Adtech Systems Limited Annual Report 2015-2016 1 CORPORATE INFORMATION BOARD OF DIRECTORS M.R.Subramonian M.R.Narayanan M.R.Krishnan Managing Director Director Execuve Director N.Suresh K.Manmathan Nair P.K. Anandavally Ammal Independent Director Independent Director Independent Director Company Secretary and Compliance Officer S.Balamurali Chief Financial Officer P Vinaya Chand Audit Commiee Shri. N.Suresh (Chairman) Shri.M.R.Subramonian Smt.P.K.Anandavally Ammal Nominaon & Remuneraon Shri.N.Suresh (Chairman) Commiee Shri.M.R.Narayanan Smt.P.K.Anandavally Ammal Corporate Social Responsilbility Shri.M.R.Narayanan(Chairman) Commiee Shri.M.R.Subramonian Shri.N.Suresh Shareholders Grievance/Share Shri.M.R.Narayanan (Chairman) Transfer Commiee Shri.M.R.Subramonian Shri.N.Suresh Statutory Auditors M.R.RAMACHANDRAN & Co Chartered Accountants 9/1, Lynwood Avenue Mahalingapuram, Chennai-34 Firm Regn. No. 0028735 Bankers HDFC Bank Limited State Bank of India Axis Bank Limited Register & Share Transfer Agents M/s Integrated Enterprises (India) Limited 2 nd Floor, Kences Towers, North Usman Road T.Nagar, Chennai 600 017
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Adtech Systems LimitedAnnual Report 2015-2016
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CORPORATE INFORMATION
BOARD OF DIRECTORS
M.R.Subramonian M.R.Narayanan M.R.KrishnanManaging Director Director Executive Director
N.Suresh K.Manmathan Nair P.K. Anandavally Ammal Independent Director Independent Director Independent Director
Company Secretary and Compliance Officer S.Balamurali
1. ToconsiderandadopttheAuditedBalanceSheetasat31stMarch2016,theStatementofProfitandLossandtheCashFlowStatement for thefinancial yearendedon thatdate,and the reportsof theAuditorsand theBoardofDirectorsthereon.
2. ToappointaDirectorinplaceofShri.M.R.Narayanan(DIN:00044926),whoretiresbyrotationandbeingeligible,offershimself for reappointment.
3. To ratify the appointment of M/s M.R.Ramachandran & Co as Statutory Auditors of the Company and to fix theirremunerationand in this regard to consider and if thoughtfit, topass,withorwithoutmodification(s), the followingresolutionasanOrdinaryResolution.
“RESOLVEDTHATpursuanttotheprovisionsofSection139,142andotherapplicableprovisions,ifany,oftheCompaniesAct,2013andreadwiththeCompanies(AuditandAuditors)Rules,2014,asamendedfromtimetotime,theCompanyhereby ratifies the appointment of M/sM.R Ramachandran& Co, Chartered Accountants (ICAI firm registrationNo002873S),9/1,LynwoodAvenue,Mahalingapuram,Chennai600034asStatutoryAuditorsoftheCompany,toholdofficefrom the conclusion of this Annual GeneralMeeting until the conclusion of the 26th Annual GeneralMeeting of theCompanytobeheldin2017onsuchremunerationasshallbemutuallyagreeduponbetweentheBoardofDirectorsandtheStatutoryAuditors”.
RESOLVEDTHATpursuanttotherecommendationofNominationandRemunerationCommitteeandapprovaloftheBoardandsubjecttotheprovisionsofSection196,197,198,203andotherapplicableprovisions, ifanyoftheCompaniesAct,2013readwithscheduleVandArticle169oftheArticlesofAssociation,theCompanyherebyapprovesthere-appointmentand increase in remunerationof Shri.M.R.Krishnan, ExecutiveDirector of the company for a periodof five years from01.09.2016andthatremunerationbepaidtohimasunder:
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(a) Bywayofmaximummanagerialremuneration,notexceeding5%ofthenetprofitsforeachyearfrom2016-2021 OR
4. Whilemembers holding shares in physical formmaywrite to the Company or to the Share Transfer Registrars M/sIntegrated Enterprises India Ltd, 2ndFloor,KencesTowers,NorthUsmanRoad,T.Nagar,Chennai600017foranychangespertainingtotheiraddressandemailaddress,bankaccountdetails,mandates,nominationsetc,membersholdingsharesinelectronicformmaywritetotheirdepositoryparticipantsforimmediateupdation.
5. Members holding shares in electronic formmay please note that their bank details as furnished by the respectiveDepositoriestotheCompanywillbeconsidered.Foreffectinganychanges,membersmaygiveinstructionstotheirDPs.TCompanywillnotentertainanydirectrequestfromsuchMembersforchange/deletionindetails.Further,instructions,ifany,alreadygivenbytheminrespectofsharesheldinphysicalform,willnotbeautomaticallyapplicabletothedividendpaid on shares held in electronic form.
6. The Register of Members and Share Transfer Books Shall remain closed from16thSeptember 2016 to 30thSeptember 2016 (both days inclusive) .
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7. The amount of dividend declared upto and including for the financial year ended 31st March 2008,remaining unpaid or unclaimed for a period of seven years from the date of transfer to the Unpaid DividendAccount of the Company was transferred to Investor Education and Protection Fund (the Fund) set upby the Government of India and no payments shall be made in respect of any such claims by the Fund. Memberswhohavenotyetencashedtheirdividendwarrant(s)startingfromthefinancialyearended31stMarch2009onwards,arerequestedtomaketheirclaimstotheCompanyaccordingly,withoutanydelay.
II. ThefacilityforvotingthroughballotpapershallbemadeavailableattheAGMandthemembersattendingthemeetingwhohavenot cast their voteby remotee-voting shall beable toexercise their rightat themeetingthroughballotpaper.
III. Thememberswhohavecasttheirvotebyremotee-votingpriortotheAGMmayalsoattendtheAGMbutshallnotbeentitledtocasttheirvoteagain.
IV. Theremotee-votingperiodcommenceson27September,2016(9:00am)andendson29September,2016(5:00pm).Duringthisperiodmembers’oftheCompany,holdingshareseither inphysicalformor indematerializedform,asonthecut-offdateof23rdSeptember2016,maycasttheirvotebyremotee-voting.Theremotee-votingmoduleshallbedisabledbyCDSLforvotingthereafter.Oncethevoteonaresolutioniscastbythemember,themembershallnotbeallowedtochangeitsubsequently
V. Shareholderswhohavealreadyvotedpriortothemeetingdatewouldnotbeentitledtovoteatthemeetingvenue.
a. ForCDSL:16digitsbeneficiaryID,b. ForNSDL:8CharacterDPIDfollowedby8DigitsClientID,c. MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompany.
(iv) Ifyouareholdingshares indematformandhad loggedontowww.evotingindia.com and voted on an earlier votingofanycompany,thenyourexistingpasswordistobeused.
(v) Ifyouareafirsttimeuserfollowthestepsgivenbelow:For Members holding shares in Demat Form and Physical Form
PAN Enteryour10digitalpha-numericPANissuedbyIncomeTaxDepartment(Applicableforbothdematshareholdersaswellasphysicalshareholders)
• Members who have not updated their PAN with the Company/DepositoryParticipantarerequestedtousethefirsttwolettersoftheirnameandthe8digitsofthesequencenumber,mentionedintheaddressslipandalsopastedattheendofthisnoticeatpagenumber12,inthePANfield.
(vii) Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.(viii) Members holding shares in physical form will then directly reach the Company selection screen. However,
(x) ClickontheEVSNfortherelevant<CompanyName>onwhichyouchoosetovote.(xi) On thevotingpage, youwill see “RESOLUTIONDESCRIPTION”andagainst the same theoption“YES/NO” for
(xvii) Shareholders can also cast their vote using CDSL’s mobile app m-Voting available for android based mobiles. The m-Voting app can be downloaded from Google Play Store. Apple and Windows phone users can download the app from the App Store and the Windows Phone Store respectively on or after 30th June 2016. Please follow the instructions as prompted by the mobile app while voting on your mobile.
(xviii) Note for Non – Individual Shareholders and Custodians
• Non-Individualshareholders(i.e.otherthanIndividuals,HUF,NRIetc.)andCustodianarerequiredtologontowww.evotingindia.com and register themselves as Corporates.
(xix) Incaseyouhaveanyqueriesorissuesregardinge-voting,youmayrefertheFrequentlyAskedQuestions(“FAQs”)and e-voting manual available at www.evotingindia.com, under help section or write an email to [email protected]
VII AmembermayparticipateintheAGMevenafterexercisinghisrighttovotethroughremotee-votingbutshallnotbeallowed to vote again at the AGM)
VIII Aperson,whosenameisrecordedintheregisterofmembersorintheregisterofbeneficialownersmaintainedbythedepositoriesasonthecut-offdateonlyshallbeentitledtoavailthefacilityofremotee-votingaswellasvotingattheAGMthroughballotpaper.
IX. Mr.KrishnaPrasadRS,CompanySecretary inPractice (MembershipNoFCS7080)hasbeenappointed for as theScrutinizerforprovidingfacilitytothemembersoftheCompanytoscrutinizethevotingandremotee-votingprocessin a fair and transparent manner.
XI. TheScrutinizershallaftertheconclusionofvotingatthegeneralmeeting,willfirstcountthevotescastatthemeetingandthereafterunblockthevotescastthroughremotee-votinginthepresenceofatleasttwowitnessesnotintheemploymentoftheCompanyandshallmake,notlaterthanthreedaysoftheconclusionoftheAGM),aconsolidatedscrutinizer’sreportofthetotalvotescastinfavouroragainst,ifany,totheChairmanorapersonauthorizedbyhiminwriting,whoshallcountersignthesameanddeclaretheresultofthevotingforthwith.
XII. TheResultsdeclaredalongwiththereportoftheScrutinizershallbeplacedonthewebsiteoftheCompany–www.adtechindia.comandonthewebsiteofCDSLimmediatelyafterthedeclarationofresultbytheChairmanorapersonauthorizedbyhiminwriting.
