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Notes to Accounts of Indian Infotech & Software Ltd.

Mar 31, 2016

1. Corporate Information

INDIAN INFOTECH AND SOFTWARE LIMITED (the Company) is a Public Company domiciled in India and incorporated under the provision of the Companies Act, 1956. The Company is engaged in providing financial assistance for various business activities and trading & consultancy in Information Technology.

2. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules 2014, till the standards of accounting or any addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Accordingly, these financial statements have been prepared to comply in all material aspects with the Accounting Standards notified under section 211(3C) of the Companies Act, 1956, Companies (Accounting Standards) Rules, 2006, (as amended), the other relevant provisions of the Companies Act, 2013 and Reserve Bank of India Regulations in relation to Non Banking Finance Companies to the extent applicable to the Company.

All assets and liabilities have been classified as current or non-current as per the criteria set out in the schedule III to the Companies Act, 2013. Based on the nature of the products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of its assets and liabilities.

3. Summary of significant accounting policies

a. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b. Tangible fixed assets

Fixed assets, except land and buildings are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. Other expense on existing fixed assets including day-to-day repair and maintenance expenditure and cost of replacing parts are charged to the statement of profit and loss for the period.

c. Depreciation on tangible fixed assets

Deprecation on fixed assets is calculated on a WDV method using the rates specified under the Schedule XIV to the Companies Act, 1956 arrived on the basis of the useful lives estimated by the management. Useful lives of assets are determined by management by an internal technical assessment except where such assessment suggests a life significantly different from those prescribed by schedule II-part C of the companies act,2013 where the useful life is as assessed and certified by a technical expert.

d. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred. Intangible assets (goodwill) arising on consolidation or acquisition is not amortized but is tested for impairment.

The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern. Such changes are accounted for in accordance with AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies.

Gains or losses arising from derecognizing of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

e. Borrowing Cost

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a Substantial period of time to get ready for its Intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

f. Impairment of tangible and intangible assets

Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use i.e. the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognized.

g. Leases Where the Company is the lessee

Leases which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are classified as finance leases and are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as assets acquired on finance lease. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges on account of finance leases are charged to statement of profit and loss.

Leases where the less or effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight line basis over the lease term.

h. Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments - Non Current Investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

i. Revenue Recognition

(a) Revenue is being recognized as and when there is reasonable certainty of ultimate Realization.

(b) Dividend income is accounted on cash basis.

(c) Interest income is recognized on a time proportionate basis.

j. Taxes on Income

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred Income taxes reflect the impact of timing differences between taxable income and accounting Income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred tax liabilities are recognized for taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount of deferred tax asset to the extent that it is no Longer reasonably certain or virtually certain as the case may be that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain as the case may be that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period. i.e the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement." The company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

k. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

l. Provisions

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

During the year advances, Receivables and investment made are recoverable and performing, therefore management has not made any provisions for bad or doubtful asset, however 0.25% of the Standard Assets is being provided as per the notification issued by the Reserve Bank of India (RBI).

In accordance with the notification No. DNBS.222/CGM(US)-2011 dated 17-01-2011issued by the Reserve Bank of India (RBI) vide its Directions to all NBFCs to make a general provision of 0.25% of the standard assets The company has made a provision of Rs. 23,74,640/- on the standard assets as on March 31, 2016. The amount of provision on Standard assets is shown separately as Contingent provision against Standard Assets under Long Term Provisions in the Balance Sheet.

Pursuant to section 45IC of the Reserve Bank of India, 1934, during the year the company has transferred an amount of Rs. 3,43,182/- to Statutory Reserve

m. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence/ non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize the contingent liability but discloses its existence in the financial statements.

n. Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand and fixed deposits with an original maturity of three months or less with banks.

o. Segment reporting policies

The Company has only one business segment, i.e. Finance software development / IT enabled services. Accordingly the amounts appearing in the financial statements relate to this primary business segment. Further, the Company renders services in India only, and accordingly the disclosures under secondary segment are not applicable.

