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

Notes to Accounts of GSS Infotech Ltd.

Mar 31, 2015

1. Terms/rights attached to equityshares

The Company has only one class of equity shares having a par value of Rs.10/- each. Each share holder of equity shares is entitled to one vote per share

2. 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 and the distribution in proportion to the number of equity shares held by the shareholders.

3. The Company has a 2013 RSU Plan which provides for the grant ofrestricted stock units (RSUs) to eligible employees ofthe Company. The Board ofDirectors recommended establishment of the 2013 Plan to the shareholders on May30, 2013 and the shareholders approved the recommendation of the Board of Directors on July 19, 2013. The maximum aggregate number of shares that may be awarded under the 2013 Plan is 20,00,000 (currently held by the GSS America ESOP Trust ) and the plan shall continue in effect for a term of 10 years from the date of initial grant under the plan. The RSUs will be issued at par value of the equity share. The 2013 Plan is administered by the compensation committee (now 'the Remuneration Committee') and through GSS America ESOP Trust ('the trust'). The committee comprises independent members of the Board of Directors.

4. Corporate information:

GSS Infotech (GSS) is one of the fast growing managed IT Services companies, headquartered at Hyderabad, India. GSS operates worldwide through its offices in India and USA. A pioneer in managed IT Services, GSS offers Cloud Enablement Services Remote Infrastructure and Application management services to customers across the globe. Over the years, GSS has established itself as a choice of providers with over 40 Fortune global customers covering Financial Services, Insurance, HealthCare, Education and Government industry segments.

A CMMi Level 5 company, GSS helps its customers reduce their CAPEX on infrastructure and helps convert it to manageable operational expense, leveraging its premier partnerships with leading technology providers such as Microsoft, CISCO, HP, Symantec, VMWARE, BMC and NetApp. GSS Infotech offers consulting services to help customers choose the right cloud deployment models, migrates application portfolio to the cloud environment, ensures functional and performance equivalence of applications through its independent validation and verification services and also offers remote application & infrastructure monitoring and management services through its Global Operations Command Center in Hyderabad, India. GSS Infotech, with an ambitious inorganic growth strategy, has been very successful through a spate of acquisitions in the USA. The company has been successful in integrating all of its overseas acquisitions and creating a globally integrated Infrastructure Management Services practice. GSS is now well positioned to capitalize on the emerging technology trends in the cloud computing arena leveraging its unparalleled expertize in Infrastructure Virtualization, Remote Infrastructure Management, Cloud Consulting and Migration services. The company offers world class services propelled by over 700 consultants consisting of MCSE's, BS-25999 certified professionals, VMware VCP's, Remedy CA, CCNA, CCNP, CCSE, CCVP, CCIE, CISSP, BMC Control-M professionals with Consulting, Deployment and Management expertise.

GSS Infotech provides pragmatic and unique solutions to customers looking for excellence and high-quality. Our Thought Leadership, Responsiveness, Passion and Professionalism to work as a 'Virtual Extension' to customer's business has always been acknowledged to be a great strength, by our customers.

5. Basis of Preparation:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. The Company has prepared the financial statements to comply in all material respects with the Accounting Standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and also the guidelines issued by the Securities and Exchange Board of India (SEBI).

The accounting policies adopted in the preparation of Financial Statements are consistent with those of previous year, except for the change in accounting policy relating to Depreciation which arose on account of applicability as per the provisions of Companies Act, 2013.

6. In the current year, the gains on account of exchange fluctuations on advances have been credited to the exchange fluctuation reserve account, as the management feels that the gains are of temporary nature and have occurred in a magnitude disproportionate to the normal course of business. This was as a result of adopting a conservative approach to enable consistency in the reported earnings for the period.

7. Contingent Liabilities:

i) Against Bank Guarantees issued by Banks towards financial and performance guarantees outstanding as at 31st March, 2015 amounts Rs. 2,29,97,751/- (Previous Year: Rs. 2,59,55,752/-)

ii) Appeal pending before Income Tax Administrative Tribunal for the AY 2009-10, involving Tax Amount of Rs. 28,28, 435/-

iii) Appeal pending before Income Tax Tribunal for the AY 2010-11, involving net tax payable amount of Rs. 3,85,52,400/-, including interest of Rs. 1,30,03,002/- (against which Company has MAT Credit of Rs. 2,30,19,382/-).

iv) Appeal pending before Income Tax Tribunal for the AY 2011-12, involving Net Tax payable amount of Rs. 5,84,75,130/-, including interest of Rs. 1,99,44,576/-.

v) There was a Service Tax demand amounting to Rs. 102.17 Lakhs (for the years 2010-2012, 2012-13 & 2013-14) on the Company on account of the E-Procurement contract executed in Bangladesh for the Bangladesh government, treating as 'Import of Business Support Services', against which Company filed appeal before CESTAT, Bangalore.

vi) The Company had filed application for compounding before the Reserve Bank of India for obtaining permissions under the FEMA provisions in relation to transfer of funds to the Fully Owned Subsidiary Company by the Branch which was returned back on procedural aspects and the Company is in the process of re-submitting the same.

