Mar 31, 2023
The Company has only one class of equity shares having face value of 110 each. The holder of the equity share is entitled to dividend right and voting right in the same proportion as the capital paid-up on such equity share bears to the total paid-up equity share capital of the Company. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in the same proportion as the capital paid-up on the equity shares held by them bears to the total paid-up equity share capital of the Company.
The performance obligation for search related services is satisfied after the provision of services over the period of contract.
The performance obligation for website development is satisfied on delivery of software and first time hosting and related services is satisfied over the tenure of contract.
The performance obligation is satisfied at the time of delivery of certificate to the customer.
The performance obligation is satisfied after the services are rendered on which the fees are levied.
1) During the financial year 2022-2023, the carried forward unspent amount of 110.5 million lying under Just Dial Limited Unspent Corporate Social Responsibility (CSR) A/C 2020-2021 was spent on CSR Activities as per Annual Action Plan.
During the financial year 2022-2023, the carried forward unspent amount of 123.2 million lying under Just Dial Limited Unspent Corporate Social Responsibility (CSR) A/C 2021-2022 was spent on CSR Activities as per Annual Action Plan and the balance unspent amount of 14.5 million is proposed to be spent during the financial year 2023-2024.
2) Due to COVID-19 pandemic situation and/or State-wise lockdown imposed, the implementing agencies were not able to complete their projects as per the prescribed timelines and accordingly, the allocated budget for the said projects in respective financial years could not be spent. Therefore, during the financial year ended March 31, 2022, there was an unspent amount of 127.7 million allocated for ongoing CSR projects, which has been transferred to Just Dial Limited Unspent Corporate Social Responsibility (CSR) A/C 2021-2022. Further, during the financial year 2021-2022, the Company has spent 118.2 million from Just Dial Limited Unspent Corporate Social Responsibility (CSR) A/C 2020-2021
Nature of CSR Activities - The Company has broadly identified the sectors such as education and health care for its CSR activities.
The transactions with related parties are made on terms equivalent to those that prevail in armâs length transactions. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
27: Gratuity and other post-employment benefits plans
I) Defined Contribution plan
Contribution to provident fund of 1257.2 million (March 31, 2022 - 1168.0 million) is recognised as an expense in Note 19 âEmployee benefits expenseâ of the Statement of profit and loss.
The Company has a defined benefit gratuity funded plan. Every employee who has completed five years or more of service gets a gratuity on resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.
The following tables summarise the components of net gratuity benefits expense recognised in the Statement of profit and loss and the funded status and amounts recognised in the Balance sheet for the gratuity plan
Methods and assumptions used in preparing sensitivity and their limitations: The liability was projected by changing certain assumptions and the total liability post the change in such assumptions have been captured in the table above. This sensitivities are based on change in one single assumption, other assumptions being constant. In practice, scenario may involve change in several assumptions where the stressed defined benefit obligation may be significantly impacted.
Note : The Company has not made any grants during the year and hence the above disclosure is not required to be given for the year ended March 31,2023.
Exercise period for all the ESOP schemes is seven years from the date of vesting of the options.
The carrying amount of Employee stock options reserve as at March 31,2023 is 1237.0 million ( March 31,2022 - 1371.1 million). The expense recognised for employee services received during the year ended March 31,2023 is 195.4 million (March 31,2022 - 1216.9 million)
1) There are certain cases against the Company pending in various courts. The Management believes that based on legal/ technical advice from experts that the ultimate outcome of these cases will not have a material/ adverse impact on the Companyâs financial position and results of operations.
2) The Company is contesting the income-tax demands and the Management believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The Management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Companyâs financial position and results of operations.
The Company has ongoing disputes with income-tax authorities of India pertaining to tax treatment of certain expenses for Assessment Year (A.Y.) 2017-18, A.Y. 2018-19, AY 2020-21 & AY 2021-22 (income-tax assessment is completed till A.Y. 2021-22)
Assessment Year 2017-18 - The demand of 180.9 million was raised for A.Y. 2017-18. The Company has paid 16.8 million against demand of A.Y. 2017-18 and 112.6 million has been adjusted by the tax department against earlier years refunds against demand of A.Y. 2017-18 resulting into total payment of 119.4 million against demand of AY 2017-18 resulting into a net demand of 162.1 million (including interest). As per Rectification Orders and Order giving effect to Appellate Orders
passed during the previous year for various years, refund of 11.7 million was additionally determined due to the Company, but not adjusted against the above demand of A.Y. 2017-18. The Company has filed Rectification application with the Assessing Officer (âAOâ) and an appeal against the Assessment Order for A.Y. 2017-18 before the Commissioner of Income-Tax (Appeals) which are pending for disposal.
Assessment Year 2018-19 - There is no outstanding demand for A.Y. 2018-19. However, there are some additions as per the Assessment Order for A.Y. 2018-19 against which the Company has filed an appeal on May 23, 2021 before the National Faceless Appellate Authority (NFAC) which is pending for hearing.
Assessment Year 2020-21- The demand of 110.22 million was raised for AY 2020-21.However, there are some additions as per the Assessment Order for A.Y. 2020-21 against which the company has filed Rectification application with the AO on October 21, 2022 and an appeal before the NFAC on October 20, 2022, which is pending for hearing.
Assessment Year 2021-22- The demand of 128.0 million was raised for AY 2021-22.However, there are some additions as per the Assessment Order for A.Y. 2021-22 against which The Company has filed Rectification application with the AO on January 13, 2023 and an appeal before the NFAC on January 12, 2023, which is pending for hearing.
Based on Managementâs evaluation it expects the tax authorities to accept the tax treatment considered by the Company for all the above mentioned years and disputes and thereby does not expect any material impact on the taxable profits/ losses in the future periods. Consequently, provision for this uncertain tax position is not recorded.
30: Details of dues to Micro and Small Enterprises as per Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
The information regarding Micro or Small Enterprises has been determined on the basis of information available with the Management, which has been relied upon by the auditors.
For the purpose of the Companyâs capital management, capital includes issued capital and all other Equity reserves. The primary objective of the Companyâs capital management is to ensure the going concern operation and to maintain an efficient capital structure to support the corporate strategy and maximise shareholder value.
The capital structure is governed by policies approved by the Board of Directors and is monitored by various metrics. The Company maintains focus on capital efficiency without incurring material indebtedness and has positive working capital and free cash flows. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31,2022.
The Management assessed that cash and cash equivalents, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The Management assessed that fair value of loans and deposits and other financial liabilities approximate their carrying amount since they are carried at amortised cost in these financial statements.
There have been no transfers between Level 1 and Level 2 during the year ended March 31,2023 and March 31,2022.
33: Financial risk management objectives and policies
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Board of Directors.
The key risks include market risk, credit risk and liquidity risk. The Board of Directors reviews and agrees policies and procedures for management of these risks.
Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.
The Company does not have any borrowings. The Companyâs investment in debt instruments and loans given by the Company are at fixed interest rates, consequently the Company is not exposed to interest rate risk. In order to optimise the Companyâs position with regards to finance income and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by continuous review of investment portfolio and portfolio exposure to instruments having lower credit rating, balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
Thus, the Company is not exposed to significant interest rate risk as at the respective reporting dates.
The Company undertakes minimal transactions denominated in foreign currency, consequently exposures to exchange rate fluctuations is not significant. The Management has taken a position not to hedge this currency risk.
The Company is exposed to equity price risks arising from equity investments. The Companyâs equity investments are held for strategic rather than trading purposes.
b) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations and arises principally from the Companyâs receivables from rental deposits given, loans given, investments made and balances at bank.
The carrying amount of financial assets represents the maximum credit exposure. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by credit-rating agencies. The credit risk on mutual funds, and debt instruments is limited because the counterparties are generally banks, financial institutions and sovereign bonds with high credit ratings assigned by credit rating agencies.
None of the financial instruments of the Company result in material concentrations of credit risk. The Companyâs objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.
Liquidity risk is the risk that the Company will not be able to settle or meet its obligations as they fall due. The Companyâs policy on liquidity risk is to maintain sufficient liquidity in the form of cash and investment in liquid mutual funds to meet the Companyâs operating requirements with an appropriate level of headroom. In addition, processes and policies related to such risks are overseen by senior management. The Management monitors the Companyâs net liquidity position through rolling forecasts on the basis of expected cash flows.
The Standalone financial statements of the Company for the year ended March 31,2023, were reviewed by the Audit Committee and were approved by the Board of Directors at their meeting held on April 17, 2023.
