KLG SYSTEL LIMITED
ANNUAL REPORT 2010-2011
1. To the Members:
Your Directors take pleasure in presenting the Twenty Sixth Annual Report
of the Company together with Audited Financial Statement of Accounts for
the year ended March 31, 2011.
2. Financial Results:
The financial results of the Company are summarized here under:
(Rs. In Millions)
Year ended Year ended
Sales and Services 971.29 2359.44
Profit before interest and depreciation (174.37) 714.34
Interest (290.13) (210.83)
Depreciation (253.72) (189.24)
Profit before tax (809.26) 314.27
Provisions & Adjustments for tax 267.47 (113.76)
Prior Period Adjustments (0.34) (2.33)
Profit after tax (541.44) 198.18
Surplus brought forward from previous year 221.18 130.42
Amount available for Distribution - 328.59
Prior period adjustment of dividend,
including dividend tax
Proposed dividend - 6.35
Tax on proposed dividend - 1.05
Transfer to general reserve - 100.00
Balance carried forward (320.26) 221.19
3. Sales and Profitability
Fiscal year 2010-2011 was challenging period for the whole industry and for
your Company as well.
Your company has reported a turnover of Rs. 971 million as compared to
Rs.2,359 million for the corresponding previous year. The Company reported
loss before interest, depreciation and tax of Rs.174.37 million as compared
to profit of Rs. 714 million for the corresponding previous year. The
Company reported a loss before tax of Rs. 809.26 million as compared to
profit before tax of Rs. 314 million for the last year. The loss after tax
of Rs. 541.44 million as compared to profit after tax of Rs. 198 million
for the previous year. The main reason for loss is because of payments
stuck in EPC projects and also the company's decision not to proceed with
EPC business. Your Directors are putting in their best efforts to improve
the performance of the Company.
In view of losses incurred by the Company, your Directors have not
recommended any Dividend on Equity Shares for the financial year ended on
March 31, 2011.
5. Future Outlook
During financial year 2010-2011 though we started our operations on a
positive note, however the global economic scenario has put a tremendous
pressure on the whole industry and on your Company too. Details on future
outlook are discussed for both Strategic Business Units of the company
The revenue and profitability has gone down compared to financial year
2009-2010. The decline in revenue and profitability can be attributed to
the recessionary conditions in industry and infrastructure. As such the
company hopes that revenues shall be better in financial year 2011-12 as
compared to 2010-2011.
Power Systems Solutions
During the financial year 2010-11, your company has been awarded an order
of Rs. 897.6 millions from Chattisgarh State Power Distribution Company
Limited (CSPDCL) to act as an IT Implementing Agency in CSPDCL under part A
of R-APDRP program of the Government of India. Though your company was
technically qualified in various other bids for different utilities in
India, it was not able to win any contract because of lower price bids from
the competitors. This has been a major set back for the company. Some
tenders are still under finalization and your company has made competitive
bids for the same.
Your company has developed Connectgaia.com technology for Energy
Efficiency. During the year it has been successfully deployed in Pune
Mahanagar Corporation, CPWD-Mumbai, PWD-Delhi, JUSCO, Kolhapur Muncipal
Corporation, Maharashtra Jeevan Pradhikaran and Indian Railways. With the
increasing pressure on Clean Environment and Global Warming; your company
is hopeful that this technology shall find a large national and
6. Conservation of Energy, Research and Development, Technology Adaptation,
Foreign Exchange Earnings and Outgo
Information pursuant to 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 is as under:
* Conservation of Energy
The utilization of energy is minimal and need based. The Management of the
Company is conscious of the need to conserve energy resources and adopts
conservation measures in operations wherever applicable.
* Research & Development and Technology Absorption
A. Research and Development (R & D):
The Company strongly believes that continuous innovation through Research
and Development is the only way for compounded growth in future. It has
intensified efforts in R&D by setting up a team for development of new
technologies and products. The Company has also procured software tools
(and trained engineers for using these) from World leaders in their
respective fields to make it a World-class software development
A revenue expenditure of Rs. 13 million (previous year: Rs. 25 million) was
incurred during the period under review on activities relating to research
and development while the capital expenditure (previous year: Rs. 12
B. Technology Absorption, Adaptation and Innovation
The Company has various strategic alliance partners, all-renowned in their
respective areas, and is continuously adapting the latest technologies
available through these partners.
