you are here:

Compuage Infocom Ltd.

BSE: 532456 | NSE: COMPINFO |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE070C01037 | SECTOR: Computers - Hardware

BSE Live

Dec 07, 15:00
29.80 0.85 (2.94%)
Volume
AVERAGE VOLUME
5-Day
150,442
10-Day
177,047
30-Day
73,594
407,929
  • Prev. Close

    28.95

  • Open Price

    29.80

  • Bid Price (Qty.)

    29.65 (1644)

  • Offer Price (Qty.)

    29.75 (2)

NSE Live

Dec 07, 15:00
29.85 0.90 (3.11%)
Volume
AVERAGE VOLUME
5-Day
1,142,200
10-Day
1,132,966
30-Day
477,351
2,379,658
  • Prev. Close

    28.95

  • Open Price

    29.60

  • Bid Price (Qty.)

    29.70 (1028)

  • Offer Price (Qty.)

    29.85 (218)

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Director’s Report

The Directors hereby present the 19th Annual Report on the business and operations of the Company along with the Audited Financial Statements for the financial year ended March 31, 2018.

FINANCIAL HIGHLIGHTS:

The highlights of the Financial Results are as tabulated below:

(Rs. in Lakhs)

Particulars

Standalone

Consolidated

31st March 2018

31st March 2017

31st March 2018

31st March 2017

Revenue from Operations & Other Income

408939.80

357047.91

408939.80

357050.19

Less: Expenses

400454.64

349428.41

400478.80

349429.57

Profit before Interest, Taxation & Depreciation

8485.16

7619.50

8461.00

7620.62

Less: Finance Costs

4949.93

4493.89

4949.93

4493.89

Less: Depreciation

340.91

358.94

342.14

362.62

Profit before Tax

3194.32

2766.67

3168.92

2764.11

Less: Tax Expense

1139.95

1018.73

1139.95

1018.73

Profit after Tax Provision

2054.37

1747.93

2028.97

1745.38

Less: Other Comprehensive Income

-

-

0.06

2.24

Balance brought forward

8844.99

7379.84

8936.56

7476.21

Amount available for Appropriation:

10899.36

9127.77

10965.47

9219.35

Less: Dividend

Dividend for Financial year 2016-2017

-

234.96

-

234.96

Dividend Tax for Financial year 2016-2017

-

47.83

-

47.83

Proposed Dividend

234.96

234.96

234.96

234.96

Dividend Distribution Tax

47.83

47.83

47.83

47.83

Less: Unrealised Profit

-

-

-

-

Less: Foreign Currency Translation Reserve

-

-

-

-

Less: Minority Interest

-

-

-

-

Balance Carried to Balance Sheet

10616.57

8844.99

10682.68

8936.56

EPS (Basic)

3.50

2.97

3.45

2.97

EPS (Diluted)

3.50

2.97

3.45

2.97

NOTE: TRANSITION TO IND AS:

These financial statements as at and for the year ended March 31, 2018 have been prepared in accordance with Indian Accounting Standards (Ind AS) issued under the Companies (Indian Accounting Standards) Rules, 2015 and as amended thereafter.

For all periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under the Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements are the Company''s first Ind AS financial statements and are covered by Ind AS 101, First-time adoption of Indian Accounting Standards. The transition to Ind AS has been carried out from the accounting principles generally adopted in India (Indian GAAP) which is considered as the Previous GAAP for purposes of Ind AS 101. An explanation of how the transition to Ind AS has affected the Company''s Equity and its Net Profit is provided in Note 33(B). Financial Statements as at, and for the year ended March 31, 2017 have also been restated to conform to Ind AS.

BUSINESS PERFORMANCE:

Standalone:

The Company registered increase in revenue by 14.53%. The Company''s revenue increased to Rs.408939.80 Lakhs as compared to Rs.357047.91 Lakhs in the previous year marking an increase by Rs.51891.89 Lakhs. The Company''s Net Profit After Tax stood at Rs.2054.37 Lakhs as compared to Rs.1747.93 Lakhs in the previous year recording an increase of 17.53%.

