May I help you?

IT MICROSYSTEMS (INDIA) LIMITED

contents
Chairmans letter Financial highlights Corporate information Directors report Annexure to the directors report Management discussion and analysis Corporate governance Auditors certificate Auditors report Annexure to the auditors report Finance section 2 26 27 28 31 32 36 43 44 45 46

May I help you?

EJOICE
1

"We are targeting to set up 100 hotels in a span of three years and 1,000 in a frame of 5-7 years, of which, majority of the hotels will be acquired and operated in the US."
Dear shareholders,
What started as a dream five years ago is on the threshold of becoming a reality. Let me take you through this dream. We started as a software company in the year 2000 and have today become the building block of a much bigger enterprise - an integrated hospitality company? under which we plan to offer hotels, restaurants, franchisee outlets and much more, with plans to convert our in-house centralized IT operations which cater to our own chain of hotels and restaurants into a BPO services outfit for the hospitality sector - the last leg of our service offering. We were mainly a software company till 2003, essentially developing software for various companies, with minor customisation. Some of the software developed by us include HR Pro - which streamlines the HR function by maintaining data on employees, a Payroll Management Software that helps manage payroll-related accounts, Habitat - a Society Management/Accounting Software, a custom-designed software to manage Sales and Distribution networks, a Restaurant Billing Software and MLM - a Multi-level Marketing/Network Marketing Software. Today, the Indian economy has consolidated its position as a major growth economy, second only to China. The contribution of the Indian software and IT-enabled services industry to GDP is expected to increase to 10 per cent by 2008. The trend is already evident from the performance of the industry in 2004-05. Due to favourable government policies and demand growth, the IT sector witnessed huge escalation in profitability over the previous year. The software and services sector grew by 32 per cent and exports grew by 44 per cent. Just being in the industry helped us participate in the boom. Volumes increased as also did operational efficiencies. And in 2004-05, IT Microsystems' revenues and profits increased by 44 per cent and 42 per cent, respectively. Diversification: Around the year 2003, we diversified into hotels. At that time, the hospitality sector was witnessing a lot of traction and we believed, given the outsourcing boom across sectors and in the face of changing demographics and rising income levels, this industry would be the next growth driver: International tourism receipts in 2004 reached a new record value of US$ 622 bn as expressed in absolute figures and International tourists' movements have touched an all time high nearly at 800 mn due to the increased availability of less expensive destinations across the globe.

Driven by foresight and vision, we entered the hospitality business when the company identified hotels as a fast-growing and promising business to be in. For the next three years, hotels have the potential to register an average annual growth of over 20-25%. Room rates for FY05 on an annual basis were up 21%, though the average annual growth in occupancy level was just 7%. Though, we believe, occupancy levels too are set to move up in the coming years. With the genesis being the acquisition of the Red Roof Inn in the US, (later rechristened as United Inn), we acquired properties worth $21 mn over an 18-month period. The initial success of the Red Roof Inn acquisition model was soon replicated through a series of acquisitions such as United Inn, Quality Inn, Comfort Inn, Sai Bless Inn, Graciano Cottages, Sai Sahavas, Sai Motels, Georgian Resort, Sagar Kinara and Holiday Inn (proposed). Geographic presence: A McKinsey survey revealed that twenty six per cent of the Indian respondents believe that the US will generate more sales for a company than any other country over the next five years. Based on this research, of our ambitious target to set up 100 hotels in a span of three years and 1,000 in a frame of 5-7 years, we plan to acquire and operate a majority of the hotels (mix of chains and standalones) in the US. To attain success in this segment aggressive marketing efforts are being undertaken. The initiatives undertaken would include creating a strong brand for our hotels across the geography under the United Inn brand name, embark on aggressive marketing and branding initiatives to strengthen visibility and recall for this brand and finally expand our reach and presence by adopting the franchisee model. Asset value: In future, our focus will be to acquire mid-sized franchised and non franchised properties that are operating and generating profits. We are looking to touch an asset value of $ 125 mn (25 hotels valued at 5mn each.) with a total room capacity for 3,000-4,000 by 2007. Franchising: Franchising would be a priority tool for global growth? A quick way to grow the numbers without eroding capital earmarked for investment in the must-have destinations. We intend to adopt the franchising growth model by 2006, with the help from iFranchisee