37: Disclosure as per Schedule III of the Companies Act, 2013
i) The Company has title deeds for all the immovable properties held in the name of the Company.
ii) The Company does not have any benami properties. There are no proceedings initiated or pending against the Company for holding Benami property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules thereunder.
iii) The Company is not declared as a âwilful defaulterâ by any bank or financial institution or other lender.
iv) Just Dial Inc., Delaware, USA, which had no significant operations was dissolved during the year on March 17, 2023
v) During the year, an application filed by the Company for striking off of JD International Pte. Ltd., Singapore, which was nonoperational was approved by the authorities on February 21,2023.
vi) MYJD Private Limited has not commenced its operations.
viii) There no charges or satisfaction yet to be registered with Registrar of Companies (ROC).
ix) The Company has not traded or invested in crypto currency or virtual currency.
x) The Company does not have any transactions recorded in the books of account that has been surrendered or disclosed as income during the year in the assessments under Income Tax Act, 1961.
xi) The Company does not have any Capital-work-in progress or intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan.
xii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entity(ies) (intermediaries) with the understanding that the intermediary shall ;
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or
b) provide any guarantee, security, or the like to or on behalf of the ultimate beneficiaries.
xiii) The Company has not received any fund from any other person(s) or entity(ies), including foreign entity(ies) (funding party) with the understanding (whether recorded in writing or otherwise) that the funding party shall ;
a) directly or indirectly lend or invest in other persons or entities indentified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
Mar 31, 2022
The Company has only one class of Equity shares having a par value of '' 10 per share. Each holder of the Equity share is entitled to one vote per share. The Company declares and pays dividends in ''. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders.
The performance obligation for search related services is satisfied after the provision of services over the period of contract.
The performance obligation for website development is satisfied on delivery of software and first time hosting and related services is satisfied over the tenure of contract.
The performance obligation is satisfied at the time of delivery of certificate to the customer.
The performance obligation is satisfied after the services are rendered on which the fees are levied.
The Company pays sales incentives to its employees for each contract that they obtain. The Company has elected to defer the expense in the nature of sales incentives (included under employee benefits) over the duration of contract based on which the revenue is deferred.
1) Due to COVID-19 pandemic situation and/or State-wise lockdown imposed, the implementing agencies were not able to complete their projects as per the prescribed timelines and accordingly, the allocated budget for the said projects in respective financial years could not be spent. Therefore, during the financial year ended March 31, 2022, there was an unspent amount of '' 277 lakhs allocated for ongoing CSR projects, which has been transferred to Just Dial Limited Unspent Corporate Social Responsibility (CSR) A/C 2021-2022 in accordance with Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, as compared to an amount of '' 287 lakhs, transferred to Just Dial Limited Unspent Corporate Social Responsibility (CSR) A/C 2020-2021, for the previous financial year. Further, during the current financial year, the Company has spent '' 182 lakhs from Just Dial Limited Unspent Corporate Social Responsibility (CSR) A/C 2020-2021 and balance amount of '' 105 lakhs remaining unspent as on March 31, 2022.
2) In the exceptional COVID-19 pandemic scenario, on appeal of the Secretary to the Ministry of Corporate Affairs (MCA) on March 30, 2020 to all Chief Executives of the Companies to contribute to PM CARES Fund over and above the minimum prescribed corporate social responsibility (CSR) spends, which can be later offset against their CSR obligations of subsequent years, if so desired, the Managing Director and Chief Executive Officer of the Company with the consultation of Independent Directors contributed to PM CARES Fund of an amount of '' 25 lakhs with an intention to offset excess amount i.e. '' 23 lakhs against the CSR obligations arising in the subsequent years. Accordingly '' 23 lakhs has been offset against the CSR obligations for Financial Year 2020-2021.
Nature of CSR Activities - The Company has broadly identified the sectors such as education and health care for its CSR activities.
27: Gratuity and other post-employment benefits plans
I) Defined Contribution plan
Contribution to provident fund of '' 1,680 lakhs (March 31, 2021 - '' 1,145 lakhs) is recognized as an expense in Note 19 âEmployee benefits expenseâ of the Statement of profit and loss.
II) Defined Benefit plan
The Company has a defined benefit gratuity funded plan. Every employee who has completed five years or more of service gets a gratuity on resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.
The following tables summarise the components of net gratuity benefits expense recognised in the Statement of profit and loss and the funded status and amounts recognised in the Balance sheet for the gratuity plan.
The defined benefit plan expose the Company to actuarial risks such as interest rate risk, longevity risk and salary risk:
i) Interest rate risk : A decrease in the bond interest rate will increase the planâs liability.
ii) Longevity rate risk : The present value of defined benefit liability is calculated by reference to the best estimate of mortality of plan participants both during and after the employment. An increase in the life expectancy of the plan participants will increase the planâs liability.
iii) Salary risk : The present value of defined benefit liability is calculated by reference to the future salaries of plan participants. As such an increase in the salary of plan participants will increase the planâs liability.
Methods and assumptions used in preparing sensitivity and their limitations: The liability was projected by changing certain assumptions and the total liability post the change in such assumptions have been captured in the table above. This sensitivities are based on change in one single assumption, other assumptions being constant. In practice, scenario may involve change in several assumptions where the stressed defined benefit obligation may be significantly impacted.
29: Commitments and Contingencies A. Commitments |
('' in lakhs unless otherwise stated) |
|
Particulars |
As at March 31, 2022 |
As at March 31,2021 |
i) Estimated amount of contracts remaining to be executed on capital account and not provided for |
1,378 |
41 |
B. Pending litigations Contingent liabilities not provided for |
('' in lakhs unless otherwise stated) |
|
Particulars |
As at |
As at |
March 31, 2022 |
March 31, 2021 |
|
Claims against Company not acknowledge as debts |
450 |
432 |
450 |
432 |
1) There are certain cases against the Company pending in various courts. The Management believes that based on legal/ technical advice from experts that the ultimate outcome of these cases will not have a material/ adverse impact on the Companyâs financial position and results of operations.
2) The Company is contesting the income-tax demands and the Management believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The Management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Companyâs financial position and results of operations.
The Company has ongoing disputes with income-tax authorities of India pertaining to tax treatment of certain expenses for Assessment Year (A.Y.) 2017-18 and A.Y. 2018-19 (income-tax assessment is completed till A.Y. 2018-19)
Assessment Year 2017-18 - The demand of '' 809 lakhs was raised for A.Y. 2017-18. The Company has paid '' 50 lakhs against demand of A.Y. 2017-18 and '' 55 lakhs has been adjusted by the tax department against earlier years refunds against demand of A.Y. 2017-18 resulting into a net demand of '' 731 lakhs (including interest). As per Rectification Orders and Order giving effect to Appellate Orders passed during the year for various years, refund of '' 87 lakhs was additionally determined due to the Company, but is not issued to the Company as on the reporting date and thus is yet to be adjusted against the above demand of A.Y. 2017-18. The Company has filed Rectification application with the Assessing Officer and an appeal against the Assessment Order for A.Y. 2017-18 before the Commissioner of Income-Tax (Appeals) which are pending for disposal.
Assessment Year 2018-19 - There is no outstanding demand for A.Y. 2018-19. However, there are some additions as per the Assessment Order for A.Y. 2018-19 against which the Company has filed an appeal before the National Faceless Appellate Authority (NFAC) which is pending for hearing.
Based on Managementâs evaluation, it expects the tax authorities to accept the tax treatment considered by the Company and thereby does not expect any material impact on the taxable profits/losses in the future periods. Consequently, provision for this uncertain tax position is not recorded.
30: Details of dues to Micro and Small Enterprises as per Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
The information regarding Micro or Small Enterprises has been determined on the basis of information available with the Management, which has been relied upon by the auditors.
For the purpose of the Companyâs capital management, capital includes issued capital and all other Equity reserves. The primary objective of the Companyâs capital management is to ensure the going concern operation and to maintain an efficient capital structure to support the corporate strategy and maximise shareholder value.
The capital structure is governed by policies approved by the Board of Directors and is monitored by various metrics. The Company maintains focus on capital efficiency without incurring material indebtedness and has positive working capital and free cash flows. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2022 and March 31, 2021.
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The Management assessed that cash and cash equivalents, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
ii) Foreign currency exchange risk
The Company undertakes minimal transactions denominated in foreign currency, consequently exposures to exchange rate fluctuations is not significant. The Management has taken a position not to hedge this currency risk.
iii) Equity and other price risk
The Company is exposed to equity price risks arising from equity investments. The Companyâs equity investments are held for strategic rather than trading purposes.
b) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations and arises principally from the Companyâs receivables from rental deposits given, loans given, investments made and balances at bank.
