The Directors have pleasure in presenting their 10th Annual Report
along with the audited accounts of the Company for the year ended March
FINANCIAL HIGHLIGHTS (Rs In Lacs)
For the year For the year
ended 31-3-2012 ended 31-3-201
Income from Operation and
other income 1,622.78 2,040.92
Profit before Depreciation 411.42 1,525.79
Less: Depreciation 89.15 90.07
Profit before Tax 322.27 1,435.71
Provision for Tax 65.63 317.61
Deferred Tax (13.13) (10.56)
MAT credit Entitlement 55.85 (281.65)
Profit after Tax but before
Prior period adjustments 213.94 1,410.31
Less: Prior period adjustments 8.75 0.13
Profit after Tax and Prior
period adjustments 205.19 1410.18
Add: Balance B/f. From last year 6,164.72 4,754.55
Amount available for appropriation 6,369.91 6,164.72
Less: Dividend - -
Less: Dividend Tax - -
Balance carried to Balance Sheet 6,369.91 6,164.72
Due to global recession and worsening U.S. and U.K. economic
conditions, it would be difficult for IT industry to expand and grow.
In such a critical situation to maintain our performance was difficult.
Despite the challenging environment the Company performed well.
Drying the year under review, the Company has earned total income from
operations Rs 1622.78 lacs (previous yearRs 2040.92 lacs) translating
into a fall of 20.49%. The Profit after Tax and prior period
adjustments falls by 85.45% from Rs 1410.18 lacs in previous year to 7
205.19 lacs in the current year.
With a view to conserve resources, the management thought it prudent
not to declare dividend on equity shares of the Company.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance sheet, the
statement of Profit and Loss and other documents of the subsidiary
company are not being attached with the Balance Sheet of the Company.
However the financial information of the subsidiary company is
disclosed in the Annual Report in compliance with the said circular.
The Company will make available the annual accounts of the subsidiary
company and the related detailed information to any member of the
Company who may be interested in obtaining the same. The annual
accounts of the subsidiary company will also be kept open for
inspection at the Registered Office of the Company. The consolidated
financial statements presented by the Company include the financial
results of its subsidiary company.
In March 2011, Company invested in Excel Infra N Realty Pvt. Ltd., a
group company byway of purchasing 26000 equity shares ofRs 10/- there by
making it subsidiary of the Company. But as in November 2011, Company
has sold 25000 equity shares of Rs 10/- each of the same to Mr.
Lakhmendra Khurana - 10,000 shares and Mrs. Ranjana Khurana - 15000
shares, Excel Infra N Realty Ltd. is no more subsidiary of Excel
IPO FUND UTILISATION
The Company in the initial public offer of equity shares made in July
2009, raised Rs 48 crore. The said equity shares are listed on the BSE
and NSE effective August 2009. In the prospectus dated July 21, 2009 it
was stated that the proceeds from the public issue would be utilized
for setting up new facilities at Borivali and Kandivali at a total cost
of Rs 48 crore. As stated in the said prospectus the Company had as on
June 17, 2009 deployed Rs 18 crore from internal accruals, for purchase
of the said properties. However on account of unforeseen legal
disputes, the Company has been unable to get possession of the said
properties as per schedule, and therefore the funds allocated for work
related to interiors for the said facilities, could not be deployed.
The Board of directors have meanwhile deployed the funds aggregating Rs
30 crore towards purchase of alternate property at Borivali and is in
the process of setting up the facilities as proposed. The decision to
so deploy the funds has been made in the overall interest of the
Company and its shareholders.
In terms of sections 255 and 256 of the Companies Act, 1956 and
Articles of Association of the Company, Mrs. Ranjana Khurana and Mr.
Ravi Prakash Sinha, Directors retire by rotation and being eligible,
offer themselves for reappointment.
Mr. Lakhmendra Khurana was re-appointed as Managing Director w.e.f
April 01, 2012 for a further period of five (5) years, on such terms
and conditions as set out in the Explanatory Statement annexed to the
notice of the forthcoming Annual General Meeting subject to the
approval of shareholders in the said Annual General Meeting.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Board of Directors Report:
- that in the preparation of annual accounts, the applicable
accounting standards had been followed along with pnper explanation
relating to material departures;
- that the Directors have selected such accounting policies in
consultation with the statutory auditors 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 the
- that the Directors had 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
- that the Directors have prepared the annual accounts on a going
M/s. S. G. Kabra & Co., Chartered Accountants, Statutory Auditors of
the Company hold office until the conclusion of the ensuing Annual
General Meeting of the Company and are eligible for re-appointment.
The Company has received letter from them to the effect that their
re-appointment, if made, would be within the prescribed limits under
section 224(1 B) of the Companies Act, 1956 and that they are not
disqualified for such re-appointment within the meaning of section 226
of the Companies Act, 1956.
The Notes on Financial Statements referred to in the Auditors'' Report
are self-explanatory and do not call for any further comments.
During the year under review, Company has not accepted any fixed
deposits u/s 58A of the Companies Act, 1956, from the public. As such,
no amount of principal or interest is outstanding as on the Balance
PARTICULARS OF EMPLOYEES -
No employee draws remuneration in excess of limit prescribed under
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975.
The relationship of your Company with its employees remained cordial
throughout the year. The Company has various policies and procedures to
attract and retain its employees. Most of the employees of your Company
are educated and the Company provides training on various soft skills,
domain knowledge and effective communication skills. Your Company is
focused on improving the overall experience including health and mental
well-being of its employees; and to that end it regularly conducts
health checks. The Company also provides many benefits and incentives
to its employees including to help, motivate and retain valued
ENERGY CONSERVATION MEASURES, TECHNOLOGY ABSORPTION
Provisions of section 217(1) (e) of the Companies Act, 1956 read with
the Companies (Disclosure of particulars in the Report of the Board of
Directors) Rules, 1988 in relation to conservation of energy and
technology absorption are currently not applicable to the Company.
FOREIGN EXCHANGE EARNINGS AND OUTGO
The foreign exchange earnings and outgo, as required to be disclosed
under section 217(1)(e) of the Companies act, 1956 read with the
Companies(Disclosure of particulars in the Report of the Board of
Directors) Rules, 1988 are provided in the Annexure I to this report.
CORPORATE GOVERNANCE REPORT
The requisite certificate from the Auditors of the Company confirming
compliance with the conditions of Corporate Governance as stipulated
under the aforesaid Clause 49 is attached to this Report.
Your directors would like to express their appreciation for the
assistance and co-operation received from the financial institutions,
banks, government authorities, customers, vendors and members during
the year under review. Your directors also wish to place on record
their deep sense of appreciation for the committed services by the
executives, staff and workers of the Company.
For and on behalf of the Board of Directors
Sd/- Sd /-
Lakhmendra Khurana Ranjana Khurana
Chairman and Managing Director Executive Director
Place : Mumbai
Date : May 28, 2012