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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

Chief Financial Officer P Vinaya Chand

Audit Committee Shri. N.Suresh (Chairman) Shri.M.R.Subramonian Smt.P.K.Anandavally Ammal

Nomination & Remuneration Shri.N.Suresh (Chairman)Committee Shri.M.R.Narayanan Smt.P.K.Anandavally Ammal

Corporate Social Responsilbility Shri.M.R.Narayanan(Chairman)Committee Shri.M.R.Subramonian Shri.N.Suresh

Shareholders Grievance/Share Shri.M.R.Narayanan (Chairman)Transfer Committee 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 2nd Floor, Kences Towers, North Usman Road T.Nagar, Chennai 600 017


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Registered Office 2/796, First Floor, Sakshi Towers First Main Road, Kazura Gardens Neelankarai, Chennai- 600 041 Phone 91 44 2449 5156/2449 5157

Corporate Office 5/2523, Golf Links Road, Kowdiar P.O Trivandrum – 695 003 Phone 91 471 2433805/569

Website www.adtechindia.com

Email [email protected]

Shares Listed with IntheDisseminationBoardofNSE Corporate Identity Number (CIN) L33111TN1990PLC018678

ISIN INE257C01014


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NOTICE

NoticeisherebygiventhattheTwentyFifthAnnualGeneralMeetingoftheMembersofADTECHSYSTEMSLIMITEDwillbeheldonFridaythe30thSeptember2016at3.00pmat2/796,FirstFloor,AWing,SakshiTowers,FirstMainRoad,KazuraGardens,Neelankarai,Chennai600041totransactthefollowingbusiness.

ORDINARY BUSINESS

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”.

SPECIAL BUSINESS

4. Toconsiderandifthoughtfit,topasswithorwithoutmodification(s)thefollowingresolutionasaSpecialResolution

RESOLVEDTHATpursuanttotherecommendationofNominationandRemunerationCommitteeandapprovaloftheBoardandsubjecttotheprovisionsofSection196,197,198,203andotherapplicableprovisions, ifanyoftheCompaniesAct,2013readwithscheduleVandArticle169oftheArticlesofAssociation,theCompanyherebyapprovesthere-appointmentandincreaseinremunerationofShri.M.R.Subramonian,ManagingDirectorofthecompanyforaperiodoffiveyearsfrom01.09.2016andthatremunerationbepaidtohimasunder:

(a) Bywayofmaximummanagerialremuneration,notexceeding5%ofthenetprofitsforeachyearfrom2016-2021 OR

(b) Bywayofminimummanagerialremunerationintheeventofabsenceorinadequacyofnetprofitsinanyofyearsduring theperiod2016-21,whenthe managerial remunerationexceeds5%of thenetprofits, subject to thelimits,termsandconditionsdetailedinscheduleVoftheCompaniesAct,2013asamendedfromtimetotimeandcontainedinthedraftagreementbetweenthecompanyandShri.M.R.Subramonian,ManagingDirectorplacedonthetableandinitialedbytheChairmanforthepurposeofidentification”

5.Toconsiderandifthoughtfit,topasswithorwithoutmodification(s)thefollowingresolutionasaSpecialResolution

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

(b) Bywayofminimummanagerialremuneration intheeventofabsenceor inadequacyofnetprofits inanyofyearsduringtheperiod2016-21,whenthemanagerialremunerationexceeds5%ofthenetprofits,subjecttothelimits,termsandconditionsdetailedinscheduleVoftheCompaniesAct,2013asamendedfromtimetotimeandcontainedinthedraftagreementbetweenthecompanyandShri.M.R.Krishnan,ExecutiveDirectorplacedonthetableandinitialedbytheChairmanforthepurposeofidentification”

ByorderoftheBoardofDirectors

ForAdtechSystemsLimited

sd/

Place: Trivandrum S.BALAMURALI

Date: 20.08.2016 CompanySecretary

NOTES

1. TheexplanatorystatementpursuanttoSection102(1)oftheCompaniesAct,2013,inrespectofthespecialbusinesssetout is annexed thereto.

2. Amemberentitledtoattendandvoteisentitledtoappointaproxytoattendandvoteinsteadofhimselfandaproxyneednotbeamember.Theproxies,inordertobevalid,mustbereceivedattheRegisteredofficeoftheCompanynotlessthan48hoursbeforethecommencementofthemeeting.

PursuanttoSection105oftheCompaniesAct,2013,MembersarerequestedtonotethatapersoncanactasaproxyonbehalfofMembersnotexceeding50andholdingintheaggregatenotmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrights.IncaseaproxyisproposedtobeappointedbyaMemberholdingmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrights,thensuchproxyshallnotactasaproxyforanyotherpersonorshareholder.Aproxyform(FormMGT11)isannexedtothisreport.

CorporateMembersintendingtosendtheirauthorisedrepresentativestoattendtheAnnualGeneralMeeting(AGM)arerequestedtosendacertifiedcopyoftheBoardResolutionauthorisingtheirrepresentativetoattendandvoteintheirbehalfattheMeeting.

IncaseofjointholdersattendingtheMeeting,onlysuchjointholderwhoishigherintheorderofnameswillbeentitledto vote.

3. Members/proxiesarerequestedtobringtheirAnnualReportcopies,andthedulyfilledinattendanceslipssentherewithbehandedoverattheentranceoftheMeetingHall.

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.

8. Investorgrievances/[email protected].

9. Membersarerequestedtoregistertheire-mailaddresseswiththeCompany/ShareTransferagentorwiththeirDepositories

10. A.PursuanttoSection108of theCompaniesAct,2013,readwithCompanies (ManagementandAdministration)Rules,2014andclause35BoftheListingAgreement,theCompanyispleasedtoprovidethefacilitytoMemberstoexercisetherighttovotebyelectronicmeans.TheCompanyhasarrangedthisfacilityintheCDSLPlatform.TheMemberswhosenamesappearintheRegisterofMembers/ListofBeneficiaryOwnersason23rdSeptember2016,ie,thecutoffdateareentitledtovoteontheresolutionssetforthinthenotice.

Voting through electronic means

I. IncompliancewithprovisionsofSection108oftheCompaniesAct,2013,Rule20oftheCompanies(ManagementandAdministration)Rules,2014asamendedbytheCompanies(ManagementandAdministration)AmendmentRules,2015andClause35Bof theListingAgreement, theCompany ispleased toprovidemembers facility toexercisetheirrighttovoteonresolutionsproposedtobeconsideredattheAnnualGeneralMeeting(AGM)byelectronicmeansandthebusinessmaybetransactedthroughe-VotingServices.Thefacilityofcastingthevotesby themembersusinganelectronicvotingsystemfromaplaceother thanvenueof theAGM)/EGM/EOGM(“remotee-voting”)willbeprovidedbyCentralDepositoryServicesLimited(CDSL).

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.

VI. Procedureforevotingisasgivenbelow

Theshareholdersshouldlogontothee-votingwebsitewww.evotingindia.com.

(i) Click on Shareholders.

(ii) NowEnteryourUserID

a. ForCDSL:16digitsbeneficiaryID,b. ForNSDL:8CharacterDPIDfollowedby8DigitsClientID,c. MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompany.

(iii) NextentertheImageVerificationasdisplayedandClickonLogin.


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(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.

• Incasethesequencenumberislessthan8digitsentertheapplicablenumberof0’sbeforethenumberafterthefirsttwocharactersofthenameinCAPITALletters.Eg.IfyournameisRameshKumarwithsequencenumber1thenenterRA00000001inthePANfield.

D i v i d e n d Bank DetailsOR Date of Birth (DOB)

EntertheDividendBankDetailsorDateofBirth(indd/mm/yyyyformat)asrecordedinyourdemataccountorinthecompanyrecordsinordertologin.

• Ifboththedetailsarenotrecordedwiththedepositoryorcompanypleaseenterthememberid/folionumberintheDividendBankdetailsfieldasmentionedininstruction(iv).

(vii) Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.(viii) Members holding shares in physical form will then directly reach the Company selection screen. However,

membersholdingsharesindematformwillnowreach‘PasswordCreation’menuwhereintheyarerequiredtomandatorilyentertheirloginpasswordinthenewpasswordfield.Kindlynotethatthispasswordistobealsousedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligibletovote,providedthatcompanyoptsfore-votingthroughCDSLplatform.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.

(ix) ForMembersholdingsharesinphysicalform,thedetailscanbeusedonlyfore-votingontheresolutionscontainedinthisNotice.

(x) ClickontheEVSNfortherelevant<CompanyName>onwhichyouchoosetovote.(xi) On thevotingpage, youwill see “RESOLUTIONDESCRIPTION”andagainst the same theoption“YES/NO” for

voting.SelecttheoptionYESorNOasdesired.TheoptionYESimpliesthatyouassenttotheResolutionandoptionNOimpliesthatyoudissenttotheResolution.

(xii) Clickonthe“RESOLUTIONSFILELINK”ifyouwishtoviewtheentireResolutiondetails.(xiii) Afterselectingtheresolutionyouhavedecidedtovoteon,clickon“SUBMIT”.Aconfirmationboxwillbedisplayed.

Ifyouwishtoconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”andaccordinglymodifyyourvote.

(xiv) Onceyou“CONFIRM”yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.(xv) Youcanalsotakeaprintofthevotescastbyclickingon“Clickheretoprint”optionontheVotingpage.

(xvi) IfademataccountholderhasforgottentheloginpasswordthenEntertheUserIDandtheimageverificationcodeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.

(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.


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• AscannedcopyoftheRegistrationFormbearingthestampandsignoftheentityshouldbeemailedtohelpdesk.evoting@cdslindia.com.

• AfterreceivingthelogindetailsaComplianceUsershouldbecreatedusingtheadminloginandpassword.TheComplianceUserwouldbeabletolinktheaccount(s)forwhichtheywishtovoteon.

• Thelistofaccountslinkedintheloginshouldbemailedtohelpdesk.evoting@cdslindia.comandonapprovaloftheaccountstheywouldbeabletocasttheirvote.

• AscannedcopyoftheBoardResolutionandPowerofAttorney(POA)whichtheyhaveissuedinfavouroftheCustodian,ifany,shouldbeuploadedinPDFformatinthesystemforthescrutinizertoverifythesame.

(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.

X, TheChairmanshall,attheAGMattheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwiththeassistanceofscrutinizer,byuseof“BallotPaper”forallthosememberswhoarepresentattheAGM)buthavenotcasttheirvotesbyavailingtheremotee-votingfacility.

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

Item No 4

Shri.M.R.SubramonianwasreappointedastheManagingDirectoroftheCompanyinthe20thAnnualGeneralMeeting.ThecurrenttenureofShri.M.R.Subramonianisupto31stAugust2016.Section196and197readwithScheduleVoftheCompaniesAct,2013requirespaymentofminimumremunerationincaseoflackorinadequacyofprofitstobeapprovedbytheMembersbywayofSpecialResolutionforaperiodnotexceedingthreeyears.

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:

(a).Incaseofadeguateprofits:Notexceeding5percentofthenetprofitsoftheCompanyaspersection198oftheCompaniesAct,2013payablebywayofsalaries,allowances,perquisites,commissionasdeterminedbytheNominationandRemunerationCommitteefromtimetotime.

(b)MinimumRemunerationincaseoflackorinadequacyofprofits:


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WhereinanyfinancialyearduringthecurrencyofthetenureofManagingDirector,profitsareinadequate,remunerationshallbepaidasunder;

1.RemunerationpayablenotexceedingthelimitsprescribedunderSectionII,PartIIofScheduleVoftheCompaniesAct,2013,basedon theeffectivecapitalof theCompanyand inaccordancewith theapprovalof theNominationandRemunerationCommitteeattherelevantpointoftime.2.PerquisitesshallbevaluedasperprovisionsofIncomeTaxRules.3.ManagingDirectorshallnotbeentitledtoanysittingfeeforattendingmeetingsofBoardorCommittee.

The re-appointmentand remunerationproposed fulfil theconditions stipulated inScheduleVof theCompaniesAct,2013andhenceapprovalofCentralGovernmentisnotrequired.Acopyoftheagreementcontainingthetermsandconditionsofre-appointmentofShri.M.R.SubramonianisavailableforinspectionwithoutanyfeebytheMembersattheRegisteredOfficeoftheCompanyduringbusinesshoursonanyworkingdaypursuanttoprovisionsofSection190oftheCompaniesAct,2013.

InformationrequiredunderSectionII,PartIIofScheduleVofTheCompaniesAct,2013.

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

Companywasincorporatedon05thFebruary1990andtheCertificateofCommencementofBusinesswasdated14th November1990.

In the case of new companies, expected date of commencementofactivitiesasperprojectapprovedbyfinancialinstitutionsappearingintheprospectus. NotApplicable

FinancialperformancebasedongivenindicatorsDetailsoffinancialperformanceoftheCompanyfortheyears2014-15and2015-16areprovidedintheAnnualReport2016whichaccompaniesthisNotice

Foreigninvestmentsorcollaborations,ifany Nil

II.Informationabouttheappointee

Background details Shri.M.R.SubramonianistheManagingDirectoroftheCompany

Pastremuneration

Rs.275,000permonthassalary,Onemonthsalaryasbonus,useofCompanyCarwithDriver,medicalreimbursementofuptoonemonthssalary,LeavetravelconcessionasperCompanyrulesasapplicabletootheremployees,andreimbursementofhouseelectricityandwater charges .


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RecognitionofAwards

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

IIIOtherInformation

Reasonsoflossofinadequateprofits

Duetosizeablefallinexportsduetointensecompetition,theCompany’srevenueandprofitsdeclined.TheCompanyhasalsoinvestedinmarketinginfrastructureandinappointingofmarketingheadsinordertoincreaserevenue.TheCompanyhadalsodiversifiedintofloatingsolarprojectswhichrequiredinitialinvestmentintrialprojects.

Stepstakenorproposedtobetakenforimprovement

Appointment of marketing personnel will increase therevenue.Stepsarebeing takento increaseexport revenuebyexploringnewavenues. Solarprojecthas startedgivingresultswiththeCompanybeingawardedwithaRs.9croreorderfromKeralaStateElectricityBoard.

Expectedincreaseinproductivityandprofitsinmeasurableterms

Theaforementionedstepstaken/tobetakenbytheCompanyare expected to improve the Company’s performance andprofitabilityinfuture.

IVDisclosure:Asrequired,informationisprovidedunderCorporateGovernanceSectionofAnnualReport2016.


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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:

(a).Incaseofadeauateprofits:Notexceeding5percentofthenetprofitsoftheCompanyaspersection198oftheCompaniesAct,2013payablebywayofsalaries,allowances,perquisites,commissionasdeterminedbytheNominationandRemunerationCommitteefromtimetotime.

(b)MinimumRemunerationincaseoflackorinadequacyofprofits:

WhereinanyfinancialyearduringthecurrencyofthetenureofManagingDirector,profitsareinadequate,remunerationshallbepaidasunder;

1.RemunerationpayablenotexceedingthelimitsprescribedunderSectionII,PartIIofScheduleVoftheCompaniesAct,2013,basedon theeffectivecapitalof theCompanyand inaccordancewith theapprovalof theNominationandRemunerationCommitteeattherelevantpointoftime.2.PerquisitesshallbevaluedasperprovisionsofIncomeTaxRules.3.ExecutiveDirectorshallnotbeentitledtoanysittingfeeforattendingmeetingsofBoardorCommittee.

There-appointmentandremunerationproposedfulfiltheconditionsstipulatedinScheduleVoftheCompaniesAct,2013andhenceapprovalofCentralGovernmentisnotrequired.Acopyoftheagreementcontainingthetermsandconditionsofre-appointmentofShri.M.R.KrishnanisavailableforinspectionwithoutanyfeebytheMembersattheRegisteredOfficeoftheCompanyduringbusinesshoursonanyworkingdaypursuanttoprovisionsofSection190oftheCompaniesAct,2013.

InformationrequiredunderSectionII,PartIIofScheduleVofTheCompaniesAct,2013.

