sriven multi tech ltd share price Directors report
ANNUAL REPORT 2000-2001
SRIVEN MULTI-TECH LIMITED
TO THE MEMBERS,
Your directors are pleased to present their report on the business and
operations of your company for the year ended 30th June 2000.
Your company could start commercial production during the year, and
achieved a turnover of Rs. 368 Lakhs. The net profit earned by the company
was 15.95 Lakhs. The company "through this year" was in the process of
expanding its activity base and building of infrastructure and established
business relations in Toronto, UAE, Sydney, and USA. Presently your company
has got excellent infrastructure with state of the art development and
production facilities supported by the latest software and excellent
AMALGAMATION WITH SRIVEN INFOTECH LIMITED
As you are aware your company had proposed amalgamation of Sriven Infotech
Limited with Sriven Multi-tech Limited. However, your promoters felt that
their post merger holding in the company would go up considerably and with
an intention to secure the support of some Fll Shareholders the scheme of
Amalgamation was dropped at the meeting of the shareholders. However, your
company has acquired the assets of SIL without any cash outflow or
allotment of shares.
THE YEAR THAT WAS. .
Station X Entertainment Inc
Sriven Multi-Tech caters to the 3-D and Visual Effects needs of the
worldwide entertainment industry through its subsidiary in the USA, Station
X Studios Entertainment, Inc. Sriven holds 51 % stake in Station X
Station Entertainment, formerly Station X Studios, is one of the West
Coasts leading creators of 3D computer generated imagery for commercials,
television and feature films. The artists at Station X have to their
credit, path-breaking projects such as Titanic and Dodge in addition to
work on various international commercials such as Budweiser. The team has
also provided design solutions to Boeing and Microsoft, Walt Disney, Warner
Bros, Columbia Tri-Star, Sony Pictures Imageworks, etc. it boasts of a
cadre of 22 top-tier visual effects artists and production personnel who
previously worked together at industry powerhouse, Digital Domain. Some of
Station Xs marquee commercial and entertainment clients have included
BBDO/ Detroit ("Dodge"), Illuminations/Tokyo ("Chevy Blazer"), Turner
Productions ("The Hunley") ABC TV ("Tom Clancys Nefforce"), Walt Disney
Productions ("My Favorite Martian") and Sony Pictures Imageworks (soon-to-
be-released feature). The companys award-winning digital effects team work
from a suite of 110 NT workstations as well as a newly purchased Discreet
Powersurfer Interactive India Limited
Sriven has formed a (49:51) joint venture company called Powersurfer
Interactive India Limited, with BSES Telecom (Mumbai) - a subsidiary of
BSES Ltd., which supplies power to 2 million households in Mumbai. The
joint venture has undertaken a massive broadband infrastructure project and
is now setting up 100 E-marts in Mumbai connected through fiber-optic
cables. Srivens role in this JV is to create a multimedia portal that will
appear as the default on the systems of the e-marts and also to install
This company shall primarily focus on
(a) Setting up a network of touch-screen kiosk based information centers
(E-Marts) across the city of Mumbai, and
(b) Create a multilingual, multimedia portal with emphasis on local content
This project could mark the beginning of what may aptly be called, the
"Mumbai Wide Web". Realizing the fact that in India, the proportion of
people who have access to technology is very low, the concept of public
kiosks shall ensure that more people can gain access to the wonders of
technology and information. (India has a low PC penetration of around 5
million for a population of 1 billion.). The project will also serve
utility services like BSES bill payment, Railway ticketing, Buying music,
Online Gamin, Video on Demand etc.
Sriven has developed 18GB of content so far for the project and the initial
5 centers have been tested out. All the 50 centers will be operational by
UNITED ARAB EMIRATES (UAE)
Your Company is going to partner with Etisalat in UAE in creating exclusive
multimedia portal on their Broad-band network on a revenue sharing basis.
