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B2B Software Technologies Ltd.

BSE: 531268 Sector: IT
NSE: N.A. ISIN Code: INE151B01011
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VOLUME 105
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P/E 15.97
Mkt Cap.(Rs cr) 14
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Sell Price 12.30
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OPEN 12.36
CLOSE 11.78
VOLUME 105
52-Week high 15.20
52-Week low 6.86
P/E 15.97
Mkt Cap.(Rs cr) 14
Buy Price 0.00
Buy Qty 0.00
Sell Price 12.30
Sell Qty 55.00

B2B Software Technologies Ltd. (B2BSOFTTECH) - Director Report

Company director report

To

The Members

B2B Software Technologies Limited

Your Directors hereby present the Twenty Third Annual Report of your Company togetherwith the Audited Accounts including Consolidated Accounts for the financial year endedMarch 312017 and the report of the Auditors thereon.

1. FINANCIAL RESULTS:

(In Rupees)

Standalone

Consolidated

PARTICULARS: 2016-2017 2015-2016 2016-2017 2015-2016
Revenue from operations 66548881 65543441 101234964 102644395
Other Income 4066009 3399826 4066009 3399826
TOTAL INCOME 70614890 68943267 105300973 106044221
Total Expenditure 58822455 55585776 93564812 92639481
Profit / (Loss) before exceptional Items 11792435 13357491 11736161 13404740
Exceptional Items - - - -
Profit / (Loss) before extraordinary items 11792435 13357491 11736161 13404740
Extraordinary items - - - -
Profit / (Loss) before tax 11792435 13357491 11736161 13404740
Less: Provision for tax - - - -
Fringe Benefit Tax - - - -
Deferred Tax - - - -
Profit / Loss after tax for the year 11792435 13357491 11736161 13404740
Basic and Diluted EPS 1.02 1.15 1.01 1.16

2. INDUSTRY STRUCTURE AND DEVELOPMENT:

Microsoft Dynamics is a growing business and global organizations identify MicrosoftDynamics as the preferred vendor for their next ERP investment. Microsoft Dynamicscustomer relationship management (CRM) and enterprise resource planning (ERP) softwareconnects people processes and systems. With easy to use fast to implement tools tomanage financials supply chain and operations. Microsoft Dynamics is sold by a globalnetwork of solution specialists known as partners or resellers.

3. STATE OF COMPANY'S AFFAIRS:

B2B is one of the Microsoft Partner specialized in providing Implementation servicesfor Microsoft Dynamics ERP in Microsoft Dynamics World. Our diverse clientele includesmid-sized companies and larger enterprises.

As a Microsoft partner - B2B advances and adds value to Microsoft's leading businesssolutions and client relationships by ensuring that companies get the highest level ofattention expertise and results from Microsoft technology.

B2B has developed several Add-on's namely Quality HR & Payroll Plant Maintenanceand Life sciences Vertical for Microsoft Dynamics on NAV and AX.

Detailed note on the operations of the company is provided under the ManagementDiscussion and Analysis forming part of the report.

4. LISTING OF EQUIT SHARES:

The Company's Equity shares are presently listed on BSE Limited and the Company haspaid the Annual Listing Fees to the said Stock Exchanges for the financial year 2016-2017.

5. TRANSFER TO RESERVES:

Your Company has accumulated losses amounting to Rs.52209860/- brought forward fromthe previous years. The profit of Rs. 11792435/- earned during the year has beenadjusted against the losses and the accumulated losses are reduced to Rs.40417425/-.Hence your company does not propose to transfer any amount to the Reserves.

6. CHANGE IN NAUTURE OF BUSINESS IF ANY:

During the year under review there has been no change in the nature of business of theCompany.

7. MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OF THEFINANCIAL YEARAND DATE OF REPORT:

There are no material changes and commitments in the business operations of the Companyfrom the financial year ended 31st March 2017 to the date of signing of theDirectors Report.

8. PERFORMANCE AND FINANCIAL POSITION OF THESUBSIDIARY COMPANY:

During the year the Board of Directors ('the Board') reviewed the affairs of thesubsidiary. In accordance with Section 129(3) of the Companies Act 2013 we have preparedconsolidated financial statements of the Company and its subsidiary which form part ofthe Annual Report. Further a statement containing the salient features of the financialstatement of the subsidiary in the prescribed format AOC - 1 is appended as Annexure 1to the Board's report. The statement also provides the details of performancefinancial positions of each of the subsidiaries. Policy for determining materialsubsidiary as required under SEBI (Listing obligations and Disclosure Requirements)Regulations 2015 is available on the company's website www.b2bsoftech.com.

