AFFLUENCE

DIRECTORS’ REPORT

TO
The Members
CRP Technologies (India) Limited
Mumbai

Your Directors take great pleasure in presenting the 15th Annual Report on the business and operations of your Company and the Audited Financial Results for the year ended 31st March 2014.

1. FINANCIAL RESULTS AND OPERATIONS:

The Company’s Financial Performance reflects good growth. The Financial results of the Company for the year under review are as under.

(Amount in Rupees)

Particulars 2013-14 2012-13
Gross Income 98,45,97,734 77,72,48,039
Profit Before Finance cost,
Depreciation and Tax 14,67,45,566 12,80,61,108
Less : Finance Cost 4,18,18,212 3,19,21,047
Less : Depreciation 2,75,77,102 3,18,70,635
Profit before Taxes 7,73,50,252 6,42,69,426
Less: Provision for taxation
Current Tax 2,51,30,599 1,30,46,346
Deferred Tax 9,91,381 66,37,100
Tax adjustment for Earlier year NIL NIL
Profit After Taxes 5,12,28,272 4,45,85,980

The review of our Financial year 2014 operations gives me a satisfying feeling of both achievement and hope for the future. Sales are up, and profits are correspondingly higher this year. Both the domains – HR and Insurance – are performing very well. Apart from the core product lines of BGC and Operations Risk; CRP managed to make rapid inroads with its proposed offerings of portfolio contactability and persistency for our Insurance clients during the year.

The HR domain related activities, primarily BGC have continued to be successful. The rising awareness levels about the risk of bad hires, and an incessant outbreak of frauds and scams in the environment bought the human resource risk starkly into focus. This has resulted in increased revenues for the business over the last year. The successful pilots we have conducted for some large global banks in the extended verticals of due diligence opens up an avenue for us of an enhanced product offering to our clients in the HR vertical. It is pertinent to note here that the dollar earnings of these projects would not only increase the lateral scale of operations but would also help diversify our exposure beyond the India market. .

Another strong product line that is finally achieving critical mass and presenting unlimited opportunities is CRP SECURE, our employee data repository which currently hosts over 750,00 unique employee and over 30 Million education records. CRP SECURE today has over 25 of India’s largest corporate entities as its contributory members. The rapid growth of our database, which is changing the rules of the industry, has won accolades from industry bodies. Through its dynamic applications, it will continue to open open newer vistas of opportunities .

Also, this year, your Company has purchased a 100% stake in Axis Resources Pvt. Ltd, hence making the latter a Wholly ownde subsidiary of CRP.

Future Outlook

CRP has always adopted a growth strategy based on its core competencies of developing innovative solutions and using its strategic client relationships to convert concepts into viable product lines. The vision of excellence in operational delivery has helped us deliver extra-ordinary results within the constrained resource endowments of time, money, and people, out-performing some of the larger, most organized entities in the competitive market space. The vision of CRP, to be amongst the top 3 players in any business line that we choose to operate in, has paid off, and would continue to pay off in the long run.

There is an excellent scope of expansion in risk management services market space. However, the growth would come not in terms of employing large number of highly skilled people. It would rather come by increasing our capacities through intelligent deployment of technology and achieving process efficiencies through wider distribution of geographical network along with a tighter allocation and monitoring process. CRP's experience in the last few years proves this fact and we have succeeded beyond merely achieving our financial targets, and has also resulted in the creation of Intellectual Properties which will add a great deal to the enterprise value in times to come.

CRP plans to continue its quest for excellence across all our product lines in the years to come. With its commitment to continuous innovation of its processes, people, and solutions, CRP is gearing up for a stable and sustainable growth over the next 3 to 5 year horizon

2. DIVIDEND:

Your Directors do not recommend any dividend in view of the conservation of capital for future growth and expansion plans.
3. FIXED DEPOSITS:

The Company has not accepted any deposit during the period ended March 31, 2013 within the meaning of Section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

4. CONSTITUTION OF AUDIT COMMITTEE:

In term of requirements of Section 292 (A) of the Companies Act, 1956,during the period under report your company continues to have an Audit Committee consisting of two non-executive independent directors namely Mr. Chetan Shah, Mr. Hemant Gada and executive director, Mr. Rahul Belwalkar under the Chairmanship of Mr. Chetan Shah one of the independent none-executive directors. Keeping in view the requirements of Clause 49 of the Listing agreement, the committee was entrusted with assignments as directed by company on time to time basis.

5. DIRECTORS:

Composition

The Board comprises of five directors, 2 of whom are Non executive and independent and 3 directors are executive director.

