Directors have great pleasure in presenting the 15th Annual Report
of business and operation together with Audited Financial Statement of
Accounts for the financial year April 01 2010 to March 31 2011.
RESULTS OF OPERATIONS
In Rs.
Financial performance of the Company (Standalone):
Results Results
Particulars March 31, 2011 March 31, 2010
Income from operations 28 70 50 801 51 05 54 953
Operating Profit (EBIDTA) 5 45 47 723 10 93 26 111
Less: Depreciation & amortisation 31 21 72 843 18 14 96 395
Operating Profit before Tax (25 76 25 120) (7 21 70 283)
Add: Other Income 53 40 458 6 68 36 431
Profit Before Tax (25 22 84 661) (53 33 852)
Less: Provision for Tax (7 37 93 030) (3 79 83 035)
Profit after Tax (17 84 91 631) 3 26 49 183
Dividend (incl. dividend tax) 1 18 33 408 1 18 72 605
Transfer to General Reserve 8 16 230
Net Profit Transferred to Reserves (19 03 25 039) 1 99 60 349
Earnings per share: Basic / Diluted
(Rs.1 each) (1.76) 0.33
Dividend Rate 10% 10%
Share Capital 10 14 79 593 10 00 28 376
Reserves & Surplus 627 00 98 828 646 04 23 867
Total shareholders funds 637 15 78 421 656 04 52 243
Book value per share (Rs.1 each) 62.79 65.59
SUBSIDIARIES
The subsidiaries of Tanla Solutions Limited are (i) Mufi Thumb
Entertainment Pvt Ltd, India (ii) Tanla Mobile Asia Pacific Pte Ltd,
Singapore (iii) Tanla Solutions (UK) Ltd., UK and (iv) Tanla Mobile
Private Limited, India
Tanla Mobile Ltd ,UK is a subsidiary of Tanla Solutions (UK) Ltd. UK.
Tanla Mobile Spain SL, Spain, is a subsidiary of Tanla Mobile Ltd, UK
(i)Tanla Mobile Middle East FZ LLC, Dubai,
(ii)Tanla Mobile Inc, USA,
(iii)Tanla Mobile South Africa Proprietary Ltd, South Africa
(iv)Tanla Mobile South Asia Pvt Ltd, Srilanka and
(v) Tanla Mobile Ireland Pvt Ltd, Ireland are subsidiaries of Tanla
Mobile Asia Pacific Pte Ltd, Singapore.
Tanla Oy, Finland is a subsidiary of Tanla Mobile Finland Oy which is a
subsidiary of Tanla Mobile Middle East FZ LLC, Dubai.
TZ Mobile Private Limited, incorporated in July 2009 is a Joint Venture
Company between Tanla Mobile Private Limited and Zed Worldwide Holdings
SL, Spain each holding 50% of shareholding.
DIVIDEND
The Board recommends a Dividend of 10 % (Re.0.10 per equity share of
Rs. 1/- each), as per Companies (Declaration of Dividend out of
Reserves) Rules, 1975, subject to the approval of the shareholders at
the ensuing Annual General Meeting. The Dividend will be paid in
compliance with applicable regulations. The dividend if declared as
above, would involve an outflow of Rs.10, 147, 959 towards dividend and
Rs.1,685,449 towards dividend tax.
The registers of members and share transfer books shall remain closed
from September 28th, 2011 to September 30th, 2011 (both days
inclusive).
ISSUE OF EQUITY SHARES ON PREFERENTIAL BASIS
The company has not issued Equity Shares on Preferential basis during
the financial year ended 31st March, 2011.
FIXED DEPOSITS
During the financial year 2010-11, the Company has not accepted any
deposit under Sections 58A and 58AA of the Companies Act, 1956 read
with the Companies (Acceptance of Deposits) Rules, 1975
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed section on 'Management Discussion and Analysis' (MDA),
pursuant to Clause 49 of the Listing Agreement forms an integral part
of this Annual Report.
