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Notes to Accounts of Softsol India Ltd.

Mar 31, 2015

1. Employee benefits (AS-15):

The following tables summarizes the components of expense / benefit recognized in the Statement of Profit and Loss and Balance Sheet for the respective employee benefit plans.

2. Segment Reporting (AS-17):

The Company is engaged in the business of Software. Since the inherent nature of all software jobs are integrated and govern by the same set of risks and returns and operating in the same economic environment, these are treated as a single Business and Geographical Segment. The said treatment is in accordance with the Accounting Standard - 17, Segment Reporting.

3. Related Party Disclosures (AS-18):

Names of the related parties and nature of relationships and particulars of transactions with the said related parties during the year are as follows:

a) Name of related parties and description of relationship:

i) Key Management Personnel

Sri. Madala Srinivasa Rao, Chairman

Sri.Madala Bhaskara Rao, WTD

Sri. Mandava Srinivas, CFO

Smt. Chavali Lalitha, Company Secretary ( April 2014 to September 2014)

Mr.B.Laxman, Company Secretary ( October' 2014 to March' 2015)

ii) Subsidiary Company

SoftSol Resources Inc., USA

iii) Holding Company

SoftSol Technologies Inc., USA

Note: Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

4. Accounting for Taxes on Income (AS-22):

In terms of Accounting Standard 22, there are no deferred tax liabilities (Prev. year-Nil-) Following prudence, no deferred tax asset has been recognized (Previous year -Nil -).

5. Contingent liabilities and commitments (AS-29):

(to the extent not provided for)

As at As at Particulars 31st March 31st March 2015 2014 Rs. Rs.

A) Contingent liabilities:

(i) Claims against the company not acknowledged as debt NIL NIL

(ii) Guarantees given by the bankers 26,61,332 16,61,332

(iii) Other money for which the company is contingently liable: Guarantee given to Citi Bank, N.A., for giving Stand by letter of credit (SBLC) to the wholly owned subsidiary of the 9,00,00,000 4,80,80,000 company

B) Commitments:

Estimated amount of contracts remaining to be executed on capital account and NIL 5,00,000 not provided for

6. During the financial year 2005-06, the Govt. of A.P. allotted a land of one acre to the company, bearing Plot No.6, in Sy.No.408/1, I.T. Industries Layout, Madhurawada Village, Visakhapatnam District on outright sale basis under its ICT policy 2005-10 at a consideration of Rs.10.00 lakhs per acre vide MOU dt.13.06.2005 and Agreement for sale of land dt.23.02.2006. Accordingly, the company has paid the consideration and took possession of the same and started developing the same for its IT facility. Subsequently, on getting the permission from the Govt. of India for developing, operating and maintaining IT / ITES SEZ in the said land, the Govt. of A.P. converted the above sale of land into lease and fixed a one time lease payment of Rs.10.00 lakhs per acre and further fixed an annual lease rental of Rs.1,000/- per acre vide lease deed dated 05.02.2009. As per the above, the GOAP adjusted the amount of Rs.10.00 lakhs paid by the company towards sale consideration for the one time lease premium.

As per the lease deed, the land will be converted from leasehold to freehold after a period of 10 years from the execution of the above lease deed, subject to provisions of the SEZ Act, 2005 / SEZ Rules, 2006.

As the period of 10 years from the execution of the lease deed is not yet completed, the company is continuing to pay the annual lease rental of Rs.1,000/- and showing the said land as a leasehold land in the fixed asset schedule.

7. Trade Receivables include Rs. 1,58,35,786/- (Previous year Rs. 1,32,12,849) due from SoftSol Resources Inc., a wholly owned foreign subsidiary of this company. Maximum amount outstanding at any time during the year is Rs. 2,00,27,037/-(Prev. Years Rs. 1,12,17,750/-)

8. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

9. Previous year's figures have been regrouped wherever necessary to conform to the layout adopted in the current year.






Mar 31, 2014

1. Note: The Company has only one class of shares i.e. equity shares with equal rights for dividend and repayment. Each holder of the shares is entitled to one vote per share.

2. Note: Due by Directors or other officers of the company or any of them either severally or jointly with any persons or due by firms/ private companies in which any director is a partner or a director or a member.