The carrying amount of financial assets represents the maximum credit exposure. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by credit-rating agencies. The credit risk on mutual funds, and debt instruments is limited because the counter-parties are generally banks, financial institutions and sovereign bonds with high credit ratings assigned by credit rating agencies.
None of the financial instruments of the Company result in material concentrations of credit risk. The Companyâs objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.
c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to settle or meet its obligations as they fall due. The Companyâs policy on liquidity risk is to maintain sufficient liquidity in the form of cash and investment in liquid mutual funds to meet the Companyâs operating requirements with an appropriate level of headroom. In addition, processes and policies related to such risks are overseen by senior management. The Management monitors the Companyâs net liquidity position through rolling forecasts on the basis of expected cash flows.
The Management assessed that fair value of non-current loans and deposits and other financial liabilities approximate their carrying amount since they are carried at amortised cost in these financial statements.
There have been no transfers between Level 1 and Level 2 during the year ended March 31,2022 and March 31,2021.
33: Financial risk management objectives and policies
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Board of Directors.
The key risks include market risk, credit risk and liquidity risk. The Board of Directors reviews and agrees policies and procedures for management of these risks.
Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.
i) Interest rate risk
The Company does not have any borrowings. The Companyâs investment in debt instruments and loans given by the Company are at fixed interest rates, consequently the Company is not exposed to interest rate risk. In order to optimize the Companyâs position with regards to finance income and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by continuous review of investment portfolio and portfolio exposure to instruments having lower credit rating, balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
Thus, the Company is not exposed to significant interest rate risk as at the respective reporting dates.
The outbreak of Corona virus (COVID-19) pandemic globally and in India has caused significant disturbance and slowdown of economic activity. In assessing the recoverability of Companyâs assets, Management has made detailed assessments of recoverability and carrying values of its assets comprising of property, plant and equipment, investments and other current assets as at March 31, 2022 and on the basis of the evaluation, has concluded that there is no significant impact on its financial statements as at March 31,2022. COVID-19 continues to be remain a pandemic and its impact remains uncertain. However, the Company will continue to closely monitor any material changes to future economic conditions.
The Standalone financial statements of the Company for the year ended March 31,2022, were reviewed by the Audit Committee and were approved by the Board of Directors at their meeting held on April 29, 2022.
37: Disclosure as per Schedule III of the Companies Act 2013
i) The Company has title deeds for all the immovable properties held in the name of the Company.
ii) The Company does not have any benami properties. There are no proceedings initiated or pending against the Company for holding Benami property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules thereunder.
iii) The Company is not declared as a âwilful defaulterâ by any bank or financial institution or other lender.
iv) The Company does not have any transactions and there are no outstanding balance with struck off companies under section 248 of Companies Act 2013 or section 560 of Companies Act 1956.
v) There no charges or satisfaction yet to be registered with Registrar of Companies (ROC).
vi) The Company has not traded or invested in crypto currency or virtual currency.
vii) The Company does not have any transactions recorded in the books of account that has been surrendered or disclosed as income during the year in the assessments under Income Tax Act, 1961.
viii) The Company does not have any Capital-work-in progress or intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan.
ix) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entity(ies) (intermediaries) with the understanding that the intermediary shall ;
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or
b) provide any guarantee, security, or the like to or on behalf of the ultimate beneficiaries.
x) The Company has not received any fund from any other person(s) or entity(ies), including foreign entity(ies) (funding party) with the understanding (whether recorded in writing or otherwise) that the funding party shall;
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
Mar 31, 2021
The transactions with related parties are made on terms equivalent to those that prevail in armâs length transactions. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates. Outstanding balances at the year-end are unsecured and settlement occurs in cash.
30. Gratuity and other post-employment benefit plans
I) Defined Contribution plan
Contribution to provident fund of '' 1,145 lakhs (March 31, 2020 - '' 1,393 lakhs) is recognised as an expense in Note 22 âEmployee benefits expenseâ of the statement of profit and loss.
The Company has a defined benefit gratuity funded plan. Every employee who has completed five years or more of service gets a gratuity on resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.
The following tables summarise the components of net gratuity benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the gratuity plan.
1. There are certain cases against the Company pending in various courts. The Management believes that based on legal/ technical advice from experts that the ultimate outcome of these cases will not have a material/ adverse impact on the companyâs financial position and results of operations.
2. The Company is contesting the income-tax demands and the Management believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The Management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the companyâs financial position and results of operations.
Uncertain Direct Tax litigation
The Company has ongoing disputes with income-tax authorities of India pertaining to tax treatment of certain expenses. The companyâs income tax assessment is completed till assessment year 2017-18 and demand of '' 809 lakhs was raised for AY 2017-18. The Company has paid '' 50 lakhs against demand of AY 2017-18 and '' 55 lakhs has been adjusted by the tax department against earlier years refunds against demand of AY 17-18. As such, net outstanding demand for AY 2017-18 is '' 704 lakhs.
The Company has filed rectification application with the Assessing Officer which is pending for disposal and an appeal against the assessment order for AY 2017-18 has been filed before the Commissioner of Income Tax (Appeals) which is pending for hearing. Based on managementâs evaluation, it expects the tax authorities to accept the tax treatment considered by the Company and thereby does not expect any material impact on the taxable profits/ losses in the future periods. Consequently, provision for this uncertain tax position is not recorded.
The Company has received summary assessment intimation from the tax authorities for the assessment years 2015-16 and 2019-20 and demand of '' 8,628 lakhs and '' 4,135 lakhs has been raised for AY 2015-16 and AY 2019-20 respectively. The demand for AY 15-16 is arising due to wrong levy of tax on exempt income, non-credit for advance tax of '' 5,317 lakhs, non credit of self assessment tax of '' 180 lakhs, non-credit of dividend distribution tax of '' 287 lakhs and short credit for TDS by '' 62 lakhs and consequential wrong/excess levy of interest on the above. The demand for AY 19-20 is arising due to short credit of advance tax by '' 3,200 lakhs, short credit of TDS by '' 84 lakhs and wrong levy of interest u/s 234B & 234C of the Act. The Company has filed rectification aplication for
both the years with the Assessing Officer for which rectification order is yet to be passed. Once the rectification orders are passed, there will be no demand and refund will be due to the company. The credit for above prepaid taxes are reflected in Form 26AS for respective years. As such, based on Managementâs evaluation, it expects the tax authorities to accept the tax treatment considered by the Company and thereby does not expect any material impact on the tax liability in the future periods. Consequently, provision for this uncertain tax position is not recorded.
33. Details of dues to Micro and Small Enterprises as per MSMED Act, 2006
The information regarding Micro or Small Enterprises has been determined on the basis of information available with the management, which has been relied upon by the auditors.
Capital management
For the purpose of the Companyâs capital management, capital includes issued capital and all other Equity reserves. The primary objective of the Companyâs capital management is to ensure the going concern operation and to maintain an efficient capital structure to support the corporate strategy and maximise shareholder value.
The capital structure is governed by policies approved by the Board of Directors and is monitored by various metrics. The Company maintains focus on capital efficiency without incurring material indebtedness and has negative working capital and positive free cash flows. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2021 and March 31,2020.
Financial Instruments
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following table provides the fair value measurement hierarchy of financial assets and liabilities. carrying value and fair value of financial assets by categories as at March 31, 2021 were as follows:
The Management assessed that cash and cash equivalents, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the shortterm maturities of these instruments.
The Management assessed that fair value of non-current loans and deposits and other financial liabilities approximate their carrying amount since they are carried at amortised cost in these financial statements.
There have been no transfers between Level 1 and Level 2 during the year ended March 31, 2021 and March 31, 2020.
36. Financial risk management objectives and policies
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Board of Directors.
The key risks include market risk, credit risk and liquidity risk. The Board of Directors reviews and agrees policies and procedures for management of these risks.
Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.
The borrowings of the Company include redeemable preference shares which carries fixed coupon rate and consequently the Company is not exposed to interest rate risk. The Companyâs investment in debt instruments and loans given by the Company are at fixed interest rates, consequently the Company is
not exposed to interest rate risk. In order to optimise the Companyâs position with regards to finance income and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by continuous review of investment portfolio and portfolio exposure to instruments having lower credit rating, balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
Thus, the Company is not exposed to significant interest rate risk as at the respective reporting dates.
ii) Foreign currency exchange risk
The Company undertakes minimal transactions denominated in foreign currency, consequently exposures to exchange rate fluctuations is not significant. The management has taken a position not to hedge this currency risk.
iii) Equity and other price risk
The Company is exposed to equity price risks arising from equity investments. The Companyâs equity investments are held for strategic rather than trading purposes.
Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations and arises principally from the Companyâs receivables from debtors, rental deposits given, loans given, investments made and balances at bank.
The carrying amount of financial assets represents the maximum credit exposure. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by credit-rating agencies. The credit risk on mutual funds, and debt
instruments is limited because the counterparties are generally banks, financial institutions and sovereign bonds with high credit ratings assigned by credit rating agencies. Trade receivable consists of a few number of customers for whom ongoing credit evaluation is performed on the financial condition of the accounts receivable. Trade receivable is non-interest bearing and average credit period is 45 days.
None of the financial instruments of the Companyresult in material concentrations of credit risk. The Company''s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.
Liquidity risk is the risk that the Company will not be able to settle or meet its obligations as they fall due. The Company''s policy on liquidity risk is to maintain sufficient liquidity in the form of cash and investment in liquid mutual funds to meet the Company''s operating requirements with an appropriate level of headroom. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.
The operations of the Company were impacted, due to shutdown of offices on account of the lockdown imposed by the Government authorities to contain
the spread of the COVID-19 pandemic. Consequently, there has been an impact on the revenue from the contracts with customers which has been partially offset by major cost reduction (including reduction in Employee benefits expense, Advertising and sales promotion expenses, etc.). However, since early March 2021, India has witnessed a second wave of COVID-19 with a sudden rise in COVID-19 cases across the country. This has again led to imposing lockdown like restrictions across the country, which is likely to impact the economic activity.
While prioritising safety and well-being of its employees, the Company is extensively leveraging technology for its operations. While the Company has a strong Balance Sheet and cash position, the Company is re-evaluating all costs and focusing even more on automated processes to enable it to successfully navigate the ongoing uncertainties.
The Management, has made detailed assessments of recoverability and carrying values of its assets comprising of property, plant and equipment, investments and other current assets as at March 31, 2021 and on the basis of the evaluation, has concluded that there is no significant impact on its financial results as on March 31, 2021. However, the impact of COVID-19, particularly of the second wave, remains uncertain and the Company will continue to closely monitor any material changes to future economic conditions.
Subsequent events
The Standalone financial statements of the Company for the year ended March 31, 2021, were reviewed by the Audit Committee and were approved by the Board of Directors at their meeting held on May 14, 2021.
Mar 31, 2018
1: RELATED PARTY TRANSACTIONS
Name of Related Parties with relationship during the year
Related Party where control exists Subsidiary Company
Just Dial Inc., Delaware, United States of America JD International Pte Ltd., Singapore
Related Parties under Ind AS 24 with whom transactions have taken place during the year Key Management Personnel
Mr. V.S.S Mani - Managing Director and Chief Executive Officer*
Mr. V. Krishnan - Whole-time Director Mr. Ramani Iyer - Whole-time Director
Mr. B. Anand - Chairman and Independent Non-Executive Director Mr. Sanjay Bahadur - Independent Non-Executive Director Mr. Malcom Monterio - Independent Non-Executive Director Mr. Abhishek Bansal - Chief Financial Officer (from July 24, 2017)
Mr. Ramkumar Krishnamachari - Chief Financial Officer (upto July 11, 2017)
Mr. Sachin Jain - Company Secretary
Enterprises owned or significantly influenced by key Management Personnel or their relatives
Just Dial Global Private Limited
* Persons having significant influence on the company
Methods and assumptions used in preparing sensitivity and their limitations: The liability was projected by changing certain assumptions and the total liability post the change in such assumptions have been captured in the table above. This sensitivities are based on change in one single assumption, other assumptions being constant. In practice, scenario may involve change in several assumptions where the stressed defined benefit obligation may be significantly impacted.
The average duration of the defined benefit plan obligation at the end of the reporting period is 3.68 years (March 31, 2017: 3.66 years)
The expense recognised for employee services received during the year is Rs, 1,551 Lakhs ( March 31, 2017 - Rs, 1,594 Lakhs)
The following table list the inputs to the Black Scholes Models used for the options granted during the year ended March 31, 2017. There were no new options granted during the year ended March 31, 2018
2: COMMITMENTS AND CONTINGENCIES
A. Leases
Operating lease commitments - Company as lessee
Office premises are obtained on operating lease. The lease rent is payable as per the terms of the lease agreements. The lease terms are different for each of the leases ranging from 1 year to 9 years.
1. There are certain cases against the company pending in the various courts. The management believes that based on legal/ technical advice from experts that the ultimate outcome of these cases will not have a material/ adverse impact on the companyâs financial position and results of operations.
2. The Company is contesting the income tax demands and the management believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the companyâs financial position and results of operations.
Provision for other statutory liability
i) At March 31, 2015, the Company had a provision of ESIC liability of '' 303 Lakhs (pertaining to period April 2007 to September 2010) based on estimates and as per the provisions of the ESIC Act. Pursuant to the legal opinion obtained during the year ended March 31, 2016, the liability is time barred as per ESIC provision. Therefore the liability of '' 282 Lakhs has been written back during the year ended March 31, 2017 and based on the opinion a provision of '' 21 Lakhs on account of disputed liability has been retained. This provision will be adjusted/settled on completion of the assessment.
ii) The Company has received various demand intimations under Section 154 of the Income Tax Act, 1961, pertaining to financial year 2007-08 to 2012-13. The net outstanding liability is Nil (March 31, 2017: '' 1 lakh).
3: DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS PER MSMED ACT, 2006
Based on the information available with the Company, the Company does not have suppliers who are registered as micro or small enterprise under the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2018 and March 31, 2017. The information regarding micro or small enterprises has been determined on the basis of information available with the management, which has been relied upon by the auditors.
4: CAPITAL MANAGEMENT
For the purpose of the Companyâs capital management, capital includes issued capital and all other equity reserves. The primary objective of the Companyâs capital management is to ensure the going concern operation and to maintain an efficient capital structure to support the corporate strategy and maximise shareholder value.
The capital structure is governed by policies approved by the Board of Directors and is monitored by various metrics. The Company maintains focus on capital efficiency without incurring material indebtedness and has negative working capital and positive free cash flows. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.
5: FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATION AND FAIR VALUE MEASUREMENTS
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following table provides the fair value measurement hierarchy of financial assets and liabilities.
The management assessed that cash and cash equivalents, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The management assessed that fair value of non-current loans and deposits and other financial liabilities approximate their carrying amount since they are carried at amortised cost in these financial statements.
There have been no transfers between Level 1 and Level 2 during the year ended March 31, 2018 and March 31, 2017.
6: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Companyâs financial risk management is an intergral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Board of Directors.
Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market sensitive financial instruments including investments and deposits, receivables and payables.
The key risks include credit risk, interest rate risk and liquidity risk. The Board of Directors reviews and agrees policies and procedures for management of these risks.
a) Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed, leading to a financial loss. The company is exposed to credit risk from its operating activities and from its security deposits to landlords. To manage this, the company periodically assesses the financial reliability of customers/landlords, taking into account the financial condition, current economic trends.
None of the financial instruments of the company result in material concentrations of credit risk. The Companyâs objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure.
Financial assets
Balances with banks is subject to low credit risks due to good credit ratings assigned to these banks. Regarding other financial assets that are neither past due nor impaired, there were no indications as at March 31, 2018 (March 31, 2017: no indications) that defaults in payment obligations will occur.
b) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimise the Companyâs position with regards to finance income and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by continuous review of investment portfolio and portfolio exposure to instruments having lower credit rating, balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
The Company is not exposed to significant interest rate risk as at the respective reporting dates.
c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to settle or meet its obligations as they fall due. The Companyâs policy on liquidity risk is to maintain sufficient liquidity in the form of cash and investment in liquid mutual funds to meet the Companyâs operating requirements with an appropriate level of headroom. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companyâs net liquidity position through rolling forecasts on the basis of expected cash flows.
Maturity profile of financial liabilities
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.
7: BUSINESS COMBINATION: SCHEME OF ARRANGEMENT WITH JUST DIAL GLOBAL PRIVATE LIMITED
In the year ended March 31, 2017, in order to consolidate and effectively utilise management, financial, administrative and technical resources and to derive operating and financial synergies, the Company (âResulting Companyâ) has entered in to the scheme of arrangement involving demerger of Data and Information undertaking (âDemerged undertakingâ) of Just Dial Global Private Limited (âJDGPLâ) and vesting of the same in the Resulting Company under Section 230 to 232 of the Companies Act, 2013 (the âschemeâ).
