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Notes to Accounts of Cybertech Systems & Software Ltd.

Mar 31, 2015

NOTE 1.

EMPLOYEES STOCK OPTION PLAN (ESOP)

The Company,s Employees, Stock Option Scheme - 2007, provides for issue of equity option in each financial year up to 5% (Previous Year 5%) of the outstanding fully paid-up equity capital of the Company as on March 31, 2007 on to eligible employees, and the carry forward of un-allotted options in each of the financial years to the subsequent financial years for grant, in aggregate not exceeding 9,264,970 shares (Previous Year 9,264,970 shares). The Shareholder at their meeting held on September 30, 2014 passed a new ESOP plan 2014. Under new ESOP plan the shareholders has permitted to grant 1,323,567 equity shares to the employees of the Company and to the employees of wholly owned subsidiary viz. CyberTech Systems and Software Inc., USA. The schemes covers directors and the employees of the subsidiaries, apart from the employees and directors of the Company except directors/ employees belonging to promoter group. The options vest in a phased manner over four years with 25% of the grants vesting at the end of each year from the date of grant and the same can be exercised within seven years from the date of the grant at the market price as on the date of the grant. One option is equal to one equity share.

Fair Value methodology for the option:

The fair value of options used to compute net income and earnings per equity share have been estimated on the dates of each grant within the range of Rs,10 to Rs,45 using the Black-Scholes pricing model. The Company estimated the volatility based on the historical share prices. The various assumptions considered in the pricing model for the options granted under ESOP are:

Impact of Fair value method on Net Profit and EPS

Had the compensation cost for the Company,s Stock Option Plan outstanding been determined based on the fair value approach, the Company,s net profit income and earnings per share would have been, as indicated below:

NOTE 2.

RELATED PARTY DISCLOSURES

Disclosure in respect of Related Parties pursuant to Accounting Standard 18 is as under:

A. List of Related Parties:

i) Parties where control exists:

Wholly Owned Subsidiary:

CyberTech Systems and Software Inc. USA (CSSI)

Subsidiary:

CyberTech Middle East W.L.L. (Bahrain) (CME) (up to May 19, 2014) ii) Other Parties with whom the Company has entered into transactions during the year:

Key Management Personnel

Dr. Tapan Kumar Mukhopadhyay - Whole time Director (up to August 13, 2013)

Ramasubramanian Sankaran-Executive Director & CFO

Sateesh Wadagbalkar- GM and Company Secretary (w.e.f. April 1, 2014)

Disclosure in Respect of Material Related Party Transactions during the year

# Payment to Key Managerial Personnel includes remuneration paid to Ramasubramanian Sankaran Rs,3,126,331 (Previous Year Rs,2,763,061) Sateesh Wadagbalkar Rs,943,454 (Previous Year NA) Tapan Kumar Mukhopadhyay Rs,Nil (Previous Year Rs,803,101)

Notes:

i) Related party relationship is as identified by the Company and relied upon by the Auditors.

ii) No amounts have been written of/back and provided for in respect of the related parties during the year.

iii) Figures in brackets represent previous year figures.

NOTE 3. LEASES:

(A) The Company has leased its vacant premises under cancellable lease agreements, the income from which is recognized and disclosed as Rent received under Note No. 20.

(B) The Company has taken commercial premises on lease basis, the agreements for which are mutually renewable/cancellable. The rental expenses in respect of operating lease are charged as rent under Note No. 23 under the head 'Rent,.

NOTE 4.

CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

(A) Contingent Liabilities:

a) Disputed Income Tax Matters:

i) Regular demand under assessment (including interest upto the date of demand) Rs,115,840 (Previous Year Rs,32,674,547)

ii) Penalties & Interest up to the date of demand of Rs,58,198,919 (Previous Year Rs,58,198,919)

iii) Other Income Tax proceedings in respect of earlier years decided in favour of the Company by the Appellate Authorities against which the Department is in further appeals excluding further interest liability, if any of Rs,3,769,968 (Previous Year Rs,3,769,968)

iv) In the previous year, the Company has received Income Tax refunds of Rs,189,474,293 (including interest amount of Rs, 74,080,633) towards Assessment years 1997-98, 1998-99 and 1999-00, pursuant to the favourable Order from Income Tax Appellate Tribunal. The Income Tax Department has filed an appeal against the said Order with the Hon,ble High Court, Bombay. Accordingly, the Company has, however continued the provision of Rs,121,961,829 (Previous Year Rs,121,961,829) made in earlier years.

b) Disputed Service Tax Matters Rs,6,607,614 (Previous Year Rs,6,607,614)

The Company,s pending litigations proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed in the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements

(B) Commitments:

Estimated amount (Net of Advances) of contracts remaining to be executed on capital account and not provided for: Rs,1,967,426 (Previous Year Rs,17,372,799)

NOTE 5.