In accordance with Section 136 of the Companies Act 2013 the audited financialstatements including the consolidated financial statements and related information of theCompany and audited accounts of the subsidiary are available on our website www.b2bsoftech.com.These documents will also be available for inspection during business hours at ourregistered office.

9. CORPORATE GOVERNANCE:

The Corporate Governance Report and a certificate by the Statutory Auditors regardingcompliance of the conditions of corporate governance by your Company as stipulated inRegulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 are annexed to this Report.

10. MANAGEMENT DISCUSSION AND ANALAYSIS:

The Management Discussion and Analysis forms an integral part of this Report and givesdetails of the overall industry structure developments performance and state of affairsof the Company and other material developments during the financial year.

11. STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS:

All the Independent Directors have given declarations of Independence as requiredpursuant to Section 149 (7) of the Companies Act 2013 stating that they meet the criteriaof Independence as provided in sub-section (6) of Section 149 of the Companies Act 2013.

12. MEETING OF INDEPENDENT DIRECTORS:

The performance of the Individual Directors on the Board and the Committees thereof isdone by the Board and the Independent Directors in their exclusive meeting done as per thepolicy formulated by the Board in this regard. The meeting of Independent Directorshappened on 10th December 2016 wherein all the Independent Directors werepresent for the meeting.

13. VIGIL MECHANISM:

In terms of the provisions of Section 177 of the Companies Act 2013 your Company hasformulated a Whistle Blower Policy as a Vigil Mechanism. This mechanism aims forconducting the affairs in a fair and transparent manner by adopting highest standards ofprofessionalism honesty integrity and ethical behaviour. All permanent employees of theCompany are covered underthe policy.

This mechanism is for the employees to report concerns about unethical behaviouractual or suspected fraud or violation of Code of Conduct and Ethics. It also provides foradequate safeguards against victimization of employees who avail of the mechanism andallows direct access to the Chairman of the Audit Committee in exceptional cases.

14. BOARD EVALUATION:

Pursuant to the provisions of the Companies Act 2013 and Regulation 34(3) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 the performanceevaluation of the Board the Committees of the Board and Individual Directors is done onannual basis.

The evaluation is done by the Board Nomination and Remuneration Committee andIndependent Directors with specific focus on the performance and effective functioning ofthe Board and Individual Directors.

15. CHANGES IN DIRECTORS:

INDUCTIONS:

The Company has not made any appointment of Directors during the year under review.

RE-APPOINTMENTS:

As per the provisions of Section 152 of the Companies Act 2013 read with Companies(Qualifications and Appointment of Directors) Rules 2014 Dr. Murthy Mutyala (DIN:02394524) retires at the ensuing Annual General Meeting and being eligible offers himselffor re-appointment. The Board recommends his re-appointment.

None of the independent directors will retire at the ensuing Annual General Meeting.

RESIGNATIONS:

None of the Directors have resigned during the year under review.

CHANGES IN KEY MANAGERIAL PERSONNEL:

There have been no changes in KMP (Key Managerial Personnel) during financial year2016-17. The following are the KMP as on date:

1. Dr. Ramachandra Rao Nemani - Chief Executive Officer

2. Mr. Sunil Nemani - Chief Financial Officer

3. Mr. V. Bala Subramanyam - Executive Director

4. Mr. V. V. Nagendra - Executive Director

RE-APPOINTMENT OF EXECUTIVE DIRECTORS:

Mr. V. Bala Subrmanyam and Mr. V. V. Nagendra were appointed as Executive Directors ofthe Company with effect from 151 October 2014 for a period of three years.Their office as the Executive Directors of the Company ceases on 30th September2017.

Considering the services rendered by Mr. V. Bala Subramanyam and Mr. V. V. Nagendra forthe growth of the Company the Board of Directors based on the recommendation and approvalof the Nomination and Remuneration Committee decided to re appoint them as the ExecutiveDirectors of the Company for a further period of three years on the terms and conditionsmentioned in the notice convening the 23rd Annual General Meeting.

