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August 31, 1999
Digital India profit rises 98.5 per centDigital Equipment (India) Limited has recorded a 98.5 per cent surge in net profit during the year ended June 26, 1999, to touch Rs 543.3 million as against Rs 273.8 million an year ago.
Net sales and income from operations for the year stood at Rs 2.48 billion as over Rs 3.5 billion.
Income in the domestic market amounted to Rs 1.75 billion while exports were to the tune of Rs 737.8 million.
Other income during the period amounted to Rs 39.6 million while total revenue was Rs 2.52 billion.
Total expenditure amounted to Rs 2.22 billion as against Rs 3.1 billion a year earlier.
Profit on sales of computer products and services business was Rs 419.7 million.
The company provided for Rs 132.5 million as tax.
It has restructured its businesses and has sold its domestic computer products and services business to Compaq Computer India Private Limited for a consideration of Rs 839.9 million and a non-compete fee of Rs 50 million. The actual business transfer date is June 26, 1999.
The proceeds of the transaction are still being received.
Subsequent to the transaction, Digital India is now a focus software and services exports company.
The company has changed its accounting policies to follow a conservative accounting practice and created additional reserves for doubtful debt which is reflected in the Net earnings of the company.
The software services and export division continues to show strong revenue growth and operational performance.
Digital's Y2K compliance will be completed by September 30, 1999. The company is in the process of setting up a contingency plan to eliminate disruptions in operations due to any unforeseen Y2K problems.
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