Consultants. In the first year we are targeting 25 hotels, second year 100 hotels and in the third year 250 hotels under the franchisee mode. Additional Revenues: Apart from our regular stream of revenues from the hotel business, we also plan to keep churning our portfolio. If we see that property prices have peaked in a particular region or find that a particular mid-sized hotel is not doing well, and it is more profitable to sell it, we would rather book our profit and move elsewhere. The capital gain that the company would make from the deal would then be invested in another more-profitable property. The way ahead: In the near future, we are planning to launch our multi cuisine lounge bar Area 51 in Pune in December 2005 and The Country's Best Yogurt (TCBY) in the first quarter of 2006, the first step in providing a holistic experience to our customers. With regard to TCBY and Nathan's Place we are adopting a observant approach, we first intend to test waters and see if we customise them as per the Indian palette, and then plan to expand and scale this venture in a phased manner. Our strategy for this would be, first to establish this model in a small way, understand the nuances of the business, create brand loyalty and then scale up operations. Our future plans also include setting up a tourism agency and providing BPO services to the hospitality and tourism industry. With this business model in place, we are optimistic to grow from an USD 4.02 mn company into a USD 150 mn hospitality conglomerate by the year 2008, in the process giving our dreams shape and size and taking them beyond the realm of reality.

Sudhir Moravekar Chairman, Panoramic Group

EVIEW

A taxing life, a polluted environment, a busy lifestyle. All this takes a toll on you.
So the perfect way to unwind is to step into our world. A world where we promise to re-energise the senses, rejuvenate the mind, revitalize the soul and relax the body. All this, made possible by our credo

'May I help you? '

A credo which is not just true of our service. But rather an intangible that encompasses every aspect of our hospitality business: By ensuring that you are comfortable, right from the moment you step in, By making you feel at home, even when you're miles away, By promising to bring in the local beauty, magic and flavour, right into your room, By creating an ambience which is a perfect mix of luxury and comfort. By ensuring that no compromises are made when it comes to taking care of our guests: be it a honeymoon couple, a family of six or a business group. And, be it your purpose leisure or business, making sure your stay with us is memorable. With ten hotels already under our belt and thousands of contented customers looking at us for happy moments, we look forward to taking them to the next level of leisure and comfort by providing a complete entertainment experience: an experience spanning from homely hotels to specialty restaurants, to theme-based one of its kind lounge bars, to a complete package tour, to bringing the world's cuisine at their doorstep. At IT Microsystems, we look forward to offering you a holistic and enriching experience, provided by no one else in the country.

Luxury Hotels Segments Mid-sized Hotels

Hotels

Europe New Zealand/ Australia Destinations USA India

Nathan's Place IT MICROSYSTEMS Specialty Foods TCBY

Entertainment/ Recreation

Area 51 - Pune

BPO

Tourism

May I help you?

ELAX

Cool waters. Sprawling gardens. Invigorating Yoga sessions. Almond-oil massages. Aromatherapy.
Just some of the many facilities we offer across our hotels to help you relax. The Georgian Resort, New York, USA Total number of rooms - 164 Total asset value - $ 7.5 mn Our most priced possession. Located on the banks of Lake George, this hotel stands class apart. It provides you a special facility whereby you can come by your boat and park at our private beach. Even the rooms provided to you are different. You can pick and choose from courtyard, presidential, lake view, shoreline and poolside jacuzzi suites. To keep you entertained we provide a gamut of facilities which include wedding and corporate banquet facilities, theatre performances at Georgian Dinner Theatre, lounge bars, golf and ski facilities. So come enjoy your stay with us and experience something new.

