Mar 31, 2015
DETAILS OF CONTINGENT LIABILITIES
(i) Religare Technova IT Services Limited (now merged with Religare
Technologies Limited) has received an order, passed by Service Tax
department, Ludhiana dated December 4, 2009 under Section 73 of the
Finance Act, 1994 wherein a demand of Rs. 5,40,824/- has been raised on
the Company.
The Company had filed an appeal before the Commissioner of Central
Excise (Appeals) - II, Chandigarh against the said order. The
commissioner had confirmed the order against which appeal was filed to
CESTAT where the order was given in favour for the company and sent
back on remand. The proceedings are pending before the assessing
officer for regular assessment.
(ii) Appeal has been filed to the Commissioner (Appeal) of Value Added
Tax, Kolkata in respect of VAT Demand for Financial Year 2008- 09
amounting to Rs. 10,74,026/-. The proceedings are still pending before
Commissioner (Appeal) of Value Added Tax, Kolkata.
(iii) The Income Tax Assessment of Religare Technova IT Services
Limited (now merged with Religare Technologies Limited) for the
assessment year 2008-09 has been completed by the Deputy Commissioner
of Income Tax, Circle-VII, Ludhiana under section 143(3) of the Act
vide order dated December 24, 2010. Consequential to certain
disallowances made in the assessment order, a demand of Rs. 35,451,530/-
has been raised on the Company. The AO has also initiated penalty
proceedings under section 271(1) (c) of Act against the Company.
The Company has filed an appeal with Commissioner of Income Tax
(Appeals), II, Ludhiana against the said assessmen order. In reply to
the notice for initiation of penalty proceedings, the Company has filed
a letter with the AO requesting to keep the penalty proceedings in
abeyance till the disposal of Appeal filed before CIT(A). (iv)
Religare Technova IT Services Limited (now merged with Religare
Technologies Limited) ("the Company") has received order dated March
30, 2011 passed by Assessing officer u/s 201(1)/201(1A) of the Act for
financial year 2008-09, wherein demand amounting to Rs. 20,05,580/- has
been raised on the Company on account of TDS not deducted/TDS deducted
but not paid by the Company. The said demand was primarily on account
of mismatch in the online database of tax department with the returns/
challans filed by the Company.
The company has filed correction statement and status of liability as
on 31 march 2012 is Rs. 136,741/-. The Company has also preferred an
appeal against the same to CIT(A)-XXX and the same is pending for
disposal.
(v) The Income tax assessment of Religare Technova Business Intellect
Limited (now merged with Religare Technologies Limited) for assessment
year 2008-09 was completed by the Assistant Commissioner of Income Tax,
Circle-15 (1), New Delhi under section 143(3) of the Act vide
assessment order dated December 31, 2010. Pursuant to the additions
made in the said assessment order, the returned loss of the subject
assessment year has been reduced from Rs. 79,47,388/- to Rs. 12,38,895/-.
The AO has also initiated penalty proceedings under section 271(1) (c)
of the Act against the Company.
The Company has filed an appeal with Commissioner of Income Tax
(Appeals), XVIII, New Delhi against the said assessment order. In reply
to the notice for initiation of penalty proceedings, the Company has
filed a letter with the AO requesting to keep the penalty proceedings
in abeyance till the disposal of Appeal filed before CIT(A).
(vi) The company has received a show cause notice dated 03 Feb 2012
from Service tax department on account of disallowance of CENVAT credit
in relation to company's premises for which late registration was
taken. The amount involve in such show cause notice is Rs. 37,56,456/-
including interest.
The company has filled a suitable reply against such notice as the late
intimation filed for few company's premises is a procedural gap only
and management expects a favourable order on reply against such notice.
(vii) HealthFore Technologies Limited (formerly Religare Technologies
Limited) received a notice dated 16th May, 2011 from Presiding Officer,
Industrial Tribunal, New Court Complex, Ludhiana regarding a complaint
filed by Mr. Rajesh Bansal disputing his termination and claiming an
amount of Rs. 3,85,000/-. Further a notice dated 30th September, 2011 was
received from the Controlling Authority under Payment of Gratuity Act,
1972 and Assistant Labour Commissioner (Central), KendriyaSadan, Sector
9-A, Chandigarh with respect to an application filed by Mr. Rajesh
Bansal regarding non-payment of alleged full gratuity payable to him.
