You are here » Home » Companies » Company Overview » Intense Technologies Ltd

Intense Technologies Ltd.

BSE: 532326 Sector: IT
NSE: INTENTECH ISIN Code: INE781A01025
BSE 00:00 | 19 Aug 66.00 -0.05
(-0.08%)
OPEN

64.80

HIGH

67.50

LOW

64.80

NSE 00:00 | 19 Aug 66.05 0.25
(0.38%)
OPEN

66.00

HIGH

67.40

LOW

65.65

OPEN 64.80
PREVIOUS CLOSE 66.05
VOLUME 4362
52-Week high 116.30
52-Week low 57.40
P/E 9.44
Mkt Cap.(Rs cr) 148
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 64.80
CLOSE 66.05
VOLUME 4362
52-Week high 116.30
52-Week low 57.40
P/E 9.44
Mkt Cap.(Rs cr) 148
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Intense Technologies Ltd. (INTENTECH) - Director Report

Company director report

Dear Shareholders

Your Directors have pleasure to present the 31st Annual Report and the Audited Accountsfor the financial year ended 31st March 2021.

1. Financial Results

The Company's financial performance for the year ended 31st March 2021 is summarizedbelow:

(Rs in Lakhs)

Standalone Consolidated
Particulars 2020-21 2019-20 2020-21 2019-20
Gross Revenues 6993.71 6839.54 7383.19 7027.69
Total Expenditure 5601.14 5802.11 5186.91 4887.48
Profit/(Loss) before Tax 1392.57 1037.43 2196.28 2140.21
Tax Expense 341.79 257.08 389.05 403.34
Profit/(Loss) after tax 1050.78 780.35 1807.23 1736.87
Earnings per equity share
Basic EPS (Face Value Rs.2/- each) 4.69 3.48 8.06 7.75
Diluted EPS (Face Value Rs.2/- each) 4.68 3.45 8.05 7.68

2. Year gone by

This year consolidated revenues stood at Rs 7383.19 lakhs EBITDA of Rs 2316.02 lakhsand PAT of Rs 1807.23 lakhs with an EPS of Rs 8.06 per share. All the overseassubsidiaries of the company have contributed positively during the year under review. TheBoard of Directors recommended a dividend of 20% per equity share with face value of Rs2/- each for the financial year ending March 31 2021. The company has been declaringdividends consecutively for three years.

During the year we saw a notable shift in the domestic digital landscape led by manycompanies rethinking their digital strategy and those engaged with us enhancing the scopeof services. We have also strengthened our engagements across Telecommunications andBFSI while strengthening traction in new verticals like Utilities and GovernmentServices.

As businesses evolve into a digital society and the demand for services arounddigitalization automation increase we see more opportunities. We have collaborated withSystem Integrators and partners to build a prosperous ecosystem penetrate global marketsand enhance the value for our clients.

The domain we operate in especially Customer Communications Management and CustomerExperience is in growth mode and we are witnessing increased demand for new uses casesof video interactive statements and Low Code Platform. The analyst community continues torecognize us in the domains we operate. Gartner has recognized us in its market guide forCustomer Communications Management in 2021 and we've been Positioned as 'LeaderRs in the2021 Aspire Leaderboard Business Automation grid and as a 'Focused' vendor in the OverallLeaders for CCM Communication Composition and Omnichannel orchestration grid.

Our cross-functional teams have brought the best of all our capabilities and corecapabilities in data management low-code and automation are enabling us to be a criticalpartner for our clients. The new market forays in the past year have helped furtherstrengthen our digital portfolio and drive the digital transformation journeys of ourclients.

3. Future outlook:

While there is still uncertainty due to the pandemic and the likelihood of third orfourth wave. Overall business outlook across industries appears to be positive in all ofIntense's major markets. This is expected to result in an expansion in enterprise spendingon digital CX solutions globally. There are increased investments by customers in digitalfirst initiatives that deepen customer engagement while navigating the pandemic situationwith resilience.