PARTICULARS PURSUANT TO EXEMPTION UNDER SEC 212 OF THE COMPANIES ACT,
1956
Pursuant to the provisions of Section 212 of the Companies Act, 1956,
documents in respect of the various subsidiaries viz., Directors'
Report, Auditors' Report, Balance Sheet and Profit and Loss Account,
are required to be attached to the Balance Sheet of the holding
company. However, the Government of India, Ministry of Corporate Aff
airs, has vide letter No.47/15/2011-CL-III dated 27 January 2011,
granted a general exemption to applicability of the provisions of
Section 212(1) of the Companies Act, 1956. As required under the
circular the Company shall make available the audited annual accounts
of the subsidiary companies and related detailed information to the
shareholders upon request in accordance with the applicable law. These
documents are also available for inspection at the Registered Offi ce
of the Company during business hours.
Information pertaining to the subsidiary companies to be declared as a
part of the consolidated financial statements is in page no. 54.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
Articles of Association of the Company, Mr. Shrikanth Madan Chitnis,
Mr. Surjeet Kumar Palhan, Mr.Satish Kathirisetti and Mr. Anoop Roy
Kundal, retire by rotation at the forthcoming Annual General Meeting
and being eligible, off er themselves for re-appointment.
A Brief resume of each of the Directors proposed to be
appointed/re-appointed, their expertise in specific functional areas
and names of the Companies in which they hold
Directorship/membership/chairmanship of the Board Committees, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges has been provided elsewhere in this Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors in terms of Section 217 (2AA) states that:
a) in the preparation of the annual accounts the applicable accounting
standards have been followed along with proper explanation relating to
material departures from the same;
b) the Directors have selected such accounting policies and applied
them consistently and made judgment and estimates that are reasonable
and prudent, so as to give true and fair view of the state of aff airs
of the Company as at March 31st 2011 and of the Loss of the Company for
the year ended on that date;
c) the Directors have 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 have prepared the annual accounts on a "going concern"
basis.
CORPORATE GOVERNANCE
Our Directors reaffi rm their continued commitment to good corporate
governance practices and Our Company adheres to all major stipulations
in this regard as provided in Clause 49 of the Listing Agreement which
relate to Corporate Governance. A detailed report on the Corporate
Governance, together with, a certificate from Ms Chada Srivani,
Practicing Company Secretary, BS & Co., Company Secretaries forms part
of this report.
INTERNAL CONTROL SYSTEM
The Company has proper and adequate systems of internal control system
commensurate with the size and nature of its business to ensure
protection of assets, proper financial & operating functions and
compliance with the policies, procedures, applicable Acts and Rules.
The company's internal controls are supplemented by sound internal
audit practices. The Audit Committee at their meetings regularly
reviews the financial, operating, internal audit & compliance reports
to improve performance. Further, the company has an independent
internal audit system. The process of internal audit involves,
reviewing of existing controls and systems. Internal Audit also
recommends actions for strengthening of the business processes. The
internal audit ensures adherence to operating guidelines, regulatory
and legal requirements.
RISK MANAGEMENT SYSTEM
Risk is an integral part of the business process. To enhance the risk
management process, the company has mapped the risks. A system has been
formulated based on Balanced Score Card with various appropriate
measures and accountabilities to identify, assess, prioritise and
mitigate the risks. Reports generated from the system are monitored
regularly to ensure that appropriate corrective actions are taken.
The company manages business risks through strict compliance and
internal checks. It will not be out of context to state that the system
has worked very effectively during the year under review.
STATEMENT PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956
In terms of the amended Companies (Particulars of Employees) Rules,
1975 read with Section 217(2A) of the Companies Act, 1956, no
employee/Whole time Director has been paid a remuneration equal to or
exceeding the remuneration prescribed under the above amended rules.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & OUTGO
Conservation of energy
Our operations are not energy intensive; however significant measures
are taken to reduce energy consumption by using energy efficient
computers and purchasing energy efficient equipment. We constantly
evaluate new technologies and invest to make our infrastructure more
energy efficient.
Technology Absorption
Research and development of new products, processes and methodologies
continue to be of importance to us. This allows us to enhance quality,
productivity and customer satisfaction through continuous innovation.
