The Directors submit annual report of Danlaw Technologies India Limited (DTIL) along with the audited financial statements for the financial year ended March 31, 2022 Consolidated performance of the Company and its subsidiary has been referred to wherever required.
(Rs. In Lakhs)
|Net Sales/Income from operations||5220.01||0||6938.15||12158.16||2780.82||11.25||7095.94||9888.01|
|Cost of materials||3539.29||9.37||4448.83||7997.49||1827.73||0.00||4564.59||6392.32|
|Profit / (Loss) before tax||438.68||(11.67)||59.44||486.45||(367.50)||(1.11)||634.90||266.29|
|Profit / (Loss) after tax||408.92||(11.67)||18.67||415.92||(268.61)||(1.00)||429.44||159.83|
|Profit / (Loss) attributable to: - Owners of the Company||408.92||(11.67)||13.07||410.32||(268.61)||(1.00)||300.61||31.00|
|- Non controlling interests||0.00||0||5.60||5.60||0.00||0.00||128.83||128.83|
|Paid up equity share capital||370.75||295.66||516.97||370.75||370.75||295.66||516.97||370.75|
|Reserves and Surplus (Excl. revaluation reserve)||1886.56||0||1353.59||2486.13||1460.94||346.80||1342.80||1833.14|
|Earnings per share - basic||11.03||(0.39)||0.36||11.07||(7.25)||(0.03)||8.31||0.84|
|Earnings per share - diluted||11.03||(0.39)||0.36||11.07||(7.25)||(0.03)||8.31||0.84|
DTIL: Danlaw Technologies India Limited
DTI : Danlaw Technologies Inc - 100% wholly owned subsidiary*
DEAL: Danlaw Electronics Assembly Limited - subsidiary
In view of the accumulated losses, your directors do not recommend any dividend for the Financial Year 2021-2022
Transfer to Reserve
Since there is no surplus in Profit and Loss account, there is no transfer to general reserve.
During the year under review, there were no changes in the share capital of the Company. Share Capital of the Company as on March 31, 2022 was as follows:
Authorized Capital - Rs. 5,00,00,000/- (Rupees Five Crores only) divided into 50,00,000 (Fifty Lakhs Only) Equity Shares of Rs. 10 each.
Issued, Subscribed and Paid Up Capital - Rs. 3,70,74,900/- (Rupees Three Crores Seventy Lakhs Seventy Four Thousand Nine Hundred Only) divided into 37,04,790 (Thirty-Seven lakhs four thousand Seven Hundred and Ninety only) Equity Shares of Rs. 10 each.
Companys Performance (Stand Alone)
Revenue from operations has increased by 88% to Rs.5220.01 lacs. The net Profit for the fiscal year is 408.92 lacs as compared to a Loss of Rs.268.61 lacs in the previous year.
The other income of Rs.470.13 lacs include Rs.355.62 lacs of profit on sale of investment in subsidiary (Danlaw Technologies Inc), Rs.104.68 lacs of Lease Rental income, Rs.9.82 lacs interest income.
Companys Performance (Consolidated)
Revenue from operations has increased by 23% to Rs.12,158.17 lacs. The net Profit for the fiscal year is 415.92 lacs as compared to a Profit of Rs.159.84 lacs in the previous year.
The other income of Rs.473.34 lacs include Rs.355.62 lacs of profit on sale of investment in subsidiary (Danlaw Technologies Inc), Rs.104.68 lacs of Lease Rental income, Rs.13.04 lacs interest income.
Change in the nature of business, if any
During the year under review, there has been no change in the nature of business of the Company.
Material Changes and Commitments Affecting the Financial Position of the Company
There have been no material changes and commitments, affecting the financial position of the company which occurred during and between the end of the financial year to which the financial statements relate and the date of this report.
Scheme of Amalgamation
During the FY 2021-22 Application vide Company Appeal No. 4/2022 was made to the Honble National Company Law Tribunal, Hyderabad Bench at Hyderabad, by the Applicant / Petitioner /Transferee Company(Danlaw Technologies India Ltd) for seeking direction to Reconvene the meeting of the Equity Shareholders of Danlaw Technologies India Limited (Transferee Company) on 30th January, 2022. The Company Appeal No. 4/2022 was allowed by the Honble Tribunal vide Order dated 06.05.2022 and pursuant to said Orders a meeting of the Equity Shareholders of Danlaw Technologies India Limited (Transferee Company) convened on 22.06.2022 at 11:00 AM through video conferencing ("VC") / Other Audio-Visual Means ("OAVM"), for the purpose of considering, and, if thought fit, approving with or without modification(s), the Scheme of Amalgamation between Danlaw Technologies India Limited (Transferee Company) and Danlaw Electronics Assembly Limited (Transferor Company) and their respective Shareholders and Creditors. After approval of shareholders, Application is filed with the NCLT, Hyderabad for the order which is in progress.
