1. FINANCIAL RESULTS – CONSOLIDATED RESULTS OF MASTEK LIMITED AND ITS
SUBSIDIARIES
Rs. in Crore
PARTICULARS Year Year
ended ended
June 30, June 30,
2011 2010
Income
Income from It services and 593.3 713.8
Products
Other Income 20.9 8.1
Total Income 614.2 721.9
Expenses 612.5 626.6
Depreciation 28.8 26.7
Interest and Financial Charges 1.2 1.3
(Loss)/Profit Before (28.3) 67.3
Exceptional Items and Tax
Exceptional item 27.2 –
(Loss)/Profit Before Tax (55.5) 67.3
provision for tax, net charge/ 0.4 (0.4)
(credit)
(Loss)/Profit After Tax (55.9) 67.7
FINANCIAL RESULTS – MASTEK LIMITED (STANDALONE)
Rs. in Crore
PARTICULARS Year Year
ended ended
June 30, June 30,
2011 2010
Income 413.2 440.9
(Loss)/Profit before Tax (5.6) 24.0
Tax Expense/(Credit) (4.3) (13.0)
(Loss)/Profit After Tax (1.3) 37.0
Add: Profit brought forward 249.4 239.5
from previous year
Profit available for 248.1 276.5
appropriation
Interim Dividend - 5.4
Final Dividend - 3.4
Corporate Dividend tax - 1.5
transferred to general - 16.9
reserve
Balance carried to Balance 248.1 249.4
Sheet
2. RESULTS OF OPERATIONS
A) Group global operations
The Company’s performance for the financial year ended June 30, 2011
under review (FY 2011) was affected by a number of factors. key among
those was the marked decrease in clients engaging in transformational
deals due to the global economic crisis and particularly in UK where
Mastek has a substantial presence. the long sales cycles as well as
reduction in insurance revenues from Capita, UK added to the head winds
that the Company faced this year. the above mentioned reasons along
with the continued product development spends in the insurance vertical
in North America and wage hikes to retain the best talent had a
substantial impact on the financial performance.
On a consolidated basis, the Company registered a total income of Rs.
614.2 crore in FY2011. this represents a 14.9% decline compared to Rs.
721.9 crore in the preceding year. As a consequence, it had a loss of
Rs. 55.9 crore in FY 2011 compared to the profit of Rs. 67.7 crore in
FY 2010. the loss in FY 2011 is after considering an exceptional item
of Rs. 27.2 crore in relation to impairment of goodwill of Vector
Insurance services. Despite the adverse circumstances, the Company
registered a Cash croft of Rs. 0.5 crore in FY 2011 compared to Rs. 94
crore in FY 2010.
The UK remained the largest contributor to Mastek’s business among all
its operating geographies. During the year under review, the UK
operations contributed Rs. 290.9 crore in revenues, amounting to 49% of
overall consolidated revenues for the year. this was however a
de-growth of 22% compared to Rs. 373.9 crore during the corresponding
period last year. one of the key clients, Capita UK, took a relook at
its strategy with respect to migrating policies of its clients on to
the Elixir4 platform. the further development on this platform has been
put on hold leading to a reduction in the revenues from the insurance
vertical.
The North American operations, which now includes both the us and
Canada businesses, also registered a de-growth of 11.9% to Rs. 258.0
crore from Rs. 292.8 crore last year primarily due to lack of new
account wins in the first half of the year.
During the year under review, the Company has targeted its product
development spends
in North America with the objective of building the end to end platform
in the Life and Annuity space. the Company also acquired substantially
all of the assets of Glastonbury, CT based SEG software, LLC, a leading
provider of policy administration systems covering individual and group
life, health & annuity insurance products. this acquisition reinforces
the Company’s commitment to the North American insurance market and
will expand its presence and capabilities in the life and annuity
policy administration arena.
Mastek’s operations in the Asia-Pacific region, specifically India,
were impacted on the insurance side due to the new IRDA regulations
which have forced providers to become competitive to survive in the
market place. expenses related to It and marketing have been slashed
leading to a decreased pipeline of opportunities for the It players in
the insurance space. However, there was good traction from government
projects in India and have been involved in implementing niche projects
on the social justice, sales tax and the education fields for various
State governments in India. During FY 2011, these operations
(Asia-Pacific including India & middle east) contributed Rs. 44.3 crore
to overall consolidated revenues as compared to Rs. 47.1 crore in FY
2010 refecting a de-growth of 6%.
