The Directors have pleasure in presenting the Thirteenth Annual Report
and the audited accounts of the company for the year ended 31 st March
2007 together with Auditors report thereon.
a) Operational Results: (Rs. In Lakhs)
PARTICULARS Year Ended 31.03.2007 Year Ended 31.03.2006
Gross Income 5833.57 3529.69
Expenditure 3557.03 2155.77
Profit before interest,
deprecation & tax 2276.54 1373.92
Less: Interest (Financial Cost) 169.91 83.50
Profit before depreciation & tax 2106.63 1290.42
Less: Depreciation 450.09 368.20
Profit before tax 1656.54 922.22
Less : Provision for tax
Current year 576.89 281.17
Deferred tax 5.59 24.96
Fringe Benefit tax 4.00 586.48 4.60 310.73
Profit after tax 1070.06 611.48
Add: Balance brought
forward from Previous Year 248.78 345.98
Add/(Less): Excess provision of
Taxation for Earlier years - 1.39
Add/(Less): Taxation
for earlier years (1.38) 247.41 - 347.37
Profit available
for distribution 1317.47 958.85
Less:
Transferred to General Reserve 500.00 500.00
Proposed Dividend @ 20%
(Previous Year 20%) 250.24 184.19
Tax on distributable profits 42.53 25.83
Tax on dividend for earlier Years - 0.01
Residual dividend
earlier years - 792.77 0.04 710.07
Balance Carried to Balance Sheet 524.70 248.78
b) Financial Performance:
The Company with its focused attention on e-Governance Projects could
increase its turnover by 65% to 5833.57 lakhs and the profit before tax
improved by 75% to 1656.54 lakhs compared to the previous year. The
Company rewarded its mem- bers by issuing fully paid bonus shares in
the ratio of 4 : 1 by capitalising the reserves as approved by the
members. To strengthen the capital structure, the Company during the
year, further issued 8,00,000 lakhs convertible warrants at a price of
Rs. Ill- each on preferential basis in consonance with the members
resolution dated 05.06.2006.
c) Dividend:
Your Directors are pleased to recommend a dividend of 20% absorbing a
sum of Rs.292.77 Lakhs including the tax on distributable profits.
d) Listing of Shares in Stock Exchanges:
At present the Equity Shares of your company are traded under permitted
Securities on the Bombay Stock Exchange Limited and listed on The
Hyderabad Stock Exchange Limited and Bangalore Stock Exchange Limited.
The listing fee was paid up to date.
e) Overseas Office:
The foreign branch in U.S.A. was closed during the year due to no
significant business transactions in the international market.
f) Fixed Deposits:
The Company has not accepted fixed deposits during the year to which
the provisions of Section 58Aof the Companies Act, 1956. There are no
overdue amounts of deposits including the interest thereon as at the
end of the year.
g) Directors:
In accordance with the provisions of the Companies Act, 1956, and the
Articles of Association of the Company, Dr. T.H Chowdary, Director, Dr.
T.V. Lakshmi, Director and Sri T. Bapaiah Chowdary, Director, will be
retiring by rotation at this annual general meeting and being eligible
offer themselves for reappointment.
h) 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
(IB) of the Companies Act 1956.
i) Particulars of Employees:
Statement of particulars of employees pursuant to the provisions of
section 217 (2 A) of the Companies Act, 1956.
Name Designation Qualification Age
(years)
T.Gopichand V.C.&M.D. M.Tech 48
Date of Experience Gross Previous Employment
Joining (Years) Remuneration
Including
Commission
01.09.1995 26 25,44,228 Senior Technical Officer,
Electronics Corporation
of India Limited
j) 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 (Rs.) Previous Year (Rs.)
Software Development / Services 53,61,492 1,27,10,000
Total 53,61,492 1,27,10,000
1. Expenditure in Foreign Currency (CIF):
Particulars Current Year (Rs.) Previous Year (Rs.)
Import of Raw Material Nil Nil
Traveling Expenses Nil Nil
Expenses incurred at Overseas branch Nil 1,31,565
Total Nil 1,31,565
k) Directors Responsibility Statement:
Pursuant to the requirement under section 217(2 AA) 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, 2007 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 31 st March, 2007 on a going concern basis.
1) 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 of 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: 31.08.2007 (T. Gopi Chand) (N.V.V.Prasad)
Place: Hyderabad. Vice Chairman and Managing Executive Director
Director