Retirement by rotation

In accordance with articles of association of the Company read with provisions of the Companies Act, Mr. Sayyed Raza retire by rotation at the forthcoming AGM and being eligible, offer themselves for re-appointment.

The Board recommends re-appointment of the directors retiring by rotation.

6. PARTICULARS OF EMPLOYEES:

There were no employees during the period, who have received remuneration in excess of Rs. 60 lacs p.a. or for part of the year was in receipt of remuneration of Rs.5 lacs p.m., hence the information under section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 and the Companies (Amendment) Act, 1988, is NIL.


7. AUDITORS:

The Auditors of the Company, M/s. Chheda Vyas & Associates, Chartered Accountants, Mumbai, retires at the conclusion of the ensuing Annual General Meeting and being eligible, offers themselves for re- appointment.

Your Directors recommend their re-appointment.

8. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO:

Information in accordance with the Provisions of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is not applicable to your Company.

FOREIGN EXCHANGE EARNINGS AND OUTGO:

CY PY
2013-2014 2012-2013
i Earning in Foreging currency 41,26,321.56 50,62,738.72
ii Expenditure in Foreign
currency 5,05,32,372.80 -

9. DIRECTORS’ RESPONSIBILITY STATEMENT:

Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956, the Board of Directors of the Company hereby state and confirm that:

(i)in the preparation of the Annual Accounts, the applicable accounting standards had been followed, alongwith proper explanation relating to material departures if any;

(ii)the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial period and of the loss of the Company for that period;

(iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) the Directors have prepared the annual accounts on a going concern basis.


10. ACKNOWLEDGEMENT

Your Directors acknowledge support from its clients, consultants, Banks etc. at all levels.

The Directors also take this opportunity to express their gratitude to the stakeholders of your Company for their trust and confidence. The Directors recognise and acknowledge the unstinted support provided by the employees at all levels and also for their sincerity, commitment and professionalism. Your directors look forward to their continuing support and all round support.


For and On Behalf Of The Board of Directors


Hitesh Asrani Rahul Belwalkar
Place: Mumbai

Director Director , Date:6TH September 2014

The review of our Financial year 2014 operations gives me a satisfying feeling of both achievement and hope for the future. Sales are up, and profits are correspondingly higher this year. Both the domains – HR and Insurance – are performing very well. Apart from the core product lines of BGC and Operations Risk; CRP managed to make rapid inroads with its proposed offerings of portfolio contactability and persistency for our Insurance clients during the year. The HR domain related activities, primarily BGC have continued to be successful. The rising awareness levels about the risk of bad hires, and an incessant outbreak of frauds and scams in the environment bought the human resource risk starkly into focus. This has resulted in increased revenues for the business over the last year. The successful pilots we have conducted for some large global banks in the extended verticals of due diligence opens up an avenue for us of an enhanced product offering to our clients in the HR vertical. It is pertinent to note here that the dollar earnings of these projects would not only increase the lateral scale of operations but would also help diversify our exposure beyond the India market.Another strong product line that is finally achieving critical mass and presenting unlimited opportunities is CRP SECURE, our employee data repository which currently hosts over 750,00 unique employee and over 30 Million education records. CRP SECURE today has over 25 of India’s largest corporate entities as its contributory members. The rapid growth of our database, which is changing the rules of the industry, has won accolades from industry bodies. Through its dynamic applications, it will continue to open open newer vistas of opportunities .Also, this year, your Company has purchased a 100% stake in Axis Resources Pvt. Ltd, hence making the latter a Wholly ownde subsidiary of CRP. .

Your Directors do not recommend any dividend in view of the conservation of capital for future growth and expansion plans.

Information in accordance with the Provisions of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is not applicable to your Company.

Information in accordance with the Provisions of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is not applicable to your Company.

Foreign Currency Transactions (i) Earning in Foreging currency 41,26,321.56 expenditure in Foreign currency - 50532372.80

There were no employees during the period, who have received remuneration in excess of Rs. 60 lacs p.a. or for part of the year was in receipt of remuneration of Rs.5 lacs p.m., hence the information under section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 and the Companies (Amendment) Act, 1988, is NIL.

Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956, the Board of Directors of the Company hereby state and confirm that:(i) in the preparation of the Annual Accounts, the applicable accounting standards had been followed, alongwith proper explanation relating to material departures if any; (ii) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial period and of the loss of the Company for that period; (iii)the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) the Directors have prepared the annual accounts on a going concern basis.