Mar 31, 2016
1. Corporate information
Excel Realty N Infra Limited (formerly known as Excel Infoways Ltd.) (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its equity shares are listed on National Stock Exchange and Bombay Stock Exchange in India. The company is engaged in the business of IT enabled BPO Services, development of infrastructure facility & general trading.
2. Basis of preparation
These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (âIndian GAAPâ) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies adopted in the presentation of the financial statements are consistent with those followed in the previous year.
2.1 Summary of significant accounting policies
a. Change in accounting policy
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in accounting policy in use.
b. 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.
c. Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.
Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realizable value and are disclosed separately in the balance sheet.
d. Depreciation on tangible fixed assets
In respect of fixed assets (other than freehold land and capital work-in-progress) acquired during the year, depreciation/ amortization is charged on a straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to 1 April, 2014,the carrying amount as on 1 April, 2014 is depreciated over the remaining useful life based on an evaluation:
The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year and the amortization period is revised to reflect the changed pattern, if any.
Rates (SLM)
Buildings - 1.63%
Plant and equipment - 10.34%
Furniture and fixtures - 6.33%
Vehicles - 11.87%
Computers and peripherals - 31.67%
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of asset exceeds the recoverable amount. An impairment loss is charged to the profit and loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the Company will comply with the conditions attached to them, and (ii) the grant/subsidy will be received.
g. Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. Investments in subsidiaries are classified as long-term investments and are stated at cost except in case of foreign subsidiaries which are translated at current value.
h. Employee benefits
As per the practice consistently followed, leave encashment is accounted for as and when paid. In view of the management, most of the employees have already utilized balance of leave in their account therefore there is no material amount of leave encashment payable at the year end. Since, none of the employees have put in specified period of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution plans. These comprise defined contribution to Employees Provident Fund and are reported as expenses. During the year no employee is qualify for contribution to Provident Fund. However the company is regular in filling Provident Fund return.
i. Revenue Recognition
The Company earns revenues from Business Process Outsourcing (BPO) / Information Technology Enabled Services which are recognized when the related services are rendered and recorded at relevant exchange rate prevailing on the date of transaction. Revenue from Infrastructure activities are recognized when the related work is completed. Revenue from trading activities are recognized when sales is completed.
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.
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.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.
k. Foreign Currency Transactions and Translations
Income and Expenses in foreign currencies are converted at exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on the balance sheet date. Exchange difference gain/(loss) is recognized in the profit and loss account. Premium or discount on forward exchange contracts are amortized and recognized in the profit and loss account. In case of non-integral foreign operations, the assets and liabilities are translated at the closing rate and income and expenditure are translated at the rate on the date of transaction. The resulting exchange difference arising is accumulated in foreign currency translation reserve under reserve and surplus.
l. Borrowing Cost
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Revenue.
m. Service Tax
Service Tax is recognized on the basis of both, payments made in respect of service taken from professional and others and service rendered by the Company for BPO related service, where applicable.
n. Segment reporting Identification of segments
The Company''s operating businesses are organized and managed separately according to the nature of business and services provided, with each segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items which are not allocated to any business segment. Segment accounting policies
The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.
o. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
p. Provisions
A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
q. Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or 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 a contingent liability.
r. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.
Details of dues to Micro and Small Enterprises under the MSMED Act, 2006
As per information available with the Company, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Devlopment Act 2006, to whom the Company owes dues on account of principle or interest.
The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been defined on the basis of information available with the Company. This has been relied upon by the auditors.
Mar 31, 2015
A. Change in accounting policy
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except where a
newly issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in accounting policy
in use.
b. 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.
c. Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date. Exchange differences
arising on restatement / settlement of long-term foreign currency
borrowings relating to acquisition of depreciable fixed assets are
adjusted to the cost of the respective assets and depreciated over the
remaining useful life of such assets. Subsequent expenditure relating
to fixed assets is capitalized only if such expenditure results in an
increase in the future benefits from such asset beyond its previously
assessed standard of performance.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realisable value and are
disclosed separately in the balance sheet.
d. Depreciation on tangible fixed assets
In respect of fixed assets (other than freehold land and capital
work-in-progress) acquired during the year, depreciation/ amortization
is charged on a straight line basis so as to write off the cost of the
assets over the useful lives and for the assets acquired prior to 1
April, 2014, the carrying amount as on 1 April, 2014 is depreciated
over the remaining useful life based on an evaluation:
The estimated useful life of the intangible assets and the amortisation
period are reviewed at the end of each financial year and the
amortisation period is revised to reflect the changed pattern, if any.