Srivens clientele in Multimedia includes Jet Airways, Bennett & Coleman &
Co., ZEE Telefilms Limited, Andhra Bank. Department of Tourism, Govt. of
Andhra Pradesh. presentations and walkthroughs for the Dandamudi enclave,
Maha Cement, Coats India.etc.
Rail Information Kiosks RAPIDS (Railway Passenger Information Display
With over 11 million passengers travelling everyday on over 62,000 routes,
it is no surprise that the queues at the reservation counters are unending
and the enquiry counters overflowing. To make the process of train inquiry
faster and more efficient, Sriven Multi-Tech has, in association with the
Indian Railways, created a touch screen based passenger information kiosk.
The RAPIDS kiosks let passengers make enquiries on the status of their
tickets, seat availability on trains travelling between various sectors and
the fare between any two points. Using a very simple and intuitive
interface, the kiosks stand elegantly at the reservation complex and are
thronged by enthusiastic passengers who have found the whole system so easy
to use without any assistance at all. In the initial phase, 31 Kiosks have
been installed at Railway reservation counters in Chennai, Bangalore,
Calcutta, Pune and Secundrabad Mumbai, etc. It is proposed to install
kiosks at various public places and Railway platforms while extending its
applicability. In the pipeline are applications that actually allow
passengers to purchase tickets directly from these kiosks by using a Credit
Card, a Debit Card or a Smart Card.
This most comprehensive and unique interactive, multimedia Kiosk
application software developed by us. This was done for the Dept. of AP
tourism. These Touch screen kiosks are running all over Hyderabad. It
contains a lot of details about the Twin Cities of Hyderabad and
Secunderabad both from a Tourists perspective as well as for the average
citizen This project received wide spread mileage and was covered by all
major dailies and news channels. Thrilled at the creative elements and
overwhelming success of Touch Me!, AP Tourism has shown its interest in the
outright purchase of our solution.
Kiosks in the Indian Parliament House
Kiosks have been deployed at both the houses of Indian Parliament - the
Rajya Sabha (Upper House) and the Lok Sabha (Lower House). The touch screen
kiosks act as electronic bulletin boards that let the MPs easily go
through the days proceedings, past bulletins, members directories,
debates, etc. The content itself is Internet based and is delivered to a
touch-based browsing interface that allows on to access hundreds of HTML
pages with ease.
Oz-Power Kiosks in Australia
Sriven has tied up with Athletics Australia to develop content and deploy
kiosks that aim at reaching out to tourists and sport lovers. The kiosks
take one through a guide of Sydney and New South Wales and showcase the
tourism aspects to visitors. An elaborate Athletics section deals with
various games, the Book of Rules and a gallery of Australian athletes. With
breath taking graphics, racy videos and amazing Flash animation, the kiosks
are planned to be deployed at hotel lobbies, malls and other public places
very soon. The Oz-project provides an excellent potential for advertisement
and co-promotion with the tourism and sports industry in Australia.
Information Kiosks on non-conventional energy sources,
Sriven is installing touch screen based multimedia kiosks for the ministry
of Non- Conventional Energy Sources, across various Indian cities. These
kiosks will be used for popularizing the concept of non-conventional energy
sources in India.
Empower - A Citizen/Parliamentarian Interactivity Kiosk
The Union Minister of State for Urban Development, Sri Bandaru Dattatreya
has a unique way of keeping in touch with the people in his constituency -
through a touch screen kiosk developed by Sriven! This kiosk lets people
record their comments and grievances through our Voicemail engine and sends
it to the MPs office. It also lets people explore unknown facts about the
M go through videos that reflect him as a person, a parliamentarian and a
minister. The minister himself comes up on screen and addresses people on
various issues. The entire kiosk has been developed in the local language
that the people understand, Telugu. The project has been hailed as a unique
endeavor to empower the common man through information technology to keep
in touch with his elected representative.