The matters are currently pending.
1. SEGMENT REPORTING: Business Segment:
(i) The business segment has been considered as the primary segment.
(ii) The company's primary business segments are reflected based on
principal business activities, the nature of service, the differing
risks and returns.
(iii) The Company's primary business comprises of three segment viz.,
'IT Services' , 'Knowledge Services' and 'Healthcare Services'.
(iv) Segment revenue, results, assets and liabilities include amounts
identifiable to each segments allocated on reasonable basis.
(v) The accounting policies adopted for segment reporting are in line
with the accounting policies adopted for preparation of financial
information as stated in (2) above.
Geographical Segment:
As the company is primarily operating in one Geographic segment "Within
India" hence no separate information for Geographic segment wise
disclosure is required.
2. OTHER NOTES
(i) In view of accumulated losses, no provision for income tax is
considered necessary.
(ii) The Company has unabsorbed depreciation and carry forward losses
under the Income Tax Act 1961. Accordingly, keeping in view absence of
virtual certainty, deferred tax assets have not been recognised.
(iii) Taking into account management's assessment of growth of
business, the accounts of the company have been prepared on a "Going
Concern" basis even though, the net worth of the Company has
substantially eroded due to accumulated losses.
(iv) During the financial year, the balances which were lying with the
creditors and old outstanding cheque having outstanding more than 3
years have been written back.
(v) The cost of Intangible assets and Intangible assets under
development includes the cost of Manpower, Interest on borrowing,
proportationate amount of common facilities and other miscellaneous
cost. During the financial year, Rs. 11,96,70,307/- has been added to
Intangible assets under development.
(vi) The Shareholders of the Company had approved the HealthFore
Employee Stock Option Scheme  2013 ("Scheme") on September 13, 2013.
However, till date no Stock Options have been granted by the Company
under the Scheme
3. PREVIOUS YEAR FIGURES
Figures of the Previous Year have been regrouped, rearranged and
reclassified to conform to the current year classification
Mar 31, 2013
1 OVERVIEW
The Company was incorporated as a limited liability company by the name
of Religare Technova Services Limited on 22nd May 2009. It received the
certificate of Commencement of Business on 3rd June 2009.
W.e.f. June 12, 2009 name of the Company was changed from "Religare
Technova Services Limited to "Religare Technologies LimitedÂ. W.e.f.
April 29, 2013 name of the Company has been changed from Religare
Technologies Limited to "HealthFore Technologies Limited"
2 Contingent Liabilities
Particulars As at 31
March 2013 As at 31
March 2012
Amount (Rs.) Amount (Rs.)
Money for which the company
is contingently liable
 Disputed Income Tax Demands
not provided for 37,457,110 37,457,110
 Disputed Service Tax Demands
not provided for 4,297,280 4,297,280
 Disputed VAT/ CST Demands
not provided for 2,311,805 34,810,211
 Other contingent liabilities
with respect to litigations 385,000 446,000
44,451,195 77,010,601
DETAILS OF CONTINGENT LIABILITIES
(i) Religare Technova IT Services Limited (now merged with Religare
Technologies Limited) has received an order, passed by Service Tax
department, Ludhiana dated December 4, 2009 under Section 73 of the
Finance Act, 1994 wherein a demand of Rs.5,40,824 has been raised on the
Company.
The Company had filed an appeal before the Commissioner of Central
Excise (Appeals) - II, Chandigarh against the said order. The
commissioner had confirmed the order against which appeal was filed to
CESTAT where the order was given in favour for the company and sent
back for regular assessment. The proceedings are pending before the
assessing officer for regular assessment.
(ii) Appeal has been filed to Commissioner (Appeal) of Value Added Tax,
Kolkata in respect of VAT Demand for Financial Year 2008-09 amounting
to Rs. 10,74,026/-. The proceedings are still pending before Commissioner
(Appeal) of Value Added Tax, Kolkata.
(iii) The Income Tax Assessment of Religare Technova IT Services
Limited (now merged with Religare Technologies Limited) for the
assessment year 2008-09 has been completed by the Deputy Commissioner
of Income Tax, Circle-VII, Ludhiana under section 143(3) of the Act
vide order dated December 24, 2010. Consequential to certain
disallowances made in the assessment order, a demand of Rs. 35,451,530
has been raised on the Company. The AO has also initiated penalty
proceedings under section 271(1) (c) of the Act against the Company.