8. Advances to Subsidiaries:

a) The Company has given advances to its wholly owned subsidiary viz., GSS Infotech CT Inc (Delaware), GSS Healthcare IT Solutions Private Limited and GSS IT Solutions Private Limited with no specific repayment schedule.

9. Employee Stock Options:

An application for in - principle approval for listing of 20,00,000 shares has been made to the stock exchanges under the name & style "GSS Infotech Limited Restricted Employee Stock Option Plan 2013", which got approved by the members at AGM held on 19.7.2013 and subsequently got approved by NSE & BSE. However, there was no grant of options by the Board to the eligible employees.

10. Investments:

The Company has an investment in the form of 1500 Equity Shares (Previous year : 1,500 equity shares) in M/s GSS Infotech Inc (Delaware), which is a 100% Subsidiary Company, amounting to Rs.87,34,80,744/-(Previous Year : Rs. 222,27,79,820/-). The Company evaluates the carrying cost of Investment based on audited financials of the US Subsidiary Company, which is done by the local Auditor in US. During the year under review, there was impairment of goodwill in US step down subsidiaries which resulted in loss to the extent of Rs. 134,92,99,076/-. The value of these investments are taken on record, based on the audited financials of the US Subsidiary Company, as certified by the US local Auditor. As there was diminution in the value of investments in the Wholly Owned Subsidiary Company, the Company had made a provision to the extent of Rs. 134,92,99,076/- for the year under review.

11. Employee Benefits:

Defined Contribution Schemes:

The Contributions to Employees Provident Funds and Miscellaneous Provisions Act, 1952 made and charged off during the year is Rs. 59,51,739/- (Previous Year: Rs. 67,33,666/-)

Gratuity:

The Present value of obligation in respect of Gratuity to employees on termination is determined based on actuarial valuation using Projected Unit Credit Method.

The Company has created GSS Infotech Ltd Employee Group Gratuity Assurance Scheme Trust (GSSGGAST) to implement gratuity scheme and contributions are being made to the designated scheme operated by LIC of India.

12. Tax Expense:

i) Current Income tax represents tax on income payable as per relevant statutes of the respective countries recognized and provided.

ii) Minimum Alternate Tax Credit, where there is certainty in availing the tax credit against the taxes on income paid, are recognized and shown as "MAT Credit Entitlement" under Loans and Advances in the financial statements.

13.. The Company had provided the amounts payable's of Rs. 9,86,617/- in the previous years, now written off to Statement of Profit and Loss as it is not payable to the parties. Further the company also as written back the advances refundable of Rs.2,82,000/- as Income.

Considering all the facts, the Board had passed resolution confirming the write offs and written back's during the current year in the Books of Account.

14. The company has written off Accounts Receivables pertaining to UIDAI project of Setu Maharshtra to the extent of Rs. 22,12,607/-, on account of contractual clauses.

15. There are no dues to Micro and Small Enterprises specified under the Micro, Small and Medium Enterprises Development Act, 2006 as on 31st March, 2015, to the extent such parties have been identified on the basis of information available with the Company and relied on by the auditors

16. The Balances of Trade receivables, Loans and Advances and Trade payables are subject to confirmation and consequential adjustment if any required.

17. Current Assets and Loans and Advances:

In the opinion of the Board of Directors the Current assets, Loans and advances have a value realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

18. The Ministry of Corporate Affairs, Government of India, vide General circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with Section 211 of the Companies Act, 2013. Subject to fulfillment of conditions stipulated in the circular, the Company has satisfied the conditions stipulated in the circular and hence entitled to exemption. Necessary information relating to subsidiaries has been included in Consolidation of Financial statements.

19. Leases:

The Company has operating lease for office premises, which is renewable on a periodical basis and cancellable at its option. Rental expenses for operating lease recognized in Statement of Profit and Loss is Rs.1,19,65,965/-(Previous Year: Rs.1,34,59,034/-)

20. Deprecation charge for the current year came to Rs.1,24,86,332/- as compared to Rs. 1,19,91,191/- during the last year. During the year Rs. 9,94,585/- was adjusted against the Reserves and Surplus on account changes in the useful life as specified in Schedule II to the Companies Act, 2013 which came into effect from 1st April, 2014. Depreciation for the year is higher as the company was required to adopt the charging of depreciation on fixed assets according to the useful life as specified in Schedule II to the Companies Act, 2013 which came into effect from 1st April, 2014.