Explanatory Statement Pursuant to Section 102 of the Companies Act, 2013
It is considered tobe in the interestsof theCompany to reappoint Shri.M.R.SubramonianasManagingDirector sincehedevoteshisentiretimeandattentiontodevelopmentofCompany’sbusiness.UndertheleadershipofShriM.R.SubramonianaspromoterandManagingDirector,theCompanyhasdevelopedtremendouslywithadequateprofitsandwithgoodtrackrecordofDividendPayment. TheNominationandRemunerationCommitteeand theBoardof ofDirectorshaveapprovedtheappointmentandpaymentofremunerationpursuanttotheprovisionsofScheduleVofTheCompaniesAct,2013.itisproposedtoseektheapprovalofMembersforthere-appointmentofShri.M.R.SubramonianasManagingDirectorwiththefollowingremunerationstructure:
Shri.M.R.Subramonian,aged 56 years is the son of Shri,M.N.Ramakrishnan(Late), has a Bachelors Degree in ElectronicsEngineeringandhasmorethan30yearsofprofessionalexperience in theoverallmanagerialandmarketingareas.He isamemberoftheBoardofM/sAPTMicroSolutionsLimited.Heholds556,865sharesrepresenting23.37percentofpaidupsharecapitaloftheCompany.
1.GeneralInformation
NatureofIndustry ElectronicSurveillanceSystems
Date or expected date of commencement of commercial production
In the case of new companies, expected date of commencementofactivitiesasperprojectapprovedbyfinancialinstitutionsappearingintheprospectus. NotApplicable
Under the leadership of Shri. M.R.Subramonian, theCompanygotawardedasunderduringthepast5years1.BestSMEawardfromBusinessTodayin20152.Oneofthebest50retailsProfessionalsinIndiabyETNowand Asia Retail Congress 20133.Managerial Excellence award from Madras Management Association20134.KeralaStatebestproductivityperformanceaward2012-125.Partner of the year Award from Mobotix Germany for2011,2012 and 20136.Invue USA- Oustanding Asia Pacific Performance Award20137.Tyco-SensormaticOutstandingPerformanceAward2013.8.InvuePresidentsclubwinner2007,2008,2010,2011
RemunerationProposedDetails of proposed remuneration are presented in theresolutionandalso in the statementunder Section102ofthe Companies Act, 2013
Comparativeremunerationprofilewithrespecttoindustry,size of the Company, profile of the position andperson(incaseofexpatriatestherelevantdetailswouldbewithrespecttothecountryofhisorigin)
The remuneration is as per Section 197 & 198 of theCompaniesAct,2013,readwithScheduleVandiscomparabletotheremunerationofMDlevelofsimilarsizedcompaniesinthesamefield.
Pecuniary relationship directly or indirectly with theCompany,orrelationshipwiththemanagerialpersonnel, ifany
Besides the remunerationandholdingof23.37percentofshares in the Company, Shri. M.R.Subramonian does nothaveanyotherpecuniaryrelationshipwiththeCompany.HeisalsothepromoteroftheCompanyalongwithhisbrothersMr.M.R.Narayanan, Chairman and Shri.M.R.Krishnan,ExecutiveDirector
None of the Directors and Key Managerial Personnel except ShriM.R.Subramonian as appointee and Shri.M.R.Krishnan,ExecutiveDirectorandShriM.R.Narayanan,DirectorasrelativesareconcernedorinterestedintheResolution.
Item No 5
Shri.M.R.KrishnanwasreappointedastheExecutiveDirectoroftheCompanyinthe20thAnnualGeneralMeeting.Thecurrenttenure of Shri.M.R.Krishnan is upto 31stAugust2016.Section196and197readwithScheduleVoftheCompaniesAct,2013requirespaymentofminimumremunerationincaseoflackorinadequacyofprofitstobeapprovedbytheMembersbywayofSpecialResolutionforaperiodnotexceedingthreeyears.
ItisconsideredtobeintheinterestsoftheCompanytoreappointShri.M.R.KrishnanasExecutiveDirectorsincehedevoteshisentiretimeandattentiontodevelopmentofCompany’sbusiness.UndertheleadershipofShriM.R.KrishnanaspromoterandExecutiveDirector,theCompanyhasdevelopedtremendouslywithadequateprofitsandwithgoodtrackrecordofDividendPayment.TheNominationandRemunerationCommitteeandtheBoardofofDirectorshaveapprovedtheappointmentandpayment of remunerationpursuant to the provisions of ScheduleV of TheCompaniesAct, 2013 . it is proposed to seektheapprovalofMembersforthere-appointmentofShri.M.R.KrishnanasExecutiveDirectorwiththefollowingremunerationstructure:
In the case of new companies, expected date of commencement ofactivitiesasperprojectapprovedbyfinancial institutionsappearing in the prospectus. NotApplicable
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FinancialperformancebasedongivenindicatorsDetails of financial performance of the Company for theyears 2014-15 and 2015-16 are provided in the AnnualReport2016whichaccompaniesthisNotice
Rs.275,000permonthassalary,Onemonthsalaryasbonus,useofCompanyCarwithDriver ,medicalreimbursementof upto one months salary , Leave travel concession asperCompany rules as applicable toother employees,andreimbursementofhouseelectricityandwatercharges.
RecognitionofAwards
Under the leadershipofShri.M.R.Krishnan, theCompanygotawardedasunderduringthepast5years1.BestSMEAwardfromBusinessToday20152.Oneofthebest50retailsProfessionalsinIndiabyETNowand Asia Retail Congress 20133.Managerial Excellence award from Madras Management Association20134.KeralaStatebestproductivityperformanceaward2012-125.Partner of the year Award fromMobotix Germany for2011,2012 and 20136.InvueUSA-Oustanding Asia Pacific Performance Award20137.Tyco-SensormaticOutstandingPerformanceAward2013.8.InvuePresidentsclubwinner2007,2008,2010,2011.
RemunerationProposedDetails of proposed remuneration are presented in theresolutionandalsointhestatementunderSection102ofthe Companies Act, 2013
Comparative remuneration profile with respect to industry,sizeoftheCompany,profileofthepositionandperson(incaseofexpatriates the relevantdetailswouldbewith respect tothecountryofhisorigin)
The remuneration is as per Section 197 & 198 of theCompanies Act, 2013,read with Schedule V and is comparable to the remuneration of MD level of similarsizedcompaniesinthesamefield.
Besidestheremunerationandholdingof21.90percentofshares in the Company, Shri.M.R.Krishnandoes not haveanyotherpecuniaryrelationshipwiththeCompany.He isalsothepromoteroftheCompanyalongwithhisbrothersMr.M.R.Narayanan, Chairman and Shri.M.R.Subramonian,Managing Director.
IIIOtherInformation
Reasonsoflossofinadequateprofits
Duetosizeablefallinexportsduetointensecompetition,theCompany’srevenueandprofitsdeclined.TheCompanyhas also invested in marketing infrastructure and inappointingofmarketingheadsinordertoincreaserevenue.TheCompanyhadalsodiversifiedintofloatingsolarprojectswhichrequiredinitialinvestmentintrialprojects.
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Stepstakenorproposedtobetakenforimprovement
Appointment of marketing personnel will increase therevenue.Stepsarebeingtakentoincreaseexportrevenuebyexploringnewavenues.SolarprojecthasstartedgivingresultswiththeCompanybeingawardedwithaRs.9croreorderfromKeralaStateElectricityBoard.
Expected increase in productivity and profits inmeasurableterms
The aforementioned steps taken/to be taken by theCompany are expected to improve the Company’sperformanceandprofitabilityinfuture.
None of the Directors and Key Managerial Personnel except ShriM.R.Krishnan as appointee and Shri.M.R.Subramonian,ManagingDirectorandShriM.R.Narayanan,DirectorasrelativesareconcernedorinterestedintheResolution
TheRetailDivisionexperiencednegativegrowthmainlyduetosharpdropinexportswhichisduetolowcostgreymarketsubstitutesbeingavailable foroverseascustomers. InlandRetaildivisionsales remainedmoreor lessstagnant duetosluggishgrowthinthebrickandmortarstoresunderlifestyle,fashionandconsumerelectronicsegments.Weexpectthesituationtoimproveinthecomingyears.Earningspershare(EPS)wasRs.12.69persharefortheyearunderreviewasagainstRs.27.04inthepreviousyear.NomaterialchangesandcommitmentshaveoccurredafterthecloseoftheyeartillthedateofthisReport,whichaffectthefinancialpositionoftheCompany.FutureoutlookfortheCompanyispositiveonaccountofthevisionofyourCompanytocontinueandstrengthengrowthincomingyears.TheCompany tried to explore large projects by forming separate anddedicated marketing team in theCommercialIndustrial Division which did not meet with desired success.DiversificationintofloatingsolarprojectshasstartedyieldinggoodsresultswiththeCompanybaggingtheprestigiousworkorderfromKeralaStateElectricityBoardfordesign,construction,installation,commissioningandhandoverof500KWFloatingSolarPowerProjectinBanasurasagarDam,Wayanad,Kerala.WorkisgoinginfullswinginthisprojectandtheCompanyexpectsmoreorderstobereceivedinthisdivision.DIVIDENDTheCompanyhas,duringthefinancialyear2015-16,paidaninterimdividendofRs.2.50pershare(ie25percentdividend).This has resulted in a cashoutflowofRs.59.57 lakhs towardsdividendpayment andRs.12.13 lakhs towardsDividendDistributionTax.YourDirectorsrecommendtoratifythisinterimdividendasthefinaldividendfortheFY2015-16.