Mr. V. Bala Subramanyam and Mr. V. V. Nagendra have given their consent for reappointment and stated that they stand free from disqualification from being re appointed.The Board recommends their re appointment.

The Company has not appointed any Whole Time Company Secretary as required under theprovisions of Section 203 of the Com pan ies Act 2013

16. NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS:

During the year under review 5 (Five) Board meetings were held on the following dates:

a. 23.04.2016

b. 13.08.2016

c. 08.11.2016

d. 10.12.2016

e. 09.02.2017

Attendance of Directors at the Board Meetings and Annual General Meeting has beenfurnished in the Corporate Governance Report which forms part of the Directors Report.The intervening gap between any two Board Meetings was within the period prescribed underthe provisions of the Companies Act 2013. All the recommendations given by the AuditCommittee are accepted by the Board.

17. COMMITTEES OF THE BOARD:

a. Audit Committee:

The Audit Committee constitutes of Mr. M. Rambabu Mr. A. Rambabu Mr. Ch. Suresh Ms.Rajeswari Immani Dr. Murthy Mutyala and Dr. Ramachandra Rao Nemani. The Board ofDirectors have accepted all the recommendations given by the Audit Committee. Mr. M.Rambabu is the Chairman of the Audit Committee. The terms and reference of Audit Committeeand details of meetings held during the financial year 2016 - 2017 and the attendance ofmembers are given in the Corporate Governance Report which forms part of the DirectorsReport.

b. Nomination and Remuneration Committee:

The Nomination and Remuneration Committee consists of Mr. A. Rambabu Mr. M. RambabuMs. Rajeswari Immani Mr. Ch. Suresh and Dr. Murthy Mutyala. Mr. A. Rambabu is theChairman of the Nomination and Remuneration Committee. The terms of reference and theNomination and Remuneration policy and details of meetings held during the financial year2016 - 2017 and the attendance of members are provided in the Corporate Governance Reportwhich forms part of the Directors Report.

c. Stakeholders Relationship Committee:

The Stakeholders Relationship Committee consists of Mr. Ch. Suresh Mr. M. Rambabu andMr. V. V. Nagendra. Mr. Ch. Suresh is the Chairman of the Committee. The terms ofreference and the details of meetings held during the financial year 2016-2017 and theattendance of the members are provided in the Corporate Governance Report which formspart of the Directors Report

18. INTERNAL FINANCIAL CONTROL:

The Board has adopted the policies and procedures for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial disclosures.

19. DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to the requirement of Section 134(5) of the Act and based on therepresentations received from the management the directors hereby confirm that:

I. in the preparation of the annual accounts for the financial year 2016 -17 theapplicable accounting standards have been followed and there are no material departures;

ii. selected such accounting policies and applied them consistently and made judgmentsand estimates that are reasonable and prudent so as to give a true and fair view of thestate of affairs of the Company at the end of the financial year and of the profit of theCompany for the financial year;

iii. and sufficient care to the best of their knowledge and ability for the maintenanceof adequate accounting records in accordance with the provisions of the Act. They confirmthat there are adequate systems and controls for safeguarding the assets of the Companyand for preventing and detecting fraud and other irregularities;

iv. prepared the annual accounts on a going concern basis;

v. laid down internal financial controls to be followed by the Company and that suchinternal financial controls are adequate and operating properly; and

vi. devised proper systems to ensure compliance with the provisions of all applicablelaws and that such systems were adequate and operating effectively

20. PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS:

During the financial year 2016- 17 your Company had not given any loans or provided anyguarantees or made any investments as specified under the provisions of Section 186 of theCompanies Act 2013 read with rules made there under.

21. TRANSACTIONS WITH RELATED PARTIES:

There were no related party transactions during the year except that entered in theordinary course of business and on arms length basis. There were no materially significantrelated party transactions between your Company and the Directors promoters KeyManagerial Personnel and other designated persons which may have a potential conflict withthe interest of company at large. Policy on the related parties as required under SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 is available on thecompany's website: www.b2bsoftech.com

All the material contracts with related parties have been approved by the AuditCommittee and the Members of the Company. Form AOC - 2 for disclosure of particulars ofcontracts / arrangements entered into by your company with related parties is attachedherewith as Annexure-II.