21. Transactions with Related Parties:

The List of Related parties with whom transactions have taken place and nature of relationship is: A) List of Related Parties:

i) Subsidiaries:

a) GSS Infotech Inc (A Delaware Company)

b) GSS IT Solutions Private Limited

c) GSS Healthcare IT Solutions Private Limited

ii) Step down Subsidiaries:

* GSS Infotech CT Inc (Formerly known as System Dynamix Corporation)

* Infovision Technologies, Inc

* GSS Infotech NY Inc (formerly ATEC Group)

* Infovista Technologies Inc

* Technovant Inc

* Global Computronics Inc (GCI)

iii) Key Management Personnel:

Mr. Bhargav Marepally Chief Executive Officer And Managing Director

iv) Mr. Ramesh Yerramsetti Director

22. Rounding off & Regrouping:

The figures are rounded off to the nearest rupee and previous year's figures have been regrouped where necessary to correspond with current year's figures.

23. The Notes referred to in the financial statements form an integral part of Accounts.


Mar 31, 2014

1. Corporate information:

GSS Infotech (GSS) is one of the fast growing managed IT Services companies, headquartered at Hyderabad, India. GSS operates worldwide through its offices in India, Middle East and the USA. A Pioneer in managed IT Services, GSS offers Cloud Enablement Services Remote Infrastructure and Application management services to customers across the globe. Over the years, GSS has established itself as a choice of providers with over 40 Fortune global customers covering Financial Services, Insurance, HealthCare, Education and Government industry segments.

A CMMi Level 5 company, GSS helps its customers reduce their CAPEX on infrastructure and helps convert it to manage- able operational expense, leveraging its premier partnerships with leading technology providers such as Microsoft, CISCO, HP, Symantec, VMWARE, BMC and NetApp. GSS Infotech offers consulting services to help customers choose the right cloud deployment models, migrates application portfolio to the cloud environment, ensures functional and per- formance equivalence of applications through its independent validation and verification services and also offers remote application & infrastructure monitoring and management services through its Global Operations Command Center in Hyderabad, India.

GSS Infotech, with an ambitious inorganic growth strategy, has been very successful through a spate of acquisitions in the USA. The company has been successful in integrating all of its overseas acquisitions and creating a globally integrated Infrastructure Management Services practice. GSS is now well positioned to capitalize on the emerging technology trends in the cloud computing arena leveraging its unparalleled expertize in Infrastructure Virtualization, Remote Infrastructure Management, Cloud Consulting and Migration services. The company offers world class services propelled by over 700 consultants consisting of MCSE''s, BS-25999 certified professionals, VMware VCP''s, Remedy CA, CCNA, CCNP, CCSE, CCVP, CCIE, CISSP, BMC Control-M professionals with Consulting, Deployment and Management expertise.

GSS Infotech provides pragmatic and unique solutions to customers looking for excellence and high-quality. Our Thought Leadership, Responsiveness, Passion and Professionalism to work as a ''Virtual Extension'' to customer''s business has always been acknowledged to be a great strength, by our customers.

2. Basis of Preparation:

The financial statements are prepared in accordance with Indian Generally Accepted Principles (GAAP) under the historical cost convention on the accrual basis. The Company has prepared the financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and relevant provisions of the Companies Act,1956.

1. In the current year, the gains on account of exchange fluctuations on advances have been credited to the exchange fluctuation reserve account, as the management feels that the gains are of temporary nature and have occurred in a magnitude disproportionate to the normal course of business. This was as a result of adopting a conservative approach to enable consistency in the reported earnings for the period.

2. Contingent Liabilities:

i.) Against Bank Guarantees issued by Banks towards financial and performance guarantees outstanding as at 31st March, 2014 amounts Rs.2,59,55,752/- (Previous Year: Rs.3,66,23,266/-)

ii.) Appeal pending before Income Tax Appellate Tribunal for the AY 2009-10, involving Tax Amount of Rs.28.21 Lakhs; and Appeal pending before Dispute Resolution Panel for the AY 2010-11, involving Tax amount of Rs.16.02 Lakhs;

iii.) There was a Service Tax demand amounting to Rs.79.38 Lakhs on part of the e''procurement contract executed in Bangladesh for the Bangladesh government, treating as ''Import of Business Support Services'' , against which Company filed appeal before CESTAT, Bangalore.

iv.) The Company had filed application for compounding before the Reserve Bank of India for obtaining permissions under the FEMA provisions in relation to transfer of funds to the Fully Owned Subsidiary Company by the Branch.

3. Claims Not Acknowledged as Debts :

On account of disputed Income Tax demand, not acknowledged as debt by the company Rs.NIL (Previous Year : Rs.NIL).

4. Advances to Subsidiaries:

a) The Company has given advances to its wholly owned subsidiary viz., GSS Infotech CT Inc (Delaware), GSS Healthcare IT Solutions Private Limited and GSS IT Solutions Private Limited with no specific repayment schedule.

b) Information pursuant to clause 32 of Listing Agreement with Stock exchanges w.r.t. Loan and Advances in the nature of loans to wholly owned subsidiaries is as given below:

5. Employee Stock Options:

An application for in – principle approval for listing of 20,00,000 shares has been made to the stock exchanges under the new scheme GSS Infotech Limited Restricted Employee Stock Option Plan 2013 as per the scheme approved by the shareholders in the Annual General Meeting held on 19th July 2014.

