Mar 31, 2018
1.1 Cash creditfrom Bankof Maharashtra and Canara Bank are secured by
(a) First Charge by way of hypothecation of the companyâs entire Stocks of Raw Materials, Semi-finished and Finished goods, consumables stores and spares and such other movables including Book debts, bills whether documentary or clean, outstanding monies, receivables, and other Current Assets ofthe company both present and future ranking pari passu for all lending bankers.
(b) Hypothecation/FirstChargeonall unencumbered fixed Assets ofthe company both presentand future
(c) Equitable Mortgage of Land & Buildings in the name ofthe company
(d) Counter Guarantee ofthe company and Personal guarantee of itsdirectorsand extension of First Charge on the Current assets
1.2 Loans from Directors taken duringthe financial year 2017-18 carry a interest of 12% p.a. and repayable in 1 year
2 Employee Benefits
The Liability for Gratuity has been determined by an actuary in conformity with the principle set out in Accounting Standard 15 (Revised) the details of which are as under:
Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below:
3 Segment Reporting
The Companyâs operations predominantly relate to providing Integrated Solutions, Technical Division, Projects Division and Software Development Services to customers globally operating. Accordingly, the primary basis of segmental information set out in these financial statements, and secondary segmental reporting is performed on the basis ofthe geographical location. Income & Direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders ofthe costs are allocated on the bases of available information. Certain expenses, which form a significant component of total expenses, are not specifically allocable to specific segments. The Company believes that it is not practicable to provide segmental disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as âunallocableâ and directly charged against total income.
4 Related Party disclosure
â As per Indian Accounting Standard 24, the disclosures of transactions with the related parties as defined in the Accounting Standard and certified by the management
5 Financial instruments:
Disclosure pursuant to Ind AS 107 âFinancial Instruments: Disclosuresâ
Capital Management
The company ensures financial flexibility and diverse sources of financing and their maturities to minimize liquidity risk while meeting investment requirements. The objectivity of companyâs capital management is to maximize the total shareholder return by optimizing cost of capital through flexible capital structure that supports growth. The company maintains financial strength to maintain/enhance credit ratings.
The Company determines the amount of capital required on the basis of budgets and estimates made annually and reviewing periodically the operating plan and long-term strategic plans. The company meets its funding requirement through internal accruals and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Netdebtto equity ratio and maturity profile of the overall debt portfolio of the Company.
For the purpose of capital management, capital includes issued equity capital, securities premium and all other revenue reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The companyâs exposure to market risk is primarily on account of foreign currency exchange rate risk.
- Interest rate risk
The companyâs total borrowings represent short term borrowings (WCDL) and the interest rate primarily basing on the companyâs credit rating and also the changes in the financial market. Company continuously monitoring over all factors influence rating and also factors which influential the determination of the interest rates by the banks to minimize the interest rate risks.
- Foreign currency risk
The company has several balances in foreign currency and consequently the company is exposed to foreign exchange risk. The risk on companyâs foreign currency changes commensurate with the size of the company is not material. The company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.
We summarize below the financial instruments which have the foreign currency risks as atMarch 31,2018, March 31,2017 The carrying amounts of the Companyâs substantial foreign currency denominated monetary assets and monetary liabilities based on gross exposure at the end of the reporting period is as under:
Credit risk management
Credit Risk is the risk that a customer or counterparty to a financial asset fails to perform or pay the amount due causing financial loss to the company. The maximum exposure of the financial assets represents trade receivables and work in progress.
The company has a prudent and conservative process for managing its credit risk in the course of its business activities. The risk on trade receivables, work in progress is limited as the customers of the company mainly consist of Government promoted entities having a strong credit worthiness. For doubtful receivables the company uses a provision matrix to compute the expected credit loss allowances for trade receivables. The provision Matrix takes into account ageing of accounts receivables and the companyâs historical experience of the customers and financial conditions of the customers.
Liquidity risk management
Liquidity risk arises from the companyâs inability to meet its cash flow commitments on time. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewingthe liquidity position.
6 Other disclosures pursuant to Ind AS 107 âFinancial instruments: Disclosuresâ:
(i) Category wise classification of applicable Financial Instruments:
(ii) Fair value of financial assets and financial liabilities measured at amortised cost
Financial assets measured at amortised cost:
The carrying amounts of trade receivables and cash and cash equivalents are considered to be the same as their fair values due to their short-term nature. The carrying amounts of long term loans given with floating rate of interest are considered to be close to the fair value.
Financial liabilities measured at amortised cost:
The carrying amounts of trade and other payables are considered to be the same as their fair values due to their shortterm nature. The carrying amounts of borrowings with floating rate of interest are considered to be close to the fair value.
7 First-time adoption of Ind-AS
(i) These financial statements, for the year ended March 31, 2018 have been prepared in accordance with the Ind AS. For the purpose of transition to Ind AS, the Company has complied with Ind AS 101 - âFirst time adoption of Indian Accounting Standardâ for exemptions and exceptions, on transition date (i.e. April 1, 2016) and Indian GAAP is the previous GAAP followed by the company.