22. RISK AND RISK MITIGATIONS

Microsoft Dynamics being a growing business new entrants into the market andcompetition will continue to exert pricing pressure undermining industry profitability.Strategic positioning and generating higher level of economic value by continuing to buildIP and offer value added services around verticals and add-on's is mandatory.

Scale of operations is limited to the existing level unless a fresh funding route isidentified. The Board of Directors of your company have not identified any risks whichwill affect the going concern nature of the company.

23. TECHNOLOGY ABSORPTION ENERGY CONSERVATION & FOREIGN EXCHANGE EARNINGS ANDOUTGO:

Information in accordance with clause (m) of sub section (3) of Section 134 of theCompanies Act 2013 is annexed herewith as Annexure - III to this report.

24. PARTICULARS OF EMPLOYEES:

The information required pursuant to Section 197 of the Companies Act 2013 read withRule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 in respect of employees of the Company are provided in Annexure - IV and forms partof this report.

The statement containing particulars of employees as required under Section 197 of theCompanies Act 2013 read with Rule 5 (2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 is provided in Annexure - IV and forms part of thisreport.

The Nomination and remuneration committee of the Company has affirmed that theremuneration is as per the Remuneration policy of the Company.

Your Directors take this opportunity to record their deep appreciation of thecontinuous support and contribution from all employees of the Company.

25. CORPORATE SOCIAL RESPONSIBILITY:

Your Company does not fall under any of the criteria specified under the provisions ofCompanies Act 2013. Hence the Company has not constituted any committee and is notrequired to furnish any information in this report as required under the provisions of thesaid Act.

26. EXTRACT OF ANNUAL RETURN:

As required under Sub-Section (3) of Section 92 of the Companies Act 2013 and Rule12(1) of the Companies (Management and Administration) Rules 2014 an extract of AnnualReturn in Form MGT - 9 forms part of this report as Annexure-V.

27. PREVENTION OF INSIDERTRADING:

Your Company has adopted the Code of Fair Disclosure and Code of Conduct for regulatingthe dissemination of Unpublished Price Sensitive Information and trading in securities byInsiders.

28. DEPOSITS:

During the year under review your Company has not accepted any fixed deposits and assuch no amount of principal or interest was outstanding as of the Balance Sheet date.

29. AUDITORS:

a. Statutory Auditors:

At the Annual General Meeting held on September 30 2014 M/s. Umamaheswara Rao &Co. Chartered Accountants were appointed as the Statutory Auditors of the Company tohold office till the conclusion of the Annual General Meeting to be held in the calendaryear 2019. In terms of the first proviso to Section 139 of the Companies Act 2013 theappointment of the auditors shall be placed for ratification at every Annual GeneralMeeting. Accordingly the appointment of M/s. Umamaheswara Rao & Co. CharteredAccountants as the statutory auditors of the Company is placed for ratification by theshareholders. In this regard the Company has received a certificate from the auditors tothe effect that if they are reappointed it would be in accordance with the provisions ofSection 141 of the Companies Act 2013.

There are no specifications reservations adverse remarks on disclosures by theStatutory Auditors in their report. They have not reported any incident of fraud to theAudit Committee of the Company during the year under review.

b. Secretarial Auditor:

Pursuant to the provisions of Section 204 of the Companies Act 2013 and Rule 9 of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 the Companyhas appointed Mrs. K. Jhansi Laxmi Company Secretary in Whole time Practice to undertakethe Secretarial Audit of the Company for the financial year 2016-2017. The SecretarialAudit report is annexed herewith as Annexure-VI

REPLYTO OBSERVATION RAISED BYTHE SECRETARIAL AUDITOR:

1. Owing to the financial position of the Company we are not able to find a Whole TimeCompany Secretary who is suitable for our size of Company. The Company is still in processof search of a Whole Time Company Secretary.

2. The Company is in the process of complying with the requirement of achieving 100%holding of the promoters in demat forms as required under the SEBI (Listing obligationsand Disclosure Requirements) Regulations 2015

30. DISCLOSURE AS PER SEXUAL HARRASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITIONAND REDRESSAL) ACT 2013:

The Company has zero tolerance for sexual harassment at workplace and has adopted apolicy on prevention prohibition and redressal of sexual harassment at workplace in linewith the provisions of Sexual Harassment of Women at Workplace (Prevention Prohibitionand Redressal) Act 2013 and the rules framed there under.