6. Investments:

The Company has an investment in the form of 1500 Equity Shares (Previous year : 1,500 equity shares) in M/s GSS Infotech Inc (Delaware), which is a 100% Subsidiary Company, amounting to Rs.222,27,79,820. The Company evaluates the carrying cost of Investment based on Audited Financials of the US Subsidiary Company, which is done by the local Auditor in US. During the year under review, the value of these investments are taken on record, based on the Audited Financials of the US Subsidiary Company, as certified by the US local Auditor.

Gratuity:

The Present value of obligation in respect of Gratuity to employees on termination is determined based on actuarial valuation using Projected Unit Credit Method.

The Company has created GSS Infotech Ltd Employee Group Gratuity Assurance Scheme Trust (GSSGGAST) to implement gratuity scheme and contributions are being made to the designated scheme operated by LIC of India.

9. Tax Expense:

i) Current Income tax represents tax on income payable as per relevant statutes of the respective countries recognised and provided.

ii) Minimum Alternate Tax Credit, where there is certainty in availing the tax credit against the taxes on income paid, are recognised and shown as "MAT Credit Entitlement" under Loans and Advances in the financial statements.

10. The Company had given an advance amounting to Rs.3,93,16,028/- to certain parties towards fulfillment of certain obligations. However, the said obligation was not fulfilled and the Company, despite its best efforts, could not realize Rs. 3,93,16,028/- hence these amounts accordingly became unrealizable. Further the company also as written back of the advance payable of Rs. 1,45,86,557/- which was not payable to the party.

Considering all the facts, the Board had passed resolution confirming the write offs and written back''s during the current year in the Books of Account.

11. The company has written off Accounts Receivables pertaining to branches to the extent of Rs. 2,60,59,254/- which were not recoverable, despite its best efforts to collect the same.

12. The company has written off Accounts Receivables pertaining to UIDAI project of Gujarat Social Infrastructure Develop- ment Board to the extent of Rs. 1,34,96,255/- , for non fulfillment of conditions mentioned in the agreement.

13. There are no dues to Micro and Small Enterprises as on 31st March, 2014.

14. The Balances of Trade receivables, Loans and Advances and Trade payables are subject to confirmation and consequen- tial adjustment if any required.

15. Current Assets and Loans and Advances:

In the opinion of the Board of Directors the Current assets, Loans and advances have a value realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

16. The Ministry of Corporate Affairs, Government of India, vide General circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 211 of the Companies Act, 1956. Subject to fulfillment of conditions stipulated in the circular, the Company has satisfied the conditions stipulated in the circular and hence entitled to exemption. Necessary information relating to subsidiaries has been included in Consolidation of Financial statements.

17. Leases:

The Company has operating lease for office premises, which is renewable on a periodical basis and cancellable at its option. Rental expenses for operating lease recognized in Profit and Loss account is Rs.13,459,034/- (Previous Year Rs.15,070,872/- )

20. Transactions with Related Parties:

The List of Related parties with whom transactions have taken place and nature of relationship is:

A) List of Related Parties:

i) Subsidiaries:

a) GSS Infotech CT Inc (A Delaware Company)

b) GSS IT Solutions Private Limited

c) GSS Healthcare IT Solutions Private Limited

ii) Step down Subsidiaries:

- GSS Infotech Holdings Inc

- GSS Infotech Inc

- Infovision Technologies, Inc

- Infospectrum Consulting Inc

- System Dynamix Corporation

- GSS Infotech NY Inc (formerly ATEC Group)

- Infovista Technologies Inc

- Technovant Inc

- GCI Systems Inc

- Veloce Group LLC

iii) Key Management Personnel:

Mr. Bhargav Marepally Chief Executive Officer and Managing Director

23. Rounding off & Regrouping:

The figures are rounded off to the nearest rupee and previous year''s figures have been regrouped where necessary to correspond with current year''s figures.


Mar 31, 2013

1. Corporate information:

GSS Infotech (GSS) is one of the fast growing managed IT Services companies, headquartered at Hyderabad, India. GSS operates worldwide through its offices in India, Middle East and the USA. A Pioneer in managed IT Services, GSS offers Cloud Enablement Services Remote Infrastructure and Application management services to customers across the globe. Over the years, GSS has established itself as a choice of providers with over 40 Fortune global customers covering Financial Services, Insurance, HealthCare, Education and Government industry segments.

