The Directors have pleasure in presenting the Eighteenth Annual Report
and the audited accounts of the company for the year ended 31st March
2012 together with Auditors ''report thereon.
a) Financial Results:
(Rs. In Lakh)
PARTICULARS Year Ended Year Ended
Gross Income 20,163.47 12,637.64
Expenditure 15,646.46 10,650.37
Profit before interest,
depreciation & tax 4,517.01 1,987.27
(Financial Cost) 938.36 241.93
depreciation & tax 3,578.65 1,745.34
Less: Depreciation 834.36 275.44
Profit before tax 2,744.29 1,469.90
Less: Provision for
tax Current year 435.97 529.58
Current Tax Expense relating
to Earlier Years (6.91) 24.50
Deferred tax 458.78 887.84 (68.17) 485.91
Profit after tax 1,856.45 983.99
Add: Balance brought
Previous Year 1,573.54 1,380.38
Profit available for
distribution 3,429.99 2,364.37
Less: Transferred to
General Reserve 1000.00 500.00
Proposed Dividend @ 20% 250.24 250.24
(Previous Year 20%)
Tax on distributable
profits 40.59 1,290.83 40.59 790.83
Balance Carried to
Balance Sheet 2,139.16 1,573.54
Your Directors are pleased to recommend a dividend of 20% absorbing a
sum of Rs. 290.83 Lakhs including the tax o distributable profits.
c) Performance of the Company:
The Company achieved a turnover of Rs. 20,163.47 lakhs during the year
and earned a net profit after tax of Rs. 1 856 47 Lakhs.
During the current year your company has added following three new
business segments AADHAAR, NPR (National Population Register) and SWAN
(State Wide Area Network). Collectively they account for a healthy
order book on hand to be executed over next three years. During the
year your company as an T3 F4 empanelled vendor for Unique
Identification Authority of India, have enrolled 13.5 Million citizens
with Bio-metric and Demographic information. Your company stood in top
3 companies with AADHAAR market share of 6.71 %. Your company had
established the required infrastructure and skillset to enroll 0.12
million citizens per day with which can enroll to a capacity of 36
million per year in coming years. Your Company is entitled to enroll
about 5 crore citizens per year. Central government has planned to
cover the entire Indian population of 120 Crores in about 4 years with
coverage of 10 lakhs population per day
Your company under National Population Register project under the
Registrar General of India has completed the (phasel) digitization of
citizen database and is geared up to take up the phase two i.e
biometric enrollment in the year FY 2012-13. Your Company is entitled
to enroll about 5 crore citizens per year. Central government has
planned to cover the entire Indian population of 120 crores in about 4
years with coverage of 10 lakhs population per day.
Your company firmly believes that bringing in of new customers and
adding value to the existing relationships with our current customers
will only help in getting additional business opportunities for your
company. During the year client base of your company increased from 21
Your company has acquired the following certifications which bring in
the required pre qualifications and delivery of quality services in
managing and implementing UIDAI (AADHAAR), NPR and other e-governance
- Information Security Management System - ISO 27001:2005 for Software
development, IT Enabled Services and IT Infrastructure Management.
- Information Technology Service Management System: ISO 20000:2005 for
Software development, IT enabled Services and IT Infrastructure
- Enhanced the ISO 9001:2008 quality management system with enrollment,
data capturing, De-Duplication and supply & maintenance of Biometric
- Provisional STQC certificate for the supply and delivery of L1
Identity Solutions Inc, USA Biometric devices for UIDAI projects.
E-governance in India is steadily evolving from basic digitization of
government data and processes to actually facilitating delivery of
various citizen services on-line. A common vision and strategy is being
deliberated and firmed up across all levels of government central,
state and local bodies. This approach has huge potential in garnering
cost savings, increasing transparency, and presenting a seamless view
of government to citizens.
A well connected citizen to government eco system has huge potential
for both the partners. Citizens will continue to enjoy speedy,
transparent and convenient services, whilst the government gets
increasingly integrated into the community welfare and more importantly
is in a position to focus real time on reallocation of resources where
they are needed the most. A social transformation happens when citizens
are empowered to help themselves in dealing with various government
segments, saving time and money for all concerned and elevating overall
levels of satisfaction for common man.