* Foreign Exchange Earnings and Outgo:
During the year under review the earnings and outgo in foreign exchange
were of the order of Rs. 5.46 million (previous year: 4.53 million) and
Rs.113.81 million (previous year: Rs. 172 million) respectively.
7. Directors Responsibility Statement:
The Directors confirm that:
(i) In the preparation of the annual accounts, the applicable accounting
standards have been followed, along with proper explanation relating to
(ii) The directors have selected such accounting policies 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 and of the profit or loss of the
company for that period;
(iii) 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 frauds and other irregularities;
(iv) The directors have prepared the annual accounts on a going concern
8. Corporate Governance
The Board of Directors support the concept of Corporate Governance and
having regard to transparency, accountability and rationale behind the
decisions have made proper disclosures at Annexure I as a separate report
under the heading 'Corporate Governance'.
A Certificate from the Statutory Auditors confirming compliance of the
conditions of Corporate Governance as per the requirement of Clause 49 of
the Listing Agreement with the Stock Exchanges is Annexed to the Report on
9. Management Discussion and Analysis Report
The report as required under the Listing Agreement is at Annexure II and
forms a part of the Directors' Report.
10. Listing of Securities:
- Presently, the Equity Shares of the Company are listed on the following
i) National Stock Exchange of India Limited.
(NSE) Exchange Plaza,
Bandra (E), Mumbai-400 051
ii) Bombay Stock Exchange Limited. (BSE)
Phiroz Jeejee Bhoy Towers,
The listing fee of above mentioned stock exchanges for the year 2011-2012
has already been paid.
- Global Depository Receipts (GDRs) of the Company are listed on Luxembourg
Stock Exchange (LuxSE).
Foreign Currency Convertible Bonds (FCCBs) of the Company are listed on
Singapore Stock Exchange (SGX-ST).
11. Issue of further securities:
A. Global Depository Receipts (GDRs):
During the year ended March 31, 2007 the Company had raised US $ 7,499,700
by issue of 2,307,600 Global Depositary Receipts (GDR) in international
markets. Each GDR holder is entitled to convert GDR into one equity shares
worth Rs.10.00 each fully paid up. These GDR's are listed on the Luxembourg
As on March 31, 2011, 2,306,850 GDRs were cancelled and converted into
equivalent number of underlying shares. 750 GDRs are still outstanding.
B. Foreign Currency Convertible Bonds (FCCBs):
During the year ended March 31, 2007 the Company issued 2200, 1% Coupon
bearing Foreign Currency Convertible Bonds ('Bonds'/'FCCBs') of US$10000/-
each aggregating US$ 22 million, due in 2012. These Bonds are convertible
at any time up to March 16, 2012 by holders into fully paid equity shares
of Rs. 10 each with full voting rights ('Shares') at a Conversion Price of
Rs.400 per share and subsequently Conversion Price has been reset to Rs.350
per share. The conversion rate for US dollar has been fixed at USD
Unless previously converted, redeemed or purchased and cancelled, the Bonds
will be redeemed in US dollars on March 27, 2012 at 144% of their principal
amount. The Bonds may be redeemed, in whole but not in part, at any time at
the option of the Company at their Accreted Principal Amount if less than
10% of the aggregate principal amount of the Bonds originally issued
remains outstanding. The Bonds may also be redeemed in whole but not in
part at any time at the option of the Company at their Accreted Principal
Amount in the event of certain changes relating to taxation in India. The
Company will, at the option of any bondholder, redeem such holder's Bonds
at their Accreted Principal Amount upon certain events such as Delisting of
the Shares or upon the occurrence of Relevant Event etc.
Presently, the outstanding FCCBs are of US$ 16 million. During the year,
bondholders have not exercised the option to convert their bonds in the
These Bonds are listed on the Singapore Exchange Securities Trading Limited
12. Human Resources and Employee Stock Option Scheme
Human resources are the key resource for your Company. Your Company has
been able to create and continuously improve a favourable work environment
that encourages novelty and meritocracy at all levels. Employee relations
remained cordial at all Company's locations. The Directors take this
opportunity to record their appreciation for the outstanding contribution
of all employees.
