Home  »  Company  »  Encore Software  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Encore Software Ltd.

Mar 31, 2015

1. Corporate Information: Encore Software Limited (hereinafter called as "Company") is a Public Limited Company domiciled in India incorporated under provisions of Companies Act, 1956. Company is engaged in developing software and hardware.

2. The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of an equity share is entitled to one vote per share.

3. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of shares held by the equity share holders.

4. Shares held by each shareholder holding more than 5 percent shares specifying the number of shares held - Nil. 5. Contingent Liabilities: Disputed liability towards Employees State Insurance contributions is Rs. 91,027 (Rs. 91,027).

6. Disclosure relating to related party transactions

7. As per Accounting Standard (AS-18) on Related party disclosures notified by the Companies (Accounting Standards) Rules, 2006, the disclosure of transactions with the related party as defined in the Accounting Standard are given below:

Sl. Name of the Related Party Relationship No.

1. Ncore USA Inc Wholly Owned Subsidiary

2. Peninsula Electronics Firm in which Director is interested

3. Processor Systems India Pvt Ltd Company in which Director is interested

4. Vinay L Deshpande Key Management Personnel

5. Chhanda Deshpande Key Management Personnel

6. Consilient Technologies Private Limited 51% Subsidiary company

7. Encore Technologies Singapore Pte Ltd Associate Company (till 31st March 2014)

8. Ncore Technology Services Pvt Ltd Company in which Director is interested (till 31st March 2014)

9. Bharath Logistics Private Limited Associate Company

8. Particulars of Joint Venture: Encore Technologies Singapore Pte Ltd is a Joint Venture Company of Encore Software Limited and Time 2 Talk Pte. Ltd., incorporated under the laws of Singapore. Out of the total Paid up Capital of 9,645.784 numbers of equity shares (par value S $ .1 each) of Encore Technologies Singapore Pte. Ltd., Encore Software Limited holds 3,301,100 (par value s $ 0.10 each) representing 38.02% of total equity.

Based on contractual obligation Encore Technologies Singapore Pte. Ltd. has entered into, Encore Software Limited has no contingent liabilities or capital commitments on account of the joint venture.

The Company has since been liquidated and hence the investment and trade receivable have been set off against the provision.

9. Leases

Operating Leases: The Company has taken commercial premises under cancelable operating lease. The lease agreements provide an option to the Company to renew the lease period. There are no exceptional / restrictive covenants in the lease agreements. Contingent rent recognized in the profit and loss account is Rs. Nil (Rs. Nil).

10. Provisions, Contingent Liabilities & Contingent Assets: The Company has made provision for leave salary on estimated basis in. These being retirement benefits, an obligation to pay these amounts might arise at the time of resignation/superannuation of the employees. There is no reimbursement receivable against these obligations.

11. Retirement Benefit Plans

Defined Contribution Plans: The Company makes Provident Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

The Company recognized Rs. 83,148 (Rs. 68,792) for provident fund contributions and in the profit and loss account. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined Benefit Plans: During the year ended 31st March 2015, in view of the few employees, the company has made provision for gratuity and leave encashment on estimated basis instead of on actuarial valuation.

Up to 31st March 2014, the Company has made a provision for gratuity payable to qualifying employees'. Lump sum payment is made to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

The following table sets out the funded status of the gratuity plan and the amounts recognized in the Company's financial statements as at 31st March 2014.

12. Segment Reporting: The Company is currently offering services only in Technology Solutions segment to overseas customers. Hence in the opinion of the management disclosures under segment reporting (AS-17) is not applicable to the Company for the year under review.

13. Previous period's figures have been recast/restated, wherever necessary, to conform to the current year's classifications. Figures in brackets relate to the previous period.


Mar 31, 2014

1. Contingent Liabilities

Disputed liability towards Employees State Insurance contributions is Rs. 91,027 (Rs 91,027).

2. Particulars of Joint Venture

Encore Technologies Singapore Pte Ltd is a Joint Venture Company of Encore Software Limited and Time 2 Talk Pte Ltd, incorporated under the laws of Singapore. Out of the total Paid up Capital of 9,645.784 numbers of equity shares (par value S $ .1 each) of Encore Technologies Singapore Pte Ltd, Encore Software Limited holds 3,301,100 (par value s $ 0.10 each) representing 38.02% of total equity.

