aricent technologies holdings ltd share price Management discussions

ARICENT TECHNOLOGIES (HOLDING) LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS Operations Review: Total income increased to Rs.12,982 million from Rs.12,845 million in the previous year. The operating profit of the Company for the year ended March 31, 2010 was Rs.3,087 million as compared to Rs.3,000 million inthe previous year, The profit after tax for the year ended March 31, 2010 was Rs.2,364 million as compared to Rs.153 million in the previous year. Revenue Mix: Particulars Year ended March Year ended March 31, 2010 31, 2009 Services 98% 90% Products 2% 10% Revenue Mix: Regionwise: Region Year ended March Year ended March 31, 2010 31, 2009 Americas 19% 27% Europe 49% 43% Rest of the world 29% 27% Domestic 3% 3% Business Review: Your Company is a global innovation, technology and services company focused exclusively on communications. Your Company offers its customers a fundamentally unique combination of attributes. These include an exclusive focus on the communications industry, leading innovation capabilities, and a broad set of products, technology and services available via a scalable global delivery model. Quality: During the year, your company continued to strengthen its Quality Management Systems and now meets the requirements of the new ISO 9001: 08 and Release 5 of TL9000 standards. This, in turn, helps us deliver better value to our customers. Your company continued to strengthen the Global Delivery Model by leveraging on the common Quality Management System and Best practices implemented across multiple centers. All these initiatives have helped your Company to exceed the stringent Customer Satisfaction Index targets. Redemption of Preference Share Capital: During the year under review, your Company redeemed 145,500,000 and 69,900,000 redeemable optionally convertible non-cumulative 0.001% preference shares (Preference Shares) of Rs. 10/- each at par on July 17, 2009 and November 17, 2009 respectively. As a result, paid up preference share capital of the Company decreased from Rs. 12,059.03 million to Rs.9,905.03 million. However, post redemption 215,400,000 Preference Shares of face value of Rs. 10/- each of the Company were extinguished. The paid up Preference Share capital comprises 990,503,799 Preference Shares of Rs. 10/- each as on March 31, 2010 as compared to 1205,903,799 Preference Shares of Rs. 10/- each as on March 31, 2009. Your Company redeemed 115,700,000 Preference Shares of Rs 10/- each at par on April 30, 2010 and post redemption 115,700,000 Preference Shares of face value of Rs 10/- each of the Company were extinguished. Reduction of Capital: Your Company has reduced its capital in accordance with the provisions of Section 100 to 103 of the Companies Act, 1956 to write down goodwill that arose during restructuring in the past on amalgamation of the subsidiaries. The above scheme of reduction of capital was approved by you in an extra ordinary general meeting held on October 13, 2009 and approved by the Honourable High Court of Delhi, New Delhi during the year, The order of the Honourable High Court has been registered by Registrar of Companies on January 21, 2010. Accordingly, the Capital Redemption Reserve Account and Securities Premium Account of the Company have been reduced by Rs.3,587,630,000 and Rs. 8,889,333,558 respectively and the total amount of Rs. 12,476,963,558 has been utilized for writing down Goodwill.