The Company had instituted KLG Systel Limited Employee Stock Option Scheme
2005 to reward and help retain its employees/ directors and to enable them
to participate in its future growth and financial success. The Company, on
April 12, 2006 had granted 2,99,500 Employee Stock options to the
employees/directors of the Company @ Rs. 119.58 per option, which after
exercise are to give rise to equivalent number of equity shares of Rs. 10/-
The company instituted another Employee Stock Option Scheme 2007, the
approval for which was obtained by way of special resolution passed by
shareholders in its Annual General Meeting held on September 08, 2006. The
Company, on May 26, 2008 had granted 69,000 Employee Stock Options to the
employees of the Company @ 631.40 per option, which after exercise are to
give rise to equivalent number of equity shares of Rs. 10/- each.
The Compensation Committee at its meeting held on May 26, 2008 has granted
38,500 options to the employees of the Company at Rs. 621.22 (based on
price determined as per the approved Scheme) under the KLG Systel Employee
Stock Option Scheme 2005.
13. Consolidated Financial Statements
Pursuant to Clauses 32 and 50 of the Listing Agreement, your Company has
prepared Consolidated Financial Statements as per the Accounting Standards
applicable to the Consolidated Financial Statements issued by the Institute
of Chartered Accountants of India. Audited Consolidated Financial
Statements along with the Auditor's Report are annexed in this Report.
14. Subsidiary Companies
As on March 31, 2011, KLG Systel Limited has two subsidiary companies
namely (i) KLG Software Technology and Infrastructure Private Limited and
(ii) KLG Power Limited.
Pursuant to the General Circular No 2/2011 dated February 08, 2011 of the
Ministry of Corporate Affairs (Government of India), the Company need not
attach the Balance Sheets of its subsidiary companies, however in
accordance with the conditions stated in the aforesaid Circular, the
Company hereby undertakes that it shall make available the individual
annual accounts of its subsidiary companies to the holding and subsidiary
Company investors, on receipt of any request for the same.
The annual accounts of the subsidiary companies will also be kept for
inspection by any investor in its registered office and that of the
subsidiary company concerned. The Company is presenting the consolidated
financial statements of its subsidiaries as required under the Accounting
Standard-21 (AS-21) on consolidation of financial statements. Particulars
required to be given under the provisions of Section 212 of the Companies
Act, 1956 in respect of the subsidiary companies, are appended.
15. Transfer to Investor Education and Protection Fund
In terms of the provisions of Section 205C of the Companies Act, 1956, the
Company has transferred an amount of Rs.0.164 million, being the amount of
unclaimed dividend for the financial year ending March 31, 2003 to the
Investor Education and Protection Fund established by Central Government.
M/s B. Bhushan & Co., Chartered Accountants, the Auditors of the Company
hold office till the conclusion of the ensuing Annual General Meeting of
the Company and being eligible offer themselves for re-appointment.
Mr. Prabir Purkayastha was appointed as an Additional Director by the Board
of Directors on January 17, 2011, and he holds office upto ensuing Annual
General Meeting of the company. A notice under section 257 of the Companies
Act, 1956 has been received from a member proposing his candidature as a
Director of the Company and being eligible, Mr. Prabir Pukayastha has
offered himself for Directorship. Your Directors recommended his
appointment as Director at the ensuing Annual General Meeting.
Mr. Vijoy Kumar was appointed as an Additional Director by the Board of
Directors on January 17, 2011, and he holds office upto ensuing Annual
General Meeting of the company. A notice under section 257 of the Companies
Act, 1956 has been received from a member proposing his candidature as a
Director of the Company and being eligible, Mr. Vijoy Kumar has offered
himself for Directorship. Your Directors recommended his appointment as
Director at the ensuing Annual General Meeting.
Your Directors regret to inform that during the financial year 2010-11 Mr.