Forward Exchange Contracts and Foreign Exchange Cover:

a) The Company uses Forward Exchange Contracts to hedge its risks associated with foreign currency fluctuations relating to certain form commitments and forecasted transactions. The Company does not enter in to any such instruments for trading or speculative purposes. The following are the contracts entered into by the Company and outstanding at the yearend:

NOTE 6.

The Company has invested Rs,153,403,250 (Previous Year Rs,106,303,250) in its Wholly Owned Subsidiary viz. CyberTech Systems and Software Inc., USA, which has incurred losses during the current year as well as in the previous year. However, being a long term and strategic investment, there is a reasonable certainty that there will be no diminution in the value of this investment, and therefore, no provisioning has been considered necessary.

NOTE 7.

Exceptional items include a claim of Rs,56,190,650 received on settlement of dispute in respect of investment and receivable from CyberTech Middle East WLL. The said amount includes writing back of Rs,9,135,258 being provision made for diminution in the value of aforesaid investment and for doubtful receivable in the earlier year.

NOTE 8.

Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing from April 1, 2014, the Company has realigned the remaining useful life of its tangible assets in accordance with the provisions prescribed under Schedule II to the Act. Accordingly, in the case of tangible assets which have completed their useful life, the carrying value (net of residual value) as at April 1, 2014 amounting to Rs,8,310,425 (net of Deferred Tax of Rs,3,991,291) has been adjusted to "Surplus in the Statement of Profit and Loss" and in the case of other tangible assets, the carrying value (net of residual value) is being depreciated over the revised remaining useful lives. Accordingly, the depreciation and amortization expense is higher by Rs,7,230,243 for the year ended 31st March, 2015.

NOTE 9.

Previous year,s figures have been re-grouped/re-arranged, wherever necessary, to conform to the current year,s classification/ presentation.


Mar 31, 2014

Company Overview

CyberTech Systems and Software Limited (referred to as the ''Company'') is an Information Technology service provider, delivering its services to customers primarily in the USA, India and Japan with focus on several core software technology applications including SAP''s Enterprise Suite and ESRI''s Geographical Information Systems(''GIS'') as well as Network Planning and Design and Custom Software Application Development. The Company continues to focus on delivering its development and support projects on an offshore basis.

NOTE ''1''

[Allotment of 4,959 (Previous year 4,959) bonus shares on 3,967 (Previous year 3,967) Equity shares is pending on account of non-establishment of beneficial ownership by NSDL.]

Terms/rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs. 10 per share. Each shareholder has a right to vote in respect of such share, on every resolution placed before the Company and his voting right on a poll shall be in proportion to his share of the paid-up equity capital of the Company. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after payments to secured and unsecured creditors in proportion to their shareholding.

During the previous five years, the Company has not issued Bonus shares/ bought back shares/issued shares for consideration other than cash.

Details of Security

Bank borrowing is secured by way of exclusive charge on immovable property of the Company at Thane, and rental to be credited to Escrow account with the bank. Interest payable @ base rate margin i.e. ranging from 12.75% p.a. to 13% p.a. (Previous Year 12.75% p.a.)

The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

NOTE ''2'' EMPLOYEES STOCK OPTION PLAN (ESOP)

The Company''s Employees'' Stock Option Scheme- 2007, provides for issue of equity option in each financial year up to 5% (Previous year 5%) of the outstanding fully paid-up equity capital of the Company as on March 31, 2007 on to eligible employees, and the carry forward of un-allotted options in each of the financial years to the subsequent financial years for grant, in aggregate not exceeding 9,264,970 shares (Previous year 9,264,970 shares). The scheme covers directors and the employees of the subsidiaries, apart from the employees and directors of the Company except directors/ employees belonging to promoter group. The options vest in a phased manner over four years with 25% of the grants vesting at the end of each year from the date of grant and the same can be exercised within seven years from the date of the grant at the market price as on the date of the grant. One option is equal to one equity share.

The Company has elected to use the intrinsic value method to account for the compensation cost of stock options to employees of the Company, Intrinsic value is the amount by which the quoted market price of the underlying share as on the date of grant exceeds the exercise price of the option.