(ii) The transition to Ind AS has resulted in changes in the presentation of financial statements, disclosures in the notes and accounting policies and principles. The accounting policies set out in Notel have been applied in preparing the separate financial statements for the year ended March 31,2018 and the comparative information.
8 The effect of the Companyâs transition to Ind AS is summarized as reconciliations of Equity, Profit and Total comprehensive income with Indian GAAP as explained below:
(a) Reconciliation of equity as previously reported under Indian GAAP to Ind AS.
(b) Reconciliation of profit or loss and Total Comprehensive income as previously reported under Indian GAAP to Ind AS.
(c) Adjustments to the statement of cash flows.
9 Deferred Tax
Tax charged to Profit and Loss account is after considering deferred tax impact for the timing difference between accounting income and taxable income.
10 There are no micro and small scale enterprises to which the company owes dues, as at 31 st March 2018. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.
11 Figures for the corresponding year ended March 31,2017, wherever necessary, have been regrouped, recast, rearranged as perthe Schedule III of Companies Act, 2013.
Mar 31, 2016
1 582420 shares are pledged (Previous Year 548700) in favour of Canara Bank as per terms and Conditions of their Sanction Letter
2 Working Capital Loans given by Bank of Maharashtra are secured by way of hypothecation of Land and Buildings situated at Jubilee hills Hyderabad and Srinagar colony, Computers and Peripherals, Stock in trade, Software in process, book debts and personal guarantee given by the Vice Chairman & Managing Director, Whole-Time Director and Director of the Company.
3 Working Capital Loan taken from Canara Bank is secured by way of hypothecation on paripassu first charge basis along with Bank of Maharashtra and collateral Security of Industrial Land and Buildings situated at Annaram Village, Hyderabad by way of Equitable Mortgage on exclusive charge basis.
* Based on the information available with the company, on which auditors relied upon.
4 Total provision made for Doubtful Debts during the Financial Year is Rs. 227.32 lakh (Previous year Rs.76.72 lakh).
5 Total provision made for SLAs during the Financial Year Is Rs.132.55 lakh (Previous year Rs.41.38 lakh), Provision written back of Rs.1.39 Lakh (previous year Rs.320.63 lakh).
6 Include Foreign Exchange Loss of Rs. NIL lakh (previous year Rs.0.10 lakh).
7. Commitments and Contingencies:
a. The estimated amount of contracts remaining to be executed on capital account, and not provided for (net of advances) is Rs. NIL as at March 31, 2016 (Previous year Rs. Nil).
b. The company has outstanding guarantees of Rs.5,157.64 Lakhs and Letter of credit Rs.2009.90 Lakhs as at March 31, 2016 (previous year Bank Guarantees Rs.1,990.30 Lakh and Letter of credit Rs.546.79 Lakh).
8. Employee Benefits:
The company has adopted Accounting Standard (AS) 15 (revised 2005) on Employee Benefits.
a. The company has recognized, in the profit and loss account for the year ended March 31, 2016, below mentioned defined contribution plans.
9. In the opinion of the board of directors, the Current assets, Loans & Advances are expected to realize approximately the values stated in the accounts in the ordinary course of business, and provisions for all known liabilities have been adequately made in the accounts.
10. Deferred Tax
Tax charged to Profit and Loss account is after considering deferred tax impact for the timing difference between accounting income and taxable income.
11. Segmental Reporting:
The Company''s operations predominantly relate to providing Integrated Solutions, Technical Division, Projects Division and Software Development Services to customers globally operating. Accordingly, the primary basis of segmental information set out in these financial statements, and secondary segmental reporting is performed on the basis of the geographical location.
Income & Direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of the costs are allocated on the bases of available information. Certain expenses, which form a significant component of total expenses, are not specifically allocable to specific segments. The Company believes that it is not practicable to provide segmental disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "Unallocable" and directly charged against total income.
Note: Figures in italics represent previous year''s figures. Previous year''s figures have been regrouped to correspond with the current year''s figures.
b. Geographical Segments:
The company has no transactions with parties outside India, so this segment isn''t applicable for the company.
12. Sundry debtors, sundry creditors, other liabilities, loans and advances, advances from customers etc. are subject to confirmation and reconciliation. Necessary adjustments, if any will be made when the accounts are reconciled and settled. However the management is fairly confident that the company will not face any undue risk due to this factor.
13. Micro and Small Scale business entities:
There are no micro and small scale enterprises to which the company owes dues, as at March 31, 2016. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.
14. Figures for the corresponding year ended March 31, 2015, wherever necessary, have been regrouped, recast, rearranged as per the Schedule III of Companies Act, 2013.
Mar 31, 2015
1. 548700 Shares are pledged (Previous Year 623700) in favour of
Canara Bank as per terms and conditions of their sanction letter.
Working Capital Loans given by Bank of Maharastra are secured by way of
hypothecation of Land and Buildings situated at Jubilee hills Hyderabad
and Srinagar colony, Computers and Peripherals, Stock in trade,
Software in process, book debts and personal guarentee given by the
Vice Chairman & Managing Director, Whole-Time Director and Director of
the Company.
