Mar 31, 2010
1.1. Changes in Capital Structure
(a) Increase in Authorised Share Capital
Pursuant to the approval of shareholders in an Extra Ordinary General Meeting (EGM), the authorized share capital of the Company has been increased from Rs. 75,00,00,000 (divided into 75,00,00,000 equity shares of Re. 1 each) to Rs. 125,00,00,000 (divided into 125,00,00,000 equity shares of Re. 1 each).
(b) Issue of Bonus Shares
The Company has allotted 66,45,00,000 bonus shares of Re.1/- each as fully paid up by captalising Share Premium to the extent of 65,90,50,000 and by appropriation of reserves and surplus to the extent of Rs.54,50,000 to its existing share holders in the ratio of Five Shares for every Four shares held.
1.2. Software Technology Parks Scheme
The company has setup at Chennai, a hundred percent export oriented unit under the Software Technology Park Scheme (STPI). Another unit was set up at Perungudi during June 2009. The company has availed tax exemption on such scheme in accordance with the provision of the income tax Act, 1961.
1.3. Secured Loans
Bank Overdrafts are secured on the receivables and further on the properties of the Directors.
Periodically the company evaluates all the customer dues to the company for collectibles and suitable provision is made based on various factors including experience of the company, ability of the customer and other factors which could affect the customers ability to settle.
1.5. Leased Assets
The company has entered into operating lease arrangements for office and production premises, subject to the mutual agreement between the lessor and lessee under cancelable operating lease agreements that are renewable on a periodic basis at the option of the lessor and the lessee. Lease rentals are recognised as expenses on accrual basis in the profit and loss account.
1.6. Earning per share
Basic earnings (loss) per share are calculated as enumerated in Accounting Standard 20 on Earnings per Share, paragraph 5, by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding as on the Balance Sheet date. In the absence of debts instruments or share warrants or other options the potential equity shares are nil and hence diluted EPS does not arise.
1.7. Quantitative Particulars
Company is engaged in the development of application software. The production and sales of such software cannot be expressed in any generic unit. Hence it is not possible to give quantitative details of sales and certain information as required under paragraph 3, 4C, and 4D of Part II or Schedule VI of the Companies Act, 1956.The Company did not carry inventory at the year end.
1.8. Segment Reporting
The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.
a) Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprises as a whole and are not allocable to segments on a reasonable basis, have been included under unallowable corporate expenses.
b) Investments, advance towards investments and other advances, which are not allocable to segments, are excluded from segment capital employed.
1.9. Accounting Period
The accounting period is twelve months from 01.04.2009 to 31.03.2010 for Sanraa Media Limited and its subsidiaries Sanraa Global Green Energy Limited from 22.09.2009 to 31.03.2010, G4 Infocom Pte Ltd from 15.04.2009 to 31.03.2010
1.10. Managerial assertions
No amount is due to Small Scale Ancillary Industrial Undertakings.
In the opinion of the Board of Directors, the Current Assets, Loans and Advances shown are of the approximate value, if realized, in the ordinary course of business and adequate provisions are made for all known liabilities.
Debit and Credit balances are subject to confirmation or reconciliation.
Expenditure incurred on employees in receipt of remuneration of not less than Rs. 24 lakhs per annum, where employed throughout the period or not less than Rs. 2,00,000/- per month, where employed for a part of the period is NIL.
1.11. Contingent Liabilities
Income tax Rs.16,67,632/ in appeal before CIT & ITAT from 31 -03-2008.
1.12. Cash Flow Statement
Consolidated Cash Flow Statement is enclosed.