Our Company continues to invest in rapidly changing technologies and
use them to improve the quality of the products, service offerings,
this has resulted in overall reduction in defect rates and a higher
level of customer satisfaction.
Foreign Exchange earnings & outgo:
The particulars regarding foreign exchange earnings and expenditure are
annexed hereto and forms part of this report.
TRANSFER OF UNCLAIMED SHARES TO SUSPENSE ACCOUNT
As on 31st March, 2011, 870 Unclaimed Equity Shares held by 15
Shareholders , were held in the " Tanla Solutions Limited - Demat
Suspense Account" in Axis Bank, Jubilee Hills, Hyderabad in compliance
with the provisions of Clause 5A of the Listing Agreement. The voting
rights on these shares shall remain frozen till the rightful owner of
such shares claims the shares.
TRANSFER OF UNPAID/UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND
PROTECTION FUND
According to Section 205A(5) of the Companies Act, 1956, unpaid and
unclaimed dividend in the dividend account of the Company has to be
transferred to Investor Education and Protection Fund after seven years
of declaration. Hence pursuant to Sec 205 (A) of the Companies
Act,1956 and other applicable guidelines, Rs. 41,000 representing the
unpaid and unclaimed dividend for the year 2003-04 has been transferred
to Investor Education and Protection Fund.
HUMAN RESOURCES
Our Company believes that the quality of employees is the key to its
success in the long run and is committed to provide necessary human
resource development and training opportunities to equip them with
required skills. Our Company constantly strives to provide the
employees with the required training to hone their skills.
AUDITORS AND AUDITORS' REPORT
M/s.Ramasamy Koteswara Rao, Chartered Accountants, Hyderabad, Statutory
Auditors of the Company, shall hold offi ce until the conclusion of the
ensuing Annual General Meeting and are recommended for re-appointment.
certificate from the Auditors has been obtained to the effect that
their re-appointment, if made, would be within the limits specified
under Section 224 (IB) of the Companies Act, 1956.
The Auditors Report to the shareholders for the year ended March 31,
2011 does not contain any qualifi cation and therefore does not call
for any explanation/comments.
GROUP
List of Promoters including the Promoter Group of the Company
comprising "Group" as defined under the Monopolies and Restrictive
Trade Practices Act, 1969 (54 of 1969) pursuant to Regulation
3(1)(e)(i) of SEBI (Substantial Acquisition of Shares & Takeovers)
Regulations, 1997 are:
1. Mr. D.Uday Kumar Reddy
2. Mrs.D.Tanuja Reddy
3. Mr.Satish Kathirisetti
4. Mr.Anoop Roy Kundal
5. Mr.Navnit Chachan
6. Mr.Amit Gupta
7. Mr.Gautam Sabarwal
ACKNOWLEDGEMENT
Our Directors wish to place on record their appreciation for the
support extended by government authorities, bankers, customers and
shareholders of the Company.
Our Directors also wish to place on record their appreciation for the
sincere services rendered by the employees of our Company during the
year. Their dedication, teamwork and efficiency are commendable.
Sd/-
Date: September 05, 2011 D. Uday Kumar Reddy
Place:Hyderabad Chairman & Managing Director
Mar 31, 2010
The Directors have great pleasure in presenting the Fourteenth Annual
Report of your Company together with the Audited Statement of Accounts
for the year ended on March 31, 2010.
(In Rs.)
Particulars Results
March 31, 2010 March 31, 2009
Income from operations 510,554,953 1,723,834,549
Operating Profit (EBIDTA) 109,326,111 991,136,043
Less: Depreciation & amortisation 181,496,395 160,462,174
Operating Profit before Tax - 72,170,283 830,673,869
Add: Other Income 66,836,431 72,548,530
Profit Before Tax - 5,333,852 903,222,399
Less: Provision for Tax - 37,983,035 170,397,201
Profit after Tax 32,649,183 732,825,198
Dividend (incl. dividend tax) 11,872,605 58,497,500
Transfer to General Reserve 816,230 73,282,520
Net Profit Transferred to Reserves 19,960,348 601,045,178
Earnings per share: Basic / Diluted
(Re.1 each) 0.33 7.33
Dividend Rate 10% 50%
Share Capital * 100,028,376 100,000,000
Reserves & Surplus 6,460,423,867 6,350,087,514
Total shareholders funds 6,560,452,243 6,450,087,514
Book value per share (Re.1 each) 65.59 64.50
Subsidaries
The subsidiaries of Tanla Solutions Limited are (i) MufThumb
Entertainment Pvt Ltd, India (ii) Tanla Mobile Asia Pacifc Pte Ltd,
Singapore and (iii) Tanla Solutions (UK) Ltd., UK.