Working Capital Loan taken from Canara Bank is secured by way of
hypothecation on paripassu first charge basis along with Bank of
Maharastra and collateral Security of Industrial Land and Buildings
situated at Annaram Village, Hyderabad by way of Equitable Mortagage on
exclusive charge basis.
2. Commitments and Contingencies:
a. The estimated amount of contracts remaining to be executed on
capital account, and not provided for (net of advances) is Rs.NIL as at
March 31, 2015 (Previous year Rs. 10.25 Lakh).
b. The company has outstanding guarantees of Rs. 1,990.30 Lakhs and
Letter of credit Rs 546.79 Lakhs as at 31st March 2015 (previous year
Bank Guarantees Rs. 3,635.24 Lakh and Letter of credit Rs NIL).
The company has adopted Accounting Standard (AS) 15 (revised 2005) on
Employee Benefits.
3. In the opinion of the board of directors, the Current assets, Loans
& Advances are expected to realize approximately the values stated in
the accounts in the ordinary course of business, and provisions for all
known liabilities have been adequately made in the accounts.
Tax charged to Profit and Loss account is after considering deferred
tax impact for the timing difference between accounting income and
taxable income.
4. Segmental Reporting:
The Company's operations predominantly relate to providing Integrated
Solutions, Technical Division, Projects Division and Software
Development Services to customers globally operating. Accordingly, the
primary basis of segmental information setout in these financial
statements, and secondary segmental reporting is performed on the basis
of the geographical location.
Income & Direct expenses in relation to segments are categorized based
on items that are individually identifiable to that segment, while the
remainders of the costs are allocated on the bases of available
information. Certain expenses, which form a significant component of
total expenses, are not specifically allocable to specific segments.
The Company believes that it is not practicable to provide segmental
disclosures relating to those costs and expenses, and accordingly these
expenses are separately disclosed as "unallocable" and directly charged
against total income.
5. Geographical Segments :
The company has no transactions with parties outside India, so this
segment isn't applicable for the company.
6. Related Party Transactions:
a) Name of Related Parties & relationship:
Party Name Relation
Mr. T. Gopichand & Mr.T.Gopichand Key Management Personnel (Vice
(HUF) Chairman & Managing Director), Spouse
of Mrs. T. Pavana Devi &
Brother of T.Bapaiah Chowdary.
Mrs. T. Pavana Devi Director & Spouse of Mr.T. Gopi
Chand.
Mr. K. Rama Rao Key Management Personnel (Wholetime
Director)
Mr.T.Bapaiah Chowdary Director & Brother to the Vice-
Chairman & Managing
Director (Mr.T.Gopichand)
Mr.T.Madhu Mitra Son of Vice Chairman & Managing
Director
Mr.T.Girish Son of T.Bapaiah Chowdary
7. Sundry debtors, sundry creditors, other liabilities, loans and
advances, advances from customers etc. are subject to confirmation and
reconciliation. Necessary adjustments, if any will be made when the
accounts are reconciled and settled. However the management is fairly
confident that the company will not face any undue risk due to this
factor.
8. Micro and Small Scale business entities:
There are no micro and small scale enterprises to which the company
owes dues, as at 31st March 2015. This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006 has been determined to the extent such parties have been
identified on the basis of information available with the company.
9. Figures for the corresponding year ended March 31, 2014, wherever
necessary, have been regrouped, recast, rearranged as per the Schedule
III of Companies Act, 2013.
Mar 31, 2014
1.a The Term Loan from bank is a Rupee Term Loan taken from Canara Bank
which carries interest rate of base rate 3.5% i.e 13.5% p.a.
(floating). It is repayable in 30 equal monthly instalments. Equipment
procured out of Term Loan are secured by way of Hypothecation of
Equipment on Exclusive charge basis and personal guarentee given by the
Vice Chairman & Managing Director, Whole-Time Director and Director of
the Company.
Collateral Security of Industrial Land and Shed there in Survey Nos.
179,180, 180A & 181,182, 184 & 184A situated at Annaram Village,
Jinnaram Mandal, Medak District, and Sy No. 219E of Gagilapur Village,
Quthubullapur Mandal, Ranga Reddy District, admeasuring 15 acres 19
guntas of land and 165483 Sft Plinth area of shed.
b. 6,23,700 shares are pledged in favour of Canara Bank as per terms
and Conditions of their Sanction Letter.
c. Deposits from Shareholders and others are taken during the
financial year 2010-11 carry interest of 11% p.a. and are repayable in
1 year. (Previous year - repayable in 1 year).
2.a Working Capital Loans given by Bank of Maharastra are secured by
way of hypothecation of Land and Buildings situated at Jubilee hills
Hyderabad and Srinagar colony, Computers and Peripherals, Stock in
trade, Software in process, book debts and personal guarentee given by
the Vice Chairman & Managing Director, Whole-Time Director and Director
of the Company.
b. Working Capital Loan taken from Canara Bank is secured by way of
hypothecation on paripassu first charge basis along with Bank of
Maharastra and collateral Security of Industrial Land and Buildings
situated at Annaram Village, Hyderabad by way of Equitable Mortagage on
exclusive charge basis.
c. Deposits from Shareholders are taken during the financial year
2012-13 and carry a interest of 12% p.a. and are repayable in 1 year.