A CMMI Level 5 company, GSS helps its customers reduce their CAPEX on infrastructure and helps convert it to manageable operational expense, leveraging its premier partnerships with leading technology providers such as Microsoft, CISCO, HP, Symantec, VMWARE, BMC and NetApp. GSS Infotech offers consulting services to help customers choose the right cloud deployment models, migrates application portfolio to the cloud environment, ensures functional and performance equivalence of applications through its independent validation and verification services and also offers remote application & infrastructure monitoring and management services through its Global Operations Command Center in Hyderabad, India.

GSS Infotech, with an ambitious inorganic growth strategy, has been very successful through a spate of acquisitions in the USA. The company has been successful in integrating all of its overseas acquisitions and creating a globally integrated Infrastructure Management Services practice. GSS is now well positioned to capitalize on the emerging technology trends in the cloud computing arena leveraging its unparalleled expertize in Infrastructure Virtualization, Remote Infrastructure Management, Cloud Consulting and Migration services. The company offers world class services propelled by over 700 consultants consisting of MCSE''s, BS-25999 certified professionals, VMware VCP''s, Remedy CA, CCNA, CCNP, CCSE, CCVP, CCIE, CISSP, BMC Control-M professionals with Consulting, Deployment and Management expertise.

GSS Infotech provides pragmatic and unique solutions to customers looking for excellence and high-quality. Our Thought Leadership, Responsiveness, Passion and Professionalism to work as a ''Virtual Extension'' to customer''s business has always been acknowledged to be a great strength, by our customers.

2. Basis of Preparation:

The financial statements are prepared in accordance with Indian Generally Accepted Principles (GAAP) under the historical cost convention on the accrual basis. The Company has prepared the financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and relevant provisions of the Companies Act, 1956.

3. Closure of Accounting Year

For the current period the company closed its financial year as of 31st March, 2013 for a period of 12 months. The company closed the previous year financial statements for 9months ended 31, March, 2012. Therefore the figures as of 31st March, 2013 are not comparable to the previous years figures.

4. The figures are rounded off to the nearest rupee and figures of the previous year are regrouped and reclassified wherever necessary to confirm to the current year figures.

5. In the current year, the gains on account of exchange fluctuations on advances have been credited to the exchange fluctuation reserve account, as the management feels that the gains are of temporary nature and have occurred in a magnitude disproportionate to the normal course of business. This was as a result of adopting a conservative approach to enable consistency in the reported earnings for the period.

6. Contingent Liabilities:

i.) Against Bank Guarantees issued by Banks towards financial and performance guarantees outstanding as at 31st March, 2013 amounts R3,66,23,266/-/- (Previous Year: R6,59,02,266-)

7. Claims Not Acknowledged as Debts :

On account of disputed Income Tax demand, not acknowledged as debt by the company RNIL (Previous Year '' NIL).

8. Advances to Subsidiaries:

a) The Company has given advances to its wholly owned subsidiary viz., GSS Infotech Inc and GSS IT Solutions Private Limited with no specific repayment schedule.

b) Information pursuant to clause 32 of Listing Agreement with Stock exchanges w.r.t. Loan and Advances in the nature of loans to wholly owned subsidiaries is as given below:

9. Employee Stock Options:

The Board proposed to introduce the new ESOS scheme 2013 in place of ESOS 2010 being non vesting of options by the eligible employees due to the share price fallen drastically during the financial year and all eligible employees surrendered their options. Thus, the board decided to scrap the existing ESOS 2010 scheme.

10. Employee Benefits: Defined Contribution Schemes:

The Contributions to Employees Provident Funds and Miscellaneous Provisions Act, 1952 made and charged off during the year is R52,75,500/- (Previous Year: R43,05,601/-)

Defined Benefit Plans: Leave Encashment:

The Present value of obligation in respect of Earned Leave Encashment payable to employees on termination is determined, recognized and charged off during the year are as under:

Gratuity:

The Present value of obligation in respect of Gratuity to employees on termination is determined based on actuarial valuation using Projected Unit Credit Method.

The Company has created GSS Infotech Ltd Employee Group Gratuity Assurance Scheme Trust (GSSGGAST) to implement gratuity scheme and contributions are being made to the designated scheme operated by LIC of India.

Tax Expense:

i) Current Income tax represents tax on income payable as per relevant statutes of the respective countries recognised and provided.

ii) Minimum Alternate Tax Credit, where there is certainty in availing the tax credit against the taxes on income paid, are recognised and shown as "MAT Credit Entitlement" under Loans and Advances in the financial statements.

11. Note on Exceptional Item:

"The Company had given an advance amounting to R9,27,50,000 to certain parties towards fulfilment of certain obligations. However, the said obligation was not fulfilled and the Company, despite its best efforts and initiating legal action , could not realize R7,79,50,000/- hence these amounts accordingly became unrealizable.

Considering all the facts, the Board had passed resolution confirming the write offs during the current year in the Books of Account.

12. There are no dues to Micro and Small Enterprises as on 31st March, 2013.

13. The Balances of Trade receivables, Loans and Advances and Trade payables are subject to confirmation and consequential adjustment if any required.

