| The Directors are happy to present Twenty-Sixth Annual Report and the
Financial Results tor the year ended on 31st March 2009.
I) Financial Results (Rs. in lacs)
Particulars 2008-2009 2007-2008
Income from operations 107.40 150.48
Other Income 11.87 12.65
Total Income 119.27 163.13
Total Expenditure before depreciation 112.48 136.31
Profit/(Loss) before depreciation 6.79 26.82
Depreciation 27.41 33.93
Extra-ordinary & Non-recurring items Nil Nil
Prior period adjustments Nil (0.55)
Net Profit /(Loss) before Taxation . (20.62) (7.66)
Provision for Taxation 0.67 0.82
Deferred Tax 1.35 2.82
Net Profit/(Loss) after Taxation (22.64) (11.30)
III) Fixed Deposits
The Company has not accepted any deposits from the public during the
year pursuant to Ý Section 58A of the Companies Act 1956.
IV) Personnel
None of the employees of the Company were in receipt of remunerations
as required to be disclosed under Section 217(2A) of the Companies Act,
1956.
V) Directors
Mrs. K.D.Bhote and Mr. N. Gowri Shankar, who are liable to retire by
rotation and being eligible, offer themselves for re-appointment.
Mr. Vinay Vir was appointed as additional director with effect from
24lh October, 2008 and pursuant to section 260 of the Companies Act,
1956 he holds office up to the commencement of ensuring 26lh Annual
General Meeting. It is proposed to re- appoint him in the 26th Annual
General Meeting
VI) Auditors
The auditors, M/s. Ramanatham & Rao, Chartered Accountantsof the
Company who retire at the conclusion of the ensuing Annual General
Meeting and have confirmed their eligibility and willingness to accept
office, if reappointed. The Company has also received a Certificate
from them under Section 224 (1B) of the Companies Act, 1956. in
response to the qualification made by the auditors in clause 7 of the
Annexure to the Auditors Report, the management has been taking
appropriate steps to have an internal audit system.
VII) Corporate Governance
Pursuant to the provisions of Clause 49 of the Listing Agreement and
Section 292A of the Companies Act, 1956, a report on the Corporate
Governance, which inter alia, includes the composition and construction
of Audit Committee, is featuring as a part of Annual Report. Your
Company will continue to adhere in letter and spirit to the good
corporate governance policies. Pursuant to the provision of Clause
49(VII) (1) of the Listing Agreement, a certificate from the auditors
of the Company on the compliance of the Clause is enclosed.
VIII) CEOs Declaration
Pursuant to the provisions of Clause 49(l)(D)(ii) of the Listing
Agreement, a declaration by the Chairman and Managing Director of the
Company declaring that all the members of the Board and the Senior
Personnel of the Company have affirmed compliance with the Code of
Conduct of the Company is enclosed.
IX) Directors Responsibility Statement:
The Directors confirm
i) That in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to materia! departures.
ii) That the directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are
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
loss of the Company for that period.
iii) That the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv) That the directors had prepared the annual accounts on a going
concern basis:
X) Dividend
The Directors expresses their inability to recommend dividend during
the year due to the loss incurred by the Company.
XI) Conservation of Energy & Technology Absorption, Foreign Exchange
Earnings and Outgo
A. Conservation of Energy:
(a) Energy Conservation measures taken: Your Companys operations are
software oriented and not energy intensive. Adequate measures have
been taken to conserve energy wherever possible by using
energy-efficient computers and equipment.
(b) Additional investments and proposals, if any, being implemented for
reduction of consumption of energy: Exchanging legacy CRT monitors with
LCD power saving monitors.
(c) Impact of the measures fa) and (b) above for energy consumption and
consequent impact on the cost of production of goods: As energy
conservation is very meager
and energy cost forms a small part of total costs, the impact of costs
is not material.
B. Technology Absorption: Research and Development (R & D)
1. Specific areas in which R&D carried out by the Company
The Company continues to focus and invest in R&D activities for
developing and Ý improving the quality and enhancing the benefits of
its software products. The Company is a product oriented company and
the continuous development of newer products and the existing products
is an on going exercise.
2. Benefits derived as a result of the R & D
Research and development of new products & processes will continue to
be of importance to your Company; Products although have a longer
gestation, are of higher benefit to the Company and its profitability
in the long run:
3. Future Plan of Action
- The Company continues to strive for development and innovation of new
products and improving the existing ones in order to meet the changing
requirements and to cater to customer needs.
4. Expenditure on R & D -NIL-
Technology Absorption, Adaptation and Innovation:
As a result of new partnerships the Company now has abso new
technologies and will result in better adaptation to Indian customer
needs.
XII) Appreciation:
Your Directors place on record their appreciation of the continued
assistance and co-operation extended, by the shareholders, customers,
bankers and the dedicated employees and the business associates.
For and on behalf of Board of Directors
Place: Secunderabad (D.R.Bhote)
Date :.29-07-2009 Chairman
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