Join our Whatsapp Community for Daily Price Sheets and News

ESDS Unlisted Shares

Annual Report: 2022

Year: 2022

Annual Report Summary

The document provided is the annual report for the financial year 2021-2022 of ESDS Software Solution Limited. The report includes:

Corporate Overview:

  • ESDS Software Solution Limited is engaged in IT-enabled services and supply of IT-enabled products.
  • The company's registered office is in Nashik, with operations in Nashik, Mumbai, and Bengaluru.
  • Piyush Prakashchandra Somani is the Chairman-cum-Managing Director and Komal Somani is a Whole-Time Director.
  • The company had initiated the process for an Initial Public Offering (IPO) with SEBI approval received on December 6th, 2021, to raise up to ₹3,220 million. Axis Capital Limited and IIFL Securities Limited were the book-running lead managers.

Financial Performance (FY 2021-22):

  • Total Receipts/Gross Sales and Operating Income: ₹1,978.97 million (Standalone), ₹1,986.91 million (Consolidated).
  • Profit Before Depreciation, Tax, and Exceptional Items: ₹487.40 million (Standalone), ₹443.02 million (Consolidated).
  • Profit/Loss After Tax: ₹21.95 million (Standalone), ₹(26.62) million (Consolidated). The consolidated result reflects a loss after tax.
  • Basic Earnings Per Share (EPS): ₹0.26 (Standalone), ₹(0.27) (Consolidated).
  • Revenue from operations increased by 12.39% to ₹ 1,932.34 million in Fiscal 2022 from ৳ 1,719.27 million in Fiscal 2021.
  • Employee benefit expenses increased by 17.37 % to ₹ 680.41 million in Fiscal 2022 from ₹ 579.69 million in Fiscal 2021.
  • The Company's cash balance increased to ৳ 340.32 million from previous year's ৳ 138.24 million.

Projects and Services:

  • Existing customers like L&T, EDF, and Tech Mahindra scaled up their businesses with ESDS, increasing revenue recognition in FY-22.
  • New orders from CERT-In and MEA delivered ₹17 Crore revenue in FY-22 and projected to deliver a minimum of ₹14 Crore in the next financial year.
  • Other enterprise orders, including PFC, were delivered and revenue recognition started.
  • The company is on track to exceed monthly billings of ₹30 Crore in September 2022, compared to ₹15 Crore in September 2021.
  • Key technologies shaping the “Digital Transformation of India" include Cybersecurity, Machine Learning and Artificial Intelligence, Cloud Computing, Simulation and System Integration, Big Data and Analytics, Autonomous Robots, Augmented Reality and Internet of Things.
  • Key cloud offerings include eNlight Cloud (patented vertically auto-scalable cloud), eMagic (data center management suite), VTMscan (vulnerability scanner), eNlight WAF (web access firewall), Web VPN (secure connectivity), eCOS (object storage), eNlight IoT (IoT platform), eNlight Meet (virtual meetings), eNlight SIEM (incident and event management), AA+ (AI lung disease detection), eNlight DRM (disaster recovery), and eNlight360 (hybrid cloud orchestration).
  • The company offers G-SaaS (Government SaaS) and smart city cloud solutions. The company operates four data centers in India in Navi Mumbai, Nashik, Bengaluru and Mohali. The data centers have maintained uptime of at least 99.995%.

Awards and Recognitions:

  • Aegis Graham Bell Award for "Combat Covid19 with Artificial Intelligence."
  • India Patent for Vertical Auto-scalability in Cloud Comp.
  • Piyush Somani: "Most Promising Business Leaders" of Asia 2022 award by ET Edge.
  • Komal Somani: CMO of the year award at the 20th Star Nite Award 2021 by VARINDIA and recognition as one of the 100 Inspirational Leaders of Asia by White Page International.

Corporate Governance & Compliance:

  • The company has implemented mandatory committees as per SEBI (ICDR) regulations. These include Audit, Nomination and Remuneration, Stakeholders' Relationship, Corporate Social Responsibility, and Risk Management Committees.
  • Mrs. Sarla Somani resigned as a Director effective July 28th, 2021. Several Additional Directors (Independent) were appointed.
  • The board met 16 times during the year.
  • The company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India.
  • The company has a whistle blower policy and a risk management policy in place. The company has a Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 policy.
  • The company directors confirm adherence to applicable accounting standards.