5. Dues to Micro and Small enterprises

There are no suppliers who are registered with the Company as micro or small enterprise as defined under "The Micro, Small and Medium Enterprise Development Act, 2006". The information regarding the status of suppliers as micro or small enterprise have been determined on the basis of information available with the Company. This has been relied upon by the auditors.


Mar 31, 2015

1. Corporate Information

INDIAN INFOTECH AND SOFTWARE LIMITED (the Company) is a Public Company domiciled in India and incorporated under the provision of the Companies Act, 1956. The Company is engaged in providing financial assistance for various business activities and trading & consultancy in Information Technology.

2. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules 2014, till the standards of accounting or any addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Accordingly, these financial statements have been prepared to comply in all material aspects with the Accounting Standards notified under section 211(3C) of the Companies Act, 1956, Companies (Accounting Standards) Rules, 2006, (as amended), the other relevant provisions of the Companies Act, 2013 and Reserve Bank of India Regulations in relation to Non Banking Finance Companies to the extent applicable to the Company.

All assets and liabilities have been classified as current or non-current as per the criteria set out in the schedule III to the Companies Act, 2013. Based on the nature of the products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of its assets and liabilities.

3. Dues to Micro and Small enterprises

There are no suppliers who are registered with the Company as micro or small enterprise as defined under "The Micro, Small and Medium Enterprise Development Act, 2006". The information regarding the status of suppliers as micro or small enterprise have been determined on the basis of information available with the Company. This has been relied upon by the auditors.


Mar 31, 2014

1. Corporate Information

INDIAN INFOTECH AND SOFTWARE LIMITED (the Company) is a Public Company domiciled in India and incorporated under the provision of the Companies Act, 1956. The Company is engaged in providing financial assistance for various business activities and trading & consultancy in Information Technology.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act 1956. The Financial statements have been prepared on an accrual basis. The accounting policies adopted in the preparation of financial statements are considered with those of previous year, except for the change in accounting policy explained below.

3) Dues to Micro and Small enterprises

There are no suppliers who are registered with the Company as micro or small enterprise as defined under "The Micro, Small and Medium Enterprise Development Act, 2006". The information regarding the status of suppliers as micro or small enterprise have been determined on the basis of information available with the Company. This has been relied upon by the auditors.


Mar 31, 2013

1. Corporate Information

INDIAN INFOTECH AND SOFTWARE LIMITED (the Company) is a Public Company domiciled in India and incorporated under the provision of the Companies Act, 1956. The Company is engaged in providing financial assistance for various business activities and trading & consultancy in Information Technology.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act 1956. The Financial statements have been prepared on an accrual basis. The accounting policies adopted in the preparation of financial statements are considered with those of previous year, except for the change in accounting policy explained below.

3) Dues to Micro and Small enterprises

There are no suppliers who are registered with the Company as micro or small enterprise as defined under "The Micro, Small and Medium Enterprise Development Act, 2006". The information regarding the status of suppliers as micro or small enterprise have been determined on the basis of information available with the Company. This has been relied upon by the auditors.

4) Scheme of Arrangement

(i) A Composite Scheme of Arrangement ("the Scheme") between Indian Infotech and Software Limited ("IISL") and Niki Metal Company Limited ("NMCL") and Lambodar Nirmit Limited ("LNL") under Sections 391 to 394 of the Companies Act, 1956 for amalgamation of NMCL and LNL with the Company into the Company has been sanctioned by the High Court of Maharashtra at Mumbai on 4th May 2012. The Scheme has become effective from the appointed date 1st April 2011.

(ii) Pursuant to the Scheme, all the assets, liability and reserves of NMCL & LNL have transferred to and vested in the Company as a going concern with effect from the appointed date 1st April 2011.

a. The amalgamation has been accounted for under the "Pooling of Interest Method" as per AS 14. Accordingly, as on appointed date, all the assets and liabilities have been taken at their book value and all the reserves identity has been preserved and added to identical reserves of IISL. The liabilities have been accounted for on their book value basis of accrual and certainty as decided by the management. However, as per the scheme the difference between Net asset value and equity shares issued to shareholders of transferor companies shall be recorded as Capital Reserve or goodwill.