Consolidated:

The consolidated increase in revenue was 14.53%. Our consolidated revenue has grown to Rs.408939.80 Lakhs as compared to Rs.357050.19 Lakhs in the previous year. The Company''s Net Profit after Tax stood at Rs.2028.97 Lakhs as compared to Rs.1745.37 Lakhs in the previous year and thus Net Profit recorded a growth rate of 16.25%. Overall the year gone by has been good and your Directors are hopeful of favourable time in future too.

DIVIDEND:

For the financial year 2017-18, your Directors have recommended a dividend of Rs.0.40 paisa per share on face value of Rs.2/- per share of the Company, i.e. 20 per cent of the face value. The said Dividend on Equity Shares is subject to the approval of the Shareholders at the Annual General Meeting (AGM).

TRANSFER TO RESERVES:

The whole profit after tax has been transferred to Surplus in the Statement of Profit & Loss. No amount is transferred to General Reserves Account.

BUSINESS STRATEGY:

Compuage is a leading technology products distribution Company in India by technology products primarily, we carry the IT and mobility products. During the year under review, Company has signed up new relationships with vendors for distribution of products in India. Its business strategy is based on following principles:

- Partnering up new viable businesses and build lasting relationships with existing, new and potential partners.

- To reach rural market, penetrate deeper in the current markets and trying to grow the business in the existing product line.

- Increase our reach and penetration from 800 cities and 12000 partners to 1000 cities and 15000 partners by 2020.

- Launch of online purchase model for Channel Partners which will help to tap larger market share.

- To deliver differentiated offerings to the clients which in turn will enhance their productivity and thus brings overall efficiency and effectiveness of the business.

- Periodically optimise various operational parameters to bring in effectiveness of organisational structure and processes which helps in aligning and meeting strategic goals.

- Materially enhancing the efficiency of our work delivery processes through good planning, flexibility amongst our workforce and utilising available technology and field tools.

- Ensuring the overall safety of our people, recruiting, training and retaining the best people and delivering on shareholder.

Basically, the Board is fairly bullish about future and working on the targets for upcoming years. Your Directors are making all good efforts to achieve the better results in years to come.

SUBSIDIARY COMPANY:

Compuage Infocom (S) Pte. Ltd.:

Compuage Infocom (S) Pte. Ltd. is a Wholly Owned Subsidiary of the Company. There was no business activity in the Subsidiary Company during the year since, Company has transferred its business to Singapore Branch.

In accordance with Section 129(3) of the Companies Act, 2013, a statement containing salient features of the financial statements of the Subsidiary Company in Form AOC-1 is appended as Annexure A to the Board''s Report.

Further, no new subsidiary was acquired nor any subsidiary ceased to exist.

OVERSEAS OPERATIONS:

Your Company''s overseas operations are carried out through branch office established in Singapore. It has served as a medium to manage business more effectively. This overseas presence has enabled to achieve economies of scale.

CONSOLIDATED FINANCIAL STATEMENTS:

As stipulated by Regulation 33 of the Listing Regulations, the consolidated financial statements have been prepared by the Company in accordance with the Indian Accounting Standards (Ind AS). The audited consolidated financial statements together with Auditors'' Report forms part of the Annual Report.

Pursuant to Section 136 of the Companies Act, 2013, the financial statements of the subsidiary are kept for inspection of the Shareholders at the Registered Office of the Company.

SHARE CAPITAL:

During the year, there was no change in the share capital structure of the Company. The Authorized Share Capital of your Company stands as follow as on March 31, 2018:

Sr.

No.

Particulars

Amount (in Rs.)

1.

96270000 Equity Shares of Rs.2/- each

192540000/-

2.

4665600 Preference Shares of Rs.0.10 (Ten paise) each

466560/-

3.

3369344 Preference each Shares of Rs.10/- each

33693440/-

The Issued, Subscribed and Paid-up Equity Share Capital of your Company is Rs.11,74,79,990/- divided into 5,87,39,995 Equity Shares of Rs. 2/- each, fully paid-up.

LIQUIDITY:

We maintain sufficient liquidity to meet our strategic and operational requirements. We understand that liquidity in the Balance Sheet has to balance between earning adequate returns and the need to cover financial and business risks. We are agile and prepared to meet unforeseen business needs, if any.

