ccs infotech ltd Directors report

Directors

TO,

THE MEMBERS,

Your Directors have great pleasure in presenting the Sixteenth Annual Report together with Audited Accounts of the Company for the year ended 31st March, 2013 and the Auditors’ Report thereon.

FINANCIAL RESULTS

The stand-alone financial results of CCS Infotech Limited for the year ended March 31, 2013 are presented below:-

		(Amount In LAKHS)
Particulars	2012-13	2011-12
Revenue	4378.93	10161.41
Expenditure	4285.61	9976.54
Profit before Tax & Depreciation	93.31	184.87
Depreciation	82.66	97.76
Profit after Depreciation but before tax	10.65	87.11
Current Tax	9.03	24.06
Deferred Tax	0.00	(2.85)
Profit After Tax	1.63	65.90
Reserves & Surpluses	1011.26	1000.61

Your Company has made a turnover of Rs.4378.93 Lakhs as compared to Rs.10161.14 Lakhs of previous year and has made a profit of Rs.1.62 Lakhs compared to Rs.78.30 Lakhs previous year.

BUSINESS OUTLOOK

Your Company is among Indias leading Information Technology Solutions provider having a wide range of expertise in Systems Integration and e-Governance including Hardware Solutions, Software Development and Networking Services and into manufacture of computers and export of IT products from India as an OEM.

Your Company presently has the following divisions:

1. Manufacturing: Your manufacturing Plant is situated at Puducherry and has got ISO 9001:2008 certifications

2. System Integration: Your Company has partnered with leading IT hardware Companies and has bagged many System Integration projects.

3. Services AMC/FMS: Your Company is providing AMC/FMS to leading companies in different business verticals.

4. Supply Contracts under BOLT/BOOM: Your Company is presently executing supply contracts under BOLT/BOOM structures for Public Sector Undertakings and working to achieve a healthy growth in this segment.

5. E-Governance: Your Company is continuing its services in the E Governance sector and doing citizen services in Andhra Pradesh and working towards getting new orders.

Our clientele strength has been the key success to our growth. We have a long-term association with all our clients and many referral clients are added to clientele year on year.

FIXED DEPOSITS

Your Company has not accepted any fixed deposit during the year under review.

DIVIDEND

With a view to preserve the liquid resources and enhance shareholders value, your directors have not recommended any dividend during the year under report.

SUBSIDIARY COMPANIES

The Company continues to have one Subsidiary i.e., CCS INFOTECH SINGAPORE PTE. LIMITED. As per Section 212 of the Companies Act, 1956, the audited Balance Sheet and Profit & Loss statement along with the respective reports of the Board of Directors and the Auditor’s thereon of the Subsidiary Company for the year ended March, 2012 are attached. The Statement pursuant to section 212 of the Companies Act, 1956 also forms part of annual report.

As per the requirement of AS-21/27 issued by the ICAI, your company is pleased to present the consolidated balance sheet, profit and loss account and cash flow statement of the Company and its subsidiary.

INSURANCE

All insurable interests of the Company including buildings, furniture and fixtures and other insurable interest are adequately insured.

STATUTORY STATEMENTS

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Your Company has activities as detailed below relating to conservation of energy and technological absorption as required to be disclosed under Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the report of Board of Directors) Rules, 1988.

A. Conservation of Energy

Energy conservation measures taken: The Company is very careful in using the power to reduce the cost of maintenance and conserve the resources.

Additional investments and proposals, if any, being implemented for reduction of consumption of energy

Nil

B. Technology Absorption and Foreign Exchange earnings & out go:

(Disclosure of Particulars with respect to technology absorption to the extent applicable)	2012-13	2011-12
i. Research & Development (R & D)	NIL	NIL
ii. Technology Absorption, Adaptation and Innovation	NIL	NIL
iii. Foreign Exchange Earnings	NIL	NIL
iv. Foreign Exchange Outflow	NIL	NIL

DIRECTORS-f RESPONSIBILITY STATEMENT

Pursuant to the requirement u/s.217 (2AA) of the Companies Act, 1956 with respect to Directors’ Responsibility Statement your Directors to the best of their knowledge and belief confirm that:

(i) In the preparation of the annual accounts, the applicable Accounting Standards have been followed and no material departure has been made from the same.

(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 true and fair view of the state of affairs of the Company at the end of the financial year and of the profit/loss of the Company for that period;

(iii) They have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act so as to safeguard the assets of the Company and to prevent and detect fraud and other irregularities; and

(iv) They have prepared the annual accounts on a going concern basis.

PARTICULARS OF EMPLOYEES

During the year under review, there were no employees covered under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975.

The Board of Directors wishes to express its appreciation to all the employees of the Company for their outstanding contribution to the operation of Company during the year.

INTERNAL CONTROLS AND THEIR ADEQUACY

The internal control systems are commensurate to the size of the operation of the Company. Whenever it is required, the systems and procedures are upgraded to suit the changing business needs.

STATEMENT PURSUANT TO LISTING AGREEMENT

The company’s securities are listed with Bombay Stock Exchange and it has paid the respective annual listing fees up-to-date and there is no arrear.

The Company has obtained your approval at the Annual General Meeting held on 27th September, 2003 to voluntarily de-list the Company’s shares from Madras and Calcutta Stock Exchanges and the Company’s application for delisting is pending with both the Stock Exchanges.

CODE OF CORPORATE GOVERNANCE

A detailed report on Corporate Governance as updated with the particulars of this financial year, as per the directions from SEBI is annexed to this report (Annexure ‘A’) together with Report of the Auditors on the compliance with the said Code and a report of Management Discussion and Analysis is also annexed separately.

DIRECTORS AND OFFICERS OF THE COMPANY

In compliance with the provisions of the Companies Act, 1956 in accordance with the Company’s

Articles of Association, Mr. S. Sam Kumar and Mr. H Ratnakumar, retire at this Annual General Meeting and being eligible, offer themselves for re-appointment.

The Company has approached the Institute of Company Secretary and informed about the vacancy and the same has been displayed in the Institute’s notice board. Some candidates have applied and a Company Secretary will be appointed at an early date.

Brief resume of the Directors, seeking appointment/re-appointment, nature of their expertise as stipulated under clause 49 of the listing agreement with the Stock Exchanges, is appended to the notice convening the Annual General Meeting.

AUDIT AND AUDITORS REPORT

The retiring auditors, M/s. M.S. Subbiah & Co., Chartered Accountants have expressed willingness to continue in office, if appointed. They have furnished to the Company a certificate of their eligibility for appointment as auditors, pursuant to section 224 (1B) of the Companies Act, 1956. The Audit Committee and the Board of Directors recommend the re-appointment of M/s. M.S. Subbiah & Co., Chartered Accountants as Auditors for a further period of one year and to fix their remuneration.

ACKNOWLEDGEMENT

The Directors take this opportunity to thank employees at all levels, Company’s Bankers, suppliers, consultants, shareholders, State Government and other statutory bodies for their unstinted and consistent support to the Company.

For and on behalf of the Board of Directors of
CCS INFOTECH LIMITED
M.A. Hasan Abdul Kader	H. Ratnakumar
Managing Director	Executive Director
Place : Chennai
Date :  01-09-2013.