b. As consideration for the amalgamation, the Company has during the year issued and allotted 32,13,02,000 Equity Shares of Rs 1/- each fully paid up in the ratio of 2 (Two) Equity Share of 1/- each of IISL for every 1 (One) Equity Shares of Rs 1/- each of LNL in the Capital of the Company, and 47,38,56,000 Equity Shares of Rs 1/- each fully paid up in the ratio of 4 (Four) Equity Share of 1/- each of IISL for every 1 (One) Equity Shares of Rs 1/- each of NMCL in the Capital of the Company.

c. The difference between the net asset value i.e Book value of Assets minus liabilities (including reserves) of the transferor companies as on the appointed date and equity shares issued to the shareholders of transferor companies on amalgamation by the transferee company of Rs. 51.60 crores has been credited to goodwill account at the time of allotment of shares.

d. Since the allotment of shares to the transferor company has been affected during the financial year, the net asset value i.e Book value of Assets minus liabilities (including reserves) of the transferor companies as on the appointed date of Rs. 27,91,15,000 which had been reflected under the head Reserves & Surplus as "Amalgamation Adjustment Account" has become Zero on allotment of shares to the shareholders of the transferor company.


Mar 31, 2012

1. Corporate Information

INDIAN INFOTECH AND SOFTWARE LIMITED (the Company) is a Public Company domiciled in India and incorporated under the provision of the Companies Act, 1956. The Company is engaged in providing finance assistance and consultancy for various business activities.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the companies Act 1956. The Financial statements have been prepared on an accrual basis. The accounting policies adopted in the preparation of financial statements are considered with those of previous year, except for the change in accounting policy explained below.

3) Dues to Micro and Small enterprises

There are no suppliers who are registered with the Company as micro or small enterprise as defined under "The Micro, Small and Medium Enterprise Development Act, 2006:'. The information regarding the status of suppliers as micro or small enterprise have been determined on the basis of information available with the Company. This has been relied upon by the auditors.

4) Scheme of Arrangement

(i) A Composite Scheme of Arrangement ("the Scheme") between Indian Infotech and Software Limited ("IISL") and Niki Metal Company Limited ("NMCL") and Lambodar Nirmit Limited ("LNL") under Sections 391 to 394 of the Companies Act, 1956 for amalgamation of NMCL and LNL with the Company into the Company has been sanctioned by the High Court of Maharashtra at Mumbai on 4th May 2012. The Scheme has become effective from the appointed date 1st April 2011.

(ii) Pursuant to the Scheme, all the assets, liability and reserves of NMCL & LNL have transferred to and vested in the Company as a going concern with effect from the appointed date 1st April 2011.

a. The amalgamation has been accounted for under the "Pooling of Interest Method" as per AS 14. Accordingly, as on appointed date, all the assets and liabilities have been taken at their book value and all the reserves identity has been preserved and added to identical reserves of IISL. The liabilities have been accounted for on their book value basis of accrual and certainty as decided by the management. However, as per the scheme the difference between Net asset lvalue and equity shares issued to shareholders of transferor companies shall be recorded as J' Capital Reserve or goodwill.

b. As consideration for the amalgamation, the Company has subsequent to the date of the balance sheet on 31st May, 2012 issued and allotted 32,13,02,000 Equity Shares of Rs 1/- each fully paid up in the ratio of 2 (Two) Equity Share of 1/- each of IISL for every 1 (One) Equity Shares of Rs 1/- each of LNL in the Capital of the Company, and 47,38,56,000 Equity Shares of Rs 1/- each fully paid up in the ratio of 4 (Four) Equity Share of 1/- each of IISL for every 1 (One) Equity Shares of Rs 1/- each of NMCL in the Capital of the Company.

c. The difference between the net asset value i.e Book value of Assets minus liabilities (including reserves) of the transferor companies as on the appointed date and equity shares issued to the shareholders of transferor companies on amalgamation by the transferee company of Rs. 51.60 crores shall be credited to goodwill account at the time of allotment of shares.

d. Since the allotment of shares to the transferor company has happened after the end of the financial year, the net asset value i.e Book value of Assets minus liabilities (including reserves) of the transferor companies as on the appointed date of Rs. 27,91,15,000 has been reflected under the head Reserves & Surplus as "Amalgamation Adjustment Account". This Account will become Zero on allotment of shares to the shareholders of the transferor company.

