Bangalore, June 7: 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 in VSNL, Mumbai, 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 20 crore comprising two crore equity shares of Rs 10 each from Rs 10 crore.

Shareholders of the company 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 74,90,000 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 SD Shibulal as wholetime director for five years. Shibulal heads the Strategic Business Unit V of the company that deals in Internet and 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 NR Narayana Murthy and NS 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 wholetime 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 (FIIs), non-resident Indians and overseas bodies corporate 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 93.41 crore, Rs 80.34 crore, Rs 33.95 crore and Rs 21.01 crore in 1995-96 to Rs 143.81 crore, Rs 125.28 crore, Rs 50.06 crore and Rs 33.39 crore 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.

Tieup with Visa on the cards

Creditcard major Visa International and Infosys are believed to have joined hands.

Under the agreement, Infosys will act as an offshore software development centre for Visa and manufacture credit-card solutions. Both Infosys and Visa officials were tightlipped on the project.

A top Infosys official did hint that such a tie-up was in the offing, but withdrew quickly, saying he could provide information only after he had Visa's permission to speak on the proposal. If the alliance comes through, it would be the only base Visa has outside the US.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.