Disclosure in Respect of Material Related Party Transactions during the year

# Payment to Key Managerial Personnel includes remuneration paid to Tapan Kumar Mukhopadhyay Rs. 803,101 (Previous Year Rs. 1,600,537) Ramasubramanian Sankaran Rs. 2,763,061 (Previous Year Rs. 1,694,573)

Notes:

i) Related party relationship is as identified by the Company and relied upon by the Auditors.

ii) a) No amounts have been written off/back and provided for in respect of the related parties during the year.

b) Provision of Rs. 1,476,405 made towards doubtful debts and provision of Rs. 7,658,853 made towards diminution in the value of investment, in the financial 2011-12 year in respect of Bahrain subsidiary.

iii) Figures in brackets represent previous year figures.

NOTE ''3''

LEASES:

(A) The Company has leased its vacant premises under cancellable lease agreements, the income from which is recognised and disclosed as Rent received under Note No. 20.

(B) The Company has taken commercial premises on lease basis, the agreements for which are mutually renewable/cancellable. The rental expenses in respect of operating lease are charged as rent under Note No. 23 under the head ''Rent''.

NOTE ''4''

Contingent Liabilities and commitments (to the extent not provided for) in respect of:

(A) Contingent Liabilities:

a) Disputed Income Tax Matters:

i) Regular demand under assessment (including interest upto the date of demand) Rs. 32,674,547 (Previous year Rs. 30,224,097)

ii) Penalties & Interest upto the date of demand of Rs. 58,198,919 (Previous year Rs. 58,198,919)

iii) Other Income Tax proceedings in respect of earlier years decided in favour of the Company by the Appellate Authorities against which the Department is in further appeals excluding further interest liability, if any : Rs. 3,769,968 (Previous year Rs. 3,769,968)

iv) During the previous year, the Company has received Income Tax refunds of Rs. 189,474,293 (including interest amount of Rs. 74,080,633) towards Assessment years 1997-98, 1998-99 and 1999-00, pursuant to the favourable Order from Income Tax Appellate Tribunal. The Income Tax Department has filed an appeal against the said Order with the Hon''ble High Court, Mumbai. Accordingly, the Company has, however continued the provision of Rs. 121,961,829 lakhs made in earlier years. The Company has accounted for the aforesaid interest on income tax refund.

b) Disputed Service Tax Matters Rs. 6,607,614 (Previous year Rs. 6,607,614)

(B) Commitments:

Estimated amount (Net of Advances) of contracts remaining to be executed on capital account and not provided for: Rs. 17,372,799 (Previous year Rs. 80,517,630)

NOTE ''5''

In the opinion of the Board, assets other than Fixed Assets and Non Current investments have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated. Provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

NOTE ''6''

The accounts of certain Banks, Trade Receivables, Trade Payables and Loans and Advances are subject to formal confirmation/ reconciliation and adjustments, if any. The Management does not expect any material difference affecting the current year''s financial statements.

NOTE ''7''

The Company has invested Rs. 106,303,250 in its Wholly Owned Subsidiary viz. CyberTech Systems and Software Inc.,USA, which has incurred losses during the current year as well as in the previous year. However, being a long term and strategic investment, there is a reasonable certainty that there will be no diminution in the value of this investment, and therefore, no provisioning has been considered necessary.

NOTE ''8''

Subsequent to the year end, the Company has received US $ 9.68 lacs pursuant to the arbitration settlement with the local partner of Bahrain subsidiary. As per the award terms, the Company inter alia is also to transfer it''s holding to the local partner once legal and other statutory formalities in respect of which are in the process of being complied with. Acordingly, necessary accounting impact will be given as and when necessary formalities are complied with.

NOTE ''9''

Previous year''s figures have been re-grouped/re-arranged, wherever necessary, to conform to the current year''s classification/ presentation.


Mar 31, 2013

Company Overview

CyberTech Systems and Software Limited (referred to as the ''Company'') is an Information Technology service provider, delivering its services to customers primarily in the USA, India and Japan with focus on several core software technology applications including SAP''s Enterprise Suite and ESRI''s Geospatial and Mapping solutions as well as Network Planning and Design and Custom Software Application Development. The Company continues to focus on delivering its development and support projects on an ofshore basis.

