Annual Report - Edserv Softsystem - 2008-2009

EDSERV SOFTSYSTEMS LIMITED

ANNUAL REPORT 2008-2009

DIRECTOR'S REPORT

Your Directors have pleasure in presenting their report for the year ended
31st March 2009 together with the Balance Sheet as at 31st March 2009 and
the Profit and Loss account for the year ended on that date.

Financial Highlights:

(Rupees)
Audited financial Audited financial
Statement for the Statement for the
year ended March year ended March
31st 2009 31st 2008

TOTAL INCOME 85,826,129 39,533,064
TOTAL EXPENDITURE 38,200,397 9,168,387
Profit Before Tax 47,625,732 30,364,677
Less: Provision for Income Tax:
- Current 5,883,850 3,911,460
Less: Provision for Fringe 40,674 24,333
Benefit Tax
Add (+)/Less (-) Provision for 4,789,190 1,098,536
Deferred Tax
Profit After Tax 36,912,018 25,330,348
Less: Provision for Dividend & 14,046,420 -
Dividend Distribution Tax
Balance of Profit Carried to 22,865,598 25,330,348
Balance Sheet

Dividend:

Your directors are pleased to recommend a maiden dividend of 10% (Re.1/-
per share) for the current period. The total amount of dividend is
Rs.120.06 lakhs. After approval by the shareholders at the ensuing Annual
General Meeting, the dividend will be paid in line with the applicable
regulations.

Edserv Softsystems ends with 129% premium

Edserv Softsystems settled at Rs 137.55 on BSE, a sharp premium of 129.25% to its IPO price of Rs 60.

Meanwhile, the BSE Sensex ended lower 284.53 points or 3.20% to 8607.08.

The stock debuted at Rs 55, a discount of 8.33% over the initial public offer (IPO) price. The stock hit a high of 147 and low of Rs 55 during the day.

The counter saw high volumes of 3.41 crore shares on BSE.

At current price of Rs 137.55, the stock trades at a PE multiple of 65.5, based on its year ended March 2008 EPS of Rs 2.1.

The initial public offering of Edserv Softsystem (ESL) was oversubscribed 1.30 times. The qualified institutional buyer category was subscribed 1.07 times, the non institutional investors category 3.10 times and the retail investors category 1.02 times. The issue was open between 5 February 2009 - 9 February 2009.

ESL came with an initial public offering of 39.7 lakh equity shares of Rs 10 each in the price band of Rs 55 - Rs 60. The issue price was later fixed at Rs 60.

Incorporated in 2001, Chennai-based Edserv provides integrated learning and placement solutions, customized software solutions and placement consulting to clients in the field of IT and non-IT verticals. The company has three business units, viz. ELMAQ (IT Training), Edserv (HEADS) and Lambent (Software Development).

The proceeds of the issue would be utilized mainly for establishing the HEAL Lab to develop, test, install, connect and implement the D2J (Degree to Job) content across all HEADS Offices. It will also finance the cost for establishing HEADS Offices across India.

For the year ended on March 2008, the company posted net profit of Rs 2.53 crore on net sales of Rs 3.95 core.

Grey Market - Edserv Softsystems

Edserv Softsystems 60 5 to 6

Grey Market Premium - Edserv Softsystems

Edserv Softsystems 60 4 to 5

Edserv Softsystems IPO ends with full subscription

Gets bids for 51.49 lakh shares as against 39.73 lakh shares on offer

The initial public offering of Edserv Softsystems (ESL) closed with full subscription. The issue, which was subscribed 1.30 times, got bids for 51.49 lakh shares as against 39.73 lakh shares on offer. The issue closed on 9 February 2009.

The qualified institutional buyer category was subscribed 1.07 times, the non institutional investors category (3.10 times), and the retail investors category (1.02 times).

The company came with an initial public offering of 39.7 lakh equity shares of Rs 10 each in the price band of Rs 55 - Rs 60. The company plans to raise between Rs 23.8 crore and Rs 21.8 crore through the issue. Post issue, the founder's stake would come down to 29.5% from 44.06%. The shares are proposed to be listed on the BSE and NSE.

Incorporated in 2001, Chennai-based Edserv provides integrated learning and placement solutions, customized software solutions and placement consulting to clients in the field of IT and non-IT verticals.

For the year ended on March 2008, the company posted net sales of Rs 3.94 crore with a net profit of Rs 2.53 cores.