Mar 31, 2013
To The Members,
The Directors have great pleasure in presenting the Second Annual Report and the Audited Accounts of your Company for the year ended 31st March 2013.
Year Ended Year Ended Particulars 31.03.2013 (Amount inRs.) 31.03.2012 (Amount in Rs.)
Income from Operations and Other Income 39,861,853.14 13,365,689.68
Profit before Interest & Depreciation 10,393,536.32 2,957,204.46
Less: Interest & Bank charges 202,026.41 0.00
Less: Depreciation 6,148,605.46 2,111,542.50
Profit before Tax 4,042,904.45 845,661.96
Less: Provision for Taxation 1,249,257.00 261,310.00
Profit after Tax 2,793,647.45 584,351.96
Add: Surplus brought forward 584,351.96 0.00
Balance carried to Balance Sheet 3,377,999.41 584,351.96
The operations of the Company for the year under review have resulted in the gross profit of Rs. 1,03,93,536.32 as against Rs. 29,57,204.46 in the previous year. After providing for interest, depreciation and taxes, the Company has recorded a net profit of Rs. 27,93,647.45 as against Rs. 5,84,351.96 in the previous year. The gross revenue stood at Rs. 3,98,61,853.14 as against Rs. 1,33,65,689.68 during the previous vear.
The year 2012-13, remained a challenging year both from domestic and global scenario. While the European financial crisis continued for this year, the domestic economy also suffered due to high inflation and uncontrolled fiscal deficit. The uncertain political scenario coupled with the scams & corruption cases in the Country also affected the sentiments in the markets. However, due to prudent management policies your Company''s performance remained reasonably good.
We are the choice of more than 3000 users for empowering their schools, institutions and universities. We have the expertise in developing and implementing Educational Management Solutions. We also have a team of the professionals that has an in depth knowledge of education system and trends.
We are an ISO 9001:2008 certified IT Company and also listed on Bombay Stock Exchange SME Platform We have successfully delivered Educational ERP solutions to many big Group and Societies. We have a huge channel partner network with a presence in more than 100 cities in India. We also have our channel partners in Dubai, Bahrain, Nepal, Sri Lanka, and Cambodia. All these will result into great business opportunity in the coming years.
ABOUT OUR PRODUCTS
Guru Seva (An Educational Management ERP)
The research work of last couple of years has resulted in to coming out with a unique product for enabling better management of education system covering almost every domain of this of the education field.
We offer this solution in Single and Multiuser as a desktop application. We are offering this solution in different versions This solution covers more than 30 verticals of the education system and is equally beneficial for the schools providing primary education, higher secondary and higher education throughly as designed after researching fundamental practices of education system. This solution is built on latest technologies and provides more than 450 reports on different verticals.
We have also designed and developed a web based version of Guru Seva. This solution provided an extra edge to the educational institutions as the management is not bound to sit in the school/ college premises in order to see the reports.
Another considerable point is this that we are offering Guru Seva in BOOT and SaaS Model that very few companies are doing right now.
We are affordable in comparison to other players and our implementation time is minimal. After a bit of support and implementation the user gets ready to use Guru Seva and delivers results to the management.
The feedback of our dealer network is good and today we have more than 100 dealers and channel partners with us in various cities in India and in International market.
Shiklo.in (Educational Portal)
We have designed and developed a unique product named shiklo.in for online home-work and subject assistance to students from standard 5th to 11th.
We are calling it unique not because we provide content and online tests on shiklo but we are providing subject experts and online home tutors who are available from 7:00 AM to 9:00 PM to our students. The students can chat with them using different text, audio and video chat options bundled with shiklo.
Other than this we have a lot more for students like subject content, online test generator etc. and thus they can use and learn on their own. Shiklo is very much cost effective in comparison to the traditional home tuitions and per day cost comes to as minimum of Rs. 10.00 per day.
There are other players also in the market who are provide technology solutions to the schools but most of them are offering either subject content or school management solution . This has been the reason that we have always stood ahead of them as we are providing complete solution including Educational Management ERP as well as Online Education.
If on an average we say that there are 700 students in each school then we have a database of 2100000 students and we are very much sure that initially we can get 210000 students registered with us on shiklo.in i.e. 10% of the total database we have with us and this will be our direct approach to the students and their parents.
We are getting into new products and services while maintaining our existing products, market and customer base. We are offering Guru Seva integrated with Tablet PCs. This will be highly beneficial for teachers, students and the management as they all will be sharing information and will be live with each other. This will definitely increase the performance of teachers and students and the overall quality of education will be improved.
We are also planning to setup shiklo hubs in different cities where we are already present. In these hubs we will provide utilities to the students at on reasonable prices. We will also setup video conferencing systems on these hubs where the students can directly communicate with shiklo experts and tutors. This will be a virtual class room where the students can attend the classes as per their batch schedules. This is going to be an entirely new kind of experience to the students.
We are also going to launch the premium high end version of our Educational Institutions Management Solution named as ''Edmentor''. This is an automation solution bundled with all the high end technologies like GPS for school Transport, RFID for Student tracking and Library, Cafeteria and Fees Management. The students and Teacher will be given Tablet PCs. This will also be equipped with the content custom built as per the curriculum of the School/Institution.