The Company has filed an appeal with Commissioner of Income Tax
(Appeals), II, Ludhiana against the said assessment order. In reply to
the notice for initiation of penalty proceedings, the Company has filed
a letter with the AO requesting to keep the penalty proceedings in
abeyance till the disposal of Appeal filed before CIT(A).
(iv) Religare Technova IT Services Limited (now merged with Religare
Technologies Limited) ("the CompanyÂ) has received order dated Mar-30,
2011 passed by Assessing officer u/s 201(1)/201(1A) of the Act for
financial year 2008-09, wherein demand amounting to Rs 2,005,580 has
been raised on the Company on account of TDS not deducted/TDS deducted
but not paid by the Company. The said demand was primarily on account
of mismatch in the online database of tax department with the returns/
challans filed by the Company.
The company has filed correction statement and status of liability as
on 31 march 2012 is Rs. 79,995/- . The Company has also preferred an
appeal against the same to CIT(A)-XXX and the same is pending for
disposal.
(v) The Income tax assessment of Religare Technova Business Intellect
Limited (now merged with Religare Technologies Limited) for assessment
year 2008-09 was completed by the Assistant Commissioner of Income Tax,
Circle-15 (1), New Delhi under section 143(3) of the Act vide
assessment order dated December 31, 2010. Pursuant to the additions
made in the said assessment order, the returned loss of the subject
assessment year has been reduced from Rs 7,947,388 to Rs 1,238,895.
The AO has also initiated penalty proceedings under section 271(1) (c)
of the Act against the Company.
The Company has filed an appeal with Commissioner of Income Tax
(Appeals), XVIII, New Delhi against the said assessment order. In reply
to the notice for initiation of penalty proceedings, the Company has
filed a letter with the AO requesting to keep the penalty proceedings
in abeyance till the disposal of Appeal filed before CIT(A).
(vi) The company has received a show cause notice dated 03 Feb 2012
from Service tax department on account of disallowance of CENVAT credit
in relation to company`s premises for which late registration was
taken. The amount involve in such show cause notice is Rs. 37,56,456/-
including interest.
The company has filled a suitable reply against such notice as the late
intimation filed for few company`s premises is a procedural gap only
and management expects a favourable order on reply against such notice.
(vii) The company has been assessed by Department of VAT, U.P. dated 24
Jan, 2013 under provisions U.P. VAT ACT, 2008 wherein a demand of Rs.
1237,779/- has been raised on the Company in the assessment order by
Dy. Commissioner, VAT for the financial year 2008-09.
The Company is in process of filing an appeal before the Additional
Commissioner of VAT (Appeals) Noida agaist the said assessment order as
the management is in bonafied belief to get the favourable order in the
case.
(viii) Religare Technologies Limited received a notice dated 16th May,
2011 from Presiding Officer, Industrial Tribunal, New Court Complex,
Ludhiana regarding a complaint filed by Mr. Rajesh Bansal disputing his
termination and claiming an amount of Rs. 3,85,000. Further a notice
dated 30th September, 2011 was received from the Controlling Authority
under Payment of Gratuity Act, 1972 and Assistant Labour Commissioner
(Central), KendriyaSadan, Sector 9-A, Chandigarh with respect to an
application filed by Mr. Rajesh Bansal regarding non-payment of alleged
full gratuity payable to him. The matters are currently pending.
3 SEGMENT REPORTING: Business Segment:
(i) The business segment has been considered as the primary segment.
(ii) The company`s primary business segments are reflected based on
principal business activities, the nature of service, the differing
risks and returns.
(iii) The Company`s primary business comprises of three segment viz.,
''IT Services` , ''Knowledge Services` and ''Healthcare Services`.
(iv) Segment revenue, results, assets and liabilities include amounts
identifiable to each segments allocated on reasonable basis.
(v) The accounting policies adopted for segment reporting are in line
with the accounting policies adopted for preparation of financial
information as stated in (1) above.
Geographical Segment:
As the company is primarily operating in one Geographic segment "Within
India hence no separate information for Geographic segment wise
disclosure is required.