5) Previous year comparatives:

Till the year ended March 31, 2011, the Company was using pre-revised Schedule VI to the Act, for preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Act has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification.


Mar 31, 2010

1. Interest is accounted wherever stipulation exists in this regard.

2. Some debit/credit balances and advances are subject to confirmation.

3. Out of Loans and advances of Rs. 1,75,82,059/- a sum of Rs. 77,98,726/- is doubtful of recovery & a provision amounting to Rs. 3,89,936/- has been made in the accounts.

4. In the opinion of the Board of Directors of the Company and to the best of their knowledge and belief:

a) The value of the realization of the current assets, loans and advances, in the ordinary course of the business would not be less then the amount stated in the Balance Sheet.

b) The provision for the depreciation and all known liabilities is adequate and not in excess of the amount reasonably required.

5. Previous year figures have been reclassified and regrouped wherever necessary.

6. All figures have been rounded to the nearest rupee.

7. Additional information Pursuant to the provisions of paragraph 3, 4C, and 4D and other information pursuant to the part II of Schedule VI of the Companies Act, 1956 are not applicable to the Company.

8. Investor Education and Protection Fund indicates unpaid dividend amounting to Rs. 1,22,453/- amount due and outstanding to be credited to the Investor Education and Protection Fund.

The Company does not have outstanding dilutive potential equity shares. Consequently, the basic earnings per share and diluted earning per share of the Company remains the same.

9. RELATED PARTY DISCLOSURE :

(A) List of Related Parties.

a) Key Management Personnel

K.L. Mundra - Director

b) Associates

TECIL Chemicals & Hydro Power Ltd. Chemo

Labs Ltd.

Note: Related Party relationships have been identified by the management and relied upon by the auditors.

10. The Company does not have a full time Company Secretary as required under Section 383 of the Companies Act, 1956.

11. As per the information available with the company there are no dues outstanding to any Small Scale Industrial undertaking as defined under the Interest on Delayed Payment to Small Scale and Ancillary Industrial Undertaking Act, 1993


Mar 31, 2009

1. Interest is accounted wherever stipulation exists in this regard.

2. Some debit/credit balances are subject to confirmation.

3. Out of Loans and advances of Rs. 1,81,05,143/- a sum of Rs. 82,09,185/- is doubtful of recovery & a provision amounting to Rs. 4,10,459/- has been made in the Accounts.

4. In the opinion ofthe Board of Directors ofthe Company and to the best oftheir knowledge and belief.

a. The value of the realization of the current assets, loans and advances, in the ordinary course of the business would not be less then the amount stated in the Balance Sheet.

b. The provision for the depredation and all known liabilities is adequate and not in excess of the amount reasonably required. *

5. Contingent Liability:

Contingent liability in respect of partly paid-up shares / OFDC Rs. NIL (Previous year is also NIL/-)

6. Previous year figures have been reclassified and regrouped wherever necessary.

7. Ait figures have been rounded to the nearest rupee.

8. Additional information Pursuant to the provisions of paragraph 3,4C. and 40 and other information pursuant to the part II of Schedule VI of the Companies Act, 1956 are not applicable to the Company.

9. Investor Education and Protection Fund indicates unpaid dividend amounting to Rs. 1,68,255/- amount due and outstanding to be credited to the Investor Education and Protection Fund.

10. RELATED PARTY DISCLOSURE:

(A) List of Related Parties.

a. Key Management Personnel

K.L. Mundra - Managing Director

b. Associates

TECIL Chemicals & Hydro Power Ltd. G. D. Somani Memorial School ChemoPhamu laboratories Ltd Joshi Thermal

Note: Related Party relationships have been identified by the management and relied upon by the auditors.

11. The Company does not have a runtime Company Secretary as required under Section 383A of the Companies Act, 1956.

12. As per the information available with the company there are no dues outstanding to any Small Scale Industrial undertaking as defined under the interest on Delayed Payment to Small Scale and Ancillary Industrial Undertaking Act, 1993 .

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