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As on 31stMarch2016,anamountofRs.521,915/-islyingintheUnpaidDividendAccountwithStateBankofIndiatowardsthedividenddeclaredandpaidbutnotclaimedforthefinancialyearsfrom2008-09to2014-15asperdetailsgiveninthenotesonAccount .ThoseShareholderswhohavenotencashedtheirdividendwarrantsare requested to immediatelyapproachthecorporateofficeoftheCompanyforrevalidation/reissueofthedividendwarrantsafterwhichthewarrantsmaybepresentedforpayment.Theunclaimeddividenduptoandincludingtheyear2007-08hasbeentransferredtotheInvestorEducationandProtectionFund(theFund)setupbytheGovernmentofIndiaandnopaymentsshallbemadeinrespectofanysuchclaimsbytheFund.TheDividendpayoutfortheyearhasbeenformulatedkeepinginmindtheCompany’sabilitytopaysustainabledividendsvisavistherequirementoffundsforrunningbusinessandthelongtermobjectiveswhicharetobemetbyinternalcashaccruals.
Amounts transferred to ReservesThe Board of Directors have decided to transfer an amount of Rs. 30.40 lakhs to General Reserve.Changes in Share Capital and ReservesDuringtheyearunderreview,therehasbeennochange inthepaidupsharecapitaloftheCompany.TheCapitalandReservesoftheCompanyason31st March 2016 stood at Rs. 3084.12 lakhs as against that of Rs. 2853.44 lakhs as on the correspondingdayofthepreviousyearGENERALYourDirectorsalsostatethatnodisclosureorreporting is required inrespectof the following itemsas therewerenotransactionsontheseitemsduringtheyearunderreview1. DisclosureregardingIssueofEquityShareswithdifferentialrightsasstatedinRule4(4)ofCompanies(ShareCapital
andDebentureRules,2014)2. DetailsrelatingtodepositscoveredunderChapterVoftheCompaniesAct,20133. Disclosure regarding issue of Employee Stock Options as stated in Rule 12(9) of Companies (Share Capital and
subsidiaries,sincetheCompanydoesnothaveanysubsidiary.6. No significantormaterial orderwhich impact thegoing concern status andCompany’soperations in futurewere
CORPORATE GOVERNANCEProvisionsinthelistingagreementrelatingtoreportonCorporateGovernancearenotmandatorytotheCompanysince,as on 31stMarch2016theCompanyisnotlistedinanyrecognisedstockexchange.However,keepinginviewthattheCompany isplanningtoapply for listing,detailedreportonCorporateGovernancealongwithcertificateonCorporateGovernancefromStatutoryAuditorsisformingpartofthisReport.MANAGEMENT DISCUSSION AND ANALYSIS REPORT (MDA)TheManagementDiscussionandAnalysisReportfortheyearunderreviewisformingpartofthisReport.INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACYThedetails in respectof internal control systemsand theiradequacyare included in theManagementDiscussionandAnalysisReport,whichformspartofthisreport.DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE(PREVENTION,PROHIBITION AND REDRESSAL) ACT, 2013Your Company has 07women employees in various cadres as on 31stMarch 2016. Your Company has zero tolerancetowardssexualharassmentattheworkplace.TheCompanyhasconstitutedanInternalComplaintCommitteeinlinewiththerequirementsofSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013.YourDirectorsfurtherstatethatduringtheyearunderreview,therewerenocasesfiledpursuanttotheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013
(a) InthepreparationofannualaccountsfortheyearendedMarch31,2016,theapplicableaccountingstandardsreadwith requirements set out under Schedule III to the Companies Act, 2013, have been followed and there are nomaterialdeparturesfromthesame;TheDirectorshaveselectedsuchaccountingpoliciesandhaveappliedthemconsistentlyandmadejudgementsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyasonMarch31,2016andoftheprofitoftheCompanyfortheyearendedonthatdate;
suchsystemsareadequateandoperatingeffectively.Details on Board Meetings held during the year under review
DuringFinancialyear2015-16,5meetingsonBoardofDirectorswereheldonthefollowingdates30thMay,2015,13th August 2015, 14thNovember2015,12thFebruary2016and18March2016.AttendanceofDirectorsateachmeetingofBoardofDirectorsareasfollows
DateofMeeting>Name of Director
30May2015
13 Aug2015
14 Nov2015
12Feb2016
18 March 2016
TotalNumberofMeetingsAttended
M.R.Subramonian Yes Yes Yes Yes Yes 5M.R.Narayanan Yes Yes No Yes Yes 4M.R.Krishnan No Yes No No No 1N.Suresh No Yes Yes Yes Yes 4K.Manmathan Nair Yes Yes Yes No No 3P.K.AnandavallyAmmal No Yes No Yes Yes 3
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
Allcontracts/arrangements/transactionswithrelatedpartiesenteredintobytheCompanyduringthefinancialyearwere in theordinarycourseofbusiness andareonarm’s length.During theyear, theCompanyhadnotenteredintoanycontract/arrangement/transactionwithrelatedpartieswhichcouldbeconsideredmaterial.Allrelatedpartytransactionswereat arms lengthand in theordinary courseofbusiness and conforming to the requirementsofCompaniesAct,2013.OmnibusapprovalistakenfromtheBoardofDirectorsmeetingforapprovaloftransactionswhatareofarepetitivenature.FormAOC-2asrequiredunderSection134(3)(h)oftheCompaniesAct,2013,readwithrule 8(2) of the Companies (Accounts) Rules, 2014 is enclosed as Annexure -C
PARTICULARS OF LOAN, GUARANTEE AND INVESTMENTS UNDER SECTION 186TheCompanyhasmadean intercorporatedepositwithanonbankingfinancecompanyvizM/sMuthootCapitalServices Limited for an amount of Rs. 140.85 lakhs as an investment for a period of 3 months at a rate of interest ofninepercentperannum,underSection186oftheCompaniesAct,2013.TheinvestmentismadeintheordinarycourseofbusinesswiththeviewtoinvestingsurplusfundsoftheCompanytogetthemaximumreturns.Otherthantheabove,theCompanyhasnotgivenanyloans,guaranteesorinvestmentsunderSection186toanypartyduringthe period under review.
CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGOThedetailsofEnergy,Technology,Absorption,ForeignExchangeEarningsandOutgoareasunder:
A. CONSERVATION OF ENERGY ThebusinessoftheCompanyisnotpowerintensive,beinganelectronicequipmentintegrationunit.Eventhen,the
B. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT TheCompanyhasefficientR&Ddepartmentwhichcloselyobservesandsuggestscosteffectivechangesincomponents
forintegrationofAccessControlSystems.C. FOREIGN EXCHANGE EARNINGS AND OUTGO.
i.EarningsinForeignCurrency
Head of Earnings 2015-16 in Rs Lakhs 2014-15 in Rs Lakhs
Export Sales 1049.33 2940.09Sales Incentives on Direct orders placed onoverseas principals 48.87 137.30
ii.ExpenditureinForeignCurrency
Head of Expenditure 2014-15 in Rs Lakhs 2014-15 in Rs Lakhs
Foreign Travel Expenses 22.19 20.74
Import Purchases 667.17 549.16
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURESIntermsoftheprovisionsofSection197(12)oftheCompaniesAct,2013readwithRule5(2)and5(3)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,therearenoemployeesoftheCompanydrawingremunerationinexcessofthelimitssetoutinthesaidrules.
By having transparent policies and systemof reporting firmly in place, the elements of risks are identified at earlierstageswhichenablestheOrganisationtocontroltheeffects.RiskmanagementcommitteeisfullyinsyncwiththeAuditCommitteeandwiththeInternalControlandInternalAuditteamswiththeaimofearlyidentificationofrisks.TheBoardbelieves that effective control of internal activities andprocedureswillmitigate the chancesof risks fromwithin theorganisationwhichisachievedbylayingofproceduresandcodesofconductandbyconstantinteractionwithemployeesandotherstakeholdersoftheCompany.
VIGIL MECHANISM/WHISTLE BLOWER POLICY FOR DIRECTORS AND EMPLOYEES
TheCompanyiscommittedtothehigheststandardsofethical,moralandlegalconductofbusinessoperationsandinordertomaintainthesestandards,theCompanyencouragesitsemployeeswhohavegenuineconcernsaboutsuspectedmisconducttocomeforwardandexpressthoseconcernswithoutfearofpunishmentorunfairtreatment.TheCompanyhasapropervigilmechanismandwhistleblowerpolicyinplacepursuanttoSection177(9)and177(10)oftheCompaniesAct,2013andasperRegulation4(2)(d) (iv)and34(3) readwithPara10ofpartCofScheduleVof the SEBI (ListingObligations andDisclosure Requirements) Regulations, 2015. Themechanism also provides for adequate safeguardsagainst victimisationofDirectorsandemployeeswhoavail themechanismandalsoprovides fordirectaccess to theChairmanof theAudit Committee in special cases. The said policy is available in thewebsiteof theCompanywww.adtechindia.com
LISTING WITH STOCK EXCHANGES
SharesoftheCompanywerelistedintheregionalstockexchangesofMadrasStockExchange,theCochinStockExchangeLimitedandtheAhmedabadStockExchangeAssociationLimitedwhichwerecloseddownpursuantordersissuedbytheSecuritiesandExchangeBoardofIndia(SEBI).SharesoftheCompanyaremovedtothedisseminationboardofNationalStockExchange (NSE). TheCompany is in theprocessof listing its shares in StockExchangewhichmeets thecriteriaprescribedbySEBIandhascommencedsteps.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordancewith the provisions of the CompaniesAct, 2013 and theArticles of Associationof the Company, Shri.M.R.Narayanan,Director(DIN00044926) oftheCompany,retiresbyrotationattheensuingAnnualGeneralMeetingandbeingeligiblehaveofferedhimselfforre-appointment.YourBoardofDirectorsrecommendthere-appointmentofShri.M.R.NarayananasaDirectoroftheCompany.
AlltheDirectorshaverichexperienceandspecializedknowledgeinvariousareasofrelevancetotheCompany.TheCompany is immenselybenefitedby the rangeofexperienceand skills that theDirectorsbring to theBoard.ThecompositionoftheBoardisaspertheCompaniesAct,2013andtheSEBI(ListingobligationandDisclosureRegulation)Regulation,2015.
