We have pleasure in presenting the 22nd Annual Report with AuditedStatements of Accounts for the year ended 31st March 2013.
FINANCIAL HIGHLIGHTS FOR THE YEAR 2012-13:
Rupees in Lakhs
|Particulars ||2012-13 ||2011-12 |
|Income || || |
|-Software Development Services ||1567.05 ||2928.10 |
|-Other Income ||Nil ||Nil |
|Total Income ||1567.05 ||2928.10 |
|Expenditure ||1064.38 ||2168.32 |
|Depreciation ||971.20 ||1196.23 |
|Profit before the Tax ||(551.06) ||(915.44) |
|Less: Provision for tax (including ||438.79 ||(57.72) |
|fringe benefit tax and deferred tax ) || || |
|Profit! (Loss) after Tax ||(112.26) ||(973.16) |
The Ministry of Corporate Affairs (MCA) vide notification no. S.O. 447(E) dated 28thFebruary 2011 amended the existing Schedule VI to the Companies Act 1956. The RevisedSchedule VI is applicable from financial year commencing from 1st April 2011. Thefinancial statements of your Company for the year ended 31st March 2013 havebeen prepared in accordance with the Revised Schedule VI and accordingly the previousyear's figures have been reclassified/ regrouped to conform to this year's classification.
The Company has recorded a turnover of Rs. 2928.10 lakhs and loss of Rs. 973.16 Lakhsin the current year against the turnover of Rs 8851.21 lakhs and loss of Rs. 257.08 Lakhsin the previous financial year ending 31.03.2013.
Keeping the Company's expansion and growth plans in mind your Directors have decidednot to recommend dividend for the year.
Your Company has not accepted any deposits falling within the meaning of Section 58A ofthe Companies Act 1956 read with the Companies (Acceptance of Deposits) Rules during thefinancial year under review.
The equity shares of your company are listed on Bombay Stock Exchange.
CAPITAL OF THE COMPANY:
Authorized capital of the company stands at Rs. 370000000 divided into 37000000equity shares of Rs. 10/- each. Paid up capital of the company stands at Rs.272260500divided into 27226050 equity shares of Rs. 10/- each.
The company's properties have been adequately insured against major risks. All theinsurable interests of your Company including inventories buildings plant and machineryand liabilities under legislative enactments are adequately insured.
In accordance with the Companies Act 1956 read with Articles of Association of thecompany the Director namely Mr. Ganesh Rao retires by rotation and being eligible offershimself for reappointment at this ensuing Annual General Meeting. Your Directors recommendhis reappointment.
DIRECTORS' RESPONSIBILITY STATEMENT:
In pursuance of Section 217(2AA) of the Companies Amendment Act 2000 your directorsconfirm
i) That the directors in the preparation of the annual accounts the applicableaccounting standards have been followed along with proper explanations relating tomaterial departures.
ii) That the director had selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the company at the end of thefinancial year.
iii) That the directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and deleting fraud and otherirregularities.
iv) That the director had prepared the annual accounts on the going concern basis.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO:
The required information as per Sec.217 (1) (e) of the Companies Act 1956 is providedhereunder:
A. Conservation of Energy:
Your Company's operations are not energy intensive. Adequate measures have been takento conserve energy wherever possible by using energy efficient computers and purchase ofenergy efficient equipment.
|B. Technology Absorption: || |
|1. Research and Development (R&D) ||NIL |
|2. Technology absorption adoption and innovation ||NIL |
|C. Foreign Exchange arnings and Out Go: || |
|Foreign Exchange Earnings ||NIL |
|Foreign Exchange Outgo ||NIL |
PARTICULARS OF EMPLOYEES:
There is no employee who is falling under section 217 (2A). Therefore the disclosuresrequired to be made under section 217 (2A) of the Companies Act 1956 and the rules madethere under are not applicable.
CODE OF CONDUCT:
The Code of conduct has been circulated to all the members of the Board and SeniorManagement and the compliance of the same has been affirmed by them. A declaration signedby the Managing Director is given in Annexure.
Your directors propose reappointment of M/s. MM Reddy & Co as statutory auditorsto hold office until the conclusion of the next Annual General Meeting of the company.
As a listed company necessary measures have been taken to comply with the listingagreements of Stock Exchanges. A report on Corporate Governance along with a certificateof compliance from the Auditors forms part of this Report as Annexure.
MANAGEMENT DISCUSSION AND ANALYSIS:
A detailed review of operations performance and future outlook of your Company and itsbusinesses is given in if Management Discussion and Analysis which forms part of thisReport.
Your directors would like tc express their grateful appreciation for assistance andco-operation received from clients banks investors Government other statutoryauthorities and all others associated with the company. Your directors also wish to placeon record their deep sense of appreciation for the excellent contribution made by theemployees at all levels which enabled the company to achieve sustained growth in theoperational performance during the year under review.