Share Capital & Debt:

  • Stock split was approved, changing face value from ₹10 to ₹1 per share.
  • Conversion of CCCPS into equity shares.
  • Allotment of 70,00,000 equity shares to existing shareholders on a rights basis.
  • Allotment of 300 unrated, unlisted, secured, 12% Non-Convertible Debentures ("NCDs") of ₹ 1 Million each amounting to ₹ 300 Million for a tenure of 1 years 1 month during FY 2021-22. The company fully pre-redeemed the NCDs on May 25, 2022.

Dividend:

  • Dividend declared at the rate of 0.01% per CCCPS of face value of ₹ 100/- each for the Financial Year 2018-19, 2019-20 and 2020-21.

Future Prospects (ESDS's 4Bs by 2024):

  • Touch 1B+ People by 2024.
  • Connecting 1B+ Smart Devices by 2024.
  • Becoming a $1B Enterprise by 2024.
  • Planting 1B+ Trees by 2024.

Internal Audit & Controls:

  • Adequate internal control system in place, including the appointment of independent Internal Auditors and a whistle blower policy.
  • The company's auditors were M/s. Shah Khandelwal Jain & Associates, Chartered Accountants, Pune. The secretarial audit was conducted by M/s. S. R. Khandelwal & Co., Practising Company Secretaries, Pune.

Other Highlights:

  • The company maintains comfortable cash balances.
  • No deposits were accepted from the public.
  • Details of related party transactions and director remuneration are disclosed.
  • Particulars of energy conservation, technology absorption, and foreign exchange earnings and outgo are detailed.
  • Details of employee stock option schemes (ESOS) are provided. 1,010,500 equity shares were allotted to AGSTTL Employees Welfare Trust (ESOP Trust) during the financial year ended March 31, 2022
  • Details of loans, investments, guarantees and subsidiaries are referred in the standalone financial statements.
  • Corporate Social Responsibility: The Company was required to spend Rs.3.80 million on CSR activities for FY2021-22 and the Company had spent entire amount during FY2021-22.

Our Blogs

Our blog provides insightful information about unlisted shares, offering a deeper understanding of how these assets work, their potential benefits, and the risks involved. Whether you're new to unlisted shares or looking to expand your knowledge, we cover topics such as investment strategies, valuation methods, market trends, and regulatory aspects. Stay updated with expert tips and guides to navigate the unlisted share market effectively.

FAQ's

What are unlisted shares?

+

Unlisted shares are stocks of companies that are not listed on any stock exchange, meaning they are not publicly traded. These shares are typically available for trade in the private market through brokers, and can offer unique investment opportunities.

How can I buy unlisted shares?

+

You can buy unlisted shares through a broker or platform that specializes in unlisted share transactions. We provide a secure and easy way to purchase unlisted shares from top companies, ensuring a smooth transaction process.

What is the share price of unlisted companies?

+

The share prices of unlisted companies can fluctuate based on various factors like market demand, company performance, and private transactions. You can check the latest share prices for unlisted companies on our website for real-time updates.

Are unlisted shares a good investment?

+

Unlisted shares can offer higher growth potential, as they are typically not subject to the same market volatility as listed shares. However, they come with higher risk due to limited liquidity and availability of information. It's important to research thoroughly and consult experts before investing.

How can I sell unlisted shares?

+

To sell unlisted shares, you can connect with a broker or platform that facilitates the sale of private stocks. We help investors buy and sell unlisted shares with ease, ensuring that your transaction is handled professionally and securely.

What are the risks of investing in unlisted shares?

+

Yes, unlisted shares can eventually be listed on a stock exchange through an Initial Public Offering (IPO). This process allows the company to offer its shares publicly and be traded on major exchanges, potentially increasing liquidity and visibility.

What is the share price of unlisted companies?

+

Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.

How do I know the current value of unlisted shares?

+

The value of unlisted shares is typically determined by private transactions, financial reports, and market demand. We provide the latest updates on share prices of unlisted companies, giving you the most accurate valuation available.

Is there a minimum investment amount for unlisted shares?

+

The minimum investment for unlisted shares can vary depending on the company and broker. Generally, the minimum investment is higher than for listed stocks, but we provide detailed information to help you make the best investment decisions.

Can I get a dividend from unlisted shares?

+

Yes, unlisted shares may pay dividends if the company has declared them. However, since these companies may be in their growth stage, dividend payments are not always guaranteed. It's important to check the company's financial health before investing.

How do I know which unlisted shares are worth investing in?

+

It's important to conduct thorough research on the company's financials, management, market potential, and overall business model. You can also seek professional advice from experts to help you choose unlisted shares with strong growth prospects.

Are unlisted shares taxed?

+

Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.

WhatsAppContact Us