There is a marked traction for digital CX management solutions such as digital customeronboarding centralized customer engagement hub and B2B and B2C self-service portals.Common themes that are expected to accelerate across all industry verticals in FY 2022are: personalized customer experiences; digital enablers for customer engagement;seamless personalized omnichannel experiences and digital ecosystems.

UniServe™ NXT platform will help them build customized enterprise applicationswith speed and agility to achieve business objectives of faster time to market reducedoperational costs and improved CX.

Because of these opportunities the future outlook of the Company remains encouraging.Though the future outlook looks encouraging we are cautious of global economic slowdowndue to the pandemic and taking necessary steps to conserve cash for any eventuality.

4. Change in the nature of business

During the year the company has not changed its business.

5. Dividend

The Board of Directors of the Company has recommended a final dividend of 20% perequity share on face value of Rs 2/- each for the financial year 2020-2021. The dividendif approved at the Annual General Meeting (AGM) will be paid to those members whose nameswill appear on the Register of Members as 23 September 2021. The total dividend payoutwill amount to Rs 8982779.60 (Tax at source will be deducted from dividend payable toshareholders at the prescribed rates.)

6. Reserves

The Company has not transferred any amount to Reserves during the financial year endedon 31st March 2021.

7. Finance

Cash and cash equivalents as at March 31st 2021 were '.1482.05 lakhs. The Companycontinues to focus on judicious management of its working capital receivables andinventories. Other working capital parameters were kept under strict check throughcontinuous monitoring.

8. Share Capital

As at March 31 2021 the paid-up equity share capital of the Company is Rs 44847898/- divided into 22423949 equity shares of '.2/- each. During the year 16000 equityshares were issued and allotted under Employee Stock Option Scheme. The Equity sharesissued under the Intense Employee Stock Option Scheme A 2009 shall rank pari - passu withthe existing equity shares of the Company.

9. Directors and Key Managerial Personnel

In accordance with the Companies Act 2013 and the rules made there under and theArticles of Association of the Company Mr. Tikam Sujan retires by rotation and beingeligible offers himself for re-appointment.

10. Number of Meetings of the Board

During the year 6 (Six) Board Meetings and 5 (Five) Audit Committee Meetings wereconvened and held. The details are given in the Corporate Governance Report. Theintervening gap between the Meetings was within the period prescribed under the CompaniesAct 2013.

11. Board Evaluation

Pursuant to the provisions of the Companies Act 2013 and SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 the Board has carried out an annual performanceevaluation of its own performance the Directors individually as well as the evaluation ofthe working of its Audit Nomination & Remuneration and Compliance Committees. Themanner in which the evaluation has been carried out has been explained in the CorporateGovernance Report.

12. Declaration by an Independent Director(s) and re- appointment if any

The Independent Director(s) have submitted the declaration of independence pursuant tosection 149(7) of the Act stating that he/they meet the criteria of independence asprovided in sub-section (6) of Section 149 of the Companies Act 2013 and Regulation 17(b)of the Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 and that there is no change in their status ofindependence.

13. Remuneration Policy

The Board has on the recommendation of the Nomination & Remuneration Committeeframed a policy for appointment and remuneration of Directors Key Managerial Personneland other employees including criteria for determining qualifications positive attributesand Director's independence. The Remuneration Policy is stated in the Corporate GovernanceReport.

Managerial Remuneration:

A) Details of the ratio of the remuneration of each Director to the median employee'sremuneration and other details as required pursuant to Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014.

(Amount in Rs)

Remuneration to Directors: 2020-2021 % on Total Salaries
C.K. Shastri Managing Director 16484400 5.14%
Jayant Dwarkanath Whole Time Director 16484400 5.14%
C. Anisha Shastri Whole Time Director 11350000 3.54%

B) Statement of Particulars of employees pursuant to the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 is enclosed as Annexure - II

C) No director is in receipt of any commission from the company and the ManagingDirector/ Whole-time Director of the Company have not received any remuneration orcommission from any other Company subject to its disclosure by the Company in the Board'sReport.

