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Centerac Technologies Ltd.

BSE: 531621 Sector: IT
NSE: N.A. ISIN Code: INE157B01026
BSE LIVE 15:08 | 10 Oct 0.92 0.04
(4.55%)
OPEN

0.92

HIGH

0.92

LOW

0.92

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 0.92
PREVIOUS CLOSE 0.88
VOLUME 5000
52-Week high 2.00
52-Week low 0.88
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.84
Buy Qty 500.00
Sell Price 0.92
Sell Qty 1000.00
OPEN 0.92
CLOSE 0.88
VOLUME 5000
52-Week high 2.00
52-Week low 0.88
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.84
Buy Qty 500.00
Sell Price 0.92
Sell Qty 1000.00

Centerac Technologies Ltd. (CENTERACTECH) - Director Report

Company director report

EZ-COMM TRADE TECHNOLOGIES LIMITED ANNUAL REPORT 2009-2010 DIRECTOR'S REPORT To The Members Your Directors have pleasure in presenting the Seventeenth Annual Report together with the Audited Statement of Accounts for the year ended the 31st March 2010. Financial Results: (in Rs.) Year ended Year ended 31-03-2010 31-03-2009 In Rupees In Rupees Profit/(Loss) before tax 65,895.00 (54,08,958.00) Less : Provision for taxation: Current Tax/Fringe Benefit Tax Nil Nil Provision for Deferred Tax (Net) 5,73,933.00 (5,09,277.00) Add: Excess Provision for Income Tax/FBT written Back Nil 32,356 Add: Excess Provision for Depreciation Written Back 7,51,634.00 Nil Add : Prior Period Adjustments (2,937.00) (949.00) Profit/(Loss)after tax 2,40,659.00 (48,68,274.00) Add : Surplus/(Deficit) brought forward (4,89,26,990.00) (4,40,58,716.00) Balance carried to Balance Sheet (4,86,86,331.00) (4,89,26,990.00) Income, Activities & Operations: During the year, the Company earned Rs.5,00,137.00 as sales income and Rs.28,32,560.00 as other income and was able to make a marginal profit of Rs.2,40,659.00 as against the loss of Rs.48.68.274.00 in the previous year and the Company expects good returns in the coming years. Dividend: The Directors do not recommend any dividend. Public Deposits: The Company has not accepted any Deposit within the meaning of Section 58A of The Companies Act, 1956 and the rules made thereunder during the year. Directors: Mr. Khushrow Shiavax Patel retires by rotation and being eligible, offers hemself for re-appointment. Directors' Responsibility Statement: Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, it is hereby confirmed: (i) That in the preparation of the accounts for the financial year ended 31st March 2010, the applicable accounting standards have been followed along with proper explanation relating to material departures; (ii) That the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that were fairly reasonable and prudent so as to give a true and fair view of the state of affairs of the Company for the year under review; (iii) That the Directors have taken proper and sufficient care 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) That the Directors have prepared the accounts for the financial year ended 31st March 2010 on a 'going concern' basis. Particulars of Employees: The Company has not paid any remuneration attracting the provision of Companies (Particulars of Employees) Rules, 1975 read with Section 217(2A) of the Companies Act, 1956, as amended. Hence, there is no requirement to append any information to this report in this regard. Particulars of Energy Conservation, Technology absorption & Foreign Exchange Earnings and outgo: Since the Company has ventured into the e-commerce and software development business and there are no manufacturing activities, there are no particulars relating to conservation of energy and technology absorption. The following foreign exchange earnings and outgo were there during the year: Foreign Exchange earned : Nil (Previous year Rs. 29,562.00) Foreign Exchange used: Travelling : Rs.31,309.00 (Previous Year Rs. Nil) Business Promotion : Rs.15678.00 (Previous Year Rs. Nil) Hosting Charges : 6055.00 (Previous Year Rs. Nil) Auditors: M/s A.J. Mehta & Associates, Chartered Accountants, Mumbai, the Auditors of the Company retire at the conclusion of the Annual General Meeting. The Company has received letters from them to the effect that their appointment, if made, would be within the prescribed limits under Section 224 (1-B) of the Companies Act, 1956. The Board recommends their re- appointment. Auditors' Report: The Auditors' Report is attached to the Balance Sheet as at 31st March 2010. The comments of the auditors to the accounts referred to in the Auditors' Report are self-explanatory. Subsidiary: The Audited Statements of Accounts of the Subsidiary Company and the Auditors' Report thereon for the Year ended 31st March, 2010 has been attached to the balance sheet along with statement pursuant to Section 212 of the Companies Act, 1956, relating to the said Subsidiary Company. Listing: The Equity Shares of the company are listed on The Stock Exchange, Mumbai, The Stock Exchange, Ahmedabad and The Delhi Stock Exchange Association. The company's shares are tradable compulsorily in electronic form and the company has established connectivity with both the depositories, i.e. Central Depository Services (India) Ltd. & National Securities Depository Ltd. The company has also appointed M/s LINK INTIME INDIA PRIVATE LIMITED as its Share Transfer and Depository Registrars. Shareholders are requested to send the matters relating to share transfers and/or dematerialisation to the Company Registrars. In view of the numerous advantages offered by the depository system, members are requested to avail of the facility of