Events subsequent to the date of financial statement
There are not major events subsequent to the date of financial statement
Details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and companys operations in future
There are no significant and material orders were passed by regulators or courts or tribunals impacting the going concern status and Companys operations in future.
Internal financial control systems and their adequacy
The Companys internal financial control systems are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, executing transactions with proper authorization and ensuring compliance of corporate governance.
Danlaw Technologies, Inc - wholly owned subsidiary in USA *
Danlaw Electronics Assembly Limited - Subsidiary Company, India Performance and financial position have been given above in the financial results.
*Danlaw Technologies, Inc (DTI) has not been consistently running its business operations and investment has become idle. Pursuant to the Stock Purchase Agreement, that the Danlaw Techcnologies India Ltd has sold its entire equity holding in Danlaw Technologies lnc (DTl) an overseas wholly owned subsidiary to SPMLVentures LLC at fair market value. DTI has ceased to be companys wholly owned subsidiary with effect from 30.03.2022
A Statement containing salient features of the financial statement of our subsidiaries in the prescribed format AOC-1 as appended as Annexure-I.
Deposits from public
The Company has not accepted any deposits from public and as such, no amount on account of principal or interest on deposits from public was outstanding as on the data of the balance sheet.
M/s.CSVR & Associates, Chartered Accountants, (ICAI Registration No. 012121S) were appointed as the Statutory Auditors of the Company to hold office from the conclusion of the 24th AGM held on September 29, 2017 until the conclusion of the ensuing Annual General Meeting and is eligible for reappointment.
The Company has received confirmation from the Auditors to the effect that their appointment, if made, will be in accordance with the limits specified under the Companies Act, 2013 and the firm satisfies the criteria specified in Section 141 of the Companies Act, 2013 read with Rule 4 of Companies (Audit & Auditors) Rules 2014.
The Board is of the opinion that continuation of M/s. CSVR & Associates , as Statutory Auditors will be in the best interests of the Company and therefore, the members are requested to consider their re-appointment as Statutory Auditors of the Company, for a term of five years, from the conclusion of the ensuing Annual General Meeting, till the Annual General Meeting to be held in the calendar year 2027, at such remuneration mutually agreed and approved by the Board.
There are no qualifications, reservations or adverse remarks made by M/s. CSVR & Associates, Chartered Accountants, and Statutory Auditors in their report for the Financial Year ended 31st March, 2022.
The Statutory Auditors have not reported any incident of fraud to the Audit Committee of the Company under sub-section (12) of section 143 of the Companies Act, 2013, during the year under review.
Secretarial Auditors :
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Rules made thereunder, the Company has appointed .Mr B V Saravana Kumar, Company Secretary in Practice (CP No 11727) to conduct the Secretarial Audit of the Company and related records for the year ended 31st March 2022. The Secretarial Audit Report of the Company is annexed herewith as Annexure and forms an integral part of this report.
Secretarial Auditors Report
There are no qualifications, reservations or adverse remarks made by Mr B V Saravana Kuma, Practicing Company Secretary in their report for the financial year ended 31st March, 2022.
The Board on the recommendations of the Audit Committee has appointed M/s. Ramana Reddy & Associates, Chartered Accountants as internal auditors of the Company. The Internal Auditors are submitting the reports regularly.
Maintenance of cost records
The company is not required to maintain cost records as specified by the central government under sub section (1) of section 148 of the Companies Act, 2013.
Extract of the Annual Return
Pursuant to Section 92(3) read with section 134(3)(a) of the Companies Act, 2013, copies of the Annual Return of the Company prepared in accordance with Section 92(1) of the Act read with Rule 11 of the Companies (Management and Administration) Rules, 2014 are placed on the website of the Company and is accessible at the www.danlawtechnologies.com
Conservation of energy and technology absorption
a) Conservation of energy
Your Company is engaged in the business of software and information technology and has no specific activities relating to conservation of energy and technology absorption as required to be disclosed under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) the Companies (Accounts) Rules, 2014. The Company has taken necessary measures wherever possible for the conservation of energy. However, your Company uses information technology extensively in its operations and also continues its endeavor to improve energy conservation and utilization, safety and environment.
b) Research & Development and Technology Absorption:
(i) R & D: Your Company has a team of people working on R & D. This year Rs.55.95 lacs spent on R&D.