Holiday Inn, Hudson, Ohio* Total number of rooms - 239 Total asset value - $ 6.5 mn Situated at 240 Hines Hill road, Hudson, his two-storied building boasts of facilities like conference rooms, ball rooms, an indoor pool, an outdoor pool, a restaurant, lounge bar, tennis courts to name a few. Close proximity to tourist destinations makes this a real success with customers.
* propsed acquisition

United Inn, North Carolina, USA Total number of rooms - 125 Total asset value - $ 2.8 mn Strategically located at a very important exit on Interstate 40, United Inn, is placed less than a mile from the Burlington Outlet Mall and a half hour drive away from the Piedmont Triad International Airport. The hotel draws business from the travellers on the interstate, local student population, local businesses and truckers.

Comfort Inn, North Carolina, USA Total number of rooms - 126 Total asset value - $ 3.95 mn Located at 2001 Veasley Street, Greensboro, North Carolina with close propinquity to Koury Convention Center and the Coliseum, this motel surely attracts the business traveller. We make sure that attention is paid to even the minutest details. No wonder we are AAA approved.

May I help you?

ESTORE

Quality Inn, New York, USA Total number of rooms - 142 Total asset value - $ 4.25 mn Strategically located at 1308, Buckley Road, Syracuse, New York 13212, the crossroads' of the northeast, it's the apt place for a stopover. Picture this : Just 2 miles away from Carousal Mall, 6 miles from Syracuse Hancock International Airport, 8 miles from Syracuse University and 8 miles from New York state Fair grounds, making our motel a convenient tourist destination. We strive to give our guest the best quality at the most competitive rates. So come unwind with us.

Sai Bless Inn, New York, USA Total number of rooms - 135 Total asset value - $ 1.95 mn Situated at 65 Front Street, Binghamton, this hotel is targeted towards corporate executives as it is in close proximity to Bingham University, IBM and Universal Instruments. Our rooms are designed keeping your requirements in mind as we also offer business class suites, handicap and pet rooms. Our complimentary services include free stay for children under 18, car/bus parking, local calls plus voice mails, local internet access, expanded cable TV with HBO and continental breakfast.

Conference Hall
Gymnasium

Card Room Discotheque

Luxury rooms
Sai motels, New Zealand Total number of rooms - 22 Total asset value - $ 3.5 mn Placed in the heart of Auckland city on 385, Great South Road, Green lane, the facilities offered encompass tea and coffee making facilities, microwaves, refrigerators and a colour television The hotel offers a licensed bar, Sky Television and an eating space which serves mouth watering Continental and Indian food.

Swimming Pool

Go-karting

Snooker Battery operated Car

Yoga Massage centre

Video Games

Sai Sahavas , Shirdi Total number of rooms - 46 Total asset value - $ 2 mn Situated at a divine place - people from all over the world, with varied religious background come to seek blessings. The hotel is situated at close proximity to the "Sai Baba Temple" which adds an element of convenience for our guests who visit the temple. A life size idol present in our hotel premises allows you to offer your prayers the first thing in the morning and last thing before you close your eyes.

May I help you?

EVIVIFY

Graciano Cottages , Goa Total number of rooms - 22 Total asset value - $ 1 mn Located in the vicinity of the southern commercial capital Margao it is just eight kilometers, from the Margao railway station. Set amidst fifty-six acres of lush gardens, Graciano cottages are the perfect getaway for tranquility. If you are booked with us rest assured, you will hear the rhythm of the waves; experience the sand beneath your feet, church bells chiming and the palms whispering even when you're asleep. Equipped with all amenities and elegantly decorated rooms, this place enables you to enjoy the luxury of sheer silence.

Hotel Sagar Kinara, Malvan Total number of rooms - 16 Total asset value - $ 0.75 mn Placed on the beach at Somwar Peth, Malvan City, the hotel is opposite the famous Sindhudurg Fort. It acquires a formidable historic connotation and significance and is the only family hotel boasting 16 spacious rooms in Malvan City which are equipped with full-fledged amenities. The food lovers can enjoy a multi-cuisine meal. You can take your pick from delicacies in Moghlai, Punjabi, South Indian and Chinese besides, special Maharastrian dishes in Malvani style.
10

The experience does not end here. Whether it your child's birthday celebrations or looking at capturing the magical moments of your wedding anniversary or simply catching with friends at a kitty party, we ensure you do it in the most special way. Be it weddings, corporate meetings, training sessions, church group meetings, parties, student events, commercial shows, bridal shows, automotive events, union and corporate annual meets, all are welcome here.