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that (i) the Company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
g. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. Investments in subsidiaries are
classified as long-term investments and are stated at cost except in
case of foreign subsidiaries which are translated at current value.
h. Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
i. Revenue Recognition
The Company earns revenues from Business Process Outsourcing (BPO) /
Information Technology Enabled Services which are recognized when the
related services are rendered and recorded at relevant exchange rate
prevailing on the date of transaction. Revenue from Infrastructure
activities are recognized when the related work is completed.
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.
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.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company
k. Foreign Currency Transactions and Translations
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account. In case of non-integral foreign operations the assets
and liabilities are translated at the closing rate and income and
expenditure are translated at the rate on the date of transaction. The
resulting exchange difference arising is accumulated in foreign
currency translation reserve under reserve and surplus.
l. Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to Revenue.
m. Service Tax
Service Tax is recognized on the basis of both, payments made in
respect of service taken from professional and others and service
rendered by the Company for BPO related service, where applicable.
n. Segment reporting Identification of segments
The Company's operating businesses are organized and managed separately
according to the nature of business and services provided, with each
segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment. Segment accounting
policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
o. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
p. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
q. Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
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 a contingent liability.
r. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
(i) Term loan from banks is taken for business expansion in the month
of July 2012 against mortgage of office premises for a period of sixty
months at an interest rate of 14.00% p.a. Loan amounting to Rs. 2692.00
thousand was repaid during the year.
(ii) Term loan from others is taken for business expansion against
residential bungalow and pledge of shares held by directors, in the
month of August 2013 amounting to Rs. 45,200 thousand at interest rate
14.25% p.a. for a period of 156 month having EMI of Rs. 637.89 thousand.
Details of dues to Micro and Small Enterprises under the MSMED Act,
2006
As per information available with the Company, there are no Micro,
Small and Medium Enterprises, as defined in the Micro, Small and Medium
Enterprises Development Act 2006, to whom the Company owes dues on
account of principle or interest.
The above information regarding Micro, Small and Medium Enterprises has
been determined to the extent such parties have been defined on the
basis of information available with the Company. This has been relied
upon by the auditors.
Mar 31, 2014
Corporate information
Excel Infoways Limited (the Company) is a public company domiciled in
India and incorporated under the provisions of the Companies Act, 1956.
Its shares are listed on two stock exchanges in India. The Company is
engaged in the IT enabled BPO Services and development of
infrastructure facility.
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 and under the
historical cost convention.
Summary of significant accounting policies
a. Change in accounting policy
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except where a
newly issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in accounting policy
in use.
b. 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.
c. Tangible fixed assets
Fixed assets 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.
All other expenses 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 during which
such expenses are incurred.
d. Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on a straight-line basis
using the rates prescribed under the Schedule XIV to the Companies Act,
1956. The Company has used the following rates to provide depreciation
on its fixed assets.
Rates (SLM)
Buildings - 1.63%
Plant and equipment - 10.34%
Furniture and fixtures - 6.33%
Vehicles - 9.50%
Office Equipment - 16.21%
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that (i) the Company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
g. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. Investments in subsidiaries are
classified as long-term investments and are stated at cost except in
case of foreign subsidiaries which are translated at current value.
i. Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
j. Revenue Recognition
The Company earns revenues from Business Process Outsourcing (BPO) /
Information Technology Enabled Services which are recognized when the
related services are rendered and recorded at relevant exchange rate
prevailing on the date of transaction. Revenue from Infrastructure
activities are recognized when the related work is completed.
k. 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.
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.
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 "ÂMAT Credit Entitlement."
The Company reviews the "ÂMAT 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.
l. Foreign Currency Transactions and Translations
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account. In case of non-integral foreign operations the assets
and liabilities are translated at the closing rate and income and
expenditure are translated at the rate on the date of transaction. The
resulting exchange difference arising is accumulated in foreign
currency translation reserve under reserve and surplus.
m. Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to Revenue.
n. Service Tax
Service Tax is recognized on the basis of services rendered by the
Company.
o. Segment reporting
Identification of segments
The Company''s operating businesses are organized and managed separately
according to the nature of business and services provided, with each
segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment.