Note ''1''

Employees Stock Option Plan (ESOP)

The Company''s Employees'' Stock Option Scheme- 2007, provides for issue of equity option in each fnancial year up to 5% (Previous year 5%) of the outstanding fully paid-up equity capital of the Company as on March 31, 2007 on to eligible employees, and the carry forward of un-allotted options in each of the fnancial years to the subsequent fnancial years for grant, in aggregate not exceeding 9,264,970 shares (Previous year 9,264,970 shares). The scheme covers directors and the employees of the subsidiaries, apart from the employees and directors of the Company except directors/ employees belonging to promoter group. The options vest in a phased manner over four years with 25% of the grants vesting at the end of each year from the date of grant and the same can be exercised within seven years from the date of the grant at the market price as on the date of the grant. One option is equal to one equity share.

Note ''2'' Leases:

(A) The Company has leased its vacant premises under cancellable lease agreements, the income from which is recognised and disclosed as Rent received under Note No. 19.

(B) The Company has taken commercial premises on lease basis, the agreements for which are mutually renewable/cancellable. The rental expenses in respect of operating lease are charged as rent under Note No. 22 under the head ''Rent''.

Note ''3''

Contingent Liabilities and commitments (to the extent not provided for) in respect of:

(A) Contingent Liabilities:

a) Disputed Income Tax Matters:

i) Regular demand under assessment (including interest upto the date of demand) Rs. 30,224,097 (Previous year Rs. 30,224,097)

ii) Penalties & Interest upto the date of demand of Rs. 58,198,919 (Previous year Rs. 58,198,919)

iii) Other Income Tax proceedings in respect of earlier years decided in favour of the Company by the Appellate Authorities against which the Department is in further appeals excluding further interest liability, if any : Rs. 3,769,968 (Previous year Rs. 3,769,968)

iv) During the current year, the Company has received Income Tax refunds of Rs. 189,474,293 (including interest amount of Rs. 74,080,633) towards Assessment years 1997-98, 1998-99 and 1999-00, pursuant to the favourable Order from Income Tax Appellate Tribunal. The Income Tax Department has fled an appeal against the said Order with the Hon''ble High Court, Mumbai. Accordingly, the Company has, however continued the provision of Rs. 121,961,829 lakhs made in earlier years. The Company has accounted for the aforesaid interest on income tax refund.

b) Disputed Service Tax Matters Rs. 6,607,614 (Previous year Rs. 6,607,614)

(B) Commitments:

Estimated amount (Net of Advances) of contracts remaining to be executed on capital account and not provided for: Rs. 80,517,630 (Previous year Rs. 19,839,521)

Note ''4''

Forward Exchange Contracts and Foreign Exchange Cover:

a) The Company uses Forward Exchange Contracts to hedge its risks associated with foreign currency fuctuations relating to certain frm commitments and forecasted transactions. The Company does not enter in to any such instruments for trading or speculative purposes. The following are the contracts entered into by the Company and outstanding at the year end:

Note ''5''

In the opinion of the Board, assets other than Fixed Assets and Non Current investments have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated. Provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

Note ''6''

The accounts of certain Banks, Trade Receivables, Trade Payables and Loans and Advances are subject to formal confrmation/ reconciliation and adjustments, if any. The Management does not expect any material diference afecting the current year''s fnancial statements.

Note ''7''

The Company has invested Rs.106,303,250 in its Wholly Owned Subsidiary viz. CyberTech Systems and Software Inc.,USA, which has incurred losses incurred during the current year as well as in the previous year. However, being a long term and strategic investment, there is a reasonable certainty that there will be no diminution in the value of this investment, and therefore, no provisioning has been considered necessary.

Note ''8''

Previous year''s fgures have been re-grouped/re-arranged, wherever necessary, to conform to the current year''s classifcation/ presentation.


Mar 31, 2012

Company Overview

CyberTech Systems and Software Limited (referred to as the 'Company') is an Information Technology service provider, delivering its services to customers primarily in the USA, India and Middle East with focus on several core software technology applications including SAP's Enterprise Suite and ESRI's Geographical Information Systems('GIS') as well as Network Planning and Design and Custom Software Application Development. The Company continues to focus on delivering its development and support projects on an offshore basis.

NOTE '1' SHARE CAPITAL

(a) Terms/rights attached to equity shares

The Company has issued one class of equity shares having a face value of Rs. 10 per share. Each shareholder has right to vote in respect of such share, on every resolution placed before the Company and his voting right on a poll shall be in proportion to his share of the paid -up equity capital of the Company. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after payments to secured and unsecured creditors, in proportion to their shareholding.

