To The Members
The Directors are pleased to submit the 15th Annual Report of the Companyalong with the Audited Financial Statements for the financial year ended March 31 2013 :
| || || |
(Rs in Crores)
| || |
| ||2012-13 ||2011-12 ||2012-13 ||2011-12 |
|1 Revenue from Operations ||1473. 80 ||1233.17 ||1644.61 ||1370.52 |
|2 Operating Expenditure ||1473.71 ||1188.73 ||1633.33 ||1312.79 |
|3 Depreciation & Amortization ||7.78 ||10.05 ||8.41 ||10.51 |
|4 Operating Profit ||0.09 ||34.39 ||11.28 ||47.22 |
|5 Interest Expenses ||6.93 ||26.35 ||6.99 ||26.77 |
|6 Other Income (net) ||27.68 ||7.79 ||27.26 ||7.80 |
|7 Profit Before Tax ||13.05 ||15.83 ||23.14 ||28.24 |
|8 Provision for Tax ||2.51 ||5.11 ||4.96 ||8.14 |
|9 Profit for the Year ||10.55 ||10.72 ||18.18 ||20.10 |
|10 Balance B/F from prev Year ||323.81 ||313.09 ||339.70 ||320.47 |
|11 Balance Carried to B/S ||334.36 ||323.81 ||357.88 ||340.57 |
The Board of Directors has not declared any Dividend for the year in lieu of the fundsrequired for ongoing operations and also to fund the expected growth.
The IT segment has not only maintained turn over of the previous year but alsoimproved by 17% in the current year as compared to previous year. The sales for the yearis Rs.1475 crores (Rs.1258 crores in previous year). It is expected that the growth inthis segment will continue for the forth coming year also.
The profit for the year has been Rs.23.14 crores as compared to Rs.28.24 crores in theprevious year. The Company has ensured a strict monitoring of the expenditure.
There has been an increase in revenues during the current year by 20% as compared tothe previous year. The challenges faced by the Company over the past few years have beensuccessfully handled and expect for improvement in performance and consolidate itsresources. Company adopted various measures which have economized its expenditure withoutaffecting the business. As the resources are optimized Company is confident to improveits position in this area shortly.
Explanation on Auditors' Observation
i) In respect of a creditor to whom payables amounting to Rs.331.60 crores were underdispute / litigation the Company has entered into an agreement for settlement which isunder progress as per information and explanations given to us. Process of settlement isin progress and is further being expedited.
ii) With respect to FCCB the Company entered into an agreement with the Bond Holdersto redeem the bonds by issue of Share Warrants on Preferential basis. However it isrejected by FIPB. The Company is in discussions with Bond Holders for a settlement.
Corporate governance report and management discussion and Analysis statement
A report on Corporate Governance and Management Discussion and Analysis Statement isenclosed in the Annual Report. A certificate for compliance with the Clause 49 of theListing Agreement issued by the Practicing Company Secretary is also enclosed in theAnnual Report.
PARTICULARS OF EMPLOYEES
The information required under Section 217(2A) of the Act and the Rules made thereunder is provided in an Annexure forming part of this Report. In terms of Section219(l)(b)(iv) of the Act the Report and Accounts are being sent to the shareholdersexcluding the aforesaid Annexure. Any Shareholder interested in obtaining a copy of thesame may write to the Company Secretary.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN
EXCHANGE EARNINGS AND OUTGO
The particulars as prescribed under Section 217 (l)(e) of the Companies Act 1956 readwith the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules1988 are set out in an annexure to this Report.
The Directors wish to thank the members for their cooperation and reposing faith in thecompany and for their support to the Company. The Directors also thank the Company'scustomers business associates vendors and bankers for their continuous support in thedevelopment of the company. The Directors also thank the Government of India and otherconcerned State Governments and agencies for their cooperation. In the least theDirectors place on record their appreciation for the contributions made by members andassociates of the Prithvi family across the globe.
Particulars pursuant to Companies (Disclosure of Particulars in their Report of theBoard of Directors) Rules 1988.
a. Conservation of Energy
The operations of the Company involve low energy consumption. However adequatemeasures have been taken to conserve energy wherever possible.
b. Technology Absorption Adaptation and Innovation
Specific areas in which R&D was carried out by the Company.
Regular up-gradation of technology is achieved through the constant training of all thesoftware professionals.
Benefits derived as a result of the above R&D and future plan of action.
The efforts shall result in building competitive business solutions that incorporateemerging technologies.
c. Expenditure on R&D
A policy on R&D is being formulated and based on this policy capitalization ofR&D expenditure shall be undertaken.
| ||Sd/- ||Sd/- |
| ||V. Satish Kumar ||S. Lalith Prasad |
| ||Managing Director ||Director |
|Hyderabad || || |
|August 14 2013 || || |