Your company has pioneered many a prestigious projects in this domain
of e-govemance for various government agencies at the state and central
level. The company today is standing on the threshold of contributing
meaningfully to the National e-Governance mission. It has ambitions and
plans in further designing creative solutions across a wide spectrum of
industries for the dual benefit of citizens and the government, once
the basic citizen identification biometric infrastructure is in place.
The national e-Governance plan has a five year outlay of Rs. 80,000
crore. Your company is focusing to have a market share of 6%. This
turns out to be a potential business of approximately Rs. 5000 Crore in
the coming years. Your company continues to invest in the core
e-governance solution capabilities to address this potential market in
the next 5 years.
Your company is also planning to diversify into B2C services in the
segments of Toll collection, Utility bill collection, Financial
Inclusion by adopting mobile technologies to integrate into the current
Citizen Services bandwidth.
As your Company enters a key strategic period in its evolution, the
year ahead will be marked by growth in revenue and profits, whilst
further strengthening our focus on customers and delivery.
d) Management Discussion and Analysis Report:
As per the requirements of Clause 49 of the Listing Agreement with the
Stock Exchanges, a separate Management''s discussion and Analysis Report
is enclosed as Annexure -1 to the Directors'' Report.
e) Corporate Governance:
As per the requirements of Clause 49 of the Listing Agreement with the
Stock Exchanges, a separate report on Corporate Governance along with
the certificate issued by the Company''s Statutory Auditors M/s. Narven
Associates, Chartered Accountants thereupon is given as Annexure - II
to the Directors Report.
f) Listing of Shares on Stock Exchanges:
At present the Equity Shares of your Company are listed on the Bombay
Stock Exchange Limited and Bangalore Stock Exchange Limited. The
listing fee was paid up to date.
g) Fixed Deposits:
The Company has accepted Rs. 36.00 Lakhs as fixed deposits during the
year to which the provisions of Section 58A of the Companies Act, 1956
apply. There are no deposits outstanding as at the end of the financial
In accordance with the provisions of the Companies Act, 1956, and the
Articles of Association of the Company, Dr.T.Hanuman Chowdary,
Director and Sri.R.S.Bakkannavar, Director will be retiring at this
annual general meeting and being eligible offer themselves for
reappointment. During the financial year, Sri N.V.V Prasad, Executive
Director and Sri M.V.S.R. Prasad, Additional Director of the Company
resigned on 29.08.2011 and accepted by the Board at their meeting on
30.08.2011 and the same was informed to members of the Company at their
Annual General Meeting held on 30.08.2011.
M/s. NARVEN ASSOCIATES, Chartered Accountants retire at the ensuing
Annual General Meeting, and are eligible for reappointment. They have
furnished the requisite certificate to the effect that their
reappointment, if made, would be in accordance with section 224 (1B) of
the Companies Act, 1956.
k) Conservation of energy, technology absorption and foreign exchange
The particulars as required U/S 217(1) (e) of the Companies Act, 1956,
read with the Companies (Disclosure of particulars in the report of the
Board of Directors) Rules 1988 are:
1. Conservation of energy: The Company does trading of various kinds
of computer items and provides IT enabled services and does not use any
energy. The electricity power consumption under LT is minimal hence the
Company is not an energy intensive unit. However, the Company installed
power efficient transformers and UPS systems to save the power cost.
2. Technology absorption, adaptation & innovation: The Company has not
imported any technology.
I) Internal Control Systems :
Your Company has a well defined and documented Internal Control Systems
which is adequately monitored.
m) Directors'' Responsibility Statement:
Pursuant to the requirement under section 217(2AA) of the Companies
Act, 1956, with respect to Directors'' Responsibility Statement, it is
a. That in the preparation of the accounts for the financial year
ended 31 st March, 2012 the applicable accounting standards have been
followed along with proper explanation relating to material departures;
b. That the directors have selected such accounting policies and
applied them consistently and made adjustments and estimates that were
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
profit of the Company for the year under review;
c. That 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
d. That the directors have prepared the accounts for the financial
year ended 31st March, 2012 on a going concern basis.
Your directors thank the clients, vendors, investors and bankers for
their continued support. Your directors place on record their
appreciation of the contribution made by the employees at all levels.
Your directors thank the Government of India, State Governments,
Electronic Corporation of India Limited and Other Government Agencies
for their support during the year and look forward to their patronized
For and on behalf of the Board of Directors
Place: Hyderabad (T. Gopichand) (K. Rama Rao)
Date : 22.08.2012 Vice Chairman and
Managing Director Wholetime Director