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The year ended 31 March 2013 has been another extremely difficult and disappointing year for Calsoft and its shareholders.
The Company has managed to stem the huge losses incurred in year ended 2012 & 2011 of (77.55) Crores and Rs. (19.14) Crores respectively. The current loss for the year is only Rs. (2.75) Crores . Current turnover is Rs. 51.73 Crores compared with year ended 2012 of Rs. 79.90 Crores. Most of the reduction in turnover is attributable to the disposal of businesses, a process initiated by the previous management.
Several years ago the company purchased, and mortgaged the current office building known as RVC Towers in Chennai. Since then a lot of new office space has come onto the Chennai property market, much of which remains vacant. The downward pressure on rents; together with high interest rates and capital repayments have put a strain on the groups cash flows. The building remains a net outflow of funds and the trading conditions are still very poor. Our financial position is still very weak. During the year many of the companies' outstanding issues and liabilities have been resolved and settled, many achieving significant discounts. These settlements are a pre requisite to the restructuring that we are trying to achieve. In addition negotiations to sell the Inatech business are well underway and we are optimistic that a sale can be achieved.
We have also disposed of our investment in Impelsys, at a profit of Rs. 750,000 over its book value and disposed of a promissory note owed by the owners of Epay, at its face value of Rs.400,000, despite the amount only becoming payable after two years. These sales have provided much of the cash to allow us to keep the company operating whilst we look for a partner with a viable business and promising future who can benefit from the company's good reputation and Stock Exchange listing.
Once again, I would like to thank the shareholders for their support over the past and I would like to assure you that your Board are doing all they can to ensure the survival of the Company and an improvement in its value.
Bhavesh Rameshlal Chauhan
Managing Director & CEO