4 OTHER NOTES
(i) Due to change of policy regarding recognition of prepaid expenses
in case of expenses more than Rs. 20,000/-, nothing impact in the
financial in respect of expenditure during the period. (ii) In view of
accumulated losses, no provision for income tax is considered
necessary. (iii) The Company has unabsorbed depreciation and carry
forward losses under the Income Tax Act 1961. Accordingly, keeping in
view absence of virtual certainty, deferred tax assets have not been
recognised. (iv) Taking into account management`s assessment of growth
of business, the accounts of the company have been prepared on a "Going
Concern basis even though, the net worth of the Company has
substantially eroded due to accumulated losses. (v) During the
financial year the balances which were lying with the creditors and old
outstanding cheque having outstanding more then 3 years has been
written back. (vi) During the financial year amounting to Rs. 935.32
Lakhs (Including Rs. 157.98 Lakhs of Interest on borrowing) has been
capitalized to CWIP/intangible assets (the project Infinity is under
the development phase for which this expenses has been incurred).
5 PREVIOUS YEAR FIGURES
The financial statements for the year ended March 31, 2012 had been
prepared as per the then applicable, pre-revised Schedule VI to the
Companies Act, 1956. Consequent to the notification of Revised Schedule
VI under the Companies Act, 1956, the financial statements for the year
ended March 31, 2013 are prepared as per Revised Schedule VI.
Accordingly, the previous year figures have also been reclassified to
conform to this year`s classification. The adoption of Revised Schedule
VI for previous year figures does not impact recognition and
measurement principles followed for preparation of financial statements
except for accounting for dividend on investments in subsidiaries.
Mar 31, 2012
1 OVERVIEW
a. The Company was incorporated as a limited liability company by the
name of Religare Technova Services Limited on 22nd May 2009. It
received the certificate of Commencement of Business on 3rd June 2009.
W.e.f. June 12, 2009 name of the Company was changed from "Religare
Technova Services Limited" to "Religare Technologies Limited".
b. The Hon'ble High Court of Delhi approved the Scheme of Arrangement
(u/s 391 to 394 of the Companies Act 1956) on July 28th, 2010. The
Company received the certified copy of Final Order on August 13th, 2010
and the same was filed with Registrar of Companies on August 16th 2010.
c. There is an excess of Rs. 79,794,629/- of the Liabilities over the
Assets received in the amalgamation process. The same has been treated
as Goodwill as per the order of Hon'ble High Court of Delhi.
*As consideration in above said amalgamation, the Company has issued
8,079,461 Equity shares (Face Value of Rs. 10 each) to the shareholders
of the holding company 'Religare Technova Limited'. The Financials have
been prepared as per the approved scheme.
**Information Services Division has been merged with equal amount of
assets and liabilities.
There is an excess of Rs. 79,794,629/- of the Liabilities over the Assets
received in the amalgamation process. The same has been treated as
Goodwill as per the order of Hon'ble High Court of Delhi.
The rights, preferences and restrictions attaching to each class of
shares including restrictions on the distribution of dividends and the
repayment of capital;
The Company has only one class of equity shares having a par value of Rs.
10 per share. Each shareholder is entitled to one vote per share. The
company declares and pays dividend in Indian Rupee. The dividend
proposed by the Board of the Directors is subject to the approval of
the shareholders in the ensuing Annual General Meeting. During the year
ended March 31, 2012 the amount per share recognised as distribution to
equity holders was Rs. Nil (March 31, 2011 Rs. Nil). The total dividend
appropriation for the year ended March 31, 2012 amounts to Rs. Nil (March
31, 2011 Rs. Nil )including Corporate Dividend Tax of Rs. Nil (March 31,
2011 Rs. Nil). In the event of the liquidation of the company, the
holder of the equity shares will be entitled to receive any of the
remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion of the number of the
equity shares held by the equity share holders.
2 Contingent Liabilities
Particulars As at 31 March 2012 As at 31 March 2011
Amount (Rs.) Amount (Rs.)
Money for which the
company is contingently
liable
- Disputed Income Tax
Demands not provided for 35,531,525 35,531,525
- Disputed Service Tax
Demands not provided for 4,297,280 540,824
- Disputed VAT/ CST
Demands not provided for 34,810,211 20,000
- Other contingent
liabilities with respect
to litigations 446,000 -
75,085,016 36,092,349
DETAILS OF CONTINGENT LIABILITIES
(i) Religare Technova IT Services Limited (now merged with Religare
Technologies Limited) has received an order, passed by Service Tax
department, Ludhiana dated December 4, 2009 under Section 73 of the
Finance Act, 1994 wherein a demand of Rs. 540,824 has been raised on the
Company.
