To The Members of CAPRICORN SYSTEMS GLOBAL SOLUTIONS LIMITED
The Directors have pleasure in presenting the Twenty Seventh Annual
Report of your Company together with the Audited Accounts for the
financial year ended 31st March'' 2012 and the report of the Auditors
Particulars 2011-12 2010-11
Total Income 241.99 151.87
Expenditure 229.85 140.83
Profit before Tax''
Interest and Depreciation 12.14 11.04
Less : Depreciation 7.56 6.47
Less : Interest 0.21 0.24
Profit before Tax 4.37 4.33
Provision for Income Tax 2.18 2.35
Provision for Deferred Ta x Liability 0.71 0.00
Net Profit after Tax 1.48 1.98
Profit brought forward 58.99 57.01
Balance available for appropriation 60.47 58.99
Transferred to General Reserve 0.00 0.00
Provision for Dividend 0.00 0.00
Provision for Tax on Dividend 0.00 0.00
Profit carried to Balance Sheet 60.47 58.99
OPERATIONS & FUTURE PROPSECTS:
The operations of the company have shown a healthy growth of about 60%
on account of execution of new works during the year. The company has
set in place a dedicated business development team for exploring the
new and profitable business opportunities. The company expects to
benefit from this initiative in the ensuring period.
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 Exchange
Limited is annexed to this Report.
There are no material changes affecting the business of the Company
after the date of the Balance Sheet.
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 2011
Sri G. Surender Reddy and Sri Anand Deshmukh'' Directors retire by
rotation and being eligible offer themself for re appointment. The
Board recommends their re appointment.
Sri G. Ramesh Babu was appointed as an Additional Director of the
Company in the Board Meeting held on 13th August'' 2012 and holds office
till the date of the ensuing Annual General Meeting. The Company has
received notice along with the required deposit for appointment of the
aforesaid Director as Director of the Company liable to retire by
rotation. The Board recommends his appointment.
Sri S. Jagadiswar Reddy has resigned from the Board of the Company
during the year. The board placed on records its appreciation for the
valuable services rendered by him to the company.
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 Company has received a
notice stating that they would be within the limits as prescribed under
the provisions of Section 224 (1B) of the Companies Act'' 1956. The
Board recommends their re-appointment
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.
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'' 2012'' 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 preventing
and detecting fraud and other irregularities;
(iv) that we had prepared the annual accounts for the year ended 31st
March'' 2012 on a going concern basis.
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 (Disclosure of particulars in the Report of
the Board of Directors) Rules'' 1988'' for the year ended March 31'' 2012
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:
2011 - 2012 2010 - 2011
No. Particulars of the
transaction (in Rs.) (in Rs.)
1. Total Foreign Exchange earnings 23''812''269 14''964''656
2. Foreign Exchange outgo Nil Nil
a. on account of import of Equipment Nil Nil
b. on account of Travel Nil Nil
Total Foreign Exchange outgo Nil Nil
The Company has complied with the provisions of Corporate Governance
under listing agreement.
A Certificate from the Auditors of the Company regarding compliance of
conditions of Corporate Governance
as stipulated under clause 49 of the listing agreement is attached to
The Board places a record of appreciation to the Bankers'' Government
and Non Government authorities'' Members and Employees of the Company
for their continued support and confidence in the Company.
For and on behalf of the Board
For Capricorn Systems Global Solutions Limited
Date : 03 September 2012 Sd/-
S. Man Mohan Rao