CHANGES IN DIRECTORS AND KEY MANAGERIAL PERSONNEL DURING THE YEAR 2015-16
a. Diversityisensuredthroughconsiderationofanumberoffactorsincludingbutnotlimitedtoskills,specializationand industryexperience. Factorsbasedon thebusinessmodel and specificneeds fromtime totimearealsoconsidered.
b. TheNominationandRemunerationCommitteeshalldrivetheprocessforBoardappointmentandforidentifyingandnominating,forapprovaloftheBoard,candidatesforappointmenttotheBoard
c. Benefitsofexperience/knowledgeintheareasrelevanttotheCompanycontinuetoinfluencesuccessionplanningandcontinuetobethekeycriteriaforthesearchandnominationofDirectorstotheBoard
d. Boardappointmentsarepurelybasedonmerit,havingdueregardtoforthebenefitsofdiversityontheBoard.
NOMINATION AND REMUNERATION COMMITTEE AND POLICIES
TheBoardhadconstitutedaNominationandRemunerationCommitteeon14th August 2014 pursuant to the provisions ofSection178oftheCompaniesAct,2013andtheListingAgreement.
Shri.M.R.Narayanan MemberSmt.P.K.AnandavallyAmmal Member
Pursuant to theprovisionsof Section178and134 (3(e)andRule8 (4)of theCompanies (Accounts)Rules,2014,CompaniesAct,2013andtheSEBI(ListingobligationandDisclosureRegulation)Regulation,2015,theCommitteewasconstitutedwiththefollowingtermsofreference.
a. Formulationof criteria for determiningqualifications, positive attributes and independenceof aDirector andrecommendto theBoardapolicy, relating to remunerationofDirectors,KeyManagerialPersonnelandotheremployees.
b. FormulationofcriteriaforevaluationofDirectors,Chairman,ManagingDirectorandExecutiveDirector,BoardasawholeandvariousCommitteesoftheBoard.BasedontherecommendationsoftheCommittee,thesaidPolicyonNominationandRemunerationandEvaluationofDirectorswasadoptedbytheBoard.
c. IdentifyingpersonswhoarequalifiedtobecomeDirectorsandwhomaybeappointed inSeniorManagementpositionsinaccordancewiththecriterialaiddown.
TheCommitteehasadopted the followingcriteria for selectionofMemberson theBoardofDirectorsof theCompanyandalsocandidateseligibletobeappointedintheSeniorManagementoftheCompany
The Board andNomination and Remuneration Committee reviewed the performance of the individual Directorsinteralia,onthebasisofunderstandingandknowledgeofthemarketinwhichtheCompanyisoperating,abilitytoappreciatetheworkingoftheCompanyandthechallengesitfaces,attendancetomeetings,extendofparticipationandinvolvementinthemeetingsandabilitytoconveyone’sviewsandflexibilitytoworkwithothers.TheperformanceoftheCommitteeswasevaluatedbythebasedonthecompositionoftheCommittees,effectivenessoftheCommitteemeetingswithrespecttothetermsofreferenceandconductofthemeetingsandtheproceduresfollowed.
Committee takes into consideration the performance of the Company, the ability to lead the team, pastremuneration, the comparative remunerationprofile in the industry subject to the condition thatoverallremunerationshallbeinaccordanceandwithinthelimitsstipulatedundertheCompaniesAct,2013
NameoftheMembersShri.N.Suresh ChairmanShri.M.R.Subramonian MemberSmtP.K.AnandavallyAmmal Member
TheAuditcommitteeconsistsof twoNon-Executive IndependentDirectors,oneofwhom is theChairman.All themembersoftheCommitteepossessesaccountingorrelatedfinancialmanagementexpertise.TheCommitteemetfivetimesduringthefinancialyear2015-16on30thMay2015,13th August 2015, 14thNovember2015,12thFebruary2016andon18March2016,inwhichmeetings,allthememberswerepresent.
1. Therecommendationforappointment,remunerationandtermsofappointmentofauditorsoftheCompany;2. Review and monitor the auditor’s independence and performance, and effectiveness of audit process and
TheCompanyhasinplaceaCodeofConductintendedtofocustheBoardandSeniorManagementonareasofethicalrisk, provide guidance to Directors and Senior Management to help them recognize and deal with ethical issues, provide mechanisms to report unethical conduct.
TheCompanyhasalso inplaceaCodeofConduct forPreventionof InsiderTrading for itsdesignatedPersons, incompliancewiththeSEBI(ProhibitionofInsiderTrading)Regulations,1992.Thecodeadvisesthemontheproceduresto be followed and disclosures to bemade,while dealing in shares of the Company and cautioning themof theconsequencesofviolations.TheCodeofConductforDirectorsandSeniorManagementisplacedinthewebsiteoftheCompany.However,sincethecompanyisnotlistedinNSEorBSE,thereisnotradinginsharesoftheCompany.
STATUTORY AUDITORS
TheAuditorsoftheCompanyM/sM.R.RamachandranandCo,CharteredAccountants,wereappointedasStatutoryAuditorsoftheCompanyduring23rd AGM held on 24thSeptember2014foraperiodofthreeyears.AsperprovisionsofSection139oftheCompaniesAct,2013,theappointmentneedtoberatifiedateachAGMduringtheirtenureandyourDirectorsrecommendratificationoftheappointmentofStatutoryAuditorsforthefinancialyear2016-17intheensuing AGM.
Secretarial Auditors Report for thefinancial year 2015-16 as providedbyM/s KrishnaPrasadR.S&Co, CompanySecretaries,T.C 12/1233, LawCollege Junction, Vanchiyoor PO,Near PMG, Trivandrum695 035 is annexed to thisreport.TherearenoadversecommentsorqualificationsmentionedintheSecretarialAuditorsReportexceptonthedelayof53daysintransferringanamountofRs.18400totheInvestorsEducationandProtectionFund(IEPF).Thedelaywasexplainedasduetobankreconciliationproblemandcorrespondingdelayinpreparingthelistofunclaimedshareholders.
DetailsofremunerationandotherparticularsrequiredunderSection197(12)oftheCompaniesActreadwithrelevantrules are given as Annexure III
CORPORATE SOCIAL RESPONSIBILITY (CSR)
YourCompanyhasalwaysbelievedinSocialResponsibilityandhasbeensupportingthecauseinareasonablemanner.TheCompanyhastakenupvariousactivitiesinlinewiththebusinessandrequirementsofthesocietyinthelocality.ThebriefoutlineoftheCSRPolicyoftheCompanyandtheinitiativesundertakenbytheCompanyonCSRactivitiesduringtheyeararesetoutinAnnexureEtothisreportintheformatprescribedintheCompanies(Accounts)Rules,2014.ThepolicyisavailableinthewebsiteoftheCompany.ThecompositionandotherdetailsoftheCSRCommitteeis detailed here under
NameoftheMembers
Shri.M.R.Narayanan Chairman
Shri.M.R.Subramonian Member
Shri.N.Suresh Member
ReasonfortheCompanynotbeingabletospend2percentofthenetprofitsforCSRactivities.PursuanttoprovisionsofSection135oftheCompaniesAct,theCompanyhastospendamountof2percentoftheaveragenetprofitsoftheCompanyinthepreceding3yearscalculatedinaccordancewiththeprovisionsofSection198onCSRactivities.Accordingly,theamounttobespentduringthefinancialyear2015-16wasRs.18,71,450.InorderforthebenefitofthelocalityinwhoseareatheCompanyfunctionsthroughitscorporateoffice,theCompanyassociatedwith the residential association in the area andmaintained the children’s park andbus stopswhich itconstructedin2014-15.Intheyearunderreview,theCompanyhasassociatedwiththeresidentialassociationandconstructedapublicroadbyclosingofanopendrainagewhichwasalongpendingrequirementoftheresidentsinthatarea.Hence,insteadoftherequiredamounttobespendRs.18,71,450theCompanyspendRs.18.35,000.TheshortfallinspendingofallottedCSRamountisduetostrictimplementationofcostcontrolmeasuresintheproject.DetailedreportonCSRpolicyoftheCompanyandtheactivities/projectsundertakenareprovidedinAnnexureE.
ACKNOWLEDGEMENTS
TheDirectorssincerelyacknowledgethecontributionandsupportfromCustomers,Shareholders,Bankers,Vendors,Business Associates and various Government as well as Regulatory Agencies for their valuable support for theCompany’sgrowth.YourDirectorsalsowishtoplaceonrecordtheirappreciationofthecontributionbytheemployeeswhosededication,hardworkandcommitmentenablestheCompanytosustaingrowth.
DECLARATION REGARDING RECEIPT OF CERTIFICATE OF INDEPENDENCE FROM ALL INDEPENDENT DIRECTORS
Iherebyconfirmthat,theCompanyhasreceivedfromalltheIndependentDirectorsnamelyShri.N.Suresh,Shri.K.ManmathanNair and Smt. P.K.Anandavally Ammal, a certificate stating their independence as required under Section 149(6) of theCompanies Act, 2013.
I. REGISTRATION AND OTHER DETAILS:i) CorporateIdentityNumber(CIN) : L33111TN1990PLC018678ii) RegistrationDate : 05/02/1990iii) Name of the Company : ADTECHSYSTEMSLIMITEDiv) Category/Sub-Category oftheCompany : LimitedByshares/IndianNonGovernmentCompanyv) Addressoftheregisteredoffice : 2/796,FirstFloor,AWing,SakshiTowers First Main Road, Kazura Gardens Neelankarai, Chennai 600 041 Tamil Nadu vi) Whether listedcompany : Currentlyunlisted vii) Name, Address and Contact details of Registrar and Transfer Agent, if any :M/sIntegratedEnterprises(India)Limited 2nd Floor, Kences Towers, North Usman Road, T Nagar, Chennai - 600 017
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANYAllthebusinessactivitiescontributing 10%ormoreofthetotalturnoverofthecompanyshallbestated:-
Sl. No. Name and Descriptionof main products / services
(iii) Change in Promoters’ Shareholding – 38530sharesweregiftedtoapersoninthepromotergroupbycloserelativewhichrepresents1.62percentofthepaidupcapitaloftheCompany.Therewasalsoaninterse-purchaseof10095sharesapersoninthepromotergroupfromarelativewhichrepresents0.44percentofthepaidupcapitaloftheCompany.Therewerenopurchaseorsaleofsharesfrom/tooutsidethepromotergroup/relatives.
