Economic Scenario:
Indias GDP growth has improved phenomenally in the past couple of years and is being
hailed as a bright spot among the emerging economies. But it may soon lose its
fastest-growing major economy title to China after winning it from China in the
previous fiscal. This would be a result of a downward revision of Indias GDP by the IMF.
Indias projected GDP growth of 7.6% has now been revised downward to 6.6% by the IMF.
This downward revision had happened primarily due to the cash shortages, payment
disruptions in the wake of the demonetization initiative. This is however expected to be a
short-term effect which will strengthen the nations fundamental structure in the long
run. However, this effect is expected to gradually dissipate during FY 2017-18. The
quality of Indias fundamentals are expected to become stronger and economic growth is
expected to rebound to 7.2% in FY 2018 with growing digitization, the implementation of
the GST and a strong consumer confidence. The Indian Governments decisive policy man
oeuvres towards ensuring fiscal consolidation and pegging back inflation will help it
maintain economic stability in the years to come.
Industry Review:
India is considered as a pioneer in software development and a favourite destination
for IT-enabled services. The Indian IT-BPO sector including the domestic and exports
segments continue to grow from strength to strength, witnessing high levels of activity
both onshore as well as offshore. The companies continue to move up the value-chain to
offer higher end research and analytics services to their clients. Indias leadership
position in the global IT and BPO industries are based primarily on the following
advantages.
It has a rapidly growing urban infrastructure fostering several IT centres in the
country. Offshore service centres are spawning in the country due to operational
excellence with low delivery cost, quality leadership and a conducive business
environment.
Favorable policy interventions, enabling infrastructure and augmenting a wide skill
base from the government has further enhanced India‘s brand image.
However, there is a real need to measure the digital divide in the country, including
the urban-rural and gender divides, and the use of community Internet access centers by
low-income users.
It is also worth mentioning have that private sector has contributed significantly
towards encouraging better telecom connectivity. The share of private sector which was
just 35.44% in 2003 tended to increase to 90.5% in 2014. Private Sector plays a
predominant role in wireless telecom sector, while Public sector PSUs are the major
players in wire line sector, as per Telephone Regulatory Authority of India.
Information and Communication Technology (ICT) access and use are unequally distributed
across countries, as clear from UNDP report on MDG, s 2015.
Review and Future Outlook of the Company:
The Company is continuously trying to accomplish the desired results. Steps have been
taken for cost diminution and quality of work by the Company. The Company will achieve
more turnover by various marketing strategies, offering more quality products, launching
new products and services etc. in coming years followed by increase in profit margin by
way of various cost cutting techniques and optimum utilization of various resources of the
Company.
Internal Control System:
The Company has proper and adequate system of internal control, commensurate with the
size and nature of its business. Regular Internal Audits and Checks carried out and also
management reviews the internal control system and procedures to ensure orderly and
efficient conduct of business and to ensure that all assets are safeguarded and protected
against loss from unauthorized use or disposition and that transactions are authorized,
recorded and reported correctly. The Company has well defined internal control system. The
Company takes abundant care to design, review and monitor the working of internal control
system. Internal audit in the organization is an independent appraisal activity and it
measures the efficiency, adequacy and effectiveness of other controls in the organization.
The Audit Committee, comprising Independent Directors, regularly reviews audit plans,
significant audit findings, adequacy of internal controls, and compliance with Accounting
Standards, among others.
Human Resources:
The Company believes that its people are its most important asset and thus continuously
strives to scale up its employee engagement through well structured systems and a
visionary HR philosophy. The Company continues to lays emphasis on building and sustaining
the excellent organization climate based on human performance. Performance management is
the key word for the Company. Pursuit of proactive policies for industrial relations has
resulted in a peaceful and harmonious situation in the Company. We are highly focused on
developing our employees to perform with the same excellence for the challenges and huge
business opportunities that are envisaged in future. The Company firmly believes that
intellectual capital and human resources is the backbone of the Companys success.
Cautionary Statement:
Statement in the Management Discussion and Analysis describing Companys objectives,
projections, estimates, expectation may be forward-looking statements within the meaning
of applicable securities laws and regulations. Actual result could differ materially from
those expressed or implied. Important factors that could make a difference to the
Companys operation include economic conditions affecting demand/supply and price
conditions in the Government regulations, tax laws and other status and other incidental
factors. Further, the discussion following herein reflects the perceptions on major issues
as on date and the opinion expressed here are subject to change without notice. The
Company undertakes no obligations to publicly update or revise any of the opinions of
forward looking statements expressed in this report, consequent to new information future
events, or otherwise. Readers are hence cautioned not to place undue reliance on these
statements and are advised to conduct their own investigation and analysis of the
information contained or referred to this statement before taking any action with regard
to specific objectives.