During the financial year 2016 -17 the Company has not received any complaints onsexual harassment.

31. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS:

There are no significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and Company's operations in future.

32. ACKNOWLEDGEMENTS:

Your Directors place on record their appreciation for the assistance and co-operationextended by the Bankers STPI Customs and Central Excise and various State and CentralGovernment Agencies. Your Directors also thank all the Customers Members and Employeesfor their valuable support and confidence in the Company.

For and on behalf of the Board

V. BALA SUBRAM AN YAM V. V. NAGENDRA
Place: Hyderabad Executive Director Executive Director
Date : 14.08.2017 DIN:06399503 DIN:0231729

Annexure -1 to the Directors Report

[Pursuant to first proviso to sub-section (3)of Section 129 read with Rule-5 ofCompanies (Accounts) Rules 2014] Statement containing salient features of the financialstatement of subsidiaries / associate companies / joint ventures

Part "A" Subsidiaries

(Information in respect of each subsidiary to be presented with amounts in Rs.)

SI. No. Particulars Details
1. Name of the Subsidiary B2B Softech Inc. USA
2. The date since which subsidiary has been acquired 17th July 2001
3. Reporting period for the subsidiary concerned if different from the holding company's reporting period N. A.
4. Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries USD 64.8386
5. Share Capital 3381120
6. Reserves & Surplus 37358
7. Total Assets 4705340
8. Total Liabilities 4705340
9. Investments -
10. Turnover 34686084
11. Profit before taxation (56273)
12. Provision for taxation (56273)
13. Profit after taxation -
14. Proposed dividend -
15. % of shareholding 100%

Notes: The following information shall be furnished at the end of the statement

1. Names of the subsidiaries which are yet to commence operations: NIL

2. Names of the subsidiaries which have been liquidated or sold during the year: NIL

PART "B": Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act 2013 related to AssociateCompanies and Joint Ventures:-

The Company does not have any associate companies and Joint Ventures. Hence theinformation required under this head is not being furnished.

Annexure - II to the Directors Report Form No. AOC-2

[Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) ofthe Companies (Accounts) Rules 2014)]

Disclosure of particulars of contracts/arrangements entered into by the Company withrelated parties referred to in sub-section (1) of Section 188 of the Companies Act 2013including certain arms length transactions under third proviso thereto.

1. Details of contracts or arrangements or transactions not at arm's length basis: Nil

a) Name(s) of the related party and nature of relationship

b) Nature of contracts/arrangements/transactions

c) Duration of the contracts/arrangements/transactions

d) Salient terms of the contracts or arrangements or transactions including the valueif any

e) Justification for entering into such contracts or arrangements or transactions

f) Date(s) of approval by the Board

g) Amount paid as advances if any

h) Date on which the special resolution was passed in general meeting as required underfirst proviso to Section 188

2. Details of material contracts or arrangement or transactions at arm's length basis:

Name(s) of the related party and nature of relationship Genius Doc Mr. Sunil Nemani Dr. Ram Nemani
Nature of contracts / arrangements / transactions Product Development and resource allocation Appointment as Chief Financial Officer Appointment as Chief Executive Officer
Duration of the contracts / arrangements / transactions 01st Jan 2016 to 31st Dec 2020 Not Applicable Not Applicable
Salient terms of the contracts or arrangements or transactions including the value if any Subject to cancellation by the company with three months notice. Renewal term automatic renewal for second five year term with the same terms and conditions. Payment for resources at direct resource cost plus 50% markup. Reimbursement of travel and local living expenses Provision of Car Driver and Boarding while onsite for the business of the ompany. They have waived to receive remuneration Reimbursement of travel and local living expenses Provision of Car Driver and Boarding while onsite for the business of the ompany. They have waived to receive remuneration
Date(s) of approval by the Board if any 14.08.2015 23.08.2014 23.08.2014
Amount paid as advances if any Nil Nil Nil

Annexure - III to the Directors Report

Information under Section 134(3)(m) of the Companies Act 2013 read with Rule 8 (3) ofthe Companies (Accounts) Rules 2014 and forming part of the Directors Report