3. Note: Due by Directors or other officers of the company or any of them either severally or jointly with any persons or due by firms/ private companies in which any director is a partner or a director or a member.

4. Employee benefits (AS-15):

The following tables summarizes the components of expense / benefit recognized in the Statement of Profit and Loss and Balance Sheet for the respective employee benefit plans.

5. Segment Reporting (AS-17):

The Company is engaged in the business of Software. Since the inherent nature of all software jobs are integrated and govern by the same set of risks and returns and operating in the same economic environment, these are treated as a single Business and Geographical Segment. The said treatment is in accordance with the Accounting Standard - 17, Segment Reporting.

6. Note: Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

7. Note: As the liability for Gratuity is provided on actuarial basis for all the employees of the company as a whole, the amount pertaining to the Key Management Personnel is not ascertainable and therefore not included in the above.

8. . Accounting for Taxes on Income (AS-22):

In terms of Accounting Standard 22, there are no deferred tax liabilities (Prev. year-Nil-) Following prudence, no deferred tax asset has been recognized (Previous year -Nil -).

9. Contingent liabilities and commitments (AS-29): (to the extent not provided for)

As at As at Particulars 31st March 31st March 2014 2013 Rs. Rs.

A) Contingent liabilities:

(i) Claims against the company not acknowledged as debt NIL NIL

(ii) Guarantees given by the bankers 16,61,332 27,47,614

(iii) Other money for which the company is contingently liable:

Guarantee given to Citi Bank, N.A., for giving Stand by letter of credit (SBLC) to the wholly owned subsidiary of the company 4,80,80,000 -

B) Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for 5,00,000 1,50,00,000

10. During the financial year 2005-06, the Govt. of A.P. allotted a land of one acre to the company, bearing Plot No.6, in Sy.No.408/1, I.T. Industries Layout, Madhurawada Village, Visakhapatnam District on outright sale basis under its ICT policy 2005-10 at a consideration of Rs.10.00 lakhs per acre vide MOU dt.13.06.2005 and Agreement for sale of land dt.23.02.2006. Accordingly, the company has paid the consideration and took possession of the same and started developing the same for its IT facility. Subsequently, on getting the permission from the Govt. of India for developing, operating and maintaining IT / ITES SEZ in the said land, the Govt. of A.P. converted the above sale of land into lease and fixed a one time lease payment of Rs.10.00 lakhs per acre and further fixed an annual lease rental of Rs.1,000/- per acre vide lease deed dated 05.02.2009. As per the above, the GOAP adjusted the amount of Rs.10.00 lakhs paid by the company towards sale consideration for the one time lease premium.

As per the lease deed, the land will be converted from leasehold to freehold after a period of 10 years from the execution of the above lease deed, subject to provisions of the SEZ Act, 2005 / SEZ Rules, 2006.

As the period of 10 years from the execution of the lease deed is not yet completed, the company is continuing to pay the annual lease rental of Rs.1,000/- and showing the said land as a leasehold land in the fixed asset schedule.

11. Trade Receivables include Rs. 1,32,12,849/- (Previous year Rs. NIL) due from SoftSol Resources Inc., a wholly owned foreign subsidiary of this company. Maximum amount outstanding at any time during the year is Rs. 1,32,12,849/-(Prev. Years Rs. 1,35,20,467/-)

12. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

13. Previous year''s figures have been regrouped wherever necessary to conform to the layout adopted in the current year.


Mar 31, 2013

1.1. Employee benefits (AS-15):

The following tables summarize the components of net benefit recognized in the Statement of Profit and Loss and amounts recognized in the Balance Sheet for the respective employee benefit plans.

1.2. The Company is engaged in the business of Software. Since the inherent nature of all software jobs are integrated and govern by the same set of risks and returns and operating in the same economic environment, these are treated as a single Business and Geographical Segment. The said treatment is in accordance with the Accounting Standard - 17, Segment Reporting.

