Your Directors take pleasure in presenting for your consideration and approval theTwenty Eighth Annual Report of Your Company for the financial year ended March 312020.
1 Financial Result
|PARTICULARS || ||(Rupees in Lacs) |
| ||Year Ended 31.03.2020 ||Year Ended 31.03.2019 |
|1. Income from Operations || || |
|a) Net Sales/Income From Operations ||90.67 ||105.96 |
|b) Other Operating Income ||34.00 ||2.38 |
|Total Income(a+b) ||124.67 ||108.34 |
|2. Expenses || || |
|a.Cost of Materials Consumed || || |
|b. Purchase of Stock InTrade ||83.16 ||85.81 |
|c. Change in the inventories of Finished Goods Work in Progress and Stock in Trade || || |
|d.Depreciation & Amortizations expenses ||20.67 ||2.09 |
|e.Employee Benefit Expenses ||51.26 ||61.48 |
|f)Finance cost ||6.37 ||0.00 |
|g).Other expenditure ||23.87 ||82.62 |
|Total Expenses ||185.33 ||232.01 |
|3. Profit (Loss)before Exceptional items and Extraordinary items and TAX(V2) ||(60.66) ||(123.67) |
|4. Exceptional Items || || |
|5. Profit(Loss)before Extraordinary Items and tax(3-4) ||(60.66) ||(123.67) |
|6. Extraordinary items || || |
|7. Profit(Loss)before Tax(5-6) ||(60.66) ||(123.67) |
|8. TAX Expenses || || |
|Current Tax || || |
|Deferred Tax || || |
|Total Tax Expenses || || |
|9. Net Profit! (Loss)for the period (7-8) ||(60.66) ||(123.67) |
|10. Other Comprehensive income/(Loss) for of the period (Net Tax Expense) ||(1.12) ||3.48 |
|(a) Total Comprehensive income for the period (9+10) || || |
|Total Comprehensive income for the period (7+8) ||(61.78) ||(120.19) |
|11. Total Comprehensive income for the period(9+10) ||(61.78) ||(120.19) |
|12. Paid-up equity share capital (Face Value Rs. 10 each) ||1029.76 ||1029.76 |
|13. Earning Per equity share (EPS) (of Rs.10/- each) Not Annualized) || || |
|(a) Basic (Rs.) ||(0.59) ||(1.20) |
|(b) Diluted (Rs.) ||(0.59) ||(1.20) |
1. BUSINESS AND OPERATIONS OF THE COMPANY
VirtualSoft -Co-creating Integrating &Optimising World's best & mostinnovative roaming communications & collaboration platforms Apps and solutions toprovide consumers and enterprises an unbeatable communication & productivityexperience.
Video Rich Broadband and 4G mobile networks - with 5G coming in the next few years- arerevolutionizing the way we do business and run our lives.Virtual Soft through its vReachdivision offer outstanding digital broadband solutions. vReach uses technology developedinhouse and by our best-of-breed global partners to the advantage of large enterprisesassociations and media companies as well as their customers and consumers. Broadbandnetwork& application solutions offer a convergence of voice data and video that canbe used for your enterprise - by creating and leveraging business function specificvirtual events - both live & on-demand and also by embedding contextual communication& video functionality into key enterprise processes greatly enhancing the userexperience and their productivity impact. This is ideally done through an annualengagement contract with VirtualSoft.
A proprietary system called v Code guarantees clarity and seamless delivery of audiovideo and multimedia files across both narrowband and broadband networks.
VirtualSoft has developed a world-class Enterprise Communication Platform called vReachthat utilizes existing corporate computing and communications infrastructure to makereal-time business meeting and events more cost-effective and convenient by reducingtravel and extending reach to globally dispersed customers partners and co-workers overlow and high bandwidth connections through a simple browser interface.
VirtualSoft'svReach division also offers Rich Media content creation and migrationservices using proprietary technology and business methods. Over the last many yearsVirtualSoft has created near video on-demand content synchronized with Power point slidesand other interactive mechanisms for leading conference organizers like CIIFICCINasscomIndia Federation of Neuro Rehabilitation (IFNR) India Today ExhibitionsIndia Invest India and Sugar Technologists' Association of Indiafor leading enterprisessuch as SAPIBM India Today Gangaram Hospital JamiaMillialslamia University MaxPublicity Communication Delhi Technological University ESRI<CILT and GEZ.