The National Company Law Tribunal (NCLT) vide its order dated March 22, 2017 had approved the scheme. The acquisition date of the Demerged Undertaking was March 22, 2017. During the year ended March 31, 2017, pursuant to the scheme and subject to completion of regulatory formalities the redeemable preference share had been disclosed as share suspense account under other equity. The difference between fair value of consideration paid of Rs, 11 Lakhs and the fair value of net assets taken over of Rs, 2,714 Lakhs amounting to Rs, 2,703 Lakhs was recognised in OCI and accumulated in equity as Capital Reserve.
As a consideration for the value of net assets transferred, in that year, the Company had issued 1,125,068, 6% Redeemable non-convertible preference shares of Rs,1 each to the shareholders of Just Dial Global Private Limited pursuant to completion of all regulatory formalities which got completed during the year ended March 31, 2018.
Mar 31, 2017
1 Corporate information
J ust Dial Limited (the âCompanyâ) was incorporated in India under the provision of Companies Act, 1956 on December 20, 1993. The registered office of the Company is located at Palm Court Building M, 501/B, 5th Floor, New Link Road, Beside Goregaon Sports Complex, Malad West, Mumbai 400064. The Company provides local search, search related services and software services to users in India through multiple platforms such as the internet, mobile internet, over the telephone (voice), text (SMS).
During the year ended March 31, 2017, the Company commenced provision of cloud based and application software services on outright sale or subscription basis.
(i) Dividend (including dividend tax)
Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind-AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.
(ii) Deferral of Revenue
As per Ind-AS 18 - Revenue, certain items of non-refundable fees received are now being recognized as revenue over the tenure of contracts as it reflects the substance of the transaction, which were earlier recognized upfront, based on performance of specific acts.
(iii) Security Deposits
Under the previous GAAP, interest free lease security deposits are recorded at their transaction value. Under Ind-AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind-AS 109 using effective interest rate method. Accordingly, adjustments mainly consists of amortization of deferred lease income / expense on security deposits given and accepted.
(iv) Fair value through Profit & Loss (FVTPL) Under Ind-AS, financial assets and financial liabilities designated at fair value through profit and loss (FVTPL) are fair valued at each reporting date with changes in fair value recognized in the statement of profit and loss. Under previous GAAP, they are measured at lower of cost with provision for diminution in value other than temporary.
(v) Re-measurement of Employee Benefits Under Ind-AS, the actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, such remeasurements were forming part of the consolidated statement of profit or loss for the year.
(vi) Deferred Tax
Tax adjustments include deferred tax impact on account of differences between Ind-AS and Previous GAAP.
(vii) Statement of Cash Flows
The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.
(viii) Reclassification
Pursuant to the disclosure requirements as per Ind-AS, the Company has re-classified certain assets and liabilities as at March 31, 2016 and April 1, 2015.
Significant reclasses includes, reclassification between Deferred tax assets and Income tax assets, Noncurrent investment and, Security deposits and prepayments, other current liabilities and financial liabilities.
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority
2: Equity Share capital
(i) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of the equity share is entitled to one vote per share. The Company declares and pays dividends in â.The dividend proposed by the board of directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(ii) Reconciliation of number of the equity shares outstanding at the beginning and at the end of the year
(iii) Details of shareholders holding more than 5% shares in the company
As per records of the company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
(iv) Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date
In addition the company has issued total 1,017,348 shares (March 31, 2016: 952,507) during the period of five years immediately preceding the reporting date on exercise of option granted under the employee stock option plan (ESOP) wherein part consideration was received in the form of employee services.
(v) Distribution made and proposed
Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as a liability (including Dividend distribution tax thereon) as at March 31.
(vi) Shares reserved for issue under options
For details of shares reserved for issue under the ESOP of the company, refer note 29.
Terms and conditions of the above financial liabilities:
- Trade payables are non-interest bearing and are normally settled as and when demanded/ due basis For explanations on the Companyâs credit risk management processes, refer to note 34.
3: Expenditure on Corporate Social Responsibilty (CSR)
The particulars of CSR expenditure are as follows:
a) Gross amount required to be spent by the Company during the year is Rs.369 lacs (March 31, 2016: Rs.303 lacs)
b) Amount spent during the year on:
4: Earnings per share
The following reflects the income and share data used in the basic and diluted EPS computations:
5: Related Party Disclosures
Name of Related Parties with relationship during the year
Related Party where control exists Subsidiary Company
Just Dial Inc, Delaware, United States of America JD International Pte Ltd, Singapore
Related Parties under Ind AS 24 with whom transactions have taken place during the year Key Management Personnel
Mr. V.S.S Mani - Managing Director and Chief Executive Officer1
Mr. V. Krishnan - Whole-time Director Mr. Ramani Iyer - Whole-time Director Mrs. Anita Mani - Director
Mr. B. Anand - Chairman Independent and Non-Executive Director Mr. Sanjay Bahadur - Independent and Non-Executive Director Mr. Malcom Monterio - Independent and Non-Executive Director Mr. Pulak Chandan Prasad - Independent and Non-Executive Director Mr. Ramkumar Krishnamachari - Chief Financial Officer Mr. Sachin Jain - Company Secretary
Enterprises owned or significantly influenced by key Management Personnel or their relatives
Just Dial Global Private Limited
Persons having significant influence on the company
The transactions with related parties are made on terms equivalent to those that prevail in armâs length transactions. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates. Outstanding balances at the year-end are unsecured and settlement occurs in cash.
Methods and assumptions used in preparing sensitivity and their limitations: The liability was projected by changing certain assumptions and the total liability post the change in such assumptions have been captured in the table above. This sensitivities are based on change in one single assumption, other assumptions being constant. In practice, scenario may involve change in several assumptions where the stressed defined benefit obligation may be significantly impacted.
6: Employee stock options plan (ESOP)
The Company has provided various equity settled share-based payment schemes to its employees. The details of the ESOP schemes are as follows:
Exercise period for all the above schemes is seven years from the date of vesting of the options.
The carrying amount of Employee stock options reserve as at March 31, 2017 is Rs.3,773 lacs ( March 31, 2016 -Rs.3,103 Lacs, April 01, 2015 - Rs.1,540 lacs)
The expense recognised for employee services received during the year is Rs.1,594 lacs ( March 31, 2016 - Rs.2,171 lacs)
Weighted average share price at the date of exercise for stock options exercised during the year was Rs.431(March 31, 2016 Rs.900)
7: Commitment and Contingencies
A. Leases
Operating lease commitments â Company as lessee
Office premises are obtained on operating lease. The lease rent is payable as per the terms of the lease agreements. The lease terms are different for each of the leases ranging from 1 year to 9 years.
The company has paid Rs.3,043 lacs (March 31, 2016: Rs.2,261 lacs) during the year towards minimum lease payment.
Future minimum rentals payable under operating leases are as follows:
1) There are certain cases against the company in the consumer court. The management believes that based on some legal/ technical advice from experts and that the ultimate outcome of these cases will not have a material/ adverse impact on the companyâs financial position and results of operations.
2) The Company is contesting the income tax demands and the management believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the companyâs financial position and results of operations.
Provision for other statutory liability
i) At March 2015, the Company had a provision of ESIC liability of Rs.303 lacs (pertaining to period April 2007 to September 2010) based on estimates and as per the provisions of the ESIC Act. Pursuant to the legal opinion obtained during the year March 31, 2016, the liability is time barred as per ESIC provision. Therefore the liability of Rs.282 lacs has been written back during the year ended March 31, 2017 and based on the opinion a provision of Rs.21 lacs on account of disputed liability has been retained. This provision will be adjusted/settled on completion of the assessment.
ii) The company has received various demand intimations under section 154 of the Income Tax Act, 1961, pertaining to financial year 2007-08 to 2012-13. The net outstanding liability of Rs.1 lac (March 31, 2016: Rs.1 lac) was recorded as provision against such demand notices.
iii) In respect of ongoing tax assessments, the outcome of which is considered probable, the Company has made aggregate provision of Rs.45 lacs (March 31, 2016: Rs.58 lacs)
8: Details of dues to Micro and Small Enterprises as per MSMED Act, 2006.
The Company does not have suppliers who are registered as micro or small enterprise under the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2017 and March 31, 2016.The information regarding micro or small enterprises has been determined on the basis of information available with the management, which has been relied upon by the auditors.
9: Business Combination: Scheme of arrangement with Just Dial Global Private Limited
During the year ended March 31, 2017, in order to consolidate and effectively utilise management, financial, administrative and technical resources and to derive operating and financial synergies, the Company (âResulting Companyâ) has entered in to the scheme of arrangement involving demerger of Data and Information undertaking (âDemerged undertakingâ) of Just Dial Global Private Limited (âJDGPLâ) and vesting of the same in the Resulting Company under section 230 to 232 of the Companies Act, 2013 (the âschemeâ).
