SOFTPRO SYSTEMS LIMITED
ANNUAL REPORT 2005-2006
I am pleased to ink this communique to you along with annual accounts for
the year ended March 31, 2006 and share with you some aspects of Indian
economy affecting the fortunes of the software industry in general and
growth path of your Company in particular.
During the year under review, SoftPro has achieved total income of
Rs. 725.62 lakhs against Rs. 617.01 lakhs of last year. However, the net
profit declined by 7.50% to Rs. 154.01 lakhs from Rs. 166.49 lakhs. Decline
in net profit is due to several challenges like increasing costs in
technology and skills acquisition, pricing pressures from customers etc.
Keeping in the interests of the shareholders in view your directors
recommended a dividend of 6 percent for the year ended.
Looking at the current expectation of stable political and economical
conditions in the US and Europe, and the continued robust growth in the
emerging markets, I firmly believe that performance of your Company in the
current year will be better.
To reward, motivate, attract and retain the best talent in the organization
SoftPro has implemented the Employee Stock Option Scheme during the year.
Your company's Development Centre is coming up on the one acre land
allotted by the Government in the heart of Software Development Zone of
Visakhapatnam S.E.Z. Construction work of the development centre of about
60,000 sq ft. starts in September 2006 and proposed to be completed in
phases keeping the business requirements in view.
I would like to take this opportunity to thank all our shareholders and
convey to them and their family my best wishes.
KRISHNA CHAND AKKINENI
Chairman & Managing Director
August 18, 2006