The last quarter of the year has refected improved performance with the
12 month order backlog ending higher at Rs. 309 crore. overall, the
Company added 14 new clients in this financial year.
(A more detailed discussion of the Company’s business model, strategy,
and performance appears in the management Discussion & Analysis section
of this annual report.)
B) Mastek standalone operations
On a stand-alone basis, Mastek reported a total income of Rs. 413.2
crore for FY 2011 as compared to Rs. 440.9 crore for FY 2010. the
Company made a Net Loss of Rs. 1.3 crore compared to the profit of Rs.
37 crore in FY 2010.
C) Board and management
During the year under review, Ms. Priti Rao, Mr. Venkatesh Chakravarty
and Dr. Rajendra Sisodia were inducted as Independent Directors of the
Company. In the same period,
Mr. Raj Nair and Mr. Amit shah resigned from the Board of the Company.
Mr. Mrinal Sattawala, group president resigned from the services of the
Company in June, 2011. Mr. Sudhakar Ram, the Company’s Chairman &
managing Director has now taken over responsibility of all operations
and the senior leadership team reports to him directly.
3. BUSINESS OUTLOOK
FY 2012 is expected to be a better year with increased traction across
the key geographies in UK and North America. positive signals of the
momentum can be witnessed from the deal wins in UK in the last quarter
of FY 2011, increasing pipeline of opportunities in the Non-Life
(property & Casualty) space in North America, improved order backlog
position and some exciting developments on the government side in
India. the initiatives that were put in place at the start of the year
are expected to translate into revenue growth while the Company will
strive towards profitability.
4. LIQUIDITY AND CASH EQUIVALENT
The Company continues to maintain a good level of cash and cash
equivalent, which enables it to not only eliminate short and
medium-term liquidity risks but also provide the leverage to scale up
operations at a short notice.
During the year, Mastek invested surplus funds in Liquid schemes and
Fixed maturity plans of mutual Funds and Fixed Deposits with leading
Banks. As of June 30, 2011, the Cash and Cash equivalent (including
investment in mutual Funds) stood at Rs. 159 Crore.
5. AUDITED ACCOUNTS OF SUBSIDIARY COMPANIES
In view of the Circular No.2/2011 dated 8th February, 2011 issued by
the government of India, ministry of Company Affairs, New Delhi, the
accounts of subsidiary companies are not attached to the audited
accounts of the Company. the Board of Directors of the Company has
given consent for not attaching the Annual Accounts of the subsidiary
companies. We, hereby, undertake that the Annual Accounts of subsidiary
companies and related detailed information shall be made available to
the shareholders at any point of time. Copies of the annual accounts of
subsidiary companies shall also be available for inspection by any
shareholder at the registered office of the Company.
6. ISSUE OF SHARE CAPITAL
During the year, the Company allotted 7,250 equity shares of Rs. 5 each
to its eligible employees who exercised their options under employee
stock option plan.
7. DIVIDEND
In view of the loss incurred by the Company during the year and to
conserve Cash resources for future business operations, the Directors
do not propose a Dividend for the year ended June 30, 2011.
8. EXCESS REMUNERATION PAID TO CHAIRMAN & MANAGING DIRECTOR AND
EXECUTIVE DIRECTOR
In response to the paragraph 4 of the Auditor’s Report for the year
ended June 30, 2011 in respect of excess remuneration paid to Chairman
& managing Director and executive Director aggregating to Rs. 0.6 crore
and Rs. 0.2 crore respectively, the Company is approaching the
shareholders and Central government to seek their approval in respect
of the waiver for recovery of excess remuneration paid as mentioned
above.
9. DIRECTORS’ RESPONSIBILITY STATEMENT
The Board of Directors of the Company confirms:
- that in the preparation of the annual accounts, the applicable
accounting standards have been followed and there has been no material
departure;
- that the selected accounting policies were applied consistently and
the Directors 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 as on June 30, 2011, and of the Loss of the Company for the
year ended on that date;
- that proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, to safeguard the Company’s assets and prevent and
detect fraud and other irregularities;
- that the annual accounts have been prepared on a going concern basis.
10. DIRECTORS
Mr. Anil Singhvi and Dr. Rajendra Sisodia, Directors of the Company,
retire by rotation and, being eligible, offer themselves for
re-appointment.
