Info Edge India
BSE: 532777 | NSE: NAUKRI | ISIN: INE663F01024 | Miscellaneous
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
The Directors have pleasure in presenting the Annual Report together
with the audited statement of accounts for the year ended March 31,
2008.
FINANCIAL RESULTS
(Figures in Rs. Million)
Particulars 2007-08 2006-07
Revenue
Total sales 2,450.61 1,575.15
Service tax 261.22 179.46
Net sales 2,189.39 1,395.69
Other income 207.25 75.94
Total Income 2,396.64 1,471.63
Expenditure
Advertising and Promotion Cost 481.24 300.38
Administration and Other expenses* 255.75 171.92
Personnel expenses 746.28 492.36
Network and other charges 60.53 58.99
Finance and bank charges 11.19 6.97
Depreciation 55.51 46.19
Total expenditure 1,610.50 1,076.81
Net profit before tax 786.14 394.82
Net Profit after Tax 554.87 270.67
* Administrative expenses include traveling & conveyance; postage &
telephone expenses; establishment expenses and other expenses
FINANCIAL REVIEW
Net Sales increased by 56.87% from Rs. 1,395.69 million in 2006-07 to
Rs. 2,189.39 million in 2007-08. Other income increased by 172.91% to
Rs. 207.25 million in 2007-08 on account of accretion in surplus funds
as also IPO proceeds being available throughout the year. Consequently,
total income increased by 62.86% from Rs. 1,471.63 million in 2006-07
to Rs. 2,396.64 million in 2007-08.
Total expenditure increased by 49.56% from Rs. 1,076.81 million in
2006-07 to Rs. 1,610.50 million in 2007-08. Much of this increase was
due to the growth in advertising and promotion costs, and employee
costs. Advertising and promotion costs increased by 60.21% from Rs.
300.38 million in 2006-07 to Rs. 481.24 million in 2007-08 as we
invested more in Jeevansathi and 99 acres, while employee costs
increased by 51.57% from Rs. 492.36 million in 2006-07 to Rs. 746.28
million in 2007-08 on account of wage revision and manpower increase.
Profit before tax increased by 99.11% from Rs. 394.82 million in
2006-07 to Rs. 786.14 million in 2007-08 and profit after tax increased
by 104.99% to Rs. 554.87 million in 2007-08.
DIVIDEND
Your Directors are pleased to recommended dividend at the rate of 7.5%
(Re. 0.75 per share) for 2007-08, subject to the approval of the
shareholders. The proposed dividend together with corporate dividend
tax would mean an outflow of Rs. 23.95 million.
OPERATIONS REVIEW
We provide recruitment classifieds and related services through
Naukri.com, Naukrigulf.com and Quadrangle business divisions. This
business generated around 90% of the company’s net sales in 2007-08. We
also provide matrimonial and property related classifieds and related
services through our Jeevansathi.com, 99 acres.com and
Allcheckdeals.com divisions respectively. The combined contribution of
these along with other divisions to the company’s net sales increased
to 10% in 2007-08. During the year the company entered the domain of
professional networking services through brijj.com and completed the
spadework for launching its foray into online education through
Shiksha.com.
Leveraging the opportunities provided by a growing economy, the
transformation of India into a younger country and the increase levels
of internet penetration, your company continued to grow at a healthy
rate, both in terms of the top-line reflected in total sales growing by
56.9% and bottom-line reflected by more than doubling of profit after
tax to Rs. 554.87 million. Consequently basic earnings per share
increased from Rs. 11.31 in 2006-07 to Rs. 20.33 in 2007-08.
Detailed analysis of the performance of the Company and its businesses,
including initiatives in the area of Human Resources, Information
Technology, has been presented in the section on Management Discussion
and Analysis of this Annual Report.
FUTURE OUTLOOK
We are cautiously optimistic of the future prospects of the company. We
believe that the economy will continue to grow with a demographic
pattern that suits our businesses. Internet penetration and usage will
also increase and we, as a company now have the platform including
human talent and industry experience to build on and create businesses
in the online space that will help the Company maintain its growth
pattern.
SUBSIDIARY COMPANIES
As of March 31, 2008, Info Edge has three wholly-owned subsidiary
companies – Naukri Internet Services Private Limited, Jeevansathi
Internet Services Private Limited and Info Edge (India) Mauritius
Limited.
Particulars of Employees
We continued to grow rapidly in 2007-08. Recruiting quality talent has
been a key focus for the HR team, and the Info Edge family has grown
from around 1,250 as on March 31, 2007 to around 1,650 as on March 31,
2008. Besides the different facet of recruitment, retention and
development of talent, as discussed in the management discussion and
analysis, an important HR initiative has been the successful
implementation and stabilization of a robust Human Resource Information
System that provides all kinds of reports and analysis at the click of
a button and ensures that all details like personal records and
employee history are easily accessible. We have also focused on
strengthening internal communication by continuing to publish and
distribute an internal quarterly e-magazine “Inside Edge” which covers
all major happenings in the Company, department or branch. Recently,
the company launched “I-Blog” as an internal communication medium to
connect Info Edgians across all locations.
The particulars of employees required under Section 217 (2A) of the
Companies Act, 1956 and the rules there under, are required to be
annexed to this Report as Annexure. However, pursuant to the provisions
of Section 219 (1)(b)(iv) of the Companies Act, 1956, the Annual Report
and Accounts are being sent to all the shareholders of the Company
without the above information. Any shareholder interested in obtaining
such particulars may write to the Company.