DIRECTORS AND KEY MANAGERIAL PERSONNEL:

Directors:

The current policy is an appropriate mix of Executive and Non-executive Directors to maintain the independence of the Board, and separate its function of governance and management. On March 31, 2018, the Board consists of 5 members, two of whom are Executive Directors and 3 are Non-executive Directors.

During the year under purview, Managing Director and Whole-time Director were re-appointed vide Shareholder''s Resolution passed at the Annual General Meeting of the Company held on September 23, 2017.

Apart from above, there has been no change in the Board composition during the year under review.

Key Managerial Personnel:

Pursuant to the provisions of Section 203 of the Companies Act, 2013, following persons are Key Managerial Personnel of the Company:

- Mr. Atul H. Mehta - Managing Director

- Mr. Bhavesh H. Mehta - Whole Time Director

- Mr. Sunil Mehta - Chief Financial Officer and

- Mrs. Disha Shah - Company Secretary

There has been no change in the Key Managerial Personnel during the year.

BOARD EVALUATION

The Board of Directors has carried out an annual evaluation of its own performance, Board, Committees and Individual Directors pursuant to the provisions of the Act and the Corporate Governance requirements as prescribed by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015 (SEBI Listing Regulations).

The performance of the Board was evaluated by the Board after seeking inputs from all the Directors on the basis of the criteria such as the Board composition and structure, effectiveness of Board processes, information and functioning, etc.

The performance of the Committees was evaluated by the Board after seeking inputs from the Committee Members on the basis of the criteria such as the composition of Committees, effectiveness of Committee Meetings, etc.

The Board and the Nomination and Remuneration Committee reviewed the performance of the Individual Directors on the basis of the criteria such as the contribution of the Individual Director to the Board and Committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc.

In a separate meeting of Independent Directors, performance of Non-Independent Directors, performance of the Board as a whole and performance of the Chairman was evaluated, taking into account the views of Executive Directors and Non-Executive Directors. The same was discussed at the Board Meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its Committees and Individual Directors was also discussed. Performance evaluation of Independent Directors was done by the entire Board, excluding the Independent Director being evaluated.

BOARD MEETINGS:

The Board met twelve times during this financial year, the details of which are given in Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 and Regulation 17 of SEBI (LODR) Regulations, 2015.

DECLARATION BY INDEPENDENT DIRECTORS:

All the Independent Directors of the Company have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

CORPORATE SOCIAL RESPONSIBILITY:

The brief outline of the Corporate Social Responsibility (CSR) policy of the Company and the initiatives undertaken by the Company on CSR activities during the year is set out at report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. For other details regarding the CSR Committee, please refer Annexure B which forms part of this report. The policy is available on the website of the Company.

ABSTRACT OF THE ANNUAL RETURN:

As provided under Section 92(3) and Section 134 (3) (a) of the Companies Act, 2013, the extract of annual return is given in Form MGT-9, which forms part of this report in Annexure C.

CORPORATE GOVERNANCE:

Report on Corporate Governance duly approved by the Board of Directors in accordance with Listing Regulations, along with a certificate from the Statutory Auditors confirming the compliance is given separately in this Annual Report in Annexure D.

MANAGEMENT DISCUSSION AND ANALYSIS:

A report on Management Discussion and Analysis which includes details on the state of affairs of the Company as required under the Regulation 34(2) (e) of SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015 forms part of the Boards'' Report at Annexure E.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required under the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 is given hereunder:

A. Conservation of energy:

Your Company is primarily engaged in Marketing and Trading activities and has not consumed energy of any significant level and hence no additional investment is required to be made for reduction of energy consumption. However, the Company will continue with its efforts to conserve the energy.

B. Technology absorption:

The Company''s operations do not require significant absorption of technology.

C. Earnings And Outgo in Foreign Exchange:

(Rs.in Lakhs)

Standalone

Consolidated

Particulars

Current Year (in Rs.)

Previous Year (in Rs.)

Current Year (in Rs.)

Previous Year (in Rs.