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(iv) Shareholding Pattern of top Ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
Sl. No. Shareholding at the beginningoftheyear
CumulativeShareholding during the year
For Each of the Top 10Shareholders
No. of shares %oftotal shares of thecompany
No. of shares %oftotal shares of the company
1 TopsSecurityLimited 350000 14.69 350000 14.692 Small Industries Development Bank of India 100000 4.20 0 03 Muthoot Exim Private Limited Nil 0 100000 4.20
4 GayathriRamesh 38530 1.62 0 0
5 Dhanlakshmi Bank Limited 20000 0.84 20000 0.84
6 Vijayakumar 16675 0.70 16675 0.70
7 Kunchitham M S 11510 0.48 11510 0.48
8 VinayaChandP 9250 0.39 9250 0.39
9 Lakshmi Viswanathan 8995 0.38 0 010 Chandrahasan K C 8325 0.35 8325 0.3511 Thomas Alocious Fernandez 8325 0.35 8325 0.3512 Thomas John Muthoot 8300 0.35 8300 0.3513 Ravindran.T 8000 0.34 8000 0.34
(v) Shareholding of Directors and Key Managerial Personnel:
Sl. no Shareholding at the beginningoftheyear
CumulativeShareholding during the year
For each of the Directors and KMP No. of shares %oftotal shares ofthecompany No. of shares %oftotalshares
of the company
At the beginningof the year1. M.R.Subramonian2. M.R.Krishnan3. M.R.Narayanan4. S.Balamurali5. VinayaChandP
556865521915447865
10009250
23.3721.9018.800.040.39
556865521915447865
10009250
23.3721.9018.800.040.39
Date wise Increase / Decrease in Share holding during theyearspecifyingthe reasons for increase / decrease (e.g. allotment / transfer / bonus/sweatequityetc):
DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
(i)The ratio of remuneration of Managing Director/Executive Directorto themedian remunerationof the employees of the Company for thefinancialyearended31st March 2016 13.10
(ii)TheratioofremunerationofNonExecutiveNonIndependentDirectortothemedianremunerationoftheemployeesoftheCompanyforthefinancialyearended31st March 2016 2.34
There is no increase in salaries of employeesotherthanmanagerialpersonnel and 2.75 percent increase in salaries of managerial personnelduringtheyearwhichisjustifiableastobeinlinewiththeindustrial standards.
Thepercentageof increase inremunerationofManagingDirector,Director, CompanySecretaryandChiefFinancialOfficerduringthefinancialyear2015-16andthecomparisonofremunerationofeachKMPagainsttheperformanceoftheCompanyare as under
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
1. A brief outline of the Company’s CSR Policy, including overview of projects or programmes proposed to be undertaken and a reference to the weblink to the CSR policy and projects or programs
MainobjectiveofthecompanyistoundertakethesocialactivitiesthatfocusinprovidingpositivecontributiontowardsthesocietyasspecifiedinScheduleVII(amendedfromtimetotime)andalsoasperSection135oftheCompaniesAct,2013andsuchactivitieswillbecarrieddown in India.Thecompany isalsocommittedtotheTriplebottomgoalsof thecompany i.e,Planet,PeopleandProfitandthecompany’svisionisincreatingJustandFairsociety.
environmental, transparent and ethical behavioural practices which contributes towards the economical and sustainabledevelopmentwithinthecompany,corporateworldandsocietyasawhole.
B. ENVIRONMENTi.Buildingofparks,gardens,roads,closeddrainagesystemsetcii.Precautionarymeasurewithrespectinreducingpollutions.IiiSocialsecuritybyprovisionofsurveillanceinlocalitiesiv. Green Belt developmentv.Precautionarymeasurestakenforanimals
C. WATER SUPPLY :i.Diggingorrenovationofwells;ii.InstructionswithregardtousageofDrinkingwateriii.Promotingrainwaterharvestingschemes;
D. HEALTH RELATED ACTIVITIES:i.Blooddonationscampsii.Diabeticdetectionandcampsforthesameiii.Familywelfareactivitiesiv.AwarenessregardingNutritionandDietforChildren
E. SPORTS AND CULTURES ACTIVITIES:i.PromotionsforStatelevelteamsii.DevelopmentofParkswithregardtoconstruction/repairing/extendingtheinfrastructurefacilitiesiii.ProvidingsportsmaterialsforFootball,Volleyball,Hockeysticksetc.totheyoungandtalentedvillagers
Weblinkhttp://www.adtechindia.com//
2. Composition of the CSR CommitteeNameoftheMembers
MANAGEMENT’S RESPONSIBILITY ON FOR THE FINANCIAL STATEMENTS
TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationandpresentationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsof theCompany inaccordancewith theAcountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsof theCompanyand forpreventinganddetecting fraudsandother irregularities;selectionandapplicationof appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design,implementationandmaintenanceofadequatefinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthat give a true and fair view and are free from material misstatement, whether due to fraud or error.
Anaudit involvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosures inthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgivesatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionofwhethertheCompanyhasinplaceanadequateinternalfinancialcontrolsystemoverfinancialreporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness ofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
a. wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofouraudit;
b. inouropinionproperbooksofaccountasrequiredbylawhavebeenkeptby the Company so far as it appearsfromourexaminationofthosebooks;
c. theBalanceSheet,theStatementofProfitandLossAccountandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount;
d. inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. onthebasisofwrittenrepresentationsreceivedfromthedirectorsason31stMarch2016takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31stMarch2016frombeingappointedasadirectorintermsofSection164(2)oftheAct.
f. WithrespecttotheadequacyofinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin“AnnexureB”.
g. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:
i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsfinancialstatements-ReferNote(r)(b)tothefinancialstatements.
ii. TheCompanydidnothaveanylong-termcontractsincludingderivativecontractforwhichtherewereanymaterialforeseeablelosses.
iii Therehasbeennodelayintransferringamounts,requiretobetransferredtotheotherthanadelayof53daysintransferringanamountofRs.18400/-,beingtheunpaiddividendfor2007-08whichwasexplainedtousasduetodelayingettingthestatementsreconciledwiththatoftheUnpaidDividendaccountwiththeBank,therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundsbytheCompany.
Referred to in paragraph 1 under the heading “Report on Other Legal & Regulatory Requirement” of the ourreport of even date to the financial statements of the company for the year ended 31st March, 2016.
(b)Asexplainedtous,allthefixedassetshavenotbeenphysicallyverifiedbythemanagementduringtheyearbutthereisaregularprogrammeofverificationoffixedassetsinaperiodicalmanner,whichinouropinionisreasonable,havingregard to thesizeof theCompanyandnatureof itsassets.Nomaterialdiscrepancieswerenoticedonsuchphysicalverification.
(c)On thebasisofourexaminationof records, thetitledeedsof immovablepropertiesareheld in thenameof theCompany.
4. In our opinion and according to the information and explanations given to us, the Company has compliedwith theprovisionsofSection185and186oftheCompaniesAct,2013,asapplicable,inrespectofloans,investments,guaranteesandsecurity.
(a)Accordingtotheinformationandexplanationsgiventousandonthebasisofexaminationofbooksofaccountandrecordsofthecompany,undisputedstatutoryduesincludingProvidentFund,Employees’StateInsurance,Income-tax,Sales-tax,WealthTax,ServiceTax,DutyofCustoms,DutyofExciseDuty,ValueAddedTaxcesstotheextentapplicableandanyotherstatutorydueshavegenerallybeenregularlydepositedwiththeappropriateauthorities.Accordingtotheinformationandexplanationsgiventoustherewerenoundisputedoutstandingstatutoryduesason31st of March, 2016 foraperiodofmorethansixmonthsfromthedatetheybecamepayable.
(b)Accordingtotheinformationandexplanationsgiventous,thereisnoamountspayableinrespectofincometax,wealthtax,servicetax,salestax,customsdutyandexcisedutywhichhavenotbeendepositedonaccountofanydisputesas on 31st March 2016 except the following.
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Name of theStatute
Nature of Dues and financial year towhich it pertains
Forum where dispute is pending Amount involved S e c u r i t yDeposit made
14. Baseduponthetheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement,thecompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesfullyorpartlyconvertibledebenturesduring the year under review.Accordingly, theprovisionsof clause3(xiv) of the theOrder arenot applicable to theCompany.
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15. Based upon the audit procedures performed and the information and explanations given by themanagement, thecompanyhasnotenteredintoanynon-cashtransactionswithdirectorsorpersonsconnectedwiththem.Accordingly,theprovisionsofclause3(xv)oftheOrderarenotapplicabletotheCompany.
OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.Weconductedouraudit inaccordancewiththeGuidanceNoteonAuditof InternalFinancialControlsoverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedunderSection143(10)of theCompaniesAct, 2013, to theextent applicable to anaudit of internalfinancial controls, bothapplicable toanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwereestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialaspects.
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31st MARCH 2016
To,
TheMembersADTECHSYSTEMSLIMITED2/796, Kazura GardensFirst Main Road, Second Floor, Sakshi TowersNeelankarai, ChennaiTamil Nadu 600041
IhaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyM/sAdtechSystems Limited (hereinafter called ‘the company’). SecretarialAuditwas conducted inamannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.
During theperiodunder review theCompanyhas compliedwith theprovisionsof theAct,Rules,Regulations,Guidelines,Standards,etc.mentionedabove.However,theCompanyhastransferredanamountofRs.18400lyingintheunpaiddividendaccounttotheInvestorEducationandProtectionFund(dividenddeclaredforFY2007-08)withadelayof53daysfromtheduedate
I further report thatThe Board of Directors of the Company is duly constitutedwith proper balance of Executive Directors, Non-Executive
Directorsand IndependentDirectors.Thechanges in thecompositionof theBoardofDirectors that tookplaceduring theperiod under review were carried out in compliance with the provisions of the Act.