Shri.M.R.Krishnan,aged53yearsisthesonofShri,M.N.Ramakrishnan(Late),hasaBachelorsDegreeinElectricalEngineeringandhasmorethan30yearsofprofessionalexperienceintheoverallmanagerialandmarketingareas.Heholds521,915sharesrepresenting21.90percentofpaidupsharecapitaloftheCompany.

1.GeneralInformation

NatureofIndustry ElectronicSurveillanceSystems

Date or expected date of commencement of commercial production

Companywasincorporatedon05thFebruary1990andtheCertificateofCommencementofBusinesswasdated14th November1990.

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

Foreigninvestmentsorcollaborations,ifany Nil

II.Informationabouttheappointee

Background details Shri.M.R.KrishnanistheExecutiveDirectoroftheCompany

Pastremuneration

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.

PecuniaryrelationshipdirectlyorindirectlywiththeCompany,orrelationshipwiththemanagerialpersonnel,ifany

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.

IVDisclosure:Asrequired,informationisprovidedunderCorporateGovernanceSectionofAnnualReport2016.

None of the Directors and Key Managerial Personnel except ShriM.R.Krishnan as appointee and Shri.M.R.Subramonian,ManagingDirectorandShriM.R.Narayanan,DirectorasrelativesareconcernedorinterestedintheResolution

ByorderoftheBoardofDirectors

ForAdtechSystemsLimited

sd/-

Place:Trivandrum S.BALAMURALI

Date:20.08.2016 CompanySecretary

CIN L33111TN1990PLC018678

RegisteredOffice

No 18,3rd Floor, RMS Apartments

12,Gopalakrishna Road

T.Nagar, Chennai 600 017

Tele fax 044 28150967

E-mail:[email protected]

Website:www.adtechindia.com


13

DIRECTORS’ REPORT FOR THE FINANCIAL YEAR 2015-2016

To

TheMembers

YourDirectorshavepleasureinpresentingthe25thAnnualReportonthebusinessandoperationsoftheCompanytogetherwiththeAuditedStatementofAccountsfortheyearended31stMarch2016

Financial Highlights of the Company fortheyearunderreviewareasunder

(Rupees in Lakhs)

ParticularsYear ended 31st March

2016Year ended 31st March

2015

Turnover 4395.72 6463.25

Profit/(Loss)beforetaxation 452.62 960.72

Less:TaxExpense 149.88 316.47

Profit/(Loss) after tax 302.37 644.25

Transfer to General Reserve 30.40 64.42

ProposedDividendonEquityShares@30percent 59.57 71.48

Dividend Tax 12.13 14.55

State of the Company’s Affairs and Future Outlook

HighlightsoftheCompany’sperformancefortheyearunderreviewareasunder

¾ Revenuefromoperationsdecreased30.10percenttoRs.4395.72lakhsduetosharpdropexportsto1049.33lakhs.

¾ Profitbeforetaxesdecreasedby51.71percenttoRs.452.62lakhs

¾ Profitaftertaxes(NetProfit)decreasedby53.07percenttoRs.302.27lakhs

TheCommercialIndustrialdivisionoftheCompanypostedmoreorlessstagnantgrowth.

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

DebentureRules,2014)4. DisclosureregardingissueofSweatEquitySharesasspecifiedinRule8(13)ofCompanies(ShareCapitalandDebenture

Rules, 2014) 5. ReceiptofCommissionorRemunerationbytheManagingDirectornortheWhole-timeDirectorsoftheCompanyfrom

subsidiaries,sincetheCompanydoesnothaveanysubsidiary.6. No significantormaterial orderwhich impact thegoing concern status andCompany’soperations in futurewere

passedbytheRegulatorsorCourtsorTribunals.ExtractofAnnualReturn,informatMGT-9,forthefinancialyear2015-16isannexedtotheBoard’sreportasAnnexure-B

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


15

DIRECTOR’S RESPONSIBILITY STATEMENTYourDirectorsstatethat

(a) InthepreparationofannualaccountsfortheyearendedMarch31,2016,theapplicableaccountingstandardsreadwith requirements set out under Schedule III to the Companies Act, 2013, have been followed and there are nomaterialdeparturesfromthesame;TheDirectorshaveselectedsuchaccountingpoliciesandhaveappliedthemconsistentlyandmadejudgementsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyasonMarch31,2016andoftheprofitoftheCompanyfortheyearendedonthatdate;

(b) TheDirectorshavetakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;

(c) TheDirectorshavepreparedtheannualaccountsona‘goingconcern’basis;(d) TheDirectorshavelaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancial

controlsareadequateandareoperatingeffectively;and(e) TheDirectorshavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthat

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

CompanycontinuestoaccordhighprioritytoconservationofEnergy.Systemsareinforcetocloselymonitorenergyusage.


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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.

DisclosurespertainingtoremunerationandotherdetailsasrequiredunderSection197(12)oftheCompaniesAct,2013readwithRule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,areprovidedinAnnexureD. YourCompanydoesnothaveanysubsidiaries,jointventuresorassociatesandtherearenodetailstobedisclosed.

RISK MANAGEMENT POLICY

YourCompanyhasconstitutedariskmanagementcommitteecomprisingoftheManagingDirector,ExecutiveDirector,CompanySecretary,ChiefFinancialOfficerandHeadofMarketingandwhichassiststheBoardofDirectorsinoverseeingandapprovingtheCompany’senterprisewideriskmanagementframeworkandtobeinaconstantwatchmodesoastoidentifyallrisksthattheOrganisationfacesvizfinancial,strategic,market,liquidity,security,property,legalandregulatory.ThereisaconstantprocessofmanagementandreportingofprincipalrisksanduncertaintiesintheCompany.

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.

INTERNAL FINANCIAL CONTROLS

TheCompanyhasinplaceadequateinternalfinancialcontrolswithreferencetofinancialstatements.Duringthefinancialyear,suchcontrolsweretestedandnomaterialweaknessinthedesignoroperationwereobserved.InternalAuditorsM/sRoyVargheseandAssociates,areputedauditteamconfirmsthattheactivitiesareincompliancewiththeCompaniespoliciesandthatnomaterialdeviationsweredetected.InternalAuditorsreviewsystemsandoperationsoftheCompanyandensurethattheCompanyisfunctioningwithinthelimitsofallapplicablestatutes.Anyinternalcontrolweaknesses,non-compliancewithstatutesandsuggestionsonimprovementofexistingpracticesformpartofinternalauditreport.TheAuditcommitteereviewstheinternalauditreportandcompliancereportandensuresthattheobservationspointedoutinthesereportsareaddressedinatimelyandstructuredmannerbytheManagement.TheInternalAuditreportisalsoreviewedbytheStatutoryAuditors.


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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.

TheBoardofyourCompanyconsistsofsixdirectorsasonthedateofthisreportasfollows

Name of Director Category

Shri.M.R.Subramonian,ManagingDirector

ExecutiveDirectorsShri.M.R.Krishnan,ExecutiveDirector

Shri.M.R.Narayanan,Chairman NonExecutive–NonIndependentDirectorShri.N . Suresh

Non-ExecutiveIndependentDirectorsShri.K.Manmathan Nair

Shri.P.K.AnandavallyAmmal

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

Duringtheyearunderreview,therehasbeennochangeinDirectorsorKeyManagementPersonnel.

FollowingpersonsaretheKeyManagerialPersonsoftheCompanyasrecordedbytheBoard1. Shri.M.R.Subramonian -ManagingDirector2. Shri.S.Balamurali -CompanySecretary&ComplianceOfficer.3. Shri.P.VinayaChand -ChiefFinancialOfficer.

WOMAN DIRECTOR

PursuanttotheprovisionsofSection149oftheCompaniesAct,2013andclause49oftheSEBI(ListingobligationandDisclosureRegulation)Regulation,2015,Company shall haveat leastoneWomanDirectoron theBoardandaccordingly,yourBoardhasMsP.K.AnandavallyAmmalasWomanDirector.

DeclarationbyIndependentDirector(s)andre-appointment,ifany

The Company has three Independent Directors on the Board. The Company has received declaration from each


18

IndependentDirectoroftheCompanyunderSection149(7)oftheCompaniesAct,2013on01stApril2015thattheymeetthecriteriaofindependenceaslaiddowninSection149(6)oftheCompaniesAct,2013andsubsequentlythesamewasplacedattheBoardMeetingheldon30thMay2015.

AdeclarationbytheManagingDirectorconfirmingreceiptofthisdeclarationfromIndependentDirectorsisannexedto this report as Annexure A

COMPANY’S POLICY ON DIRECTOR’S APPOINTMENT AND OTHER MATTERS AS PROVIDED UNDER SECTION 178 (1) AND 178 (3) OF THE COMPANIES ACT, 2013.

TheCompanyhasformulatedafamiliarizationprogrammeforitsDirectorswhichgivesproperguidanceintothehistoryoftheCompany,itspromoters,performanceoftheCompanyoverthepreviousyears,productsandservicesdealtwithbytheCompany,itsAuditorsandthetopmanagement.ThefamiliarizationprogrammeispostedonthewebsiteoftheCompany.Duringtheyear,theCompanyhadconductedarefresherprogrammeforitsIndependentDirectors.

PolicyforbringingdiversitytotheBoardincludesthefollowing

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.

TheCommitteemetonceduringthefinancialyearon12September2015.ThecompositionoftheNominationandRemunerationCommitteeisasunder.Allthecommitteemembersattendedthemeetingheldon12thSeptember2015.

NameoftheMembersShri.N.Suresh Chairman

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

(i)CriteriaforSelectionofDirectors

BeforemakingarecommendationtotheBoardforappointmentofanyDirector,theCommitteeshallensurethat

(a) The candidate possesses appropriate skills experience and knowledge in one or more fields of managerial/


19

business/administrative/legal/financequalificationsandexperienceovertwodecades;

(b) ThecandidateshallbefreefromanydisqualificationasprovidedunderSections164and167oftheCompaniesAct,2013;

(c) InthecaseofappointmentofanIndependentDirector,thecandidatemeetstheconditionsofbeingindependentasstipulatedunderCompaniesAct,2013andtheSEBI(ListingobligationandDisclosureRegulation)Regulation,2015.

(d) Thecandidatealsocomplieswiththe“FitandProper”criteriaaslaiddownbythepolicyoftheCompany.

(ii)CriteriaforSelectionofSeniorManagementPersonnel

ThetermSeniorManagementshallhavethesamemeaningasprovidedundertheexplanationtoSection178oftheCompanies Act, 2013

The Committee shall, beforemaking any recommendation to the Board for appointment, should ensure that thecandidatehastheattributessetforthbelow

(a) Thecandidateshouldhaveaminimumexperienceof10yearsinanyoftheareasvizelectronicsecurityrelated,financialmanagement,legal,sales,marketing,procurement,research,technicaloperationsorsuchotherareaswhichintheopinionoftheCommitteearerelevantfortheCompany’sbusiness;and

(b) Thecandidateshouldpossessqualitiesthatdemonstrate leadershipskills,effectivecommunicationskills,hardwork,commitmentandsuchotherattributeswhichintheopinionoftheCommitteeareintheinterestoftheCompany.

TheCommitteemakesitsrecommendationtotheBoardifitfindsthatacandidatemeetsthecriteriaforappointment.

TheBoardofDirectorshascarriedoutanannualevaluationofitsownperformance,itsCommitteesandindividualDirectorspursuanttotheprovisionsofSection178(3)oftheCompaniesAct,2013.AlltheDirectorshaveprovidedinputstothequestionnaireseekinginformationoncriteriasuchasBoardCompositionandstructure,BoardProcessesandprocedures,effectivenessoftheBoard,etc

The Board andNomination and Remuneration Committee reviewed the performance of the individual Directorsinteralia,onthebasisofunderstandingandknowledgeofthemarketinwhichtheCompanyisoperating,abilitytoappreciatetheworkingoftheCompanyandthechallengesitfaces,attendancetomeetings,extendofparticipationandinvolvementinthemeetingsandabilitytoconveyone’sviewsandflexibilitytoworkwithothers.TheperformanceoftheCommitteeswasevaluatedbythebasedonthecompositionoftheCommittees,effectivenessoftheCommitteemeetingswithrespecttothetermsofreferenceandconductofthemeetingsandtheproceduresfollowed.

SeparatemeetingofIndependentDirectorswasconductedduringtheyear,toreviewtheperformanceoftheBoardasawhole,performanceofNonIndependentDirectorandChairmanandassessthequality,quantity,timelinesofflowofinformationfromtheManagementtotheBoardofDirectors.

REMUNERATION POLICY

TheCommitteehasformulatedpoliciesonremunerationofDirectors,KMPandotheremployees,featuresofthesameare as under

(i) RemunerationofManagingDirectorandExecutiveDirector

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

(ii) RemunerationtoNonExecutiveDirectors

RemunerationtoNonExecutiveDirector ispaidsubjecttothe limitsstipulatedundertheCompaniesAct,2013andbasedonlevelofparticipationintheaffairsoftheCompany.

RemunerationtoIndependentDirectorsisrestrictedtosittingfeesforattendingmeetingsoftheBoardofDirectors .

TheCompanydoesnotatpresenthaveaprovisionofstockoptions.


20

(iii) RemunerationofSeniorManagementPersonnelandKMP

TheRemunerationoftheSeniorManagementPersonnelandKMPshallbeinaccordancewiththePolicyoftheCompanyasisapplicabletotheemployees.Performanceofthebusiness/functionunderhiscontrolisalsoconsideredwhiledecidingremuneration.

DetailsofremunerationpaidtoDirectorsandKMParementionedelsewhereinthisreport.

AuditCommittee

CompositionoftheAuditCommitteeisasfollows

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.

ThetermsofreferenceofAuditcommitteeinaccordancewithSection177(4)oftheCompaniesAct,2013andthelistingagreementareasunder

1. Therecommendationforappointment,remunerationandtermsofappointmentofauditorsoftheCompany;2. Review and monitor the auditor’s independence and performance, and effectiveness of audit process and

discussionsthereon;3. Examinationofthefinancialstatementandtheauditor’sreportthereon;4. Approvaloranysubsequentmodificationoftransactionsofthecompanywithrelatedparties;5. Scrutinyofinter-corporateloansandinvestments;6. ValuationofundertakingsorassetsoftheCompany;7. Evaluationofinternalfinancialcontrolsandriskmanagementsystems;8. Monitoringtheenduseoffundsraisedthroughpublicoffersandordebt;9. Discusssionwithinternalauditorsofanysignificantfindingsandfollowuptheron;10. ToreviewthefunctionsofWhistleBlowermechanism;11. Tocarryoutsuchotherfunctionsasmaybereferredtoit.

TherewasnosituationwheretheBoardhasnotacceptedtherecommendationoftheAuditCommittee.

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.


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AUDITORS REPORT

TherearenoqualificationsoradverseremarksmentionedintheAuditorsReportforthefinancialyear2015-16exceptthementionofadelayof53daysintransferringtheunpaiddividendfortheyear2007-08ofRs.18400totheInvestorsEducationandProtectionFund(IEPF).TheCompanyhasexplainedthatthedelaywasduetoabankreconciliationissueandcorrespondingdelayinpreparinglistofunclaimedshareholders.Thenotesonaccountsformingpartoffinancialstatementsareselfexplanatory.

SECRETARIAL AUDITORS REPORT

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.

ForandonbehalfoftheBoardofDirectors

sd/PlaceTrivandrum M.R.NarayananDate 30.05.2016 Chairman


22

ANNEXURE A

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.

ForanonbehalfoftheBoardofDirectors

Sd/-Trivandrum M.R.Subramonian30thMay2016 ManagingDirector


23

Annexure BForm No. MGT-9

EXTRACT OF ANNUAL RETURN as on the financial year ended on 31.03.2016[Pursuant tosection92(3)of the Companies Act, 2013 and rule 12(1) of the

Companies (Management andAdministration) Rules,2014]

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

NIC Code of the Product/ service

%total turnover of the company

1 Supply,Installation,Testing,Commissioning,and maintenanceofElectronicSecuritySystems 80200 100

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -NA

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)i) Category-wise Share Holding

Categoryof Shareholders

No. of Shares held at the beginningoftheyear No. of Shares held at the end of the year

%change duringthe year

Demat Physical Total%of Total Shares

Demat Physical Total%of Total Shares

A. Promoters (1) Indian

a) Individualb)Central Govtc) State Govtd) Bodies Corpe) Banks / FIf) AnyOther….