3. Commitments and Contingencies:
a. The estimated amount of contracts remaining to be executed on
capital account, and not provided for (net of advances) is 10.25 lakh
as at March 31, 2014 (Previous year Rs. 83.40 lakh).
b. The company has outstanding guarantees of Rs. 3,635.24 Lakh and
Letter of credit NIL Lakh as at 31st March 2014 (previous year Bank
Guarantees Rs. 3,185.93 Lakh and Letter of credit Rs 39.06lakh).
c. Few cases relating to vendors are pending in the Courts against
which the Company is liable to pay to the Vendor. Contingent liability
is Rs. 3,14,695/-(Previous Year Rs.3,14,695/-).
d. Sales tax matters under dispute as per table below:
S. Name of the Statute Nature of the dues Amount (Rs)
No.
1 AP VAT Act, 2005 Value Added Tax 339,455
2 AP VAT Act, 2005 Value Added Tax 1,430,252
3 AP VAT Act, 2005 Value Added Tax 1,430,252
4 APGST Act, 1957 Sales Tax 2,860,507
5 APGST Act, 1957 Sales Tax 3,580,063
6 APGST Act, 1957 Sales Tax 1,430,253
7 The Kerala VAT Rules, Value Added Tax 84,16,222
2005 (Appeals), Kerala
8 The Kerala VAT Rules, Value Added Tax 61,50,240
2005
9 The Kerala VAT Rules, Value Added Tax 7,42,446
2005
10 The Kerala VAT Rules, Value Added Tax 8,52,280
2005
11 The Kerala VAT Rules, Value Added Tax 4,66,474
2005
S. Name of the Statute Period to Forum where dispute
No. which the is pending
amount relates
1 AP VAT Act, 2005 2007-08 High Court of AP
2 AP VAT Act, 2005 2006-07 High Court of AP
3 AP VAT Act, 2005 2005-06 High Court of AP
4 APGST Act, 1957 2004-05 High Court of AP
5 APGST Act, 1957 2003-04 High Court of AP
6 APGST Act, 1957 2002-03 High Court of AP
7 The Kerala VAT Rules, 2005-06 Deputy Commissioner
2005 (Appeals), Kerala
8 The Kerala VAT Rules, 2006-07 Deputy Commissioner
2005 (Appeals), Kerala
9 The Kerala VAT Rules, 2007-08 Deputy Commissioner
2005 (Appeals), Kerala
10 The Kerala VAT Rules, 2008-09 Deputy Commissioner
2005 (Appeals), Kerala
11 The Kerala VAT Rules, 2009-10 Deputy Commissioner
2005 (Appeals), Kerala
4. In the opinion of the board of directors, the Current assets, Loans
& Advances are expected to realize approximately the values stated in
the accounts in the ordinary course of business, and provisions for all
known liabilities have been adequately made in the accounts.
5. Segmental Reporting:
The Company''s operations predominantly relate to providing Integrated
Solutions, Technical Division, Projects Division and Software
Development Services to customers globally operating. Accordingly, the
primary basis of segmental information setout in these financial
statements, and secondary segmental reporting is performed on the basis
of the geographical location.
Income & Direct expenses in relation to segments are categorized based
on items that are individually identifiable to that segment, while the
remainders of the costs are allocated on the bases of available
information. Certain expenses, which form a significant component of
total expenses, are not specifically allocable to specific segments.
The Company believes that it is not practicable to provide segmental
disclosures relating to those costs and expenses, and accordingly these
expenses are separately disclosed as "unallocable" and directly charged
against total income.
6. Sundry debtors, sundry creditors, other liabilities, loans and
advances, advances from customers etc. are subject to confirmation and
reconciliation. Necessary adjustments, if any will be made when the
accounts are reconciled and settled. However the management is fairly
confident that the company will not face any undue risk due to this
factor.
7. Micro and Small Scale business entities:
There are no micro and small scale enterprises to which the company
owes dues, as at 31st March 2014. This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006 has been determined to the extent such parties have been
identified on the basis of information available with the company.
8. Figures for the corresponding year ended March 31, 2014, wherever
necessary, have been regrouped, recast, rearranged as per the new
Revised Schedule VI.
Mar 31, 2013
1.1 The Term Loan from bank is a Rupee Term Loan taken from Canara Bank
which carries interest rate of base rate 3.5% i.e 13.5% p.a.
(floating). It is repayable in 30 monthly installments. Equipment
procured out of Term Loan are secured by way of Hypothecation of
Equipment on Exclusive charge basis and personal guarantee given by the
Vice Chairman & Managing Director, Whole time Director and Director of
the Company.
Collateral Security of Industrial Land and Shed there in Survey Nos.
179,180, 180A & 181,182, 184 & 184A situated at Annaram Village,
Jinnaram Mandal, Medak District, and Sy No. 219E of Gagilapur Village,
Quthubullapur Mandal, Ranga Reddy District, admeasuring 15 acres 19
guntas of land and 165483 Sft Plinth area of shed.