14. Current Assets and Loans and Advances:

In the opinion of the Board of Directors the Current assets, Loans and advances have a value realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

15. The Ministry of Corporate Affairs, Government of India, vide General circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 211 of the Companies Act, 1956. Subject to fulfillment of conditions stipulated in the circular, the Company has satisfied the conditions stipulated in the circular and hence entitled to exemption. Necessary information relating to subsidiaries has been included in Consolidation of Financial statements.

16. Leases:

The Company has operating lease for office premises, which is renewable on a periodical basis and cancellable at its option. Rental expenses for operating lease recognized in Profit and Loss account is R15,070,872/- (Previous Year R13,284,850/- )

17. Segment Reporting: Business Segments:

The Company operates in a single business segment i.e., Software Services.

18. Transactions with Related Parties:

The List of Related parties with whom transactions have taken place and nature of relationship is:

A) List of Related Parties:

i) Subsidiaries:

a) GSS Infotech Inc (A Delaware Company)

b) GSS IT Solutions Private Limited

ii) Step down Subsidiaries:

- Infovision Technologies, inc

- Infospectrum Consulting Inc

- GSS Infotech CT Inc (formerly System Dynamix Corporation )

- GSS Infotech NY Inc (formerly ATEC Group)

- Infovista TechnologiesInc

- Technovant Inc

- GCI Systems Inc

- Veloce Group LLC

iii) Key Management Personnel:

a) Mr. Bhargav Marepally Chief Executive Officer

And Managing Director

b) Mr. Ramesh Yerramsetti Director

19. The other particulars as required are not given as the same are not applicable to the Company for the Current Year.

20. Rounding off & Regrouping:

The previous year''s figures have been regrouped where necessary to correspond with current year''s figures. The figures are rounded off to the nearest rupee. The financial statements are prepared as per the Revised Schedule VI effective from 1st April 2011 for preparation of financial statements, which has significant impact on the disclosures and presentations made in the financial statements. There are, however, no material issues requiring presentation of specific reconciliation statements.

21. The Notes referred to in the financial statements form an integral part of Accounts.


Mar 31, 2012

A. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- each. Each share holder of equity shares is entiltled to one vote per share

Cash credit from banks is secured against the margin money deposits. Tangible assets and secured charge of trade receivables. Cash credit will be repayable on demand and carries interest @ 14.25%

1.1. COMPANY OVER VIEW:

GSS Infotech (GSS) is one of the fast growing managed IT Services companies, headquartered at Hyderabad, India. GSS operates worldwide through its offices in India, Middle East and the USA. A Pioneer in managed IT Services, GSS offers Cloud Enablement Services Remote Infrastructure and Application management services to customers across the globe. Over the years, GSS has established itself as a choice of providers with over 40 Fortune global customers covering Financial Services, Insurance, HealthCare, Education and Government industry segments.

A CMMI Level 5 company, GSS helps its customers reduce their CAPEX on infrastructure and helps convert it to manageable operational expense, leveraging its premier partnerships with leading technology providers such as Microsoft, CISCO, HP, Symantec, VMWARE, BMC and NetApp. GSS Infotech offers consulting services to help customers choose the right cloud deployment models, migrates application portfolio to the cloud environment, ensures functional and performance equivalence of applications through its independent validation and verification services and also offers remote application & infrastructure monitoring and management services through its Global Operations Command Center in Hyderabad, India.

GSS Infotech, with an ambitious inorganic growth strategy, has been very successful through a spate of acquisitions in the USA. The company has been successful in integrating all of its overseas acquisitions and creating a globally integrated Infrastructure Management Services practice. GSS is now well positioned to capitalize on the emerging technology trends in the cloud computing arena leveraging its unparalleled expertize in Infrastructure Virtualization, Remote Infrastructure Management, Cloud Consulting and Migration services. The company offers world class services propelled by over 700 consultants consisting of MCSE's, BS-25999 certified professionals, VMware VCP's, Remedy CA, CCNA, CCNP, CCSE, CCVP, CCIE, CISSP, BMC Control-M professionals with Consulting, Deployment and Management expertise.

GSS Infotech provides pragmatic and unique solutions to customers looking for excellence and high-quality. Our Thought Leadership, Responsiveness, Passion and Professionalism to work as a 'Virtual Extension' to customer's business has always been acknowledged to be a great strength, by our customers.

2.1 Closure of Accounting Year

For the current period the company closed its financial year as of 31st March, 2012 for a period of 9 months. The company closed the previous year financial statements for the year ended 30th June, 2011. Therefore the figures as of 31st March, 2012 represent transactions for the period of 9 months from 1st Jul, 2011 to 31st March, 2012 and are not comparable to the previous figures.

