Smartlink Network Systems
BSE: 532419 | NSE: SMARTLINK | ISIN: INE178C01020 | Computers - Hardware
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
The Board of Directors of your Company have pleasure in presenting the
15th Annual Report together with Audited Balance Sheet and Profit &
Loss Account for the financial year ended 31st March 2008.
1. FINANCIAL RESULTS AND APPROPRIATION
(Rs. in million)
2007-08 2006-07
Turnover (Gross) 245.06 3051.99
Income from Services 84.32 24.80
Profit Before Depreciation and Tax 451.88 343.86
Less: Depreciation for the year 74.61 76.33
Profit Before Tax (PBT) and 377.26 267.53
Exceptional items
Add : Exceptional Items (Net) 4.45 -
Profit Before Tax 381.71 267.53
Less: Provision for Tax
a) Current Tax 104.62 52.50
b) Deferred Tax (13.32) (0.1)
c) Fringe Benefit Tax 5.06 3.19
Profit After Tax 285.34 211.94
Add/(Less): Tax adjustment of
Previous Year - 7.33
Net Profit 285.34 219.27
Balance of profit brought forward 1123.73 996.68
Amount avaifable for Appropriations 1409.07 1215.94
Transfer to General Reserve 29.00 22.00
Dividend 60.00 60.00
Tax on Dividend 10.20 10.20
Balance carried forward to Balance Sheet 1309.86 1123.73
Earning per Share (Rs.) 9.51 7.31
2. PERFORMANCE AND SIGNIFICANT DEVELOPMENTS
In the financial year 2007-08 your Company achieved a turnover of Rs.
2945.06 million as compared to Rs. 3051.99 million in the previous
year. The turnover for the current year from the core business of
networking products has grown by 16.21 % to Rs. 2945.06 million as
compared to Rs. 2534.09 million in the previous year. The Net Profit of
the Company grew by 30.13 % and stood at Rs. 285.34 million as compared
to Rs. 219.27 million in the previous year. Income from services grew
from Rs.24.80 million in the previous year to Rs.84.32 million in the
current year.
The growth in turnover from core networking business was primarily led
by growth in switches and wireless products and robust growth in all
categories of passive networking products comprising of copper and
fiber range.
During the year, the Company completed all formalities and transferred
the entire Sales and Marketing business of Gigabyte motherboards to M/s
Gigabyte Technology (India) Limited for a consideration of Rs.90.42
million. Your company is presently manufacturing motherboards on job-
work basis to Gigabyte Technology (India) Limited. This has contributed
to the significant growth in income from services during the current
year.
Your Company during the year inaugurated new R&D center at Bangalore to
drive companys R&D initiatives in India by focusing on Converged IP
solutions, Business Routers, Voice & Video over IP Products.
3. DIVIDEND
Your Directors have recommended for your consideration the payment of a
dividend for the year 2007-08 @ 100 % on the paid up equity Capital,
i.e., Re. 21- per share, to be paid, if approved by Members at the
Annual General Meeting.
4. EMPLOYEE STOCK OPTION PLAN
The Company has an ongoing Employee Stock Option Scheme, which is being
administered by the D-Link (India) Ltd ESOP Trust.
During the year under the said Scheme D-Llink (india) Limited - Esop
Trust granted 50,000 options to its eligible employees at Rs.60/-per
share. The Information and details of options granted under D-Link
(India) Limited ESOP Trust plan for the year ended 31st March 2008 are
given in the Annexure I to this Report.
The shareholders at the Annual General Meeting held on 20th August,
2007 had approved the D-Link Employee Stock Option Plan 2007. The
existing Compensation Committee has been reconstituted and renamed as
ESOP Compensation Committee for implementing the Employee Stock Option
Plan, 2007. However, no options have been given underthis Plan till
date.
5. MANAGEMENT DISCUSSIONS ANALYSIS REPORT In accordance with Clause 49
of the Listing Agreement with the Stock Exchanges, Management
Discussion & Analysis Report is appended to this report.
6. CORPORATE GOVERNANCE
A separate section on corporate governance as well as Certificate from
the Auditors of the Company regarding compliance of conditions of
Corporate Governance as stipulated under Clause 49 of the Listing
Agreement with the stock exchanges forms part of the Annual Report.
Your company had no independent Director in Gigabyte Technology (India)
Limited, a material non-listed subsidiary company for a period of 3
months from 1st April to 30th June, 2007. However, Gigabyte Technology
(India) Limited, ceased to be subsidiary Company during the year.