The Board of Directors, in modification of existing terms, re-appointed
Mr. Sudhakar
Ram as Chairman & managing Director and Mr. Radhakrishnan Sundar as
executive Director effective July 1, 2011, subject to approval of
shareholders and other prescribed authorities for a period of 3 years.
11. AUDITORS
you are requested to appoint Auditors and fix their remuneration. The
retiring auditors, M/s. Price Waterhouse, Chartered Accountants, (Firm
Registration No. 012754N) have confirmed their availability within the
limits of section 224(1B) of the Companies act,1956.
12. HUMAN RESOURCES
Mastek deploys its intellectual capability to create and deliver
intellectual property (IP)-led solutions that make a business impact
for its global clients. For this, the key success enabler and most
vital resource is world-class talent. Mastek continually undertakes
measures to attract and retain such high quality talent.
As on June 30, 2011, the Company had a total of 2905 employees. the
Company has resumed recruitment of fresh talent for its different
projects.
The Directors wish to place on record their appreciation for the
contributions made by employees to the Company during the year under
review.
Information as per section 217(2A) of the Companies Act, 1956, read
with the Companies (particulars of employees) Rules, 1975, forms part
of this report. However, as per the provisions of section 219(1)(b)(iv)
of the Companies Act, the report and accounts, excluding the statement
of particulars under section 217(2A), are being sent to all members.
Any member interested in obtaining a copy of the statement of
particulars may write to the Company at its Registered Office.
13. EMPLOYEE STOCK OPTIONS
Plan II
The Company established a new scheme in 2002 for granting 700,000 stock
options to employees and each option representing one equity share of
the Company. the exercise price is as governed by the guidelines issued
by SEBI. the scheme is governed by the employee stock option scheme and
employees stock purchase guidelines issued in 1999 by SEBI. There is a
minimum period of twelve months for the first vesting from the date of
the grant of options. the options are exercisable within two years of
their vesting. As per the SEBI guidelines issued in 1999, and as
amended from time to time, the excess of the market price of the
underlying equity shares as of the date of the grant of the option over
the exercise price of the option
is to be recognized and amortized on a straight line basis over the
vesting period. the options granted during the year have been granted
at an exercise price which is equal to the market price of the
underlying equity shares. Consequently, there is no compensation cost
in the current year. In April, 2006, the Company issued Bonus shares
in the ratio of 1:1 and the number of unvested and unexercised options
and the price of the said options have been adjusted accordingly.
In accordance with the guidelines, the Company has passed the necessary
special resolutions in January 2002 to approve the scheme and to extend
the plan to the employees of its subsidiaries.
(No. of options)
Year Year
ended ended
June 30, June 30,
2011 2010
Opening Balance 7,750 91,520
Granted during the year – –
Exercised during the year (5,250) (14,458)
Cancelled during the year (2,500) (69,312)
Balance unexercised options – 7,750
Plan III
The Company passed special resolutions at its Annual general meeting
held on September 20, 2004 approving the allocation of 700,000 stock
options to the eligible employees of the Company and its subsidiaries.
The Company subsequently established a new scheme in 2004 for granting
700,000 stock options to the employees referred to above, each option
representing one equity share of the Company. the exercise price is as
governed by the guidelines issued by SEBI. The scheme is governed by
the employee stock option scheme and employee stock purchase guidelines
issued in 1999 by SEBI and as amended from time to time. The first
vesting of the stock options shall happen only on completion of one
year from the date of grant and the options are exercisable within two
years from the date of vesting. As per the SEBI guidelines, the excess
of market price of the underlying equity shares as of the date of the
grant of the options over the exercise price of the option is to be
recognized and amortized on a straight line basis over the vesting
period. the options granted during the year have been granted at an
exercise price which is equal to the market price of the underlying
equity shares. Consequently, there is no compensation cost in the
current year. In April, 2006 the Company issued Bonus shares in the
ratio of 1:1 and the number of unvested and unexercised options and the
price of the said options have been adjusted accordingly.
(No. of options)
Year Year
ended ended
June 30, June 30,
2011 2010
Opening Balance 546,794 898,624
Granted during the year – –
Exercised during the year – (26,938)
Cancelled during the year (267,502) (324,892)
Balance unexercised options 279,292 546,794
Plan IV
The shareholders of the Company through postal Ballot on August 9, 2007
approved the allocation of 1,000,000 stock options to the eligible
employees of the Company and its subsidiaries.
