Rediff Logo Infotech Banner Ads Find/Feedback/Site Index
June 10, 1997


Infosys goes hi-tech at annual general meeting

Software major Infosys Technologies on Saturday went hi-tech at its annual general meeting by establishing connectivity with its US firm in Fremont, California, and with shareholders who assembled at the Videsh Sanchar Nigam Limited, Bombay, to witness the event live.

Shareholders had the benefit of an across-the-seas presentation by Phaneesh Murthy, vice-president and head (worldwide sales) of Infosys in Fremont. To a thumping ovation from shareholders, Murthy highlighted the company's strong presence in the US and the plans being undertaken.

The company also continued with its tradition of having a person other than the CMD chairing the meeting. This time around, the mantle fell on Dinesh K, director.

The company has increased its authorised share capital to Rs 200 million comprising 20 million equity shares of Rs 10 each. Shareholder unanimously passed a resolution on this. The company had made a proposal to increase its share capital following its decision to issue 1:1 bonus shares.

The meeting also decided to capitalise a sum not exceeding Rs 7.49 million from its general reserve account to provide for the issue and allotment of bonus shares for warrants held by employees and trustee.

The company has decided to elevate Additional Director S D Shibulal as whole-time director for five years. Shibulal heads the Strategic Business Unit V of the company that deals in Internet consultancy. Shareholders were also treated to a presentation by him on the shape of things to come on the Internet front by the turn of the century.

The shareholders also approved the re-appointment of N R Narayana Murthy and N S Raghavan as managing director and joint managing director for five years from May 1, 1997. In other resolutions, Nandan M Nilekani was re-appointed deputy managing director, while K Dinesh was endorsed for a further five-year stint as whole-time director.

The meeting also resolved that subject to the approval of the Union government, Reserve Bank of India and other regulatory bodies, the company would permit investments by foreign institutional investors, non-resident Indians and overseas corporations in the equity capital of the company.

The investments shall, however, not exceed in aggregate 30 per cent of the paid-up equity share capital of the company or other such limits prescribed.

Chairman and Managing Director Narayana Murthy said the last fiscal had been fruitful for the company. During the year, revenue, exports, profit before income, depreciation and tax and profit after tax grew from Rs 934.1 million, Rs 803.4 million, Rs 339.5 million and Rs 210.1 million in 1995-96 to Rs 1.43 billion, Rs 1.25 billion, Rs 500.6 million and Rs 333.9 million respectively.

The company also realised an extraordinary income from sale of Eagle to its wholly owned US subsidiary, Yantra Corporation. Infosys will also increase its investments in Yantra to $4 million from $2 million.

The company has also decided to pay a final dividend of Rs 4 per share, taking the dividend up to Rs 5.50 a share for the year ended March 31, 1997, compared with Rs 5 last year.

Tell us what you think of this story