We has created over 15000 hours of such content for over 7000 different conferencesand training events.
This content is available in CD/DVD form as well as on knowledge on-demand serversaccessible over the intranet and/or internet.
vReach has also created a Demand Generation Practice where it uses its own and thirdparty platforms & Databases in-house multi-media content development social media -web and telemarketing to create customized lead generation demand gen channel training& development sales enablement and customer engagement programs mainly for Businessto Business brands & specially in the Technology space.
In the year under Review we continued making progress on both the Digital DemandGeneration and Telecom initiatives that were launched in the past few years.
In Demand Generation we continued to strengthen the strategic partnership for Indiaand APAC with 6Connex Inc. (www.6Connex.com) - a California based global leader in VirtualExperience & Virtual Destination based business solutions. Supplementing 6Connex'slatest Technology/ Platform with our own domain competence technology processes and gotomarket ecosystem Virtual Soft is poised launched a range of next generation VirtualExperience based events for demand generation customer engagement collaborationlearning and knowledge management. This will build on the work done in the past few yearsfor brands like CNBC/ Web 18 Cisco Oracle and Intel - both at the India & APAClevel.
The Telecom Division launched for global roaming solutions and services underRoaml brand (www. roam1.com) in FY 2010-11. The global roaming businessportfolio was hived off into a subsidiary Roam 1 Telecom Ltd during FY 13-14 we continueto make significant progress in terms of innovative and unique product introductions andplans as well as gaining market share and acceptance - both from end -customers andchannel partners.
Our key offerings in Roam 1 Telecom Ltd are based on Global or Regional (e.g Europe)Single Sim Product or Platform that contains multiple IMSI Profiles or local countryspecific numbers - typically from 3 to 14 in ONE SIM that provides low cost Voice and dataservices when the subscriber travels overseas. This SIM provides Free Incoming in over 60countries and provides low cost Call Back to India. This is offered through both prepaidand post-paid plans. The billing is in real time and is visible instantly on the web whichensures that there is no room for over billing. The customer gets to retain the card andcan publish the number as his permanent International Number on his business card andstationary etc. This way every time the customer goes abroad he adds talk time on hiscard which makes repeat business very easy for us. The Global Single SIM Product issupported by a wide array of country and continent specific products and plans for voiceand data.
Roam1 launched the Konnect VOIP Dialling App on a pilot basis for InternationalRoamers in 2017-18 which has met with success with hundreds of paid users successfullyusing this App every month. This App was enhanced in the year under review with the goalof launching this to a wider section of users in India and overseas post getting certainregulatory approvals. and overseas.
VirtualSoft thus develops integrates optimizes and deploys the technologies of theday to provide the infrastructure application platforms and Apps needed for rich andenhanced communications & international roaming services for enterprises and consumers- as well as for creating collaborative virtual business solutions for sales customerengagement training and knowledge management.
In the year under Review with an intent to synergise the two divisions at a corporatelevel the C2E3 Initiative was strengthened. C2E3 stands for Connect Communicate EngageExperientially and Cost - Effectively and provides a bridge for the Telecom & Roam 1Division to collaborate with the Virtual Events and Demand Gen Division in technology& product development marketing and large partner and account development. This willcreate unique cross developed product offerings solutions and services in the enhancedcommunications and collaboration space - including for and based on web and videoconferencing cloud telephony& unified communications Rich Communication Services(RCS) connected device life-cycle management solutions and will facilitate more salesyield from our sales teams &goto market partners. VirtualSoft now intendsstrengthening its Systems and Solutions Integration capability in this area includingthe capability to offer Mobile First On -Premises and and integrated/blended C2E3 anddigital transformation solutions to both Large Enterprises and SMEs - directly and throughBusiness Partners.The company is also examining setting up an incubator / accelerator indomains of expertise interest and future growth
Given the pandemic & the New Normal VirtualSoft is also working to create anetwork of Large Mini & Micro Teleworking Center of Excellence (TCEs) that allowbusiness educational hospitality & residential complexes & facilities toleverage this technology and related business process including intrinsic reskillingmotivation and productivity management of remote teleworkers for maximum personalprofessional and enterprise productivity.