May I help you?

EJUVENATE

11

12

100 plus hotels. More grand, more lavish. Exclusive facilities. Exemplary customer service.
Hotels are flourishing business today due to the boom in tourism which can be gauged from the following - world wide tourism results for 2005 show a continuation of the overall positive trend of 2004, with international tourist arrivals growing on average by 8 per cent in the first four months, according to the WTO World Tourism Barometer (June edition). In-bound tourism: Over the last decade, the hospitality industry has been booming. Tourist arrivals in India have been growing at the rate of 10 per cent sequentially. In the last one year the number of tourist arrivals in India soared from 550 mn to 763 mn. And looking at trends, over the last two quarters, one can say that 2006 would further accelerate this growth. Today, with $ 4.81 bn foreign exchange earnings, tourism is the third largest foreign exchange earner in the country. Condneste Traveler, the bible of tourism, reports India as among the five most favored tourist destinations in the world. This explains our presence in India. Out-bound tourism: Similarly, with the outsourcing boom, the number of Indians travelling overseas, especially the US, has also increased. In 2005, as many as 153 mn Indians/Asians travelled to the US. International tourists' movements have touched an all time high nearly at 800 mn and international tourism receipts reached a new record value of US$ 622 bn in 2004. With our understanding of Indian culture and cuisine, we feel we are best placed to capitalise on this opportunity. Occupancy: The current industry growth rate in terms of occupancies is 6%. Indian properties are growing at 10%. The occupancy level of hotels ranges from 50% to 100% depending on the season, events and weather. To capitalise on the expected surge in the hospitality space, we intend to ramp up our operations by moving from five hotels in the US to acquiring 100 hotels in a three-year time-frame which will be further scaled up to 1,000 hotels over the next seven years. All of which will be primarily located in the US. Our US strategy: The company's US-focus is based on the fact that today, USA is one of the biggest markets in the world whether it is Pharmaceuticals, InfoTech, Finance or Education. Almost every Indian company with an aspiration to be global is looking at establishing a presence in this market. Further, according to MKG Consulting Report, the American economy hotels have emerged as the most dynamic sector, with the North American market recording the strongest growth, particularly in the budget hotels sector. With properties in the US appreciating at a rapid pace, amply reflected in the fact that properties acquired by the company at a valuation of US$ 2.5 mn over the last two years, are currently worth three times their acquisition price, further vindicates our US-centric presence and strategy. Once we establish and consolidate ourselves in the US, we plan to foray and expand into other geographies. Lastly, upto 100 per cent availability of finance for hotel acquisitions coupled with clean deals and efficient regulations makes US a preferred geography to operate in. Our India strategy: Indian hospitality sector is booming. The glum

May I help you?

EFRESH

13

14

look of 2001 has disappeared. Occupancies have improved tremendously; they are touching an average of 85 per cent in the peak season and dipping just by 10 percent in the lean season. India's share of world tourist arrivals is 2.64 mn translating into $ 3.2 bn in world tourism receipts. Today, India's growing recognition as an exciting place to visit following the 'Incredible India' campaign has helped boost the country's image as a leisure destination. With India also emerging as the fastest growing economy, the business travel segment is growing at a phenomenal rate and is the most important source of revenue and profitability for the hotel industry in India. The WTTC has identified India as one of the world's foremost tourist growth centres in the coming decade. According to WTTC, after Turkey, India is expected to achieve the fastest rate of growth at 9.7 % per annum over the next ten years. So, in order to encash on these opportunities we are planning to establish our presence is India as well. Our acquisition strategy: Our acquisitions will comprise mid-sized hotels (100-120 rooms), valued at $4-5 mn per hotel with another $200,000 to $500,000 allocated for renovation and interior decoration. In addition, we plan to acquire a chain of hotels rather than standalone properties as the former will lend us a stronger brand recall, faster and deeper penetration and rationalise marketing costs incurred to raise visibility for our hotels. Rationale behind acquisitions: The Company's core rationale for its inorganic growth strategy is based on the following ground realities: Construction of properties involves a high gestation period, wherein it can take anywhere between three to four years to construct and commence operations whereas with acquisitions one can start generating revenues immediately.