K.L. Goel, Mr. MukeshArora, Mrs. Ritu Goel, Mrs. Upasana Goel, Mr. Ankush
Krishan, Mr. Adarsh Soni, Mr. B.D. Gupta, Mr. Prabir Sengupta, Mr.
Sundararajan Govindarajan and Mr. G.K. Pandey have tendered their
resignation to the Board and the same were accepted subsequently by the
Board. Your Directors place on record their deep appreciation for the
services and contributions made by them as Directors on the Board of the
18. Restructuring of Debts under CDR
Your company has approached the Banks for re-scheduling/re-structuring of
banking arrangements on account of high interest cost and liquidity crunch
faced by the Company during the past one year and M/s SBI Capital Markets
Limited has been appointed as an advisor for making the proposal of
restructuring of Debts to Corporate Debt Restructuring Cell. The re-
structuring proposal under Corporate Debt Restructuring mechanism has been
admitted by Corporate Debt Restructuring Empowered Group for the
restructuring of outstanding Debts.
19. Particulars of Employees
Information in accordance with provisions of Section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 as amended regarding employees is annexed to this Report.
However, as per the provisions of Section 219(1)(b)(iv) of the Companies
Act, 1956, the Report and Accounts are being sent to all shareholders of
the Company excluding the aforesaid information. Any shareholder interested
in obtaining such particulars may write to the Company Secretary at the
Registered Office of the Company.
The Board puts on records its sincere appreciation for the support, which
the Company has received from its Bankers, Customers, Government
Organizations, Overseas Strategic Alliance Partners, Staff and Employees.
The Board also appreciates the confidence reposed by the shareholders in
the Company and its management.
For and On Behalf of the Board of Directors
Date : August 10, 2011
MANAGEMENT DISCUSSION AND ANALYSIS
A) Business Overview and Outlook:
The company used Financial Year 2010-11 to consolidate the business of both
its Power and Life Cycle business. The company remained focus on its own
Connectgaia-Intelligent Electricity and Water management solution and
extended portfolio in the Life Cycle business where it successfully formed
new relationships to respond to the changing needs of the Indian market.
The Connectgaia technology is now gaining lot of traction in the market and
the company has been able to secure number of orders in Transportation,
Municipal, Public Works, Manufacturing and Water & Waste Water sectors. The
technology is helping our customers in these segments by way of saving
energy, automation of working of key assets of the company and eventually
reduces the carbon footprint.
KLG offers knowledge solutions to oil & gas, process, power, water, ferrous
and non-ferrous metals, manufacturing and infrastructure sectors in India
by providing a unique mix of industry domain expertise, software solutions,
consultancy and training.
With a strong knowledge base and domain expertise in specific verticals,
KLG continues to leverage its existing resources and relationships. The
company is expanding its portfolio of offerings in specific verticals
continuously with a view to enabling its SBUs in addressing a wider
spectrum of market opportunities.
B) Segment-wise Performance:
A review of the performance of the various Strategic Business Units is
(i) POWER SYSTEM SOLUTIONS:
The Power System Solutions SBU provides end-to-end integrated solutions for
the complete Business Process Automation of Power Distribution Utilities as
well as solutions for end consumers of power. These solutions cover
hardware, software and communication technologies. Your Company has been
developing the products for Power Sector and has assimilated a lot of
experience in the Indian Power Sector.
* Your Company has been able to maintain the competitive edge in the market
and is implementing the following prestigious orders:
* To act as an IT Implementing Agency in CSPDCL under partAof R-APDRP from
Chattisgarh State Power Distribution Company Limited (Rs. 89 Crores)
* Spot Billing for 0.5 million consumers for Punjab State Electricity Board
* Operation and Maintenance of IT Infrastructure for 1.0 million consumers
for BEST, Mumbai
* Supply and Erection for Rural Electrification of 11,806 villages of
Punjab under Rajeev Gandhi Grameen Vidyutikaran Yojna.
* Supply and Erection of 13 no 33-kV Substations in Panchkula, UHBVN (Rs.