With the foundation in Enterprise Broadband solutions Telecom and Roaming Solutionsand the newer the C2E2 digital Transformation & TCE Initiatives - all of which arebeing enhanced for major scale up the Company now expects significant growth in bothrevenues and profitability in the years to come.
Your Directors do not recommend a dividend due to loss incurred for the currentfinancial year.
4. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION FUND
The provisions of Section 125(2) of the Companies Act 2013 do not apply pertaining tothis financial year.
5. MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THECOMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENTSRELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Companyoccurred between the ends of the financial year to which this financial statement relateon the date of this report
6. STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THECOMPANY
The Company has devised and implemented a mechanism for risk management and hasdeveloped a Risk Management Policy. The provisions of Risk Management Committee is notapplicable on the Company.
7. DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIALRESPONSIBILITY INITIATIVES
The Company has not developed and implemented any Corporate Social Responsibilityinitiatives as the said provisions are not applicable.
8. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THECOMPANIES ACT 2013
There were no loans guarantees or investments made by the Company under Section 186 ofthe Companies Act 2013 during the year under review and hence the said provision is notapplicable.
9. PARTICULARS OF CONTRACTS ORARRANGEMENTS MADE WITH RELATED PARTIES
No fresh Contracts or Arrangements was made with related parties pursuant to Section188 except those continuing which were approved earlier by shareholders. Notes to Accountson the transactions with related parties are self explanatory.
10. STATUTORY AUDITORS
M/s. Krishna Neeraj & Associates Chartered Accountants Auditors of the Companyhas been appointed for a period of 5 years. His appointment is to be ratified at theensuing at the ensuing Annual General Meeting. The Board proposes his ratification.
11. SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 the Board of Directors has appointed MrSanjeev Kumar Jha from SJK & Co. practicing Company Secretary for conductingsecretarial audit of the Company for the financial year 2019-20. The Secretarial AuditReport is annexed herewith as Annexure A.
The Secretarial Audit report does not contain any qualification reservation or adverseremark.
12. INTERNAL AUDIT
Pursuant to the provisions of the Companies Act 2013 the Board of Directors hasappointed CA Dinesh Bajaj & Co. Chartered Accountant for conducting secretarial auditof the Company for the financial year 2019-2020.
13. EXPLANATION OR COMMENTS ON QUALIFICATIONS RESERVATIONS OR ADVERSE REMARKS ORDISCLAIMERS MADE BY THE AUDITORS AND THE PRACTICING COMPANY SECRETARY IN THEIR REPORTS
There was no qualifications reservations or adverse remarks made by the either by theAuditors or by the Practicing Company Secretary in their respective reports.
14. COMPANY'S POLICY RELATING TO DIRECTORS APPOINTMENT PAYMENT OF REMUNERATION ANDDISCHARGE OF THEIR DUTIES
The company has a policy in place which will be provided upon request. In terms ofSection 136 of the Act the Report and Accounts are being sent to the Members and othersentitled thereto excluding the policy which is available for inspection by the Members atthe Registered Office of the Company during business hours on working days of the Companyup to the date of the ensuing Annual General Meeting. If any Member is interested inobtaining a copy thereof such Member may write to the Company Secretary in this regard.
15. ANNUAL RETURN
The extracts of Annual Return pursuant to the provisions of Section 92 read with Rule12 of the Companies (Management and administration) Rules 2014 is furnished in Annexure Band is attached to this Report.
16. NUMBER OF BOARD MEETINGS & THEIR COMMITTEES CONDUCTED DURING THE YEAR UNDERREVIEW
The Company had FOUR (4) Board meetings during the financial year under review. Thedetails are mentioned elsewhere in the Corporate Governance Report.
Mr. Gokul Tandan retires by rotation at the ensuing Annual General Meeting of theCompany and being eligible offer himself for reappointment. The Board of Directors is dulyconstituted Mr. S C Rajpal and Mrs. Ritu Tandon had resigned and Mr. Sriniwas Chandan wasappointed during the year under review.