Tanla Mobile Ltd (UK) is a subsidiary of Tanla Solutions (UK) Ltd.
Tanla Mobile Spain SL, Spain, is a subsidiary of Tanla Mobile
Ltd, (UK)
(i)Tanla Mobile Middle East FZ LLC, Dubai,
(ii)Tanla Mobile Inc, USA,
(iii) Tanla Mobile Malaysia Sdn. Bhd., Malaysia,
(iv)Tanla Mobile South Africa Proprietary Ltd, South Africa
(v) Tanla Mobile Australia Pty Ltd, Australia,
(vi) Tanla Mobile South Asia Pvt Ltd, Srilanka and
(vii) Tanla Mobile Ireland Pvt Ltd, Ireland are subsidiaries of
Tanla Mobile Asia Pacifc Pte Ltd, Singapore.
Tanla Mobile Finland Oy was incorporated by Tanla Mobile Middle East FZ
which holds 100% shareholding of Tanla Oy (formerly Openbit Oy) as on
date.
Tanla Mobile Australia Pty Ltd, Australia, was deregistered in January
2010 as confrmed by ASIC, Australia.
During the year our Company incorporated:
(i) Tanla Mobile Private Limited, a SEZ Company and wholly
owned subsidiary of Tanla Solutions Limited
(ii) TZ Mobile Private Limited , a joint venture company(JVC), with Zed
Worldwide Holdings SL, Spain
Joint Venture
TZ Mobile Private Limited, the joint venture company, is engaged in the
business of providing the following services:
- Sale of mobile content and services to end users.
- Carriers outsourcing services including the Management of carriers
portals.
- Mobile Advertising.
- Design and monitoring of marketing campaigns for Telecom Companies
and other companies.
- New MVAS products or services addressable to the direct to consumer
market.
These services span across -
- Voice (Songs, dialogs, ring tones, caller tunes etc),
- Text (PSMS, WAP based texts for jokes, astro, info services, etc
involving push-pull services)
- Video (voice and video messages)
The business is conducted in accordance with the business plan to be
mutually agreed upon by the parties.
Dividend
The Board has recommendsed a Dividend of 10 % (Re.0.10 per equity share
of par value of Re. 1/- each), as per Companies (Declaration of
Dividend out of Reserves) Rules, 1975, subject to the approval of the
shareholders at the ensuing Annual General Meeting. The Dividend will
be paid in compliance with applicable regulations. The fnal dividend if
declared as above, would involve an outfow of Rs.10, 147, 959 towards
dividend and Rs.1, 724, 646 towards dividend tax.
The registers of members and share transfer books shall remain closed
from September 25, 2010 to September 30, 2010(both days inclusive).
Our Directors propose to transfer Rs. 816, 230 to the General Reserve
account retaining Rs. 19, 960, 348 in the Proft & Loss Account, after
dividend and dividend tax.
Fixed Deposits
During the fnancial year 2009-10, the Company has not accepted any
deposit under Sections 58A and 58AA of the Companies Act, 1956 read
with the Companies (Acceptance of Deposits) Rules, 1975
Management Discussion and Analysis
A detailed section on Management Discussion and Analysis (MDA),
pursuant to Clause 49 of the Listing Agreement forms an integral part
of this Annual Report.
Employee Sock Option Scheme
The grant of stock options to employees is a mechanism to align the
interest of employees with those of the Company, to provide them with
an opportunity to share the growth of the Company and also to foster
long-term commitment. Towards achieving this goal, approval of the
members was obtained in the Annual General Meeting held on August 29,
2007, to create, issue, ofer options and allot equity shares under the
Employee Stock Option Scheme. The Remuneration Commit- tee met on
October 16, 2009; and allotted options to the eligible employees.
