The Directors have pleasure in presenting the Seventeenth Annual Report
together with the Audited Accounts for the year ended 31st March, 2014
The Financial Results both Consolidated and Standalone for the year
ended 31st March, 2014 are summarized below:
(Rs. in Lakhs)
Particulars Consolidated Standalone Consolidated Standalone
for 2013-14 for 2013-14 for 2012-13 for 2012-13
Income from 4726.73 683.97 3226.30 1404.41
Expenditure 4549.16 568.67 2705.72 1271.89
Operating Profit 177.57 115.30 520.58 132.51
Interest 113.94 100.93 144.88 105.64
Depreciation 31.27 13.12 49.33 21.15
Profit before Tax 32.36 1.25 326.36 5.72
Provision for 11.52 0.38 52.44 1.09
Deferred Tax (1.52) (1.14) -7.65 -4.45
Profit / Loss 22.36 2.39 281.57 9.08
after Tax but
Extraordinary items 3.12 ----- 1.23 ----
Net Profit carried to 19.24 2.39 280.34 9.08
During the year 2013-14, company has achieved a turnover of Rs.4726.73
Lakhs as against Rs3226.30 Lakhs translating into growth of 46.50% over
the previous year 2012-13. However your Directors regrets to inform
you, that there was a drastic decline in Net profit (after
extraordinary) items which stands at Rs.19.24 Lakhs as against previous
year net profit of Rs.280.34 Lakhs. It was mainly due to excessive
operational overheads in relation to fixed price contracts where input
costs were disproportionally high beyond expectations of the company.
Further, there was no alternative, for the Board of Directors except
the completion of the projects which was mandatory as per the terms of
the contact and to retain the customers and image of the company among
the circles. However your Directors are confident of regaining the
business repeat orders from those customers whose projects the company
has completed on time not withstanding that the company has suffered
serious hit on its profits from those contracts.
Your Directors regrets rather beg a pardon from all the members for the
reason that the company is not in a position to declare the dividend
this year also and expressed their unhappiness about the successive
failures and inability to declare dividend and reward the shareholders.
However, your Directors expresses confidence in the operational
strengths of the company and skill sets of teams thus able to perform
better in the following years.
RESEARCH AND DEVELOPMENT:
The Company continues to invest in innovating and developing state of
the art technologies that are core for providing key solutions in
different industry verticals of interest. This includes critical
- Comprehensive e-learning solutions project
- Improving in the e-Governance Executive Strengths
- Technology & Solutions for Shipping & Ports
- Technology & solutions for Insurance business
A big thrust was made in the past three years in the aforesaid areas in
R&D. In the space of e-learning, big strides have been possible to not
only have a two way video interactivity, but also chat both in ‘open''
as well as ‘private'' environments. This is coupled with a robust
e-learning support system having full- fledged e-content upload, on
line testing, online submission of assignment and their valuation,
attendance tracking etc.
The Directors hope that the R & D initiatives made by the company will
yield good results and boost up the revenues of the company in the
The Company has not accepted any deposits from the public under section
73 of the Companies Act, 2013, during the year.
M/s Balaji Viswanath & Co., Chartered Accountants, Hyderabad, the
Company''s Auditors'' retire at the conclusion of the ensuing Annual
General Meeting. They have signified their willingness to accept
re-appointment and have further confirmed their eligibility under
Section 141 of the Companies Act, 2013.
In accordance with the provisions of Section 139 of the Companies Act,
2013 and Rules made there under, your Board of Directors recommends
their re-appointment for a term of three years from the conclusion of
17th Annual General Meeting till the conclusion of the 20th Annual
General Meeting subject to ratification every year, by the shareholders
at every Annual General Meeting.
SUBSIDIARIES AND DISINVESTMENT:
The following are the subsidiaries of the Company:
1. SPRY Resources India Pvt. Ltd
2. CTIL Infrastructure Pvt. Ltd.
3. CTIL Media Pvt. Ltd.
4. CTIL Hong Kong Limited
During the year 2013-14, the company has divested 11% stake in M/s ACE
BPO Services Pvt. Ltd., which ceases to be a subsidiary of the Company.