The National Company Law Tribunal (NCLT) vide its order dated March 22, 2017 have approved the scheme,. The acquisition date of the Demerged Undertaking is March 22, 2017.
Pursuant to the scheme, all assets, liabilities, rights, business operations and activities forming part of the Demerged undertaking have been transferred to the Resulting Company at their respective Fair values as follows.
There are no contingent liabilities acquired in the scheme.
As a consideration for the value of net assets transferred, the Company shall issue 1 (One) 6% fully paid up Redeemable Preference Shares of Rs.1 each in resulting Company for every 1 (One) Equity share of Rs.10 each held in the demerged undertaking to the existing shareholders of the demerged undertaking as on the record date, aggregating to 1,125,068 shares of Rs.1 each. Pending completion of formalities, the redeemable preference share has been disclosed as share suspense account under other equity. There is no contingent consideration payable on this acquisition.
The difference between fair value of consideration paid of Rs.11 lacs and the fair value of net assets taken over of Rs.2,714 lacs amounting to Rs.2,701 lacs is recognised in OCI and accumulated in equity as Capital Reserve.
From the date of acquisition, Demerged undertaking has contributed Rs.Nil of revenue and Rs.Nil to the profit before tax of the Company. If the combination had taken place at the beginning of the year, revenue from operations would have been Rs.71,865 lacs and the profit before tax for the Company would have been Rs.15,626 lacs.
Pursuant to the merger, the Company has net cash flow of Rs.71 lacs on account of acquisition of cash and cash equivalents of demerged company pursuant to the Scheme.
Pursuant to the scheme on April 25, 2017, the authorised preference share capital of the Company got altered from Rs.120 lacs (1,200,000 Preference Shares of Rs.10 each) to Rs.120 lacs (12,000,000 Preference Shares of Rs.1 each) as per the provisions of Sections 13, 61 and 64 of the Act or any other applicable provisions of the Act.
10: Financial Instruments - Accounting classification and fair value measurements
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following table provides the fair value measurement hierarchy of the Groupâs financial assets and liabilities.
The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
There have been no transfers between Level 1 and Level 2 during the year ended March 31, 2017 and March 31, 2016.
11: Financial risk management objectives and policies
The Companyâs financial risk management is an intergral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Board of directors.
Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market sensitive financial instruments including investments and deposits, receivables and payables.
The key risks include credit risk, interest rate risk and liquidity risk. The Board of directors reviews and agrees policies and procedures for management of these risks.
a) Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed, leading to a financial loss. The company is exposed to credit risk from its operating activities and from its security deposits to landlords.To manage this, the company periodically assesses the financial reliability of customers/landlords, taking into account the financial condition, current economic trends.
None of the financial instruments of the group result in material concentrations of credit risk. The companyâs objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure.
Financial assets
Balances with banks is subject to low credit risks due to good credit ratings assigned to these banks. Regarding other financial assets that are neither past due nor impaired, there were no indications as at March 31, 2017 (March 31, 2016 : no indications) that defaults in payment obligations will occur.
b) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Companyâs position with regards to finance income and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by continuous review of investment portfolio and portfolio exposure to instruments having lower credit rating, balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
The Company is not exposed to significant interest rate risk as at the respective reporting dates.
c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to settle or meet its obligations as they fall due. The companyâs policy on liquidity risk is to maintain sufficient liquidity in the form of cash and investment in liquid mutual funds to meet the Companyâs operating requirements with an appropriate level of headroom. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companyâs net liquidity position through rolling forecasts on the basis of expected cash flows.
Maturity profile of financial liabilities
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.
12: Capital management
For the purpose of the Companyâs capital management, capital includes issued capital and all other equity reserves. The primary objective of the Companyâs capital management is to ensure the going concern operation and to maintain an efficient capital structure to support the corporate strategy and maximise shareholder value.
The capital structure is governed by policies approved by the Board of Directors and is monitored by various metrics. The Company maintains focus on capital efficiency without incurring material indebtedness and have negative working capital and positive free cash flows. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2017 and March 31, 2016.
13: Details of Specified Bank Notes (SBN) held and transacted
The details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December 30, 2016 pursuant to the requirement of Notification G.S.R 308 dated March 30, 2017 as mentioned below:
Mar 31, 2016
Note:
a. Aggregate market value of investment in unquoted mutual funds units held by the Company based on NAV declared on the balance sheet date by the mutual fund is RS,5,773,222,752 (March 31, 2015: RS,8,209,174,165)
b. Aggregate market value of investment in quoted bonds held by the Company based on NAV declared on the balance sheet date is RS,2,203,646,260 (March 31, 2015: RS,226,500,000)
c. The investment in Kotak FMP Series 157 (370 Days) - Direct Growth and Kotak FMP Series 163 (1100 Days) - Direct Growths subject to lien against overdraft facility of RS,250,000,000 availed by the Company from HDFC Bank utilization till March 31, 2016: RS, Nil (March 31, 2015: RS, Nil)
1. Related Parties
2. Names of related parties and related party relationship Related parties where control exists
Subsidiary Company Just Dial Inc, Delaware, United State of America
JD International Pte Ltd (from September 10, 2015) Related parties under AS 18 with whom transactions have taken place during the year
Key Management Personnel Mr. V. S. S. Mani - Managing Director and Executive
Officer
Mr. V. Krishnan - Whole time Director Mr. Ramani Iyer - Whole time Director Mrs. Anita Mani - Director Enterprises owned or significantly influenced by Key Just Dial Global Private Limited Management Personnel or their relatives
Additional related parties as per Companies Act 2013 with whom transactions have taken place during the year
Key Management Personnel Mr. Ramkumar Krishnamachari- Chief Financial Officer
Mr. Sachin . lain - Company Secretary
3. Leases
Operating lease : Company as lessee Office premises are obtained on operating lease. The lease rent is payable as per the terms of the lease agreements. The lease terms are different for each of the leases and the maximum lease term ranging from 1 year to 9 years. Some of the leases are renewable for further 5 years at the option of the Company. There are escalation clauses in the lease agreement for which rent is provided on straight lining basis. There is a lock in period of minimum 3 years in some lease agreements. There are no subleases. There is no restrictions place upon the companies by entering into these leases. The company also has a leasehold land with a lease term of 99 years with no escalation clause.
Notes :
1) There are certain cases against the company in the consumer court. Since the company is confident of defending the same, the management believes that the ultimate outcome of these cases will not have a material/ adverse impact on the company''s financial position and results of operations.
2) The Company is contesting the income tax demands and the management; believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company''s financial position and results of operations.
B) Provision for other statutory liability
1) At March 2015, the Company had a provision of ESIC liability of RS,30,251,804 (pertaining to period April 2007 to September 2010) based on estimates and as per the provisions of the ESIC Act. Pursuant to the legal opinion obtained during the year, the liability is time barred as per ESIC provision. Therefore the liability of RS,28,188,364 has been written back and based on the opinion a provision of RS,2,063,440 has been retained. This provision will be adjusted/settled on completion of the assessment.
2) The company has received various demand intimations under section 154 of the Income Tax Act, 1961, pertaining to financial year 2007-08 to 2012-13. The net outstanding liability of RS,100,140 (March 31, 2015: RS,199,240) was recorded as provision against such demand notices.
3) In respect of ongoing tax assessments, the outcome of which is considered probable, the Company has made aggregate provision of RS,5,784,196.
4. Details of dues to Micro and Small Enterprises as per MSMED Act, 2006.
The Company does not have suppliers who are registered as micro or small enterprise under the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2016 and March 31, 2015.The information regarding micro or small enterprises has been determined on the basis of information available with the management, which has been relied upon by the auditors.
5. Employee Stock Option Plans:
1. The Company has provided various equity settled share-based payment schemes to its employees. During the year ended March 31, 2014, ESOP Scheme 2008 and ESOP Scheme 2010 were in operation. During the year ended March 31, 2015, the board of directors and shareholders approved ESOP Scheme 2013 and ESOP Scheme 2014 for issue of stock options to employees of the company. During the year ended March 31, 2016 the following schemes were operational.
Notes:
Bonus shares: The exercise price for ESOP Pool 2 and Pool 3 of ESOP scheme 2008 and the weighted average fair value of options for Pool 2, and Pool 3 of ESOP Scheme 2008 are higher compared to ESOP Pool 5 and Pool 6 of ESOP Scheme 2010 as Company had issued bonus shares in the ratio of 55 shares for every 1 share held during the year ended March 31, 2011. The employees holding ESOP under Pool 2 and Pool 3 of ESOP Scheme 2010 were eligible to receive bonus shares on exercise of their options.