Besides, construction blocks valuable resources: time, money and manpower - right from acquiring land, red tapism, bureaucracy and corruption, to seeing the project through from inception to completion. The way ahead: At the close of 2005-06, we expect to increase the number of our properties from 5 to 10 in the US, with the assets valued at US $ 65-70 mn. In future we intend to have a presence in both the mid-sized (asset value in the range of US $ 3-4 mn) and luxury hotels segment (US $ 5 mn+ asset value). From our initial foray into the mid-sized segment, we have already moved up the value chain and are in the final stages of acquiring a luxury hotel Holiday Inn, Hudson, Ohio - which is targeted at the upper middle class (a rapidly growing customer segment). With unique facilities and more comforts, this luxury hotel is likely to deliver higher margins and improved profitability. Post acquisition, we intend to focus on hotels with an asset value of US $ 5 mn + (compared to our earlier hotels which were in the range of US $ 3-4 mn). Funding: The funds for expansion would be raised through GDR and ADR, IPOs of subsidiaries in the US, private equity, loans and internal accruals. The EEFC funds generated from the company's InfoTech business have also been invested in hotels. The debt equity ratio post expansion would most likely be 70:30 which makes eminent sense in today's low-interest rate scenario. With acquisition of 100 properties by 2008 with an average price per property priced at $ 5 mn, we expect to have a total asset value of 500 mn. With annual turnover from these properties pegged at one-third of the asset value, we are optimistic of reporting revenues worth $ 150-175 mn and profitability of 10 per cent by end, 2008.

May I help you?

ENERGISE

15

Brand building & Franchising - a scalable and sustainable growth model

A smiling receptionist. Luxurious rooms. Consistently outstanding cuisine. Some of the things you will always remember about our hotels. That's the magic of a brand. Today, it's the era of emotional branding. Greet customers well, exchange a few pleasantries, custom-make a drink exactly to their taste, whip up an incomparable entre or offer them a complimentary wine, and they will be your customers for life. Who does not feel special when someone in a hotel welcomes you by your name! In our experience, branding represents one of the fastest ways to spread presence and grow in this sector. With no visible Indian brand in the US, branding our hotels will be a path breaking move in the hospitality space, which once established, will allow us to adopt the franchising model to further expand our presence in newer states across the US and operate more properties in any state: a sustainable and scaleable growth model. To create a strong brand in the hospitality segment, we intend to embark on the following initiatives: Appoint experienced marketing managers at each of our

16

locations, who will be responsible for understanding from a customer's perspective the critical parameters (quality, service, interiors, decors, cuisine, and reception) that create the right impression about the hotel. Study customer responses at one of our hotels in the US 'United Inn'. Based on the feedback, this brand name and experience will be further extended to other existing and future hotels which we plan to acquire. We have selected "United Inn" as the mother brand name as it connects well with customers in the US thereby leading to a positive response towards our hotels. Undertake renovations and improvements to give it a modern and contemporary look, an effort aimed at attracting the younger generation. Appoint franchisees, who will impart a local flavour and culture to the hotels - right from the ambience, to the cuisine, to the artifacts, so that guests can take back with them an experience completely unique to that destination. Lastly, with a strong brand in place, we expect to franchise 25 hotels in the first year, 100 in the second year and more than double that number to 250 in the third year. All of this will help consolidate our position in this business and help us emerge as one of the largest mid-sized Indian hotel brands in the US.

May I help you?

ESUSCITATE

17

A one-of-its-kind revolving multi cuisine lounge bar - the Area 51*, has been designed especially to give you an out-of-the-world experience.
Roughly 13.4 mn working hours were lost in 2003 due to stress, depression or anxiety compared to 6.5 mn working hours in 1995. Enter Area

51 The perfect getaway for the entire family. To revitalise your life, the proposed lounge bar, Area 51 will be
.

shaped like a space ship, with every detail looked into - right from its interiors to the sound and lights, to the ambience, ensuring that customers reminisce the evening even after its long over. Expected to be launched in December 2005 in Pune, we believe that while, it would prove a big draw for children and families, the Area 51 is being targeted at premium customers belonging to the age group of 18-40. With an increase in urban population, income and aspiration levels, and the desire to experiment with different places, this restaurant is expected to emerge as a new and 'happening' destination.
* Although currently this project is under other group company, IT Microsystems expects to acquire this project in the future.