7. AWARDS & RECOGNITION
Your Company has received the following awards during the year under
review:
a) Most Popular Brand in Networking at the Gala Awards Night ceremony
of COMPASS 2007. COMPASS is an association of more than 260 IT
entrepreneurs of Eastern India.
b) CRN Channel Champions Award 2007 for Networking. As per the survey
by CRN, D-Link emerged as the single most popular networking vendor who
enjoys clear cut leadership in Channel Relationship, Service & Support,
Price-Performance, Marketing & Branding, Training & Certification:
c) DQ Channel - Channels Choice Gold Award 2008 for Wired Networking
and Wireless Networking based on the analysis done by IDC - using
different parameters such as Brand Image, Product Quality, after sales
support, Marketing Support and Commercial Terms etc.
d) PC Quest D-Link1 Ranked in No. 1, in Indias most wanted IT brands
for Structured Cabling. D-Link Wireless access point DWL 2100AP won
Indias best product award form PC World Magazine.
e) 360 Magazine Golden Rhino Award -2007 for Networking.
8. DIRECTORS
Mr. Jangoo Dalai was appointed as the Managing Director & CEO during
the year under review effective from 2nd July 2007.
Mr. Krishnanand M. Gaonkarand Mr. Dattaraj Salgaoncar Directors of the
Company who retire by rotation at the forthcoming Annual General
Meeting and being eligible, offer themselves for re-appointment.
9. FIXED DEPOSITS
Your Company has not accepted any fixed deposits during the year under
review and, as such, no amount of principal or interest was outstanding
as on the date of Balance Sheet.
10. AUDITORS
The Auditors, M/s Deloitte Haskins & Sells, Chartered Accountants,
retire at the ensuing Annual General Meeting and offers themselves for
reappointment. The Company has obtained the requisite certificate
required under section 224 of the Companies Act 1956 to the effect that
their re-appointment, if made, will be in conformity with limits
specified in said section.
11. CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
1. Conservation of Energy and Technology Absorption:
Your company is constantly taking measures to improve the energy
conservation. Your Companys manufacturing facilities at Goa are
certified under ISO 14001: 2004 for Environmental Management System.
Some of the initiatives during the year are as follows:
Energy efficient CFL lamps have been used in production floors,
variable frequency drives installed for motors in AHUs, Tuned
electronic chokes are used in fluorescent tube light fittings.
Automatic power factor controllers are installed. AHU ducts have been
modified. Major overhaul of chillers has resulted in improved
efficiency.
2. Technology Absorption:
The Company continues to use latest technologies for improving the
productivity and quality of its products. Imported machinery is used
in the manufacturing process. The Company is, always, on the look out
for ways and means to improve quality & productivity further by
introducing/adopting new technology and constantly improving the
existing methods of manufacturing.
3. Foreign Exchange Earnings and Outgo:
Total foreign exchange earnings and outgo is stated in Notes forming
part of the Accounts.
12. PARTICULARS OF EMPLOYEES
Particulars of employees as required under the provisions of Section
217 (2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975, as. amended, forms part of
this report. However, in pursuance of section 219(1) (b) (iv) of the
Companies Act, 1956, this report is being sent to all the members of
the company excluding the aforesaid information and the said
particulars are made available at the registered office of the Company.
The members desirous of obtaining such particulars may write to the
Company Secretary at the registered office of the Company.
13. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the provisions of
Section 217(2AA) of the Companies (Amendment) Act, 2000, the Directors
hereby state and confirm that;
a) in the preparation of annual accounts, the applicable accounting
standards have been followed
b) 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 true and fair view of the state of affairs of
the Company as at March 31, 2008 and the profit of the Company for the
financial year ending on March 31, 2008.
c) the Directors 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.
d) the annual accounts have been prepared on a going concern basis
14. SUBSIDIARY COMPANIES
Your Company also as part of its long term strategy to focus on the
core networking business of the company exited completely from the
motherboard business by selling its entire investments in Gigabyte
Technology (India) Limited for a consideration of Rs. 24.99 million to
Gigabyte Technology, Taiwan. Consequent to the above, Gigabyte
Technology (India) has ceased to be a subsidiary of the Company during
the year.
M/s. Intercorridor Systems Limited, during the year achieved a turnover
of Rs. 2.89 million as compared to Rs. 3.87 million in the previous
year. It has made a loss of Rs.0.13 million in the current year as
compared to profit after Tax of Rs.0.87 million earned in the previous
year.
As required by Section 212 of the Companies Act, 1956, the audited
accounts of the Subsidiary, M/s. Intercorridor Systems Limited and the
reports thereon of the Directors and the Auditors are attached and
forms part of the Annual Report.
15. ACKNOWLEDGEMENTS
Your Directors record the appreciation of the goodwill and wholehearted
support of the valued customers, shareholders, clients, vendors,
dealers, distributors, and bankers throughout the year.
Your Directors wish to express their gratitude and record their sincere
appreciation of the dedicated efforts of all the employees, their
commitment and professionalism despite the challenging environment.
Your Directors also thank the Goa Industrial Development Corporation,
State Government Authorities and Electricity Departments for their
valuable support.
For and on behalf of the Board
Mumbai K.R.NAIK
Dated: 22nd June, 2008 Executive Chairman
|
|
![]() | |
| Source : Religare Technova | |
![]() | |




Online