Segment accounting policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
p. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
q. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
r. Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
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 a contingent liability.
s. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
Mar 31, 2013
A. Change in accounting policy
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except where a
newly issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in accounting policy
in use.
b. 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
c. Tangible fixed assets
Fixed assets 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.
All other expenses 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 during which
such expenses are incurred.
d. Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on a straight-line basis
using the rates prescribed under the Schedule XIV to the Companies Act,
1956. The Company has used the following rates to provide depreciation
on its fixed assets.
Rates (SLM)
Buildings - 1.63%
Plant and equipment - 10.34%
Furniture and
fixtures - 6.33%
Vehicles - 9.50%
Office Equipments - 16.21%
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that (i) the Company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
g. Investments
Investments which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. Investments in subsidiary are
classified as long-term investments and are stated at cost except in
case of foreign subsidiary which are translated at current value.
i. Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
j. Revenue Recognition
The Company earns revenues from Business Process Outsourcing (BPO) /
Information Technology Enabled Services which are recognized when the
related services are rendered and recorded at relevant exchange rate
prevailing on the date of transaction. Revenue from Infrastructure
activities are recognized when the related work is completed.
k. 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.
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. 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.
l. Foreign Currency Transactions and Translations
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account. In case of non-integral foreign operations the assets
and liabilities are translated at the closing rate and income and
expenditure are translated at the rate on the date of transaction. The
resulting exchange difference arising is accumulated in foreign
currency translation reserve under reserve and surplus.
m. Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to Revenue.
n. Service Tax
Service Tax is recognized on the basis of both, payments made in
respect of service taken from professional and others and service
rendered by the Company for BPO related service, where applicable.
o. Segment reporting
Identification of segments
The Company''s operating businesses are organized and managed separately
according to the nature of business and services provided, with each
segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment.
Segment accounting policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
p. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares
q. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. .
r. Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
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 a contingent liability
s. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short- term investments with an
original maturity of three months or less.
Mar 31, 2012
A. Change in accounting policy
Presentation and disclosure of financial statements
During the year ended March 31, 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the Company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements.
The Company has also reclassified the previous year figures in
accordance with the requirements applicable in the current year.
b. 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.
c. Tangible fixed assets
Fixed assets 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.
All other expenses 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 during which
such expenses are incurred.
d. Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on a straight-line basis
using the rates prescribed under the Schedule XIV to the Companies Act,
1956. The Company has used the following rates to provide depreciation
on its fixed assets.
Rates (SLM)
Buildings - 1.63%
Plant and equipment - 10.34%
Furniture and fixtures - 6.33%
Vehicles - 9.50%
Office Equipments - 16.21%
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that (i) the Company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
g. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long- term investments. Investments in subsidiaries are
classified as long-term investments and are stated at cost, i. Employee
benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
j. Revenue Recognition
Revenues from Business Process Outsourcing (BPO) / Information
Technology Enabled Services are recognized as the related services are
rendered and recorded at relevant exchange rate prevailing on the date
of transaction. Revenue from Infrastructure activities are recognized
when the related work completed, k. 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.
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.
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.
I. Foreign Currency Transactions
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account.
m. Borrowing Cost
Borrowing cost that are attributable to the acquisition or construction
of qualifying assets are capitalized as part of the cost of such
assets. A qualifying assets is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to Revenue,
n. Service Tax
Service Tax is recognized on the basis of both, payments made in
respect of service taken from professional and others and service
rendered by the company for BPO related service, where applicable.
o. Segment reporting
Identification of segments
The Company's operating businesses are organized and managed separately
according to the nature of business and services provided, with each
segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment.
Segment accounting policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
p. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares, q.
Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation, r.
Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
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 a contingent liability.
s. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short- term investments with an
original maturity of three months or less.
Mar 31, 2011
1) Basis of Preparation of Financial Statement
The financial statements are prepared under the historical cost
convention and the requirements of the Companies Act, 1956. Company
generally follows the mercantile system of accounting and recognizes
income & expenditure on accrual basis unless otherwise stated.
2) Use of estimates
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of the income and expenses during the year. Difference
between the actual result and estimates are recognized in the period in
which the results are known.