RISK MANAGEMENT:
The Board of Directors have developed & implemented a robust risk management policy
which identifies the key elements of risks that threatens the existence of the Company.
The Audit Committee reviews the Companys financial and risk management policies and steps
taken by the Company to mitigate such risks.
CORPORATE SOCIAL RESPONSIBILITY:
The Company shall find out ways and means to spend the amount required as per the
provision of companies act, 2013 in the coming months and shall submit the relevant report
in the ensuing year. The Company could not spend the money before finalising this report
as the time was too short to identify suitable projects for spending the same.
PREVENTION OF SEXUAL HARASSMENT POLICY:
The Company has in place Prevention of Sexual Harassment Policy in line with the
requirements of The Sexual Harassment of Women at Workplace (Prevention, Prohibition &
Redressal) Act, 2013. All employees (permanent, contractual, temporary, trainees) are
covered under this policy. Your Directors state that during the year under review, there
were no cases filed pursuant to the aforesaid Act.
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, state the following:
that in the preparation of the annual financial statements for the year ended March 31,
2017, the applicable accounting standards have been followed along with proper explanation
relating to material departures, if any;
that such accounting policies as mentioned in Notes to the Financial Statements have
been selected and applied consistently and judgement and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the
Company as at 31st March, 2017 and of the profit of the Company for the year
ended on that date;
that 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;
that the annual financial statements have been prepared on a going concern basis.
that proper internal financial controls were in place and that the financial controls
were adequate and were operating effectively.
that systems to ensure compliance with the provisions of all applicable laws were in
place and were adequate and operating effectively.
KEY MANAGERIAL PERSON:
Mr. Pravinchandra Gor, Chairman & Managing Director (CMD), Mr. Manish Joshi, Chief
Financial Officer (CFO) and Ms. Shobha Bharti, Company Secretary Cum Compliance Officer
(CS) are the Key Managerial Personnel of the Company. ENVIRONMENT AND POLLUTION
CONTROL:
The Company is well aware of its responsibility towards a better and clean environment.
Our efforts in environment management go well beyond mere compliance with statutory
requirements. The Company has always maintained harmony with nature by adopting
eco-friendly technologies and upgrading the same from time to time incidental to its
growth programmes.
VIGIL MECHANISM/WHISTLE BLOWER POLICY:
Your Company is committed to highest standards of ethical, moral and legal business
conduct. Accordingly, the Board of Directors have formulated a Whistle Blower Policy which
is in compliance with the provisions of Section 177(10) of the Companies Act, 2013. Your
Company has an ethics hotline managed by a third party which employees of your Company can
use to report any violations to the Code of Conduct in an anonymous manner. In addition to
the hotline, the third party also provides a portal wherein employees can raise any
suspected or actual violations to the Code of Conduct. Specifically, employees can raise
concerns regarding any discrimination, harassment, victimization, any other unfair
practice being adopted against them or any instances of fraud by or against your Company.
INDIAN ACCOUNTING STANDARDS (IND AS) IFRS CONVERGED STANDARDS:
The Ministry of Corporate Affairs vide its notification dated 16.02.2015 has notified
the Companies (Indian Accounting Standard) Rules, 2015. In pursuance of this notification,
the Company has adopted IND AS with effect from 1st April, 2017.
THE CHANGE IN NATURE OF BUSINESS:
There is no material changes in the company held during the year.
PARTICULARS OF EMPLOYEES:
A statement containing the names and other particulars of employees in accordance with
the provisions of section 197(12) of the Companies Act, 2013 read with rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended
as "Annexure –C" to this report.
No employee has received remuneration in excess of the limits set out in rules 5(2) and
5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
during FY 2016-17.
ACKNOWLEDGMENT:
The Directors wish to place on record their appreciation to the devoted services of the
workers, staff and the officers who largely contributed to the efficient management of the
Company in the difficult times. The Directors place on record their appreciation for the
continued support of the shareholders of the Company. The Directors also take this
opportunity to express their grateful appreciation for assistance and cooperation received
from the bankers, vendors and stakeholders including financial institutions, Central and
State Government authorities, other business associates, who have extended their valuable
sustained support and encouragement during the year under review.
BY ORDER OF THE BOARD OF DIRECTORS FOR, RIDDHI CORPORATE SERVICES LIMITED.
DATE: 05/09/2017
PRAVINCHANDRA GOR
PLACE: AHMEDABAD
CHAIRMAN & MANAGING DIRECTOR
DIN: - 03267951
+91-9892691696