Foreign Exchange Earnings

13746.16

14777.74

13746.16

14777.74

Foreign Exchange Outgo

13721.26

14742.18

13721.26

14742.18

PREVENTION AND REDRESSAL OF SEXUAL HARRASSEMENT AT WORK PLACE:

The Company has formed a Committee and framed a Policy on Prevention of Sexual Harassment of Women at Work Place and matters connected therewith or incidental thereto covering all the aspects as contained under the ''The Sexual Harassment of Women at Work Place (Prohibition, Prevention and Redressal) Act, 2013''. Your Directors state that during the year under review, no cases were filed pursuant to the Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013.

HUMAN RESOURCES:

Your Company considers people as its biggest assets. It has put concerted efforts in talent management and succession planning practices, strong performance management, learning and training initiatives to ensure that your Company consistently develops inspiring, strong and credible leadership. The Company has a structured induction process for all locations. During the year, your Company has ensured that rewards and recognition are commensurate with performance and that employees have the opportunity to develop and grow.

The enthusiasm and unstinting efforts of employees have enabled the Company to improve productivity across organization.

PERFORMANCE OF EMPLOYEES:

A. The information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

i) Details of the ratio of remuneration of each Director to the median remuneration of the employees for the financial year:

Sr.

No.

Name of the Directors

Designation

Ratio to median remuneration of the employees

1.

Mr. Atul H. Mehta

Chairman and Managing Director

58.37:1

2.

Mr. Bhavesh H. Mehta

Whole-time Director

58.37:1

3.

Mr. Ganesh Shiva Ganesh

Non-Executive & Independent Director

NA

4.

Mrs. Preeti Trivedi

Non-Executive & Independent Director

1.39:1

5.

Mr. Vijay Agarwal

Non-Executive & Independent Director

1.04:1

ii) The percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer, Company Secretary in the financial year:

Sr.

No.

Name of the Directors

Designation

% increase in remuneration

1.

Mr. Atul H. Mehta

Chairman and Managing Director

NIL

2.

Mr. Bhavesh H. Mehta

Whole-time Director

NIL

3.

Mr. Ganesh Shiva Ganesh

Non-Executive & Independent Director

NIL

4.

Mrs. Preeti Trivedi

Non-Executive & Independent Director

NIL

5.

Mr. Vijay Agarwal

Non-Executive & Independent Director

-25.00%*

6.

Mr. Sunil Mehta

Chief Finance Officer

NIL

7.

Ms. Disha Shah

Company Secretary

34.62%

* In the previous financial year, Mr.Vijay Agarwal attended 4 meeting while the financial year 17-18, he attended 3 meetings. Hence there is decrease in remuneration is by 25%.

iii) The percentage increase in the median remuneration of employees in the financial year:

During the year under purview, there has been increase in the number of employees and the class drawing low range salary was more compared to previous year. Because of this, median has come down resulting into decrease in the median remuneration of employees by 5.74%. We would also like to highlight the fact that the overall economy saw downfall in the financial year 2017-18 due to implementation of GST and banking challenges. We also confirm that there was no change in the remuneration of the Directors, KMP other than Company Secretary. The increase was on account of the mutual agreement since her appointment.

iv) The number of permanent employees on the rolls of Company: 862

v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

The median percentage for the salaries of employees other than the managerial personnel decreased by 7.67%. Justification being same as highlighted at point iii above.

vi) It is hereby affirmed that remuneration is as per the remuneration policy of the Company.

B. Details of the every employee of the Company as required pursuant to 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

Name (Age)

Designation, Nature of duties & Date of commencement of Employment

| Qualification /Experience

Gross Remuneration Rs.

! Nature of employment

Relationship

Atul H. Mehta (57)

Bhavesh H. Mehta (45)

Chairman & Managing Director, Specialized in Finance & Strategic Planning (16.06.2000) Whole-time Director, Specialized in Imports & Logistics (18.10.2000)

i MBA - U.S.A | (28)

M.Com | (21)

1,68,00,000/-(w.e.f. 08.09.2017)

1,68,00,000/-(w.e.f. 18.10.2017)

j Contractual | Contractual

Brother of Mr. Bhavesh Mehta, Whole-time Director Brother of Mr. Atul Mehta, Managing Director

Note:

1. Nature of employment is contractual.

2. The above amount does not include provision of gratuity, provident fund and leave encashment.

INTERNAL AUDIT AND INTERNAL FINANCIAL CONTROLS:

The Company has an in-house Internal Audit (IA) function. To maintain its objectivity and independence, the IA function reports to the Chairman of the Audit Committee of the Board. The IA department evaluated the efficacy and adequacy of the internal control system, its compliance with operating systems and policies of the Company and accounting procedures at all locations of the Company.