18. DECLARATION OF INDEPENDENT DIRECTORS
The Independent Directors have submitted their disclosures to the Board that theyfulfill all the requirements as stipulated in Section 149(6) of the Companies Act 2013 soas to qualify themselves to be appointed as Independent Directors under the provisions ofthe Companies Act 2013 and the relevant rules.
The Company has not accepted deposits from the public for the year under consideration.
20. SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES
The details of financial performance of Subsidiary/ Joint Venture/Associate Company isfurnished in Annexure C. and attached to this report.
21. CAPITAL MARKET DEVELOPMENTS
As on date 94.86% of Shares are in Demat form and are listed on various stockexchanges. The Company has from time to time reminded the shareholders/ investorholding the Shares in Physical form to convert their Shareholding to dematerialized form.
22. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS ANDOUTGO
(a) Details of Conservation of Energy
The Company uses electric energy for its equipment such as air-conditioners computerterminals lighting and utilities in the work premises.
Steps taken or impact on conservation of energy: All possible measures have been takento conserve energy By identifying potential areas for saving; By incorporating energyefficient equipment; By automation.
Steps taken by the company for utilizing alternate sources of energy: Nil
Capital Investment on energy conservation equipments: Nil
(b) Technology Absorption
1. Efforts in brief made towards technology absorption adaptation and innovation:
These are adapted wherever necessary to local conditions.
2. Benefits derived as a result of the above efforts:
New product development productivity and quality improvements enhanced safety andenvironmental protection measures and conservation of energy.
3. Technology Imported: NIL
4. Expenditure on R&D: NIL
C. Foreign Exchange earnings and outgo
The information in this regard is provided in Note no. 31 of the Accounts. There hadbeen no foreign exchanges earnings during the year.
23. DIRECTORS' RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies Act 2013 theBoard hereby submit its responsibility Statement:
(a) In accordance with the provisions of Section 134(5) of the Companies Act 2013 theBoard hereby submit its responsibility Statement:
(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.
Internal financial control means the policies and procedures adopted by the Company forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information.
(f) the directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.
24. DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM
The composition of committees has been detailed in Corporate Governance Report part ofthis Report.
The Company has established a vigil mechanism and overseas through the committee thegenuine concerns expressed by the employees and other Directors. The Company has alsoprovided adequate safeguards against victimization of employees and Directors who expresstheir concerns. The Company has also provided direct access to the chairman of the AuditCommittee on reporting issues concerning the interests of co employees and the Company.
a. BUY BACK OF SECURITIES:
The Company has not bought back any of its securities during the year under review.
b. SWEAT EQUITY
The Company has not issued any Sweat Equity Shares during the year under review.
c. BONUS SHARES
No Bonus Shares were issued during the year under review.
d. EMPLOYEES STOCK OPTION PLAN
The Company has not provided any Stock Option Scheme to the employees.
26. CORPORATE GOVERNANCE
A Separate statement on Corporate Governance along with the Certificate on itscompliance is given as part of the Annual Reports.
27. PREVENTION OF SEXUAL HARASSMENT
The Company is an equal opportunity employer and is committed to ensure safe and secureenvironment prohibiting discrimination on grounds of religion race caste sex place ofbirth and gender specific violence such as sexual harassment at the work place.
The Company has the Policy on Prevention Prohibition &Redressal against SexualHarassment of Women at Workplace as per the requirement of The Sexual Harassment of Womenat Workplace (Prevention Prohibition and Redressal) Act 2013 and the Sexual Harassmentof Women at Workplace (Prevention Prohibition and Redressal) Rules 2013. This policyprovides for prevention and redressal of complaints of sexual harassment and incidentalmatters. There is an Internal Complaints Committee formed as per the prescribed rules.
The following is a summary of sexual harassment complaints received and disposed offduring the period:
|Number of Complaints received ||NIL |
|Number of Complaints disposed off ||NIL |
|Number of Complaints pending for disposal ||NIL |
Your Directors acknowledge with a deep sense of gratitude the continued supportextended by investors customers business associates bankers and vendors. Your Directorstake this opportunity to thank the regulatory and governmental authorities.
|For and on behalf of the Board of Directors || |
|Mr. Gokul Tandan ||Mr. R.V.Kulkarni |
|Managing Director ||Director |
|Place : New Delhi || |
|Date : August 26 2020 || |