1.2 5,48,700 shares are pledged in favour of Canara Bank as per terms
and Conditions of their Sanction Letter
1.3 Deposits from Shareholders & Others are taken during the finandal
year 2010-11 carry interest of 11% p.a. and are repayable in 1 years
(Previous year - repayble in 2 years)
**Lease term ranges between 3-5 years
**Finance lease obligations are secured against the leased assets.
2.1 Working Capital Loans given by Bank of Maharastra are secured by
way of hypothecation of Land and Buildings situated at Jubilee hills
Hyderabad and Srinagar colony, Computers and Peripherals, Stock in
trade, Software in process, book debts and personal guarentee given by
the Vice Chairman & Managing Director, Whole time Director and Director
of the Company.
2.2 Working Capital Loan taken from Canara Bank is secured by way of
hypothecation on paripassu first charge basis along with Bank of
Maharastra and collateral Security of Industrial Land and Buildings
situated at Annaram Village, Hyderabad by way of Equitable Mortagage on
exclusive charge basis.
2.3 Deposits from Shareholders & Others are taken during the finandal
year 2011-12 and carry a interest of 11% p.a. and are repayable in 1
year (previous year repayable in 2 years).
*Based on the information available with the company, on which auditors
relied upon.
- Total Assets acquired under Project Division are transferable to the
respective Customers at the end of the tenure of the project. "After
deducting impairment loss of Rs 110.01 lakh.
- Pertaining to CENVAT Credit of Rs 137.41 lakh on capital goods
availed during the current Financial Year 2012-13.
1. Total provision made during the year is Rs NIL lakh (Previous year
Rs 272.32 lakh), Provision written back of Rs NIL lakh (Previous year
Rs 32.02 lakh).
2. Total provision made during the year is Rs 0.43 lakh (Previous year
Rs 45.68 lakh), Provision written back of Rs 0.78 lakh (Previous year
Rs 11.39 lakh).
3. Include Foreign Exchange Loss of Rs NIL lakh (Previous year Rs
48.95 lakh).
3. Commitments and Contingencies:
a. The estimated amount of contracts remaining to be executed on
capital account, and not provided for (net of advances) is 83.40 lakh
as at March 31, 2013 (Previous year Rs.NIL lakh).
b. The company has outstanding guarantees of Rs. 3,185.93 Lakh and
Letter of credit 39.06 Lakh as at 31st March, 2013 (previous year Bank
Guarantees Rs. 6,849.20 Lakh and Letter of credit Rs nil).
c. Few cases relating to vendors are pending in the Courts against
which the Company is liable to pay to the Vendor. Contingent liability
is Rs 3,14,695/- (Previous Year Rs.3,14,695/-) .
d. The company had received an advance ruling in respect of
applicability of AP VAT on Digitization of Registered documents. The
Company has challenged the same in the Sales Tax Appellate Tribunal.
Based on the above advance ruling the Liability works out to be
Rs.13,35,723 (Previous Year Rs.57,37,753/-).
4. In the opinion of the board of directors, the Current assets, Loans
& Advances are expected to realize approximately the values stated in
the accounts in the ordinary course of business, and provisions for all
known liabilities have been adequately made in the accounts.
5. Deferred Tax
Tax charged to Profit and Loss account is after considering deferred
tax impact for the timing difference between accounting income and
taxable income.
The deferred tax liability as at 31st March, 2013 comprise of the
following:
6. Segmental Reporting:
The Company''s operations predominantly relate to providing Integrated
Solutions, Technical Division, Projects Division and Software
Development Services to customers globally operating. Accordingly, the
primary basis of segmental information set out in these finandal
statements, and secondary segmental reporting is performed on the basis
of the geographical location.
Income & Direct expenses in relation to segments are categorized based
on items that are individually identifiable to that segment, while the
remainders of the costs are allocated on the bases of available
information. Certain expenses, which form a significant component of
total expenses, are not superficially allocable to septic segments. The
Company believes that it is not practicable to provide segmental
disclosures relating to those costs and expenses, and accordingly these
expenses are separately disclosed as "unallowable" and directly
charged against total income.
7. Sundry debtors, Sundry creditors, Other liabilities, Loans and
advances, advances from customers etc. are subject to confirmation and
reconciliation. Necessary adjustments, if any will be made when the
accounts are reconciled and settled. However the management is fairly
confident that the company will not face any undue risk due to this
factor.
8. Micro and Small Scale business entities:
There are no micro and small scale enterprises to which the company
owes dues, as at 31st March 2013. This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006 has been determined to the extent such parties have been
identified on the basis of information available with the company.
9. Impairment of Assets: During the year the company has not impaired
any asset (Previous year Rs.110.01 lakh).
10. Figures for the corresponding year ended March 31, 2012, wherever
necessary, have been regrouped, recast, rearranged as per the new
Revised Schedule VI.
Mar 31, 2012
1.1 The Term Loan from bank is a Rupee Term Loan taken from Canara Bank
during the financial year 2011 -12 which carries interest rate of base
rate 3.5% i.e 13.5% p.a. (floating). It is repayable in 30 equal
monthly installments. Equipment procured out of Term Loan are secured by
way of Hypothecation of Equipment on Exclusive charge basis and
personal guarantee given by the Vice Chairman & Managing Director,
Executive Director and Director of the Company.
