Your Directors have pleasure in presenting the Twelfth Annual Report
and the audited accounts of the company for the year ended 31st March
2006 together with Auditors report thereon.
a) Financial Results: (Rs. In Lakhs)
PARTICULARS Year Ended Year Ended
31.03.2006 31.03.2005
Gross Income 3529.69 1758.65
Expenditure 2138.25 888.47
Profit before interest, deprecation & tax 1391.44 870.18
Less; Interest (Financial Cost) 101.02 95.27
Profit before depreciation & tax 1290.42 774.91
Less: Depreciation 368.20 310.26
Profit before tax 922.22 464.64
Less: Provision for tax
: Current year 281.17 123.79
: Deferred tax 24.96 39.68
: Fringe Benefit tax 4.60 310.73 -163.47
Profit after tax 611.48 301.17
Add: Balance brought forward
from Previous Year 345.98 201.87
Add/(Less): Excess provision of
Taxation for Earlier years 1.39 347.37 (0.14) 201.73
Profit available for distribution 958.85 502.90
Less:
Proposed Dividend @ 20% (Previous Year 15%) 184.19 115.52
Tax on distributable profits 25.83 16.20
Tax on dividend for earlier Years 0.01 0.20
Transferred to General Reserve 500.00 25.00
Residual dividend earlier years 0.04 710.07 -156.92
Balance Carried to Balance Sheet 248.78 345.98
b) Dividend:
Your Directors are pleased to recommend a dividend of 20% absorbing a
sum of Rs. 210.02 Lakh including the tax on distributable profits.
c) Listing of Shares in Stock Exchanges:
At present the Equity Shares of your company are traded under permitted
Securities on the Stock Exchange, Mumbai and listed on The Hyderabad
Stock Exchange Limited and Bangalore Stock Exchange Limited. The
listing fee was paid up to date.
d) Overseas Office:
The foreign branch in U.S.A. is being continued to take the opportunity
in participating in the international market.
e) Fixed Deposits:
The Company has accepted fixed deposits to which the provisions of
Section 58A of the Companies Act, 1956 are applicable during the year
under review. There are no overdue amounts of deposits including the
interest thereon as at the end of the year.
f) Directors:
In accordance with the provisions of the Companies Act, 1956, and the
Articles of Association of the Company, Sri T. Gopi Chand, Vice
chairman and Managing Director, Sri N.V.V.Prasad, Executive Director
and Sri R.S.Bakkannavar, Director, will be retiring by rotation at this
annual general meeting and being eligible offer themselves for
reappointment.
g) Auditors:
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 effected, would be in accordance with section 224 (1
B) of the Companies Act 1956.
h) Particulars of Employees:
There are no employees in the Company whose particulars are to be given
pursuant to Section 217(2A) of the Companies Act. 1956.
i) Conservation of energy, technology absorption and foreign exchange
earnings/out goings: 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 is not an energy intensive
unit.
2. Technology absorption, adaptation & innovation: The Company has not
imported any technology.
3. Foreign Exchange Earnings and outgo:
1. Earnings in Foreign Currency (FOB):
Particulars Current Year Previous Year
(Rs.) (Rs.)
Software Development/Services 12,710,000 2,436,000
Sales Incentive Nil 73,296
Total 12,710,000 2,509,296
2. Expenditure in Foreign Currency (CIF):
Particulars Current Year Previous Year
(Rs.) (Rs.)
Import of Raw Material Nil NIL
Traveling Expenses Nil NIL
Expenses incurred at Overseas branch 131,565 1,475,440
Total 131,565 1,475,440
j) Directors Responsibility Statement
Pursuant to the requirement under section 217(2AA) of the Companies
Act, 1956, with respect to Directors Responsibility Statement, it is
hereby confirmed:
a. That in the preparation of the accounts for the financial year
ended 31st March, 2006 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
irregularities;
d. That the directors have prepared the accounts for the financial year
ended 31st March, 2006 on a going concern basis.
k) Acknowledgment
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 India Limited and Other Government Agencies for
their support during the year and look forward to their patronized
support.
For and on behalf of the
Board of Directors
Sd/- Sd/-
Date: 28.08.2006 (T. Gopi Chand) (N.V.V.Prasad)
Place: Hyderabad. Vice Chairman and Executive Director
Managing Director