Note '2'

Employees Stock Option Plan (ESOP)

The Company's Employees' Stock Option Scheme-2007, provides for issue of equity option in each financial year up to 5% (Previous year 5%) of the outstanding fully paid-up equity capital of the Company as on March 31, 2007 on to eligible employees, and the carry forward of un-allotted options in each of the financial years to the subsequent financial years for grant, in aggregate not exceeding 9,264,970 shares (Previous year 9,264,970 shares). The scheme covers directors and the employees of the subsidiaries, apart from the employees and directors of the Company except directors/employees belonging to promoter group. The options vest in a phased manner over four years with 25% of the grants vesting at the end of each year from the date of grant and the same can be exercised within seven years from the date of the grant at the market price as on the date of the grant. One option is equal to one equity share.

Note '3'

RELATED PARTY DISCLOSURES

Disclosure in respect of Related Parties pursuant to Accounting Standard 18 is as under:

A. List of Related Parties:

i) Parties where control exists:

Wholly Owned Subsidiary:

CyberTech Systems and Software Inc. USA (CSSI)

Subsidiary:

CyberTech Middle East W.L.L.(Bahrain) (CME)

ii) Other Parties with whom the Company has entered into transactions during the year:

Key Management Personnel

Dr. Tapan Kumar Mukhopadhyay - Wholetime Director (w.e.f. March 15, 2011)

Mr. Radhakrishna Pingali - Wholetime Director (October 11, 2010 to February 11, 2011)

Mr. C N Rao - Executive Director (upto October 8, 2010)

Notes:

i) Related party relationship is as identified by the Company and relied upon by the Auditors.

ii) * No amounts have been written of/back and provided for in respect of the related parties during the year except provision of Rs. 1,476,405 towards doubtful debts and provision for diminution in the value of investments Rs. 7,658,853 in respect of Bahrain Subsidiary.

iii) Figures in brackets represent previous year figures.

Note '4' Leases:

(A) With an objective to use Company's idle resources and to strengthen the cash flows, the Company earns income by leasing its vacant premises. The income from which is recognised and disclosed as Rent received under Note No. 18.

(B) The Company has taken commercial premises on lease basis, the agreements for which are mutually renewable/cancellable. The rental expenses in respect of operating lease are charged as rent under Note No. 21 under the head 'Rent'.

Note '5'

Contingent Liabilities and commitments (to the extent not provided for) in respect of:

(A) Contingent Liabilities:

a) Disputed Income Tax Matters:

i) Regular demand under assessment (including interest upto the date of demand) Rs. 30,224,097 (Previous year Rs. 30,224,097)

ii) Penalties & Interest upto the date of demand of Rs. 58,198,919 (Previous year Rs. 58,198,919);

iii) Other Income Tax proceedings in respect of earlier years decided in the Company's favour by the Appellate Authorities against which the Department is in further appeals excluding further interest liability, if any : Rs. 3,769,968 (Previous year Rs. 3,769,968)

b) Disputed Service Tax Matters Rs. 6,607,614 (Previous year Rs. 6,607,614)

(B) Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 19,839,521 (Previous year Nil)

Note '6'

During the Year the Company has received a favourable order from Income Tax Appellate Tribunal (ITAT ) in respect of AY1997-98 to AY 1999-00 wherein exemption u/s 10B of the Income Tax Act 1961 has been allowed for the Income from Business Operations. However, the order giving effect to the ITAT Order is not yet received and also considering the chances of Income Tax Department fling higher appeals with the High Court, the Company has not reversed the provision for taxation of approximately Rs. 12.20 Crores and also not recognised the interest receivable on the said amount.

Note '7'

In the opinion of the Board, assets other than fixed assets and non current investments have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated. Provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

Note '8'

The accounts of certain Banks, Trade Receivables, Trade Payables and Loans and Advances, are subject to formal confirmation/reconciliation and adjustments, if any. The Management does not expect any material difference affecting the current year's financial statements.

Note '9'

In the current year, financial statements have been prepared as per Revised Schedule VI. Previous year's figures have been re-grouped/re-arranged, wherever necessary, to conform to the current year's classification/presentation.