1.3. Related Party Disclosures (AS-18):

Names of the related parties and nature of relationships and particulars of transactions with the said related parties during the year are as follows:

a) Name of related parties and description of relationship:

i) Key Management Personnel Sri.Madala Bhaskara Rao, WTD.

ii) Subsidiary SoftSol Resources Inc., USA

Note: Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

1.4. Contingent liabilities and commitments (AS-29): (to the extent not provided for)

As at As at Particulars 31st March 2013 31st March 2012

A) Contingent liabilities:

(i) Claims against the company not acknowledged as debt:- Disputed demands of Income-tax NIL 2,49,59,584

(ii) Guarantees and letters of credit- Guarantees given by the bankers 27,47,614 25,11,332

B) Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for 1,50,00,000 1,20,00,000

1.4.2. During the financial year 2005-06, the Govt, of A.P. allotted a land of one acre to the company, bear- ing Plot No.6, in Sy.No.408/1,1.T. Industries Layout, Madhurawada Village, Visakhapatnam District on outright sale basis under its ICT policy 2005-10 at a consideration of Rs. 10.00 lakhs per acre vide MOU dt. 13.06.2005 and Agreement for sale of land dt.23.02.2006. Accordingly, the company has paid the consideration and took possession of the same and started developing the same for its IT facility. Subsequently, on getting the permission from the Govt, of India for developing, operating and main- taining IT / ITES SEZ in the said land, the Govt, of A.P. converted the above sale of land into lease and fixed a one time lease payment of Rs.10.00 lakhs per acre and further fixed an annual lease rental of Rs.1,000/- per acre vide lease deed dated 05.02.2009. As per the above, the GOAP adjusted the amount of Rs. 10.00 lakhs paid by the company towards sale consideration for the one time lease premium.

As per the lease deed, the land will be converted from leasehold to freehold after a period of 10 years from the execution of the above lease deed, subject to provisions of the SEZ Act, 2005 / SEZ Rules, 2006.

As the period of 10 years from the execution of the lease deed is not yet completed, the company is continuing to pay the annual lease rental of Rs. 1,000/- and showing the land as a leasehold land in the fixed asset schedule.

1.4.3. Sundry Debtors include ^ NIL (Previous year Rs.95,08,785/-) due from SoftSol Resources Inc., a wholly owned foreign subsidiary of this company. Maximum amount outstanding at any time during the year is Rs.l,35,20,467/-(Prev. Years Rs.1,77,88,398/-)

1.4.4. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

1.4.5. As per the scheme of buyback of company''s shares approved in financial year 2009-10, during the year, the company bought back 2,08,197 (Previous Year 5,58,586)equity shares at a total cost of Rs.1,33,61,550/- (Previous Year Rs.3,57,86,315/-). Towards this, an amount of Rs.20,81,970/-, being the amount equivalent to the face value of shares bought back was transferred from statement of Profit & Loss to the Capital Redemption Reserve Account and an amount of Rs. 1,12,79,5 80/- (Prev. Year Rs.3,02,00,455/-) being the amount equivalent to the difference amount between the face value and the actual consideration paid for the shares bought back, was utilized from the balance available in securities premium account.

1.4.6. Previous year''s figures have been regrouped wherever necessary to conform to the layout adopted in the current year.


Mar 31, 2012

1. General Information:

SoftSol India Limited is engaged in development and export of software solution.

2. Contingent Liabilities not provided for:

Particulars As at 31st March 2012 As at 31st March 2011

a) Estimated amount of contracts remaining to be executed on capital account and not provided for 1,20,00,000 1,20,00,000

b) Guarnatees given by the bankers 25,11,332 20,75,000

c) Disputed demands of Income-tax. 2,67,92,384 2,67,92,384

3. Employee benefits:

The following tables summarize the components of net benefit recognized in the Profit and Loss account and amounts recognized in the Balance Sheet for the respective employee benefit plans.

4. The Company is engaged in the business of Software solutions. Accordingly, disclosure of segment information as prescribed in the Accounting Standard 17 "Segment Reporting" is not applicable.

5 In terms of Accounting Standard 22 "Accounting for Taxes on Income" (AS 22) issued by The Institute of Chartered Accountants of India, the Company has accounted for the deferred taxes. The following are the components of deferred tax Assets.

In view of lack of certainty of reversal, no deferred Tax Asset is recognised.