Based on contractual obligation Encore Technologies Singapore Pte Ltd has entered into, Encore Software Limited has no contingent liabilities or capital commitments on account of the joint venture.

3. Provisions, Contingent Liabilities & Contingent Assets

The Company has made provision for gratuity and leave salary on basis of actuarial valuation. These being retirement benefits, an obligation to pay these amounts might arise at the time of resignation / superannuation of the employees. There is no reimbursement receivable against these obligations.

Amounts in Rs. The carrying Additional Amounts incurred amount at the provisions and charged against Nature of beginning of made during the provision during obligation the period the year the period

Leave Salary 162,085 75,211 Nil

Amounts in Rs. The carrying Unused amounts amount at Nature of reversed during the end of obligation the period the period

Leave Salary Nil 237,296

4. Retirement Benefit Plans

Defined contribution plans

The Company makes Provident Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

The Company recognized Rs. 68,792 (Rs. 152,446) for provident fund contributions and in the profit and loss account. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company has made a provision for gratuity payable to qualifying employees''. Lump sum payment is made to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

5. Segment Reporting

The Company is currently offering services only in Technology Solutions segment to overseas customers. Hence in the opinion of the management disclosures under segment reporting (AS-17) is not applicable to the Company for the year under review.

6. Previous period''s figures have been recast/restated, wherever necessary, to conform to the current year''s classifications. Figures in brackets relate to the previous period.


Mar 31, 2013

1.1 Contingent Liabilities:

The Company has an outstanding Counter Guarantee of Rs. Nil (Rs 251,830) to a bank, in respect of the guarantee issued by the said bank favoring Government of India.

1.2 Disputed liability towards Employees State Insurance contributions is Rs. 91,027 (Rs 91,027)

1.3 Particulars of Joint Venture:

Encore Technologies Singapore Pte Ltd is a Joint Venture Company of Encore Software Limited and Time 2 Talk Pte. Ltd, incorporated under the laws of Singapore. Out of the total Paid up Capital of 9,645.784 numbers of equity shares (par value S $ .1 each) of Encore Technologies Singapore Pte Ltd, Encore Software Limited holds 3,301,100 (par value s $ 0.10 each) representing 38.02% of total equity.

Based on contractual obligation Encore Technologies Singapore Pte Ltd has entered into, Encore Software Limited has no contingent liabilities or capital commitments on account of the joint venture

1.4 Leases:

Operating Leases: The Company has taken commercial premises under cancelable operating lease. The lease agreements provide an option to the Company to renew the lease period. There are no exceptional / restrictive covenants in the lease agreements. The rental expense in respect of operating lease is Rs. 1,754,514 (Previous year Rs. 2,698,080). Contingent rent recognized in the profit and loss account is Rs. Nil (Rs. Nil)

1.5 Retirement Benefit Plans Defined contribution plans

The Company makes Provident Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

The Company recognized Rs.152,446 (Rs. 248,471) for provident fund contributions and in the profit and loss account. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company has made a provision for gratuity payable to qualifying employees''. Lump sum payment is made to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

1.6 Previous period''s figures have been recast/restated, wherever necessary, to conform to the current year''s classifications. Figures in brackets relate to the previous period.


Mar 31, 2012

1.1 Contingent Liabilities:

The Company has an outstanding Counter Guarantee of Rs. 251,830 (Rs 251,830) to a bank, in respect of the guarantee issued by the said bank favouring Government of India.

1.2 Disputed liability towards Employees State Insurance contributions is Rs. 91,027 (Rs 91,027)

1.3 The Company is engaged in design and development of software and embedded systems. The production and sale of such activities cannot be expressed in any generic unit. Hence it is not possible to give the quantitative details of sales and information as required under paragraphs 3 and 4C, of Part II of Schedule VI of the Companies Act, 1956 for sucti transactions.

1.4 Particulars of Joint Venture:

Encore Technologies Singapore Pte Ltd is a Joint Venture Company of Encore Software Limited and Time 2 Talk Pte. Ltd, incorporated under the laws of Singapore. Out of the total Paid up Capital of 9,645.784 numbers of equity shares (par value S $ .1 each) of Encore Technologies Singapore Pte Ltd, Encore Software Limited holds 3,301,100 (par value s $ 0.10 each) representing 38.02% of total equity. Based on contractual obligation Encore Technologies Singapore Pte Ltd has entered into, Encore Software Limited has no contingent liabilities or capital commitments on account of the joint venture.

