The Directors have pleasure in presenting herewith the Thirtieths
Annual Report of the Company together with Audited Accounts for the
year ended 31st March, 2012.
FINANCIAL HIGH LIGHTS:
Particulars 2011-12 2010-11
Total Income 44,835,987 380,348,864
Profit/(loss) before Depreciation (5,629,238) 5,988,794
Less: Depreciation & Amortization 240,001 232,576
Profit / (Loss) before tax (5,869,239) 5,756,218
Provision for tax NIL 1,089,370
Profit/(Loss) after Taxation (5,869,239) 4,705,588
The reported profit after tax is lower due to the fact that your
company decided to clean up balance sheet. The management has written
off the unrealizable balances as well as certain unrealizable
investments worth Rs 103 lacs. The advantage with your company is that
it is still a debt free company.
In continuation with the policy of your company to grow in different
vertical to reduce the dependence on the equity market alone; your
company has been diversifying into distribution business apart from
other main stream businesses. There is no change of vision as your
company has formed its opinion that equity markets are set to test
41000 Sensex by 2015 and this is a good time to leverage businesses as
a going concern.
We could not implement the business restructuring plans in last few
years as the environment of business is continuously shrinking post
LEHMAN issue and global economies are not responding to the changing
environment. Those who tried to expand with leveraged debts are facing
difficult challenges and going through the most difficult phase of
their business. Your company is now hopeful to raise funds through
equity and complete the business restructuring in F Y 12-13.
FATE OF ACHIEVEMENT:
Your company which has strategic partnerships with the best global
agencies in the world has been chosen for the prestigious award
Rashtriya Udyog Ratna Award and Quality Brand from Council
for Economic Growth and Research (CEGR) for company''s outstanding
contribution to society and to the nation. The fact that your company''s
content has been picked by NY times FT USA clearly suggests that the
quality of the content is world class. Your company has been invited by
many international rating and performance agencies for awards in the
field of research.
Even with regard to the research, your company ranked no 1 in India as
it has maintained 95% strike rate in calls generated in A gr investment
and trading. The performance of your company is exhibited on the home
page of the website of your company www.cniglobalbiz.com
The same is also made available in the Annual accounts for your ready
reference. The management will be delighted if the stake holders take
advantage of the expertise of your company for the individual gains.
The continued association of all global agencies along with fresh
addition to ties ups like ISI Emerging Market UK and Bloomberg USA
clearly speaks high about the quality and brand of your company.
Today India is the fastest growing economy behind China this means that
our financial sector is performing very well and to achieve faster
growth our financial sector would have to be wider in the sense that
small companies should be given an opportunity to grow by providing
them with the finance.
The company has entered into a content sharing agreement with Thompson
Reuters, Capital IQ a division of Standard & Poor''s, Dow Jones Factiva
a division of Dow Jones and TheMarkets.com division of Standard and
Poor USA, Blue Matrix and ISI Emerging markets UK and Bloomberg for
providing content and research on small and mid cap companies. This has
helped the company to build its brand and make it an international
brand. The process of creation of global subsidiaries is under planning
stage as your company is very conservative in expansion in the current
environment as the same has to be done with internal accrual rather
Time are changing very fast and the idea of setting first of its kind
of research house is finding wide acceptance globally.
Your company had also entered into high growth area such as investment
banking and other financial solutions which are incidental to the core
business of your company. Your company is now looking as fund based
activities which can top line and bottom line to your company.
The weak global sentiments and fearsome approach of investors has
affected your company too in the last fiscal. The consensus opinion
among the investor''s community and trader''s community is that India''s
policy makers need to address the major concerns of Indian capital
market which are overdue for last one decade. The return of retail
investors is highly dependent on the introduction of physical
settlement in the derivative segment and also the reforms to phase out
the manual handling of important issues which made more than 2000
companies illiquid that is trade to trade movement of stocks under the
garb of surveillance. So long as this will remain in the current state,
we do not think that the broad base entry of retail investors can be
seen Indian terrain.
The Ups and Downs of capital market has direct bearing on the revenue
of the company and to counter the same your company has made sizable
investments out of the current profits which are profitable. It was
prudently decided by the management to invest in technology, investment
opportunities instead of creating physical assets at this juncture. It
has also checked the costs which will protect the business even in slum
times. In internet business managing rising costs becomes a key subject
of interest for investors, as they add employees and build up their
infrastructures to support both expansion and ambitious innovation
TRANSFER TO RESERVES:
During the year under review, no amount has been transferred to
The company is focusing on growth and hence, your directors not yet
recommended dividend for the year under review.
The authorized, issued, subscribed and paid up capital of the company
during the year under review has not changed.
During the period under review, your Company has not accepted/renewed
any deposits within the meaning of section 58A of the Companies, Act
1956 and the rules made there under
CORPORATE GOVERNANCE REPORT:
Pursuant to Clause 49 of the Listing Agreement entered into with the
Stock Exchanges, the Company has complied with all the provisions of
Corporate Governance and a report on corporate governance is annexed
hereto and forms part of this report. A certificate from Auditors of
the Company regarding compliance of Corporate Governance, as stipulated
under Clause 49 of the Listing Agreement, is appended to the Annual
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis Report for the year under review as
required under Clause 49 of the Listing Agreement is presented in a
separate section forming part of the Annual Report.
REVIEW OF AUDITOR''S REPORT
Your Directors are pleased to inform you that the Statutory Auditors of
the Company have not made any adverse or qualified remarks in their
M/s. N.K Jalan & Co, Chartered Accountants, Auditors of the Company
retires at the conclusion of the ensuing Annual General Meeting. You
are requested to re-appoint the statutory auditors for the financial
year ended 31st March, 2013.
The Board and the Compliance Officer have ensured compliances of the
SEBI regulations and provisions of the Listing Agreement. Compliance
certificates are obtained and the Board is informed of the same.
DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under section 217(2AA) of the Companies
Act, 1956, with respect to Directors Responsibility Statement, it is
1. That in the preparation of the annual accounts for the year ended
March 31, 2012, the applicable accounting standards had been followed
along with proper explanation relating to material departures.
2. That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
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 the year under review.
3. That the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the company and for preventing and detecting fraud and other
4. That the Directors have prepared the accounts for the financial
year ended March 31, 2012 on a ''going concern'' basis.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the company, Mr. Arun S. Jain is liable to
retire by rotation and being eligible offers himself for
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Since the Company is engaged in the service industry, the Company does
not consume substantial energy. It is the policy of the management to
keep abreast of technological developments in the field in which the
company is operating and to ensure that the Company uses the most
suitable technology. During the year, the Company had earned Rs. 48,472/-
(US $ 1,079.39 ) in the form of Royalty for sale of research reports.
There is no outgoing in the form of foreign exchange. This does not
include payments received from overseas partners and customer directly
in Indian rupees.
The report in the prescribed format is given Annexure-I
PARTICULARS OF EMPLOYEES
There are no employees who are in receipt of remuneration in excess of
the rates/amounts specified under Section 217 (2A) of the Companies Act,
1956 read with the (Particulars of Employees) Rules, 1975.
Your Directors take this opportunity to thank its channel partners, all
employees, analysts, economists, company secretary, registrar,
depository, exchange authorities and bankers who were instrumental in
improving the operations of the company.
For and on behalf of Board
Date: 26.07. 2012 (Kishor P. Ostwal)