dematerialisation of the company's shares on either of the Depositories as aforesaid. Corporate Governance: In line with the guidelines stipulated by the Securities and Exchange Board of India (SEBI) Committee on Corporate Governance, adequate steps have been taken to ensure that most of the provisions of Clause 49 of the Listing Agreement are duly complied with. A separate report on corporate governance is included/ attached as part of the Annual Report. The Auditors' Certificate confirming Compliance of Conditions of Corporate Governance is included in the said Corporate Governance Report. The Company is soon to induct more Directors. Acknowledgement: The Directors record their thanks to all the banks for their co-operation. The Directors also acknowledge the co-operation received from officers and staff of the Company. For and on behalf of the Board of Directors Sd/- Place : Mumbai Sanjiv Khandelwal Dated : 13th May, 2010 Chairman and Managing Director Management Discussion & Analysis Report: Industry Structure & Development: The Indian IT industry growth was normal during the year: However, in the course of the last decade, India's IT software industry has scripted one of the most amazing success stories by contributing very substantially to India's flourishing forex reserves and to employment, alongwith radically altering the country's image and standing amongst nations. Opportunities & Threats: IT, when appropriately used, has proven to be of immense benefit in increasing efficiency, cutting costs, improving decision-making and providing better customer service. There are document case studies on how IT has helped reduce inventories, cut down time-to-market, and generally improved the bottom-line of companies. As an enabler and enhancer, IT is clearly a major productivity too. India's software expertise has helped foreign companies - and countries - to become more competitive. So far, most of this has been to companies / counties that are not in direct competition with Indian companies or India. It would, indeed, be ironical if Indian software expertise were to enhance a competitor's productivity, and help it overtake Indian companies. (Source: NASSCOMM report) Risk and Concerns: Technology Obsolescence: EZ-COMM manages potential operational risks by adopting continuous technological upgradation of technologies and systems. Intellectual Property: Although the Company takes adequate precautions to protect its Intellectual Property (IP), it faces the risk of others using and gaining from its IP. Insurance: The Company needs to consider insurance of its assets and operations against a wide range of risks as part of its overall risk management strategies. The management is now considering the same. Internal Controls: EZ-COMM has proper and adequate system of internal controls to ensure that all assets are safeguarded, and protected against loss from unauthorised use or disposition, and that transactions are authorised, recorded and reported correctly. The internal control systems are supplemented by an extensive programme of internal audits, reviews by management, and documented policies, guidelines and procedures. The internal control systems are designed to ensure that the financial and other records are reliable for preparing financial statements and other data, and for maintaining accountability of assets. Discussions on Financial Performance with respect to operational Performance: During the year, the Company earned Rs.5,00,137.00 as sales income and Rs.28,32,560.00 as other income and was able to make a marginal profit of Rs.2,40,659.00 as against the loss of Rs.48.68.274.00 in the previous year and the Company expects good returns in the coming years. Global markets and the economy are not in a progressive mood. The Company expects better returns, development and progress in the coming time. The Company has spent considerable resources in creating technologies for the Wireless business. The Company has ventured into the Wireless Internet connectivity business. This new technology of providing Wireless Broadband Internet connection by creating 'Hotspots' is being pioneered in India by EZ-COMM. The Company built cutting edge technology that lets users access this service in designated area through the use a Prepaid cards. This is quite new to our country. Already, a few Five-Star Hotels have signed agreements to deploy this internet technology in their respective hotels and a couple of them are ready for kick-off soon. The Company expects good returns in the coming years. Material Development in Human Resources / Industrial Relations: Company hires the best talent from anywhere in the country to attract the best people that it needs for its services. The Company has well designed training programme to take care of the training needs of the professionals to keep them abreast of the new technologies changes. The Company enjoys healthy relations with its customers, investors, employees, banks, and various state and central government departments. To offer the most cost-effective solutions to the overseas existing clients and also to capture new clients, the Company also recruits highly skilled technical persons from reputed institutes. Cautionary Statement: Statements in the Management Discussion and Analysis describing the Company's objectives, projections estimates, and exceptions may be 'forward looking statements' within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Company's operations include economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.