1540565 42010 1582575 66.42 1550660 80540 1631200 68.46 2.04

Sub-total(A) (1):- 1540565 42010 1582575 66.42 1550660 80540 1631200 68.46 2.04


24

(2) Foreigna) NRIs - Individuals b)Other– Individuals c) Bodies Corp.d) Banks / FI e) AnyOther….

Sub-total(A) (2):-

Total shareholding of Promoter (A) = (A)(1)+(A)(2)

Nil

Nil

1540565

Nil

Nil

42010

Nil

Nil

1582575

Nil

Nil

66.42

Nil

Nil

1550660

Nil

Nil

80540

Nil

Nil

1631200

Nil

Nil

68.46

--

-

2.04

B. Public Shareholding

1.Institutionsa) MutualFundsb)Banks/FIc) Central Govt d) State Govtse) Venture Cap-ital Fundsf) InsuranceCompanies g) FIIsh) Foreign Venture Capital Funds i) Others

(specify)

20000 100000 120000 5.04 20000 0 20000 0.84 4.2

Sub-total(B)(1):- 20000 100000 120000 5.04 20000 - 20000 0.84 4.2

2. Non-Institutionsa) Bodies Corp i) Indian

ii) Overseas b)Individualsi) Individual shareholders holding nominal share capital upto Rs. 1 lakh

Nil

66200

350000

186150

350000

252350

14.69

10.59

100000

58305

350000

173660

450000

231965

18.89

9.74

4.2

0.85


25

ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh

c) Others(specify) Sub-total(B)(2):-Total PublicShareholding B)=(B)(1)+ (B)(2)

Nil

66200

86200

77825

613975

713975

77825

680175

800175

3.27

28.54

33.58

Nil

158305

178305

49585

573245

573245

49585

731550

751550

1.19

30.70

31.54

2.08

Nil

2.04

C. Shares held byCustodian for GDRs&ADRs

NA NA NA NA NA NA NA NA NA

Grand Total(A+B+C) 1626765 755985 2382750 100 1728965 653785 2382750 100 -

(ii)Shareholding of Promoters

Sl.no Shareholder’sName Shareholding at the beginningof the year

Share holding at the end of the year

No. of Shares

%of total Shares of the

company

%ofSharesPledged /

encumbered to total shares

No. of Shares

%of total Shares of the

company

%ofSharesPledged /

encumbered to total shares

%changein share holding during theyear

1 M.R.SUBRAMONIAN 556965 23.38 99.98 556965 23.38 99.98 NIL

2 M.R.KRISHNAN 522015 21.90 99.98 522015 21.90 99.98 NIL

3 M.R.NARAYANAN 448565 18.83 99.84 448565 18.83 99.84 NIL

4 THANKAM RAMAKRISHNAN 12710 0.53 0.00 51240 2.15 0.00 1.61

5 SHOBHA KRISHNAN 10290 0.43 0.00 10290 0.43 0.00 NIL

6 RADHANARAYANAN 17705 0.74 0.00 27800 1.17 0.00 0.43

7 ASHA SUBRAMONIAN 8095 0.34 0.00 8095 0.34 0.00 NIL

8 M.S.RAMAKRISHNAN 6230 0.26 0.00 6230 0.26 0.00 NIL

TOTAL 1582575 66.42 0.00 1631200 68.46 0.00 NIL

(iii) Change in Promoters’ Shareholding – 38530sharesweregiftedtoapersoninthepromotergroupbycloserelativewhichrepresents1.62percentofthepaidupcapitaloftheCompany.Therewasalsoaninterse-purchaseof10095sharesapersoninthepromotergroupfromarelativewhichrepresents0.44percentofthepaidupcapitaloftheCompany.Therewerenopurchaseorsaleofsharesfrom/tooutsidethepromotergroup/relatives.


26

(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):

NA NA NA NA

At the End of the year

1. 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


27

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment -NIL

Secured Loans excluding deposits

UnsecuredLoans

Deposits TotalIndebtedness

Indebtedness at the beginning of the financial year Principal Amount Interestduebutnotpaid Interestaccruedbutnot due

Total (i+ii+iii)0.00 0.00 0.00 0.00

Change in Indebtedness during the financial year· Addition

Reduction 0.000.00

0.000.00

0.000.000.00

0.000.00

Net Change 0.00 0.00 0.00 0.00Indebtedness at theend of the financial yeari) Principal Amountii)Interestduebutnotpaid iii)Interestaccruedbutnot due

0.000.000.00

0.000.000.00

0.000.000.00

0

0.00

Total (i+ii+iii) 0.00 0.00 0.00 0.00

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration toManagingDirector,Whole-timeDirectorsand/orManager:(in Rs Lakhs

Sl. no. ParticularsofRemuneration M.R.Subramonian

Managing DirectorM.R.Krishnan

ExecutiveDirectorTotal

Amount

1.

Gross salary(a)Salaryasperprovisions contained in section17(1) of the Income-tax Act, 1961(b)Valueofperquisitesu/s17(2) Income-tax Act, 1961(c)Profitsinlieuofsalaryundersection17(3) Income- tax Act, 1961

33.00 33.00 66.00

2. Stock Option Nil Nil Nil

3. Sweat Equity Nil Nil Nil

4.Commission

-as%ofprofit- others, specify…

Nil Nil Nil

5. Others, please specifyMedical Total (A) 33.00 33.00 66.00

Ceiling as per the Act 66.00 lakhs as per provisions of Schedule V of the Companies Act, 2013


28

B. REMUNERATION TO OTHER DIRECTORS: In Rs Lakhs

Slno. ParticularsofRemuneration

Name of Directors

TotalAmountN Suresh Manmathan Nair

P.K.Ananda

VallyAmmal

1 . Independent Directors· Feeforattendingboardcommitteemeetings

· Commission· Others, please specify

0.30 0.225 0.225 0.75

Total (1) 0.30 0.225 0.225 0.75

2 . Other Non-ExecutiveDirectors· Feeforattendingboardcommitteemeetings

· Commission· Others, please specify

M.R.Narayanan

Nil5.15 5.15

Total (2) 5.15 5.15

Total (B)=(1+2) 5.90

Total ManagerialRemuneration

Rs. 5.90

Overall Ceiling as per the Act Rs.6.17lakhsbeing1%ofnetprofitsoftheCompanycalculatedasperSection198oftheCompaniesAct,2013excludingsittingfeepaid.

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD (in Rs Lakhs)

Sl. no. ParticularsofRemuneration KeyManagerialPersonnel

CEO CompanySecretary CFO Total

1. Gross salary(a)Salaryasper provisions contained in section17(1) of the Income-tax Act, 1961(b)Valueof perquisitesu/s17(2) Income-tax Act, 1961(c)Profitsinlieuof salaryundersection17(3) Income-tax Act, 1961

NotApplicable23.80

Nil

05.99

Nil

29.79

Nil

2. Stock Option Nil Nil Nil

3. Sweat Equity Nil Nil Nil

4. Commission-as%ofprofit

- others, specify…Nil Nil Nil

5. Others- Medical 0.55 0.20 0.75

Total 24.35 6.19 30.54


29

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NILSl.no Type Section Brief

DescriptionDetails of Penalty /Punishment/ Compounding fees imposed

Authority (RD/ NCLT/COURT)

Appeal made if any

A. COMPANY NILPenaltyPunishmentCompounding

B. DIRECTORSPenaltyPunishmentCompounding

C. OTHER OFFICERS IN DEFAULTPenaltyPunishment

Compounding


30

ANNEXURE – C

FORM NO. AOC.2

Formfordisclosureofparticularsofcontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferredtoinsub-section(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionsunderthirdprovisothereto

(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

1.Detailsofcontractsorarrangementsortransactionsnotatarm’slengthbasis

AlltransactionsenteredintobytheCompanyduringtheyearwithrelatedpartieswereonanarmslengthbasis. 2.Detailsofmaterialcontractsorarrangementortransactionsatarm’slengthbasis

ThetransactionsenteredintobytheCompanyduringtheyearwithrelatedpartiesonanarmslengthbasiswerenotmaterialin nature

sd/Trivandrum M.R.Narayanan30May2016 Chairman


31

ANNEXURE D

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

(iii)ThemedianremunerationofemployeesoftheCompanyduringthefinancialyear Rs252.000

(iv)Percentageincreaseinthemedianremunerationoftheemployeesinthefinancialyear2015-16 0

(v)NumberofpermanentemployeesontherollsoftheCompanyason31st March 2016 86

(vi)Explanationonrelationshipbetweenaverageincreaseinremunerationandcompanyperformance

There was no increase in average increaseinremuneration.

(vii)Averagepercentageincreaseinthesalariesoftheemployeesotherthanthemanagerialpersonnelinthelastfinancialyearandthepercentileincreaseinthemanagerialremuneration

There is no increase in salaries of employeesotherthanmanagerialpersonnel and 2.75 percent increase in salaries of managerial personnelduringtheyearwhichisjustifiableastobeinlinewiththeindustrial standards.

(viii)TheKeyparametersforanyvariablecomponentofremunerationavailablebytheDirectors

ThereisnovariablecomponentintheremunerationofDirectors

(ix)Theratiooftheremunerationofthehighestpaiddirectortothatoftheemployeeswhoarenotdirectorsbutreceiveremunerationinexcessofthehighestpaiddirectorduringtheyear NotApplicable

Thepercentageof increase inremunerationofManagingDirector,Director, CompanySecretaryandChiefFinancialOfficerduringthefinancialyear2015-16andthecomparisonofremunerationofeachKMPagainsttheperformanceoftheCompanyare as under

Sl

No

NameofDirector/KeyManagerialPersonnelandDesignation

RemunerationforFYIn Rs Lakhs

%increaseforfinancialyear2015-16

Comparison of the

remunerationagainst the

performance of theCompany

2015-16 2014-15

01 M.R.Subramonian,ManagingDirector 33.00 32.00 3.13% Profitsbeforetax decreased by53.89%andProfitsaftertaxdecreasedby53%

02 M.R.Narayanan,Director 05.90 09.50 (-)37.89%

03 S.Balamurali,CompanySecretary 24.35 21.28 14.42%

04 P.VinayaChand,ChiefFinancialOfficer

6.19 4.80 28.96%

69.44 67.58


32

Variationsin31st March 2016 31st March 2015

MarketCapitalisation NotApplicable NotApplicable

Market Price NotApplicable NotApplicableEarnings Per Share Rs. 12.69 27.04

PriceEarningRatio NotApplicable NotApplicable

NetWorth Rs.3084.12 lakhs Rs.2853.44 lakhs

Note:Duetonon-tradingofCompany’sshares intheregionalstockexchanges,details pertainingtoMarketCapitalisation,MarketPriceandPriceEarningratioarenotavailable.

Duetotheaforementionedreason,percentageincreaseordecreaseinthemarketquotesofthesharesoftheCompanyincomparisontotherateatwhichtheCompanycameoutwiththelastpublicofferisunavailable.

ItisherebyaffirmedthattheremunerationpaidtoKMPandotherdirectorsandemployeesisaspertheRemunerationPolicyoftheCompany.


33

ANNEXURE E

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.

Thecompany’svisionistoberesponsiblecorporateandalsotodemonstrate

environmental, transparent and ethical behavioural practices which contributes towards the economical and sustainabledevelopmentwithinthecompany,corporateworldandsocietyasawhole.

4. SCOPE OF ACTIVITIES:

A. EDUCATION:

i.AwarenessProgrammesongirleducationii.PromotionofProfessionalEducationbywayofconductingseminarsandotheractivitiesiii.AdultliteracyamongstthosebelongingtoBPL

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

Shri.M.R.Narayanan Chairman

Shri.M.R.Subramonian Member

Shri.N.Suresh Member


34

2. AveragenetprofitoftheCompanyforthelastthreefinancialyearsRs.935.72.508

3. CSRExpenditure(2%oftheabove)Rs.18.71.450

4. DetailsofCSRspendforthefinancialyear

a. TotalamounttobespentforthefinancialyearRs.18.71.450

b.AmountspentforthefinancialyearRs.18.35,000

c. Amountunspent,ifanyRs.36,450

d. Mannerinwhichtheamountisspentduringthefinancialyearisdetailedbelow

Sl No

CSRProjectoractivityidentified

Sector in which the projectiscovered

Projectsorprograms (1) Local area or other(2)Specifythe state and district where projectsorprograms was undertaken

Amount outlay(budget)projectorprograms wise

Amount spent ontheprojectsor programs subheading(1)Direct expenditure onprojectsorprograms(2)Overheads

CumulativeExpenditure up to the reportingperiod

Amount Spent(a)DirectOr(b)throughImplementingagency

01 Constructionof proper road over open drainage, maintenance ofbusshelters , childrens park and garden

Environment Schedule VII (iv)

1.Local Area2.Kerala, Trivandrum

Rs.19,00,000 1.Rs.1835000 as direct expenditure2.-

1.Rs.1835000 a.Rs,1835000 as direct expenditure

Declaration

TheimplementationandmonitoringoftheCSRPolicyisincompliancewithCSRObjectivesandpolicyoftheCompany.

sd/ sd/M.R.Subramonian M.R.NarayananManagingDirector Chairman,CSRCommittee


35

AUDITOR’S REPORT

To

The Shareholders,AdtechSystemsLtdChennai-41

REPORT ON THE FINANCIAL STATEMENTS

WehaveauditedtheaccompanyingfinancialstatementsofAdtechSystemsLimited(“theCompany”),whichcomprisetheBalanceSheetasatMarch31,2016,andtheStatementofProfitandLossandCashFlowStatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

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.

AUDITOR’S RESPONSIBILITY

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.

Wehave taken intoaccount theprovisionsof theAct, theaccountingandauditing standardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

WehaveconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

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.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthefinancialstatements.


36

OPINION

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidfinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2016anditsProfitanditsCashFlowfortheyearendedonthat date.

Report on Other Legal and Regulatory Requirements:

1. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”),asamended,issuedbytheCentralGovernmentofIndiaintermsofsub-section(11)ofSection143oftheAct,wegiveinthe“AnnexureA”astatementonthemattersspecifiedinparagraphs3and4oftheorder.

2. Asrequiredbysection143(3)oftheAct,wereportthat,

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.

ForM.R.RAMACHANDRAN&Co CHARTERED ACCOUNTANTS Firm Regn No. 0028735 sd/Date:30thMay2016 M.R.RAMACHANDRAWARRIERPlace:Chennai Partner MEMBERSHIP No.FCA 4601


37

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT

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.

1. (a)TheCompanyhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationoffixedassetsonthebasisofavailableinformation.

(b)Asexplainedtous,allthefixedassetshavenotbeenphysicallyverifiedbythemanagementduringtheyearbutthereisaregularprogrammeofverificationoffixedassetsinaperiodicalmanner,whichinouropinionisreasonable,havingregard to thesizeof theCompanyandnatureof itsassets.Nomaterialdiscrepancieswerenoticedonsuchphysicalverification.

(c)On thebasisofourexaminationof records, thetitledeedsof immovablepropertiesareheld in thenameof theCompany.

2. (a)Asexplainedtous,inventorieshavebeenphysicallyverifiedbythemanagementatregularintervalsduringtheyearandnomaterialdiscrepancieswerenoticedduringsuchverification.Inouropinionthefrequencyofverificationisreasonable.

(b)Inouropinionandaccordingtotheinformationandexplanationsgiventous,theproceduresofphysicalverificationofinventoriesfollowedbythemanagementarereasonableandadequateinrelationtothesizeoftheCompanyandthenatureofitsbusiness.

(c)Inouropinionandonthebasisofourexaminationoftherecords,theCompanyisgenerallymaintainingproperrecordsofitsinventories.Nomaterialdiscrepancywasnoticedonphysicalverificationofstocksbythemanagementascomparedtobookrecords.

3. (a)Accordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationofthebooksofaccount,theCompanyhasnotgrantedorhastakenanyloanssecuredorunsecuredtocompanies,firmsorotherpartiesintheregistermaintainedunderSection189oftheCompaniesAct,2013.

