To the Members
The Directors have pleasure in presenting before you the Annual Report of the Companytogether with the Audited Statements of Accounts for the year ended 31 March 2016.
1. FINANCIAL SUMMARY/HIGHLIGHTS OPERATIONS STATE OF AFFAIRS:
The performance during the period ended 31st March 2016 has been as under:
| || ||(Rs. in Lakhs) |
|Particulars ||2015-2016 ||2014-2015 |
|Total Income ||2302.99 ||2621.57 |
|Total Expenditure ||2220.71 ||2323.46 |
|Profit Before Tax ||82.28 ||298.11 |
|Provision for Tax ||22.70 ||45.25 |
|Profit after Tax ||59.58 ||252.90 |
2. DISCLOSURES UNDER SECTION 134(3) (l) OF THE COMPANIES ACT 2013:
There were no material changes and commitments affecting financial position of thecompany between 31 March and the date of Board's Report. (i.e. 13/08/2016)
3. CHANGE IN THE NATURE OF BUSINESS IF ANY:
During the period under review and the date of Board's Report there was no change inthe nature of Business.
4. PUBLIC DEPOSITS:
The Company has not accepted any deposits falling within the meaning of Section 73 ofthe Companies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014 during thefinancial year under review.
5. TRANSFER TO RESERVES:
Directors have decided not to transfer any amount to reserves for the year.
Keeping the Company's expansion and growth plans in mind your Directors have decidednot to recommend dividend for the year.
7. REVISION OF FINANCIAL STATEMENTS:
There was no revision of the financial statements for the year under review
8. DISCLOSURE OF INTERNAL FINANCIAL CONTROLS:
The Internal Financial Controls with reference to financial statements as designed andimplemented by the Company are adequate. During the year under review no material orserious observation was noted. The Company maintains appropriate system of internalcontrol including monitoring procedures to ensure that all assets are safeguardedagainst loss from unauthorized use or disposition. Company policies guidelines andprocedures provide for adequate checks and balances and are meant to ensure that alltransactions are authorized recorded and reported correctly.
9. DISCLOSURE OF ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNAL:
No orders have been passed by any Regulator or Court or Tribunal which can have impacton the going concern status and the Company's operations in future.
10. PARTICULARS OF CONTRACTS OR ARRANGEMENT WITH RELATED PARTIES:
The details of transactions/contracts/arrangements entered into by the Company withrelated party(ies) as defined under the provisions of Section 2(76) of the Companies Act2013 during the financial year under review are furnished in detail somewhere else inthe report (if applicable) and forms part of this Report.
11. BOARD MEETINGS DURING THE YEAR:
The Board of Directors duly met 6 (Six) times on 18.05.2015 27.05.201514.08.201510.11.2015 30.11.2015 and 13.02.2016 in respect of which meetings propernotices were given and the proceedings were properly recorded and signed in the MinutesBook maintained for the purpose.
12. CORPORATE GOVERNANCE:
Corporate Governance is not applicable to the company since the paid up equity sharecapital and net worth of the company does not exceed Rs. 10 crores and Rs. 25 croresrespectively. However the company voluntarily provides a separate section in the annualreport titled "Report on Corporate Governance" along with the Auditors'Certificate on Corporate Governance as stipulated under Regulation 34 read with Schedule Vof Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015
13. EXTRACT OF ANNUAL RETURN:
As required pursuant to section 92(3) of the Companies Act 2013 and rule 12(1) of theCompanies (Management and Administration) Rules 2014 an extract of annual return in MGT9 as a part of this Annual Report Annexure I
14. RETIREMENTS AND RESIGNATIONS:
During the year no director has resigned from the Company. Mr. J. R. Vamsi PrasadDirector of the Company retires by rotation and has not offered himself forre-appointment. The Board places its sincere appreciation for the services rendered by Mr.J. R. Vamsi Prasad during his tenure as a director of the Company.
15.DIRECTORS/CEO/CFO AND KEY MANANGERIAL PERSONNEL:
Mrs. J. Sailaja has been appointed as CFO w.e.f. 13.08.2016.
16. DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUAL BASIS:
The Company has received declarations from Mr.A. Rajeswara Rao Mr. A. Rajender Prasadand Mr. Anil Kumar Ramavatar Independent directors of the company to the effect that theyare meeting the criteria of independence as provided in Sub-section (6) of Section 149 ofthe Companies Act 2013 and Regulation 25 of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015.- Annexure-II
17. DIRECTOR'S RESPONSIBILITY STATEMENT:
In pursuance of section 134 (5) of the Companies Act 2013 the Directors herebyconfirm that:
a) In the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;
b) The Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit and loss of the company for that period;
c) The Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;
d) The Directors had prepared the annual accounts on a going concern basis; and
e) The Directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.
f) The Directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.
18. INFORMATION ABOUT THE FINANCIAL PERFORMANCE / FINANCIAL POSITION OF THESUBSIDIARIES / ASSOCIATES:
The Company does not have subsidiary. During the year neither any company has becomeits subsidiary nor ceased as its subsidiary.
19. STATUTORY AUDITORS:
M/s. Ramasamy Koteswara Rao & Co. Chartered Accountants Statutory Auditors of theCompany retire at the ensuing Annual General Meeting and being eligible have expressedtheir willingness for reappointment. Your directors propose the appointment of M/s.Ramasamy Koteswara Rao & Co. Chartered Accountants as statutory auditors to holdoffice until the conclusion of the next Annual General Meeting of the company.
The Board recommends the re-appointment of M/s. Ramasamy Koteswara Rao & Co.Chartered Accountants as the statutory auditors of the Company from the conclusion of thisAnnual General meeting till the conclusion of the next Annual General Meeting.
20. INTERNAL AUDITORS:
The Company is in the process of appointing a suitable Internal Auditor.
21. SECRETARIAL AUDIT:
Pursuant to the provisions of Section 134(3) (f) & Section 204 of the CompaniesAct 2013 Secretarial audit report as provided by M/s. S. S. Reddy & AssociatesPracticing Company Secretaries is annexed to this Report as annexure.
22. AUDIT REPORTS:
(a) Statutory Auditors Report:
The Board has duly reviewed the Statutory Auditor's Report on the Accounts for the yearended March 31 2016 and has noted that the same does not have any reservationqualification or adverse remarks. However the Board decided to further strengthen theexisting system and procedures to meet all kinds of challenges that may occur in theindustry.
(b) Secretarial Audit Report:
The Board has duly reviewed the Secretarial Audit Report on the Compliances accordingto the provisions of section 204 of the Companies Act 2013 and does not have anyqualifications reservations or adverse remarks except that the Company does not have afull time Company Secretary and internal auditors. The Board is looking for the suitablecandidates for the above said posts and the vacancies will be filled soon.
23. CORPORATE SOCIAL RESPONSIBILITY (CSR):
Since the Company does not have the net worth of Rs. 500 Crores or more or turnover ofRs. 1000 Crore or more a net profit of Rs. 5 Crore or more during the financial year orSection 135 of the Companies Act2013 relating to Corporate Social Responsibility is notapplicable and hence the Company need not adopt any Corporate Social ResponsibilityPolicy.
24. COMPLIANCE WITH SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS2015:
In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 the Company has signed uniform listing agreement with BSE Limited and MSEI Limitedand framed the following policies which are available on Company's website i.e.//spisyslimited.com
Board Diversity Policy
Policy on preservation of Documents
Risk Management Policy
Whistle Blower Policy
Familiarisation programme for Independent Directors
Anti Sexual Harrassment Policy
Related Party Policy
Code of Conduct
25. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:
The required information as per Sec.134 of the Companies Act 2013 is providedhereunder:
A. Conservation of Energy:
Your Company's operations are not energy intensive. Adequate measures have been takento conserve energy wherever possible by using energy efficient computers and purchase ofenergy efficient equipment.
B. Technology Absorption:
1. Research and Development (R&D): NIL
2. Technology absorption adoption and innovation: NIL
C. Foreign Exchange Earnings and Out Go:
Foreign Exchange Earnings: Rs. 27800270
Foreign Exchange Outgo: Rs. 6480078
The properties and assets of your Company are adequately insured.
27. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS:
The company has not given loans or Guarantees during the year under review.
28. CREDIT & GUARANTEE FACILITIES:
The Company has not availed facilities of Credit and Guarantee during the year.