14. Subsidiaries Associates and Branches

Pursuant to sub-section (3) of section 129 of the Act the statement containing thesalient feature of the financial statement of a company's subsidiary or subsidiariesassociate company or companies and joint venture or ventures is given as Annexure- III[Performance and financial position of each of the subsidiaries associates and jointventure companies included in the consolidated financial statement].

The Company has 4 (four) Wholly Owned Subsidiary Company(ies) (WOS):

During the year the Company has opened a wholly owned subsidiary Reasy Pte. Ltd inSingapore to cover the APAC market.

(1) "Intense Technologies FZE" in Hamriyah Free Zone Hamriyah United ArabEmirates (U.A.E).

(2) "Intense Technologies INC" in Miami Florida United States of America(USA).

(3) Intense Technologies UK Limited in 200 Brook Drive Green Park Reading RG2 6UBUnited Kingdom (UK).

(4) Reasy Pte. Ltd. at # 10 Anson Road # 24-09 International Plaza Singapore -079903.

Singapore Branch: The Company has one Branch office located at # 10 Anson Road #24-09 International Plaza Singapore - 079903.

Further the Annual Accounts and related documents of the subsidiary companies shall bekept open for inspection at the Registered & Corporate Office of the Company. TheCompany will also make available copy thereof upon specific request by any Member of theCompany interested in obtaining the same. Further pursuant to Accounting Standard AS-21issued by the Institute of Chartered Accountants of India Consolidated FinancialStatements presented by the Company in this Annual Report include the financialinformation of its subsidiary(ies).

15. Statutory Auditors

M/s MSPR & CO. Chartered Accountants Independent Auditors of the Company wasappointed in the 28th Annual General Meeting held on 27th September2018 for a period of three years till the conclusion of 31st Annual General Meeting.

The Board of Directors on the recommendation of the Audit Committee have approved there-appointment M/s. MSPR & Co. Chartered Accountants (Firm Registration No.010152S) Hyderabad as the statutory Auditors of the Company to hold office from theconclusion of this Meeting for a term of five years from the conclusion of 31st AnnualGeneral Meeting till the conclusion of the 36th Annual General Meeting subject toratification by the members at every Annual General Meeting.

The Board recommends the re-appointment of M/s. MSPR & Co. Chartered AccountantsChartered Accountants as the statutory Auditors of the Company.

16. Auditors' Report

The Auditors' Report does not contain any qualification.

Notes to Accounts and Auditors remarks in their report are self-explanatory and do notcall for any further comments.

17. Disclosure about Cost Audit

As per the Cost Audit Orders Cost Audit is not applicable to the Company for thefinancial year 2020-2021.

18. Secretarial Audit Report

Pursuant to the provisions of Section 204 of the Companies Act 2013 and the rulesmade thereunder the Company has appointed Puttaparthi Jagannatham & Co. PracticingCompany Secretaries a firm of company secretaries to undertake the secretarial audit ofthe Company. The Secretarial Audit Report given by Puttaparthi Jagannatham and Co.Company Secretaries is annexed with the report. The self explanatory statement on CSRexpenditure and Secretarial Audit has been mentioned at the relevant paragraphs. TheSecretarial Auditor's report is self-explanatory and do not call for any further commentsand is enclosed as Annexure - IV.

The Board has appointed M/s. Puttaparthi Jagannatham & Co. Practicing CompanySecretaries as Secretarial Auditor of the Company for the Financial Year 2020-2021 as perthe provisions of the Companies Act 2013 and Rules made thereof and SEBI (ListingObligation & Disclosure Requirements) Regulations 2015.

19. Internal Audit Controls and their adequacy

The Company has an internal control system commensurate with the size scale andcomplexity of its operations. The scope and authority of the Internal Audit Function isdefined in the Internal Audit Manual. To maintain its objectivity and independence theInternal Audit function reports to the Chairman of the audit committee of the Board and tothe Chairman and Managing Director.

