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Notes to Accounts of ABM Knowledgeware Ltd.

Mar 31, 2016

Note1 (v) Other details:-

The Board of Directors have approved to spilt the shares vide their resolution dated 28/01/2016, to subdivide each share of '' 10/- into 2 shares of'' 5/- each. This was approved by the Shareholders by postal ballot by way of passing special resolution on 23/03/2016 and by the BSE on 11/04/2016.

Note 2.(vi)

The Central Government, in consultation with the National Advisory Committee on Accounting Standards, has amended the Companies (Accounting Standards) Rules, 2006 ("Principal Rules") through a notification issued by the Ministry Of Corporate Affairs dated March 30, 2016. The Companies (Accounting Standards) Rules, 2016 is effective March 30, 2016. According to the amended rules, the above mentioned proposed dividend will not be recorded as a liability as at march 31, 2016 (Refer to Para 8.5 of AS 4-Contingencies and Events Occurring after the balance sheet date). The company believes that the Rule 3(2) of the principal rules has not been withdrawn or replaced and accordingly, the Companies (Accounting Standards) Rule, 2016 will apply for the accounting periods commencing on or after March 30, 2016. Therefore the company has recorded '' 30,093 thousands as liability for proposed dividends (including Corporate Dividend Tax) as at March 31, 2016.

The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2015 that amount of dividend per share recognized as distribution to equity shareholders includes '' 2/- per share of final dividend. The total dividend appropriation for the year ended March 31, 2015 amounted to '' 24,098 thousands including corporate Dividend tax of '' 4,095 thousands. The Board has increased dividend payout ratio from 13.76% to 17.13% of post tax profits effective fiscal 2015. The Board in its meeting on May 25, 2016 has proposed a final dividend of'' 1.25 per share for the Financial year ended March 31, 2016. The proposal is subject to the approval of the shareholders at the ensuing Annual General Meeting. The total dividend appropriations for the year ended March 31, 2016 amounted to '' 30,093 thousands including Corporate Dividend Tax of '' 5,090 thousand.

Note 3(i) Other Details

The above trade payables includes payables outstanding for more than 365 days to the tune of'' 251 thousands (Rs,'' 5898 thousands for F.Y 2014-15). This amount is not classified as long-term liability, since it is held primarily for the purpose of being traded or due to be settled within normal business operating cycle. As at March 31, 2016, Rs,'' 447 thousands is outstanding to enterprise classified under Micro Small and Medium Enterprises Development Act 2006 (Rs,'' 315 thousands as at March 31, 2015). There is no interest due or outstanding on the said amount pertaining to MSME. Based on the information available with the Company, the vendors which fall under the definition of micro, small and medium scale enterprises has been disclosed above. This information is not verifiable by the auditors. Since there is no difference in the useful life of the main assets in block of assets and their related critical components, there is no separate disclosure in that respect. Useful life of all assets and the critical or significant components are reviewed periodically to ascertain and accordingly disclosed separately to be compliant with Schedule of the Companies Act, 2013.

Note 4(ii)

The written down value of the assets whose useful life has become zero has been adjusted against depreciation after maintaining 5% residual value as required by Schedule of the Companies Act, 2013.

Note 5(iii)

Gross block of Office premises includes shares allotted to Company of''Rs, 0.50 thousand; number of shares being 50 and cost of share being Rs,''10/-each. Since the said a month as been capitalized the Company has claimed depreciation on the same also.

Note 6(iv)

During the year, the Company has transferred amount of'' 1,701 thousand from Security deposit to gross block of office premises, since the same was capitalized during the year, Company has worked out the depreciation of the same having a retrospective effect i.e. from 2013. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II on this amount. Accordingly the unamortized carrying value is being depreciated / amortized over the revised/remaining useful lives. The depreciation pertaining to earlier year has been disclosed under prior period.

Note 7(i) Other Details

The above trade receivables includes receivables outstanding for more than 12 months amounting to '' 61,588 thousand ('' 76,097 thousand for F.Y 2014-15) against which the management has provided '' 5,000 thousand as provision for doubtful debts.