CONSOLIDATION OF FINANCIAL STATEMENTS:
As prescribed by Accounting Standards 21 read with Accounting Standard
23 issued by the Institute of Chartered Accountants of India,
consolidation of Financial Statement of Subsidiaries of the company,
have been prepared on the basis of Audited Results received from the
subsidiary companies as approved by their respective Boards.
ACCOUNTS AND FINANCIAL STATEMENTS OF SUBSIDIARIES:
Ministry of Corporate Affairs, New Delhi, vide Circular No:
5/12/2007-CL-III dated February 8, 2011 has granted general exemption
under Section 212(8) of the Companies Act, 1956 from the requirement to
attach detailed financial statement of each of the Subsidiaries of the
company. Pursuant to the said Circular, the Board of Directors of the
company gave their consent for not attaching the Balance Sheets of the
subsidiary Companies to the Annual Accounts of your company / this
Annual Report, for the year ended 31.03.2014.
Accordingly, the Balance Sheets and other financial statements relating
to the following subsidiary companies are not attached to the Annual
Accounts of the Company / in this Annual Report.
1. SPRY Resources India Pvt Ltd.
2. CTIL Infrastructure Pvt Ltd.
3. CTIL Media Pvt. Ltd
4. CTIL Hongkong Limited
However, pursuant to the provisions of Section 212 of the company''s Act
1956, a statement containing details of interest of holding company in
its subsidiary companies is appended to this Report.
Any member who wish to have information on any of the subsidiary
Companies may send his / their / request to the company, so that the
same could be forwarded. Further performance and financial position of
each of the subsidiary companies is included in the consolidated
CHANGES IN THE SHARE CAPITAL
The Company has only one class of Share Capital i.e. Equity Share
Capital. The Authorised Share Capital of the Company presently stands
at Rs.50.00 Crores divided into 5,00,00,000 equity shares of Rs.10/-
each. The paid up capital of the company for the year 2013-14 stands at
Rs. 30,77,07,570/- and the paid up capital for the previous year
2012-13 stands at Rs.26,21,55,540/-. The reconciliation of the Share
Capital has been provided under notes to the Balance Sheet of the
However as a measure of prudence, details of further issues resulting
in the increase of capital are given here. During the year, 45,55,203
equity shares of Rs. 10 each at a premium of Rs.17/- per share, have
been allotted to the promoters and to selected persons other than the
Promoters and Promoter Group companies on preferential issue basis,
which represented the increase in paid-up capital of Rs.4,55,52,030
Resignation of Directors:
01. Mr. GSS Prasad, tendered resignation from the Directorship on
account of personal reasons and the same which was accepted by the
Board of Directors on 15.07.2013
02. Mr. P. Guru Krishna, resigned from the Directorship on account of
personal reasons and it which was accepted by the Board of Directors on
The Board wishes to acknowledge the valuable services rendered by all
the above persons during their tenure as Directors, to the company.
Re-appointment of retiring Directors:
01. Mr.PVV Satyanarayana, Director retiring by rotation at the 17th
Annual General Meeting and being eligible, has offered himself for
02. Mr. Raj Nagesh Kosaraju, Director retiring by rotation at the 17th
Annual General Meeting and being eligible, has offered himself for
03. Mr. Ramesh Koritala, Director retiring by rotation at the 17th
Annual General Meeting and being eligible, has offered himself for re
Mr. Nandipati Venkata Simhadri and Mr. Sanjeev Sharma, who were
inducted as Additional Directors on to the Board w.e.f 24.12.2013 and
08.02.2014 respectively would hold office upto the date of the ensuing
Annual General Meeting . Mr. Nandipati Venkata Simhadri and Mr. Sanjeev
Sharma, the Additional Directors and Mr. M.Balarama Krishnaiah,
Director of the company, having submitted necessary consents to act as
Director and declarations to the company informing that they meet the
criteria of independence, are seeking appointment as Independent
Directors, at the meeting.