(b)SincethecompanyhasnotgrantedanyloanstopartiesintheregistermaintainedunderSection189oftheCompaniesAct,2013,thequestionofreceiptofprincipalandinterestregularlyisnotapplicable.

©Sincenoloanshavebeengrantedasabove,thereisnooverdueamountandquestionofreasonablestepstakenbythecompanytorecoverprincipalandinterestdoesnotarise.

4. In our opinion and according to the information and explanations given to us, the Company has compliedwith theprovisionsofSection185and186oftheCompaniesAct,2013,asapplicable,inrespectofloans,investments,guaranteesandsecurity.

5. TheCompanyhasnotacceptedanydepositsfromthepubliccoveredundersection73to76oftheCompaniesAct,2013.

6. Asperinformation&explanationgivenbythemanagement,maintenanceofcostrecordshasnotbeenprescribedbytheCentralGovernmentundersub-section(1)ofsection148oftheCompaniesAct,2013.

7. Inrespectofstatutorydues

(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.


38

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

Central Sales Tax Act, 1956

Central Sales Tax and interest for 2010-11

DeputyCommissioner,Appeals,Thiruvanathapuram Rs .15,95,326 Rs. 478,598

Kerala VAT Act, 2003

Kerala Value Added TaxandinterestforFY2010-11

DeputyCommissioner,Appeals,Thiruvanathapuram Rs. 149,260 Rs. 44,778



DeputyCommissioner,Appeals,Thiruvanathapuram Rs.47,21,776 Rs. 14,16,533



DeputyCommissioner,Appeals,Thiruvanathapuram Rs. 38,84,056 Rs. 11,65,217



DeputyCommissioner,Appeals,Thiruvanathapuram Rs. 18,84,438 Rs. 565,332



DeputyCommissioner,Appeals,Thiruvanathapuram Rs. 20,89,713 Rs.626,914

Total Rs.143,24,569 Rs.42,97,372

©Basedonourexaminationoftherecordsandtheinformationandexplanationsgivestous,theCompanyhastransferredanamountofRs.18400lying intheunpaiddividendaccounttotheInvestorEducationandProtectionFund(dividenddeclaredforFY2007-08)whichtransferwasdelayedby53daysfromtheduedateduetodelayinreconcilingdatawithbankstatements,inaccordancewiththerelevantprovisionsoftheCompaniesAct,1956andtherulesframedthereunder.

(a) TheCompanyhasnoaccumulatedlossesatthebeginningofthefinancialyear.Thecompanyhasnotincurredanycashlossesduringthefinancialyearortheimmediatelyprecedingfinancialyear.

8 Basedonourauditproceduresandaccordingtotheinformationandexplanationgiventous,weareoftheopinionthatthecompanyhasnotdefaultedinrepaymentofduestofinancialinstitutionsorbanks.Thecompanyhasnotissuedanydebenturesasofdate.

9. Basedonourauditproceduresandaccordingtotheinformationandexplanationsgiventousandonthebasisofthebooksofaccountsandotherrecordsexaminedbyus,theCompanyhasutilizedthemoneysraisedbywayofpublicissueofsharesandtermloansforthepurposeforwhichtheywereactuallyobtained.

10. Basedonourauditproceduresperformedandaccordingtotheinformationandexplanationsgiventous,wehavenotnoticedorhavenotbeenreportedofanyfraudonorbytheCompanyduringtheyear.

11. Basedonourauditproceduresandaccordingtotheinformationandexplanations,managerialremunerationhasbeenpaidorprovidedinaccordancewiththerequisiteapprovalsmandatedbyprovisionsofSection197readwithScheduleVof the Companies Act, 2013.

12. TheCompanyisnotaNidhiCompany.Therefore,theprovisionsofclause3(xiii)oftheOrderarenotapplicabletotheCompany.

13. Inouropinionandaccordingtotheinformationandexplanationgiventous,alltransactionswiththerelatedpartiesareincompliancewithsection177and188oftheCompaniesAct,2013andthedetailshavebeendisclosedintheFinancialStatementsasrequiredbytheapplicableaccountingstandards.

14. Baseduponthetheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement,thecompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesfullyorpartlyconvertibledebenturesduring the year under review.Accordingly, theprovisionsof clause3(xiv) of the theOrder arenot applicable to theCompany.


39

15. Based upon the audit procedures performed and the information and explanations given by themanagement, thecompanyhasnotenteredintoanynon-cashtransactionswithdirectorsorpersonsconnectedwiththem.Accordingly,theprovisionsofclause3(xv)oftheOrderarenotapplicabletotheCompany.

16. TheCompanyisnotengagedinthebusinessofNon-BankingFinancialinstitutionandishencenotrequiredtoberegisteredunderSection45-IAoftheReserveBankofIndiaAct,1934.

ForM.R.RAMACHANDRAN&Co

CHARTERED ACCOUNTANTS Firm Regn No 002873S

sd/Date:30thMay2016 M.R.RAMACHANDRAWARRIERPlace:Chennai Partner MEMBERSHIP No.FCA 4601


40

ANNEXURE B

TO THE INDEPENDENT AUDITOR’S REPORT

ReportontheInternalFinancialControlsunderClause(i)ofSub-section3ofSection143oftheCompaniesAct,2013(”TheAct)

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofAdtechSystemsLimited(“theCompany”)asofMarch31,2016inconjunctionwithourauditofthefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls:

TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedon“theinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedinGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia”.Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrols thatwereoperatingeffectively forensuring theorderlyandefficient conductof itsbusiness, includingadherenceto company’spolicies, thesafeguardingof itsassets, thepreventionanddetectionof fraudsanderrors, theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancial information,asrequiredundertheCompanies Act, 2013.

Auditors’ Responsibility

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.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolsystemsoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidenceswehaveobtainedaresufficientandappropriatetoprovideabasisforourauditopinionoftheCompany’sinternalfinancialcontrolsystemsoverfinancialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

Acompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposeinaccordancewiththegenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat;

1. Pertain to themaintenanceof records that, in reasonabledetail, accuratelyand fairly reflect the transactionsanddispositionsoftheassetsofthecompany;

2. Providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and

3. Providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.


41

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerroroffraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolsoverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesandproceduresmaydeteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialaspects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2016,basedonthe“internalfinancialcontrolsoverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedinGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia”

ForM.R.RAMACHANDRAN&Co

CHARTERED ACCOUNTANTS

Firm Regn No 002873S

sd/Date:30thMay2016 M.R.RAMACHANDRAWARRIERPlace:Chennai Partner MEMBERSHIP No.FCA 4601


42

Form No. MR-3SECRETARIAL AUDIT REPORT

FORTHEFINANCIALYEARENDED31st MARCH 2016

[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.

Basedonmyverificationofthecompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,theCompanyhas,duringtheauditperiodcoveringthefinancialyearendedon31stMarch,2016compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent, inthemannerandsubjecttothereportingmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheAdtechSystemsLimitedfortheFinancialYearended31stMarch2016accordingtotheprovisionsof: (i) TheCompaniesAct,2013(theAct)andtherulesmadethereunder;

(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;

(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

(iv) TheForeignExchangeManagementAct,1999andtheRulesandRegulationsmadethereundertotheextentofForeignDirectInvestment(FDI)andoverseasdirectinvestmentandExternalCommercialBorrowings;

(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-

(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

(b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;

(c) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;


43

(d) TheSecuritiesandExchangeBoardofIndia(EmployeeStockOptionSchemeandEmployeeStockPurchaseScheme)Guidelines,1999;

(e) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;

(f) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwiththeclient;

(g) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;and

(h) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998.

(vi) Otherlawsasmaybespecificallyapplicabletothecompany

Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing

i. SecretarialStandards1issuedbytheInstituteofCompanySecretariesofIndia

ii. SecretarialStandards2issuedbytheInstituteofCompanySecretariesofIndia

iii.TheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015

iv.TripartiteAgreementbetweentheCompany,Registrar&TransferAgentandDepositories

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.

AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvanceandasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

Majoritydecisioniscarriedthroughwhilethedissentingmembers’viewsarecapturedandrecordedaspartoftheminutes.

Ifurtherreportthatthereareadequatesystemsandprocessesinthecompanycommensuratewiththesizeandoperationsofthecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Ifurtherreportthatduringtheauditperiodthecompanyhasnotenteredintoanyofthefollowingtransactions:

i. Public/Right/Preferentialissueofshares/debentures/sweatequity,etc;

ii. Redemption/buy-backofsecurities;

iii. Majordecisionstakenbythemembersinpursuancetosection180oftheCompaniesAct,2013;

iv. Merger/amalgamation/reconstruction,etc;

v. Foreigntechnicalcollaborations.

Place:Trivandrum sd/Date:06.08.2016 KrishnaPrasadRS

CompanySecretaryinPracticeFCSNo:7080,CPNo.:7379


44

ADTECHSYSTEMSLIMITED2/796, First Floor, Sakshi Towers, First Main Road, Kazura Gardens, Neelankarai, Chennai 600 041

Balance Sheet as at 31st March, 2016

Note As at the end As at the end No 31st March 2016 31st March 2015

A EQUITY AND LIABILITIES

1 Share holders' Fund(a) Share Capital 3 2,77,81,490.00 2,77,81,490.00(b)ReservesandSurplus 4 2,80,630,558.86 2,575,62,792.51

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

Total 4,72,150,139.06 5,192,78,849.62

B ASSETS1) Non Current Assets

(a) Fixed Assets(i)TangibleAssets 11 21,371,526.19 1,98,91,603.24(b)OtherNonCurrentsAssets 12 0.00

2) Current Assets(a) Inventories 13 90,942,411.10 1,278,40,914.50(b)TradeReceivables 14 1,02,679,551.39 1,418,01,454.21(c)Cash&CashEquivalents 15 1,08,332,501.98 1,097,38,022.69(d)ShortTermLoans&Advances 16 1,48,824,148.40 1,200,06,854.98

Total 4,72,150,139.06 5,192,78,849.62

intermsofourreportattached forandonbehalfoftheBoard of Directors

forM.R.Ramachandran&CoChartered AccountantsFirm Regn. No. 0028735

sd/ sd/ sd/

M.R.Subramonian M.R.KrishnanM.R.RamachandraWarrier Managing Director ExecutiveDirectorPartnerMembershipNumberFCA4601 sd/ sd/Place:Chennai S.Balamurali P.VinayaChandDate:30May2016 CompanySecretary ChiefFinancialOfficer


45

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

1&2

forandonbehalfoftheBoard of Directors

intermsofourreportattachedforM.R.Ramachandran&CoChartered Accountants Firm Regn. No. 0028735

sd/ sd/M.R.Subramonian M.R.Krishnan

sd/

Managing Director ExecutiveDirector

M.R.RamachandraWarrierPartner sd/ sd/MembershipNumberFCA4601 S.Balamurali P.VinayaChandPlace:Chennai CompanySecretary ChiefFinancialOfficerDate:30May2016


46

Note 3 : Share Capital

As at 31 March 2016

As at 31 March 2015

Authorised Shares36,00,000EquitySharesofRs.10each

36,000,000.00

36,000,000.00

Issued,Subscribedandfullypaidupshares 23,827,500.00

23,827,500.00

Total Issued Subscribed and fully paid up Shares 23,827,500.00

23,827,500.00

a. Reconciliation of shares outstanding at the beginning and at the end of the reporting period

Noshareswereissuedduringthereportingperiodandhencereconcilationofthesharesoutstandingatthebeginningandattheendofthereportingperiodisnotapplicable

b.Terms/rightsattachedtoequityshares

TheCompanyhasonlyoneclassofsharesvizequityshareshavingaparvalueofRs.10/-pershare.Eachholderofequityshareisentitledtoonevotepershare.TheCompanydeclaresandpaysdividendinIndianRupees.ThedividendproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeetingandinterimdividendisdeclared.bytheBoardofDirectorsattheirdutyconvenedmeeting.

Duringtheyearended31stMarch2016,theamountofinterimdividendpersharedistributedtoshareholdersisRs.2.50pershare.(Previousyearended31stMarch2016dividendwasRs.3.00/-pershare)

In theeventof liquidationof theCompany, theholdersofequity shareswillbeentitled to receive remainingassetsof theCompany,afterdistributionofallpreferentialamounts.Thedistributionwillbeinproportiontothenumberofequitysharesheldbytheshareholders

c.Nobonusshareswereissuedandnoshareswereissuedforconsiderationotherthancashduringtheperiodoffiveyears

immediatelyprecedingthereportingdate.

d.Detailsofshareholdersholdingmorethan5%SharesintheCompany(EquitysharesofRs.10eachfullypaid)

As at 31st March 2016 As at 31st March 2015

No. of Shares held % of Holding No. of Shares held% of

Holding

M.R.Narayanan 448565 18.83 448565 18.83

M.R.Subramonian 556965 23.37 556965 23.37

M.R.Krishnan 522015 21.91 522015 21.91

TopsSecurityLimited 350000 14.69 350000 14.69

e.ForfeitedShares(AmountOriginallypaidup) 39,53,990.00 39,53,990.00


47

Note 4 : Reserves and Surplus

Reserves & Surplus 31-Mar-16 31-Mar-15

a. Capital Reserves

Balanceasperlastfinancialstatements 53,37,500.00

53,37,500.00 (+)CurrentYearTransfer

Closing Balance 53,37,500.00

53,37,500.00

b. Revaluation Reserve

Balanceasperlastfinancialstatements 17,220.00

17,220.00 (+)CurrentYearTransfer

(-)WrittenBackinCurrentYear

Closing Balance 17,220.00

17,220.00

c. General Reserve

Opening Balance 30,554,744.00 24,112,283.00AddTransferfromcurrentyearprofits 3,040,463.00 6,442,461.00(-)WrittenBackinCurrentYear

Closing Balance 33,595,207.00 30,554,744.00

d Surplus/(deficit) statement in the statement of Profit and Loss

Balanceasperlastfinancialstatements 221,653,328.51 172,744,956.46Add:Profitforthecurrentyear 30,237,355.35 64,424,671.07Less:Appropriations

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

Netsurplusinthestatementofprofitandloss 241,680,631.86 2216,53,328.51

Total Reserves and Surplus 280,630,558.86 2575,62,792.51


48

Note5:LongTermBorrowings As at 31 March 2016

As at 31 March 2015

Total Long term Borrowings 0.00 0.00

Note6:DeferredTaxLiabilities(Net)

DeferredTaxLiability(openingbalance) 37,07,447.70 37,07,447.70

Less:Impactofdifferencebetweentaxdepreciation 36,886.00 1,11,701.00

anddepreciation/amortisationchargedforfinancialreporting

DeferredTaxLiabilities(Net) 3,632,632.70 35,95,746.70

Note 7 Short Term Borrowings

Short term loan Unsecured 0.00 0.00

Note8:TradePayables

(a) Creditors for Purchases 28,731,219.93 1055,27,965.25

(b)CreditorsforExpenses 8,098,931.45 77,51,595.04

©Advanceagainstsupplyofgoods 1,295,506.83 15,64,694.39

Total Trade Payables 38,125,658.21 1148,44,254.68

Note 9 Other Current Liabilities

CurrentmaturitiesofLoanBorrowings 0.00 0.00 (a)Statutoryduespayable 4,868,712.29 40,73,804.73

(b)EmployeerelatedPayables 2,089,490.00 20,02,443.00

(c) Income received in advance 221,309.00 6,61,119.00

Total Other current liabilities 7,179,511.29 67,37,366.73


49

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50

Note 10 Short Term Provisions 31 March 2016 31 March 2015

(a) Provision for employee benefits

Provision for Leave Encashment (non funded) 17,04,850.00 16,24,650.00

Provision for Bonus 22,22,000.00 26,43,650.00

Totalprovisionsforemployeebenefits 39,26,850.00 42,68,300.00

(b) Other Provisions

ProvisionforTaxation 1108,73,438.00 958,85,438.00

Provision for Dividend 0.00 71,48,250.00

Provision for Dividend Tax 0.00 14,55,211.00

Total other provisions 1108,73,438.00 1044,88,899.00

Total Short Term Provisions 1148,00,288.00 1087,57,199.00

Note 12 Non current assets 0.00 0.00

Note 13 : Inventories

Inventories at Trivandrum

EASSystems 568,99,824.10 981,55,694.97

InvueSystems 202,63,842.23 198,47,886.34

CCTV&AlarmSystems 32,92,766.96 57,68,878.20

AccessControlSystems&Cables 15,92,864.26 19,67,432.46

Solar500KWWorkInProcess 42,71,319.40 0.00

VerticalWindMill 2,49,194.00 0.00

Total Inventories at Trivandrum 865,69,810.95 1257,39,891.97

Inventories at Delhi & Chennai 43,72,600.15 21,01,022.53

Total Inventories 909,42,411.10 1278,40,914.50

Note 14 : Trade Receivables

ReceivablesOutstandingforaperiodmorethan6months - unsecured, Considered good

70,13,196.60 105,33,611.39

ReceivablesOutstandingforaperiodmorethan6months-Unsecured,Doubtful 6,10,559.89 30,587.00