18

May I help you?

EVITALISE

19

20

Hearty helpings. Delicious flavours. Lip-smacking recipes.

India is a multi-cuisine country. A potpourri of different ethnicities and cultures. So whether it's Italian or Chinese or Thai or American fast food, there's always room for more on the Indian palate. With American culture seeping into Indian lifestyle, thanks to the numerous BPOs that have come up, fast food is fast gaining popularity. To cater to the growing market for healthy fast food, IT Microsystems has signed a Memorandum of Understanding (MOU) and also has plans to tip up with Nathan's Place, a popular fast food outlet in the US. Nathan's Place will offer high-quality fast food: food that is made from the best ingredients, food that is made by people having longstanding expertise in this field and food that has brand recall in all parts of the world. These include: Kenny Rogers Roasters - the world's greatest wood-fire roasted chicken. Miami's Sub Grill - high quality food in fun and casual atmosphere. Arthur Treacher's - fish and chips. To bring this food into the country, IT Microsystems has already signed a Memorandum of Understanding (MOU) with Nathan's Place. This unique combination of extraordinary cuisine and unmatched service is what will set Nathan's Place apart from every other dining experience. Specialty Foods The ideal way to conclude a meal is to have something sweet. IT Microsystems has come up with the perfect solution - The Country's Best Yogurt (TCBY), for all sweet lovers which at the same time keep a tight check on calories, thus appealing to the health conscious. Already available in 70 countries, it offers frozen yogurt in lip smacking flavours. With its manufacturing unit in place at Silvassa, TCBY shall be launched in first quarter of 2006. Having acquired the master franchising rights for TCBY India, the first store shall be opened in Mumbai where it will be strategically located opposite the popular Sterling theatre in Mumbai. Based on the outcome of the first store, the company will decide on its future strategy. The future strategy for TCBY comprises: Localisation of tastes and flavours as per the Indian taste. Setting up of 50 outlets in the country within a span of two years. Setting up franchisees across India - strong focus in Maharashtra and Gujarat. Strategic tie-ups with gymnasiums, dieticians, hospitals and doctors, as they represent the best way to reach out to health conscious population. And aggressive brand-building through intensive marketing efforts, which would encompass advertising and promotional campaigns.

Ensuring that you take home with you a huge helping of sweet memories!

May I help you?

ELISH

21

22

Statue of Liberty. Niagara Falls. Universal Studios. Disneyland. We promise to show you all of this and much more.
Tourism is a booming business. People today are more adventurous they want to explore the world. Today's working population comprises of the urban youth who swear by the motto "work hard and party harder". They want to indulge in water sports, trekking, late night shopping, eating out, celebrating or just a getaway from the polluted environment. And thanks to the increase in purchasing power, today people have more income at their disposal. Reduction in airline fares and loans for taking off on a holiday have also led to an overall increase in overseas travel. At IT Microsystems, we plan to custom-make the perfect holiday for you by offering a one-stop solution in tourism: right from arranging visas, to organising tickets, to booking hotels and giving you the special treatment that you always wanted. Not only do we promise to simplify your life, but we intend to take care of all your holiday needs at a cost that is well within your budget, as there will be no intermediaries. Our 1000 + hotels in the long term will serve as the ideal destinations in the itinerary with our tie-ups with prominent travel and tourism agencies further increasing our basket of service offerings by helping you travel across more destinations.

May I help you?

EVIVE

23

24

Strong MIS. Streamlined processes. Efficient operations.