30 crore) Major Opportunities in the current year:
Connectgaia.com-lntelligent Energy Management & Demand Response Solution:
Connectgaia is a convergence of the internet and power highways empowering
electricity and water consumers to intelligently manage their electricity
and water consumption through web. It is an end-to-end solution for
empowering electricity and water consumers to Measure, Visualize, Analyze
and Control their usage in real-time and without any geographical
boundaries. It enables energy and business managers, executive staff, and
Operations & Maintenance personnel to view electricity consumption and
relevant cost data through highly dynamic customizable reports, charts, and
Connectgaia solution is a combination of field devices and enterprise
portal that seamlessly integrates energy demand points with meters,
sensors, controllers and enterprise web portal.
Connectgaia has received industry recognition in India and abroad and there
are a number of installations of Connectgaia in various industry segments.
Connect Gaia is an enabler for Smart Grid framework where the objective is
to make the grid more responsive to the ever-fluctuating electricity
Each industry segment has a different requirement to monitor and control
their utility consumption and hence Connect Gaia provides a highly
customizable dashboard so that users can customize them based on their
specific functional needs.
Since Connect Gaia is web based, it has wide applications for companies who
have a geographically spread infrastructure such as water networks,
transportation networks and cluster of building and townships which need to
be monitored and controlled at a specific location level as well as
enterprise level. In absence of Connect Gaia, companies generally have a
very cumulative view of their electricity consumption and assets and hence
often fall short of taking a strategic decision to reduce their cost of
In light of the above, Connectgaia has already got enormous response in the
a. Water and Waste Water
c. Municipal Corporations
d. Public Works Department
e. Industrial Facilities and
f. Green Building Initiatives
As on date, Connectgaia is being used in the following applications.
a. Water Asset Monitoring on intake and distribution side
b. Pump House monitoring and automation
c. Sensor based intelligent pump operations for remote applications
d. Street Lighting automation
e. Sub-station automation
f. Building Management
g. Automated Metering
h. Outdoor Lighting Management
1. Market Coverage:
Connect Gaia is presently sold on a hybrid Direct and In-direct model.
Connect Gaia account management team currently handles large and strategic
opportunities while the channel services already established requirements.
This gives us a good market coverage but ensures that we are directly
involved in creating new market demand.
We are in the process of appointing additional partners to have effective
market coverage in India. Water sector and Indian Railways have emerged as
good market for Connectgaia.
2. International Marketing:
Connectgaia addresses a market segment, which has a global demand. It has
been found through research that the issues and challenges in the
electricity market are very similar across the globe and companies are
fighting a similar battle to save energy and get a deeper view of their
energy consumption patterns. Most countries are working on an ambitious
Smart Grid initiative where Connectgaia plays a vital role.
In Phase-I, we have identified following markets for Connectgaia presence
through a combination of direct and indirect channel network
a. South East Asia
d. Middle east and Africa
Connectgaia R & D team has worked with Intel on an Intel 32-bit industry
class atom chipset which has provided us an opportunity to launch entirely
new set of applications in the energy management and industrial automation
areas. Intel has also partnered in KLG.
Application/Benefits of Connectgaia.com
Online monitoring and measurement of energy usage
Remote switching on and off of equipment, machinery, street lights, water
pumps or appliances- instantaneously On Demand/Time based scheduling & Rule
based scheduling Energy planning and load forecasting Energy accounting and
balancing to check wastages and theft Communicates with temperature,
pressure, light, flow, level and all types of sensors Ensures utilities
comply with power delivery service levels and utility bill verification
Allows users to participate in Demand Response with utilities and power
network Allows monitoring of quality parameters in the water and power
distribution network Allows for time of day tariff based incentive program
Generation of recommendations to improve quality of power Monitor equipment
performance or system behavior Detects the need for load shedding
Guide to optimize the need for captive power plant generation Stimulates
the economic development of an organization Contributes to saving of energy
Appliance Protection features to safe guard the connected load from power
Connectgaia.com is technology partner with global leaders such as IBM,
Intel, ZigBee Alliance, Landis+Gyr and many more.