5 Weighted average share price at the date of exercise for stock options exercised during the was H900
6. Employee benefits
I) Defined Contribution plan
An amount pertaining to provident fund of RS,64,617,976 is recognized as an expense and included in Note no. 20. (RS,46,741,377 - March 2015)
II) Defined Benefit plan
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with an insurance Company in the form of a qualifying insurance policy.
The following tables summaries the components of net gratuity benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.
The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the year over which the obligation is to be settled.
7. Incorporation of JD International Pte Ltd
During the year in September 2015, the Company has subscribed to in 100 ordinary class of shares of JD International Pte Ltd for a consideration of SGD 100 (RS,4,715), a wholly owned subsidiary.
8. Acquisition of Bangalore Land
During the year ended March 31, 2016, the Company executed agreement to purchase 15 acres of leasehold land of RS,375,007,500 from Karnataka Industrial Area Development Board (KIADB) to establish an IT/ITES BPO and Software development Centre at IT/ITES Park, Devanahalli Industrial Area in Bangalore.
The Company is required to comply with various conditions for the above project including time limit for beginning and completion of construction and utilization of land. The company is in the process of preparation of project plan, submitting the documents and applying for NOC from applicable authorities. The capital commitment does not include any amount towards this project except for maintenance charges of RS,980,000.
9. Buyback of Shares
In accordance with Sec 68, 69, 70 and other applicable provisions of the Companies Act, 2013 and SEBI regulations and pursuant to the public announcement for buy back made by the Company, the Company initiated a buy back by way of tender offer through stock exchange mechanism for cash at price of RS,1,550 per equity share for an aggregate amount of up to RS,1, 645,323,450
Mar 31, 2015
1. CORPORATE INFORMATION
Just Dial Limited (Âthe Company'') was incorporated in India with
limited liability by shares on December 20,1993.
The equity shares of the Company are listed on The National Stock
Exchange of India Limited, the BSE Limited and MCX Stock Exchange
Limited.
The Company provides local search and related services to users in
India through multiple platforms such as the internet, mobile internet,
over the telephone (voice) and text (SMS).
2. 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 sectionl33 the Companies Act, 2013, read together along with
paragraph 7 of the Companies (Accounts Rule) 2014.
The financial statements have been prepared on an accrual basis and
under the historical cost convention. The accounting policies adopted
in the preparation of financial statements are consistent with those of
previous year except for change in accounting policy explained below.
3. LEASES Operating Lease
Office premises are obtained on operating lease. The lease rent is
payable as per the terms of the lease agreements. The lease terms are
different for each of the leases and the maximum lease term ranging
from 1 year to 9 years. Some of the leases are renewable for further 5
years at the option of the Company. There are escalation clauses in the
lease agreement for which rent is provided on straight lining basis.
There is a lock in year of minimum 3 years in some lease agreements.
There are no subleases.
4. PENDING LITIGATIONS
A) Contingent Liabilities not provided for
Particulars As at As at
March 31, 2015 March 31, 2014
Claims against the company not
acknowledged as debts (Refer
note 2) 10,732,543 3,744,056
Income Tax Demands(Refer note 1):
Income tax in respect of
Assessment years 2005-06,
2006-07, 2007-08, 2008-09 and 2,934,950 6,934,880
2009-10 in respect of which the
Company has preferred an appeal.
Tax Deducted at Source (TDS)
Demands(Refer note 1):
TD5 in respect of Assessment year
2011-12 of which the Company has
preferred an appeal. - - 146,193
Notes:
1) The Company is contesting the income tax demands and the management;
believe that its position will likely be upheld in the appellate
process. No tax expense has been accrued in the financial statements
for the tax demand raised. The management believes that the ultimate
outcome of this proceeding will not have a material adverse effect on
the company''s financial position and results of operations.
2) There are certain cases against the company in the consumer court.
Since the company is confident of defending the same, the management
believes that the ultimate outcome of these cases will not have a
material/adverse impact on the company''s financial position and results
of operations.
B) Provision for other statutory liability
1) At March 31, 2015, provision for contribution to Employee State
Insurance Corporation aggregates Rs.30,251,804 (March 31, 2014: Rs.30,
251,804) which is based on estimates and as per the provisions of the
ESIC Act. This provision will be adjusted / settled on completion of
the assessment.
2) The company has received various demand intimations under section
154 of the Income Tax Act, 1961, pertaining to financial year 2007-08
to 2012-13. The net outstanding liability of Rs.199,240 (March 31,
2014: Rs.1,224,593) was recorded as provision against such demand
notices.
5 CAPITAL AND OTHER COMMITMENTS Rs.
Particulars As at As at
March 31, 2015 March 31, 2015
(a) Estimated amount of contracts
remaining to be executed on capital
account and not 372,223,579 411,053,711
provided for
(b) Other Commitments 70,000,000 -
(c) For commitments related to acquisition of Bangalore land (refer
note 35)
(d) For commitments relating to lease arrangements (refer note 26)
6. DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS PER MSMED ACT,
2006.
The Company does not have suppliers who are registered as micro or
small enterprise under the Micro, Small and Medium Enterprises
Development Act, 2006 as at March 31, 2015 and March 31, 2014.The
information regarding micro or small enterprises has been determined on
the basis of information available with the management, which has been
relied upon by the auditors.
7. EMPLOYEE BENEFITS
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with an insurance Company in the form of a
qualifying insurance policy.
The following tables summarise the components of net gratuity benefit
expense recognised in the statement of profit and loss and the funded
status and amounts recognised in the balance sheet for the gratuity
plan.
8. ACQUISITION OF BANGALORE LAND
During the year ended March 31, 2015, the Company obtained the
possession of 15 acres of leasehold land for 99 years from Karnataka
Industrial Area Development Board (KIADB) to establish an IT/ITES BPO
and Software development Centre at IT/ITES Park, Devanahalli Industrial
Area in Bangalore and paid total consideration of Rs.375,007,500
The Company is in process of execution of Leasehold land agreement and
preparing the Project plan for the above project. Accordingly, capital
commitments in Note 28, does not include any amount towards this
project.
Further, the Company is required to comply with various conditions for
the above project including time limit for beginning and completion of
construction and utilisation of land.
9. ACQUISITION OF JUST DIAL INC. DELAWARE, UNITED STATES OF AMERICA
During the year in October 2014, the Company has acquired entire
shareholding in Just Dial Inc. Delaware, United States of America, from
Just Dial Global Private Limited for a consideration of USD 72,385
(Rs.4,467,964). Just Dial Inc is engaged in the business of providing
necessary administrative support services for making available
infrastructure, bill collection, database procurement and advertising
activities to Just Dial Limited to enable it to serve the customer in
the US.
10. EVENTS SUBSEQUENT TO MARCH 31, 2015
a) Subsequent to the year end on May 27, 2015 the compensation
committee granted 117,660 options to employees under ESOP scheme 2014
and ESOP Scheme 2013 ( May 15).
b) Subsequent to the year ended March 31, 2015, the Company has
purchased office premises at Mumbai at a consideration of Rs.90,000,000
from MrV. S. S. Mani (Managing Director and Chief executive officer)
and Mrs Anita Mani (Director).
11. Previous year figures have been regrouped/ reclassified, whenever
necessary, to conform to current year classification.
Mar 31, 2014
1. NATURE OF OPERATIONS
Just Dial Limited (''the Company'') was incorporated in India with
limited liability on December 20, 1993 under the name A&M
Communications Private Limited. The Company provides local search and
related services to users in India through multiple platforms such as
the internet, mobile internet, over the telephone (voice) and text
(SMS).
During the year, the Company completed the Initial Public Offer (''IPO'')
through offer for sale of equity shares by certain shareholders. The
equity shares of the Company were listed on The National Stock Exchange
of India Limited, The BSE Limited and MCX Stock Exchange Limited on
June 5,2013.
2 LEASES
OPERATING LEASE
Office premises are obtained on operating lease. The lease rent is
payable as per the terms of the lease agreements. The lease terms are
different for each of the leases and the maximum lease term ranging
from 1 year to 9 years. Some of the leases are renewable for further 5
years at the option of the Company. There are escalation clauses in the
lease agreement for which rent is provided on straight lining basis.
There is a lock in year of minimum 3 years in some lease agreements.
There are no subleases.
3 CONTINGENT LIABILITIES NOT PROVIDED FOR
Amounting
Particulars March 31,2014 March 31,2013
Income Tax Demands:
Income tax in respect of Assessment
years2005-06,2006-07,2007-08,
2008-09 and 6,934,880 15,248,795
2009-10 in respect of which the
Company has preferred an appeal.