Collateral Security of Land and Building by way of Equitable Mortgage
on exclusive charge basis.
1.2 5,33,500 shares are pledged in favour of Canara Bank as per terms
and Conditions of their Sanction Letter
1.3 Term Loan from Bank of Maharastra are Secured by way of 1)
Hypothecation of Land situated at Jubilee hills, Hyderabad, Computers
and Peripherals, Furniture & Fixtures, Stock in trade, receivables,
Outstanding monies and 2) Personal guarantee given by the Vice Chairman
& Managing Director, Executive Director and Director of the Company
1.4 Deposits from Shareholders taken during the financial year 2010-11
carry interest of 11% p.a. and are repayable in 2 years.
2.1 Working Capital Loans given by Bank of Maharastra are secured by
way of hypothecation of Land situated at Jubilee hills Hyderabad,
Computers and Peripherals, Stock in trade, Software in process, book
debts and personal guarantee given by the Vice Chairman & Managing
Director, Executive Director and Director of the Company.
2.2 Working Capital Loan taken from Canara Bank is secured by way of
hypothecation on paripassu first charge basis along with Bank of
Maharastra
2.3 Collateral Security of Land and Building by way of Equitable
Mortgage on exclusive charge basis.
3. Commitments and Contingencies:
a. The estimated amount of contracts remaining to be executed on
capital account, and not provided for (net of advances) is Nil as at
March 31,2012 (Previous year Rs. 8.10 lakh).
b. The company has outstanding guarantees of Rs. 6,849.20 lakh as at 31
st March 2012 (previous year Rs.4,000.14 Lakh).
c. Few cases relating to vendors are pending in the Courts against
which the Company is liable to pay to the vendor, contingent liability
is Rs. 3.15 lakh (previous year Rs. 3.15 lakh).
d. The company had received an advance ruling in respect of
applicability of AP VAT on Digitization of Registered documents. The
Company has challenged the same in the Sales Tax Appellate Tribunal.
Based on the above advance ruling the Liability works out to be Rs. 57.38
lakh (Previous Year Rs.51.51 lakh).
4. In the opinion of the board of directors, the Current assets. Loans
& Advances are expected to realize approximately the values stated in
the accounts in the ordinary course of business, and provisions for all
known liabilities have been adequately made in the accounts.
5. Segmental Reporting:
The Company's operations predominantly relate to providing Integrated
Solutions, Technical Division, Projects Division and Software
Development Services to customers globally operating. Accordingly, the
primary basis of segmental information setout in these financial
statements, and secondary segmental reporting is performed on the basis
of the geographical location.
Income & Direct expenses in relation to segments are categorized based
on items that are individually identifiable to that segment, while the
remainder of the costs are allocated on the bases of available
information. Certain expenses, which form a significant component of
total expenses, are not specifically allocable to specific segments.
The Company believes that it is not practicable to provide segmental
disclosures relating to those costs and expenses, and accordingly these
expenses are separately disclosed as "unallocable" and directly charged
against total income.
a) Geographical Segment
The company has no transactions with parties outside India, so this
segment isnt applicable for the company.
6. Sundry debtors, sundry creditors, other liabilities, loans and
advances, advances from customers etc. are subject to confirmation and
reconciliation. Necessary adjustments, if any will be made when the
accounts are reconciled and settled. However the management is fairly
confident that the company will not face any undue risk due to this
factor.
7. Micro and Small Scale business entities:
There are no micro and small scale enterprises to which the company
owes dues, as at 31st March 2012.This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006 has been determined to the extent such parties have been
identified on the basis of information available with the company.
8. Impairment of Assets: During the year the company has impaired an
amount of Rs. 110.01 lakh from the assets purchased for the Bhamasha
Financial Empowerment Scheme(BFES) project.
9. Figures for the corresponding year ended March 31,2011, wherever
necessary, have been regrouped, recast, rearranged as per the new
Revised Schedule VI.
Mar 31, 2011
1. Secured Loans:
a. Term Loans taken from Bank of Maharashtra are secured by way of
hypothecation of Land situated at Jubilee Hills, Hyderabad, Computers
and Peripherals, Furniture & Fixtures, Stock in trade, receivables,
outstanding monies and personal guarantee given by the Vice-Chairman &
Managing Director, Executive Director and Director of the Company.
b. Loans taken from Bank for Vehicles Purchased are secured by
specific charge on Vehicles for which the loan is availed.
c. Term Loans taken from Finance Companies are secured by
hypothecation/mortgage of assets purchased by company from above
companies.
d. Working Capital loans and bank guarantees given by Bank of
Maharastra are secured by way of hypothecation of Land situated at
Jubilee Hills, Hyderabad, Computers and peripherals, stock in trade,
software in process, book debts and lien on company's term deposits
worth Rs.605.16 Lakh (previous year Rs.508.46 Lakh) with the bank and
personal guarantee given by the Vice Chairman & Managing Director,
Executive Director and Director of the Company.
e. FINANCE LEASE:
(ii) General description of Lease terms:
a) Lease rentals are charged on the basis of agreed terms.
b) Assets are taken on lease over a period of 3 to 5 years.
f. OPERATING LEASE
Future minimum lease rentals payable on 31.03.2011 as per the agreement
Lease payments recognized in the statement of Profit and Loss Account
for the year ended 31st March,2011 is Rs.15,559,696.