STRENGTHS AND CONTRIBUTIONS OF SRIVEN
Sriven can boast of the excellent team of talented, creative and
hardworking employees in its various divisions, who have been picked up
from reputed institutions like NID. This team has proved their potential on
various occasions and the works of one of the animation team members Mr.
Prosenjit Ganguly have been recognised at various international forums. His
work A Cage Study, (Producer: National Institute of Design) has been
nominated to the Panda Award, Wildscreen festival 2000, UK and he has been
Invited for Japan Wildlife festival 2001, Japan. His yet another work Do
Flowers Fly? (Producer: C-DIT, Trivandrum) has been screened at Mumbai
Intl Film Festival, 2000, South Asia 99 (Awarded Special Mention of the
Jury) and Roshd Film Festival, 2000, Iran (Award for best Script,
Inscription of Honour)
Sriven has once again participated in the 7th HYDERABAD CHILDREN FILM
FESTIVAL-2000, where several animation films were screened in the twin
cities. Many children viewed these films and almost every one of them
appreciated the works done and showed keen interest in the actual technique
of making the animation. The Animation team of Sriven has participated
actively in a unique two-day workshop for young school children organized
by the Children Film society of A.P at Jawahar Bal Bhavan, Public Garden on
the 15th and 16th of November 2000. At the workshop children have been
taught the techniques involved in the making of animation and your company
was awarded a "Certificate of Appreciation" by the Honorable Home Minister,
Government of Andhra Pradesh.
Sriven, has been presented the "JUDGES CHOICE AWARD" by "CHIP MAG" for the
"BEST CORPORATE PRESENTATION" made for "Webtoons Media"
THE BUSINESS MODEL & STRATEGY
Sriven has grown & matured in terms of its technical skill levels. Sriven
envisages being in a position of strength in the next two to three years in
the fields of animation and Converging technologies. The objective
therefore is to propel the company into a prominent market position by
intensifying and accelerating marketing and sales activities, services
expansion, distribution and customer service. In order to sustain this
growth, Sriven plans to invest more into the development of infrastructure,
hire highly trained professionals, and diversity into related fields of
expertise in an effort to globally compete with similar businesses.
An industry analysis says broadband is changing the way we consume media.
In the coming years the front end of all software is going to be broadband
enabled. Multimedia and Animation are going to play a crucial role to take
care of this business covergence.
In the animation industry, strategically, Sriven looks at partnering with
renowned studios in US for co-production deals leveraging its 2D animation
expertise through Webtoons. Because co-production not only increases the
brand equity of the company but also has a potential to generate revenue
for a relatively longer period (through direct commercialization of the
serials and merchandising of the characters through various platforms over
a period of time). Sriven looks at bringing in the quality and expertise of
Station X into the Indian Entertainment industry,which has been growing at
more than 25% per annum over the past last two years.
To establish itself as a rich media, eService and content company of choice
Sriven has taken strategic steps to develop broadband compatible multimedia
content globally. While leveraging its expertise through its Joint Venture
Company, Powersurfer, Sriven is partnering with ETISALAT in UAE to develop
rich media, broadband content. Strategically, through this relationship
Sriven looks at establishing its brand equity as a premium multimedia
content provider not only in the GCC but also in the neighboring African
countries, because UAE is the fastest growing technological superpower in
GCC and ETISALAT is technologically advanced and the role model for
communication for rest of the gulf countries and neighboring African
As a pioneer of Kiosk technology in India, Sriven now looks at promoting
eCommerce and bCommerce through its proprietary kiosk engines. With this
vision Sriven has developed BrowsEasy, a multimedia kiosk engine for secure
payment mechanisms and eService, BrowsEasy is going. to hit the market by
REPLY TO AUDITORS REPORT
Attention of the members is invited to Para 2 (e) of the Auditors Report
wherein Auditors have reported the pending of legal formalities for the
take over of assets of Sriven Infotech Limited. Your company has entered
into a Memorandum of Understanding with Sriven Infotech Limited on
30.6.2000. The assets have been acquired at book values along with the
liabilities attached to them. The physical possession of the assets has
been taken over by the company and other formalities, like approval from
the creditors is pending. Your company has already approached Indian
Overseas Bank. and the necessarY consent will be received shortly.