2.2 On March 30, 2012, pursuant to approval from the Board and a Stock Purchase and Contribution Agreement, the Company, exchanged 100% shares of its two subsidiaries GSS Infotech Inc., Illinois ( 279,000 shares ) and GSS Infotech Holdings Inc. ( 1500 shares ) for 100% shares of GSS Infotech Inc., a Delaware Company( 1500 shares ) at cost.

2.3 The figures are rounded off to the nearest rupee and figures of the previous year are regrouped and reclassified wherever necessary to confirm to the current year figures.

2.4 In the current year, the gains on account of exchange fluctuations pertaining to the loans given to the Wholly owned Subsidiary GSS Infotech Inc, have been credited to the exchange fluctuation reserve account, as the loans given have been converted into equity during the year.

2.5 Contingent Liabilities:

i) Against Bank Guarantees issued by Banks towards financial and performance guarantees outstanding as at 31st March, 2012 amounts R10,66,11,450/-(Previous Year: R4,77,80,153/-)

ii) The company's income tax assessment for the previous year relevant to the Assessment year 2008.09 resulted in additional tax payable to the extent of R19,45,642/- which is disputed and appealed. Refund of taxes resulting from favorable appellate decisions on same grounds for the earlier financial years 2004.05 and 2006.07 amounting to R17,14,730/- are adjusted against the said demand. The remaining balance amounting to R2,30,912/- is not provided in the books since the dispute is same as it was in the earlier years where departmental appeals in the Income Tax Appellate Tribunal are decided in favor of the company

2.6 Claims Not Acknowledged as Debts :

On account of disputed Income Tax demand, not acknowledged as debt by the company R NIL (Previous Year Rs. NIL).

2.7 Advances to Subsidiaries:

a) The Company has given advances to its wholly owned subsidiary viz., GSS Infotech Inc and GSS IT Solutions Private Limited with no specific repayment schedule.

b) Information pursuant to clause 32 of Listing Agreement with Stock exchanges w.r.t. Loan and Advances in the nature of loans to wholly owned subsidiaries is as given below:

2.8 Employee Stock Options:

The Company had issued 200,000 Options to its employees during the previous year under ESOP, 2010 B Scheme, which can be exercisable at the market price and doesn't involve any compensation cost to be accounted.The outstanding stock options as on 31.03.2012 are 91,000 (Previous year as on 30.06.2011 are 2,00,000). The decrease in number of stock options are due to separation of employees from the organization and lapsed shares are added back to the pool account.

2.9 Employee Benefits: Defined Contribution Schemes:

The Contributions to Employees Provident Funds and Miscellaneous Provisions Act, 1952 made and charged off during the year is R 43,05,601/- (Previous Year: R 48,49,419/-)

Gratuity:

The Present value of obligation in respect of Gratuity to employees on termination is determined based on actuarial valuation using Projected Unit Credit Method.

The Company has created GSS Infotech Ltd Employee Group Gratuity Assurance Scheme Trust (GSSGGAST) to implement gratuity scheme and contributions are being made to the designated scheme operated by LIC of India.

2.10 Tax Expense:

i) Current Income tax represents tax on income payable as per relevant statutes of the respective countries recognised and provided.

ii) Minimum Alternate Tax Credit, where there is certainty in availing the tax credit against the taxes on income paid, are recognised and shown as "MAT Credit Entitlement" under Loans and Advances in the financial statements.

2.11 Note on Exceptional Item:

During the year, the company provided depreciation/amortization of software that was purchased in the year 2009-10. However, over the last 2 years, owing to various developments in-house and changes in implementation of various modules with the help of other management and reporting tools, the management, as at the year end, came to a conclusion that this software along with all its modules, post implementation, had outlived its useful life and hence the written down value was depreciated fully. This was treated as an exceptional item in the profit and loss account.

2.12 Conversion of loan into equity:

The company, pursuant to an agreement entered in the year 2009-10, made advances of R140,61,32,909.50(USD 26,398,320) to its wholly owned subsidiary i.e. GSS Infotech Inc till 31st December 2011 under the automatic approval route, for various corporate purposes including acquisitions and working capital requirements. On March 30, 2012, pursuant to approval from the Board, the company, converted the above advance into equity share capital, in order to strengthen GSS Infotech Inc's balance sheet and its financial position. The company, has made necessary filings with the relevant authorities in India

2.13 There are no dues to Micro and Small Enterprises as on 31st March, 2012.

2.14 The Balances of Trade receivables, Loans and Advances and Trade payables are subject to confirmation and consequential adjustment if any required.

2.15 Current Assets and Loans and Advances:

In the opinion of the Board of Directors the Current assets, Loans and advances have a value realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

2.16 The Ministry of Corporate Affairs, Government of India, vide General circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 211 of the Companies Act, 1956. Subject to fulfillment of conditions stipulated in the circular, the Company has satisfied the conditions stipulated in the circular and hence entitled to exemption. Necessary information relating to subsidiaries has been included in Consolidation of Financial statements.

