| The Directors are pleased to present you the Fifth Annual Report with
the Audited Accounts for the fiscal year from 1st July 2010 to 30th
June 2011.
Performance
Your Company has been performing satisfactory. During the year your
Company has reported revenues at Rs. 68.36 million compared to Rs.
64.67 million during the previous year.
The net profit during the period increased to Rs. 14.18 million
compared to Rs. 7.58 to the previous year ended June 30, 2010.
The review of the performance for the period ended June 30, 2011 and
the business outlook of the Company is included in section on
Management Discussion and Analysis included in Annexure "B" to this
report.
Fixed deposits
Your Company has not accepted any fixed deposits and, as such, no
amount of principal or interest was outstanding as of the Balance Sheet
date.
Directors:
Dr. Narayan Raman retires by rotation at the ensuing Annual General
Meeting and being eligible, offer himself for reappointment.
Auditors:
The auditors M/s. CNGSN & Associates, Chartered Accountants, Chennai
retire at the ensuing Annual General Meeting and have confirmed their
eligibility and willingness to accept office, if re- appointed.
Qualification from the Audit report
The Board would like to clarify on the two comments of the Auditors
thus:
Your directors place on record their appreciation of the support
extended by Customers, Investors, Bankers, Business Associates,
Vendors, Share Holders and various Government Agencies. Your directors
would also like to place on record the contribution made by the
employees / consultants who have together contributed for the success
of your Company.
1. The provision for the impairment would not be required as the value
to be earned through the Intellectual property is more than the
carrying cost of IPRs and accordingly no provision for the write-off is
made during the current year.
2. The provision for the Deferred Tax is not required by the Company as
per the advice given to the Company.
The Qualification of the auditor is as follows:
In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C of section 211 of the Companies Act, 1956 subject to
non- provision for impairment of the intellectual property rights as
required under AS-26 and Your Directors confirm:
i) that in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures; the management maintains that the
Intellectual Property Rights created through the process of digital
animation techniques have perpetual value and hence is not subject to
the amortization or impairment as per the AS 26.
ii) that they 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 profit or loss
of the Company for that period;
iii) that they 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 they had prepared the annual accounts on a going concern basis
Corporate Governance:
Pursuant to clause 49 of the Listing Agreement with Stock Exchanges, a
report on Corporate Governance is given in Annexure.
Management Discussion and Analysis
Pursuant to clause 49 of the Listing Agreement with Stock Exchanges, a
report on Management Discussion Analysis is given in Annexure "B".
Employee Particulars
Particulars of employees as required under section 217(2A) of the
Companies Act, 1956, and the Companies (Particulars of Employee) Rules,
1975, as amended, forms part of this report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo:
The particulars as prescribed under section 217(1)(e) of the Companies
Act, 1956, read with the Companies (Disclosure of particulars in the
report of Board of Directors) Rules, 1988, are as follows :-
A. Conservation of Energy:
The Company's operations are not power intensive. Nevertheless, your
Company has introduced various measures to conserve and minimize the
use of energy.
B. Research & Development (R & D):
a) Specific areas in which R & D is carried out by the Company:
R&D activities include tools development with the object of devising
efficient methods of pre- production phase. The Company has in place a
quality assurance team to ensure adherence to stringent quality norms.
b) Benefits derived as a result of the above R&D: Reduction in cost and
improvement in quality adaptability of Software Systems and Packages.
C. Technology Absorption, Adaptation & Innovation:
No technology has been imported. Indigenous technology available is
continuously being upgraded to improve overall performance.
D. Foreign Exchange Earnings & Outgo:
Activities relating to Exports & Export Plans:
The Company is making continuous efforts to explore new foreign markets
and to enlarge its shares in the existing markets for export of digital
animation content. Information on Foreign Exchange earnings and outgo
are specified in the notes to the accounts.
Acknowledgements
Your directors place on record their appreciation of the support
extended by Customers, Investors, Bankers, Business Associates,
Vendors, Share Holders and various Government Agencies. Your directors
would also like to place on record the contribution made by the
employees / consultants who have together contributed for the success
of your Company.
On behalf of the Board of Directors
Krishnakumar Subramanian
Chairman and Managing Director
Mumbai, 29th February 2012 | 