EUROPEAN SOFTWARE ALLIANCES LIMITED
ANNUAL REPORT 2004-2005
Your directors have pleasure in presenting the 20th Annual Report and the
Audited Statement of Accounts of the company for the financial year ended
30th April, 2005.
1. FINANCIAL HIGHLIGHTS
FINANCIAL RESULTS 2003-2004 2004-2005
Turnover 5675 5821
Gross Profit before
interest and depreciation 813 896
Less : Interest - -
Depreciation 673 660
Profit Before Tax 140 183
Less : Provision for Taxation - -
Profit After Tax 140 183
Prior Period Adjustments 25 23
Balance B/F from previous year (98145) (97775)
Amount available for appropriation
Total (98145) (97775)
Proposed dividend on equity shares - -
Corporate tax on dividend - -
Balance carried to Balance Sheet 98145 97775
TOTAL 98145 97775
2. MANAGEMENT ANALYSIS AND DISCUSSION
The sales of the Company for the year ended 30th April, 2005 touched
Rs.58.21 lakhs and Net Profit were Rs.1.30 lakhs. Your Company has improved
its position in the domestic market and software industry. The year under
review was one of them most challenging years for IT industry all over the
world. Constant efforts are put to redesign the planning and implementation
process to aim for leadership on the theme of rapid growth and
differentiation. We are confident that the steps taken will help achieve
the size, scalability, brand and ambition necessary to create the next
generation IT Solutions and Services Company.
REVIEW OF OPERATIONS
The Indian IT Industry is one of the top 10 industries in India. The IT
Industry has shown signs of recovery and IT/Technology expenditure is
expected to rise this year as against a stagnant trend in the past two
years. The domestic growth has been driven by rapid expansion of IT
Infrastructure by Government, Education, Telecom, BPO and Corporate
segments. The Indian IT Industry is interspersed with several large, medium
and small players offering their services. The competition and challenges
to medium size niche players like ESAL is emerging primarily fro m large
system integration companies.
Your Company is strong in providing IT Infrastructure set-up, support and
management as well as in the system integration business. The wide range of
products and solutions, domain expertise and competency pools created by
the Company over the year has helped in customer retention and addition of
new customer accounts. Clients are looking for a company that is a trusted
advisor and a strategic partner. In response to clients needs, we have been
working on several new service initiatives. Your company seeks long term
partnerships with clients while addressing their various IT requirements.
Your Company's customer centric approach has resulted in high levels of
Your Company has reorganized to face new challenges of greater client
expectations, rapidly changing business scenario and heightened
competition. As a part of it business process reengineering the Company is
constantly analyzing the business areas to focus on the most profitable and
productive ones. This has helped in maintaining the profitability levels
despite the reduction in the sales turnover. Your Company has also helped
many of its clients improve their processes and systems by providing
consulting services and high-end products and solutions.
The domestic IT spends is likely to continue its current upward trend.
Organizations have been increasing their IT spends for process improvements
and efficiency enhancements to face competition and increased productivity.
Organizations are widely outsourcing the various activities of managing
their IT infrastructure to increase operational efficiency.
Your Company has clearly drawn its roadmap as a dominant provider of end-
to-end IT solutions and services encompassing comprehensive services of IT
infrastructure design, implementation and lifecycle support. Continuous
research and development of new services, products, processes and solutions
allows your Company to enhance quality, productivity and customer
satisfaction through innovation. Initiatives are being taken for
development of solutions on Storage systems, Disaster Management Systems,
Security, Converged Communications etc.
Your company has established a national service network and this will help
in providing support to a large base of customers. Your company is
continuously evolving new business processes, modifying its existing line
of activities and expanding its business capabilities to gain higher growth
and market share.
Your Directors do not recommend any dividend for the year 30th April, 2005.
The company has not accepted any deposit within the meaning of Section 58A
of the Companies Act, 1956 and the rules made there under.
Shri A.V. Nair retire by rotation at the ensuing Annual General Meeting and
being eligible offers himself for re-appointment.
Shri Philip A. & Ms. S. Coutinho is appointed as Director of the Company,
The Company has noted the contribution made by Mr. A.V. Nair as Whole Time
Director during his tenure.
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
* That in the preparation of the annual accounts for the financial year
ended 30th April, 2005 the Application Accounting Standards had been
followed along with proper explanation relating to material departures.
* That the Directors had selected such accounting policies and applied them
consistently and made judgments 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.
* That the Director 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.
* That the Directors had prepared the accounts for the financial year ended
30th April, 2005 on a going concern basis.
M/s. S.S. Trimbakkar & Co., Chartered Accountants, Auditors of the company
hold office till the conclusion of the ensuing next Annual General Meeting
and are eligible for appointment by the company.
As there are no employees, drawing remuneration as per provisions of
Section 217(2A) of the Companies Act, 1956, and due to that, there is no
requirement to submit particulars of employees as per the provisions of
section 217 (2A) of the Companies Act, 1956, read with the provisions of
Companies) Particulars of Employees) Rules, 1975.
Conservation of Energy, Technology Absorption, Research & Development and
Foreign Exchange Earnings and Outgo :-
Conservation of Energy:
The Company's operations involve low energy consumption. However efforts to
conserve and optimize the use of energy through improved operational
methods and other means will continue.
The Technology available and utilized is continuously being upgraded to
improve overall performance and productivity.
Foreign Exchange Earnings : Nil
Foreign Exchange Outgo : Nil
Your Company continues to be committed to the systems of good corporate
governance by increased transparency and accountability to its
shareholders. Pursuant to clause 49 of the Listing Agreement with Stock
exchanges, a report On Corporate Governance and Auditors certificate
regarding compliance of conditions of Corporate Governance are made part of
the Annual Report.
Your Directors place on record their appreciation of the assistance and
support extended by all government authorities, financial institutions,
banks, consultants, solicitors, shareholders and debenture holders of the
company. Yours directors also wish to thank management and staff of, the
promoter company, for the continuous guidance and support received from
them. Your directors express their appreciation for the dedicated and
sincere services rendered by employees of the company.
For and on behalf of the Board
A V NAIR PHILIP A
Dated : 2nd SEPTEMBER, 2005
Place : KANPUR