The Company subsequently established a new scheme in 2007 for granting
1,000,000 stock options to the employees referred to above, each option
representing one equity share of the Company. the exercise price is as
governed by the guidelines issued by SEBI. The scheme is governed by
the employee stock option scheme and employee stock purchase guidelines
issued in 1999 by SEBI and as amended from time to time. The first
vesting of the stock options shall happen only on completion of one
year from the date of grant and the options are exercisable within two
years from the date of vesting. During the year the Company has
extended the vesting period from two years to seven years. As per the
SEBI guidelines, the excess of market price of the underlying equity
shares as of the date of the grant of the options over the exercise
price of the option is to be recognized and amortized on a straight
line basis over the vesting period. the options granted during the year
have been granted at an exercise price which is equal to the market
price of the underlying equity shares. Consequently, there is no
compensation cost in the current year.
(No. of options)
Year Year
ended ended
June 30, June 30,
2011 2010
Opening Balance 513,714 614,917
Granted during the year – –
Exercised during the year (2,000) (3,047)
Cancelled during the year (104,476) (98,156)
Balance unexercised
options 407,238 513,714
Plan V
The Company introduced a new scheme in 2008 for granting 1,500,000
stock options to the employees, each option representing one equity
share of the Company. the exercise price as may be determined by the
Compensation Committee and such price may be the face value of the
share from time to time or may be the market price or any price as may
be decided by the Committee and will be governed by the guidelines
issued by SEBI. The scheme is governed by the employee stock option
scheme and employee stock purchase guidelines issued in 1999 by AEBI
and as amended from time to time. The first vesting of the stock
options shall happen only on completion of one year from the date of
grant and the options are exercisable within seven years from the date
of vesting. As per the SEBI guidelines, the excess of market price of
the underlying equity shares as of the date of the grant of the options
over the exercise price of the option is to be recognized and amortized
on a straight line basis over the vesting period. The options granted
during the financial year ended June 30, 2011 and June 30, 2010 have
been granted at an exercise price which is equal to the market price of
the underlying equity shares except for 50,000 options (previous year
25,000 options), which had been granted at a price less than the market
price. Consequently, compensation cost of Rs. 0.9 crore (previous year
Rs. 0.6 crore) has been charged to the Profit and Loss account during
the current year.
(No. of options)
Year Year
ended ended
June 30, June 30,
2011 2010
Opening Balance 891,000 61,000
Granted during the year 879,248 1,116,000
Exercised during the year – –
Cancelled during the year (452,900) (286,000)
Balance unexercised
options 1,317,348 891,000
Plan VI
The Company introduced a new scheme in 2010 for granting 2,000,000
stock options to the employees, each option representing one equity
share of the Company. the exercise price as may be determined by the
Compensation Committee and such price may be the face value of the
share from time to time or may be the market price or any price as may
be decided by the Committee
and will be governed by the guidelines issued by SEBI. The scheme is
governed by the employee stock option scheme and employee stock
purchase guidelines issued in 1999 by SEBI and as amended from time to
time. The first vesting of the stock options shall happen only on
completion of one year from the date of grant and the options are
exercisable within seven years from the date of vesting. As per the
SEBI guidelines, the excess of market price of the underlying equity
shares as of the date of the grant of the options over the exercise
price of the option is to be recognized and amortized on a straight
line basis over the vesting period.
(No. of options)
Year Year
ended ended
June 30, June 30,
2011 2010
Opening Balance – –
Granted during the year 569,600 –
Exercised during the year – –
Cancelled during the year – –
Balance unexercised
options 569,600 –
Disclosure required under SEBI (ESOS & ESPS) guidelines, 1999
In order to enable the Company to continue with its ESOP, the Company
passed special resolutions through postal ballot in January, 2002 for
issue of 700,000 stock options to its employees. At the Annual general
meeting held on September 20, 2004, the Company passed special
resolutions to issue 700,000 stock options to its employees. the
Company passed special resolutions through postal ballot in August 9,
2007 for issue of 1,000,000 stock options to its employees. on march
20, 2009, the shareholders of the Company approved the further issue of
1,500,000 options to the employees. At the Annual general meeting of
the Company held on October 1, 2010, the shareholders of the Company
approved the further issue of 2,000,000 options.