The main objective of setting up a BPO centre in India is handling specific processes of our international hotels such as maintaining books of accounts, reconciliation, generating MIS for the top management, cost-analysis, keeping a track on out-bound and inbound invoices etc. Initially this tourism BPO initiative would function as a 'cost-control' centre where all processes of our international hotels would be done at the BPO centre, which would help reducing processing and accounting costs to a significant extent. Currently, we have employed senior accountants and account assistants to carry out this initiative and have installed MARS 2000 software for this purpose. The benefits that would accrue to the company by setting up the BPO centre are discussed briefly: Significant cost savings: The monthly expense incurred by the company for hiring an accountant in the US is approximately US $ 5,000 per month. The model that the company plans to put in place involves having centralised administrative facilities, including accounting and booking. Much like a BPO, the company's back-office functions will be handled out of India, wherein accountants in India would handle its US operations or its operations anywhere else in the world out of the Indian back office. Further, it would also substantially reduce its skilled manpower requirements and lead to better utilisation of manpower. Streamlining processes: For any hotel to function effectively, a strong MIS system and well-defined processes are absolutely critical to keep a tab on inventory levels, pilferage of stock, effective money collection etc. Having common software at the BPO centres to handle accounts of all international hotels, would result in effective MIS generation and streamlining processes of critical functions. Future source of revenue generation: At the initial stage, this BPO centre would function as a cost-controlling initiative rather than a revenue generating function. But down the line, once expertise is gained and our own software is developed, we intend to sell such synchronised MIS and software packages to other hotels. Our franchisee network would serve as another source of revenue generation as we undertake their accounting work as well at our BPO centre. Thus, with a strong MIS system in place, it would enable us to manage information systems and compute resources proficiently.

May I help you?

ENEW

25

Financials Highlights

(Rs. '000) PARTICULARS AUDITED MAR-01 Paid up Share Capital Reserves (excluding revaluation reserve) Total Revenues PBDIT PBIT PBT PAT EPS 50,100 8,140 48,615 32,082 31,585 31,585 31,455 6.28 AUDITED MAR-02 50,100 41,160 87,716 59,540 58,206 58,111 58,070 5.80 AUDITED MAR-03 50,100 73,729 111,635 62,939 61,058 60,769 60,730 6.06 AUDITED MAR-04 50,100 189,062 127,463 48,941 46,179 45,969 45,969 3.55 AUDITED MAR-05 64,788 268,825 183,479 67,927 65,267 65,174 65,174 5.03

183.48

127.47

48,94

67,93

45.97

65,17

2004

2005

2004

2005

2004

2005

2004

3.55

2005

Total revenues (Rs mn)

26

PBDIT (Rs mn)

PAT (Rs mn)

EPS (Rs)

5.03

Corporate Information
BOARD OF DIRECTORS Mrs. Vidya Moravekar Mr. Arun Tari Mr. Siddhartha Moravekar Mr. Bhupendra Patel Mr. Vilas Mitbawkar Mr. Mehul Parekh Ms. Hemlatha Sawant Chairperson & Managing Director Wholetime Director Director Director Director Director Director

COMMITTEES OF THE BOARD Audit Committee Parekh M. Sawant H. Mitbawkar V. Shah K. Chairman Member Member Secretary Remuneration Committee Parekh M. Sawant H. Mitbawkar V. Shah K. Chairman Member Member Secretary Investors Grievance Committee Parekh M. Moravekar S. Tari A. Shah K. Chairman Member Member Compliance officer

COMPANY SECRETARY Mr. Kiranchandra Shah BRANCHES USA, New Zealand, United Arab Emirates BANKERS ABN AMRO Bank ICICI Bank Ltd. HDFC Bank Bank of Maharashtra REGISTRAR & SHARE TRANSFER AGENTS M/s. Sharex Dynamic (India) Private Ltd. 17/B, Dena Bank Building, 2nd Floor, Horniman Circle, Fort, Mumbai 400 001.

AUDITORS M/s. H. H. Topiwala & Co. Chartered Accountants STOCK EXCHANGE(S) The Bombay Stock Exchange REGISTERED OFFICE 114, Kalyandas Udyog Bhavan, Near Century Bazaar, Prabhadevi, Mumbai 400 025 Maharashtra ANNUAL GENERAL MEETING The 30th September 2005 at 11.30 hrs. at 114, Kalyandas Udyog Bhavan, Near Century Bazaar, Prabhadevi, Mumbai 400 025.
27