2 Non- Current Liabilities(a) Long Term Borrowings 5 0.00 0.00(b)DeferredTaxLiabilities(Net) 6 3,632,632.70 35,95,746.70
4 Current Liabilities(a) Short Term Borrowings 7 0.00 0.00(b)TradePayables 8 38,125,658.21 1,148,44,254.68(c)OtherCurrentLiabilities 9 7,179,511.29 67,37,366.73(d) Short term Provisions 10 1,14,800,288.00 1,087,57,199.00
ADTECHSYSTEMSLIMITED2/796, First Floor, Sakshi Towers, First Main Road, Kazura Gardens, Neelankarai, Chennai 600 041
Statement of Profit and Loss for the year ending 31st March 2016 Note No. For the year For the year
ended 31-Mar-16 ended 31-Mar-15
Rs. Rs.
RevenueFromOperations 1 4,30,079,507.08 6,341,36,766.37Other Income 2 9,492,428.91 1,21,88,600.08
Total Revenue (1+2) 4,39,571,935.99 6,463,25,366.45Expenses (a) Cost of material consumed 3 2,72,696,600.51 4,947,21,895.75(b)ChangeinInventoriesof 4 40,108,81.80 -231,91,702.50finishedgoods,workin progress, stock in trade(c)EmployeeBenefitExpenses 5 42,787,810.00 3,97,50,045.81 (d) Finance Cost 6 1,99,221.54 1,45,759.36(e)Depreciationandamortisationexpense 1,010,490.05 14,69,648.53 (f) Other expenses 7 37,506,690.74 3,96,92,574.41
Total Expenses 3,94,309,694.64 5,525,88,221.36Profit/(Loss ) before exceptionaland extraordinary items and Tax (3-4) 45,262,241.35 9,37,37,145.09ExceptionalItemsProfit/(Loss ) before extra ordinary 45,262,241.35 9,37,37,145.09items and Tax (5+-6)ExtraOrdinaryitems 0.00 28,048.00Prior Period Income 0.00 23,62,516.98Profit/(Loss) before Tax (7+-8) 45,262,241.35 9,60,71,614.07Tax Expense :(a)TaxexpenseforCurrentYear 14,988,000.00 3,17,58,644.00(b)(Less):MATCredit(whereapplicable)(c)Currenttaxexpenserelatingtoprioryears (d) Net current tax expense 14,98,000.00 317,58,644.00 (e) Deferred tax 36,886 -1,11,701.00Profit / (Loss) for the year 30,237,355.35 6,44,24,671.07Earnings per equity share in Rs:(1) Basic 8 12.69 27.04(2) Diluted 8 12.69 27.04CorporateInformationandSignificantaccountingpolicies
In theeventof liquidationof theCompany, theholdersofequity shareswillbeentitled to receive remainingassetsof theCompany,afterdistributionofallpreferentialamounts.Thedistributionwillbeinproportiontothenumberofequitysharesheldbytheshareholders
Proposedfinaldividend@Rs3pershare(PYRs.5.5 per share) 5,956,875.00 7,148,250.00
Tax on proposed dividend 1,212,714.00 1,455,211.00 Transfer to General Reserve 3,040,463.00 6,442,461.00Adjustmentonaccountofchangeinresidualvalueoffixedassets 4,70,377.02
Revenue from Sale of Service and Maintenance 403,35,637.20 444,04,357.19
Total Sales and Service Income 4300,79,507.08 6341,36,766.37
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Note 18 . Other Income 31 March 2016 31 March 2015
Interest on Deposits 57,67,379.60 47,89,153.00
Foreign Exchange Gain 37,25,049.31 73,13,707.98
Dividend from SBI Mutual Fund 0.00 85,739.10
Total Other Income 94,92,428.91 121,88,600.08
Notesformingpartofthefinancialstatementsfortheyearended(All amounts are in Indian Rupees, unless otherwise stated)
Note 19. Purchases
Local Purchases Kerala 923,13,022.55 806,16,194.69
Local Purchases Delhi 1,47,995.00 4,80,000.00
Local Purchases Tamilnadu 21,81,834.80 15,58,653.00
Interstate Purchases Kerala 876,66,352.49 3452,34,538.86
Interstate Purchases Tamilnadu 9,43,402.00
Import Purchases Tamilnadu 30,55,776.00
Imported Purchases Kerala 863,88,217.67 668,32,509.20
Total purchases of Stock in Trade 2726,96,600.51 4947,21,895.75 Note 20 Changes in Inventories Opening Stock of Stock in Trade 1278,40,914.50 1046,49,212.00
Less Closing Stock of Stock in Trade 877,32,032.70 1278,40,914.50
ADTECH SYSTEMS LIMITED 2/796,First Floor,Sakshi Towers,First Main Road, Kazura Gardens, Neelankarai, Chennai 600 041
CASH FLOW STATEMENT(All amounts are in Indian Rupees, unless otherwise stated)
Cash Flow Statement as at 31st March 2016 31st March 2015
Cash Flow from Operating ActivitiesNetprofitbeforetaxasperStatementofProfitandLoss 452,62,241.35 960,71,614.07 Adjustments to reconcile profit before tax to cash generated by operating activities
Depreciation 10,10,490.05 14,69,648.53 Loss on sale of Motor Car - - Provision for Leave Encashment - - Provision for Bonus - - Finance Costs 67,778.00 - BadDebtsWrittenOff 2,00,897.11 11,27,248.60 ExchangeFluctuation (37,25,049.31) (73,13,707.98)Dividend from SBI Mutual Fund - (85,739.10)Interest Income (57,67,379.60) (47,89,153.00)OperatingProfitbeforeWorkingCapitalChanges 370,48,977.60 864,79,911.12 Adjustments for:Increaseordecreaseininventory 368,98,503.40 (231,91,702.50)Increaseordecreaseinreceivables 389,21,005.71 (69,88,669.53)Increase or decrease in other short term advances (288,15,733.42) (329,60,661.20)Increase or decrease in other Long Term Deposits - - Increaseordecreaseintradepayables (767,18,596.47) (109,81,721.52)Increaseordecreaseinshorttermborrowings - (24,635.00)Increaseordecreaseinotherpayables 4,40,584.56 (20,03,154.21)Increase or decrease in Short term provisions 60,43,089.00 171,31,492.00 Cash Generated from Operations 138,17,830.38 274,60,859.16 Direct Tax paid (149,88,000.00) (317,58,644.00)
Net Cash flow from Operating activities (11,70,169.62) (42,97,784.84)
Cash Flow from Investing ActivitiesEmployeesGratuityTrustFundPurchase of Non-Current Assets (24,90,413.00) (6,67,945.71)Sale of Non-Current Assets - - Deposit with Muthoot Capital Services Limited - (130,00,000.00)InterimDividend&DividendDistributionTax (71,69,589.00) - Dividend from SBI Mutual Fund - 85,739.10 Interest received 57,67,379.60 47,89,153.00 Net Cash flow from Investing Activities (38,92,622.40) (87,93,053.61)Cash Flow from Financing ActivitiesRepaymentofloans - - ExchangeFluctuations 37,25,049.31 73,13,707.98 Finance Costs (67,778.00) - Net cash flow from financing activities 36,57,271.31 73,13,707.98 Net Increase/Decrease in Cash (14,05,520.71) (57,77,130.47)Add:CashandCashEquivalentsatbeginning(OpeningBalance) 1097,38,022.69 1155,15,153.16 Cash and Cash Equivalents as at end (Closing Balance) 1083,32,501.98 1097,38,022.69
forandonbehalfoftheBoardofDirectors as per our report of even date for M.R.Ramachandran&CoCharteredAccountantsFirm Regn No 002873S
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2016
Note 1 : Corporate Information
AdtechSystemsLimited(formerlyAdtechPowerSystemsLimited)(hereinafterreferredtoas“ASL”or“theCompany”)wasincorporated on 05thFebruary1990inChennai,Tamilnadu.TheCompanyisanelectronicsystemintegratorandprovidesawiderangeofsolutions inelectronicsecuritysystemswithapan Indiapresence .Corporate IdentityNumber (CIN) isL33111TN1990PLC018678.PaidupShareCapitaloftheCompanyisRs.238.2lakhsdividedinto2382750equitysharesofRs.10/-eachfullypaidup.
Note 2 :Significant Accounting Policies.
Thefinancialstatementsfortheyearended31stMarch2016havebeenpreparedunderthehistoricalcostconventionandonanaccrualbasisThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewithIndianGenerallyAcceptedAccounting Principles (Indian GAAP). The Company has prepared these financial statements to comply in all materialrespectswiththemandatoryandrelevantAccountingStandardsissuedbytheInstituteofCharteredAccountantsofIndiaandtherelevantprovisionsof theCompaniesAct,2013.Theaccountingpolicieshavebeenconsistentlyappliedby theCompanyandareconsistentwiththoseusedinthepreviousyear,
TheCompanyhasmadeanintercorporatedepositwithM/sMuthootCapitalServicesLimitedofRs140.85lakhson30th March 2016 for a period of 3 months which carries an interest rate of 9 percent per annum out of the surplus funds. The depositisclassifiedunderthehead“ShortTermLoansandAdvances”intheBalanceSheet.
[h]Foreignexchangetransactions:
(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of thetransactions.
2. Service income is recognised on redressal of customer complaint and acceptance of service charges.
3. Revenue from Annual Maintenance contract are recognized pro-rata over the period of contract and to the extent to whichitisapplicablefortheyearunderconsideration.
Deferredtax:Thecompanyprovidesfordeferredtaxliabilitiesonthebasisofthetaxeffectofthetimingdifferencesresultingfromtherecognitionofitemsinthefinancialstatementandinestimatingitscurrentincometaxprovision.Deferredtaxassetsarising fromtimingdifferencesare recognized to theextent there is reasonablecertainty that theassets canberealizedinfuture.AnamountofRs.0.37lakhshasbeendebitedtothestatementofProfitandLossonaccountofdeferredtax .