ReceivablesOutstandingforaperiodlessthan6months- Unsecured, Considered Good

950,55,794.90 1312,37,255.82

Total Trade Receivables 1026,79,551.39 1418,01,454.21

Note 15 Cash and Cash Equivalents

Cash in Hand 56,504.46 85,544.46

Balanceswithscheduledbanksoncurrentaccounts 558,80,840.10 497,36,044.99

Balanceswithscheduledbanksondepositaccounts 523,95,157.42 599,16,433.24

TotalCashandCashEquivalents 1083,32,501.98 1097,38,022.69


51

Note 16 Short Term Loans and Advances 31 March 2016 31 March 2015

Advance for Expenses,Unsecured, considered good 4,36,639.38 96,834.66

Advance for Purchases,Unsecured, considered good 35,65,845.83 2,21,009.05

EarnestMoneyDeposit 6,92,785.00 1,41,775.00

Intercorporate Deposit with Muthoot Capital Services Ltd

140,85,420.00 130,00,000.00

SecurityDeposit 45,91,843.94 45,09,900.82

Rental Deposits 6,78,440.00 8,57,000.00

Tax Deducted at Source 96,79,000.41 72,63,386.32

Advance Income Tax 1103,25,005.00 886,33,865.00

Advanceforlandtorelatedparty(unsecured,considered good) *

33,05,662.00 33,05,662.00

Other Loans and advances, Unsecured, considered good

14,63,506.84 19,77,422.13

Total Short Term Loans and advances 1488,24,148.40 1200,06,854.98

* Ref note 2

Note 17 Revenue from Operations

(a) Revenue from Sale of Products

Interstate Sales -Kerala 2529,86,052.12 2635,37,748.02

Interstate Sales -Tamilnadu 10,98,500.00

Interstate Sales- Delhi 13,81,342.00 36,60,814.00

Local sales-Kerala 182,11,011.00 211,14,614.40

Local Sales Tamilnadu 88,97,557.00 36,05,950.00

Local Sale -Delhi 22,35,925.00 38,04,535.00

Export sales 1049,33,482.76 2940,08,747.76

3897,43,869.88 5897,32,409.18 Less Sales Returns Revenue from Sale of Products 3897,43,869.88 5897,32,409.18

(b)RevenuefromSaleofServiceandMaintenance

AMC received 211,72,171.52 155,30,204.37

Forwarding&HandlingCharges 1,87,075.80 2,04,565.01

Income from services 12,03,386.88 11,67,189.81

InstallationChargesreceived 120,96,586.00 137,72,155.00

MarketingIncentivesonDirectOrders 56,76,417.00 137,30,243.00

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


52

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

ChangeinInventoryofstockintrade -401,08,881.80 231,91,702.50

Note 21 :Employee benefits expense

Bonus 22,60,000.00 26,45,150.00

ESIContribution 1,93,514.00 2,26,658.00

Gratuity 1,52,757.00 7,09,912.00

ContributiontoWorkersWelfareFund 9,120.00 7,360.00

Leave Encashment 7,40,535.00 9,43,915.00

Leave Travel Concession 3,69,371.00 5,99,886.00

Medicalreimbursement 12,32,050.00 10,48,558.81

PFContribution 20,04,049.00 16,48,733.00

Salaries - Directors 71,15,250.00 70,67,420.00

Salaries - Others 287,11,164.00 248,52,453.00

TOTAL 427,87,810.00 397,50,045.81

Note 22 . Finance Charges

InterestPaidonoverdraft 67,778.00 0.00Bank Charges and Commission 1,31,443.54 1,45,759.36

TOTAL 1,99,221.54 1,45,759.36


53


31 March 2016 31 March 2015

Note 23 : Other Expenses

(a). Administrative Expenses

AMC Paid 2,70,229.00 72,661.00

AnniversaryExpenses 0.00 2,12,479.00

Audit Fee 2,87,500.00 2,80,900.00

Tax Audit Fee 1,14,500.00 1,12,360.00

Books and Periodicals 27,374.00 60,732.00

ConsultancyCharges 2,59,120.00 4,01,954.00

Conveyance 14,40,152.50 15,39,798.79

CorporateSocialResponsiblityExpenses 18,35,000.00 10,91,136.00

Demat Charges 48,835.00 40,965.00

ElectricityandWaterCharges 5,56,917.00 4,45,116.00

Filing Fee 42,000.00 4,200.00

Foreign Travel Expenses 22,18,665.54 20,74,092.93

Insurance 1,94,082.50 1,99,728.98

Internal Audit Fee 2,28,500.00 2,24,720.00

ListingFee 7,079.00 25,394.00

Loss on sale of Motor Car 0.00

Membershipfee 1,53,035.00 3,75,416.00

OfficeExpenses 4,95,654.34 2,11,004.00

PoojaExpenses 7,424.00 2,153.00

Postage and Telegram 86,548.00 38,061.00

PrintingandStationery 5,28,470.00 5,11,184.50

Professional Charges 6,80,950.10 2,67,584.80

Rent A/c 20,92,160.00 18,26,200.00

Repairs and Maintenance 8,28,458.00 4,52,842.00

Sales tax Expenses 15,431.00 47,250.00

Secretarial Audit Fee 70,000.00

SecurityServiceCharges 1,52,874.30 1,50,573.00

Service Charges 10,98,154.00 15,61,147.00

Service Expenses 10,79,182.00 10,22,775.36

SoftwareLicenseFee 91,800.00

StaffWelfareExpenses 3,02,754.00 2,31,648.50

Telephone, Fax and Email 14,77,757.87 15,12,412.01

Training Expenses 1,24,350.00 2,56,909.00

Travelling Expenses 53,15,961.72 62,32,214.36

TOTAL 220,39,118.87 215,77,412.23


54


31 March 2016 31 March 2015

(b) Selling Expenses

Advertisement 2,92,977.00 1,83,091.00

BadDebtswrittenoff 2,00,897.11 11,27,248.60

Carriage Outwards 30,85,247.32 33,44,921.46

Commission 67,49,511.00 52,84,675.82

Courier Charges 2,66,947.18 3,14,930.76

ExhibitionExpenses 5,32,357.00 4,49,656.00

Freight on Export 14,31,781.34 33,59,830.95

InstallationExpenses 20,81,720.79 30,77,935.31

LiquidatedDamages 2,34,964.00 0.00

MarketingExpenses 1,62,071.00 5,95,205.00

MarketingIncentive 1,62,293.00 96,245.00

Packing Materials 1,15,806.00 96,754.70

Rates and Taxes 73,325.00 1,18,536.00

RebatesandDiscount 71,047.13 17,431.58

SalesPromotionExpenses 0.00

Seminar Expenses 23,385.00

Tender Form Purchased 6,627.00 25,315.00

TOTAL 154,67,571.87 181,15,162.18

Total Other Expenses 375,06,690.74 396,92,574.41

Note24:EPS

BasicandDilutedEPSiscalculatedbydividingthenetprofitaftertaxesfortheyearunderreviewwiththenumberofoustandingshares

Netprofitaftertaxes 302,37,355.35 644,24,671.07

NumberofShares 23,82,750.00 23,82,750.00

Earnings per Share 12.69 27.04


55

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

sd/M.R.RamachandraWarrrierPartnerMembershipNumberFCA4601

sd/VinayaChandPChiefFinancialOfficer

sd/ sd/M.R.SubramonianM.R.KrishnanManagingDirectorExecutiveDirector

sd/Place:ChennaiS.BalamuraliDate:30May2016CompanySecretary


56

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57

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,

Allassetsandliabilitieshavebeenclassifiedascurrentandnon-currentaspertheCompany’snormaloperatingcycleandothercriteriasetoutintheScheduleIIIoftheCompaniesAct,2013.Basedonthenatureofitsbusinessandoftheservicesprovided,theCompanyhasascertaineditsoperatingcycleas12monthsforthepurposeofclassificationofitsassetsandliabilitiesintocurrentandnon-currentaspertherequirementofScheduleIIIoftheCompaniesAct,2013

TheSignificantaccountingpoliciesfollowedbytheCompanyarestatedbelow.

(a) Disclosure and Presentation of financial statements and use of estimates

PreparationofthefinancialstatementsrequirestheuseofestimatesandassumptionsthataffectthereportedamountofassetsandliabilitiesasattheBalanceSheetdate,reportedamountsofrevenuesandexpensesduringtheperiodanddisclosureofcontingentliabilitiesasatthatdate.Theestimatesandassumptionsusedinthefinancialstatementsarebaseduponthemanagementsevaluationoftherelevantfactsandcircumstancesasthedateoffinancialstatements.Althoughtheseestimatesarebaseduponmanagement’sbestknowledgeofcurrenteventsandactions,actualresultscoulddifferfromtheseestimates.Anyrevisionstotheaccountingestimatesarerecognizedprospectively inthecurrentandfutureyears.Thefinancialstatementsfortheyearended31stMarch2016arepreparedandpresented intheformatprescribedScheduleIIIoftheCompaniesAct,2013.Previousyear’sfigureshasalsobeenreclassifiedinaccordancewiththedisclosureandpresentationrequirementsapplicableforthecurrentyear.

(b) Fixed Assets

Expenditurewhichareofacapitalinnaturearecapitalisedatacost,whichcomprisesofpurchaseprice,importduties,leviesandanydirectlyattributablecostofbringingtheassetstoitsworkingconditionsfortheintendeduse.Noneofthefixedassetshavebeenrevaluedduringtheyearunderconsideration.

(c)] Depreciation

DepreciationonassetsheldforownuseoftheCompanyisprovidedonwrittendownvaluemethodaspertheusefulyearsoflifeoftheassetsandinthemannerprescribedunderScheduleIIoftheCompaniesAct,2013.

TheCompanyhasadoptedthefollowingastheusefulyearsoflifetoprovidedepreciationonitsfixedassetsasprovidedinSchedule II of the Act.


58

Sl No DescriptionoftheAsset Usefulyearsoflife

01 FurnitureandFittings 10years

02 ComputerSystems 3years

03 Tools and Fixtures 5years

04 Power Control Accessories 5years

05 OfficeEquipments 5years

06 Motor Car 8years

07 EPBEX 5years

08 BuildingRenovation 10years

09 Software 3years

[d]InventoryValuation

Inventoriesarestatedatcostornetrealisablevaluewhicheverislessandarebasedonphysicalverificationconductedbythe management.

[e]Cashandcashequivalents(forpurposesofCashFlowStatement]

CashandcashequivalentsintheCashFlowStatementcomprisecashinhand,depositswithbankandcashequivalentswithanoriginalmaturityofthreemonthsorlessheldforthepurposeofmeetingshorttermcashcommitments.

[f]Cashflowstatement

Cashflowsarereportedusingthe indirectmethod,wherebyprofitbeforetax isadjustedfortheeffectsof transactionsofnon-cashnatureandanydeferralsoraccrualsofpastfuturecashreceiptsorpayment.Thecashflowsfromoperating,investingandfinancingactivitiesoftheCompanyaresegregatedbasedontheavailableinformation.

[g] Investments

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.

(b) Monetaryitemsdenominatedinforeigncurrenciesattheyearendandnotcoveredbyforwardexchangecontractsaretranslatedatyearendrates.TheGain/lossonsettlement/reinstatementarecapitalizedifsuchliabilityrelatestoacquisitionoffixedassetsandchargedtorevenueinothercases.

[i]PriorperiodincomeandExtraordinaryitems

Prior period income Rs Nil lakhs (PY Rs.23.63lakhs)represents sundry outstanding unclaimed balanceswritten back torevenueaccountandrecoveryofbaddebts.

[j]Revenuerecognition

1. Revenueonsaleofgoodsonacceptancebythetransfereeofreceiptofgoodsandtermsandconditionsofsale.

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.


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[k]Taxation

Taxexpense(taxsaving)istheaggregateofthecurrentyeartaxanddeferredtaxcharged(Debited)tothestatementofProfitandLossfortheyear.

CurrentincometaxismeasuredattheamountexpectedtobepaidtotheIncomeTaxauthoritiesinaccordancewiththeIncome–taxAct,1961.ProvisionforIncomeTaxfortheperiodcomestoRs.149.88lakhs(PYRs.317.59lakhs).

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.

(iii) LeaveEncashmentBenefit

TheCompanyhasa leaveencashmentpolicywherebyleavenotavailedofcanbecarriedforward/encashedforaperiodnotexceedingfortydays.Theunavailedleavecaneitherbeutilizedbytheemployeeorencashedwithinaperiodof3yearsfromthedateonwhichithasfallendue.Theliabilityonaccountofsuchunavailed/unencashedleavesalaryason31stMarch2016isRs17.05lakhs(PY16.25lakhs)Forwhichprovisionhasbeenmadeintheaccounts.

(iv) Provident Fund

Retirementbenefitintheformofprovidentfundisadefinedcontributionscheme.TheContributionstotheprovidentfundarechargedtotheStatementofProfitandLossfortheyearwhenthecontributionsaredueinaccordancewiththefundrules.TheCompanyhasnoobligationotherthatthecontributionpayabletotheprovidentfund.

(v) TheCompanyalsocontributestotheEmployeesStateInsuranceCorporationonbehalfofitsemployees.

(vi) TheCompanydoesnothaveanyotheremployeeretirementbenefitschemesotherthanthoselistedabove.

(m) SegmentAccountingPolicies

TheCompanyoperatesmainlyinonesinglesegmentvizSupplyandintegrationofElectronicSecuritySystems.Thoughnotstrictlynecessary,theCompanyhas,forasameasureofprovidinggreaterunderstanding,dividedthissegmentintotwovizthe“ElectronicArticleSurveillanceSystems“(EAS)usedforprovidingsecuritytotheretailsegmentandthe“CommercialIndustrial(C/I)forprovidingsecuritysolutionsforindustrialuse.SegmentaccountingpoliciesareinlinewiththeaccountingpoliciesoftheCompany.Thefollowingspecificaccountingpolicieshavebeenfollowedforsegmentreporting.

(i) Segmentrevenueincludessales,serviceandotherincomedirectlyattributabletothesegment.Incomewhichcannotbeallocatedtosegmentsisincludedin“UnallocatedCorporateIncome”.

(ii) Expensesthataredirectlyallocabletosegmentsareconsideredfordeterminingthesegmentresult.Theexpenseswhichrelatetothecompanyasawholeandnotallocabletosegmentsareincludedunder“UnallocableExpenditure”

(iii) Segment assets and liabilities are thosewhich are directly identifiablewith the respective segments. Unallocablecorporateassetsandliabilitiesarethosewhichrelatetothecompanyasawholeandnotallocabletoanysegment.


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(n) Impairment of Assets

TheCompanyhasreviewedthecarryingamountsofassetsateachBalanceSheetdatetoascertainimpairmentbasedoninternalandexternalfactors,Animpairmentlossisrecognizedwhereverthecarryingamountofanassetexceedsitsrecoverableamount.Anasset’srecoverableamountisthehigherofanasset’snetsellingpriceanditsvalueinuse.

IntheopinionoftheManagement,onthebasisofanassessmentofthenetsellingprice,thereisnoimpairmentinthevalueoffixedassetsoftheCompanywithinthemeaningofAccountingStandard-28inImpairmentofAssetsissuedbytheInstituteofCharteredAccountantsofIndia.