The internal Audit department monitors and evaluates the efficiency and adequacy of theinternal control system in the Company its compliance with operating systems accountingprocedures and policies at all locations of the Company. Based

on the report of internal audit functions process owner undertake corrective actionsin their respective areas and thereby strengthen the controls. Significant auditobservations and recommendations along with corrective actions thereon are presented tothe audit committee of the Board.

20. Internal Financial Control System

According to section 134(5)(e) of the Act the term Internal Financial Control (IFC)means the policies and procedures adopted by the company for ensuring the orderly andefficient conduct of its business including adherence to 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 information.

The Company has a well placed proper and adequate IFC system which ensures that allassets are safeguarded and protected and that the transactions are authorised recordedand reported correctly.

Adequacy of internal financial controls with reference to the financial statements

The Act re-emphasizes the need for an effective Internal Financial Control system inthe Company which should be adequate and shall operate effectively. Rule 8(5)(viii) ofCompanies (Accounts) Rules 2014 requires the information regarding adequacy of InternalFinancial Controls with reference to the financial statements to be disclosed in theBoard's report.

The company has Internal Auditors and the Audit Committee constituted is in place totake care of the same. Internal Auditors findings are discussed with the process ownersand suitable corrective actions are taken as per the directions of Audit Committee on anongoing basis to improve efficiency in operations. The Internal Auditors independentlyevaluate the adequacy of internal controls and concurrently audit the majority of thetransactions in value terms.

21. Employee Stock Option Plan

During the year 16000 equity shares were issued and allotted under Employee StockOption Scheme. The ESOP Scheme(s) of the Company is in compliance with SEBI (Share BasedEmployee Benefits) Regulations 2014.

A certificate from Auditors of the Company certifying that the Employee Stock OptionScheme of the Company is implemented in accordance with the SEBI (Share Based EmployeeBenefits) Regulations 2014 and in accordance with the resolutions passed in the GeneralBody Meetings will be available for inspection in electronic mode during the AGM to anyperson having right to attend the meeting.

Employees Stock Option Plan as required under SEBI (Share based Employee Benefits)Regulations 2014 the disclosures of the Employees Stock Option Plan 2005 Stock OptionPlan A 2007 and Stock Option Plan A 2009 which are in force are given in Annexure -V.

22. Whistle Blower Policy / Vigil Mechanism

The Company promotes ethical behaviour in all its business activities and in line withthe best governance practices. The Company has in place a well-defined Whistle BlowerPolicy/ Vigil Mechanism. The Company has established a vigil mechanism through whichdirectors employees and business associates may report unethical behavior malpracticeswrongful conduct fraud violation of Company's code of conduct leak or suspected leak ofunpublished price sensitive information without fear of reprisal.

Pursuant to the provisions of section 177(9) & (10) of the Companies Act 2013 aWhistle Blower Policy for directors and employees to report genuine concerns has beenestablished. The Whistle Blower Policy has displayed on the website of the Company atwww.in10stech.com.

23. Risk Management And Insurance

The Company has a comprehensive risk management framework which is evaluated by theAudit Committee annually. Our risk management framework has been designed to identifymonitor and minimize the adverse impact of strategic operational financial andcompliance risks faced by the organization. We recognize that an appropriate response tobusiness risks and opportunities is vital to achieve our business objectives safeguardstakeholder interests and meeting legal requirements. Every quarter a detailed update onrisk management is presented and deliberated upon in the meetings of the risk managementcommittee of the Board. All the properties of your Company have been adequately insuredagainst the risk from fire and earthquake.

24. Annual Return

The Annual Return as on March 31 2021 in the prescribed Form No. MGT-7 pursuant tosection 92 of the Act is available on the website of the Company at www.in10stech.com atthe link 21: https://in10stech.com/images/financial reports/Intense-Technologies-Annual-Return-2020-21.pdf

25. Material changes and commitments affecting the financial position of the Company

There have been no material changes and commitments affecting the financial position ofthe Company which have occurred between the end of the financial year of the Company towhich the financial statements relate and the date of this report.