[l]EmployeeRetirementandotherBenefits.
(i) RetirementbenefitintheformofProvidentFundisadefinedcontributionschemeandthecontributionsarechargedto the statement of Profit and Loss of the year when the contributions to the fundmaintained by the CentralGovernmentisdue.Thereisnootherobligationotherthanthecontributionpayabletothetrust.
(ii) Gratuity
Liability for Gratuity in respect of employees of the Company has been covered under the Group Gratuity cumAssuranceSchemebytheLifeInsuranceCorporationof IndiaandtheContributionisrecognizedintheStatementofProfitandLoss.TheCompanyhasmadeprovisionforgratuityforatotalamountofRs.33.13lakhs(currentyearprovisionRs.1.53lakhs)asperactuarialvaluationmadebyLICofIndia.AnamountofRs.33.13lakhshasbeenpaidbytheCompanytoLICofIndiaGroupGratuityFund(currentyearcontribution1.53lakhs).ValueoftheGratuityFundason 31stMarch2016isRs.43.12lakhswhichincludesinterestcreditedtofundbyLICyearonyear.
(ii) Expensesthataredirectlyallocabletosegmentsareconsideredfordeterminingthesegmentresult.Theexpenseswhichrelatetothecompanyasawholeandnotallocabletosegmentsareincludedunder“UnallocableExpenditure”
(iii) Segment assets and liabilities are thosewhich are directly identifiablewith the respective segments. Unallocablecorporateassetsandliabilitiesarethosewhichrelatetothecompanyasawholeandnotallocabletoanysegment.
Sl No NatureofTransaction Associates KeyManagerialPersonnel/Relative Others Total
01
TradeReceivables 2015-16
2013-14
32.83`
38.41
- ---32.83
38.41
02 Land Advance33.06
33.06
33.06
33.06
(p)AnamountofRs.5.22lakhsislyingintheUnpaidDividendAccountwithStateBankofIndiaon31st March2016towards the dividenddeclaredandpaidbutnotclaimedforthefinancialyearsasdetailedbelow.
[q]SalesandServiceIncome As at 31.03.2016 As at 31.03.2015 Value Value in Rs Lakhs in Rs. lakhs
(a) Sale of goods
ElectronicSecuritygoodstraded 3897.43 5897.32
(b) Service and Maintenance Income 403.36 444.04
Total Sales and Service Income 4300.79 6341.36 ============ =============
[r]ContingentLiabilitiesnotprovidedfor:
a. LiabilitiesagainstbankguaranteesissuedonbehalfofthecompanyforparticipatingintendersandgivenasperformanceguaranteecomestoRs98.20lakhs(PreviousyearRs.5.70lakhs-).BankshavemarkedlienonCompany’sfixeddepositstotheextentofoutstandingbankguaranteeamount.
b. TheCompanyhasreceivedassessmentordersforKeralaStateVATandCSTfortheyears2010-11,2011-12and2012-13demandingamountsasdetailedinbelowstatementduetonon-submissionofexemptionformsandotherreasons.The
[zc]Thecompanyestimatesdeferredtaxcharge/(credit)usingtheapplicablerateoftaxationbasedontheimpactoftimingdifferencesbetweenfinancial statementsand theestimated taxable income for thecurrentyear.Thenetaccumulated taxliabilityasat31stMarch2016providedinthebalancesheetisRs.36.33lakhswhichisduetocumulativetimingdifferenceonaccountofdepreciation.
TheCompanyisaPublicLimitedCompanyhavingitsregisteredofficeinChennai,Tamilnadu.TheCompanyhadbeenlistedintheregionalstockexchangesofCochin,ChennaiandAhmedabadallofwhichhadtoclosedownfollowingexitorderbytheSecuritiesandExchangeBoardofIndia(SEBI)andasondatetheCompanyisplacedinthedisseminationboardofNationalStock Exchange Limited(NSE)whichdoesnot provide any listed status to theCompany. TheCompany is in theprocess ofapplyingforlistinginStockExchangehavingnationwideterminals.
In theyearunderreview,globaleconomicactivitystayedstagnant.Growthcontinuedtodecline,whilemodest recovery isexpectedinthecomingyears.Thishasaffectedourexportrevenueshard.Inflationstayedmoreorlessconstantandcommoditypricesshowdecliningtrendintheyeartocome.
The IndianElectronicSecurityMarkethascontinuedtoevolve throughgovernment fundingand internationalcooperation.FuturepotentialoftheIndianElectronicSecurityMarkethasgainedattractionamongtheforeignplayersaswellforinvestors.Thismarkethasexperiencedanaverageannualgrowthrateof31.8%overtheperiodFY2008–FY2013.ThegrowingawarenessaboutthebenefitsofelectronicsecurityequipmentamongtheTier2&3citiesisexpectedtoescalatethedemandinthenearfuture.
Basedonthesuccessofthisorder,theCompanyexpectsKSEBtoorderforsimilarorlargercapacityFloatingSolarPantsforallthe dams in Kerala.
AdtechisalsodoingtrialofaMicroWindTurbineforaresortinTrivandrum.BasedonthesuccessofthistrialtheCompanyexpectsanorderfora2KWWindTurbinefarmintheresort.Thiswillinturnpavewaytosuchwindturbinefarmscomingupin other resorts in Kerala and outside Kerala.
The Company is engaged in providing sophisticated solutions in the electronic surveillance segment . Due to statutoryrequirements,needforprotectionbywayofelectronicsecuritysolutions is increasingnotonlyamongcorporatesbutalsoamongindividuals.TheCompanyseekstomakefulluseofthisgrowingawarenessoftherequirementofelectronicsecurityprotection. The Company provides integrated solution and employs professional work force.We now cater to numerous
The growth of our business depends on the operations to realize our vision of attaining size and to improve our costcompetitiveness.Inordertoachievesuchfuturegrowth,weneedtoeffectivelymanageournewproject,ourresourcesandaccuratelyassessnewmarkets,attractnewcustomers,obtainsufficientfinancing,controlourinputcosts,maintainsufficientoperationalandfinancialcontrolsandmakeadditionalcapitalinvestmentstotakeadvantageofanticipatedmarketconditionsandkeeponlearningandinventingontechnology.Weexpectourgrowthtoplacesignificantdemandsonourmanagementandotherresources.Anyinabilitytomanageourgrowthcouldhaveanadverseeffectonourbusiness,financialconditionandresultsofoperations.
The costof implementinganynew technologies couldbe significant and could adversely affectourbusiness andfinancialcondition.Whileweregularlyupgradeourtechnology,theemergenceofnewertechnologiescouldrenderourcurrenttechnologyineffectiveorobsoleteandmayadverselyaffectthecoststructureandcompetitivenessofourproductsandservices.Changesintechnologywithwhichweareunabletokeeppace,orwhichrenderourproductsandserviceslessusefultocustomersandthemarket,couldaffectourgrowth,business,financialconditionandresultsofoperations.
Corporate Governance ensures transparency and accountability by the Company to its various stakeholders. The Boardof Directors of your Company believe in good corporate governance since the good relationship between the CompanyManagementandvariousstakeholdersoftheCompanyisensuredbygoodcorporategovernancepractices.
1.COMPANY’S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE.
YourCompanybelievesincreatingwealthforallitsshareholders.Inpursuitofthisobjective,thePoliciesoftheCompanyaredesignedtostrengthentheabilityofBoardofDirectorstosupervisethemanagementandtoenhancelongtermshareholdervalue. All decisions are taken in the interests of the Shareholders. The Board and themanagement is aware ofminorityshareholder’sinterestandeverythingisdonetoenhanceshareholdersvalue.
As per Regulation 25(3) of the SEBI (ListingObligations and Disclosure Requirements) Regulations, 2015 the IndependentDirectorsof theCompany shallmeetonce ina yearwithout thepresenceofNon-IndependentDirectorsandmembersofthemanagement.SuchmeetingsareconductedinformallytodiscussmatterspertainingtotheCompanyandtoreviewtheperformance of Non- Independent Directors.
AsperRegulation25(7)of theSEBI (ListingObligationsandDisclosureRequirements)Regulations,2015, theCompanyhasfamiliarised the Independent Directors with the Company’s policies and procedures by providing necessary documents,brochures,reportsandinternalpolicies.Duringtheyear,theCompanyimpartedrefreshment/developmenttoitsIndependentDirectors.DetailsofsuchprogrammeispostedonthewebsiteoftheCompany.
PursuanttoRegulation17(5)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theCompanyhas in place a Code of Conduct for Directors and Senior Management. The code is intended to focus the Board and Senior Management on areas of ethical risk, provide guidance to Directors and Senior Management to help them recognize and deal withethicalissues,providemechanismstoreportunethicalconductandhelpstofosteracultureofhonestyandaccountability.
Basedon theconfirmationcertificate received from theDirectorsandSeniorManagementunderRegulation26(3)of SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,adeclarationbyManagingDirectorconfirmingadherenceto the Code of Conduct is enclosed herewith as Annexure 1. The Code of Conduct for Directors and Senior Management personnelispostedonthewebsiteoftheCompany.
Attendance and other relevant details of each Director
DuringFinancialyear2015-16,5meetingsonBoardofDirectorswereheldonthefollowingdates30thMay,2015,13th August 2015, 14thNovember2015,12thFebruary2016and18March2016.
NameoftheMembersShri.N.Suresh ChairmanShri.M.R.Subramonian MemberSmtP.K.AnandavallyAmmal Member
TheAuditcommitteeconsistsoftwoNon-ExecutiveIndependentDirectors,oneofwhomistheChairman.AllthemembersoftheCommitteepossessesaccountingorrelatedfinancialmanagementexpertise.TheCommitteemetfivetimesduringthefinancialyear2014-15on30thMay2015,13th August 2015, 14thNovember2015,12thFebruary2015andon18March2016,inwhichmeetings,allthememberswerepresent.