29. DISCLOSURE ABOUT COST AUDIT:
Cost Audit is not applicable to your Company.
30. RATIO OF REMUNERATION TO EACH DIRECTOR:
No remuneration is paid to the Directors.
31.NON-EXECUTIVE DIRECTORS' COMPENSATION AND DISCLOSURES:
None of the Independent / Non-Executive Directors has any pecuniary relationship ortransactions with the Company which in the Judgment of the Board may affect theindependence of the Directors.
32. CEO/ CFO CERTIFICATION:
The Managing Director and CEO/ CFO certification of the financial statements for theyear 2015-16 is provided elsewhere in this Annual Report.
33. INDUSTRY BASED DISCLOSURES AS MANDATED BY THE RESPECTIVE LAWS GOVERNING THECOMPANY:
The Company is not a NBFC Housing Companies etc. and hence Industry based disclosuresis not required.
34. SECRETARIAL STANDARDS:
The company is in compliance with SS 1 & SS 2.
35. EVENT BASED DISCLOSURES:
During the year under review the Company has not taken up any of the followingactivities:
1. Issue of sweat equity share: The Company has not issued any sweat equityshares during the year under review and hence no information as per provisions of Section54(1)(d) of the Act read with Rule 8(13) of the Companies (Share Capital and Debenture)Rules 2014.
2. Issue of shares with differential rights: The Company has not issued anyshares with differential rights and hence no information as per provisions of Section43(a)(ii) of the Act read with Rule 4(4) of the Companies (Share Capital and Debenture)Rules 2014.
3. Issue of shares under employee's stock option scheme: The Company has notissued any equity shares under Employees Stock Option Scheme during the year under reviewand hence no information as per provisions of Section 62(1)(b) of the Act read with Rule12(9) of the Companies (Share Capital and Debenture) Rules 2014
4. Non- Exercising of voting rights : During the year under review therewere no instances of non-exercising of voting rights in respect of shares purchaseddirectly by employees under a scheme pursuant to Section 67(3) of the Act read with Rule16(4) of Companies (Share Capital and Debentures) Rules 2014.
5. Disclosure on purchase by company or giving of loans by it for purchase ofits shares: The company did not purchase or give any loans for purchase of its shares.
6. Buy back shares: The company did not buy-back any shares during theperiod under review.
7. Disclosure about revision: Since the company did not undergo anyrevision this clause is Not Applicable to the company for the period under review.
8. Preferential Allotment of Shares: The company did not allot any shares onpreferential basis during the period under review.
36. EMPLOYEE RELATIONS AND REMUNERATION:
Your Directors are pleased to record their sincere appreciation of the contribution bythe staff at all levels in the improved performance of the Company.
None of the employees is drawing Rs. 850000/- and above per month or Rs.10200000/-and above in aggregate per annum the limits prescribed under Section 197(12) of CompaniesAct 2013 read with Rule 5 of Companies(Appointment & Remuneration Of ManagerialPersonnel) Rules 2014.
37. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION AND REDRESSAL) ACT 2013
The Company has in place an Anti Sexual Harassment Policy in line with the requirementsof The Sexual Harassment of Women at workplace (Prevention Prohibition and Redressal)Act 2013. Internal Complaint Committee (ICC) has been set up to redress complaintsreceived regarding sexual harassment. All employees are covered under this policy.
The following is the summary of sexual harassment complaints received and disposedduring the calendar year.
|No. of complaints received: ||Nil |
|No. of complaints disposed off: ||Nil |
Your Directors wish to place on record their appreciation of the contribution made bythe employees at all levels for the continued growth and prosperity of your Company.
Your Directors also wish to place on record their appreciation of businessconstituents banks and other financial institutions other statutory authorities likeSEBI ROC Stock Exchanges NSDL CDSL etc and shareholders of the Company for theircontinued support for the growth of the Company.
| ||For and on behalf of the Board |
| ||For Spisys Limited |
| ||Sd/- ||Sd/- |
| ||J. Sailaja ||J. Sobhanadri |
|Place: Hyderabad ||Whole-Time Directorcum CFO ||Managing Director |
|Date: 13.08.2016 ||(DIN: 02219791) ||(DIN: 01997213) |