2. Commitments and Contingencies:
a. The estimated amount of contracts remaining to be executed on
capital account, and not provided for (net of advances) is Rs.8.10 lakh
as at March 31, 2011 (Previous year Rs.12.90 Lakh).
b. The company has outstanding guarantees of Rs. 4000.14 Lakh as at
31st March 2011 (previous year Rs. 2259.37 Lakh).
c. Few cases relating to vendors are pending in the Courts against
which the Company is liable to pay to Vendar. Contingent liability is
Rs. 3.15 Lakh (Previous year Rs. 3.15 Lakh)
d. During the year, the company had received an advance ruling in
respect of applicability of AP VAT on Digitization of Registered
documents. They challenged the same in the A.P High Court. Based on the
above advance ruling the Liability works out to Rs.5,151,143/-.
3. Quantitative details:
The company does trading of various kinds of computer items. It is not
practicable to give quantitative details of sales and purchases for
trading business. And also the company is engaged in the development
and maintenance of computer software. The production and sale of such
software can not be expressed in any generic unit. Hence, it is not
practicable to give the quantitative details of sales and certain
information as required under paragraphs 3,4C and 4D of Part II of
Schedule VI to the Companies Act, 1956.
4. Employee Benefits:
The company has adopted Accounting Standard (AS) 15 (revised 2005) on
Employee Benefits.
a. The company has recognized, in the profit and loss account for the
year ended 31 st March 2011, below mentioned defined contribution
plans.
5. Managerial Remunerations:
Managerial Remuneration paid to Vice Chairman & Managing Director,
Whole Time Director, Executive Directors and Directors.
6. In the opinion of the Management the Current assets, Loans &
Advances are expected to realize approximately the values stated in the
accounts in the ordinary course of business, and provisions for all
known liabilities have been adequately made in the accounts.
7. C) Foreing Currency outflow in respect of advance given for
Professional Service of Rs.613,212/-.
8 Segmental Reporting:
The Company's operations predominantly relate to providing Integrated
Solutions, Technical Division, Projects Division and Software
Development Services to customers globally operating. Accordingly, the
primary basis of segmental information setout in these financial
statements, and secondary segmental reporting is performed on the basis
of the geographical location.
Income & Direct expenses in relation to segments is categorized based
on items that are individually identifiable to that segment, while the
remainder of the costs are allocated on the bases of available
information. Certain expenses, which form a significant component of
total expenses, are not specifically allocable to specific segments.
The Company believes that it is not practicable to provide segmental
disclosures relating to those costs and expenses, and accordingly these
expenses are separately disclosed as "unallocable" and directly charged
against total income.
b) Geographical Segment
The company has no transactions with parties outside India, so this
segment isn't applicable for the company.
9. Related Party Transactions:
a) Name of Related Parties & relationship:
Party Name Relation
Mr. T. Gopi Chand & Mr.T.Gopichand (HUF) Key Management Personnel (Vice
Chairman & Managing Director),
Spouse of Mrs. T. Pavana Devi
& Brother of T.Bapaiah
Chowdary.
Mrs. T. Pavana Devi Director & Spouse of
Mr.T. Gopi Chand.
Mr. N.V.V.Prasad Key Management Personnel
(Executive Director)
Mr.T.Bapaiah Chowdary Brother to the Vice-Chairman
Mr.T.Hanuman Chowdary Director
10. Sundry debtors, sundry creditors, other liabilities, loans and
advances, advances from customers etc. are subject to confirmation and
reconciliation. Necessary adjustments, if any will be made when the
accounts are reconciled and settled. However the management is fairly
confident that the company will not face any undue risk due to this
factor.
11. Deferred Tax
Tax charged to Profit and Loss account is after considering deferred
tax impact for the timing difference between accounting income and
taxable income.
12. Prior period items, material items, non-recurring and
extraordinary items are disclosed separately. Prior period items (net)
which include prior period income Nil and prior period expenses Nil
(Previous year prior period income Rs. 18,840 and prior period expenses
Rs.8,19,354)
13. Micro and Small Scale business entities:
There are no micro and small scale enterprises to which the company
owes dues, as at 31 st March 2011. This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006 has been determined to the extent such parties have been
identified on the basis of information available with the company.
14. Paise have been rounded off to the nearest rupee.
15. Figures for the corresponding year ended March 31, 2010, wherever
necessary, have been regrouped, recast, rearranged to conform to those
of the current year.
16. There is no other additional information pursuant to the
provisions of Part II Schedule VI of the Companies Act, 1956.