A. CONSERVATION OF ENERGY:
a. the steps taken or impact on conservation of energy NIL
b. the steps taken by the company for utilizing alternate sources of energy NIL
c. capital investment on energy conservation equipments NIL
B. RESEARCH AND DEVELOPMENT:
1. Specific areas in which research & development is carried out: NIL
2. Benefits derived: NIL
3. Future plan of Action: NIL
4. Expenditure on R & D: NIL
C. TECHNOLOGY ABSORPTION:
a. Efforts in brief made towards Technology absorption adoption and innovation : NIL
b. Benefits derived as result of the above efforts e.g. product improvement cost reduction production development import substitution etc.: NIL

D. In case of imported technology imported during the last 5 years reckoned from thebeginning of the financial year following information may be furnished:

a. Technology Imported: NIL
b. Year of Import: NIL
c. Has technology fully absorbed areas where this has not been taken place reasons thereof and plan of action: NIL

E. FOREIGN EXCHANGE EARNINGS AND OUTGO:

a. Activities relating to exports initiatives taken to increase exports developmentof new export markets for products and services and export plans:

I. Reaching Microsoft Partners for Add-on sales by enrolling them as resellers.

ii. Reaching Microsoft Partners for Resource placement requirements onsite and offshore development works

iii. Signing up exclusive agreement with partners for specific countries for Add-onsales.

b. Total Foreign Exchange used and earned:

SI. No. Particulars of the transaction 2016-2017 2015-2016
(in Rs.) (in Rs.)
1. Total Foreign Exchange earnings 37764066 41497563
2. Foreign Exchange outgo - -
a. on account of import - -
b. on account of import of Equipment - -
c. on account of Travel - -
d. on account of payment of dividend - -
Total Foreign Exchange outgo - -

Annexure - IV to the Directors Report

Particulars of employees pursuant to Section 134 (3) (q) and Section 197 (12) of theCompanies Act 2013 read with Rule 5 (1) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 forming part of the Directors' Report for the year endedMarch 312017

SI. No. Requirements of Rule 5 (1) Details
1. Ratio of remuneration of each director to the Mr. V. V. Nagendra 9.20:1
median remuneration of the employees of the Company for the financial year 2016-17 Mr. V Bala Subramanyam (Annualised) 9.38:1
Dr Ramachandra Rao Nemani NA
Dr. Y Satyanarayana NA
Dr. Murthy Muthayala NA
Mr. M. Rambabu NA
Mr. A. Rambabu NA
Mr. CH Suresh NA
Ms. Rajeswari Immani NA
2. The percentage increase in remuneration of each director Chief Financial Officer Chief Executive Officer Company Secretary or Manager if any in the financial year 2016 - 17 DIRECTORS
Dr Ramachandra Rao Nemani NA
Dr. Y Satyanarayana NA
Dr. Murthy Muthayala NA
Mr. M Rambabu NA
Mr. A Rambabu NA
Mr. CH Suresh NA
Ms. Rajeswari Immani NA
KEY MANAGERIAL PERSONNEL
Dr. Ramachandra Rao Nemani Neman NA
Mr. V. V. Nagendra 0.17
Mr. V. Bala Subramanyam 3.05
Mr. Sunil Nemani NA
3. The percentage increase in the median remuneration of employees in the financial year 2016-17 13.64
4. The number of permanent employees on the rolls of the Company as on 31st March 2017 82
5. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration Average increase in the salaries of employees other than the managerial personnel in the Financial year 2016-17 was 13.64% in comparison with 1.61% increase managerial remuneration.
6. Affirmation that the remuneration is as per the remuneration policy of the company Remuneration paid during the year ended 31st March 2017 is as per the Remuneration policy of the Company.

Statement pursuant to Rule 5(2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 forming part of the Directors' Report for the year endedMarch 312015

(A) Personnel who are in receipt of remuneration aggregating not less thanRs.10200000 per annum and employed through out of the financial year

Name Designation & Nature of Duties Remuneration (Gross) Qualification Date of Commencement of Employment Age in Years Last Employment
NIL

B) Personnel who are in receipt of remuneration aggregating not less than Rs.850000per month and employed for part of the financial year

Name Designation & Nature of Duties Remuneration (Gross) Qualification Date of Commencement of Employment Age in Years Last Employment
NIL