6. The Land of one acre purchased by the company during the financial year 2005-06 was covered under Special Economic Zone vide notification No.S.0.565(E) Dt. 11.04.2007 by Government of Andhra Pradesh. The company entered into lease agreement with Andhra Pradesh Industrial Infrastructure Corporation Limited for a period of 99 years on payment of Rs. 1,000/- per annum towards lease rentals. As per the deed the company is given an option to reconvert the leasehold land to freehold land after a period of 10 year subject to the provisions of SEZ Act, 2005 and SEZ rules without any further payment.

Accordingly the Land, which is treated as freehold during earlier years has been shown as Leasehold Land.

7. As per the information available with the company none of the suppliers informed the company regarding their status as defined under the "Micro, Small and Medium Enterprises Development Act, 2006". Accordingly the information regarding the dues to such suppliers could not be furnished.

8. Fixed Deposit for Rs.25,11,332/- (Previous year Rs.20,75,000/) are in lien with Bankers towards margin against guarantees issued by them.

9. As required by Accounting Standard (AS 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the management has carried out the assessment of impairment of assets and no impairment loss exists during the year.

10. a) In the opinion of the management, the Current Assets, Loans and Advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business.

b) Sundry Debtors includes an amount of ^95,08,785/- (Previous year Rs.50,23,125/-) due from a wholly owned foreign subsidiary Company viz., SoftSol Resources Inc.

11. The Board of Directors of the company vide resolution dated 24th October, 2011 approved buyback of 12,90,000 equity shares of Rs.10/- each at a price not exceeding Rs.65/- per share and total cost of buyback is restricted to Rs. 7,00,00,000/-. During the year the company bought back 5,58,586 ( Previous Year 52,604 ) equity shares atRs.3,57,86,315/- (Previous Year Rs.28,78,854/-) inclusive of premium of Rs.3,02,00,455/-(Previous Year Rs.23,52,814/-). The premium of Rs.3,02,00,455/- is adjusted against share premium account and redemption reserve of Rs.55,85,860/- being the face value of shares bought back, created.

12. Previous year figures have been regrouped wherever necessary.


Mar 31, 2011

1. The Land of one acre purchased by the company during the financial year 2005-06 was covered under Spe- cial Economic Zone vide notification No.S.0.565(E) Dt.11.04.2007 by Government of Andhra Pradesh. The company entered into lease agreement with Andhra Pradesh Industrial Infrastructure Corporation Limited for a period of 99 years on payment of Rs. 1,000- per annum towards lease rentals. As per the deed the company is given an option to reconvert the leasehold land to freehold land after a period of 10 year subject to the provisions of SEZ Act, 2005 and SEZ rules without any further payment.

Accordingly the Land, which is treated as freehold during earlier years has been shown as Leasehold Land.

2. As per the information available with the company none of the suppliers informed the company regarding their status as defined under the "Micro, Small and Medium Enterprises Development Act, 2006". Accordingly the information regarding the dues to such suppliers could not be furnished.

3. In terms of Accounting Standard 22 "Accounting for Taxes on income" (AS 22) issued by the Institute of Chartered Accountants of India, the Company has accounted for the deferred taxes during the year.

Major components of Deferred Tax on account of timing differences:

4. Fixed Deposit for Rs.20,75,000/- (Previous year Rs.20,75,000/) are in lien with Bankers towards margin against guarantees issued by them.

5. As required by Accounting Standard (AS 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the management has carried out the assessment of impairment of assets and no impairment loss exists during the year.

6. a) In the opinion of the management, the Current Assets, Loans and Advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business.

b) Sundry Debtors includes an amount of Rs.50,23,125/- (Previous year Rs.2,16,67,200/-) due from a wholly owned foreign subsidiary Company viz., SoftSol Resources Inc.

7. The Board of Directors of the company vide resolution dated 30th July 2009 approved buyback of 14,00,000 equity shares of Rs. 10/- each at a price not exceeding Rs.55/- per share and total cost of buyback is restricted to Rs. 7,00,00,000/-. During the year the company bought back 52,604 (Previous Year 9,85,708)equity shares at Rs. 28,78,854/- ( Previous Year Rs.5,37,91,383/-)inclusive of premium of Rs. 23,52,814/-(Previous Year Rs.4,39,34,303/-). The premium of Rs.23,52,814/- is adjusted against share premium account and redemption reserve of Rs.5.26.040/- beine the face value of shares boueht back, created.