During the year the Board of Directors have appointed Mr. Shivaprakasam
Shivakumar, Mr. Ch. Naga Kumar and Mr. Satyanarayana Vempati as Additional
Directors under Section 260 of the Companies Act, 1956. Mr. Satyanarayana
Vempati was appointed as Executive Director and Chief Technical Officer
w.e.f 09.09.2000 to hold office for a period of one year. His appointment
was made without any remuneration. However he is vacating his office as
Director at the ensuing Annual General Meeting.
The Company has received a notice from a member under Section 257 of the
Companies act, 1956 signifying his intention to propose the appointment of
Mr. Shivaprakasam Shivakumar as Director under Section 257 of the Act.
Mrs V Lalita and Mr. R V Chakrapani Directors retire by rotation and being
eligible, offer themselves for re-appointment.
DEMATERIALISATION OF YOUR SHARES
The members are aware that SEBI has vide its notification brought your
script under compulsory trading in Demat under rolling settlement w.e.f 08h
May, 2000. Your company could achieve dematerilisation of 72,28,000 shares
(73% of the paid- up capital). Your Directors take this opportunity to once
again request the remaining shareholders to send their shares to the
company for Dematerialisation.
Your company has not accepted any fixed deposits from the public during the
year under consideration.
The auditors M/s Susaria & Company, Chartered Accountants retire at the
forthcoming Annual General Meeting. The company has received a notice Under
Section 225 (1) from the members proposing the appointment of M/s Deloitte
Haskins & Sells, Chartered Accountants as auditors in place of the retiring
auditors. You are requested to appoint the auditors of the company to hold
office from the conclusion of the ensuing Annual General Meeting till the
conclusion of the next Annual General Meeting and to fix their
PARTICULARS OF EMPLOYEES
There is no employee drawing remuneration in excess of the limits
prescribed under Section 217 (2A) of the companies Act,1956 read with
Companies (Particulars of Employee Rules, 1975 as amended.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
The particulars as prescribed under sub-section (1) (e) 21 7 of the
Companies Act, 1956 read with the companies (Disclosure of Particulars in
Report of Board of Directors) Rules, 1988, are set out in the annexure,
which forms part of this report.
Your Directors have great pleasure in extending their gratitude to the
valuable customers, investors, Bankers, Flls, MF, Central and State
Government officers and agencies, STPI, DoT, Staff and Officers of L& T
Info City Ltd and other non-Government agencies for their continued support
and confidence in our company and acknowledge the valuable contribution
made by the employees.
For and on Behalf of the Board of Directors
Place: Hyderabad V VENKATA SUBRAHMANYAM
Date : 01.12.2000 CHAIRMAN & MANAGING DIRECTOR
ANNEXURE TO DIRECTORS REPORT.
A) Conservation of Energy
The operations of your company are not energy intensive. However the
company is taking steps to reduce cost of power by use of gensets. As
energy costs form a very mall part of total costs, its impact on costs is
not material and measured.
B) Technology absorption
Your ,ompany did not invest in any R&D activity during the year under
However, it uses the latest software in the field related to its
C) Foreign exchange earnings and outgo.
Your ompany is continuing to explore new markets for exports and is
generate good revenues for exports in future.
(Rs. in Lacs)
Particulars 1999-2000 1998-99
Foreign exchange earnings 189.52 --
Foreign exchange outgo 300.12 --
For and on Behalf of the Board of Directors
Place: Hyderabad V VENKATA SUBRAHMANYAPA
Date : 01.12.200 CHAIRMAN & MANAGING DIRECTOR