COMPUTECH INTERNATIONAL LIMITED
ANNUAL REPORT 2009-2010
Your Directors are pleased to present the 23rd Annual Report and the
audited accounts for the year ended 31st March, 2010.
The performance of the company for the financial year ended 31st March,
2010 is summarized below:
(Rs. in Million)
Gross Turnover 5.34 266.93
Operating Profit (PBIDT) -582.40 -920.36
Provision for Doubtful Debts 546.19 967.15
Interest 54.14 50.49
Depreciation 1.37 1.44
Profit before Extra
Ordinary Items & tax -637.91 -972.29
Prior Period Items - -0.06
Profit for the year before tax -637.91 -972.35
Provision for Taxation 4.31 4.37
Profit after Tax -633.59 -967.98
Profit & Loss Account
Balance carried forward -694.84 -607.43
The Directors regret their inability to recommend any dividend in view of
inadequacy of profits for the year ended 31st March, 2010.
FINANCIAL CONDITION AND RESULTS OF OPERATION
The year under review concluded with your Company's overall turnover at
Rs.5.34 Million (Previous year Rs. 266.93 Million) and profit after tax
(Loss) of Rs. 633.59 Million (Previous year Loss Rs. 967.98 Million).
The IT sector in India is now taking a fast consistent and growth with the
Government support and encouragement. The development in the EOU sector is
calling for a standing support to the exporters in this field.
Your company has been taking the advantage of the EOU sector and has got
itself registered as a 100% EOU under the Central Government and has been
consistently utilizing its capacities to the fullest with a constant
endeavour to grow further.
With an expert team of software technicians and the competitive &
professional mind set of the management, your company is making a head-way
to reap the best in this scenario.
However, as part of the expansion activity, keeping in view of the present
all round business scenario, your directors have launched for
diversification in Mining and Allied products for healthy performance of
With the comparative advantage of committed work force lower cost and long
existence in the field, your company seems to perform better in time to
come. Further, as an unit registered as 100% EOU, your company is offered
with a range of government benefits ensuring further growth and vast
Your company is currently facing normal competition from other established
I.T. Industry/sector. However your directors with comparative advantages
hope to achieve a better position in comparison to its competitors in a
short span of time.
The I.T. Industry is growing substantially world wide. The company with its
capabilities is expected to benefit significantly from these positive
RISK & CONCERNS
The Company expects the normal risk factors of business mix, customer
concentration, economic cycle, effects of changes in foreign currency,
exchange rates, credit spread, liquidity etc.
ADEQUACY OF INTERNAL CONTROLS
The Company has a proper and adequate system of internal controls to ensure
that all of its assets are safeguarded and protected against loss from
unauthorized use or disposition and transaction are authorized, recorded
and reported correctly. The management has implemented an integrated
computerized management information system encompassing all functional
areas. The job process and internal control are so designed to ensure
proper checks and balances for eradication of errors and faults. The
internal control system is supplemented by internal audits, review by
management documented policies and procedures. Further, the internal
control system is under a constant review by the internal auditors and the
audit committee as required under the listing agreement.
HUMAN RESOURCES OF THE COMPANY
Your company believes that people constitute the strength of an
organization. The company is committed to the welfare of its people by
providing the best possible work environment. The company is also providing
continuous learning and personal development opportunities by arranging
regular training and all around exposure to its people, which in turn has
given your company a team of able and experienced professionals besides the
employees at all levels have actively participated in the efforts to
sustain and improve the performance even in the most difficult times.
There is no employees coming under the purview of Section 217(2A) of the
Companies Act, 1956.
REGISTRAR & SHARE TRANSFER AGENT
M/s. MCS Ltd., 77/2A Hazra Road, Kolkata 700 029 is the Registrar and Share
Transfer Agent of the company.
As the members are aware, the Company's shares are traded compulsorily in
Demat Form and your Company has already established connectivity with both
the depositories i.e. National Securities Depository Ltd (NSDL) and Central
Depository Services (India) Ltd (CDSL) in view of the advantages offered by
the Depository System, members are requested to avail of the facility of
Dematerialisation of Company's shares.
He is an M.A., CAIIB. He has 38 years experience in Punjab National Bank
and retired as a chief manager. He is aged about 75 years.
Mr. S. Biswas
He is aged about 40 yrs and a Law Graduate. He is an advocate in Kolkata
AUDITORS AND THEIR OBSERVATIONS
M/S. B. Singhal & Co., Chartered Accountants Appointed as Statutory
Auditors of the Company in the place,, to hold office up to the ensuing
Annual General Meeting and being eligible, offer themselves for
The observation of the auditors referred to in the auditors' report have
been suitably explained in the notes on Accounts.
The industrial relations with its employees has been cordial during the
year. The Board records its appreciation to the useful contribution made by
all the employees.
The additional information required to be furnished under the Companies
(Disclosure of particulars in the Report of the Board of Directors) Rules,
1988 to the extent applicable to the Company are given in Annexure'A'.
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
(i) In the preparation of Annual Accounts the applicable accounting
standards have been followed along with proper explanations 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 as at 31st March, 2010 and the profit of the company for the year
ended on that date.
(iii) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting record in accordance with the provision
of the Companies Act, 1956 for safe guarding the assets of the company and
for preventing and detecting fraud and other irregularities; and
(iv) The Directors have prepared the annual account of the Company on a
'going concern' basis.
A separate section on Corporate Governance and a certificate from the
Auditors of the Company regarding compliance of conditions of Corporate
Governance as stipulated under clause 49 of the Listing Agreement with
Stock Exchange, form part of the Annual Report.
As required under the listing agreement, a copy of the Code of Conduct of
the Company has been inserted in this Annual Report.
Your Directors would like to express their appreciation of the cooperation
received from the Financial Institutions, Banks, Govt. Authorities,
Customers, Shareholders and other associates during the year under review.
For and on behalf of the Board
(Chairman & Managing Director)
Date : 31st May, 2010
ANNEXURE 'A' TO DIRECTORS' REPORT
Particulars pursuant to Companies (Disclosure of particulars in the Report
of Board of Directors) Rules, 1988.
1. Technology Absorption
1.1. Research and Development
During the year under review the company's efforts were mainly directed
towards customer driven developmental activity. Expenditure on R&D during
the financial year 2009-2010 is as under:
a) Capital : NIL
b) Recurring : NIL
1.2. Technology absorption, adaptation and innovation
There is no technical collaboration. The company is manufacturing with the
help of in-house developed technology. The company has taken steps to keep
abreast with the latest technical development in the key business areas by
deputing employees for attending seminars and workshops.
2. Foreign Exchange Earning and Outflow
During the year ended 31st March, 2010 the company was unable to register
export earnings. The particulars of foreign exchange utilized/earned during
the year are given under serial no. 21 in the Schedule 21 on notes on
For and on behalf of the Board
Place: Kolkata SKRATERIA
Date : 31st May, 2010 (Chairman & Managing Director)