8. There are no separate reportable segments as per the accounting Standard -17 " Segmental Reporting " is- sued by the Institute of Chartered Accountants of India.

9. The details of related party transactions in terms of Accounting Standard (AS) 18 are as follows: i) Key Management Personnel

Sri Madala Bhaskara Rao, Whole time Director ii) a) Subsidiary : M/s SoftSol Resources Inc USA (SRI)

b) Associate : M/s SoftSol Technologies Inc, USA (STI)

10. Employee Benefits:

The following table summaries the components of the net benefit recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans.

11. Previous year figures have been regrouped wherever necessary.


Mar 31, 2010

1. The Land of one acre purchased by the company during the financial year 2005-06 was covered under Special Economic Zone vide notification No.S.0.565(E) Dt. 11.04.2007 by Government of Andhra Pradesh. The company entered into lease agreement with Andhra Pradesh Industrial Infrastructure Corporation Limited for a period of 99 years on payment of Rs. 1,000- per annum towards lease rentals. As per the deed the company is given as an option to reconvert the leasehold land to freehold land after a period of 10 yeas subject to the provisions of SEZ Act, 2005 and SEZ rules without any further payment. Accordingly the Land, which is treated as freehold during earlier years has been shown as Leasehold Land.

2. None of the suppliers provided information to die Company regarding their status as defined under die "Micro, Small and Medium Enterprises Development Act, 2006". Accordingly the information regarding the dues to such suppliers could not be furnished.

3. In terms of Accounting Standard 22 "Accounting for Taxes on income" (AS 22) issued by the Institute of Chartered Accountants of India, the Company has accounted for the deferred taxes during the year. Under prudential concept, the Board of directors decided to recognize the deferred tax asset to the extent of deferred tax liability existing in the books.

4. Fixed Deposit for Rs.20,75,000/- (Previous year Rs.20,75,000) are in lien with Bankers towards margin against guarantees issued by them.

5. As required by Accounting Standard (AS 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the management has carried out the assessment of impairment of assets and no impairment loss exists during the year.

6. 6 year National saving certificates of the face value of Rs.6,000/-(Previous year Rs.6,000/-) shown under investments are in die name of the employees of the company and were pledged with various Government Departments as security.

7. a) In the opinion of the management, the Current Assets, Loans and Advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business.

b) Sundry Debtors includes an amount of Rs.2,16,67,200/- (Previous year Rs. 1,01,90,000/-) due from a wholly owned foreign subsidiary Company viz., SoftSol Resources Inc.

8. The Board of Directors of the company vide resolution dated 30th July 2009 approved buyback of 14,00,000 equity shares of Rs. 10/- each at a price not exceeding Rs.55/- per share and total cost of buyback is restricted to Rs.7,00,00,000/ During the year the company bought back 9,85,708 equity shares at Rs. 5,37,91,383/- inclusive of premium of Rs. 4,39,34,303/-. The premium of Rs. 4,39,34,303/- is adjusted against share premium account and redemption reserve of Rs.98,57,080/- being the face value of shares bought back, created

9. Contingent liabilities not provided for on account of:

a) Guarantees given by the bankers 20,75,000 20,75,000

b) Claims against the company not acknowledged as debts 10,91,266 5,95,521

c) Disputed demands of Income Tax 30,36,473 1,82,38,564

10. There are no separate reportable segments as per the accounting Standard -17 " Segmental Reporting " issued by the Institute of Chartered Accountants of India.

11. The details of related party transactions in terms of Accounting Standard (AS) 18 are as follows :

i) Key Management Personnel

Sr. Madala Bhaskara Rao, Whole time Director

ii) a) Subsidiary : M/s. SoftSol Resources Inc., USA (SRI)

b) Associate : M/s. SoftSol Technologies Inc., USA (STI)

12. Employee Benefits:

The following table summaries the components of the net benefit recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans.

The estimates of future salary increase; considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

13. Previous year figures have been regrouped wherever necessary.

 
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