EMPLOYEES STOCK OPTION PLAN (ESOP)
We had adopted ESOP scheme 2003 to include our employees in wealth
sharing and in adopting a more retention oriented compensation program.
As the Company was a private limited unlisted company at that time,
therefore SEBI ESOP Guidelines were not applicable to our old ESOP
scheme. However, with the listing of Company’s shares in November 2006,
the Company introduced a new SEBI compliant ESOP scheme- ESOP 2007,
which was approved by passing a special resolution in the
Extra-ordinary General Meeting (EGM) held on March 26, 2007. The
Company made fresh grants under the new scheme in financial year
2007-08. The exercise of options would require issue of fresh capital
to the ESOP Trust at appropriate times and would therefore utilize part
of the limit of 818,857 new shares, being 3% of the issued and paid up
share capital of the Company as on December 31, 2006 (which was
27295256 shares of Rs. 10 each), already approved for the purpose by
the Shareholders in their meeting held on March 26, 2007.
The Company successfully obtained in-principle approval of National
Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited
(BSE) on the new ESOP scheme in terms of the requirement of SEBI
Employees Stock Option Scheme and Employee Stock Purchase Scheme
Guidelines, 1999.
Disclosures as required by Clause 12 of the SEBI Employees Stock Option
Scheme and Employee Stock Purchase Scheme Guidelines, 1999 are annexed
to this report.
A certificate from M/s. Price Waterhouse, Chartered Accountants,
Statutory Auditors, with regards to the implementation of the Company
Employees’ Stock Option Schemes, would be placed before the
shareholders in the next Annual General Meeting, and a copy of the same
shall be available for inspection at the registered office of the
Company.
CORPORATE GOVERNANCE
Separate detailed chapters on Corporate Governance Report, Additional
Shareholder Information and Management Discussion and Analysis are
attached herewith and form a part of this annual report.
PUBLIC DEPOSITS AND LIQUIDITY
We continue to be almost debt-free, and believe we maintain sufficient
cash to meet our strategic objectives. During 2007- 08, your Company
has not accepted any deposits or raised any fresh equity from the
public.
ENERGY CONSERVATION, TECHNOLOGY ADOPTION AND FOREIGN EXCHANGE FLOWS
Since the Company is a service sector company and does not own any
manufacturing facility, the other particulars in the Companies
(Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1998 are not applicable. However, on a proactive basis, we are
disclosing the details of energy conservation and Reserach and
Development as part of annexure-I to the directors’ report. The
particulars regarding foreign exchange earnings and expenditure are
furnished below
(Figures in Rs. million)
2007-08 2006-07
Foreign Exchange Earnings
Sales 215.56 138.03
Total Inflow 215.56 138.03
Foreign Exchange Outgo
Travel Expenses 1.91 1.34
Server Charges 36.62 38.86
Advertising, Promotion and
Marketing Expenses 16.53 35.33
IPO related expenses - 10.96
Foreign Branch Expenses 15.00 0.52
Others 7.16 3.04
Total Outflow 77.22 90.05
Net Foreign Exchange Flow 138.34 47.98
LISTING OF SHARES
The Company’s shares are listed on Bombay Stock Exchange Ltd. (BSE) &
National Stock Exchange of India Ltd. (NSE) with effect from November
21, 2006, post its initial public offering (IPO).
DIRECTORS
During the year, the Board of Directors had appointed Dr. Naresh Gupta,
as Additional Director w.e.f. October 29, 2007. Pursuant to Section 260
of the Companies Act, 1956 he holds office upto the forthcoming Annual
General Meeting, where the Members would confirm his appointment as
Director of the Company.
As per the requirements of Section 256 of the Companies Act, 1956,
two-third of the Board shall consist of retiring directors out of which
one third shall retire at every Annual General Meeting. Accordingly,
Mr. Arun Duggal, Mr. Saurabh Srivastava and Mr. Ashish Gupta, retire by
rotation as Directors at the ensuing Annual General Meeting and are
eligible for re- appointment.
INTERNAL CONTROL SYSTEMS
The Company has in place adequate systems of Internal Control to ensure
compliance with policies and procedures. Internal Audits of all the
units of the Company are regularly carried out to review the internal
control systems. The Internal Audit Reports along with implementation
and recommendations contained therein are constantly reviewed by the
Audit Committee of the Board.
AUDITORS
M/s. Price Waterhouse, Chartered Accountants hold office until the
conclusion of forthcoming Annual General Meeting and being eligible
offer themselves for re-appointment.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors confirm that:
> in the preparation of the annual accounts, the applicable accounting
standards have been followed;
> they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent, so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profits of the
Company for the year;
> they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
> they have prepared the annual accounts on a going concern basis.
NOTES TO ACCOUNTS
The observation of auditors and notes on accounts are self explanatory.
ACKNOWLEDGMENTS
We thank our clients, vendors, investors and bankers for their
continued support during the year. We place on record our appreciation
of the contribution made by employees at all levels. Our consistent
growth has been made possible by their hard work, solidarity,
cooperation and support
For and on behalf of the Board
Date : June 25, 2008 Kapil Kapoor
Place: Hong Kong Chairman
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| Source : Religare Technova | |
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