Additionally, the Board has appointed M/s. Agarwal Desai & Shah, Chartered Accountants (Firm Reg. No. 124850W) as Internal Auditors of the Company in accordance with Section 138 of the Companies Act, 2013 to have financial control checks and ensure adequate transparency.

The Audit Committee of the Board of Directors periodically reviews the audit plans, internal audit reports and adequacy of internal controls.

AUDITORS:

The Company has appointed M/s. Bhogilal C. Shah & Co. having Firm Registration no.101424W, as the Statutory Auditors of the Company who holds the office for a period of 5 consecutive years from the conclusion of 18th Annual General Meeting till the conclusion of 23rd Annual General Meeting of the Company to be held in 2022.

AUDITORS''REPORT,DISCLAIMERANDMANAGEMENT''S REPLY:

There are no qualifications, reservations or adverse remarks made by M/s. Bhogilal C. Shah & Co., Statutory Auditors, in their report for the financial year ended March 31, 2018. Hence, the report is self-explanatory.

SECRETARIAL AUDITOR:

The Board of Directors have appointed Mr. Virendra G. Bhatt, Practicing Company Secretary, Mumbai, to conduct Secretarial Audit for the financial year 2017-18, as required under Section 204 of the Companies Act, 2013 and the rules framed thereunder. The Secretarial Audit Report in form MR-3, for the financial year 2017-18, forms part of this report at Annexure F.

SECRETARIAL AUDITOR''S OBSERVATION AND MANAGEMENT''S REPLY:

Observation

Management''s Reply

The Company has not transferred the shares to IEPF Account and not filed the required forms which is under process.

The Company inadvertently failed to file the form on time. However, it has been filed and complied as per the statutory requirements.

RELATED PARTY:

As a part of its philosophy of adhering to ethical standards, transparency and accountability and in line with the provisions of the Companies Act, 2013 and the Listing Regulations, the Board has adopted a policy on Related Party Transactions which is placed on the Company''s website. All the Related Party Transactions are in ordinary and normal course of business and at arm''s length.

All Related Party Transactions are periodically placed before the Audit Committee and also before the Board for approval. Prior omnibus approval of the Audit Committee is obtained for the transactions which are of a foreseeable and repetitive nature.

The particulars of contracts or arrangements with related parties referred to in Section 188(1) and applicable rules of the Companies Act, 2013 in Form AOC-2 is provided at Annexure G of this report.

LOANS, GUARANTEES & INVESTMENTS:

The particulars of loans, guarantees and investments have been disclosed in the financial statements.

AUDIT COMMITTEE:

The Audit Committee meets regularly to review reports, including significant audit observations and follow-up actions thereon. The Audit Committee also meets the Company''s Statutory Auditors to ascertain their views on financial statements, including the financial reporting system, compliance to accounting policies and procedures.

The details pertaining to Audit Committee and its composition are included in the Corporate Governance Report which forms part of this report.

NOMINATION AND REMUNERATION COMMITTEE:

The Company follows a Policy on Remuneration of Directors and Senior Management Employees. The policy is approved by the Nomination & Remuneration Committee and the Board. The main objective of the said policy is to ensure that the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate the Directors, KMP and Senior Management employees. The Remuneration Policy for the Directors and Senior Management employees is given in the Corporate Governance Report.

STAKEHOLDERS RELATIONSHIP COMMITTEE:

The details pertaining to composition of the Committee is included in the Corporate Governance Report, which forms part of this report. The role of the Committee is explained in detail in the Corporate Governance Report enclosed herewith.