Disclosure in compliance with Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee Stock Purchase Scheme
Guidelines, 1999), as amended, are as under:
Nature Of Disclosure Particulars
Options granted 41,75,000 options were granted on October 16, 2009,
each option grantee gives the grantee a right to
subscribe to equity share of face value
of Rs.1/- each
The pricing
formula At a discount of 20% on the latest available
closing market
price prior to the date of grant of options of the
company on the exchange having the
highest trading volume.
Options vested Options would be vested with the Employees from
Oct 2010
Options Exercised No Options were exercised during the year
Total number of
shares arising as
a result of
exercise of
option No Options were exercised during the year
Options lapsed No options lapsed during the year
Variation of terms
of options No variation has been done
Money realized by
exercise of options As no options were exercised
during the year, no money was realized
Total number of
options in force 41,75,000
Details of options
granted to senior
managerial
personnel
Any other employee
who receives a
grant in any one
year of option Name & Designation No. of Options granted
amounting to 5% or
more of option
granted
during that year 1. Vessa Pekka Kirsi,
Vice-President 6,50,000
Tanla Oy Finland
Identified
employees who
were granted
option, during
any one year,
equal Name & Designation No. of Options granted
to or exceeding
1% of the issued
capital (excluding
outstanding
warrants 1. Arto Lehtonen,
Vice-President 10,00,000
and conversions)
of the company at
the time of grant
Tanla Oy Finland
Diluted Earnings per
share(EPS)) pursuant
to issue of shares on
exercise of No shares were issued as no options
were exercised
option calculated in
accordance with Acco
unting Standard (AS)
20
Earnings Per Share -
(i) Method of calcul
ation of employee
compensation cost.
(ii) Difference be
tween the compensa
tion cost using the
intrinsic value
of
the stock options
(which is the method
of accounting used
by the
Company)and the
Compensation cost
that would have been
recognized
in the accounts if
the fair value of
Options had been
used as method of
As no shares were allotted during
the year 2008-09, this
accounting section
is in-applicable
for this year,
(iii) Impact of
the difference
mentioned above
in
(i) above on the
profits of
the Company
(iv) Impact of
the difference
mentioned in
(i) above on the
EPS of the
Company
(i) Weighted Ave
rage exercise p
rice of Options
(ii)Weighted a
verage fair va
lue of Options
(i)Method used
to estimate the
fair value of
Options
(ii)Significant
assumptions used
(Weighted Avera
ge information
relating to all
grants):-
(a)Risk free in
terest rate As no shares were
allotted during the year.
2008-09, this
(b) ExpectedHthe
Options section
is in-applicable
for this year,
(c) Expected
volatility
(d) Expected div
idend yields
(e) Price of the
underlying share
in market at the
time of option
grant
Issue of Equity Shares on Preferential Basis
The Company has in accordance with the statutory provisions, including
SEBI (ICDR) Regulations, 2009 Guidelines, and with the approval of the
members sought through postal ballot, issued and allotted 1,479,593
equity shares of Re. 1 each at a price of Rs. 61.53 including a premium
of Rs. 60.53 each fully paid-up, on a preferential basis to the current
management team of erstwhile Openbit Oy, Finland (now known as Tanla
Oy) on March 24 2010. This preferential issue was made with the
objective to augment long-term fund requirements of the Company for
ongoing capital expenditure, new acquisitions and for general corporate
purposes.
Pursuant to the issue of equity shares on preferential basis, the
paid-up equity share capital of the Company increased from Rs.
100,000,000/- to Rs. 101,479,593/- consisting of 101,479,593 equity
shares of face value Re.1 each.