4.Nomination and Remuneration Committee and policies
TheBoardhadconstitutedaNominationandRemunerationCommitteeon14th August 2014 pursuant to the provisions of Section 178 of the Companies Act, 2013 and Regulation 19 of the SEBI (ListingObligations andDisclosure Requirements)Regulations,2015
a. FormulationofcriteriaforevaluationofDirectors,Chairman,ManagingDirectorandExecutiveDirector,BoardasawholeandvariousCommitteesoftheBoard.BasedontherecommendationsoftheCommittee,thesaidPolicyonNominationandRemunerationandEvaluationofDirectorswasadoptedbytheBoard.
b.IdentifyingpersonswhoarequalifiedtobecomeDirectorsandwhomaybeappointedinSeniorManagementpositionsinaccordance with the criteria laid down.
((a) The candidate possesses appropriate skills experience and knowledge in one ormore fields ofmanagerial/business/administrative/legal/financequalificationsandexperienceovertwodecades;
(b) The candidate should possess qualities that demonstrate leadership skills, effective communication skills, hardwork,commitmentandsuchotherattributeswhichintheopinionoftheCommitteeareintheinterestoftheCompany.
Disclosures on remuneration and terms of appointment of Managing Director and Executive Director as stipulated in Section III of Part II of Schedule V of the Companies Act, 2013
Free Use of the Company’s Car, free telephone facility and payment of electricity and water charges at residence,reimbursementofentertainmentexpensesincurredintheinterestsofthebusinessoftheCompany.
Stakeholders’ Relationship Committee was constituted pursuant to Section 178 (5)of the Companies Act, 2013 andRegulation 20 of the SEBI (Listing Obligations and Disclosure Requirements)Regulations, 2015. The Stakeholders’RelationshipCommitteecomprisesofthefollowingdirectors:
As on 31stMarch2016,theCorporateSocialResponsibility(CSR)CommitteeoftheCompany,underSection135oftheCompaniesAct,2013,consistsoftwoNon-ExecutiveDirectors,outofwhichoneisIndependentDirector.TheCommitteehasformulatedaCSRPolicyindicatingtheactivitiestobeundertakenbytheCompanyinaccordancewithScheduleVIItotheCompaniesAct,2013.
TheStakeholder’srelationshipCommitteefunctionsastheShareTransferCommitteeincaseofanydisputes/clarificationsthatarereceivedfromShareTransferagentsoftheCompany.ShareTransfersaredelegatedtotheShareTransferRegistrar,who inspects the documents and registers all valid transferswithin 30 days of receipt. The Company obtains from aCompanySecretaryinPracticehalfyearlycertificateofcompliancewiththesharetransferformalitiesasrequiredunderRegulation40(9)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.
8.Vigil Mechanism/Whistle Blower Policy for Directors and employees.
Pursuant to Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015Mr.M.R.Subramonian,ManagingDirectorandMr.P.VinayaChand,ChiefFinanceOfficerhadprovidedCEO/CFOcertificateforthequarterandyearended31st March 2016 which is annexed herewith as Annexure III
13.REDRESSAL OF INVESTOR GRIEVANCES THROUGH SEBI COMPLAINTS REDRESSAL SYSTEM (SCORES)
SCORESisawebbased,centralisedgrievanceredressalsystemofSEBI(http://scores/gov.in).SCORESenablesinvestorsto lodgeand followup their complaints and track the statusof redressalof such complaintsonline. This enables themarket intermediaries and listed Companies to check the complaints online from investors, redress such complaints and reportredressalonline.AlltheactivitiesstartingfromlodgingofacomplainttillitsclosurebySEBIwouldbehandledinanautomated environment and the complainant can view the status of his complaint online. An investor, who is not familiar withSCORES,orwhodoesnothaveaccesstoSCORES,canlodgecomplaintsinphysicalformatanyoftheofficesofSEBI.SuchcomplaintswouldbescannedandalsouploadedinSCORESforprocessing.
CompliancecertificateonCorporateGovernanceprovidedbytheStatutoryAuditorsoftheCompanyconfirmingthecon-ditionsofCorporateGovernanceasstipulatedinSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015is enclosed as Annexure IV
In compliancewith theprovisionsof Section20of theCompaniesAct, 2013 and as a continuing endeavour towardsthe“GoGreen” initiative, theCompanyproposes tosendall correspondence/communications throughemail to thoseshareholders,whohaveregisteredtheiremailidwiththeirdepositoryparticipants/Company’sregistrarandsharetransferagent.Incasetheshareholdersdesiretohaveaprintedcopyofsuchcommunications,theymaysendrequisitionstotheCompany.TheCompanyshallforthwithsendaprintedcopyofsuchcommunicationtotherespectiveshareholder.
(d) Listingdetails:TheCompanyisnotlistedinanystockexchangesason31st March 2016 due to the closure of Chennai.CochinandAhmedabadStockexchangeswherethesharesoftheCompanywerelisted.ThesharesareplacedinthedisseminationboardofNSE.TheCompanyplanstoapplyforlistinginstockexchange/shavingnationalwiseterminals.Duetonon-listingstatus,paymentoflistingfeeisnotapplicable
(g) Dematerialisation of Shares: The Company has arrangements with both National Securities Depositories Limited(NSDL)andCentralDepositoryServices(India)Limited(CDSL)toestablishelectronicconnectivityofsharesforscriplesstrading.72.53%ofsharesoftheCompanywereheldindematerialisedformason31st March 2016.
(b)IntegratedEnterprises(India)LimitedRegistrar and Share Transfer Agents2nd Floor, Kences Towers, No 1, Ramakrishna StreetOffNorthUsmanRoad,T.Nagar,Chennai600017Tel:044028140801-803Email [email protected]
I confirm that the Company has received from themembers of the Board and SeniorManagement team of theCompany,declarationsofcompliancewith theCodeofConductasapplicable to themduring thefinancialyearended31st March 2016
Trivandrum sd/-30May2016 M.R.Subramonian Managing Director
Annexure II
Declaration
ToTheMembersofAdtechSystemsLimited
IconfirmthattheCompanyhasreceivedfromalltheDirectors,adeclarationofcomplianceinaccordancewiththeprovisionsofSection165oftheCompaniesAct,2013andRegulation25(1)and26(1)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015forthefinancialyearended31st March 2016.
Trivandrum sd/-30May2016 M.R.Subramonian Managing Director
Adtech Systems LimitedAnnual Report 2015-2016
79
Annexure III
CERTIFICATION BY CHIEF EXECUTIVE OFFICER/CHIEF FINANCE OFFICER
Regd Office: No.2/796, First Floor, A Wing, Sakshi Towers First Main Road Kazura Gardens, Neelankarai, Chennai- 600 041
ATTENDANCE SLIPTWENTY FIFTH ANNUAL GENERAL MEETING – 30th SEPTEMBER 2016 AT 3.00 PM
Regd Folio No/Client ID No…………..
I certify that I am a registered shareholder/proxy for the registered shareholder of the Company.
I hereby record my presence at the TWENTY FIFTH Annual General Meeting of the Company at NO.2/796, FIRST FLOOR, A WING, SAKSHI TOWERS FIRST MAIN ROAD KAZURA GARDENS, NEELANKARAI, CHENNAI- 600 041 on Friday 30th September 2016 at 3.00 PM.
……………………………………………………. …………………………………………………….Member’s /Proxy’s Name Member’s/Proxy’s Signature
NOTE : Please fill this attendance slip and hand it over at the entrance of the hall.
…………………………………………………….Tear Here…………………………………………………
ADTECH SYSTEMS LTDRegd Office: No.2/796, First Floor, A Wing, Sakshi Towers First Main Road
Kazura Gardens, Neelankarai, Chennai- 600 041
PROXY FORM
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration)Rules, 2014]
CIN : L33111TN1990PLC018678Name of the Company : Adtech Systems LimitedRegistered Office : No.2/796, First Floor, A Wing, Sakshi Towers First Main Road, Kazura Gardens, Neelankarai, Chennai- 600 041
Name of the Member (s) :
Registered Address :
Email ID :
Folio/Client ID :
DP ID : I / We, being the member(s) of .............................................................. .............. ....... shares of the above named company, hereby appoint
1. Name :....................................................... E-mail ID :..........................................................
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 25th Annual General Meeting of the Company, to be held on the 30th day of September 2016 at 3.00 p.m. at No.2/796, First Floor, A Wing, Sakshi Towers First Main Road Kazura Gardens, Neelankarai, Chennai- 600 041 and at any adjournment thereof in respect of such resolutions as are indicated below:
Resolution For AgainstNo.
1. Adoption of Audited Statement of Profit and Loss for the year ended 31st March 2016 and Balance Sheet as at that date together with the Reports of the Directors and Auditors and Cash Flow Statement thereon
2. Appointment of Director in place of Shri.M.R.Narayanan who retires by rotation and is eligible for re-appointment
3. Ratification of Appointment of Statutory Auditors
4. Appointment and increase in remuneration of Shri.M.R.Subramonian as Managing Director
5. Appointment and increase in remuneration of Shri.M.R.Krishnan as Executive Director
Signed this ……………………day of ………………2016
Signature of Shareholder…………………
Signature of Proxy Holder ………………
Note:- This form inorder to be effective should be duly stamped, completed and must be deposited at the registered office of the Company, not less than 48 hours before the commencement of the meeting.
AffixRevenueStamp
Adtech Systems LimitedAnnual Report 2015-2016
83
ADTECH SYSTEMS LIMITED Annual Report 2015-16
ADTECH SYSTEMS LIMITED 2/796,FIRST FLOOR,A WING,SAKSHI TOWERS
FIRST MAIN ROAD, NEELANKARAI,CHENNAI 600 041 CIN L333111TN1990PLC018678
LOCATION MAP of Venue of 25th Annual General Meeting
From TIdel Park Chennai
Tidel Park Signal Rajiv Gandhi IT Highway
Thiruvanmiyur Signal ADYAR KAZURA GARDENS ECR ECR Neelankarai Palavakkam