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Innovision E-Commerce Ltd.

BSE: 512447 Sector: Financials
NSE: N.A. ISIN Code: INE880C01021
BSE 05:30 | 01 Jan Innovision E-Commerce Ltd
NSE 05:30 | 01 Jan Innovision E-Commerce Ltd

Innovision E-Commerce Ltd. (INNOVISIONECOM) - Director Report

Company director report

INNOVISION E-COMMERCE LIMITED ANNUAL REPORT 2001-2002 DIRECTORS REPORT To the Members Your Directors have the pleasure in presenting the Seventeenth Annual Report and the Audited Accounts for the financial year ended 31st March, 2002. Dividend: Considering future growth plans on hand and in order to plough back profit, the Board of Directors does not recommend dividend for the year 2001-2002; Business Plan,and Activities: The company has in the year continued the business of e-commerce and it solutions. The company had in the previous year tied up with the Manipal based Manipal Control Data E-Commerce Limited(MCDECOM) for providing customized e-commerce solutions to clients for networking, email, customer relation management. networking, enterprise resource planning on intranets etc, There has been a step further to this in the current year and association with them will be fruitful in the years to come. Thus, e-commerce is a method of trade between the corporate and tile retail consumers (business to consumer) or the corporate and its other branches and affiliates (business to business) The company is currently focusing on e-commerce on the very fast growing business to business segment. Preferential Allotment of shares: There was no allotment of shares during the year under review. Fixed Deposits: During the year the Company did not accept any deposit under section 58A of the Companies Act, 1956. Particulars regarding conservation of Energy, Technology absorption and foreign Earnings and outgo: Since your Company does not own any manufacturing facility at present, the disclosure of information on conservation of energy, technology absorption, etc. required to be made in terms of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, being not applicable, is not given. During the year under review, the Company did not earn any foreign exchange and its foreign exchange outgo was Rs. NIL. Statutory information u/s. 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975:- There is no person employed to whom section 217(2A) is applicable, in view of activities carried out by the Company provisions of section 217(1)(e) of the Companies Act, 1956 are not applicable for the period under review. Listing: The ordinary Equity shares of the Company are listed on Stock Exchange at Mumbai, Pune and Banglore. Investments: During the period under review your Company had after looking to the present market scenario invested a small amount in investment of some shares. But there is a continous in focus of your Company from investment activities to software, multimedia and e-commerce activities. Corporate Governance: As required by Clause 49 of the Listing Agreement with Stock Exchange, the Report on Management Discussion and analysis, Corporate Governance as well as the Auditors' certificate regarding compliance of conditions of Corporate Governance, form part of the Annual Report. Auditors: The Auditors have made certain comments, which are self-explanatory and therefore, in the opinion of the Directors, do not call for any further explanation. Directors: Mr. Tushar G. Shah and Mr. T. Sudhakar Pai retire by rotation and being eligible offer themselves for re-appointment. Mr. Akshay P. Sanghavi was appointed as Managing Director of the company, at the board meeting held on 6th August,2002. Appreciation: The Board of Directors wish to place on record the continuous support of all staff members and banks which they have extended during the period under review. Regd. Off : By Order of the Board of Directors 10, Sanmahu - 5, Burdgarden Road, Pune - 411 001 Tushar G. Shah 6th August, 2002 Director ANNEXURE TO DIRECTORS' REPORT Directors' Responsibility Statement Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, the Directors hereby confirm that: 1. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanations relating to material departures. 2. The Directors had selected such accounting policies and applied them consistently and made, judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2002 and of the Profit of the Company for that period. 3. The Directors had taken proper and, sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities, to the knowledge and ability of the Directors. 4. The Directors had prepared the Annual Accounts on going concern basis. On behalf of the Board of Directors Tushar Shah Director 6th August 2002 MANAGEMENT DISCUSSION AND ANALYSIS 1. OVERVIEW: 1.1 During the financial year 2001-02, political stability throughout the year and coupled with increasing business confidence the market is improving as compared to previous year. The government's efforts in pushing forward economic liberalization in India, is expected to gather further momentum. If this happens, it will ensure stable investment environment and business at large. 1.2 The role of Indian government in software and multimedia industry still needs more emphasis. Our industry has the vast potential to earn foreign exchange for the country but the imposition of tax on exports earnings last year has worsened the position which was already bad due to slack in US economy and European countries though there was a slight improvement worldwide. 2. INDUSTRY STRUCTURE & DEVELOPMENTS: 2.1 Macroeconomic indicators seem to suggest general uncertainty, with the Index of Industrial Production (IIP) moving down from 4.9 To 2.3 during the period April 2001 to March 2002 compared with the previous year but an upward revision of the GDP growth rate estimates for the year. The UP is important indicator of demand for any industry at large but it does not completely reflects the performance of any particular sector. As regards the growth of E-commerce in India there is a tremendous scope. 2.2 India, as a major source of intelectual resources in software and multimedia industry. But it still has a infancy stage, and a miles to go before we relex. Your Company is expected to do well looking to the team which is with the Company and other persons expected to join. In its new core business activity. In the years to come your Company is expected to do well. 2.3 One of the key learnings from our analysis of compititors strategies, expansion plans and opportunities for growth has been that a new approach is required for development and enlarging the role of the Company in the industry. 3. FUTURE OUTLOOK: 3.1 The Gross Domestic Product (GDP) is expected to grow by about 8 percent in 2002-03 over the previous year. Business sentiment is mixed with the possibility of a good growth year / good monsoon. As a result business of our Industry is expected to gain momentum, but this will require aggressive cost control and more thrust on quality products and services and extensive marketing. 3.2 Your Company is committed towards attaining good position in industry through the experience of the Directors and using technology and human- resource and strength to provide cutting edge, international competitiveness and expand further both internationally and within India with a view to maximizing shareholder value. 4 RISK & CONCERNS 4.1 Nature of Industry: 4.1.1 The Software and multimedia and e-commerce industry is a cyclical one and is increasingly getting more so with entry of within country and out of country day by day. 4.1.2 Given the highly competitive scenario, the industry is forced to continue aggressive programme of marketing and cost control. 4.2 Financial Risk: A large part of earnings of the Company is expected to come in foreign exchange and adverse variations in exchange rates could result in variation in revenue. Fortunately however, for the industry, variations have so far been impacting positively on revenue. 4.3 Government & Political Risk: Adverse taxation policies of the Government have a major role to play in the industry. But further steps towards broader tax concessions are required. 4.4 Contingent Liabilities: There is no contingent liability on the Balance Sheet date. 5. INTERNAL CONTROL SYSTEM: The Company has reasonable Internal Control System commensurate with the size and nature of activities and the Company is planning to strengthen this further in the time to come. 6. FINANCIAL PERFORMANCE: 6.1 Your company expanded its scale of business and had its business solutions installed at many places. There was a continous progress of our business which gained momentum in the month of February and March, 2002. 6.2 Due to change in activities from one of investment to one of providing business of E-commerce and its solutions the net profit after tax was about one crore which is higher as compared to last year. Your Directors are confident of achieving very goods results in the year to come. 7. CAUTIONARY STATEMENT: Statement in Management Discussion and Analysis describing the Company's objectives, projections, estimates, predictions and / expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. As "forward-looking statements" are based on certain assumptions and expectations of future events over which the Company exercises no control, the Company can not guarantee their accuracy nor can it warrant that the same will be realized by the Company. Actual results could differ materially from those expressed or implied. Significant factors that could make a difference to the Company's operations include domestic and / international economic conditions affecting demand, supply and price conditions in the industry and change in Government regulations, tax regimes and other statutes.