Statement Pursuant to Exemption Under SEC 212(8) of the Companies Act
1956
We believe that the Consolidated Financial Statements present a more
comprehensive picture rather than the stand- alone fnancial statements
of the Company and each of its subsidiaries. We, therefore, applied to
the Ministry of Corpo- rate Afairs, Government of India and obtained
vide letter no: 47/128/2010/CL-III dated March 15 2010, an exemption
from the requirement of presenting detailed fnancial statements of each
subsidiary. In terms of the approval granted by the Central Government
under Section 212(8) of the Companies Act, 1956, copies of the Balance
Sheet, Proft and Loss Account, and Report of the Board of Directors and
Auditors of the subsidiaries have not been attached with the Balance
Sheet of the Company. However, these documents will be made available
upon request by any member of the Company. As directed by the Central
Government, the fnancial data of the subsidiaries has been furnished
under Financial Information of Subsidiary Companies, which forms part
of this Annual Report. The annual accounts and related detailed
information of the Company including that of subsidiaries will be kept
for inspec- tion by any member at the registered ofce of the company.
Further, pursuant to Accounting Standard (AS - 21) prescribed under
Companies (Accounting Standards) Rules, 2006, Consolidated Financial
Statements prescribed by the Company include fnancial information of
subsidiaries.
Directors
In accordance with the provisions of the Companies Act, 1956 and
Articles of Association of the Company, Padmabhushan Ram Narain
Agarwal, Mr. Abhishek Khaitan and Mr. S.S. Jamuar, retire by rotation
at the forthcoming Annual General Meeting and being eligible, ofer
themselves for re-appointment. A brief resume, expertise and details of
other directorship and committee membership thereof of these Directors
are given in the explanatory statement annexed to the Notice convening
the 14th Annual General Meeting.
The Board of Directors in its meeting held on May 14 2010, re-appointed
for a period of 5 years, 1) Mr. D. Uday Kumar Reddy as the Chairman &
Managing Director of the Company with efect from May 15 2010, 2) Mr.
Amit Gupta as the Director-Finance of the Company with efect from April
01 2010. In this Board Metting, Mr. Navnit Chachan was redis- gnated as
the Director- Technical & Engineering with efect from April 01 2010 and
re-appointed for a further period of 5 years with efect from May 01
2010.
Mr. Harish Kumar Villadath, Independent Director has resigned from the
Board of Directors with efect from January 28 2010.
A Brief resume of each of the Directors proposed to be
appointed/re-appointed, their expertise in specifc functional areas and
names of the Companies in which they hold
Directorship/membership/chairmanship of the Board Committees, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges has been provided as an annexure to the Notice convening 14th
Annual General Meet- ing.
Directors Responsibility Statement
The Board of Directors in terms of Section 217 (2AA) states that:
a) in the preparation of the annual accounts the applicable accounting
standards have been followed along with proper explanation relating to
material departures from the same;
b) the Directors have selected such accounting policies and applied
them consistently and made judgment and estimates that are reasonable
and prudent, so as to give true and fair view of the state of afairs of
the Company as at March 31 2010 and of Proft of the Company for the
year ended on that date;
c) the Directors have taken proper and sufcient 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 have prepared the annual accounts on a "going concern"
basis.
Corporate Governance
Our Directors reafrm their continued commitment to good corporate
governance practices and Our Company adheres to all major stipulations
in this regard as provided in Clause 49 of the Listing Agreement which
relates to Corporate Governance. A detailed report on the Corporate
Governance, together with, a certifcate of complaince from BS& Company,
Company Secretaries, Hyderabad, forms part of this report.
Internal Control System and its Adequecy
The company has proper and adequate systems of internal control system
commensurate with the size and nature of its business to ensure
protection of assets, proper fnancial & operating functions and
compliance with the policies, proce- dures, applicable Acts and Rules.
The companys internal controls are supplemented by sound internal
audit practices. The Audit Committee at their meetings regularly
reviews the fnancial, operating, internal audit & compliance reports to
improve performance. Further, the company has an indepen- dent internal
audit system. The process of internal audit involves, reviewing of
existing controls and systems. Internal Audit also recommends the
actions for strengthening of the business processes. The internal audit
ensures adherence to operating guidelines, regulatory and legal
requirements.
