Omnitech Infosolutions

The Directors have pleasure in presenting the eighteenth Annual Report
 together with the audited accounts of the - company for the year ended
 31st March 2008.
 
 I.  FINANCIAL HIGHLIGHTS
                                                          (Rs. In lacs)
 
 PARTICULARS                                      2007-08       2006-07
 
 Gross Sales                                     13134.93       7713.75
 Profit before Interest, Depreciation and 
 Tax (PBIDT)                                      3565.97       1752.50
 Interest                                          193.97        114.83
 Depreciation                                      372.23        288.25
 Profit before Tax (PBT)                          2999.77       1349.41
 Provision for Taxation including FBT & 
 Deferred Tax                                      442.43        131.61
 Profit after Tax (PAT)                           2557.34       1217.81
 Balance brought forward from previous year       1844.92        784.85
 Amount Available for Appropriation               4402.26       2002.66
 Appropriations:
 Utilized for Issue of Fully Paid Up Bonus Shares       -         47.70
 Proposed Dividend                                 157.67         94.06
 Dividend Tax                                       26.80         15.98
 General Reserve                                    65.00
 Provision for Gratuity as on 01.04.2008            20.65
 Provision for Leave Encashment as on 01.04.2008    21.95
 Balance Carried Forward to Balance Sheet         4110.19       1844.92
 
 II.  REVIEW OF PERFORMANCE
 
 a.  Operating Results:
 
 Your Company continued to achieve strong and desired growth in the
 financial year 2007-08 into international as well as domestic markets.
 During the Year, the Company achieved gross sales of Rs. 13134.93 Lacs
 as compared to Rs. 7713.75 in the previous year thereby recording an
 increase of 70.28%.
 
 The Net Profit (PAT) for the year was Rs. 2557.34 Lacs, an increase of
 more than 4 times in the last three years.
 
 b.  Financing Cost:
 
 The Finance Cost has increased by Rs. 88.33 Lacs as compared to the
 previous year, which is mainly due to raising of additional working
 capital facility for covering up the increase in Gross Sales .
 
 III.  DIVIDEND
 
 Your Board of Directors recommends Dividend @ 12% i.e Rs. 1.2 per
 equity share for the year ended 31st March, 2008.  Dividend as
 recommended if declared will absorb Rs. 15,767,141/-for the payment to
 the shareholders and Rs.2,679,626/ - as Corporate Dividend Tax.
 
 IV.  FIXED DEPOSITS
 
 Your company has not accepted or invited any deposits from the public
 during the year.
 
 V.  SHARE CAPITAL
 
 Your company successfully went public with an IPO of 3,333,333 shares
 to raise Rs. 35 crores during the year. The company is listed on both
 NSE and BSE and is actively traded on both the exchanges.
 
 Also, during the year under review, the authorized share capital of the
 company was increased to Rs. 20.00 crores consisting of 2,00,00,000
 Equity Shares of Rs. 10 each.
 
 VI.  STRATEGIC ACQUISITIONS AND ALLIANCES
 
 Keeping with the objective of Going Global, the company entered into a
 Joint Venture with Sanwell Company Limited (SWL) through Omnitech TSB
 Company Limited (OTSB), a Body Corporate incorporated under the Laws of
 Japan in which Omnitech holds 67% stake. Omnitech TSB Company Limited &
 Sanwell Company Limited have invested in the ratio of 60% and 40%
 respectively. The JV commenced operations on 1st December, 2007.
 
 VII.  QUALITY
 
 Your company recognizes quality as an important differentiator in
 industry. Therefore, it has well defined stringent quality standards
 with customer focus and management commitment and involvement across
 hierarchies.  Your company has been recertified for ISO 9001:2000 and
 is the way towards ISO 27001:2000 certification to get the benefits of
 ITIL guidelines and be a true global service provider. Your company is
 also the way to get CMM level 4 certification.
 
 V Quality Policy: To achieve business leadership in IT solutions and
 services trough continuous enhancement of customer satisfaction by
 deploying innovative technologies with quality management in
 Products-People-Processes supported by effective customer relationship
 management and efficient services.
 
 VIM. INFRASTRUCTURE
 
 During the year, your company added another feather in its cap with the
 latest state of art Disaster Recovery Center- Omnicenter at Mahape,
 Navi Mumbai. Omnicenter with a total carpet area of 16000 sq. ft. has a
 capacity of 320 Business recovery Positions among other facilities.
 
 IX.  HUMAN RESOURCES
 
 Your companys HR policies and processes are aligned to effectively
 drive its expanding business and emerging opportunities. This has been
 achieved by continuously investing in learning and development
 programs, creating a compelling work environment, empowering employees
 at all levels and maintaining well-structured reward and recognition
 mechanisms.
 
 Your company employed a total of 775 employees as on 31st March, 2008,.
 During the year, ydur company has successfully utilized Employee
 Referral Program to get new team members. OmniConnect, the corporate
 intranet of the company was launched during the year for the employees
 of the company to provide seamless communication to Omnicians and
 facilitate a platform to take care of various needs of each Omnician.
 
 Launch of Manthan - an initiative for welfare of Omnicians and
 Society. , Aunder this program, four groups - Chanakya, Shrishti, Disha
 and Krishtij are formed. Each of these groups consists of 20 members
 with an elected leader. The purpose of these groups is to increase the
 interdepartmental and interpersonal communication, problem solving, to
 take up social and other welfare initiatives and employee engagement.
 Initiatives such as trainings, sports events and mentoring of Omnicians
 etc. were among a few of activities taken up during the year. Apart
 from these, your company participated and organized various seminars.
 