# Above Overdrafts is payable on demand and are secured by:-

(a) Hypothecation of book debts of the company.

(b) Collateral:

i) EMT of Office premises at Swastik Chambers, Office No.514 and 515,5th floor, Umarshi Bappa Chowk, Chembur, Mumbai -400071 Standing in the name of the company.

ii) EMT of Office Premises at Prabhadevi Unique Industrial Premises Co-op Soc. Ltd, Unit No.5, Ground Floor, Off Veer Savarkar Marg, Prabhadevi, Mumbai - 400025 standing in the name of the Company.

iii) Three LIC policies having Face Value ''Rs,1.50 lac in the name of the directors. Matured and proceedings converted into KDRS forRs, ''72,900/-,''Rs, 139,900/-, Rs,'' 100,250/- respectivelytotalRs,''313,050/-

iv) 5 KDR''s having face value ofRs,'' 2.60 lac in the personal names of directors Mr.Prakash Rane and Mrs.Supriya Rane (Directors).

(c) Personal Guaranteesfrom directors-Mr. Prakash B. Rane and Mrs. Supriya P Rane.

The amount mentioned pertains to the margin money paid to court against the Unique Value Case with interest at 9% p.a. against the court order received in June, 2005. Since the decision of the court is pending hence the same is disclosed as contingent liability.

Note 8(ii)

The Overdrafts and availed by the Company are payable on demand and are secured by:-

(a) Hypothecation of book debts of the company.

(b) Collateral:

i) EMT of Office premises at Swastik Chambers, Office No.514 and 515,5th floor, Umarshi BappaChowk, Chamber, Mumbai -400071 Standing in the name of the company.

ii) EMT of Office Premises at Prabhadevi Unique Industrial Premises Co-op Soc. Ltd,Unit No.5,Ground Floor, Off Veer Savarkar Marg, Prabhadevi, Mumbai -400025 standing in the name of the Company.

iii) Three LIC policies having Face Value Rs,''1.50 lac in the name of the directors. Matured and proceedings converted into KDRS for Rs,'' 729thousand, ''140 thousand, '' 100 thousand respectively total Rs,'' 313 thousand.

iv) 5 KDR''s having face value of''Rs, 260 thousand in the personal names of directors Mr. Prakash Rane and Mrs.Supriya Rane (Directors).

(c) Personal Guarantees from directors-Mr. Prakash B. Rane and Mrs. Supriya P Rane.

Note 9(iii)

Property tax amounting to Rs,'' 4,411 thousand is contingent in nature since the demand raised by the Asstt. Assessor &Collector/H-West Ward was of Rs,'' 8,411 thousand but during the year the company has paid Rs,''4000thousand against these expenses. Rest of the amount as per the management is contingent in nature.

Note 10(iv)

The service tax amount shown ofRs,'' 2,554 thousand pertains to the show cause notices received by the company for disallowances of cenvat credit on Rent, Mediclaim & Sponsorship expenses for the F.Y. 2010-11 to 2013-14.

Note 11.(v)

The contract of office interior is done in phases and according to the management estimation remaining amount to be executed on account of capital contract is ''Rs, 10,589 thousand.

Note 12.Employee Benefit plans A) Defined contribution plans Provident Funds:-

The Company makes provident fund contributions to defined contribution plans for qualifying employees. Under the scheme the company is required to contribute a special percentage of the payroll costs to fund the benefits. The company recognized ''Rs, 12,816 thousands (year ended 31.3.2016 Rs,'' 9,474 thousands) for provident contributions in the statement of Profit & Loss.

* Resigned w.e.f. 30th October, 2015

Note 13. Corporate Social Responsibility .As per Section 135 of the Companies Act, 2013, a company meeting applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, and rural development projects. A CSR committee has been formed by the company as per the act and the CSR funds are used in the areas mentioned above to some extent.

