| The Directors of e.star Infotech Limited /"e.star") take pleasure in
presenting the Eighth Annual Report on the operation of the company,
together with the audited accounts for the year ended 31st March 2007.
(Rs.In lacs)
Particulars 31.03.2007 31.03.2006
Total incom 1152.45 1586.72
Profit before Interest Depreciation and
Tax (PBDIT) 219.08 330.51
Less: Interest 0.02 0.17
Profit before Depreciation and Tax 219.06 330.34
Less: Depreciation 145.93 141.35
Profit before Tax 73.13 188.99
Less: Provision for Tax/Fringe Benefit Tax 0.01 0.01
Less: Deferred Tax 0.00 (1.66)
Profit after Tax 73.12 190.64
Profit brought from earlier years 1942.96 1752.32
Profit transferred to Balance Sheet 2016.08 1942.96
Year and period under review:
During the year under review, the turnover of the company has decreased
to Rs. 1152.45 lacs as compared to Rs. 1586.72 lacs for the previous
year. Profit before Depreciation and Taxation amounted to Rs.219.08.
After providing for Depreciation and Taxation, the Net Profit stands to
Rs.73.13 lacs as against Rs.188.99 lacs for the previous year.
Dividend
With a view to conserve the resources for expansion in Business Process
Outsourcing (BPO) and other Information Technology Enabled Services
(ITES), your Directors have deemed it prudent to plough back the
available profits.
Actual Utilization vis.a.vis Projected Utilization of IPO Funds
The IPO Funds have been utilized for the purpose and business for which
it was raised. Variations as regards the actual utilization of IPO
Funds vis-a-vis projected utilization is on account of the changes in
business needs arising due to frequent changes in Domestic and Global
Software Industry.
Status of the Bonus Shares
Issue of Bonus shares approved by the Shareholders of the Company at
the Annual General Meeting held on 29th November 2002 is subject to
approval from Securities and Exchange Board of India for relaxation
under the provision of Clause 15.1.6 of Chapter XV of SEBI (Disclosure
and Investor Protection) Guidelines, 2000.
Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act 1956, the Directors
to the best of their knowledge and belief confirm that:
* The applicable standards have been followed in the preparation of the
annual accounts.
* The Directors have 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 as at 31st March 2007 and the profit of the company for the
year ended on that date.
* The Directors have taken appropriate 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; and
* The Directors have prepared the attached Statement of Accounts for
the year ended 31st March 2007 on a going concern basis.
Directors
In accordance with the provisions of the Companies Act ,1956 and the
Articles of Association of the company,
Mr. Deepak Kotecha director of the company, shall retire by
rotation at the forthcoming Annual General Meeting
and eligible for re-appointment. The Board of Directors recommends his
re-appointment
Fixed Deposit
During the year under review, the company had neither accepted nor
renewed any deposit from public within the meaning of Section 58A of
the Companies Act, 1956.
Auditors
¯ M/s. Durgesh Kabra & Company , the Statutory Auditors of the company
retire at the ensuing Annual General Meeting and are eligible for
re-appointment The retiring Auditors have furnished a certificate of
their eligibility for re-appointment under section 224(1 B) of the
Companies Act, 1956 and have indicated their willingness to continue in
the said office.
Auditors Report
The observations made by the Auditors in their report read with
relevant notes as given in the Notes on Accounts annexed to the
Accounts , are self explanatory and therefore do not call for any
further comments .under section 217 (3) of the Companies Act 1956.
Audit Committee
The company has an Audit Committee comprising of Three Non Executive
Directors of the company viz. Mr.Deepak Kotecha , Mr.Bankat Sharma ,
Mr.Vijay B.Sheth. The Board of Directors has appointed Mr.Deepak
Kotecha as the Chairman of the Committee.
Conservation of Energy, Research & Development, Technology Absorption,
Foreign Exchange Earnings and Outgo
A) Conservation of Energy and Technology Absorption
Considering the Companys business activities , the Directors have
nothing to state in connection with Conservation of Energy and
Technology Absorption
B) Foreign Exchange Earnings and Outgo
The details of expenditure and earnings in foreign currency are given
in Note No. 18 of Schedule 15 of Notes to Accounts.
Particulars as per section 217(2A) of the Companies Act,1956
During the year under report , there was no employee who was in receipt
of remuneration in excess of limits prescribed under the provisions of
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees), Rules, 1975.
Corporate Governance
Your company follows the principles of effective corporate governance
practices. The company has taken steps to comply with the requirements
of revised clause 49 of the Listing Agreement with the Stock Exchanges.
A report on Corporate Governance has been appended under separate
section titled " Corporate Governance Report" and forms a part of the
Annual Report.
Certificate from Auditors of the Company M/s.Durgesh Kabra & Co,
Chartered Accountants, confirming compliance of condition of Corporate
Governance as stipulated under the aforesaid Clause 49, is annexed to
this report.
CEO/CFO Certificates
As required by clause 49 of the Listing Agreement, a CEO/CFO
certificate has been attached to this report.
Acknowledgements
The Directors thanks the Companys Customers , Contractors , Vendors ,
Bankers , Government and other authorities and the Shareholders for
their consistent support to the company. The Directors also sincerely
acknowledge the significant contribution made by all the employees for
their dedicated services to the company.
By Order of the Board
For e.star Infotech Limited
Place: Navi Mumbai Mahesh Thanvi
Dated: 29th August 2007 Chairman & Managing Director |