a) options granted: opening: 1,959,258
b) Issued during the year: 1,598,848
c) Pricing formula: Market Price as defned by SEBI from time to time or
face value or such price as may be decided by the Compensation
committee from time to time.
d) options vested: 781,246
e) options exercised: 7,250
f) Total number of shares arising as a result of exercise of options:
7,250
g) Options lapsed: 827,378
h) Variations of terms of options: NIL
i) money realized by exercise of options: Rs. 1,129,625
j) total number of options in force: 2,723,478
k) employee-wise details of options granted to:
(1) senior managerial personnel: 37
(2) Any other employee who receives a grant in any one year of option
amounting to 5% or more of more of option granted during that year: 5
(3) Identified employees who were granted option, during any one year,
equal to or exceeding 1% of the issued capital (excluding outstanding
warrants and conversions) of the Company at the time of grant: Mr.
Mrinal Sattawala was granted 400,000 options during the year ended June
30, 2011.
l) Diluted EPS pursuant to issue of shares on exercise of option
calculated in accordance with Accounting standard (As) 20 is Rs.
(0.50).
m) The impact of this difference on profits and on EPS of the Company
(Rs. in Crore)
Profit After Tax (PAT) (1.33)
Less: Additional employee 4.27
compensation based on fair value
Adjusted PAT (5.60)
Adjusted EPS (in Rs.) (2.08)
n) Weighted-average exercise price and fair value of stock options
granted during the year:
Stock Weighted Weighted Closing
options average Average market price
granted on exercise fair value at BSE on
price the date of
(in Rs.) grant (in Rs.)
July, 2010 295.40 153.93 295.40
October, 242.65 124.90 242.65
2010
April, 2011 125.30 63.57 125.30
o) Description of The Black Scholes
the method option pricing model
and significant was developed for
assumptions used estimating fair value
during the year of traded options
to estimate the that have no vesting
fair value of the restrictions and are
options, including fully transferable.
the following Since option pricing
weighted average models require
information: use of substantive
assumptions, changes
therein can materially
affect fair value of
options. The option
pricing models do not
necessarily provide a
reliable measure of
fair value of options.
The main assumptions used in the Black- Scholes option-pricing model
during the year were as follows:
Sr. Grant Date July October April
no 20, 2010 13, 2010 14, 2011
1 Risk Free Interest
Rate 7.54% 7.94% 7.94%
2 Expected
Life (years) 6 6 6
3 Expected
Volatility 53.25% 51.46% 50.00%
4 Dividend
Yield 1.54% 1.54% 1.54%
14. ADDITIONAL INFORMATION RELATING TO CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Information under section 217(1)(e) of the Companies Act, 1956, read
with the Companies (Disclosure of particulars in the Report of the
Board of Directors) Rules, 1968, forming part of the Directors’ Report
for the year ended June 30, 2011:
a) Conservation of Energy
As a software Company, energy costs constitute a small portion of the
total cost and there is not much scope for energy conservation.
Form A is not applicable for software industry.
b) Technology Absorption
Not Applicable
c) Foreign Exchange Earnings and Outgo -
Total foreign exchange used and earned by the Company
(Rs. in Crore)
June 30, June 30,
2011 2010
Exchange Used 162.1 173.3
Exchange Earned 384.0 383.1
15. CORPORATE GOVERNANCE
Mastek follows best practices in Corporate governance by benchmarking
them with the best in the world.
The Board of Directors re-appointed Mr. Sudhakar Ram as Chairman &
managing Director and Mr. Radhakrishnan Sundar as executive Director
with effect from July 1, 2011, subject to approval of shareholders and
other prescribed authorities for a period of 3 years on the following
terms and conditions:
Mr. Sudhakar Ram, Chairman & Managing Director
Basic Salary:
Rs. 3,35,000/- month (Rupees three Lakhs thirty Five thousand only),
with an option of annual increment as may be decided by the
Compensation Committee/ Board of Directors, from time to time.
Bonus:
Based on the performance as may be evaluated by the Board of the
Directors/Compensation Committee, from time to time on the basis of
Actual (1) order booking (2) Revenue and (3) Net profits for each year.