The Company had filed an appeal before the Commissioner of Central
Excise (Appeals) - II, Chandigarh against the said order. The
commissioner had confirmed the order against which appeal was filed to
CESTAT where the order was given in favour for the company and sent
back for regular assessment. The proceedings are pending before the
assessing officer for regular assessment.
(ii) Appeal has been filed to Commissioner (Appeal) of Value Added Tax,
Kolkata in respect of VAT Demand for Financial Year 2008- 09 amounting
to Rs. 1,074,026/-. The proceedings are still pending before Commissioner
(Appeal) of Value Added Tax, Kolkata.
(iii) The Income Tax Assessment of Religare Technova IT Services
Limited (now merged with Religare Technologies Limited) for the
assessment year 2008-09 has been completed by the Deputy Commissioner
of Income Tax, Circle-VII, Ludhiana under section 143(3) of the Act
vide order dated December 24, 2010. Consequential to certain
disallowances made in the assessment order, a demand of Rs. 35,451,530
has been raised on the Company. The AO has also initiated penalty
proceedings under section 271(1) (c) of the Act against the Company.
The Company has filed an appeal with Commissioner of Income Tax
(Appeals), II, Ludhiana against the said assessment order. In reply to
the notice for initiation of penalty proceedings, the Company has filed
a letter with the AO requesting to keep the penalty proceedings in
abeyance till the disposal of Appeal filed before CIT(A).
(iv) Religare Technova IT Services Limited (now merged with Religare
Technologies Limited) ("the Company") has received order dated Mar- 30,
2011 passed by Assessing officer u/s 201(1)/201(1A) of the Act for
financial year 2008-09, wherein demand amounting to Rs. 2,005,580 has
been raised on the Company on account of TDS not deducted/TDS deducted
but not paid by the Company. The said demand was primarily on account
of mismatch in the online database of tax department with the returns/
challans filed by the Company.
The company has filed correction statement and status of liability as
on 31 march 2012 is Rs. 79,995/- . The Company has also preferred an
appeal against the same to CIT(A)-XXX and the same is pending for
disposal.
(v) The Income tax assessment of Religare Technova Business Intellect
Limited (now merged with Religare Technologies Limited) for assessment
year 2008-09 was completed by the Assistant Commissioner of Income Tax,
Circle-15 (1), New Delhi under section 143(3) of the Act vide
assessment order dated December 31, 2010. Pursuant to the additions
made in the said assessment order, the returned loss of the subject
assessment year has been reduced from Rs. 7,947,388 to Rs. 1,238,895. The
AO has also initiated penalty proceedings under section 2 71(1) (c) of
the Act against the Company.
The Company has filed an appeal with Commissioner of Income Tax
(Appeals), XVIII, New Delhi against the said assessment order. In
reply to the notice for initiation of penalty proceedings, the Company
has filed a letter with the AO requesting to keep the penalty
proceedings in abeyance till the disposal of Appeal filed before
CIT(A).
(vi) The company has received a show cause notice dated 03 Feb 2012
from Service tax department on account of disallowance of CENVAT credit
in relation to company's premises for which late registration was
taken. The amount involve in such show cause notice is Rs. 3,756,456/-
including interest.
The company is in process of filing suitable reply against such notice
as the late intimation filed for few company's premises is a procedural
gap only and management expects a favourable order on reply against
such notice.
(vii) Religare Technova IT Services Limited (now merged with Religare
Technologies Limited) has received an order, passed by Department of
VAT, U.P. dated March 1, 2011 under Section 28(2) / Section 9(2) /
Section 9(4) of the U.P. VAT ACT, 2008 wherein a demand of Rs. 33,736,1
85/- has been raised on the Company.
The Company has filed an appeal before the Additional Commissioner of
VAT (Appeals) Noida and the commissioner has passed reheard order in
the favour of the company and proceedings are pending before assessing
officer for regular assessment.