Connectgaia.com has been awarded and appreciated for its excellence in
innovative product category several times by the leading and renowned award
committees and organizations. Some of our major accomplishments include:
2010 IBM Beacon Award for Cloud Computing Innovation
IBM Solution Architecture for Energy & Utilities Framework validation (This
validation makes KLG Systel the only ISV having a SAFE certified AMI
solution in the ISA region)
2009 Logica Global Innovation Venture Partner Award
2009 IBM Ready for Energy & Environment Solution Validation
2009 Best Lotus Energy and Environment (Green) Award
2009 IBM Beacon Award finalist in the Outstanding Energy & Environment
* 2008 NASSCOM Innovation Awards (Finalist)
* 2008 IBM Best ISV Award Energy & Utilities Industry Solutions 2007 CM
National Award for Excellence in Energy Management
2007 Golden Peacock Award in the Innovative Product/Service Category
* Among NASSCOM's 100 IT Innovators of 2007 CE Certification
Connectgaia - Magic Meter:
We believe in constantly upgrading our Connectgaia.com family of products
to keep abreast with latest technologies and have recently launched Magic
Meter which is an extension of Connectgaia.com. Magic Meter is a device
which allows users to monitor electricity consumption of the home and
office appliances like air-conditioners, printers, etc which consume less
amount of electricity and also control them from anywhere. Key features of
Magic Meter include Energy consumption and cost calculation, support to
Home Area Network (Zigbee/Wi-Fi), control of appliances from internet or
HAN, monitor of power quality, scheduled on/off of appliances, Email alerts
and Group Metering.
(ii) BUSINESS LIFE CYCLE SOLUTIONS:
In Business Life Cycle Solution focus is on enhancing and effectively using
the domain knowledge acquired. The future direction of the company is to
consolidate its customer base and to customize and verticalise the life
cycle solutions to address the evolving needs of Indian Industries. Some of
these growing needs are seamless integration of software solutions within
the organization to meet the core financial management, human resources,
customer relationships and the supply chain, as well as other functional
needs of the organization.
The company has formed an exclusive relationship with Digsilent GMBH which
is based out of Germany. The relationship will help the company in
addressing the complete value chain of the power sectors comprising of
Generation, Transmission and Distribution. This relationship will also help
the company in addressing the emerging renewable energy market that is
growing at a significant pace.
(a) Enterprise Project Management:
Enterprise Project & Management solutions bring together the disciplines of
strategic planning & project management. They provide a framework for
effectively managing both resources and the tactical plans for Projects.
Delivering projects on time & on budget is a minimum requirement to do
business for most organizations and in many industries it is critical to
long-term success. Companies that adhere to strong project management
methods, including detailed evaluation of scope and budget, ongoing risk
management and measurement of project results are consistently more
successful than those that do not. Following a structured project
management method enables companies to predict and mitigate risks, better
manage costs and deliver quality results that satisfy clients. In the most
mature organizations these goals are linked to the strategic business
objectives, giving these organizations a powerful competitive advantage.
Your Company trained large number of professionals in Project Management
who were from corporate such as L&T, Reliance, ONGC, GAIL, Tata Power,
IOCL, SAIL, Railways, Jindal and many more. They were certified as per
training program of PMI, USA which it represents in India.
(b) Computational Engineering & Sciences (CES):
This SBU continues to be a major contributor in the overall business of the
company. With India's GDP on track & major investments happening, the SBU
promises to deliver more than expected in coming years.
Your company addresses the engineering design and analysis requirements of
its clients by partnering with them in implementation of the Plant/ Product
life cycle. This is done through your Company's rich industrial and
consulting experience, combined with state-of art software and hardware
expertise in solid 3D modeling, plant design, piping analysis, FEA/CFD
rapid prototyping, etc. A variety of solutions have been integrated to
cover the entire lifecycle of manufacturing, process, petrochemical &
infrastructure organizations, one of which is the integration of CAD, GIS &
GPS solutions for a utility application.
The Computational Engineering & Sciences SBU provides design & analysis
tools and services in the area of Plant &Product life cycle to various
segments including Oil & Gas, Infrastructure, Manufacturing, Metal etc. We
are one of the leading end to end solution providers in this segment in
India having experience of more than 20 years.