Tax Deducted at Source (TDS) Demands:
TDSin respect of Assessment year
2011-12 of which the Company
has preferred 146,193 146,193
an aDDeal.
The Company is contesting the demands and the management, believe that
its position will likely be upheld in the appellate process. No tax
expense has been accrued in the financial statements for the tax demand
raised. The management believes that the ultimate outcome of this
proceeding will not have a material adverse effect on the company''s
financial position and results of operations.
4 DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS PER MSMED ACT,
2006.
The Company does not have suppliers who are registered as micro or
small enterprise under the Micro, Small and Medium Enterprises
Development Act, 2006 as at March 31,2014.The information regarding
micro or small enterprises has been determined on the basis of
information available with the management.
5 PROVISION FOR OTHER STATUTORY LIABILITY
a) At March 31, 2014, provision for contribution to Employee State
Insurance Corporation aggregates Rs. 30,251,804 (March 31,2013Rs.
30,251,804) which is based on estimates and as per the provisions of
the ESIC Act. This provision will be adjusted/ settled on completion of
the assessment.
b) During the year, Company has received various demand intimations
under section 154 of the Income Tax Act, 1961, pertaining to financial
year April 2007 to March 2014. The net outstanding liability ofRs.
1,224,593 has been recorded as provision against such demand notices.
6 EMPLOYEE BENEFITS
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with an insurance Company in the form of a
qualifying insurance policy.
The following tables summarise the components of net gratuity benefit
expense recognised in the statement of profit and loss and the funded
status and amounts recognised in the balance sheet for the gratuity
plan.
7 EXCEPTIONAL ITEM (SHARE ISSUE EXPENSES)
Share issue expenses as at March 31, 2012 comprised of expenses
incurred in connection with the Draft Red Herring Prospectus dated
August 12,2011 (the "initial DRHP") filed with the Securities and
Exchange Board of India (the "SEBI"). During the previous year ended
March 31,2013, the Company withdrew the initial DRHP and adjusted the
expenses of Rs. 39,286,169 against the securities premium account. This
was based on the legal opinion obtained and in accordance with Section
78 of the Companies Act, 1956. The balance expense ofRs. 15,247,758 has
been charged to the statement of profit and loss as an exceptional item
during the year ended March 31,2013.
8 Other receivables during the previous year March 31,2013 comprises
of share issue expenses incurred in connection with the Company''s IPO
through offer for sale ("the Issue"). As per offer agreement between
the Company and the selling shareholders, all expenses with respect to
the Issue will be borne by the selling shareholders. Accordingly, the
Company has classified the expenses incurred in connection with the
Issue as receivable from selling shareholders under other receivables.
9 Previous year figures have been regrouped/ reclassified, whenever
necessary, to conform to current year classification.
Mar 31, 2013
1. NATURE OF OPERATIONS
Just Dial Limited (''the Company'') was incorporated in India with
limited liability on December 20, 1993 under the name A&M
Communications Private Limited. The Company provides local search
related services to users in India through multiple platforms such as
the internet, mobile internet, over the telephone (voice) and text
(SMS).
Subsequent to April 1, 2013, the Company completed the IPO through
offer for sale of equity shares by certain shareholders. The equity
shares of the Company were listed on The National Stock Exchange of
India Limited, The BSE Limited and MCX Stock Exchange Limited on June
5, 2013.
2. 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.
The financial statements have been prepared on an accrual basis and
under the historical cost convention. The accounting policies adopted
in the preparation of financial statements are consistent with those of
previous year
3 LEASES
Operating Lease
Office premises are obtained on operating lease. The lease rent is
payable as per the terms of the lease agreements. The lease terms are
different for each of the leases and the maximum lease term ranging
from 1 year to 9 years. Some of the leases are renewable for further 5
years at the option of the Company. There are escalation clauses in the
lease agreement for which rent is provided on straight lining basis.
There is a lock in year of minimum 3 years in some lease agreements.
There are no subleases.
Details of lease payments during the year ended and future commitments
on non-cancellable operating leases are as follows:
4 DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS PER MSMED ACT, 2006
The Company does not have suppliers who are registered as micro or
small enterprise under the Micro, Small and Medium Enterprises
Development Act, 2006 as at March 31, 2013. The information regarding
micro or small enterprises has been determined on the basis of
information available with the management.
5 PROVISION FOR EMPLOYEE RELATED LIABILITY
At March 31, 2013, provision for Employee State Insurance Contribution
aggregates Rs. 30,251,804 (As at March 31, 2012 Rs. 30,251,804) which
is based on estimates and as per the provisions of the ESIC Act. This
provision will be adjusted/settled on completion of the assessment.
6 EMPLOYEE BENEFITS
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with an insurance Company in the form of a
qualifying insurance policy.
The following tables summarise the components of net gratuity benefit
expense recognised in the statement of profit and loss and the funded
status and amounts recognised in the balance sheet for the gratuity
plan.
7 DEMERGER OF IT RELATED TESTING BUSINESS, OTHER RELATED SERVICES AND
SPECIFIC ASSETS
During the previous year, the Honorable High Court of Bombay vide its
order dated October 14, 2011 had approved the demerger of undertaking
providing IT testing business and other related services along with the
IT infrastructure utilised for providing such services and the
Company''s investment in Just Dial Global Private Limited (''JD
Global'') to JD Global.
Pursuant to the Scheme, from the appointed date of August 1, 2011, the
book value of assets of IT testing business of Rs. 259,939 and the
Company''s aggregate investment in preference shares of JD Global of
Rs. 724,757,289 were transferred to JD Global. There were no
liabilities pertaining to the Demerged Undertaking. The value of the
assets including the preference shares held by the Company in JD Global
aggregating to Rs. 725,017,228 transferred pursuant to the Scheme was
adjusted against balance in the Company''s securities premium account
to the extent of Rs. 326,642,238 and the balance of Rs. 398,374,990 was
adjusted against surplus i.e. the balance in statement of profit and
loss during the year ended March 31, 2012.
As a consideration for transfer, the equity and preference shareholders
of the Company as on August 1, 2011 received equity shares in JD Global
in proportion to their shareholding in the Company.
8 DISCONTINUING OPERATIONS
As indicated in the note 38 above, during the previous year, the
Company demerged the IT testing business and other related services
along with the IT infrastructure utilised for providing such services.
The details of revenue expenses, profits and cash flows relating to the
IT related and other related services (discontinuing operations) for
the previous year ended March 31, 2012 are as follows:
9 SHARE ISSUE EXPENSES
(a) Share issue expenses as at March 31, 2012 comprised of expenses
incurred in connection with the Draft Red Herring Prospectus dated
August 12, 2011 (the "initial DRHP") filed with the Securities and
Exchange Board of India (the "SEBI"). During the year ended March
31, 2013, the Company withdrew the initial DRHP and adjusted the
expenses of Rs. 39,286,169 against the securities premium account. This
was based on the legal opinion obtained and in accordance with Section
78 of the Companies Act, 1956. The balance expense of Rs. 15,247,758
has been charged to the statement of profit and loss as an exceptional
item.
(b) Other receivables as at March 31, 2013 comprises of share issue
expenses incurred in connection with the Company''s IPO through offer
for sale ("the Issue"). As per offer agreement between the Company
and the selling shareholders, all expenses with respect to the Issue
will be borne by the selling shareholders. Accordingly, the Company has
classified the expenses incurred in connection with the Issue as
receivable from selling shareholders under Other receivables.
10 EVENTS SUBSEQUENT TO MARCH 31, 2013
(a) On April 3, 2013, Board approved the allotment of 97,744 equity
shares to employees holding ESOP options under Pool 5 and 6 and the
allotment of 250,208 equity shares (including 245,740 bonus equity
shares in the ratio of 55:1) to employees holding 4,468 options under
Pool 2.
(b) Further on May 4, 2013, the Board approved the allotment of 21,376
equity shares to employees holding ESOP under Pool 5 and 6.
(c) The Company completed the IPO through offer for sale of 17,497,458
equity shares of Rs. 10 each at a price of Rs. 530 per equity share for
Qualified Institutional Bidders and Non Institutional Bidders and at a
price of Rs. 483 per equity share for Retail Individual Bidders
aggregating upto Rs. 9,191,414,725 and the equity shares of the Company
got listed on The National Stock Exchange of India Limited, The BSE
Limited and MCX Stock Exchange Limited on June 5, 2013.
11 Previous year figures have been regrouped/ reclassified, whenever
necessary, to conform to current year classification.
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