| Dear Members,
The Directors have pleasure in presenting before you the 15th Annual
Report of the Company together with the Audited Statements of Accounts
for the year ended 31st March, 2014.
FINANCIAL RESULTS:
31.03.2014 31.03.2013
Particulars Rs Rs.
I) INCOME
a) Income from operations 12,49,70,759 82,977,246
d) Other Income 14,07,767 288,641
TOTAL 12,63,78,526 83,265,887
II) EXPENDITURE
a) Operating Expenses 8,39,52,733 4,79,97,068
b) Payments & Benefits To Employees 1,10,86,013 1,24,86,364
c) Administrative Expenses 1,86,68,248 1,50,37,289
TOTAL 11,37,06,994 7,55,20,721
GROSS PROFIT 1,26,71,532 77,45,166
III) PROFIT BEFORE INTEREST AND
DEPRECIATION
Interest 12,43,256 12,26,017
IV) PROFIT BEFORE DEPRECIATION
Depreciation 34,09,074 30,01,935
V) PROFIT /(LOSS)BEFORE TAX
Prior period Expenses NIL NIL
Prior period Incomes NIL NIL
VI) PROVISION FOR TAXATION
For Current Income Tax Nil Nil
For Deferred Tax/Liability (Asset) (1,30,301) (316,685)
PROFIT / (LOSS)AFTER TAX 81,49,503 3,833,899
Basic and Diluted Earnings Per Share 1.58 0.74
PERFORMANCE:
Your company has started Digital Head end division, your company is
importing components and assembling and integrating it in Hyderabad so
far your company has successfully executed seven head end in Andhra
Pradesh as many more orders are in pipeline, as Government of India has
passed a bill in parliament for converting cable TV into digital format
in our country by end of 2015, your company has geared up to meet the
demand in this segment .Your company is also planning to enter into
Revenue sharing with established MSO,s in small towns by using their
infrastructure your company wants to give digital TV and internet to
end users in one fiber using GPON technology this will ensure the
company long term returns
Your company has entered into providing of triple play services in
gated communities as of now your company has successfully implemented
this service in nine gated communities the revenue from this sector is
very encouraging , hence your company is targeting another ten
complexes in this finical year i.e 10000 households.
All this factors have helped your company to increase its turnover by
more than 50% compared to last year this trend will continue this year
also and the Board of Directors is confident that your company will
show more than 100% growth in finical year 2014-2015.
PUBLIC DEPOSITS:
The Company has not accepted any Fixed Deposits from the public and the
provisions of Section 58A of the Companies Act, 1956 are not applicable
to the Company
INSURANCE:
All the fixed assets and movable assets of the Company are fully
insured.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
As required by Clause 49 of the Listing Agreements with Stock
Exchanges, the Management discussion and Analysis Report is enclosed as
a part of this report.
DIRECTORS:
Shri Ch. Harinath will retire by rotation at the ensuing annual general
meeting and, being eligible, offer himself for reappointment.
Directors' responsibility statement:
The Directors' responsibility statement setting out the compliance with
the accounting and financial reporting requirements specified under
Section 217 (2AA) of the Companies Act, 1956, in respect of the
financial statements is as follows:
(i) That in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(ii) That the directors had selected such accounting policies and
applied them consistently and made judgements 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 the directors 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) The Directors have prepared annual accounts on a Going concern
basis
Auditors:
M/s. Seshachalam & Co, Chartered Accountants, Secunderabad the
Company's Auditors retire at the conclusion of the ensuing Annual
General Meeting. They have signified their willingness to accept
re-appointment and have further confirmed their eligibility U/s. 141 of
Companies Act, 2013.
The Board of Directors in accordance with the provisions of Section 139
of the Companies Act, 2013 and their rules made thereunder recommends
their appointment for a term of Five years from the conclusion of 15th
Annual General Meeting to the conclusion of 20th Annual General Meeting
subject to ratification every year at the Annual General Meeting for
the consideration of the Shareholders.
AUDIT OBSERVATIONS:
Auditor's observations are suitably explained in notes to the Accounts
and are self- explanatory.
EMPLOYEES:
The particulars of employees whose details need to be provided under
section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 not applicable to the company.
Your directors also place on record their deep sense of appreciation of
the services of the staff and workers of the Company, who have
contributed for the administration of the Company's affairs.
Code of Conduct:
The Code of Conduct has been circulated to all the members of the Board
and Senior Management and the compliance of the same has been affirmed
by them. Code of Conduct has also been placed on the website of the
Company. A declaration signed by the Managing Director is given in
Annexure.
CORPORATE GOVERNANCE AND SHAREHOLDERS INFORMATION:
Your Company has taken adequate steps to adhere to all the stipulations
laid down in Clause 49 of the Listing Agreement. A report on Corporate
Governance is included as a part of this Annual Report.
Certificate from the Practicing Company Secretary, M/s. VCSR &
Associates, Company Secretaries confirming the compliance with the
conditions of Corporate Governance as stipulated under Clause 49 of the
Listing Agreement is attached to this report.
Additional Information:
Information as per Section 217(l)(e) read with Companies (Disclosure of
particulars in the report of Board Of Directors) Rules, 1988 and
forming part of report for the year ended March 31, 2014.
Conservation of Energy, Technology absorption and Foreign Exchange
earnings and Outgo: -
A a) Conservation of energy measures taken : Not Applicable
b) Additional investments and proposals, if Not Applicable any being
implemented for the reduction of consumption of energy
c) Impact of measures at (a) and (b) Not Applicable P above for
reduction of energy consumption and consequent impact on the cost of
production of goods
B Research & Development and Technology: The Company has not setup
separate Absorption R&D department. However our technical people who
run the day-to-day operations of the Company are doing R&D work in the
fields of Wireless connectivity and Optic Fiber Technology. No extra
costs involved for the purpose of R&D.
Personnel:
The company has maintained cordial relations with the employees during
the year under review. The Company has been restructuring the human
resources according to the business Requirements of the Company.
Acknowledgement:
Your Directors take this opportunity to place on record their
appreciation and gratitude for the cooperation, assistance, guidance
and support extended by the Company's Bankers, Shareholders, customers
and various Central and State Government Agencies and Local
Authorities, Personnel at various levels of the organization.
By order of the Board
Sd/-
Place : Hyderabad S. Raghava Rao
Dated : 01.09.2014 Chairman and Managing Director |