 Your company has approached various top notch B Schools and colleges
 across the country. Today the company is one of the preferred places to
 work for professionals across the country.
 
 X.  AWARDS & RECOGNITIONS
 
 During the year, Microsoft awarded your Company as Microsoft Gold
 Solution Partner thereby enabling the Company to provide enterprise
 solutions.
 
 Further, IBM selected your Company as their IBM Authorised Training
 Partner, which will enable the Company to provide IBM Certified
 Trainings on Tivoli - an Infrastructure Management Suite, Rational - a
 Performance Management and Software Testing Platform Tools and Web
 Sphere Solutions.
 
 HP selected your Company as its Software GOLD partner for its premier
 Performance Management, IT Governance and testing tools - which will
 help the Company to deliver high end quality services for application
 and infrastructure monitoring and management.
 
 XI.  CORPORATE GOVERNANCE
 
 A report on Corporate Governance along with Auditorscertificate on
 compliance with the conditions of Corporate Governance as stipulated in
 clause 49 of the listing agreement, is provided elsewhere in the Annual
 report.
 
 XII.  CORPORATE SOCIAL RESPONSIBILITY
 
 Your Company believes that society is one of its important stakeholders
 and approaches its social responsibility as a corporate citizen.
 Reaffirming its role as a contributing member of the social and
 economic milieu it occupies, the Company aligns its business operations
 with social values. As a responsible corporate citizen, the Company is
 committed to extend its hand to the under privileged in areas of
 education, healthcare, etc. The company actively took part to help the
 flood hit city of Mumbai in during the year and contributed towards
 sponsorships for higher education.
 
 XIII.  DIRECTORS
 
 In terms of the Articles of Association of the Company, Mr. Maganlal
 Hemani, Non-Executive Chairman and Mr. V.H.  Iyer, Independent Director
 of your Company retire at the forthcoming Annual General Meeting and
 being eligible, offer themselves for re-appointment. Brief Resume of
 the Directors proposed to be reappointed, nature of their expertise in
 specific functional areas, the names of the Companies in which they
 hold Directorships & memberships/ chairmanships of Board Committees and
 their shareholdings in the Company, as stipulated under Clause 49 of
 the Listing Agreements with the Stock Exchanges in India, are provided
 in the Notice of Annual General Meeting.
 
 XIV.  AUDITORS
 
 The Companys auditors, M/s Kothari & Kenia, Chartered Accountants,
 Mumbai, retire at the forthcoming Eighteenth Annual General Meeting and
 are eligible for re-appointment. The retiring auditors have furnished a
 Certificate their eligibility for re-appointment under Section
 224(1)(B) of the Companies Act, 1956 and have indicated their
 willingness for re-appointment.
 
 Pursuant to the re commendation of the Audit Committee at their meeting
 held on 13th May, 2008 for reappointment of M/s Kothari & Kenia as the
 Statutory Auditors of the Company for the Financial Year 2008-09 to
 hold office till the conclusion of the next Annual General Meeting of
 the Company scheduled to be held in the Year 2009, the Board of
 Directors have, at their meeting held on 13th May, 2008 approved
 reappointment of M/s Kothari & Kenia as the Statutory Auditors of the
 Company for the Financial Year 2008-09 to hold office till the
 conclusion of the next Annual General Meeting of the Company scheduled
 to be held in the Year 2009. However, their reappointment will be
 subject to the approval of Shareholders of the Company at the Annual
 General Meeting.
 
 XV.  STATUTORY INFORMATION
 
 As required by the provisions of Section 217 (2A) of the Companies Act,
 1956 as amended, read with the Companies (Particulars of Employees)
 Rules, 1975, the names and other particulars of the employees are set
 out in the Annexure B to this Report
 
 The particulars relating to energy conservation, technology absorption,
 foreign exchange earnings and outgo, as required to be disclosed under
 section 217(1)(e) of the Companies Act, 1956 read with the Companies
 (Disclosure of continued Particulars in the Report of Board of
 Directors) Rules, 1988, are set out in the AnnexureA included in this
 report.
 
 XVI. DIRECTORSRESPONSIBILTY STATEMENT
 
 Based on representations from the Management, the Directors state, in
 pursuance of Section 217 (2AA) of the Companies Act, 1956, that:
 
 i) the Company has, in the preparation of the annual accounts for the
 year ended 31st March 2008, followed the applicable accounting
 standards along with proper explanations relating to material
 departures, if any;
 
 ii) the Directors 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 as at 31st March 2008 and of the profit of the Company
 for the financial year ended 31st March 2008;
 
 iii) the Directors have taken proper and sufficient care to the best of
 their knowledge and ability, for the maintenance of adequate accounting
 records in accordance with the provisions of the Act for safeguarding
 the assets of the Company and for preventing and detecting fraud and
 other irregularities; and
 
 iv) the Directors have prepared the annual accounts on a going concern
 basis.
 
 XVII. ACKNOWLEDGEMENTS
 
 Your Directors take this opportunity to thank all the Shareholders,
 Customers, Vendors, Bankers, and Regulatory & Government Authorities
 for the strong support that they have continued to extend to your
 Company.
 
 The Board also takes this opportunity to place on record its
 appreciation of the outstanding performance and dedication of your
 Companys employees at all levels, without whose commitment the
 achievement of results as indicated above could not have been possible.
 
      By Order of the Board of Directors Omnitech InfoSolutions Limited
 
 Sd/-                                            Sd/-
 (Atul Hemani)                             (Avinash Pitale)
 Managing Director                          Executive Director
 
 Place : Mumbai
 Date  : 13th May, 2008