Company Accommodation:
The Company will provide rent-free furnished accommodation to Mr Ram
and his family members and the annual cost to the Company thereof shall
not exceed Rs. 20 Lakhs (Rupees twenty Lakhs only).
Special Allowance:
Rs. 332,000/- month (Rupees three Lakhs thirty two thousand only).
Car Facility:
Car facility with driver to be used for the business of the Company.
Club Fees:
Re-imbursement of Club Fees.
Education Expenses:
Reimbursement of education expenses for one dependent child, not
exceeding Rs. 11 Lakhs per annum.
Telephone:
Free telephone facility at his residence to be used for the business of
the Company.
Provident Fund Contribution:
Company’s contribution towards provident fund as per rules of the
Company, but not exceeding 12% of the salary.
Gratuity:
As per rules of the Company.
Perquisites:
As may be permitted as per the policy of the Company or by the Board of
Directors and/or the Compensation Committee of the Board of Directors.
For the purposes of calculating the above ceilings, perquisites shall
be evaluated as per Income-tax Rules, wherever applicable. In the
absence of any such Rules, perquisites shall be evaluated at actual
basis. provision of car and telephone for use of the Company’s business
and telephone at the Chairman and managing Director’s Residence will
not be considered as perquisites. the following shall not be included
for the purposes of computation of the Chairman and managing Director’s
remuneration or perquisites as aforesaid:
(i) the Company’s contribution to provident fund,
(ii) encashment of leave at the end of the tenure of office of the
Chairman and Managing Director,
(iii) Gratuity payable at the rate not exceeding half a month’s salary
for each completed year of service.
Notice Period: six months notice or Notice pay equivalent to six months
basic salary.
Severance Fees: The Company has not made any special provisions for
severance fees.
Stock Options: NIL
Mr. Radhakrishnan Sundar, Executive Director
Basic Salary:
Rs. 2,35,000/- (Rupees two Lakhs thirty Five thousand only) per month,
with an option of annual increment as may be decided by the
Compensation Committee/ Board of Directors, from time to time.
Bonus:
Based on the performance as may be evaluated by the Board of the
Directors/Compensation Committee, from time to time on the basis of
Actual (1) order booking (2) Revenue and (3) Net profits for each year.
House Rent Allowance:
The Company will provide furnished accommodation to Mr Sundar. However,
where no accommodation is provided by the Company to Mr Sundar or Mr
Sundar does not opt for the accommodation provided by the Company, then
he shall be entitled to House Rent Allowance subject to a ceiling of
50% of the basic salary i.e Rs. 1,17,500/- (Rupees one Lakh seventeen
thousand Five hundred only) per month.
Adhoc Allowance:
Rs. 2,31,000 (Rupess two Lakhs thirty one thousand only) per month.
Car Facility:
Car facility with driver to be used for the business of the Company.
Telephone:
Free telephone facility at his residence to be used for the business of
the Company.
Provident Fund Contribution:
Company’s contribution towards provident fund as per rules of the
Company, but not exceeding 12% of the salary.
Gratuity:
As per rules of the Company.
Perquisites:
As may be permitted as per the policy of the Company or by the Board of
Directors and/or the Compensation Committee of the Board of Directors.
For the purposes of calculating the above ceilings, perquisites shall
be evaluated as per Income-tax Rules, wherever applicable. In the
absence of any such Rules, perquisites shall be evaluated at actual
basis.
Provision of car and telephone for use of the Company’s business and
telephone at the executive Director’s Residence will not be considered
as perquisites. the following shall not be included for the purposes of
computation of the executive Director’s remuneration or perquisites as
aforesaid:
(i) the Company’s contribution to provident fund,
(ii) encashment of leave at the end of the tenure of office of the
Executive Director,
(iii)Gratuity payable at the rate not exceeding half a month’s salary
for each completed year of service.
Notice Period: six months notice or Notice pay equivalent to six months
basic salary.
Severance Fees: the Company has not made any special provisions for
severance fees.
Stock Options: NIL
The report on corporate governance is included in the Annual Report.
16. ACKNOWLEDGEMENTS
The Directors would like to place on record their sincere appreciation
for the continued co- operation, guidance, support and assistance
provided by the sEEPZ Authorities, MIDC, Department of electronics,
ICICI Bank, standard Chartered Bank Ltd and other government
departments and authorities.
By the Order of the Board
Ashank Desai
Director
Mumbai
July 25,2011
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