The Board recommends consideration and approval by the Members, for the
reappointment as Directors retiring by rotation, appointment of those
who cease to hold office at the Annual General Meeting (as they were
appointed before as the Additional Directors during the year) and
appointment of Mr. M. Balarama Krishnaiah, Director, as the Independent
Directors as proposed in the Notice of the Annual General Meeting.
Details of Directors seeking appointment / re-appointment at the
forthcoming Annual General Meeting in pursuance of Clause 49 of the
DIRECTORS'' RESPONSIBILITY STATEMENT:
In pursuance of Clause of sub-sections 3 and (5) of section 134 of the
Companies Act, 2013, your Directors confirm:
a) That in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanations
relating to material departures.
b) That the directors 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 and
Loss of the Company for that period.
c) That the Directors 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;
d) That the Directors had prepared the annual accounts on a going
e) That the Directors had laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and were operating effectively., and
f) That the Directors had devised proper systems to ensure compliance
with the provisions of all applicable laws and that such systems were
adequate and operating effectively.
PARTICULARS OF EMPLOYEES:
There is no employee who is falling under Rule 5 (2) of Companies(
Appointment and Remuneration) Rules, 2014. Therefore, the disclosures
required to be made here under are not applicable.
CODE OF CONDUCT:
The Code of Conduct has been circulated to all the members of the Board
and Senior Management and the compliance of the same has been affirmed
by them. Code of Conduct has also been placed on the website of the
company. A declaration signed by the Executive Director is given in
CONSERVATION OF ENERGY ETC, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS & OUTGO.
The required information as per Sec.134 (3) (m) of the Companies Act,
2013 is provided hereunder
Conservation of Energy:
The Operations of the Company are not energy-intensive. However to
ensure reduction in consumption of energy, your Directors are
constantly evaluating new technologies, mechanism, investments to make
infrastructure more energy efficient.
Some of the energy conservation initiatives initiated:
a. Walls and Roofs are properly insulated.
b. Turning off all lights in all the work places when not in use.
c. Turning off the Air Conditioners during non peak hours and
d. Effective management of ventilation to ensure good air quality.
e. Installation of energy efficient lighting.
f. Using energy efficient computers and equipment,.
A. Technology Absorption - The Company has been constantly upgrading
its technology to the latest in the market, for both its training
centers and software development.
B. Research and Development : Your Company is constantly working to
build a State of Art Research and Development Centre to enhance the
quality of its products.
C. Benefits derived from such Research and Development: As the
customer uses the end product, the benefit from the customer
satisfaction will ultimately be passed on to the company in terms of
increase in revenues and business prospective.
The report on the corporate governance is annexed which forms a part of
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis for the year under review as
stipulated under Clause 49 of the Listing Agreement with the Bombay
Stock Exchange is presented as a separate section forming part of this
COMPLIANCE CERTIFICATE OF THE AUDITORS:
The Statutory Auditors have certified that the company has complied
with the conditions of Corporate Governance as stipulated in the
Listing Agreement with the Stock Exchange and the same is annexed to
the Report of Directors.
Relations with the employees continued to be cordial throughout the
year. Your Directors place on record their appreciation of the efforts,
dedication and active participation of employees in various initiatives
taken by the company during the year under review:
Your Directors express their heartfelt gratitude and thanks to the
Company''s Bankers, Shareholders, customers and various Central and
State Government Agencies, Local Authorities for their continued
support during the year. Your Directors also wish to place on record
their sincere appreciation of unstinted support and co-operation
extended by all the personnel at various levels of the Organization.
Company''s growth was made possible by the hard work, solidarity,
co-operation and support of the employees all along. Your Directors
look forward for the same in the years to come and wish to maintain
whole hearted continuing relationship with all of them.
BY ORDER OF THE BOARD
For CTIL LIMITED
P.V.V.Satyanarayana P.Obul Reddy
Chairman Executive Director