(o) Relatedpartytransactions

DisclosuresaremadeaspertherequirementsoftheAccountingStandard18‘RelatedParty’readwiththeclarificationsissuedbytheInstituteofCharteredAccountantsofIndia.

Duringtheyear,theCompanyhasenteredintocertaintransactionswithrelatedparties.ThosetransactionsalongwiththerelatedbalancesasatMarch31st,2016andfortheyearthenendedarepresentedinthefollowingtable:

TheCompanydoesnothaveanysubsidiary.

PromotersandKeyManagementPersonnel Mr.M.R.Subramonian,ManagingDirector Mr.M.R.Krishnan,ExecutiveDirector MrM.R.Narayanan,Chairman S.Balamurali,CompanySecretary P.VinayaChand,ChiefFinancialOfficer

Associates/entitiesownedorsignificantly TransdotPrivateLimitedInfluencedbykeymanagementpersonnelortheir APTMicroSolutionsLimitedRelatives FloatelsIndiaPvtLimited Hoteltek Beverages Pvt Ltd KK Assets Private Limited

Floatels Engineering Pvt Ltd PRHolidayHomesPvtLtd PoovarAyurvedaCentre&HotelsPvtLtd PerumbalamResortsPvtLtd PeldriveSecuritySolutionsPvtLtd Ramakkal Resorts P Ltd Sesa Food P Ltd Star Micronix

Summaryoftransactionswiththeaboverelatedpartiesduringtheyearisasfollows

Amount in Rs Lakhs

Sl No NatureofTransaction(ExcludingReimbursements) Associates KeyManagerial

Personnel/Relative Others Total

01 Sales 2015-162014-15

33.4925.01 - --- 33.49

25.01

02Purchases/services2015 - 20162014-15

0.00

0.22 - --

0.00

0.22

03 PaymenttoKeyManagerialPerson/Relative2015162014-15

111.28

89.25 ----

111.28

89.25


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TheonlymajortransactionwithrelatedpartyduringtheyearisthesaletransactionwithM/sAPTMicroSolutionsLtdforRs.32.83lakhs(Previousyear25.08lakhs)

Balance as on 31st March 2016

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.

FinancialYear AmountUnclaimed

2008-09 39,225.002009-10 25,150.002010-11 79,025.00Interim Dividend 2012 45,300.002011-12 25,400.002012-13 62,040.002013-14 134,475.002014-15 111,300.00

Previousyear’sfigureshavebeenregroupedandreclassifiedwherevernecessarytofacilitateeasycomparison.

[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


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Companyhaspreferredappealsagainsteachassessmentorderandhasgivensecuritydepositof30percentofthedemandbeforetheDeputyCommisioner(Appeals)asperdetailsgiveninthetablebelow.AstheCompanyisconfidentthatitwillbeabletosubmittheexemptionformsbeforetheappellateauthorityandisconfidentofafavourableverdict,itdoesnotfeelthattheamountsdemandedwillbepayable,duetowhichnoprovisionismadeintheaccounts

Name of theStatute

NatureofDuesandfinancialyeartowhichitpertains

Forum where dispute is pending

A m o u n t involvedIn Rs Lakhs

S e c u r i t yDeposit made In Rs lakhs



Deputy Commissioner,Appeals, Thiruvanathapuram

15.95 4.79

Kerala VAT Act, 2003 Kerala Value Added Tax and interestforFY2010-11


1.49 0.45




47.22 14.17



38.84 11.65




18.84 5.65



20.90 6.27

Total 143.25 42.97

c. EstimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedforRs.Nil (PreviousYearRs.Nil)

d. Thereisnooutstanding(PreviousyearRs.Nil/-)ason31stMarch2016towardslettersofcreditopenedbytheCompanyforpurchaseseffectedduringtheyear.

[s]ExpenditureinForeignCurrency 2015-2016 2014-15 inRs. Lakhs in Rs Lakhs

(a) Foreign Travel Expenses 22.19 20.74(b) Amount paid for import of raw materials 667.17 549.16

689.36 569.90[t]EarningsinForeignCurrency

Export Sales 1049.33 2940.09SalesIncentivesonOrdersplacedbyCustomers on Overseas Principals 48.87 137.30

[u]ValueofimportscalculatedonCIFbasis(a) Purchases 894.44 668.33(b) Capital Goods Nil Nil ------------------------- --------------------

894.44 668.33 ============== ===========


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[v]PercentageofConsumptionoftradedgoods

Value %tototal Value %tototal InRslakhs Consumption inRs.lakhsconsumption Currentyear PreviousYear

Imported 885.01 28.29 758.31 16.08 Indigenous 2243.05 71.71 3596.99 83.92 --------------- -------------- --------------- -------- 3128.05 100.00 4715.30 100.00 ============ ====== ========== ======== Therearenoindividualitemsaccountingformorethan10%oftradedgoods.

[w]ManagerialRemuneration

Asperresolutionadoptedatthe20thAnnualGeneralMeetingoftheCompanyheldon30thSeptember,2011theManagingDirectorandExecutiveDirectoraretoberemuneratedasperSection309readwithSection198oftheCompaniesAct,1956subjecttooverallceilingof5percentofthenetprofitsfortheyearpermanagerialpersontobecalculated inthemannersetoutinSection349oftheCompaniesAct,1956.Asadequateprofitsarenotavailable,themanagerialremunerationhasbeenprovidedwithinthelimitsspecifiedunderandincompliancewithScheduleVoftheCompaniesAct,2013

ManagerialRemunerationPaid 2015-16 2014-15

M.R.Subramonian 33.00lakhs 32.00lakhs M.R.Krishnan 33.00 lakhs 32.00 lakhs

Commission/Sittingfee to non working Directors 5.15 lakhs 10.67 lakhs

(including service tax) ---------------- ---------------- 71.15 lakhs 74.67 lakhs

========= ==========

[x]AuditorsRemuneration 2015-16 2014-15

Audit Fee Rs.2.88 lakhs Rs.2.81 lakhsForTaxation Rs.1.15lakhs Rs.1.12lakhs Internal Audit Fee Rs.2.29 lakhs Rs.2.02 lakhs

[y]BalancesunderDebtors,CreditorsandLoansandadvancesaresubjecttoconfirmationandreconciliation.

[z]BadDebts:

AnamountofRs.2.01lakhshasbeenwrittenoffasbaddebtsduringthefinancialyear(P.Y11.27Lakhs)

[za]ProvisionforIncomeTaxfortheperiodcomestoRs.149.88lakhs(PYRs.317.59Lakhs).

[zb]Loans&Advances

TheCompanyhasentered intoanagreementwithM/sStarMicronix,afirminwhichtheDirectorsare interested , forthepurchaseoffixedassetsofStarMicronixandanadvanceofRs.33,05,662.00hasbeenmade.Thesameisyettoberegisteredinthecompany’sname.

[zc]Thecompanyestimatesdeferredtaxcharge/(credit)usingtheapplicablerateoftaxationbasedontheimpactoftimingdifferencesbetweenfinancial statementsand theestimated taxable income for thecurrentyear.Thenetaccumulated taxliabilityasat31stMarch2016providedinthebalancesheetisRs.36.33lakhswhichisduetocumulativetimingdifferenceonaccountofdepreciation.

[zd]EventsoccurringaftertheBalanceSheetDate

TherearenomaterialeventsthatoccurredaftertheBalanceSheetDate.


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MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERVIEWTheManagementDiscussionandAnalysisReport(MDA)isanintegralpartof,andistobereadalongwith,theCompany’sfinancialstatementsandhasbeenpreparedbytheManagementasof25thMay2016.ThepurposeofthisMDAistoprovideadescriptiveexplanationfromthemanagement’spointofview,ofhowthecompanyhasperformedinthepast,itsfinancialconditionanditsfutureprospects.

SomeoftheinformationcontainedinthisMDAmaycontainforwardlookingstatements.Theseforward-lookingstatementsmay include,amongothers,statementsregardingourplans,costs,objectivesoreconomicperformance,or theassumptionsunderlyinganyoftheforegoing.Forwardlookingstatementsarebasedoninformationavailableatthetimetheyaremade,onthedateofthisreport,andshouldnotbereadasguaranteesoffutureperformanceorresultsastheyaresubjecttorisksanduncertainties,manyofthembeyondourcontrol.Wedonotundertakeanyobligationtopubliclyupdateorreviseanyforwardlookingstatementexceptasexpresslyrequiredbyapplicablelaws.

AdtechSystemsLimitedisaleadingsolutionproviderinelectronicsecurity/surveillanceindustry.Weprovideourclientswithcosteffectivesolutionsfortotalsecurityprotectionandalsoefficientaftersalesservicewhichisdifficulttomatch.

TheCompanyisaPublicLimitedCompanyhavingitsregisteredofficeinChennai,Tamilnadu.TheCompanyhadbeenlistedintheregionalstockexchangesofCochin,ChennaiandAhmedabadallofwhichhadtoclosedownfollowingexitorderbytheSecuritiesandExchangeBoardofIndia(SEBI)andasondatetheCompanyisplacedinthedisseminationboardofNationalStock Exchange Limited(NSE)whichdoesnot provide any listed status to theCompany. TheCompany is in theprocess ofapplyingforlistinginStockExchangehavingnationwideterminals.

FinancialstatementsarepreparedinaccordancewithapplicableAccountingStandardsasprescribedunderSection133oftheCompaniesAct,2013readwithrule7oftheCompanies(Accounts)Rules,2014totheextentapplicable.Accountingpolicieshavebeenconsistentlyapplied,exceptwhereanewlyissuedaccountingstandardisinitiallyadoptedorachangeinanexistingaccountingstandardrequiresacorrespondingchangeintheaccountingpolicyhithertoinuse.

GLOBAL ECONOMY

In theyearunderreview,globaleconomicactivitystayedstagnant.Growthcontinuedtodecline,whilemodest recovery isexpectedinthecomingyears.Thishasaffectedourexportrevenueshard.Inflationstayedmoreorlessconstantandcommoditypricesshowdecliningtrendintheyeartocome.

INDIAN ECONOMY

India’seconomybecametheworld’sfastestgrowingeconomyandtoppedtheWorldBank’sgrowthoutlookduringthefinancialyearunderreview.Indianeconomyhasgrown7.6%duringthefinancialyearandisexpectedtogrowatanincreasingpaceinFY2016-17.

Indiafollowedtheglobalstockmarketsanddeclinedsharplyduringthemiddleof2015andtherupeedepreciatedfurtherintheyearunderreview,squeezingourmargins.

OUTLOOK ON INDUSTRY

WiththeturnaroundintheIndianeconomy,ElectronicSecurityhasseenahigherdemandfrombusinesssuchasBanks,Airports,Infraprojects,Hospitality,Logistics,Retailindustry,SoftwareCompanies.

Consideringtheabove,spendingonmanpowersecurity,homelandsecurityandequipmentspurchasebythegovtandprivatesectorisexpectedtocrossRs.54KCroreby2016andreach80KCroresby2020.Adtechiswellpoisedtobenefitandcapturethismarketbyexpandingitssales/marketingteamandalsobyaddingnewproductswhichhaveverygoodmarketpotential.

Thenewbuzzwordintheindustrytodayis̀ IOT’(InternetofThings)inwhichautomatedsmartdevicesconnectedtotheinternethaveimprovedefficiencycomparedtotraditionalsystems.Withthisinmind,AdtechhaspartneredwithTISAutomationandlaunchedtheTISIntelligentBuildingAutomationSystemwhichhaswiredandwirelesscontroloptions.Ourstrategyisclear,toachievehigherlevelsofcustomersatisfactionandexceedcustomerexpectations.


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The IndianElectronicSecurityMarkethascontinuedtoevolve throughgovernment fundingand internationalcooperation.FuturepotentialoftheIndianElectronicSecurityMarkethasgainedattractionamongtheforeignplayersaswellforinvestors.Thismarkethasexperiencedanaverageannualgrowthrateof31.8%overtheperiodFY2008–FY2013.ThegrowingawarenessaboutthebenefitsofelectronicsecurityequipmentamongtheTier2&3citiesisexpectedtoescalatethedemandinthenearfuture.

VideoSurveillanceSystemholdsahighpotentialandwillremainthelargestsegment.IPSurveillancewillovertakethesalesofanalogsystems.

OUTLOOK OF ADTECH SYSTEMS LIMITED

Thelast2yearshasbeenchallengingintermsoftheneedtokeepupthegrowthtrendof20to30%,ashappenedduringtheperiod2010to2014.However,duetotheeffortofvariousfactorslikethisincidenceofonlineportalswhichaffectedthebrickandmortarretailtoagreatextenttheretailsalesdivisionofAdtechcouldnotregisterthegrowthasinthepreviousyears.AnotherimportantfactorwassteepdeclineinExports.ThiswasagainaresultofarecessionintheAPACretailindustrycoupledwiththeavailablityofChinesemadeSouceTagginglabels.Sensormatic,whichenjoyedapatentregimeinthepast,couldnotpreventtheChineselabelsenteringthesourcetaggingmarketandthereforelostitsmonopoly.

Adtechhasthereforedevisedamultipointstrategytogetthedesiredgrowthstartingfrom2017aspartofvision2020initiatives.

TheCompanyhastiedupwithTISAustraliaandlaunchedanewlineofIntelligentBuildingAutomationSystems.ThiswillhelptheCompanytobecomeatotalsolutionsproviderandcanhelptheCompanygrowintheHomeAutomation,HotelAutomationandCommercialBuildingAutomationmarket.TheCompanyexpectsthisproductlinetobringinaturnoverof2Crintheyear2017-18andthereafterseeagrowthof25%everyyearthenon.

TheSales/marketingforcewillbestrengthenedinallthemajormetroswithaviewtogrowtheC/Isalesrevenuesfromthepresent10Crto25Crduringtheyear2017-2018.TheCompanyisonthelookoutforaNationalSalesManagerwhocouldinturnexpandthepresentsalesteamandbringinnewcustomers.

Thelast2yearshasbeenchallengingintermsoftheneedtokeepupthegrowthtrendof20to30%,ashappenedduringtheperiod2010to2014.However,duetotheeffortofvariousfactorslikethisincidenceofonlineportalswhichaffectedthebrickandmortarretailtoagreatextenttheretailsalesdivisionofAdtechcouldnotregisterthegrowthasinthepreviousyears.AnotherimportantfactorwassteepdeclineinExports.ThiswasagainaresultofarecessionintheAPACretailindustrycoupledwiththeavailablityofChinesemadeSouceTagginglabels.Sensormatic,whichenjoyedapatentregimeinthepast,couldnotpreventtheChineselabelsenteringthesourcetaggingmarketandthereforelostitsmonopoly.

Adtechhasventuredintoarelativelynewsegment–RenewableEnergy.UnderthistheCompanyhasintroducedSolarandMicroWindturbineproducts.ThefirsttasteofsuccesshascomeinbywayoftheCompanybaggingatrialorderforsupplyandinstallationofa500KWFloatingGridconnectedsolarplanttotheKeralaStateElectricityBoard.Thisorderisvaluedat9CrandexpectedtocompletedbyDecember2016.

Basedonthesuccessofthisorder,theCompanyexpectsKSEBtoorderforsimilarorlargercapacityFloatingSolarPantsforallthe dams in Kerala.

AdtechisalsodoingtrialofaMicroWindTurbineforaresortinTrivandrum.BasedonthesuccessofthistrialtheCompanyexpectsanorderfora2KWWindTurbinefarmintheresort.Thiswillinturnpavewaytosuchwindturbinefarmscomingupin other resorts in Kerala and outside Kerala.

Adtechexpectsagrowthinrevenueofatleast75Crfromtheabove2productswithinthenext2years.

TheabovestrategieswillseeAdtechgrowingmultifoldreachingatargetof150Crrevenuesinthe2017-18financialyearandthereaftermaintainanannualgrowthof30%insubsequentyears.

OPPORTUNITIES AND THREATS

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


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corporatesastheirexclusiveelectronicsecuritysolutionsproviderwhichpositionisnotunassailable.Constantattemptsbothfromtheorganisedandunorganisedsectorremainsathreattoourbusinessandearnings.TheTeamworkshardtoretainthecustomerswhichaffectsthemarginsconsiderablyandalsoisrequiredtoprovideconstantservicesupportwhichisacost.