(ii) Technology Absorption: Your Company continues to use state of the art technology for improving the productivity and quality of its products and services. To create adequate infrastructure, your Company continues to invest in the latest hardware and software.
Foreign exchange earnings and outgo:
The particulars of foreign exchange earnings and outgo are given below.
Rs. In Lacs
Corporate social responsibility policy
The Company was not required to constitute Corporate Social Responsibility (CSR) Committee as the company has not met any of the thresholds mentioned in section 135 of the Companies Act, 2013 during the financial year under review. Hence reporting about the policy on Corporate Social Responsibility and initiative taken are not applicable to the company.
Directors and Key Managerial Personnel
1. Mr Raju S Dandu - Whole-time Director and Executive Chairman
2. Mr Sirish Batchu -Managing Director *
3. Mr Naga Satyanarayana Sappata - Independent Director
4. Mr K N Praveen Kumar - Independent Director **
5. Mr T Ravikumar - Independent Director
6. Mrs M Sridevi - Non Executive Non Independent Director
7. Mr A V RK Varma - CFO
8. Mr Gaurav Padmawar - Company Secretary
All the Independent Directors of your Company have given declarations under Section 149(7) of the Companies Act, 2013 that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and the Rules made there under and also as per applicable regulations of the SEBI (LODR) Regulations, 2015.
None of the Directors are disqualified from being appointed or holding office as Directors, as stipulated under Section 164 of the Companies Act, 2013.
*. Mr Sirish Batchu resigned as Managing Director with effect from 15th October 2021 ** With deep regret, we report the sad demise of our Independent Director Mr. Kotti Nanda Praveen Kumar (DIN: 03147134) on Wednesday, April 20, 2022 at USA. Your Directors would like to place on record their highest gratitude and appreciation for the guidance given by Mr. Kotti Nanda Praveen Kumar to the Board during his tenure as a director.
Meeting of the Board of Directors
Seven meetings of the board were held during the year. The Meetings were held on 30th June, 2021, 14thAugust 2021, 29th August, 2021, 13th November 2021, 09th December, 2021, 14th February 2022 and 07th March, 2022. The maximum interval between any two meetings did not exceed 120 days. The meeting of Independent Directors held on 14th February 2022.
As on 31st March, 2022, the Audit Committee consists of four directors as its members, out of whom three are independent non-executive directors and one is Whole-time Director.
There were 4 (four) meetings held on 30th June 2021, 14th August 2021, 13th November 2021 and 14th February 2022 during the Financial Year 2021-22
Names of the members and the Chairman of the Committee as on 31st March, 2022:
|Mr. Raju S Dandu||Executive Director|
|Mr. Naga Satyanarayana Sappata||Non-Executive - Independent Director|
|Mr. K N Praveen Kumar||Non-Executive - Independent Director|
|Mr. T Ravikumar||Non-Executive - Independent Director- Chairman|
Necessary quorum was present in all meetings .Mr.T Ravikumar Chairman of the Audit Committee attended the last Annual General Meeting (AGM) of the Company.
The terms of reference to the Audit Committee cover the matter specified for Audit Committee under Regulation 18 of SEBI Listing Regulations and Section 177 (1) of the Companies Act, 2013 and SEBI Listing Regulations.
Nominations and Remuneration Committee
The Nomination and Remuneration Committee of the Board of Directors meets the criteria laid down under section 178 of the Companies Act, 2013 read with the Regulation 19 of the SEBI Listing Regulations.
One meeting of the Nomination and Remuneration Committee was held during the year. The dates on which the said meetings was held on 14.02.2022
Names of the members and the Chairman of the Committee as on 31st March, 2022 are given below
|Mr. Naga Satyanarayana Sappata||Independent Non-executive - Chairman|
|Mr. Kotti Nanda Praveen Kumar||Independent Non-executive|
|Mr.Ravi Kumar Tamma||Independent Non-executive|
Stakeholder Relationship Committee
The Stakeholder Relationship Committee (SRC) of the Board of Directors meets the Criteria laid down under Section 178 of the Companies Act, 2013, read with the Regulation 20 of the SEBI Listing Regulations.