INITIAL PUBLIC OFFER
During the year your company came out with an IPO for 35,84,000 Equity Shares of Rs 10/- each at a premium of Rs 5/- each per share. The IPO was subscribed by 1.26 times. The company got its equity shares listed on BSE SME Platform on 4th September 2012. Initial Public Offer of your Company was opened on 16th August 2012 and closed on 21st August 2012. M/s. Ajcon Global Services ltd. was the lead manager of the issue.
During the year the Company allotted 35,84,000 Equity Shares of the Face Value of Rs. 10/- each in IPO at a premium of Rs 5/- per share, consequentiy, the number of issued, subscribed and paid up capital increased from 64,31,300 Equity Shares to 1,00,15,300 Equity Shares of Rs. 10/- each aggregating Rs. 10,01,53,000/-
UTILISATION OF IPO FUND
During the year your Company raised fund through Initial Public Offer for objects as mentioned in Prospectus and has utilised major amount towards the object stated in the prospectus. The IPO funds have been utlised in expansion of our product "Guruseva" which is an Educational ERP Solution, under BOOT Model through Cloud Computing solutions, to establish and expand infrastructure for B2B Educational Portal www.shiklo.in, to meet the promotion and branding expenses for setting up robust sales network for our products. The Unutilized amount at the end of the year was kept in the bank fixed deposit.
In order to conserve the resources for expansion of business and working capital needs, your directors do not recommend any dividend.
In accordance with the provisions of Section 255 & 256 of the Companies Act, 1956 and Article of Association of the Company, Mr. Umesh Chand Sharma & Mr. Vivek Mishra, Directors, retire by rotation and being eligible offer himself for re-appointment at the ensuing Annual General Meeting.
Brief resume of the Directors proposed to be reappointed, nature of his expertise in specific functional areas and name of companies in which he holds directorship and memberships/Chairmanship of Board Committees, as stipulated under Clause 52 of Listing Agreement with the Stock Exchange in India, are provided in the Report on Corporate Governance forming part of the Annual Report.
The Company has not accepted any fixed deposits from public within the meaning of section 58A & 58AA of the Companies Act, 1956 and the rules made there under.
The Company is committed to maintain highest standards of Corporate Governance. To comply with the conditions of Corporate Governance, pursuant to Clause 52 of the Listing Agreement with the Stock Exchange, Management Discussion and Analysis Report, Corporate Governance Report and Auditor Certificate and shareholders information form a part of this Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under section 217 (2AA) of the Companies Act, 1956, the Board of Directors of the Company confirms:
i. that in the preparation of the annual accounts, the applicable accounting standards have been followed and that there are no material departure from the same;
ii. that the selected accounting policies were applied consistently and the directors 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 on 31st March, 2013 and of the profit of the Company for the year ended on that date;
iii. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. that the annual accounts have been prepared on a "going concern" basis.
All the properties of the Company are adequately insured. The Company is also adequately insured for its activities
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Particulars as prescribed under Section 217(1) (e) of the Companies Act, 1956 read with Companies (disclosure of particulars in the report of Board of Directors) Rules, 1988 are not applicable, as the Company is not engaged in manufacturing activities.
The Company has not earned foreign exchange during the financial year 2012-13. The company has not made any expenditure in foreign currency during the year.
No information pursuant to Section 217 (2A) of the Companies Act, 1956 is attached, as there was no employee drawing remuneration in excess of limits prescribed.
M/s. J.P. Associates, Chartered Accountants, Jhansi, Auditors of the Company having Firm Registration No. 004743C, retires at the ensuing Annual General Meeting, are eligible for re-appointment. Their appointment is recommended to hold office until the conclusion of the forthcoming Annual General Meeting. The Company has received certificate from the Auditors to the effect that tiieir reappointment, if made, will be in accordance with sub-section (IB) of section 224 of the Companies Act, 1956.
The Audit Committee and the Board of directors therefore recommend M/s. J.P. Associates, Chartered Accountants as Statutory Auditors of the Company for the year 2013-14 for the approval oi shareholders.
AUDITORS'' REPORT & CERTIFICATION
The Auditors'' Report forms the part of this Annual Report. The Auditors have also certified the Company''s compliance requirements of Corporate Governance in terms of Clause 52 of the Listing Agreement and the same is enclosed as an annexure to the Report on Corporate Governance.
The observations made by the Auditors in their Report read with the relevant notes as given in the notes on financial statements for the year ended 31st March, 2013 are self explanatory and therefore do not call for any further comments under Section 217(3) of the Companies Act, 1956.
Your Directors wish to place on record their thanks and gratitude to the Company''s Bankers, Educational Institutions, Customers and other Authorities for their support, co-operation, guidance and assistance. The Board is also grateful to the shareholders for their continued confidence. We would also like to express our sincere thanks to the BSE, SEBI and Merchant Bankers, Underwriters & Market Makers for their Support and guidance during over IPO this year.
The Board of Directors takes this opportunity to express their appreciation of the sincere efforts put in by the staff and executives at all the levels and hopes that they would continue their dedicated efforts in die future too.
For and on behalf of the Board
Date: 28.05.2013 (Vishal Mishra)