1.5 Leases:

Operating Leases: The Company has taken commercial premises under cancelable operating lease. The lease agreements provide an option to the Company to renew the lease period. There are no exceptional / restrictive covenants in the lease agreements. The rental expense in respect of operating lease is Rs. 2,698,080 (Previous year Rs. 2,248,397). Contingent rent recognized in the profit and loss account is Rs. Nil (Rs. Nil)

1.6 Provisions, Contingent Liabilities & Contingent Assets:

The Company has made provision for gratuity and leave salary on basis of actuarial valuation. These being retirement benefits, an obligation to pay these amounts might arise at the time of resignation / superannuation of the employees. There is no reimbursement receivable against these obligations.

1.7 Retirement Benefit Plans Defined contribution plans

The Company makes Provident Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

The Company recognised Rs. 248,471 (Rs. 301,926) for provident fund contributions and in the profit and loss account. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company has made a provision for gratuity payable to qualifying employees'. Lump sum payment is made to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

1.8 Previous period's figures have been recast/restated, wherever necessary, to conform to the current year's classifications. Figures in brackets relate to the previous period.


Mar 31, 2010

1.2 Notes on Accounts

1.2.1 Contingent Liabilities:

16.2.2 The Company has an outstanding Counter Guarantee of Rs. 251,830 (Rs 251,830) to a bank, in respect of the guarantee issued by the said bank favouring Government of India.

1.2.3 Disputed liability towards Employees State Insurance contributions is Rs. 91,027 (Rs 91,027)

1.3 The Company is engaged in design and development of software and embedded systems. The production and sale of such activities cannot be expressed in any generic unit. Hence it is not possible to give the quantitative details of sales and informa- tion as required under paragraphs 3 and 4C, of Part II of Schedule VI of the Companies Act, 1956 for such transactions

1.4 Quantitative Details

1.5 Particulars of Joint Venture:

Encore Technologies Singapore Pte Ltd is a Joint Venture Company of Encore Software Limited and Time 2 Talk Re. Ltd, incorporated under the laws of Singapore. Out of the total Paid Up Capital of 9,645.784 number of equity shares (par value S $ .1 each) of Encore Technologies Singapore Pte Ltd, Encore Software Limited holds 3,301,100 (par value S $ 0.10 each) representing 38.02% of total equity.

Based on contractual obligation Encore Technologies Singapore Re Ltd has entered into, Encore Software Limited has no contingent liabilities or capital commitments on account of the Joint Venture.

1.6 Leases:

Operating Leases: The Company has taken commercial premises under cancelable operating lease. The lease agreement provides an option to the Company to renew the lease period. There are no exceptional / restrictive covenants in the lease agreements. The rental expense in respect of operating lease is Rs. 2,248,361 (Previous year Rs. 2,425,280). Contingent rent recognized in the profit and loss account is Rs. Nil (Rs. Nil)

1.7 Provisions, Contingent Liabilities & Contingent Assets:

The Company has made provision for gratuity and leave salary on basis of actuarial valuation. These being retirement benefits, an obligation to pay these amounts might arise at the time of resignation / superannuation of the employees. There is no reimbursement receivable against these obligations.

Amounts in Rupees

Additional Amount Unused The carrying provisions Amounts The carrying Nature of amount made incurred reversed amount at obligation at the during the against during the end of the period year the the the during provis- period ion during the period

Leave Salary 1,279,765 98,500 Nil Nil 1,378,265



1.8 Retirement Benefit Plans:- Defined contribution plans:

The Company makes Provident Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date. The Company recognised Rs. 1,765,043 (Rs. 1,718,977) for provident fund contributions and in the profit and loss account. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans:

The Company makes annual contributions to the Employees Group Gratuity-cum-Life Assurance Scheme Master Policy of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

The Company has made a provision for gratuity payable to qualifying employees. Lump sum payment is made to vested employees at retirement, death while in employment or on termination of employment, of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

1.9 Previous periods figures have been recast/restated, wherever necessary, to conform to the current years classifications. Figures in brackets relate to the previous period.

 
Subscribe now to get personal finance updates in your inbox!