TheCompanyhasdiversifiedintothebusinessofprovidingfloatingsolarpowerprojectsandhasalreadybaggedaprestigiousorderfromKeralaStateElectricityBoardLimited(KSEBL),theconstructionofwhichisinfullswing.TheCompanyexpectsitsfloatingsolarbusinesstobecomeamajorsegmentofrevenueinthecomingyears.

RISK FACTORS AND CONCERNS

Oursuccesslargelydependsonthecontinuedservicesandperformanceofourmanagement,ourtechnicalteamandotherkeypersonnelasourbusinessisrevolvingaroundtechnicalcapabilitiesofourpersonnel’swhichishumanapproachtobeprecisewith.Thelossofserviceofthemanagement,ourtechnicalteamandkeypersonnelcouldseriouslyimpairtheabilitytocontinuetomanageandexpandthebusinessefficiently.Further,thelossofanyoftheseniormanagementorotherkeypersonnelmayadverselyaffecttheoperations,financesandprofitabilityofourCompany.AnyfailureorinabilityofourCompanytoefficientlyretainandmanageitshumanresourceswouldadverselyaffectourabilitytoimplementnewprojectsandexpandourbusiness.

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.

Wecommitresourcestoprojectspriortoreceivingadvancesorotherpaymentsfromcustomersinamountssufficienttocoverexpendituresonprojectsastheyareincurred.Wemaybesubjecttoworkingcapitalshortagesduetodelaysordefaults incustomerpayments.Ifcustomersdefaultintheirpaymentsonaprojecttowhichwehavedevotedsignificantresourcesorifaprojectinwhichwehaveinvestedsignificantresourcesisdelayed,cancelledordoesnotproceedtocompletion,itcouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.

Theinputcostsoftheproducts/servicesoftheCompanymayincreaseduetovariousreasons.IncasetheCompanyisnotabletopassonsuchincreasetotheconsumersbecauseofcompetitionorotherwise,itmayaffecttheprofitabilityoftheCompany.

Competitionwouldhaveanadverseimpactonourbusinessandfinancialperformance.Theindustry,inwhichweareoperating,ishighlyandincreasinglycompetitiveandunorganizedandourresultsofoperationsandfinancialconditionaresensitiveto,andmaybemateriallyadverselyaffectedby,competitivepricingandotherfactors.Competitionmayresultinpricingpressures,reducedprofitmarginsorlostmarketshareorafailuretogrowourmarketshare,anyofwhichcouldsubstantiallyharmourbusinessandresultsofoperations.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

TheCompanyoperatesinasinglesegmentvizelectronicsecuritysystemsandhencetherearenoadditionaldisclosuresrequiredunder“AccountingStandard-17SegmentReporting”.

TheCompanyoperatesprimarilyinIndia,hencethereisnoothersignificantgeographicalsegmentthatrequiresdisclosure.

FINANCIAL PERFORMANCE

SaleandserviceofElectronicSurveillanceSystemsandaccessoriesformmajorportionofincomefortheCompany.

TotalIncomewasRs.4395.72lakhsduringthefinancialyear2015-16asagainstRs.6463.25lakhsforthepreviousyear.Thesharpdropinincomeismainlyduetofallinexportturnover.


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Totalexpensesfortheyearended31stMarch2016wasRs.3943.10whichconsistsofpurchasecostofRs.318.05,employeebenefitexpenses427.87lakhsandotherexpensesRs.375.07lakhsanddepreciationRs.10.10lakhs.

TheCompanydoesnothaveanyloanliabilityfrombanksorfinancialinstitutions.

TheCompanyhastotalmanpowerof86employeesason31stMarch2016.TheCompanyhadmademostofitsrecruitmentsintheMarketingandEngineeringdivisions.CompanyhasareasonablesalarystructureandprovidesattractiveincentivestohelpemployeestobuildacareerintheCompany.TheCompanyimpartspropertraininganddevelopmenttoallthenewrecruitsandalsoimpartsperiodictrainingsessionssothatemployeesareabreastwithtechnicalupdatesandremaincompetent.YourCompanyconsidersitsemployeestobethemostvaluableassetoftheCompanyandappreciatestheirdedicatedhardwork.

ForandonbehalfoftheBoardofDirectors

Sd/- PlaceTrivandrum M.R.NarayananDate 30thMay2016 Chairman


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REPORT ON CORPORATE GOVERNANCE

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.

TheCorporateGovernanceReport ispursuanttoRegulation27oftheSEBI(ListingObligationandDisclosureRequirements)Regulations,2015andcontainsthedetailsofCorporateGovernancesystemsandpracticesfollowedbyAdtechSystemsLimited(ASL).

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.

TheCompanybelievesinandpracticesgoodcorporategovernance.TheCompany’sphilosophyisaimedatassistingthetopmanagement intheefficientconductof itsbusinessandfulfilling itsobligationstowardstheGovernment, itsshareholders,employeesandotherstakeholders.

YourCompanybelievesinIntegrity,Accountability,Transparency,Confidentiality,ControlandSocialResponsibility.

YourCompanyensuresthattimelyandaccuratedisclosureismadeonallmaterialregardingthecorporationincludingthefinancialsituation,performance,ownershipandgovernanceof thecompany.TheCompanybelieves thata strongand independentBoardandtransparentaccountingpolicieswillpreservethestakeholdervalueandenhancetheirtrustandconfidence.

Ourcorporatemissionstatementdescribesthefutureperspectives,strategyandvalues.Webelieveinpracticingasetofvaluesthatformthebasisofouractionsandcorporateculture.

YourBoardbelievesthatCorporateGovernanceisapowerfulmediumofsub-servingthelong-terminterestsofitsstakeholdersfor theattainmentof transparency,accountabilityandequity inall facetsof itsoperationsbyenhancingandsustaining itscorporatevaluethroughgrowthandinnovation.

2.BOARD OF DIRECTORS

TherearesixDirectorsontheBoardhavingvastknowledgeandexperienceindifferentfieldsofmarketing,finance,lawandmanagement.AsrequiredunderRegulation17oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theBoardhasanoptimumcombinationofexecutiveandnon-executivedirectorswiththreeIndependentDirectors.AsperSection149(1)oftheCompaniesAct,2013andRegulation17(1)(a)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,SmtP.K.AnandavallyAmmalisappointedtotheBoardasWomanDirector.

TheCompositionandcategoryofDirectorsontheBoardoftheCompanyfortheFY2015-16wereasunder

Name of Director Category

Shri.M.R.Subramonian,ManagingDirectorPromoterandExecutiveDirectors

Shri.M.R.Krishnan,ExecutiveDirector

Shri.M.R.Narayanan,Chairman Promoter,NonExecutive–NonIndependentDirector

Shri.N . Suresh Non-ExecutiveIndependentDirectors

Shri.K.Manmathan Nair

Shri.P.K.AnandavallyAmmal

PursuanttoSections149,150and152oftheCompaniesAct,2013,theCompanyhasthreeIndependentDirectorsappointedatthe 23rdAnnualGeneralMeetingheldon24thSeptember2014.Thetenureofappointmentisforaperiodoffiveyears.


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ThetermsandconditionsofappointmentofIndependentDirectorsaredisclosedonthewebsiteoftheCompanywww.adtechindia.com

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.

TheIndependentDirectorsoftheCompanymeton18thMarch2016.Themeetinghasinter-aliareviewedtheperformanceofNon-IndependentDirectorsandtheBoardasawhole,performanceoftheChairmanandassessedtherelevanceandtimelinessofflowofinformationfromthemanagementtotheBoardofDirectors.

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.

AttendanceattheBoardmeetingsheldduring2015-16andlastAGMandalsothenumberofDirectorshipsandCommitteepositionsheldbytheminotherPublicLimitedCompaniesaregivenbelow

Name of Directors NoofBoardMeetingduringFY2015-16

WhetherattendedLast AGM

SittingFeepaid during FY2015-16

No of Directorships

in other PublicLimitedCompanies

NoofComitteepositionsinotherPublicCompanies

Held Attended Chairman Member

Mr.M.R.Narayanan 5 4 YES NIL 1 0 0

Mr.M.R.Subramonian 5 5 YES NIL 1 0 0

Mr.M.R.Krishnan 5 1 YES NIL 0 0 0

Mr.N.Suresh 5 4 YES 30,000 0 0 0

Mr.K.M.Nair 5 3 YES 22,500 1 0 1

Ms.P.K.AnandavallyAmmal

5 3 YES 22,500 0 0 0

Note:IndependentDirectorswerepaidsittingfeeofRs.7500perboardmeeting.

BasedontheconfirmationcertificatereceivedfromalltheBoardmembersinaccordancewiththeprovisionsofSection165oftheCompaniesAct,2013andRegulation25(1)and26(1)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,adeclarationbytheManagingDirectorconfirmingthecomplianceofaboveprovisionsisenclosedherewithasAnnexure2.


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3.AuditCommittee

CompositionoftheAuditCommitteeisasfollows

NameoftheMembersShri.N.Suresh ChairmanShri.M.R.Subramonian MemberSmtP.K.AnandavallyAmmal Member

TheAuditcommitteeconsistsoftwoNon-ExecutiveIndependentDirectors,oneofwhomistheChairman.AllthemembersoftheCommitteepossessesaccountingorrelatedfinancialmanagementexpertise.TheCommitteemetfivetimesduringthefinancialyear2014-15on30thMay2015,13th August 2015, 14thNovember2015,12thFebruary2015andon18March2016,inwhichmeetings,allthememberswerepresent.

ThetermsofreferenceofAuditcommitteeinaccordancewithSection177(4)oftheCompaniesAct,2013andRegulation18(3)readwithPartCofScheduleIIoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015areasunder

1. Therecommendationforappointment,remunerationandtermsofappointmentofauditorsoftheCompany;

2. Reviewandmonitortheauditor’sindependenceandperformance,andeffectivenessofauditprocessanddiscussionsthereon;

3. Examinationofthefinancialstatementandtheauditor’sreportthereon;

4. Approvaloranysubsequentmodificationoftransactionsofthecompanywithrelatedparties;

5. Scrutinyofinter-corporateloansandinvestments;

6. ValuationofundertakingsorassetsoftheCompany;

7. Evaluationofinternalfinancialcontrolsandriskmanagementsystems;

8. Monitoringtheenduseoffundsraisedthroughpublicoffersandordebt;

9. Discusssionwithinternalauditorsofanysignificantfindingsandfollowuptheron;

10. ToreviewthefunctionsofWhistleBlowermechanism;

11. Tocarryoutsuchotherfunctionsasmaybereferredtoit.

TherewasnosituationwheretheBoardhasnotacceptedtherecommendationoftheAuditCommittee.

TheCompanySecretaryoftheCompanyactsasSecretarytotheCommittee.

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

TheCommitteemetonceduringthefinancialyearon12September2015.ThecompositionoftheNominationandRemunerationCommitteeisasunder.Allthecommitteemembersattendedthemeetingheldon12thSeptember2015.

NameoftheMembersShri.N.Suresh ChairmanShri.M.R.Narayanan MemberSmt.P.K.AnandavallyAmmal Member

TheCommitteehasthefollowingtermsofreference.

Formulationofcriteriafordeterminingqualifications,positiveattributesandindependenceofaDirectorandrecommendtotheBoardapolicy,relatingtoremunerationofDirectors,KeyManagerialPersonnelandotheremployees.


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a. FormulationofcriteriaforevaluationofDirectors,Chairman,ManagingDirectorandExecutiveDirector,BoardasawholeandvariousCommitteesoftheBoard.BasedontherecommendationsoftheCommittee,thesaidPolicyonNominationandRemunerationandEvaluationofDirectorswasadoptedbytheBoard.

b.IdentifyingpersonswhoarequalifiedtobecomeDirectorsandwhomaybeappointedinSeniorManagementpositionsinaccordance with the criteria laid down.

TheCommitteehasadoptedthefollowingcriteriaforselectionofMembersontheBoardofDirectorsoftheCompanyandalsocandidateseligibletobeappointedintheSeniorManagementoftheCompany

(i)Criteria for Selection of Directors

BeforemakingarecommendationtotheBoardforappointmentofanyDirector,theCommitteeshallensurethat

((a) The candidate possesses appropriate skills experience and knowledge in one ormore fields ofmanagerial/business/administrative/legal/financequalificationsandexperienceovertwodecades;

(b) ThecandidateshallbefreefromanydisqualificationasprovidedunderSections164and167oftheCompaniesAct,2013;

©Inthecaseofappointmentofan IndependentDirector, thecandidatemeetstheconditionsofbeing independentasstipulatedunderCompaniesAct,2013andtheListingAgreement

(d)Thecandidatealsocomplieswiththe“FitandProper”criteriaaslaiddownbythepolicyoftheCompany.

(ii) Criteria for Selection of Senior Management Personnel

The term SeniorManagement shall have the samemeaning as provided under the explanation to Section178of theCompanies Act, 2013

TheCommitteeshall,beforemakinganyrecommendationtotheBoardforappointment,shouldensurethatthecandidatehastheattributessetforthbelow

(a) Thecandidateshouldhaveaminimumexperienceof10yearsinanyoftheareasvizelectronicsecurityrelated,financialmanagement,legal,sales,marketing,procurement,research,technicaloperationsorsuchotherareaswhichintheopinionoftheCommitteearerelevantfortheCompany’sbusiness;and

(b) The candidate should possess qualities that demonstrate leadership skills, effective communication skills, hardwork,commitmentandsuchotherattributeswhichintheopinionoftheCommitteeareintheinterestoftheCompany.

TheCommitteemakesitsrecommendationtotheBoardifitfindsthatacandidatemeetsthecriteriaforappointment.

TheBoardofDirectorshascarriedoutanannualevaluationofitsownperformance,itsCommitteesandindividualDirectorspursuanttotheprovisionsofSection178(3)oftheCompaniesAct,2013.AlltheDirectorshaveprovidedinputstothequestionnaireseekinginformationoncriteriasuchasBoardCompositionandstructure,BoardProcessesandprocedures,effectivenessoftheBoard,etc

TheBoardandNominationandRemunerationCommitteereviewedtheperformanceoftheindividualDirectorsinteralia,onthebasisofunderstandingandknowledgeofthemarketinwhichtheCompanyisoperating,abilitytoappreciatetheworkingoftheCompanyandthechallengesitfaces,attendancetomeetings,extendofparticipationandinvolvementinthemeetingsandabilitytoconveyone’sviewsandflexibilitytoworkwithothers.TheperformanceoftheCommitteeswasevaluatedbythebasedonthecompositionoftheCommittees,effectivenessoftheCommitteemeetingswithrespecttothetermsofreferenceandconductofthemeetingsandtheproceduresfollowed.

Remuneration Policy

(i) RemunerationofManagingDirectorandExecutiveDirector

CommitteetakesintoconsiderationtheperformanceoftheCompany,theabilitytoleadtheteam,pastremuneration,thecomparativeremunerationprofileintheindustrysubjecttotheconditionthatoverallremunerationshallbeinaccordanceandwithinthelimitsstipulatedundertheCompaniesAct,2013

(ii) RemunerationtoNonExecutiveDirectors

RemunerationtoNonExecutiveDirectorispaidsubjecttothelimitsstipulatedundertheCompaniesAct,2013andbasedonlevelofparticipationintheaffairsoftheCompany.

RemunerationtoIndependentDirectorsisrestrictedtosittingfeesforattendingmeetingsoftheBoardofDirectors.


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TheCompanydoesnotatpresenthaveaprovisionofstockoptions.

(iii) RemunerationofSeniorManagementPersonnelandKMP

TheRemunerationoftheSeniorManagementPersonnelandKMPshallbeinaccordancewiththePolicyoftheCompanyasisapplicabletotheemployees.Performanceofthebusiness/functionunderhiscontrolisalsoconsideredwhiledecidingremuneration.

DetailsofremunerationpaidtoDirectorsandKMParementionedelsewhereinthisreport.