(viii) Religare Technologies Limited received a notice dated 16th May,
2011 from Presiding Officer, Industrial Tribunal, New Court Complex,
Ludhiana regarding a complaint filed by Mr. Rajesh Bansal disputing his
termination and claiming an amount of Rs. 385,000. Further a notice dated
30th September, 2011 was received from the Controlling Authority under
Payment of Gratuity Act, 1972 and Assistant Labour Commissioner
(Central), KendriyaSadan, Sector 9-A, Chandigarh with respect to an
application filed by Mr. Rajesh Bansal regarding non-payment of alleged
full gratuity payable to him. The matters are currently pending.
(ix) Mr.Parvender Moudgil has filed a consumer complaint bearing number
518/11 before District Consumer Disputes Redressal Forum, New Court
Complex, Ludhiana against Religare Technova IT Services Ltd. Mr.Moudgil
has alleged that he had some dues against his HSBC credit card he
alleged that RTITSL being the recovery agent of the HSBC accepted Rs.
2,000 on behalf of the HSBC as full and final payment, however the HSBC
is still harassing him for further payment. The complainant has claimed
Rs. 50,000 as damages and Rs. 11,000 as litigation cost. The matter is
currently pending.
3 SEGMENT REPORTING:
Business Segment:
(i) The business segment has been considered as the primary segment.
(ii) The company's primary business segments are reflected based on
principal business activities, the nature of service, the differing
risks and returns.
(iii) The Company's primary business comprises of three segment viz.,
'IT Services' , 'Knowledge Services' and 'Healthcare Services'.
(iv) Segment revenue, results, assets and liabilities include amounts
identifiable to each segments allocated on reasonable basis.
(v) The accounting policies adopted for segment reporting are in line
with the accounting policies adopted for preparation of financial
information as stated in (1) above.
Geographical Segment:
As the company is primarily operating in one Geographic segment "Within
India" hence no separate information for Geographic segment wise
disclosure is required.
4 OTHER NOTES
(i) Due to change of policy regarding recognition of prepaid expenses
in case of expenses more than Rs. 20,000/- nothing impact in the
financial in respect of expenditure during the period
(ii) In view of accumulated losses, no provision for income tax is
considered necessary.
(iii) The Company has unabsorbed depreciation and carry forward losses
under the Income Tax Act 1961. Accordingly, keeping in view absence of
virtual certainty, deferred tax assets have not been recognised.
(iv) Taking into account management's assessment of growth of business,
the accounts of the company have been prepared on a "Going Concern"
basis even though, the net worth of the Company has substantially
eroded due to accumulated losses.
5 PREVIOUS YEAR FIGURES
The financial statements for the year ended March 31, 2011 had been
prepared as per the then applicable, pre-revised Schedule VI to the
Companies Act, 1956. Consequent to the notification of Revised Schedule
VI under the Companies Act, 1956, the financial statements for the year
ended March 31, 2012 are prepared as per Revised Schedule VI.
Accordingly, the previous year figures have also been reclassified to
conform to this year's classification. The adoption of Revised Schedule
VI for previous year figures does not impact recognition and
measurement principles followed for preparation of financial statements
except for accounting for dividend on investments in subsidiaries.
Mar 31, 2011
A. The Company was incorporated as a limited liability company by the
name of Religare Technova Services Limited on 22nd May 2009. It
received the certificate of Commencement of Business on 3rd June 2009.
W.e.f. June 12, 2009 name of the Company was changed from "Religare
Technova Services Limited" to "Religare Technologies Limited".
b. The Hon'ble High Court of Delhi approved the Scheme of Arrangement
(u/s 391 to 394 of the Companies Act 1956) on July 28th, 2010. The
Company received the certified copy of Final Order on August 13th, 2010
and the same was filed with Registrar of Companies on August 16th 2010.
c. Disclosures as per AS-14 is as follows:-
Activities Details
Amalgamating Companies Religare Technova Religare "Information
IT Services Limited Technova Services
* Business Division" of
Intellect Religare
Limited* Technova
Global
Solutions
Limited**
Nature of Business IT & IT Enabled Services
Method of Amalgamation Pooling of Interest Method/Purchase Method
Appointed Date of 01-April- 2009
Amalgamation
Effective Date of 16-August- 2010
Amalgamation
*As consideration in above said amalgamation, the Company has issued
8,079,463 Equity shares (Face Value of Rs. 10 each) to the shareholders
of the holding company 'Religare Technova Limited'. The Financials have
been prepared as per the approved scheme.