Mar 31, 2011

1. Contingent Liabilities not provided for in respect of:

a) Disputed Income Tax Matters:

i) Regular demand under assessment (including interest upto the date of demand) Rs. 30,224,097 (Previous year Rs. Nil)

ii) Penalties & Interest of Rs. 58,198,919; (Previous year Rs. 58,198,919)

iii) Other Income Tax proceedings in respect of earlier years decided in the Company's favour by the Appellate Authorities against which the Department is in further appeals excluding further interest liability, if any : Rs. 3,769,968 (Previous year Rs. Nil)

b) Disputed Service Tax Matters Rs. 6,607,614 (Previous year Rs. 6,607,614)

2. Segment Reporting

Pursuant to Accounting Standard 17 on "Segment Reporting" issued by the Companies (Accounting Standard) Rules, 2006, the Company has only one reportable segment viz. Software Services & Development.

3. (a) In the opinion of the Management, Current Assets, Loans and Advances (including Capital Advances) have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated. Provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

(b) The accounts of certain Sundry Debtors, Sundry Creditors and Advances are subject to confirmation/reconciliation and adjustments, if any. The Management does not expect any material difference affecting the current year's financial statements.

4. Disclosure in respect of Related Parties pursuant to Accounting Standard 18 is as under:

A. List of Related Parties:

i) Parties where control exists:

Wholly Owned Subsidiary:

CyberTech Systems and Software Inc. USA (CSSI)

Subsidiary:

CyberTech Middle East W.L.L.(Bahrain) (CME)

ii) Other Parties with whom the Company has entered into transactions during the year:

Key Management Personnel:

C N Rao-Executive Director (upto October 8, 2010)

Radhakrishna Pingali-Wholetime Director (October 11, 2010 to February 11, 2011)

Tapan Kumar Mukhopadhyay-Wholetime Director (w.e.f March 15, 2011)

5. The Company has invested in its subsidiary viz. CyberTech Systems and Software Inc. & Cybertech Middle East, W.L.L aggregating to Rs. 113,962,103 (Previous year Rs. 80,223,353). However, being a long term and strategic investment, there is a reasonable certainty that there will be no diminution in the value of these investments, and therefore no provisioning has been considered necessary.

6. Interest free loans given to employees of the Company and outstanding as at the year-end Rs. NIL (Previous year Rs. 25,000) in the ordinary course of Company's business. Maximum balance due at any time during the year was Rs. 25,000 (Previous Year Rs. 120,500). These employees do not hold any equity shares of the Company.

7. Previous year's figures have been re-grouped/re-arranged, wherever necessary, to conform to the current year's classification/presentation.


Mar 31, 2010

1. Contingent Liabilities not provided for in respect of:

a) Disputed Income Tax Matters (include penalties of Rs.58,198,919; Previous year Rs. 57,843,742) Rs. 58,198,919 (Previous year Rs. 61,009,311)

b) Disputed Service Tax Matters Rs.6,607,614 (Previous year Rs.6,607,614)

c) Guarantee provided by the Company in respect of loan granted to a subsidiary by a bank-Rs NIL (Previous Year Rs. 27,500,000)

2. Segment Reporting

Pursuant to Accounting Standard 17 on "Segment Reporting" issued by the Companies (Accounting Standard) Rules, 2006, the Company has only one reportable segment viz. Software Services & Development.

3. (a) In the opinion of the Management, Current Assets, Loans and Advances (including Capital Advances) have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated. Provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary. (b) The accounts of certain Sundry Debtors, Sundry Creditors, Advances are subject to confirmation/reconciliation and adjustments, if any. The Management does not expect any material difference affecting the current years financial statements.

4. Related Party Transactions

A. List of Related Parties:

i) Parties where control exists:

Wholly Owned Subsidiaries

CyberTech Systems and Software Inc. USA (CSSI)

Subsidiary

CyberTech Middle East W.L.L., Bahrain (CME)

ii) Other Parties with whom the Company has entered into transactions during the year:

Key Management Personnel

Mr. C N Rao-Executive Director

5. The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

6. The company has invested in its subsidiary viz. CyberTech Middle East W.L.L.(Bahrain). Rs. 7,658,853 (Previous Year: 2,345,785). However, being a long term and strategic investment, there is a reasonable certainty that there will be no diminution in the value of this investment. No provisioning has been considered necessary.

7. Interest free loans given to employees of the Company and outstanding as at the year-end Rs.25,000 (Previous year Rs. 120,500) in the ordinary course of Companys business. Maximum balance due at any time during the year was Rs.120,500 (Previous Year Rs.749,693). These employees do not hold any equity shares of the Company.

8. Previous years figures have been re-grouped/re-arranged, wherever necessary, to conform to the current years classification/presentation.

 
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