Management Comments

The Company has made efforts to identify projects in line with its CSR focus areas. However, the Company could not spend the requisite money on or before 31st March, 2016 as considerable time is taken in evaluating and implementing projects. Company believes that CSR expenditure is aimed at larger public good rather than mere compliance. However, the Company has spent around 90% of the stipulated CSR funds before signing the Balance Sheet. Sundry Creditors, Debtors, Loans & Advances and Deposits are subject to confirmation and reconciliation if any. During the year, letters for confirmation of balances have been sent to various parties by the Company. The Management however, does not expect any material changes. The balances are as per records available with the company.

Note 14.

- The figures are regrouped or reclassified, wherever it is necessary.


Mar 31, 2015

1. COMPANIES OVERVIEW

ABM KNOWLEDGEWARE LTD. (the 'Company') is a public limited company domiciled in India and is listed on the Bombay Stock Exchange (BSE). The company is one of the few information technology (IT) services companies with exclusive focus on e-governance since 1998.

Note 2 Additional disclosure to the financial statements as per the accounting standards

(Amount in ) As at 31st March, As at 31st March, 2015 2014

Contingent Liabilities and commitments (to the extend not provided for):

(i) Contingent Liabilities:

(a) Claims against the company not acknowledged as debts 2,227,223 2,227,223

(b) Bank Guarantees # 98,439,577 109,723,021

(ii) Commitments

(a) Estimated amount of contacts remaining to be excecuted on capital account and not provided for:

- tangible Assets - -

- Office interior 12,500,000 11,823,806

# Above Bank Guarantees are secured by:

a. Hypothecation of book debts of the Company.

b. Collateral of office premises at Swastik Chambers, 5th floor, chembur & 5 , Unique Ind.Estate, Prabhadevi, Mumbai.

c. Personal Guarantees from directors - Mr. Prakash B. Rane and Mrs. Supriya P Rane


Mar 31, 2014

Note 1 Additional disclosure to the financial statements as per the accounting standards

(Amount in Rs.)

As at 31st March, 2014 As at 31st March, 2013

Contingent Liabilities and commitments (to the extend not provided for):

(I) Contingent liabilties:

(a) Claims against the company not acknowledged as debts 2,227,223 2,227,223

(b) Bank Gurantees # 109,723,021 23,557,122

(ii) Commitments

(a) Estimated amount of contracts remaining to be excecuted on capital account and not provided for:

- tangible Assets

- Office interior 11,823,806 31,323,922

# Above Bank Guarantees are secured by:

a. Hypothecation of stocks and book debts of the Company.

b. Collateral of office premises at Prabhadevi and Chembur, Mumbai.

c. Personal Guarantees from Directors - Mr. Prakash B. Rane and Mrs. Sypriya P. Rane

Note 2 Employee Benefit plans

Defined contribution plans

The Company makes provident fund contributions to defined contribution plans for qualifiying employees. Under the scheme, the company is required to contribute a special percentage of the payroll costs to fund the benefits. The company recognised Rs. 78,60,551 (year ended 31.3.2013 Rs. 82,68,297) for provident contributions in the statement of Profit & Loss.

Note 3 The Company operates mainly in one business segment viz. software and services.

Note 4 Sundry Creditors, Debtors, Loans & Advances and Deposits are subject to confirmation and reconciliation if any. During the year, letters for confirmation of balances have been sent to various parties by the Company. The management, however, does not expect any material changes. The balances are as per records available with the company.


Mar 31, 2013

Note 1 Employee Benefit plans

Defined contribution plans

The Company makes provident fund contributions to defined contribution plans for qualifiying employees. Under the scheme the company is required to contribute a special percentage of the payroll costs to fund the benefits. The company recognised f 82,68,297 (year ended 31.3.2012 Rs. 75,62,435) for provident contributions in the statement of Profit & Loss.

Note 2 The Company operates mainly in one business segment viz. software and services.

Note 3 Sundry Creditors, Debtors, Loans & Advances and Deposits are subject to confirmation and reconciliation. During the year, letters for confirmation of balances have been sent to various parties by the Company. The management, however, does not expect any material changes.