2.17 Leases:

The Company has operating lease for office premises, which is renewable on a periodical basis and cancellable at its option. Rental expenses for operating lease recognized in Profit and Loss account is R3,284,850/- (Previous Year R1,63,61,297/-).

2.18 Transactions with Related Parties:

The List of Related parties with whom transactions have taken place and nature of relationship is: A) List of Related Parties:

i) Subsidiaries:

a) GSS Infotech Inc (A Delaware Company)

b) GSS IT Solutions Private Limited

ii) Step down Subsidiaries:

- GSS Infotech Holdings Inc

- GSS Infotech Inc

- Infovision Technologies, inc

- System Dynamix Corporation

- GSS Infotech NY Inc (formerly ATEC Group)

- Infovista Technologies Inc

- Technovant Inc

- GCI Systems Inc

- Veloce Group LLC

iii) Key Management Personnel:

a) Mr. Bhargav Marepally CEO & Managing Director

b) Mr. Ramesh Yerramsetti Director

6. The other particulars as required are not given as the same are not applicable to the Company for the Current Year.

2.19 Rounding off & Regrouping:

The previous year's figures have been regrouped where necessary to correspond with current year's figures. The figures are rounded off to the nearest rupee. The financial statements are prepared as per the Revised Schedule VI effective from 1st April 2011 for preparation of financial statements, which has significant impact on the disclosures and presentations made in the financial statements. There are, however, no material issues requiring presentation of specific reconciliation statements.

2.20 The Notes referred to in the financial statements form an integral part of Accounts.


Jun 30, 2010

(A) Company Overview

GSS America Infotech Ltd (GSSAIL) is one of the fastest growing IT consulting and Software Development Company, specializing in providing solutions for collaborative virtual enterprise, focused on providing scalable and cost-effective IT Solutions using Global Delivery Model. The Company has expanded its overseas operations to Dubai for Middle East region, Singapore and Bangladesh for APAC region.The services for the US geography are being provided through its branch at USA and through its wholly owned subsidiaries GSS America Inc and GSS Infotech Holdings Inc and step down subsidiaries Infospectrum Consulting Inc, System Dynamix Corporation and ATEC Group. GSSAIL is a SEI-CMMi - level 3, ISO 9001 and 27001 certified Company. The Company also has a dedicated Network Operations Centre (NOC). GSSAIL is intending to enter into BPO Segment through its Indian wholly Owned Subsidiary GSS IT Solutions Private Limited. GSS Americas ideas and services have resulted in technology-intensive transformations that have met the most stringent international quality standards.

1. The figures are rounded off to the nearest rupee and figures of the previous year are regrouped and reclassified wherever necessary to confirm to the current year figures.

2. As the current financial year is for a period of 12 months from July 1, 2009 to June 30, 2010 against its previous financial year of 15 months from April 1,2008 to June 30,2009, the current year figures are, strictly, not comparable to the corresponding figures of the previous financial year.

3. Contingent Liabilities:

Against Bank Guarantees issued by Banks towards financial and performance guarantees outstanding as at 30th June, 2010 amounts Rs. 4,83,26,387/- (Previous Year Rs. 22, 51,138/-)

4. Claims Not Acknowledged as Debts :

On account of disputed Income Tax Liability-Rs. 4,79,380/-(Previous Year Rs. 4,79,380/-)

5. Buy Back of Shares

In accordance with the scheme of buy back of shares through open market operations using the stock exchanges route approved by the Board of Directors during the financial year 2008-09, the company has, during the current financial year, bought back 3229 Equity Shares (Previous Year 5,59,928 Equity Shares) of Rs. 10/- each of the Company.

6. Tax Expense:

i) Current Income tax represents tax on income payable as per relevant statutes of the respective countries recognised and provided.

ii) Tax Credits, where there is certainty in availing the tax credit against the taxes on income paid, are recognised and shown as "Tax Credit Entitlements"under Loans and Advances in the financial statements.

7. Managerial Remuneration:

The Managerial Remuneration to Whole Time Directors for the year is Rs. 72,00,000/- ( Previous year- Rs. 90,00,000/-)

8. In the view of Management, no event has taken place to triggerthe need for testing its assets for impairment. Accordingly, as per the managements assessment, the carrying values of its assets as at the Balance sheet date are not higher than their corresponding recoverable amounts.

9. Leases:

The Company has operating lease for office premises, which is renewable on a periodical basis and cancellable at its option. Rental Expenses for operating lease recognized in Profit and Loss account is Rs. 3,12,42,177/- (Previous Year 4,23,16,994/-)

10. Transactions with Related Parties:

The List of Related parties with whom transactions have taken place and nature of relationship is: A) List of Related Parties:

i) Key Management Personnel:

a) Mr.BhargavMarepally C.E.O.& Managing Director

b) Mr.RameshYerramsetti Managing Director

11. The Schedules referred to in the financial statements form an integral part of Accounts.





 
Subscribe now to get personal finance updates in your inbox!