Risk Management System
Risk is an integral part of the business process. To enhance the risk
management process, the company has mapped the risks. A system has
been formulated based on Balanced Score Card with various appropriate
measures and accountabilities to identify, assess, prioritise and
mitigate the risks. Reports gener- ated from the system are monitored
regularly to ensure that appropriate corrective actions are taken.
The company manages business risks through strict compli- ance and
internal checks. It will not be out of context to state that the system
has worked very efectively during the year under review.
Statement Pursuant to SECTION 217(2A) of the Companies Act,1956
Information as required under Section 217(2A) of the Compa- nies Act,
1956 read with the Companies (Particulars of Employ- ees) Rules, 1975,
is given as an Annexure to this Report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings & Outgo
Conservation of energy
Our operations are not energy intensive; however signifcant measures
are taken to reduce energy consumption by using energy efcient
computers and purchasing energy efcient equipment. We constantly
evaluate new technologies and invest to make our infrastructure more
energy efcient.
Technology Absorption
Research and development of new products, processes and methodologies
continue to be of importance to us. This allows us to enhance quality,
productivity and customer satisfaction through continuous innovation.
Our Company continues to invest in rapidly changing technologies and
use them to improve the quality of the products, service oferings, this
has resulted in overall reduction in defect rates and a higher level of
customer satisfaction.
Foreign Exchange earnings & outgo:
The particulars regarding foreign exchange earnings and expenditure are
annexed hereto and forms part of this report.
Transfer of Unclaimed Shares to Suspense Account
As on 31.03.2010, 940 Equity Shares of 16 Shareholders laid unclaimed
in the Escrow Account of the Company with the Registrar, due to
non-availability of the correct particulars. Despite constant eforts
to locate the Shareholder, such as reminders to the address given in
the Application form and as captured from depositories database, by the
Registrars, viz., M/s Karvy Computershare Private Limited, no response
has been received. As a result the said unclaimed shares have been
credited to à Tanla Solutions Limited à Demat Suspense Accountà in
compliance with the provisions of Clause 5A of the Listing Agreement.
Every successful allottee who has not received the shares in his/her
demat Account may approach the Company or M/s Karvy Computershare
Private Limited, with their correct particulars and proof of their
identity for crediting of the Shares from the Demat Suspense Account to
their individual demat Account. The voting rights on these shares shall
remain frozen till the rightful owner of such shares claims the shares.
Human Resources
Our Company believes that the quality of employees is the key to its
success in the long run and is committed to provide necessary human
resource development and training oppor- tunities to equip them with
required skills. Our Company has granted options to deserving employees
during the fnancial year 2009-10, under the Employee Stock Option
Scheme 2007, as our Company believes in rewarding performance and
providing the employees an opportunity to share the growth of the
Company.
Patent & Award
Tanla was granted a Patent by, The Registry of Patents, Singa- pore,
and the indian patent ofce, for Automated Meter Read- ing and Method
thereof.
A detailed note on the patent has been annexed elsewhere in this
report.
Tanla Solutions Limited ranked 25th in the Deloitte Fast 50 Indian 2009
Program. This Program ranks fastest growing technology Companies in
India based on their percentage revenue growth over the last three
fnancial years.
Auditors and Auditors Report
M/s. Ramasamy Koteswara Rao, Chartered Accountants, Hyder- abad,
Statutory Auditors of the Company, shall hold ofce until the conclusion
of the ensuing Annual General Meeting and are recommended for
re-appointment. Certifcate from the Auditors has been obtained to the
efect that their re-appointment, if made, would be within the limits
specifed under Section 224 (IB) of the Companies Act, 1956.
The Auditors Report to the shareholders for the year ended March 31,
2010 does not contain any qualifcation and there- fore does not call
for any explanation/comments.
Acknowledgement
Your Directors wish to place on record their appreciation for the
support extended by government authorities, bankers, customers and
shareholders of the Company.
Your Directors also wish to place on record their appreciation for the
sincere services rendered by the employees of your Company during the
year. Their dedication, teamwork and efciency have been commendable.
On behalf of the Board of Directors,
Sd/
D. Uday Kumar Reddy
Chairman & Managing Director
Place : Hyderabad
Date : September 05, 2010