Mar 31, 2012

Note 1 Additional disclosure to the financial statements as per the accounting standards

(Amount in Rs)

As at 31 March, 2012 As at 31 March, 2011

Contingent Liabilities and commitments (to the extend not providedfor):

(i) contingent liabilties:

(a) Claims against the company not acknowledged as debts 2,227,223 2,227,223

(b) Bank Gurantees 25,069,544 306,149,544

(ii) Commitments

(a) Estimated amount of contracts remaining to be excecuted on capital account and not provided for:

- tangible Assets 3,000,000 82,718,000

Note 2 Employee Benefit plans

Defined contribution plans

The Company makes provident fund contributions to defined contribution plans for qualifiying employees. Under the scheme the company is required to contribute a special percentage of the payroll costs to fund the benefits. The company recognised Rs 75,62,435 (year ended 31.3.2011 Rs 57,43,285) for provident contributions in the statement of Profit & Loss.

Note 3 The Company operates mainly in one business segment viz. software and services.Since the revenue generated from sale of products is less than 10 % of the total revenue, the segment reporting as required by AS-17 is not applicable.


Mar 31, 2011

1. Contingent Liabilities in respect of :- i) Claims against the company not acknowledged as debts amounting to Rs. 22.27 lacs (previous year Rs. 22.27 Lacs) in respect of which the company has made deposits of Rs. 22.27 lacs as per the Court Order, ii) Bank guarantees Rs 3061.49 Lacs (previous year Rs 290.95 Lacs).

2. Capital Commitments :- Estimated amount of contracts remaining to be executed on Capital Account (net of advance) and not provided for: Rs 827.18 lacs. ( previous, year Nil)

3. Expenditure in Foreign currency: - Travelling expenses Rs.4,00,196/- ( previous year Nil)

4. Deferred Tax liability of Rs.3,540,323/- (P.Y.Rs.3,532,284/-) represent timing difference on account of depreciation.

5. The Company's business activity comprises of single business segment i.e. Software and Services and geographical segment i.e. India.

6. Employee Benefits

(a) Provident Fund - Defined Contribution Plan

All Employees are entitled to Provident Fund benefits. Amount Debited to Profit & Loss Account Rs. 6,260,832.00 during the year.

(b) Gratuity defined Benefit Plan - Provision made as per actuarial Valuation.

7. No information is available with the Company in respect of dues to micro small and medium enterprise.

8. There are no dues to be credited to Investor Education and Protection Fund.

9. Previous years figures are regrouped and rearranged wherever necessary to conform to the current years presentation. Schedule 'A' to 'K' form an integral part of the Balance Sheet & Profit and Loss account and have been duly authenticated.


Mar 31, 2010

1. Contingent Liabilities in respect of:- i) Claims against the company not acknowledged as debts amounting to Rs. 22.27 lacs (previous year Rs. 22.27 Lacs) in respect of which the company has made deposits of Rs. 22.27 lacs as per the Court Order, ii) Bank guarantees Rs 290.95 Lacs (previous year Rs 265.77 Lacs).

2. Expenditure in Foreign currency: - Professional Fees Rs.374,137/- (Previous year - Nil)

3. Deferred Tax liability of Rs.3,532,284/- (P.Y.Rs. 3,451,259/-) represent timing difference on account of depreciation.

4. The Companys business activity comprises of only single segment i.e. Software and Services. Hence no separate information is given.

5. Employee Benefits

(a) Provident Fund - Defined Contribution Plan

All Employees are entitled to Provident Fund benefits. Amount Debited to Profit & Loss Account Rs. 4,458,883.00 during the year.

(b) Gratuity defined Benefit Plan - Provision made as per actuarial Valuation.

6. No information is available with the Company in respect of dues to micro small and medium enterprise.

7. There are no dues to be credited to Investor Education and Protection Fund.

8. Previous years figures are regrouped and rearranged wherever necessary to conform to the current years presentation. Schedule A to J form an integral part of the Balance Sheet & Profit and Loss account and have been duly authenticated.


Mar 31, 2003

1. There are no dues outstanding for more than 30 days to Small Scale Undertakings

2. There are no dues to be credited to Investor Education and Protection Fund.

3. Previous years figures are regrouped and rearranged wherever necessary.

Schedule A to L form an integral part of the Balance Sheet & Profit & Loss Account an have been duly authenticated.

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