Mar 31, 2010
1. Assets acquired under leases where the company has substantially
transferred all the risk and rewards of ownership are classified as
finance lease. Such assets are capitalized at the inception of the
lease at the lower of fair value or present value of minimum lease
payments and a liability is created for an equivalent amount. Each
lease rental paid is allocated between the liability and the interest
cost, so as to obtain a constant periodic rate of interest on the
outstanding liability for each period.
b) Operating Lease:
1. Rentals are expensed with reference to the Lease terms and other
considerations.
2. Sales:
Sales are stated at net of returns and exclusive of sales tax.
1. Secured Loans:
a) Term Loans taken from Bank of Maharashtra are secured by way of
hypothecation of Land situated at Jubilee Hills in Hyderabad, Computers
and Peripherals, Furniture & Fixtures, Stock in trade, receivables,
outstanding æ monies and personal guarantee given by the Vice-Chairman
& Managing Director, Executive Director and a Director of the Company.
b) Loans taken from Bank for Vehicles Purchased are secured by specific
charge on Vehicles for which the loan is availed.
c) Term Loans taken from Finance Companies are secured by
hypothecation/mortgage of assets purchased by company from above
companies.
d) Working Capital loans and bank guarantees given by Bank of
Maharastra are secured by way of hypothecation of Land situated at
Jubilee Hills in Hyderabad, Computers and peripherals, stock in trade,
software in process, book debts and lien on companys term deposits
worth Rs.508.46 Lakh (previous year Rs. 425.00 Lakh) with the bank and
personal guarantee given by the Vice Chairman & Managing Director,
Executive Director and a Director of the Company.
2. Commitments and Contingencies:
a) The estimated amount of contracts remaining to be executed on
capital account, and not provided for (net of advances) is Rs12.90
lakhs as at March 31,2010 (Previous year Rs.15.63 lakhs).
b) The company has outstanding guarantees of Rs. 2,259.37 Lakh as at
31s March 2010 (previous year Rs. 2294.63 Lakh).
c) Few cases relating to vendors are pending in the Courts against
which the Company is liable to pay to the Vendor. Continqent liability
is Rs. 314,695/-.
3. Quantitative details:
The company does trading of various kinds of computer items. It is not
practicable to give quantitative details of sales and purchases for
trading business. And also the company is engaged in the development
and maintenance of computer software. The production and sale of such
software can not be expressed in any generic unit. Hence, it is not
practicable to give the quantitative details of sales and certain
information as required under paragraphs 3,4C and 4D of Part II of
Schedule VI to the Companies Act, 1956.
4. Employee Benefits:
The company has adopted Accounting Standard (AS) 15 (revised 2005) on
Employee Benefits.
6. In the opinion of the board of directors the Current assets, Loans &
Advances are expected to realize approximately the values stated in the
accounts in the ordinary course of business, and provisions for
all1
7. Segmental Reporting:
The Companys operations predominantly relate to providing Integrated
Solutions, Technical Division, Projects Division and Software
Development Services to customers globally operating. Accordingly, the
primary basis of segmental information setout in these financial
statements, and secondary segmental reporting is performed on the basis
of the geographical location.
Income & Direct expenses in relation to segments is categorized based
on items that are individually identifiable to that segment, while the
remainder of the costs are allocated on the bases of available
information. Certain expenses, which form a significant component of
total expenses, are not specifically allocable to specific segments.
The Company believes that it is not practicable to provide segmental
disclosures relating to those costs and expenses, and accordingly these
expenses are separately disclosed as "unallocable" and directly charged
against total income.
a) Geographical Segment
The company has no transactions with parties outside India, so this
segment isnt applicable for the company.
8. Related Party Transactions:
a) Name of Related Parties & relationship:
Party Name Relation
Mr. T. Gopichand & Key Management Personnel (Vice
Chairman & Managing
Director) & Spouse of
Mr.T.Gopichand (HUF) Mrs.T. Pavana Devi.
Mrs.T. Pavana Devi Director & Spouse of Mr.T. Gopichand.
Mr. N.V.V.Prasad Key Management Personnel (Executive Director)
Mr.T.Bapaiah
Chowdary Brother to the Vice Chairman and Managing
Director
9. Sundry debtors, sundry creditors, other liabilities, loans and
advances, advances from customers etc. are subject to confirmation and
reconciliation. Necessary adjustments, if any will be made when the
accounts are reconciled and settled. However the management is fairly
confident that the company will not face any undue risk due to this
factor.
10. Prior period items, material items, non-recurring and
extraordinary items are disclosed separately. Prior period items (net)
include prior period income Rs.18,840 and prior period expenses
Rs.819,354/- (Previous year prior period income Rs.347,937and prior
period expenses Rs.132,897)
11. Micro and Small Scale business entities:
There are no micro and small scale enterprises to which the company
owes dues, as at 31st March 2010.This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006 has been determined to the extent such parties have been
identified on the basis of information available with the company.
12. Paise have been rounded off to the nearest rupee.
13. Figures for the corresponding year ended March 31,2009, wherever
necessary, have been regrouped, recast, rearranged to conform to those
of the current year.
14. There is no other additional information pursuant to the
provisions of Part II Schedule VI of the Companies Act, 1956. As per
our report of even date attached
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