26. Details of significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and company's operations in future

No such orders were passed against the Company.

27. Deposits

During the Financial Year 2020-2021 the company did not accept any deposits within themeaning of Sections 73 and 74 of the Act read together with the Companies (Acceptance ofDeposits) Rules 2014.

28. Loans guarantees or investments under Section 186

Particulars of loans guarantees and investments under Section 186 of the Act as at theend of the Financial Year 2020-21 are as below:-

i) Details of loans and advances investments in subsidiary companies:

(Amount in Rs)

Particulars Loans and Advances Investments
Intense Technologies FZE - 69555376
Intense Technologies U.K. Limited - 111159901
Intense Technologies INC - 94100020
Reasy Pte Ltd Singapore 113592 55400
Total 113592 274870697

Related party disclosures are given under notes to Financial Statements in this report.The cost on investments in Equity Shares of other listed entities:

The aggregate market value of these equity shares as on 31st March 2021 is '220988/-ii) Guarantees / Securities provided

Sno Date of providing . . security/guarantee Details of recipient Amount (Rs) Purpose for which the security/ guarantee is proposed to be utilized by the recipient
1 09-Jun-16 BSNL Delhi 37500000 Performance Bank Guarantee
Total 37500000

29. Contracts / Arrangements with Related Parties

With reference to Section 134(3)(h) of the Act all contracts and arrangements withrelated parties under Section 188(1) of the Act entered by the Company during thefinancial year were approved by the Audit Committee. and wherever required also by theBoard of Directors.

All contracts or arrangements or transactions entered by the Company during thefinancial year with related parties were in the ordinary course of business and on anarm's length basis. During the year the Company had not entered into any contract orarrangement with related parties which could be considered material according to thepolicy of the Company on materiality of Related Party Transactions. Accordingly there areno transactions that are required to be reported in Form AOC-2 pursuant to Section134(3)(h) of Companies Act 2013 read with Rule 8(2) of the Companies (Accounts) Rules2014 - 'AOC-2'."

30. Corporate Governance

The Company is committed to focus on long term value creation and protectingstakeholdersRs interests by applying proper care skill and diligence to businessdecisions.

The report on Corporate Governance as stipulated under the SEBI (Listing Obligationsand Disclosure Requirements) Regulations 2015 forms part of the Annual Report. Acertificate from Auditors of the Company regarding compliance of the conditions ofCorporate Governance as stipulated under Schedule V of the Listing Regulations isattached as 'Annexure - VII' and forms part of this report.

31. Management Discussion and Analysis

A report on Management Discussion & Analysis for the year under review asstipulated under Regulation 34 of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 with the Stock Exchanges inIndia is provided in a separate section forming part of this Annual Report and isenclosed as Annexure - VI.

32. Statutory Disclosures

In terms of the provisions of the Companies Act 2013 and other applicable regulationsread with the Companies (Particulars of Employees) Rules 1975 as amended the names andother particulars of the employees are set out in the Annexure - II to the Directors'Report. However as per SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 the Annual Report excluding the aforesaid information is being sent toall the members of the Company and others entitled thereto. Any member interested inobtaining such particulars may write to the Company at the registered office of theCompany.

33. Prevention of Sexual Harassment of Women at Workplace

The Company has in place a policy on Prevention of Sexual Harassment of Women atworkplace which is available on the Company website at www.in10stech.com under investorinformation. The Company is in compliance with the provisions relating to the constitutionof an Internal Complaints Committee under "The Sexual Harassment of Women atWorkplace (Prevention Prohibition and Redressal) Act 2013"

This committee consists of following members:

Mrs. C. Anisha Shastri Mr. Prabhakar Racherla Ms. K. Tejaswi Mrs. Padmini leeja

During the year under review no complaint of harassment of woman at the workplace wasreceived by the Committee.