One meeting of the Stakeholders Relationship committee was held during the year. The dates on which the said meetings was held on 14.02.2022
M/s. KFin Technologies Private Limited, the Registrars and Share Transfer Agents, maintains the share accounting package and upgrades the data on weekly basis, as per the information received from NSDL / CDSL
Names of the members and the Chairman of the Committee as on 31st March, 2022 are given below
|Mr Raju S Dandu||Executive Director|
|Mr. Naga Satyanarayana Sappata -||Independent Non-executive|
|Mr.Ravi Kumar Tamma -||Independent Non-executive- Chairperson|
Particulars of loans, guarantees or investments under section 186
In the Financial Year 2021-22, the Company has not given any loan, guarantees or made any investments exceeding sixty per cent of its paid-up share capital, free reserves and securities premium account or one hundred per cent of its free reserves and securities premium account, whichever is higher, as prescribed in Section 186 of the Companies Act, 2013.
Particulars of contracts or arrangement with related parties:
None of the transactions with related parties falls under the scope of Section 188(1) of the Act. Information on transactions with related parties pursuant to Section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 are given in Annexure II in Form AOC-2 and the same forms part of this report.
a. The ratio of remuneration of Managing Director to the median remuneration of the employees of the Company for the financial year: 28.8
b. The ratio of remuneration of Whole Time Director to the median remuneration of the employees of the Company for the financial year: 4.04
c. No other directors are paid remuneration except sitting fees
d. The number of permanent employees on the rolls of the Company: 111
Particulars of Employees
None of the employees of your Company is in receipt of remuneration requiring disclosure pursuant to the provisions of Section 134(3) (q) of the Companies Act, 2013 read with Rule 5(2) the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Hence, no such particulars in this regard are annexed.
Vigil Mechanism/ Whistle Blower Policy
The Company has formulated and published a Whistle Blower Policy to provide Vigil Mechanism for employees including directors of the Company to report genuine concerns. The provisions of this policy are in line with the provisions of the Section 177(9) of the Act and in terms of regulation 22 of the SEBI Listing Regulation (URL: www.danlawtechnologies.com).
Obligation of Company under the Sexual Harassment of Women Workplace (Prevention,Prohibition and Redressal) Act, 2013
During the financial year 2021-2022, the Company has not received any complaint of sexual harassment against women employees of the Company.
Industry based disclosures as mandated by the respective laws governing the company
The Secretarial audit report for the financial year 2021-22 has briefed on compliance of industry-based disclosures and concerned laws governing the company.
Managements Discussion and Analysis:
In terms of the provisions of Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Managements discussion and analysis is set out in this Annual Report & marked as Annexure.
Directors Responsibility Statement
Pursuant to Section 134(5) of the Companies Act, 2013, the board of directors, to the best of their knowledge and ability, confirm that:
i) In the preparation of the annual accounts for the financial year ended 31st March, 2022, the applicable accounting standards have been followed along with proper explanation relating to material departures;
(ii) Appropriate accounting policies had been selected 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 31st March, 2022 and of the 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 have been prepared on a going concern basis;
(v) Internal financial controls have been laid down to be followed by the company and that such internal financial controls are adequate and were operating effectively, and
(vi) That proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively
Adequacy Of Internal Financial Controls with Reference to the Financial Statements
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory and secretarial auditors and external consultants and the reviews performed by management and the relevant board committees, including the audit committee, the board is of the opinion that the Companys internal financial controls were adequate and effective during the financial year 2021-22.
Your Company complies with all applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries of India.
Listing Of Equity Shares
Your company shares are listed with the BSE Limited. The listing fee has been paid for the financial year 2022-2023.
Corporate Governance Report
As per the provisions of 15(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations"), the compliances with corporate governance provisions as specified in Regulations 17 to 27 and clauses (b) to (i) and (t) of sub-regulation (2) of regulation 46 and para C , D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015 are applicable to the Company only if its paid up Capital exceeds Rs. 10 Crores and if Networth is above Rs. 25 Crores.
The following are the Paid up Capital and Networth details as on 31st March 2021 and 31st March 2022 of the Company
|S No. Particulars||Amount as on 31.03.2021||Amount as on 31.03.2022|
|1 Paid up Capital||370.75||370.75|
In light of the above, Corporate Governance Report is not applicable to the Company during the period under review. Hence corporate governance report has not been enclosed to directors report.
Your Directors place on record their gratitude and appreciation for the continued cooperation and excellent support received from all the quarters.
Your Directors also wish to place on record their appreciation for the sincere contributions received from the employees of the Company in enabling it to achieve the performance during the year under review and the valuable co-operation and continuous support extended by the Bankers, Consultants, Stakeholders, Strategic Investor, various Government and Statutory authorities and other business associates.
Gold/NCD/NBFC/Insurance and NPS
Gold/NCD/NBFC/Insurance and NPS