3) Fixed Assets
Fixed Assets are stated at cost, less accumulated depreciation and
impairment, if any. Costs include all expenses incurred to bring the
assets to its present location and condition. Direct costs are
capitalized till the fixed assets are ready to use.
4) Depreciation
Depreciation is provided on straight line basis at the rates specified
in schedule XIV to the Companies Act, 1956. Depreciation on additions
to Fixed Assets is provided on pro-rata basis for the number of days
the asset has been put to use.
5) Impairment
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
6) Investments
Investments in subsidiaries are classified as long-term investments and
are stated at cost.
Adjustments are made for diminution if any, in value of the investments
that is other than temporary in nature in the opinion of the
management.
7) Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
8) Revenue Recognition
Revenues from Business Process Outsourcing (BPO) / Information
Technology Enabled Services are recognized as the related services are
rendered and recorded at relevant exchange rate prevailing on the date
of transaction.
9) Taxes on Income
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the consideration of prudence, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
10) Foreign Currency Transactions
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account.
11) Borrowing Cost
Borrowing cost that are attributable to the acquisition or construction
of qualifying assets are capitalized as part of the cost of such
assets. A qualifying assets is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to Revenue.
12) Earning Per Share
Basic Earning per Share is calculated by dividing the net profit for
the year attributable to the equity shareholders by the weighted
average of the number of equity shares outstanding during the year.
13) Cash Flow Statement
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard 3 on Cash Flow Statements and presents the cash
flows by operating, investing and financing activities of the company.
Cash and cash equivalents presented in the Cash Flow Statement consist
of cash on hand and fixed deposits with banks.
14) Prior Period Items
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Prior Period Adjustment Account."
15) Miscellaneous Expenditure
One-fifth of preliminary expenses, pre operative expenses deferred
revenue expenses and initial public offer expenses are charged to
Profit & Loss Account
Mar 31, 2010
A) Basis of Preparation of Financial Statement
The financial statements are prepared under the historical cost
convention and the requirements of the Companies Act, 1956. Company
generally follows the mercantile system of accounting and recognizes
income & expenditure on accrual basis unless otherwise stated.
b) Use of estimates
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of the income and expenses during the year. Difference
between the actual result and estimates are recognized in the period in
which the results are known.
c) Fixed Assets
Fixed Assets are stated at cost, less accumulated depreciation and
impairment, if any. Costs include all expenses incurred to bring the
assets to its present location and condition. Direct costs are
capitalized till the fixed assets are ready to use.
d) Depreciation
Depreciation is provided on straight line basis at the rates specified
in schedule XIV to the Companies Act, 1956. Depreciation on additions
to Fixed Assets is provided on pro-rata basis for the number of days
the asset has been put to use.
e) Impairment
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f) Investments
Investments in subsidiaries are classified as long-term investments and
are stated at cost. Adjustments are made for diminution if any, in
value of the investments that is other than temporary in nature in the
opinion of the management.
As at 31st March 2010, the Company had an aggregate investment of Rs
13,65,25,546/- in its subsidiary which include Excel Info FZE, UAE.
Management believes that these investments are long term in nature and
the subsidiary is expected to do profitable business in future.
Accordingly, management does not consider that provision for diminution
in the value of its investments in the said subsidiary.
g) Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
h) Revenue Recognition
Revenues from Business Process Outsourcing (BPO) / Information
Technology Enabled Services are recognized as the related services are
rendered and recorded at relevant exchange rate prevailing on the date
of transaction.
i) Taxes on Income
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the consideration of prudence, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
j) Foreign Currency Transactions
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account.
k) Borrowing Cost
Borrowing cost that are attributable to the acquisition or construction
of qualifying assets are capitalized as part of the cost of such
assets. A qualifying assets is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to Revenue.
l) Earning Per Share
Basic Earning per Share is calculated by dividing the net profit for
the year attributable to the equity shareholders by the weighted
average of the number of equity shares outstanding during the year.
m) Prior Period Items
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Prior Period Adjustment Account."
n) Miscellaneous Expenditure
One-fifth of preliminary expenses, pre operative expenses, deferred
revenue expenses and initial public offer expenses are charged to
Profit & Loss Account.
Mar 31, 2009
Not Available