Vishal Information Technologies

The Directors have pleasure in presenting the Fourteenth Annual Report
 together with the Audited Accounts for the year ended 31st March, 2008.
 
 OPERATION:
 
 The operating results for the year are as under:
 
                                      31st March, 2008  31st March, 2007
                                           (Rs.)             (Rs.)
 
 Income                                   38,07,84,348      30,60,10,382
 Expenditure                              25,33,25,074      20,28,35,407
 Profit/(Loss) Before Tax                 12,74,59,274      10,31,74,975
 Less: Provision for Tax                   1,51,20,936            NIL
 Fringe Benefit Tax                           1,23,463          1,12,400
 Deferred Payment against the taxes           1,34,786            NIL
 Profit / (Loss) After Tax                11,20,80,089      10,30,62,575
 Balance brought forward from the         28,75,99,895      18,45,37,320
 Previous year
 Balance carried to Balance Sheet         39,96,79,984      28,75,99,895
 
 DIVIDEND:
 
 Your Directors do not recommend any dividend for the year under review
 
 COMPANY PERFORMANCE AND FUTURE PROSPECTS:
 
 The Company till date has grown consistently at 30% CAGR and the PAT at
 33%. For the year 2008-09, we expect the turnover to grow at a similar
 CAGR level as the last year. This growth can further go up due to the
 fact that the new vertical Digital Library & Print on Demand will take
 of in the current year. With increase awareness for information
 accessibility, there is ever growing demand for data digitization,
 conversion & publishing. The new verticals Digital Library & Print on
 Demand will further augment to this growth. The further for the company
 looks very good. We can reach our set target as planned.
 
 In the near furture the company is planning to come with offer of
 shares to general public.
 
 DIRECTORS:
 
 Pursuant to Section 260 of the Companies Act, 1956, Mr. D. M. Shirodkar
 and Mr. Ghanshyam Joshi were appointed as Additional Directors of the
 Company by the Board. They shall hold office until the ensuing Annual
 General Meeting. The Company has received from members notices pursuant
 to Section 257 of the Companies Act, 1956 signifying their intention to
 propose the candidature of Mr. D. M. Shirodkar and Mr. Ghanshyam Joshi
 as Director of the Company.
 
 Mr. Aniket Jathar has resigned as a Director of the Company during the
 year under review. The Board wishes to place on record its appreciation
 for the services provided by him during his tenure as Director.
 
 Mr. Sunil Parekh will retire by rotation at the ensuing Annual General
 Meeting and being eligible offered himself for re-appointment.
 
 PARTICULARS OF EMPLOYEES:
 
 There are no employees covered under Section 217 (2A) of the Companies
 Act, 1956 read with Companies (Particulars of Employees) Rules, 1975.
 
 TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS & OUTGO:
 
 The provision of Section 217(1)(e) of the Companies Act, 1956 read with
 Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules 1998, are not applicable to the Company as the Company
 is not doing any manufacturing activity. During the year under review,
 earning in Foreign Exchange is Rs.38,36,84,348/- (Previous year was
 Rs.30,60,10,382/-) and Foreign Exchange outgo is Rs.645,885/- (Previous
 year was Rs.44,52,407/-).
 
 DIRECTORS RESPONSIBILITY STATEMENT:
 
 Pursuant to the requirement under Section 217 (2AA) of the Companies
 Act, 1956 with respect to the Directors Responsibilities Statement, it
 is hereby confirmed:
 
 (i) That in the preparation of the annual accounts for the financial
 year ended 31st March, 2008,the applicable accounting standards had
 been followed along with proper explanation relating to material
 departures.
 
 (ii) That the Directors had selected such accounting policies and
 applied them consistently and made judgements 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 or loss of the Company for the year under review.
 
 (iii) That the Directors had 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.
 
 (iv) That the Directors had prepared the accounts for the financial
 year ended March, 2008 on a going concern basis.
 
 AUDITORS:
 
 M/s K. P. Joshi & Co., Chartered Accountants, Mumbai, Statutory
 Auditors of the Company, hold office until the conclusion of the
 ensuing Annual General Meeting and are eligible for re-appointment.
 
 The Company has received letters from them to the effect that their
 re-appointment, if made, would be within the prescribed limits under
 Section 224 (1B) of the Companies Act, 1956 and that they are not
 disqualified for such re-appointment within the meaning of Section 226
 of the said Act.
 
 The Notes on Accounts referred to in the Auditors Report are self
 explanatory and therefore do not call for any further comments.
 
 SUBSIDIARY COMPANY:
 
 As required under Section 212 of the Companies Act, 1956, the audited
 statement of accounts along with the Report of the Boards of Directors
 and Auditors Report thereon of Basiz Fund Service Private Limited,
 being Subsidiary Company for the year ended on 31st March, 2008 are
 annexed and forms part of this Report.
 
 ACKNOWLEDGEMENT:
 
 Your Directors take this opportunity to express their gratitude for the
 co-operation and support from its customers, vendors, shareholders,
 investors, bankers, business associates and advisors and look forward
 to their continued support.
 
                                    For and on behalf of the Board
 
                                  Sd/-                    Sd/-
 Place: Mumbai             G. S. Chandrashekar       Dilip C. Parekh
 Date : 7th June, 2008          Chairman            Wholetime Director