**Information Services Division has been merged with equal amount of
assets and liabilities.
There is an excess of Rs. 79,794,629/- of the Liabilities over the
Assets received in the amalgamation process. The same has been treated
as Goodwill as per the order of Hon'ble High Court of Delhi.
d. CONTINGENT LIABILITIES
(i) Religare Technova IT Services Limited (now merged with Religare
Technologies Limited) has received an order, passed by Service Tax
department, Ludhiana dated December 4, 2009 under Section 73 of the
Finance Act, 1994 wherein a demand of Rs. 5.41 lacs has been raised on
the Company.
The Company has filed an appeal before the Commissioner of Central
Excise (Appeals) - II, Chandigarh against the said order. The
proceedings are still pending before the Commissioner of Central Excise
(Appeal) for disposal.
(ii) Appeal has been filed to Commissioner of Value Added Tax in
respect of VAT Demand for Financial Year FY 2007- 08 amounting to Rs.
0.20 lacs.
(iii) The Income Tax Assessment of Religare Technova IT Services
Limited (now merged with Religare Technologies Limited) for the
assessment year 2008-09 has been completed by the Deputy Commissioner
of Income Tax, Circle-VII, Ludhiana under section 143(3) of the Act
vide order dated December 24, 2010. Consequent to certain disallowances
made in the assessment order, a demand of Rs. 354.51 lacs has been
raised on the Company. The AO has also initiated penalty proceedings
under section 271(1) (c) of the Act against the Company.
The Company has filed an appeal with Commissioner of Income Tax
(Appeals), II, Ludhiana against the said assessment order. In reply to
the notice for initiation of penalty proceedings, the Company has filed
a letter with the AO requesting to keep the penalty proceedings in
abeyance till the disposal of Appeal filed before CIT(A).
(iv) Religare Technova IT Services Limited (now merged with Religare
Technologies Limited) ("the Company") has received order dated Mar-30,
2011 passed by Assessing officer u/s 201(1)/201(1A) of the Act for
financial year 2008-09, wherein demand amounting to Rs. 20.06 lacs has
been raised on the Company on account of TDS not deducted/TDS deducted
but not paid by the Company. The said demand was primarily on account
of mismatch in the online database of tax department with the returns/
challans filed by the Company.
The Company has preferred an appeal against the same to CIT(A)-XXX and
the same is pending for disposal.
(v) The Income tax assessment of Religare Technova Business Intellect
Limited (now merged with Religare Technologies Limited) for assessment
year 2008-09 was completed by the Assistant Commissioner of Income Tax,
Circle-15 (1), New Delhi under section 143(3) of the Act vide
assessment order dated December 31, 2010. Pursuant to the additions
made in the said assessment order, the returned loss of the subject
assessment year has been reduced from Rs. 79.47 lacs to Rs. 12.39 lacs.
The AO has also initiated penalty proceedings under section 271(1) (c)
of the Act against the Company.
The Company has filed an appeal with Commissioner of Income Tax
(Appeals), XVIII, New Delhi against the said assessment order. In reply
to the notice for initiation of penalty proceedings, the Company has
filed a letter with the AO requesting to keep the penalty proceedings
in abeyance till the disposal of Appeal filed before CIT(A).
e. Fixed Deposits with Scheduled Banks includes Rs. 79.65 (Previous
Year Rs. 65.31) lacs pledged against the bank guarantee issued by bank
and Rs. 8.19 (Previous Year Rs. 4.03) lacs pledged with VAT
Authorities.
f. Advances paid towards the acquisition of fixed assets not put to
use before March 31, 2011, are disclosed under capital
work-in-progress. Estimated amount of Contract (net of advances)
remaining to be executed on capital account and not provided for is `
2308.00 (Previous Year Rs. 12.10) Lacs.
j. Segment Reporting:
Business Segment:
(i) The business segment has been considered as the primary segment.
(ii) The company's primary business segments are reflected based on
principal business activities, the nature of service, the differing
risks and returns.
(iii) The Company's primary business comprises of three segment viz.,
'IT Services' , 'Knowledge Services' and 'Healthcare Services'.
(iv) Segment revenue, results, assets and liabilities include amounts
identifiable to each segments allocated on reasonable basis.