The Company provides tools and services in the following are as:
1. Computer Aided Design
2. Computer Aided Engineering,
3. Plant Design & Analysis
4. Computer Aided Manufacturing
5. Civil/Architectural/Structural Design& Engineering.
6. Enterprise GIS
Your company with its partnership with Autodesk offers a broad range of
solutions in almost all vertical segments like Mechanical, Civil,
Architectural, Electrical. From basic engineering drawing to digital
prototyping in Mechanical, to advanced structural detailing in civil &
structural and to Building Information Modeling in Architectural, your
company provides comprehensive tools and services in CAD domain as one of
the leading partner of Autodesk in India. Many of our customers have
standard tools based on AutoCAD platform, which is an outcome of the
efforts put by us for years. Your company is also associated with Autodesk
to provide support to their large installation base in India including
companies like BHEL, L & T, Alstom, EIL, Dasturco.
With the strategic relationship with Intergraph, your company provides
complete end to end solution in the field of plant design. From P & ID to
digital plant models, your company provides tools and services for
comprehensive design, analysis and modeling in the field of piping,
structures, vessels. The company provides solutions where customers can
have designers and engineers anywhere in the world working simultaneously,
sharing information on projects, all with complete accuracy and
synchronization of effort. This eliminates redundancies and reduces errors
and delays, saving time and costs throughout the process.
Your Company has a large customer base across all segments in the industry.
The enterprise accounts include Larsen & Toubro, Engineers India Limited,
Samsung, Indian Oil, Tata Steel, Mecon, BHEL, SAIL, Reliance (ADAG), Essar,
Siemens, Alstom, Areva, SMS Demag, Humbolt, Technimont ICB, HCC, IOTL,
Godrej, POSCO, Ordinance Factory, VECC-Dept of Atomic Energy, BARC,
Geological Survey of India, JUSCO, Jindal, Vedanta, Hero Honda.
(c) Industrial and Infrastructure Automation:
Your company has enhanced the portfolio of services in this segment by way
of partnering with hardware OEMs such as Mitsubishi Electric and IBM.
Automation is a rapidly growing market in India. As new infrastructure is
being created both in manufacturing as well as in public services, there is
a growing need to automate the facilities as well as manufacturing
This business unit continues to sustain the growth momentum shown over the
years. We have been able to create generic plant automation solutions for
the metal industry including steel and aluminum. Our solutions have enabled
manufacturing agility, design agility, supply chain agility for the players
in these sectors. Your Company offers integrated solution for Industrial
Automation and Supply Chain Planning and Optimization. Your Company's
Manufacturing Execution System provides complete solutions to analyze the
data captured from a wide variety of data sources over multiple sensors,
plant organization to improve uniformity, increase yields, maximize
productivity and decrease maintenance costs. Your Company assists the
customers to achieve these goals by delivering information and analysis
tools that organize and deliver plant intelligence, which is accessible
throughout the organization from the 'Sensorto-Boardroom'. As a result, the
organizations are able to make better-informed decisions about their
Your Company, for the last 12 years, has been offering IT enabled business
optimization solutions in the manufacturing space. These solutions have
evolved from a Human Machine Interface and Shop Floor Scheduling solution
to a complete Plant Intelligence and Supply Chain Optimization application
framework. The agility to accurately promise and quickly deliver
increasingly customized products or new products requires synchronization
across a broad scope of manufacturing activities performed by multiple
(C) Adequacy of Internal Control:
Your Company has an appropriate internal control system for business
processes with regard to efficiencies of operations, financial reporting
and compliance with applicable laws and regulations etc. The operating
processes encompassing the entire gamut of operations are well-established
and documented. Adequate internal control procedures and measures are
present for cost control, purchase of materials, plant and machinery
equipment and other items and maintenance and their sale and disposal.
(D) Human Resources:
Human Capital is a crucial asset for an IT and ITES Industry and an
important business driver. Your Company considers its human resources as
its most important asset. Your Company employs a number of well-qualified
and skilled employees. Attracting, retaining and motivating employees and
creating an environment that nurtures them to deliver their best has been a
constant challenge for your Company. Your Company continues to invest in
training and development programs for its employees in India as well as
abroad. The Company has instituted number of Employee Stock Option Schemes
from time to time for rewarding the well performing employees who are
contributing to the growth of the company. At the end of the year under
review, the total strength of the employees is 311.