34. Conservation of energy technology absorption and foreign exchange earnings andoutgo

Pursuant to provisions of Section 134 of the Act read with Rule 8(3) of the Companies(Accounts) Rules 2014 the details of Conservation of Energy Technology AbsorptionForeign Exchange Earnings and Outgo are given below:

A. Conservation of Energy:

Energy plays an eminent role in the economic growth of a nation and is also one of thecritical inputs to the production process at any Company. Intense has always beenconscious of the need to conserve energy. The Company's core activity is informationtechnology and services related and is making every effort to conserve the usage of power.

B. Technology Absorption

Technology absorption helps support the innovation process with advanced analyticaltools and the latest detection technologies. The Company has been and will continue toleverage new technologies and adopts the best processes and methodologies that fits to itsline of business.

C. Foreign Exchange Earnings & Outgo:

The Foreign Exchange earned in terms of actual inflows during the Financial Year2020-21: ' 1602.12 lakhs.

The Foreign Exchange outgo in terms of actual outflows during the Financial Year2020-21: ' 679.02 lakhs.

35. Corporate Social Responsibility (CSR)

The Company has constituted the CSR committee which has identified Education Healthskilling Environment Rural Development and Disaster Relief as the focus areas. TheCorporate Social Responsibility Report also contains the report on CSR initiatives asrequired under Section 135 of the Companies Act 2013 (the Act) which is annexed asAnnexure I to this report.

As a part of Corporate Social Responsibility (CSR) we at intense consider it ourresponsibility to support philanthropy environment sustainable initiatives ethicalbusiness practices and environment responsibility towards this end.

36. Human Resources

Your Company treats its "Human Resources" as one of its most importantassets.

Your Company continuously invests in attraction retention and development of talent onan ongoing basis. A number of programs that provide focused people attention are currentlyunderway. Your Company's thrust is on the promotion of talent internally through jobrotation and job enlargement.

37. Directors' Responsibility Statement

Pursuant to Section 134 (3) (c) of the Companies Act 2013 it is confirmed that theDirectors have:

(a) Followed applicable accounting standards in the preparation of annual accounts andthere are no material departures for the same.

(b) 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 as on 31st March 2021 and of the profit of thecompany for the year ended on 31st March 2021.

(c) Taken proper and sufficient care for the maintenance of adequate accounting recordsin accordance with the provisions of this Act for safeguarding the assets of the companyand for preventing and detecting fraud and other irregularities;

(d) Prepared the annual accounts on a going concern basis;

(e) Laid down internal financial controls to be followed by the company and that suchinternal financial controls are adequate and were operating effectively.

(f) Devised proper systems to ensure compliance with the provisions of all applicablelaws and that such systems were adequate and operating effectively.

38. Transfer of Amounts to Investor Education and Protection Fund

Your Company did not have any funds lying unpaid or unclaimed for a period of sevenyears. Therefore there were no funds which were required to be transferred to InvestorEducation and Protection Fund (IEPF).

39. Listing with Stock Exchanges

At present the equity shares of the Company are listed on the Bombay Stock Exchange(BSE) Mumbai and National Stock Exchange of India Limited (NSE) Mumbai. The Companyconfirms that it has paid Annual Listing Fees due to both the Exchanges for the year2021-22.

40. Policies

Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015the Company has formulated all the required policies as mandated. And all the policies areavailable on the Company's website at https://in10stech.com/ investors/policies

41. Depository System

As the Members are aware your Company's shares are tradable compulsorily in electronicform and your Company has established connectivity with both National SecuritiesDepository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). In viewof the numerous advantages offered by the depository system the members are requested toavail the facility of Dematerialization of the Company's shares on NSDL & CDSL. TheISIN allotted to the Company's Equity shares is INE781A01025.

42. Acknowledgements

Your Directors' convey their sincere thanks to State Bank of India HDFC Bank Ltd AxisBank Limited and shareholders for their continued support. Your Directors' place onrecord appreciation of the contribution made by the employees at all levels and looksforward to their continued support.

For and on behalf of the Board
Place: Secunderabad C.K. Shastri Jayant Dwarkanath
Date: August 13 2021 Chairman & Managing Director Whole Time Director
DIN: 00329398 DIN: 00329597

.