(v) The accounting policies adopted for segment reporting are in line
with the accounting policies adopted for preparation of financial
information as stated in (1) above.
k. Related party Disclosures as required by Accounting Standard 18
"Related Party Disclosures" issued by Companies (Accounting Standard)
Rules, 2006 and the relevant provisions of Companies Act are given
below:
Nature of Relationship Name of Party
1. Holding company/Controlling NA
Enterprises
2. Fellow Subsidiary & NA
Subsidiaries of Fellow-
Subsidiaries
3. Associates and joint ventures C2L Biz Solutions Private Limited
of the reporting enterprise
and the investing party or
venturer in respect of which
the reporting enterprise is
an associates or a joint
venture
4. Individual owning directly Mr. Malvinder Mohan Singh
or indirectly interest Mr. Shivinder Mohan Singh
in voting power that gives Mrs. Nimmi Singh
them control, and relatives Mrs. Harjit Grewal
of any such individual; Mrs. Japna Malvinder Singh
Baby Nimrita Parvinder Singh
Baby Nanaki Parvinder Singh
Baby Nandini Parvinder Singh
Mrs.Aditi Shivinder Singh
Master Udayveer Parvinder Singh
Master Anhad Parvinder Singh
Master Vivan Parvinder Singh
Master Kabir Parvinder Singh
5. Enterprises over which Dion Global Solutions Limited*
persons covered under (4) RHC Holding Pvt. Ltd.Religare
are able to exercise Finvest Limited
significant influence Religare Capital Markets Limited
with whom transaction Religare Travels India Limited
have taken place Aegon Religare Life Insurance
Company Limited
Religare Wellness Limited
Religare Aviation Limited
Religare Asset Management Company
Limited
Religare Arts Initiative Limited
Religare Commodities Limited
Religare Enterprises Limited
Religare Insurance Broking Limited
Religare Macquarie Wealth
Management Ltd.
REL Infrafacilities Limited**
Religare Securities Limited
Super Religare Laboratories
Limited
Escorts Heart Institute & Research
Centre Limited
Escorts Hospital and Research
Centre Limited
Fortis Clinical Research Limited
Fortis Healthcare Limited
Hiranandani Healthcare Private
Limited
Escorts Heart and Super Specialty
Hospital Limited
Fortis Hospitals Limited
Fortis Hospotel Ltd.
International Hospital Limited
Oscar Investments Limited
Religare Health Insurance Company
Limited
Vistaar Religare Capital Advisors
Limited Medsource Health Care
Pvt. Ltd
Religare Housing Development
Finance Corp. Ltd.***
Escorts Heart Centre Limited
Fortis Malar Hospitals Limited
Sunrise Medicare Private Limited
Impact Agencies Private Limited
Impact Projects Private Limited
Religare Aviation Training
Academy Private Limited
Religare Aviation Engineering
Private Limited
Religare Voyages Business
Services Pvt. Ltd.
Religare Finance Limited
Religare Capital Market Plc
Religare Bullion Ltd.
Religare InfoTech Pvt. Ltd.
*Formerly known as Religare
Technova Limited
**Formerly known as Religare
Realty Limited
***Formerly Maharishi Housing
Development Finance Corp. Ltd.
m. Due to change of policy regarding recognition of prepaid expenses
in case of expenses more than Rs. 20,000/- , the expenditure during the
period has been increase by Rs. 1.28 Lacs
o. In view of accumulated losses, no provision for income tax is
considered necessary.
p. The Company has unabsorbed depreciation and carry forward losses
under the Income Tax Act 1961. Accordingly, keeping in view absence of
virtual certainty, deferred tax assets have not been recognised.
q. Taking into account management's assessment of growth of business,
the accounts of the company have been prepared on a "Going Concern"
basis even though, the net worth of the Company has substantially
eroded due to accumulated losses.
r. Other Information with regards to other matters specified in
clauses 3,4,4A,4C and 4D of Part II of Schedule VI to the Companies
Act, 1956 are either nil or not applicable to the Company for the
period ended March 31, 2011.
s. There are no transactions during the year with Micro, Small and
Medium Enterprises during the year and as such there is no balance
outstanding as at March 31, 2011.
Signature to Schedule A to S forming part of the Financial Statements
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