Mar 31, 2011
1. Consolidated Financial Results :-
Consolidated financial statements forming part of the accounts with the auditor's report thereon are attached herewith.
2. Contingent Liabilities not provided for :- (Rs. in Lacs)
Income Tax Liability which are disputed and taken before the appellate authorities are pending for giving effect by the assessing officer upon which the disputed liability shown gets substantially reduced which is contingent in nature. The amount involving various assessment years is Rs. 892.72 Lacs (P.Y. 892.72 Lacs).
3. Retirement Benefit :
Post employment benefit plan: The company has not provided for gratuity in the earlier years nor the actuarial valuation was done recognising the liability towards gratuity. During the year, the company got the valuation done from an independent actuarial valuer. The liability including current year provision of Rs. 1.45 lacs (P.Y. Nil) works out to Rs. 17.54 lacs (P.Y. Nil) Past liability is accounted for under prior period expenses as an item of appropriation. The gratuity provision is not funded.
4. Managerial Remuneration :-
b) No computation of Profit under section 350 of the Companies Act, 1956 has been given since no commission is paid to Directors.
5 Deferred tax:-
The company is entitled to create deferred tax asset/liability in the books of account with respect to timing difference of carried forward business and depreciation losses as well as depreciation. However, in view of carried forward business and depreciation losses there is no reasonable certainty that the asset can be realised. Hence, the deferred tax asset is not recognised on the ground of prudence.
7 Units falling under Micro, Small and Medium Enterprises Development Act, 2006 who have been the suppliers to the company have no outstanding more than maximum stipulated period in the current year.
9. Disclosure requirements as per Accounting Standard 18 (AS-18)
"Related Party Disclosure" issued by the Institute of Chartered Accountants of India
I. List of Related Parties :
a) Parties Where Control Exists:
(i) Subsidiary Companies
1. Tutis Innovative E-Solutions Pvt. Ltd.
3. Global Software Technologies Limited
4. Amex Information Technologies GmbH
b) Associate companies where managing directors or relatives of managing director are Directors.
(i) Coral Hub Limited
(ii) Basiz Fund Service Pvt Ltd.
c) Key Management Personnel / Associates
(i) G S ChandrashekarÃ Managing Director
(ii) Aniket Jathar Ã Whole Time Director
(iii) Amita Desai Ã Director
12 Diminution in Value of Long Term Investment
The diminution of Rs 53.25 Lacs in the value of long term investments in quoted equity shares and Mutual Fund Schemes has not been provided as in the view of the management such diminution is temporary in nature and as such there is no requirement of making any provision.
13 The company has pledged 488.93 lac equity shares (P.Y. 328.93 lac equity shares) of Rs 1 each of Coral Hub Limited (formerly known as Vishal Information Technologies Limited) with a leading financial institution as security for the loan availed by its group company. The company has issued a corporate guarantee to the Financial Institution equivalent to the amount of loan availed by the group company.
14 Balances shown in the accounts of loans and advances, unsecured loans and sundry creditors are subject to confirmation, reconciliation and consequential adjustment if any.
15 In the opinion of the Board, current assets, loans and advances have realisable value equal to the amount stated in the books of account.
16 Additional information pursuant to the provisions of Part IV of Schedule VI of the Companies Act, 1956 is attached herewith.
17 The figures of the previous year have been regrouped and recast wherever necessary to confirm to the groupings of the current year.
Mar 31, 2010
a) Figures have been rounded off to the nearest rupee
b) Previous year figures have been regrouped, reclassified and rearranged wherever necessary to confirm to current years classification.
2. Employees Retirement Benefits:
Companys Contribution to Provident Fund is made at the pre- determined rate, to the appropriate authorities and is charged to revenue expenditure. As per Accounting Standard 15 issued by The Institute of Chartered Accountants of India, the Company is required to provide for liability in respect of earned Leave Encashment and Gratuity on accrual basis. The Company has provided liability in respect of Gratuity payable to the employees on the basis of such estimated liability.
3. The Company has during the financial year pledged 3,28,93,000 Equity shares of Vishal Information Technologies Limited with a leading financial institution as security, for the loan availed by its group Company. The Company has issued a corporate guarantee to the financial institution equivalent to the amount of loan availed by the group Company.