CAPRICORN SYSTEMS GLOBAL SOLUTIONS LIMITED
The Directors have pleasure in presenting the Twenty Ninth Annual
Report of your Company together with the Audited Accounts for the
financial year ended 31st March, 2014 and the report of the Auditors
Particulars 2013-14 2012-13
Total Income 416.38 332.20
Expenditure 394.20 304.83
Profit before Tax, Interest and Depreciation 22.18 27.37
Less : Depreciation 9.20 9.81
Less : Interest 0.51 9.83
Profit before Tax 12.48 7.73
Provision for Income Tax 5.55 2.86
Provision for Deferred Tax Liability (0.39) 0.38
Net Profit after Tax 7.32 4.49
Profit brought forward 64.96 60.47
Balance available for appropriation 72.28 64.96
Profit carried to Balance Sheet 72.28 64.96
OPERATIONS & FUTURE PROPSECTS:
During the year the company has been successful in delivering the works
to its existing contracts. Backed by the robust committed orders the
turnover of the company has recorded a consistent growth path.
Considering the consistent recovery being made in the n the US markets
from where the business of the company is sourced , the outlook for the
company is healthier the company expects to achieve higher turnover
during the coming years .
The Corporate Governance Report regarding compliance of the conditions
of corporate governance by your Company as stipulated in clause 49 of
the Listing Agreement entered into with The Bombay Stock Ex- change
Limited is annexed to this Report.
There are no material changes affecting the business of the Company
after the date of the Balance Sheet. DEPOSITS:
During the year under review the Company has not accepted any deposits
from public as defined under the provisions of Section 58 A of the
Companies Act, 1956
No dividend is recommended by the Board of Directors for the year
Pursuant to Section 149 of the Companies Act,2013 , the Board at its
meeting held on 1st September, 2014 recommended appointment of Mr.
Anand Deshmukh, Mr. K.V. Srinivasa Rao and Mr. G. Ramesh Babu as
independent directors of the company not liable to retire by rotation
for 5 years from the date of its 29th Annual General Meeting of the
company subject to approval of the members of the Company.
The Directors have given declaration to the Board that they meet
criteria of independence as provided under Section 149(6) of the said
Act and also confirmed that they would abide by the provisions as
mentioned in Schedule IV of the Companies Act,2013. The Board
recommends the resolutions for your approval for the above
DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to provisions of Section 217 (2AA) of the Companies Act, 1956
we, the Board of Directors of the Company hereby state:
(i) that in the preparation of the annual accounts for the year ended
31st March, 2014, the applicable accounting standards had been followed
along with proper explanation relating to material departures;
(ii) that we had 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 of the
Company for that period;
(iii) that we had taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of
this Act for safeguarding the assets of the Company and for prevent-
ing and detecting fraud and other irregularities;
(iv) that we had prepared the annual accounts for the year ended 31st
March, 2014 on a going concern basis.
M/s Satyanarayana & Co., Chartered Accountants, the Statutory Auditors
of the Company retire at the conclusion of the ensuing Annual General
Meeting and are eligible for re-appointment. The said auditors have
furnished the certificate of their eligibility for the reappointment.
Pursuant to the provisions of the Section 139 of the Companies Act,2013
and the Rules framed there under, it is proposed to appoint M/s.
Satyanarayana & Co as Statutory Auditors of the Company from the
Conclusion of the forthcoming AGM till the conclusion of the 32nd
Annual General Meeting to be held in the year 2017 subject to
ratification of their appointment at the subsequent AGMs.
During the year under review, there were no employees drawing
remuneration in excess of the limits laid down in Section 217(2A) of
the Companies Act, 1956 read with the Companies (Particulars of
Employee''s) Rules, 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The disclosures required under Section 217(1) (e) of the Companies Act,
1956 read with Companies (Dis- closure of particulars in the Report of
the Board of Directors) Rules, 1988, for the year ended March 31, 2014
are as follows:
A. CONSERVATION OF ENERGY:
a. Adequate measures have been taken to conserve energy wherever
b. Additional investments and proposals, if any, being implemented for
reduction of consumption of energy: NIL
c. Impact of measures for reduction of energy consumption / energy
B. RESEARCH AND DEVELOPMENT & TECHNOLOGY ABSORPTION :
1. The company has an Inhouse team for upgradation / development of
technologies and products.
2. Benefits Derived : Faster turn around time in delivery of the
3. Future plan of action : Enhancing the capacity & capability of the
team as per growth needs of the company.
C. In case of imported technology, imported during the last 5 years
reckoned from the beginning of the financial year, following
information may be furnished:
a. Technology Imported: N. A. b. Year of Import: N. A.
c. Has technology fully absorbed areas where this has not been taken
place, reasons thereof and plan of action: N. A.
D. FOREIGN EXCHANGE EARNINGS AND OUTGO:
1. Activities relating to exports, initiatives taken to increase
exports, development of new export markets for products and services,
and export plans:
The entire software developed is exported to the Company belonging to
the promoters. The management does not have any immediate plans to
export its services to other countries.
2. Total Foreign Exchange used and earned:
Particulars of the transaction 2013 - 2014 2012 - 2013
(in Rs.) (in Rs.)
Total Foreign Exchange earnings 359,91,018 345,86,434
Foreign Exchange outgo Nil Nil
a. on account of Travel Nil Nil
Total Foreign Exchange outgo Nil Nil
For and on behalf of the Board
For Capricorn Systems Global Solutions Limited
Date : 1 September 2014 Sd/-
S. Man Mohan Rao
DIN : 00109433