Mar 31, 2013
The Board of Directors of VALUEMART INFO TECHNOLOGIES LIMITED takes
pleasure in placing the SIXTEENTH ANNUAL REPORT and AUDITED STATEMENTS
OF ACCOUNTS for the period ended MARCH 31, 2013.
FINANCIAL RESULTS
(Rs. In Lakhs)
Year ended
March Year ended
March
Particulars 31, 2013 31, 2012
(12 months) (12 months)
Total Income 1,893.98 2,313.48
Expenditure 1,500.90 1,869.42
Profit before Interest,
Depreciation and Tax 393.08 444.06
Interest and Finance charges 20.87 0.76
Profit before Depreciation and Tax 372.21 443.30
Less: Depreciation 300.27 297.86
Net Profit Before Tax 71.94 145.44
Provision for Tax 36.53 114.58
Net Profit After Tax 35.41 30.86
Net Profit after Adjustments 35.41 30.86
Surplus from Previous year 661.54 630.68
Profit carried forward 696.95 661.54
Paid-up Share Capital 1,263.34 1,263.34
REVIEW OF PERFORMANCE
The year under review was fairly satisfying with a marginal increase in
the net profits of the Company. Turnover for the year has reduced by
18% from Rs. 2,313.48 Lakhs to Rs. 1,889.00 Lakhs. Other Income during
the year was 4.98 Lakhs. The Total Expenditure incurred by the Company
has also reduced by almost 16% from Rs. 2,168.04 Lakhs in the previous
year to Rs. 1,822.05 Lakhs in the current year. On account of decline
in the expenditure, the Net Profits after Tax have increased by 15% to
Rs. 35.41 Lakhs from Rs. 30.68 Lakhs in the previous year.
INDUSTRY SCENARIO
The IT and the ITeS sectors have emerged as the anchors of the Indian
Technology sector on account of high growth in terms of revenue and
employment generation, and multiplicity of services ranging from core
services like BPO, KPO and LPO to E-Commerce, E-Governance and IT
enabled services covering banking, finance and insurance sectors,
multimedia and medical transcription services. Skilled manpower, high
quality services, low costs, high productivity, coupled with conducive
regulatory policies by the Government have placed India on the global
platform.
However, the high growth potential in the sector as a whole, has also
adversely affected the small and mid-size companies. Some challenges
faced by these companies include competition from large companies and
other low cost countries, high attrition rates, and higher costs of
acquiring new clients and retention of existing clients.
The year under review has also seen a number of big and mid-sized
IT-BPO companies foray into rural areas mainly due to the availability
of hugely untapped talent at lower costs and an overall lower
operations costs. Reduced rates of attrition in rural areas and ample
support of the respective State Governments have been added advantages
in this segment.
BUSINESS TRENDS
India as an emerging market offers a large pool of IT savvy resources.
It is estimated that the Indian IT / ITeS industry will double its
Domestic revenues in the next financial year, which constitutes almost
39% of total revenue. The IT / ITeS Exports revenue constitutes the
remaining 61% of revenue share. The IT / ITeS sector in India is highly
localized and clustered in some major cities, however, due to
infrastructure limits and scarcity of land in these cities, the sector
is gradually expanding to Tier II and Tier III cities. Access to high
quality education in semi-urban and rural areas has further created a
growing pool of resources in the industry. The employee base is also
expected by over 10 times in the following years.
BUSINESS PROSPECTS
Valuemart continues to focus on select segments across the IT and BPO
industry and offers specialized and customized solutions to address the
specific needs of its clients. The Company is targeting the enterprise
solution space to address the mid to large size enterprise market. It
offers contemporary Business Process Management (BPM) based solutions
and frameworks. Valuemart has further consolidated its position and
has added several new clients in this space.
Keeping in tune with the trends in the IT Â BPO sectors, Valuemart has
also forayed into the Tier II and Tier III cities due to availability
of skilled labour at lower costs. Reduced operational costs, lower
attrition rates and lower cost of acquiring and retaining new clients
are the other benefits offered by these areas. The Company''s edge in
quality and cost benefits have further enhanced its ability to bid for
high value projects and move up the value chain.
DIVIDEND
In view of the need to conserve resources to meet working capital
requirements, the Board expresses its inability to declare any dividend
for the Financial Year.
FIXED DEPOSITS
Your Company has not accepted any Fixed Deposits from public. Hence no
amount of principal or interest was outstanding.
LISTING FEES
The Company has paid the Annual Listing Fees for the year 2013-14 to
the Bombay Stock Exchange Limited where your Company''s shares are
listed.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required u/s 217(2AA) of the Companies Act, 1956, your Board of
Directors confirms that:
- In the preparation of the Annual Accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
- 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 at the end of the financial year and of the profit and loss
of the Company for the year;
- The Directors have 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.
- The Directors have prepared the annual accounts on an ongoing concern
basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
In terms of Section 217(1) (e) of the Companies Act, 1956, following
disclosures are made:
- The Management has taken adequate steps to conserve energy, wherever
possible.
- Technology absorption and innovation is a continuous process in the
company;
- Foreign Exchange Earnings : Nil Foreign Exchange Outgo : Nil
PARTICULARS OF EMPLOYEES
There are no employees in the Company whose particulars are required to
be furnished under Section 217(2A) of the Companies Act, 1956, since
the remuneration paid to them is less than the prescribed limits.
CORPORATE GOVERNANCE
In accordance with Clause 49 of the Listing Agreement entered into with
the Stock Exchanges, the Corporate Governance Report and the Auditors''
Certificate thereon regarding compliance of requirements of Corporate
Governance, Management Discussion and Analysis Report, Certificate on
Code of Conduct and Certificate by the CEO / CFO are furnished as a
part of this Annual Report.
DIRECTORS
Mr. M. Manivannan and Mr. S. Prem Anand have resigned from the Board of
Directors of the Company on November 09, 2012. Your Directors
appreciate and acknowledge their contributions to the Company.
Mr. K. H. Ramamurthi, Non  Executive Chairman and Director has
expressed his desire to step-down from the Board of Directors and
retire at the ensuing Annual General Meeting of the Company. Your
Directors express their sincere gratitude to Mr. Ramamurthi for his
unstinted support and contributions to the Company.
Your Directors have appointed Mr. P. K. Pande as an Additional Director
on September 02, 2013. Your approval is being sought for his
appointment at the ensuing Annual General Meeting.
STATUTORY AUDITOR
Mr. V. Sreenivasan, Chartered Accountant retires at the conclusion of
the ensuing Annual General Meeting and is eligible for re-appointment.
He has furnished the required Certificate under Section 224(1B) of the
Companies Act, 1956. The Shareholders are requested to appoint the
auditor and fix his remuneration.
AUDIT OBSERVATIONS
The Auditor has made certain observations and the Notes on Accounts
adequately cover the action being taken by the Management.
ACKNOWLEDGEMENTS
The Board places on record its appreciation for the continued support
rendered by the Company''s Shareholders, Business Partners and
Associates, Bankers, Employees, Government, Stock Exchanges and Share
Transfer Agents during the year under report.
For and on behalf of the
Board of Directors
VALUEMART INFO TECHNOLOGIES LIMITED
Place: Bangalore K. H. RAMAMURTHI
Date : September 02, 2013 CHAIRMAN
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