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

(a) Allelementsofremunerationpackagesuchassalary,benefits,bonuses,stockoptions,pension,perquisitesetcofalltheDirectors

ManagingDirectorandExecutiveDirectorshallbepaidremunerationasunder:

Intheeventofadequateprofitsinafinancialyear,ManagingDirectorandExecutiveDirectorshallbepaidremunerationnotexceedingthelimitsspecifiedinSection197oftheCompaniesAct,2013andasdetailedbelow.

WhereinanyfinancialyearduringthecurrencyoftenureofManagingDirectororExecutiveDirector,theCompanyhasnoprofitsoritsprofitsareinadequate,followingremunerationshallbepaidtoManagingDirectorandExecutiveDirectoraspertermsofagreementexecutedwitheachofthemsubjecttoSectionIIPartIIofScheduleVoftheCompaniesAct,2013asamendedfromtimetotime.

Salary 3,00,000 per month with an annual increase of upto 25 percent as recommended by the Nomination andRemunerationCommittee.

Commissionofupto1percentofnetprofitscomputedinthemannerlaiddowninSection198oftheCompaniesAct,2013

HousingRentAllowance,ifapplicablesubjectto50percentofsalary.

ManagingDirectorandExecutiveDirectorshallbeeligibletoavailHousingLoanasperrulesoftheCompanyasapplicabletootheremployees

Medicalreimbursementequaltoonemonthssalaryinayear.

LeaveTravelconcessionwithfamilyonceinayearinaccordancewithrulesoftheCompany.

Clubfeesubjecttomaximumoftwoclubs.

LeaveonfullpayasperrulesoftheCompany.

Free Use of the Company’s Car, free telephone facility and payment of electricity and water charges at residence,reimbursementofentertainmentexpensesincurredintheinterestsofthebusinessoftheCompany.

(b)NoseverancefeeorNoticeperiodisprovided.

NonExecutiveNon–IndependentDirectorsshallbepaidremunerationnonexceeding1percentofthenetprofitsoftheCompanycomputedasperprovisionsofSection198oftheCompaniesAct,2013.

NonExecutiveIndependentDirectorsshallbepaidonlysittingfeeforattendingBoardMeetings.

©TheCompanydoesnothaveanyschemeforissueofStockOptions.

5.Stakeholders’ Relationship Committee

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:


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Duringtheyear2015-16,theCommitteehasmet4timesatthefollowingdates.

30thMay2015 13August2015 14November2015 18 March 2016

NameoftheMember Position Numberofmeetings Held Attended

Mr.M.R.Narayanan Chairman 4 3

Mr.M.R.Subramonian Member 4 4

Mr.N.Suresh Member 4 3

TheCompanySecretaryactsasthesecretaryoftheStakeholders’RelationshipCommittee.

Thetermsofreference,powersandscopeoftheStakeholders’RelationshipCommitteeinclude:

(i)Tolookintotheredressalofgrievancesofshareholders,debentureholdersandothersecurityholders;

(ii)Toinvestigatecomplaintsrelatingtoallotmentofshares,approvaloftransferortransmissionofshares;

(iii)Toconsiderandresolvethegrievancesofthesecurityholdersofthecompanyincludingcomplaintsrelatedtotransferofshares,non-receiptofbalancesheet,non-receiptofdeclareddividends;and

[email protected] for handling investor complaints on which investors can lodge their complaints.

TheCompanyhasinplaceaninvestorgrievanceredressalpolicyfortheredressalofinvestorcomplaintsinatimelymanner.

Mr.S.Balamurali,CompanySecretaryistheComplianceOfficeroftheCompany.HereviewstheinvestorcomplaintsonafortnightlybasistofindoutwhetherthegrievancehasbeenresolvedwithinthetimespecifiedtheInvestorGrievanceRedressalPolicyoftheCompany.

PursuanttoRegulation13(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,thestatusofinvestorcomplaintsreceivedandredressedduringFY2015-16areasfollows.

SL No Particulars No of Complaints

1. NumberofInvestorComplaintspendingatthebeginningoftheyear(ieason01April2015 Nil

2. NumberofInvestorcomplaintsreceivedduringtheyear 6

3. Numberofinvestorcomplaintsredressedduringtheyear 6

4. NumberofInvestorcomplaintsremainingunresolvedattheend NilOftheyear(ieason31stMarch2016)

6.Corporate Social Responsibility (CSR)

As on 31stMarch2016,theCorporateSocialResponsibility(CSR)CommitteeoftheCompany,underSection135oftheCompaniesAct,2013,consistsoftwoNon-ExecutiveDirectors,outofwhichoneisIndependentDirector.TheCommitteehasformulatedaCSRPolicyindicatingtheactivitiestobeundertakenbytheCompanyinaccordancewithScheduleVIItotheCompaniesAct,2013.

TheCSRPolicyoftheCompany,asapprovedandadoptedbytheBoard,hasbeenpostedinthewebsiteoftheCompany.

Intheyear2015-16,thecommitteemettwiceonthefollowingdatesandallthethreecommitteemembersattendedbothmeetings.

13th August 2015 18th March 2016


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TheCompositionoftheCSRCommitteeisgivenbelow.

NameoftheMembersShri.M.R.Narayanan ChairmanShri.M.R.Subramonian MemberShri.N.Suresh Member

ThetermsofreferenceoftheCSRCommitteeinaccordancewithSection135(3)oftheCompaniesAct,2013areasunder

(1) FormulateandrecommendtotheBoard,aCSRPolicywhichshallindicatetheactivitiestobeundertakenbytheCompanyasspecifiedinScheduleVIIoftheCompaniesAct,2013.

(2) RecommendtotheBoardtheamountofexpendituretobeincurredontheCSRactivitiesreferredtoin(1)above,and

(3) MonitortheCSRPolicyoftheCompanyfromtimetotime.

7.Share Transfer Committee

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.

TheCompany iscommittedtothehigheststandardsofethical,moraland legalconductofbusinessoperationsand inordertomaintainthesestandards,theCompanyencouragesitsemployeeswhohavegenuineconcernsaboutsuspectedmisconducttocomeforwardandexpressthoseconcernswithoutfearofpunishmentorunfairtreatment.TheCompanyhasapropervigilmechanismandwhistleblowerpolicyinplacepursuanttoSection177(9)and177(10)oftheCompaniesAct,2013andRegulation4(2)(d)(iv)and34(3)readwithPara10ofpartCofScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.ThemechanismalsoprovidesforadequatesafeguardsagainstvictimisationofDirectorsandemployeeswhoavailthemechanismandalsoprovidesfordirectaccesstotheChairmanoftheAuditCommitteeinspecialcases.ThesaidpolicyisavailableinthewebsiteoftheCompanywww.adtechindia.com

9.GENERAL MEETINGS

DetailsofGeneralMeetingsheldduringthelastthreeyearsareasfollows

Financial Year ended Date of meeting Time Venue

31March2015 30September2015 2.30PM RegisteredOffice



SpecialResolutionspassedatthelastthreeAGMs

SL No Date of AGM Special Resolution

01 30.09.2015 (i)SubstitutionofArticlesofAssociationoftheCompanywith

newsetofArticlesofAssociation

02 24.09.2014 Nil

03 30.09.2013 Nil

10.CEO/CFO Certification

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


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11.QUARTERLY COMPLIANCE REPORT

Acomprehensivereporton thestatusofcompliancewithall theapplicablecorporate lawsby theCompany isplacedbeforetheBoardonaquarterlybasisfortheirinformationandreview.

DISCLOSURES

(a)There were nomaterially significant Related Party Transactions having potential conflict with the interests of theCompanyatlarge

(b)TheCompanyhascompliedwithalltheapplicableprovisionsofCompaniesAct,2013,andCompaniesAct,1956totheextentapplicable,SEBI (ListingObligationsandDisclosureRequirements)Regulations,2015andotherapplicableacts/provisions

©TheCompanyhasfollowedtheAccountingStandardslaiddownbytheCompanies(AccountingStandards)Rules,2006(asamended)inpreparationofthefinancialstatements

12.Means of Communication

(a)Quarterly andannual auditedfinancial results of theCompanywerepublished in TrinityMirror (EnglishDaily) andMakkal Kural (Vernacular Language)

(b)Theresultsaredisplayedonthecompany’swebsiteatwww.adtechindia.com.

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.

14.UNCLAIMED DIVIDENDS

TheCompanyhadduringthefinancialyear2015-16,transferredanamountofRs.18,400toInvestorEducationandPro-tectionFUND(IEPF),beingtheunclaimeddividendfortheyear2007-08.Underthelaw,noclaimforuncasheddividendscanlieagainsteithertheCompanyortheIEPFafteraperiodofsevenyearsfromthedateoftransfertounclaimeddividendaccount.Therefore,shareholderswhohavenotyetcashedtheirdividendchequesrelatingtothefinancialyear2008-09andsubsequentyearsarerequestedtocontacttheCompany/RegistrarandShareTransferAgent.

15.COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE

CompliancecertificateonCorporateGovernanceprovidedbytheStatutoryAuditorsoftheCompanyconfirmingthecon-ditionsofCorporateGovernanceasstipulatedinSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015is enclosed as Annexure IV

TheCompanydoesnothavestockoptionschemeandthereforethesameisnotapplicable

16.DATE OF BOOK CLOSURE

TheRegisterofMembersandTransferBooksoftheCompanyshallbeclosedfrom16thSeptember2016to30thSeptember2016(bothdaysinclusive)

TherelevantSecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndia(ICSI)havebeensubstantiallycompliedwithbytheCompany.

17.GREEN INITIATIVES BY MCA

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.


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18.GENERAL SHAREHOLDER INFORMATION

(a) 25thAnnualGeneralMeeting

Date Time Venue

30thSeptember2016 3.00PM RegisteredOfficeoftheCompany

(b) FinancialYear 01st April to 31st March

(c) DividendDetails RatificationofInterimDividenddeclaredon18thMarch2016asfinaldividend.

(d) Listingdetails:TheCompanyisnotlistedinanystockexchangesason31st March 2016 due to the closure of Chennai.CochinandAhmedabadStockexchangeswherethesharesoftheCompanywerelisted.ThesharesareplacedinthedisseminationboardofNSE.TheCompanyplanstoapplyforlistinginstockexchange/shavingnationalwiseterminals.Duetonon-listingstatus,paymentoflistingfeeisnotapplicable

(e) Registrationdetails:TheCompanyisregisteredinthestateofTamilNaduasapubliclimitedCompany.TheCorporateIdentityNumber(CIN)allottedtotheCompanybytheMinistryofCorporateAffairsisL33111TN1990PLC018678.

(f) ReconciliationofShareCapitalAudit:TheCompanyhasreceivedcertificatefromaCompanySecretaryinpracticeonaquarterlybasisfortimelydematerialisationoftheCompany’ssharesandforreconciliationofthetotalequitycapitalwithboththedepositoriesandinphysicalmodewiththetotalpaidupcapitalasperbooks.

(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.

(h) SincesharesoftheCompanyarenottradedinanystockexchange,comparisonofhighandlowpricesisnotavailable.

(i) DistributionofShareholdingason31st March 2016

Sl No Category No of Holders % Holders Shares % Shares

1 upto 100 6 2.36 600 0.03

2 100-500 99 38.98 42975 1.80

3. 501-600 19 7.48 11400 0.48

4 601-700 3 1.18 2100 0.09

5. 701-800 20 7.87 15550 0.65

6 801-900 4 1.57 3600 0.15

7 901-1000 48 18.90 48000 2.01

8 1001-2000 23 9.06 34015 1.43

9 2001-5000 11 4.33 36045 1.51

10 5001-10000 8 3.15 63195 2.65

11 10001-20000 7 2.76 97385 4.09

12 20001-50000 0 0 0 0

13 50001-100000 2 0.79 151240 6.35

14 Above100000 4 1.57 1876645 78.76 --------------------------------------------------------------------------------

Total 254 100 2382750 100

=================================================


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InvestorsmaywritetotheCompanyatbalamuralis@adtechindia.inforanyqueries/grievances/communications

ForanyassistanceregardingdematerialisationofShares,sharetransfer,transmission,changeofaddress,nonreceiptofdividendoranyotherqueryrelatingtosharesorfinancialstatements,theinvestorsmaycontact

(a) S.BalamuraliCompanySecretaryAdtechSystemsLimitedT C 5/2523, Golf Links Road, Kowdiar PO, Trivandrum 695 003Tel 0471 2433805/[email protected]

(b)IntegratedEnterprises(India)LimitedRegistrar and Share Transfer Agents2nd Floor, Kences Towers, No 1, Ramakrishna StreetOffNorthUsmanRoad,T.Nagar,Chennai600017Tel:044028140801-803Email [email protected]


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Annexure I

DeclarationregardingcompliancebyBoardMembersand SeniorManagementPersonnelwiththeCompany’sCodeofConduct

ToTheMembersAdtechSystemsLimited

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


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Annexure III

CERTIFICATION BY CHIEF EXECUTIVE OFFICER/CHIEF FINANCE OFFICER

Weherebycertifythatforthequarterandfinancialyearended31stMarch2016,onthebasisofthereviewofthefinancialstatementsandthecashflowstatementandtothebestofourknowledgeandbeliefthat:-

(1) thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterialfactorcontainstatementsthatmightbemisleading;

(2) thesestatementstogetherpresentatrueandfairviewofthelistedentity’saffairsandareincompliancewithexistingaccountingstandards,applicablelawsandregulations.

(3) Thereare,tothebestoftheirknowledgeandbelief,notransactionsenteredintobytheCompanyduringtheyearwhicharefraudulent,illegalorviolativeoftheCompany’scodeofconduct.

(4) WeacceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreportingandthatwehaveevaluatedtheeffectivenessofinternalcontrolsystemsoftheCompanypertainingtofinancialreportingandwehavedisclosedtotheauditorsandtheauditcommittee,deficienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichweareawareandthestepswehavetakenorproposetotaketorectifythesedeficiencies.

(5) Wefurthercertifythat;

(a)Therehavebeennosignificantchangesininternalcontroloverfinancialreportingduringtheyear;

(b)Therehavebeennosignificantchangesinaccountingpoliciesduringtheyearandthatthesamehavebeendisclosedinthenotestothefinancialstatements;and

©Therehavebeennoinstancesofsignificantfraudofwhichtheyhavebecomeawareandtheinvolvementtherein,ifany,ofthemanagementoranemployeehavingasignificantroleinthelistedCompany’sinternalcontrolsystemoverfinancialreporting.

Sd/- sd/-Trivandrum M.R.Subramonian P.VinayaChand30thMay2016 ManagingDirector ChiefFinanceOfficer


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ANNEXURE IV

AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE

To

TheMembersofAdtechSystemsLimited

WehaveexaminedthecomplianceoftheconditionsofCorporateGovernancebyAdtechSystemsLimited(theCompany)fortheyearended31stMarch2016asstipulatedinChapterIVoftheSEBI(ListingObligationsandDisclosureRequirements)Regu-lations,2015enteredbytheCompanywiththestockexchange.

Thecomplianceoftheconditionsofcorporategovernanceistheresponsibilityofthemanagement.Ourexaminationshasbeenlimitedtoareviewoftheproceduresandimplementationthereof,adoptedbythecompanyforensuringthecompliancewiththeconditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,andbasedontherepresenta-tionsmadebytheDirectorsandthemanagement,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedintheabovementionedListingAgreementasfarasapplicabletotheCompany.

WestatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffective-nesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

ForM.R.Ramachandran&CoFirm Regn No 002873S

sd/

M.R.RamachandraWarrierPartnerMembershipNoFCA4601

Place ChennaiDate 30thMay2016


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ADTECH SYSTEMS LIMITEDCIN L33111TN1990PLC018678

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 :..........................................................

Address ...............................................................................................................................


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..........................................................................................................................................

......................................................... Signature : ............................................... , or failing him

2. Name :........................................................................ E-mail ID :.........................................

Address :...............................................................................................................................

..........................................................................................................................................

...................................... Signature : .................................................................. , or failing him

3. Name :....................................................... E-mail ID :..........................................................

Address ................................................................................................................................

...........................................................................................................................................

Signature : ………………………………………………………………………………

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


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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

ADTECH

HOT CHIPS


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ADTECH SYSTEMS LIMITED Annual Report 2015-16


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