FAMILIARIZATION PROGRAMME:

The Familiarization Programme for Independent Directors aims to provide them an opportunity to familiarize with the Company, its Management and its operations so as to gain a clear understanding of their roles, rights and responsibilities and contribute significantly towards the growth of the Company. They have full opportunity to interact with Senior Management Personnel and are provided all the documents required and sought by them for enabling them to have a good understanding of the Company, its business model and various operations and the industry of which it is a part.

The policy undertaken by the Company in this respect has been disclosed on the website of the Company.

DIRECTORS'' RESPONSIBILITY STATEMENT:

Pursuant to Section 134 (3) (c) and 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm:

i. That in preparation of the Annual Accounts for the year ended March 31, 2018, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

ii. That the Directors had selected such accounting policies and applied consistently and made judgments and estimates that were reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year ended March 31, 2018 and the profits of the Company for the year under review;

iii. That proper and sufficient care has been taken for the maintenance of adequate accounting records for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. That the annual accounts for the year ended March 31, 2018 have been prepared on a ''going concern basis''.

v. That proper internal financial controls were in place and that such internal financial controls are adequate and were operating effectively.

vi. That proper systems to ensure compliance with the provisions of all applicable laws were in place and that such systems were adequate and operating effectively.

INSURANCE & RISK MANAGEMENT:

Business risks exist for any enterprise having national and international exposure. Your Company also faces some such risks, the key ones being - a longer than anticipated delay in economic revival, unfavorable exchange rate fluctuations, emergence of inflationary conditions, rise in counterfeits and look-alikes and any unexpected changes in regulatory framework.

The Company is well aware of these risks and challenges and has put in place mechanisms to ensure that they are managed and mitigated with adequate timely actions.

FIXED DEPOSIT:

During the current financial year, the Company accepted Fixed Deposits from its Members and from Public, in accordance with the provisions of Section 73 and 76, and other applicable provisions of Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.

The details relating to deposits in terms of Rule 8(5)(v) of the Companies (Accounts) Rules, 2014 are given here in under:

Sr.

No.

Particulars

Amount (Rs. in Lakhs)

1.

Deposits accepted during the year from Members and/or Public

833.00

2.

Deposits repaid during the year to Members and/or Public

40.00

3.

Deposits outstanding as at March 31, 2018:

793.00

4.

Deposits remaining unpaid or unclaimed at the end of the year

0

5.

Whether there has been any default in repayment of deposits or payment of interest thereon during the year, and if so, number of such cases and the total amount involved :-

i. At the beginning of the year

NA

ii. Maximum during the year

NA

iii. At the end of the year

NA

6.

Details of deposits which are not in compliance with the requirements of Chapter V of the Companies Act, 2013.

NA

VIGIL MECHANISM / WHISTLE BLOWER POLICY:

The Company promotes ethical behaviour in all its business activities and in line with the best governance practices. For this purpose, a policy has been laid down through which Directors, employees and business associates can report unethical behavior, malpractices, wrongful conduct, fraud, violation of Company''s Code of Conduct without fear of reprisal. The Whistle- Blower Protection Policy aims to:

- Allow and encourage stakeholders to bring to the Management notice concerns about unethical behavior, malpractice, wrongful conduct, actual or suspected fraud or violation of policies.

- Ensure timely and consistent organizational response.

- Build and strengthen a culture of transparency and trust.

- Provide protection against victimization.

The above mechanism has been appropriately communicated within the Company across all levels and has been displayed on the Company''s website.

MATERIAL CHANGES AND COMMITMENTS, IF ANY:

No material changes have took place affecting the financial position of the Company from the date of closure of financial year till the date of signing of this report.

APPRECIATION:

Your Directors are thankful to the Vendors, Customers, Bankers, Business Partners, Central and State Governments together with their departments and the local authorities, Employees for their valuable support and co-operation.

The Directors also wish to express their gratitude to investors for the faith that they continue to repose in the Company.

For and on behalf of the Board of Directors

Compuage Infocom Limited

Sd/-

Atul H. Mehta

Chairman and Managing Director

Place: Mumbai

Date: August 10, 2018

Registered Office:

D-601/602 & G-601/602,

Lotus Corporate Park,

Graham Firth Steel Compound,

Western Express Highway,

Goregaon (East),

Mumbai - 400 063.

Director’s Report