1. Company Overview
Datamatics Global Services Limited (DGSL) was incorporated on November
3,1987 as Interface Software Resources Private Limited. The name of
the Company was changed to Datamatics Technologies Private Limited on
December 18, 1992. On December 27,1999, the Company converted itself
from a Private Limited Company into a Public Limited Company and the
name of the Company was changed to Datamatics Technologies Limited on
January 13,2000. The name of the Company was changed from Datamatics
Technologies Limited to Datamatics Global Services Limited (DGSL)
with effect from January 17,2009.
Datamatics, a trusted partner to several Fortune 500 Companies is a
global provider of Information Technology (IT) and Knowledge Process
Outsourcing (KPO) and Consulting services. The Company provides
business aligned next-generation solutions to a wide-range of industry
verticals that help enterprises across the world overcome their
business challenges and achieve operational efficiencies. These
solutions leverage innovations in technology, knowledge of business
processes, and domain expertise to provide clients a competitive edge.
2. Contingent Liability:
Provision is made in the accounts if it becomes probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation.
Contingent Liabilities to the extent not provided for:
(3 ) (^)
(a) Details of guarantees and
sureties outstanding as at:
(i) Guarantees given by Banks to
Embassy Centre Premises Co-operative
Society Ltd. 405,295 405,295
(ii) Guarantees given by Banks to the
Assistant Commissioner of Central
Excise and Customs department 1,134,250 1,134,250
(iii) Guarantees given by Banks to
UNFCCC, BONN, Germany for Euro
84,398.70 4,650,000 4,650,000
(b) Disputed Income Tax Liability 15,604,689 6,030,769
(c) Sales Tax 5,074,525 229,000
(d) Others — 5,434,236
3. Capital and other commitments:
Estimated amount of contracts on capital account remaining to be
executed and not provided (net of advances) for Rs 244.17 million (P.Y.Rs
4. Forward and Options Contracts Outstanding as on 31.03.2011 is USD
7.9 million (P.Y. USD 6.5 million) (equivalent to Rs 374.9 million (P.Y.
Rs 316 million)). The foreign currency exposures that are not hedged by
a derivative instrument or otherwise is r 23.99 million (P.YRs 79.74
5. In the opinion of the Company, the Current Assets, Loans and
Advances are approximately of the value stated, if realized in the
ordinary course of business. The provision for all known Liabilities
and for Depreciation is adequate and not in excess of the amount
6. The Company has received confirmations from few debtors and for
majority of loans and advances. Remaining debtors,creditors and loans
and advances are subject to confirmation and reconciliation if any.
7. The Management information system of the Company identifies and
operates in a single primary business segment. In the opinion of the
management these activities are governed by the same set of risk and
returns as per AS-17 dealing with segmental reporting. All the assets
of the Company are located in India and hence secondary segmental
reporting is on the basis of the geographical location of customers.
Fixed assets in India used in the company''s business or liabilities
contracted in India cannot be identified to any geographical segment as
the fixed assets and services are used interchangeably between
geographical segments and a meaningful segregation is not possible.
8. Related party disclosures:
(i) As per Accounting Standard 18, as notified by the rules the
disclosures of Related Parties and transactions during the year as
deemed in the Accounting Standard are given below:
(A) Subsidiary Companies:
Datamatics Global Services Inc. Datamatics Global Services GmbH
Datamatics Technologies UK Ltd. Datamatics Software Services Ltd.
Datamatics Global Technologies Ltd. Datamatics Global Technologies AG
Datamatics Infotech Ltd. Datamatics Global Services Pty. Ltd.
Datamatics Global Technologies GmbH
(Q Key Managerial Personnel Dr. L. S. Kanodia Mr. Rahul Kanodia
Mr.Vidur Bhogilal Mr. Sameer Kanodia
(D) Relatives of Key Managerial Personnel Mrs. Asha Kanodia Mrs.
Priyadarshini Kanodia Datamatics Staffing Services Pvt. Ltd.
(B) Associate Companies and Joint Ventures: Datamatics Financial
Services Ltd. Cybercom Datamatics Information Solutions Ltd Datamatics
Applied DSP Pvt. Ltd. Anemone Management Consultancy Pvt. Ltd.
(E) Holding Company
Delta Infosolutions Pvt. Ltd.
9. Deferred Tax:
(i) During the year ended 31st March, 2011, the Company has reversed
deferred tax liability ofRs 2,816,204 in the Profit & Loss Account.
10. The Company has Outstanding Working Capital Loan/Advance of Euro
100,000 from its subsidiary Datamatics Technologies GmbH at a interest
rate of 1% p.a. above the LIBOR rate, and ofRs 81,843,468 from its
subsidiary Datamatics Software Services Limited at a interest rate of
8% p.a. as on March 31,2011.
11. Amount Recoverable from ESOP trust consists of Rs 69,347,270 paid
to Datamatics Staff Welfare trust during the year for purchase of
1,753,261 Equity shares of the Company.
12. During the year, Company has invested in 8% Non-Cumulative
Redeemable Preference Share capital of USD 500,000 in Datamatics Global
Technologies Ltd., incorporated in Mauritius.The said shares are
redeemable at the option of the Company.
* Since the employee wise break up of liabilities on account of
retirement schemes based on actuarial valuation is not ascertainable,
the amount relatable to Directors could not be included in above. **
The amount of commission payable includes Rs 525,000 (RY. Rs 650,000)
payable to non-wholetime directors. *** Does not include monetary
value of non-cash perquisites as per Income Tax Act,1961.
13. Portfolio Management services are provided by the Portfolio
Manager - Reliance Capital Asset Management Ltd (RCAML) registered with
SEBI vide registration No. INP000000423 and Trust Investment Advisors
Pvt. Ltd. (TIAPL) registered with SEBI vide registration No.
INP000001843. The portfolio Manager is engaged in investing funds in
accordance with SEBI (Portfolio Managers) Regulations, 1993 of its
client - Datamatics Global Services Ltd in securities and providing
portfolio management services.
RCAML and TIAPL has been appointed as the Portfolio Manager for
managing the investments of its funds on a discretionary basis to avail
of investment advisory and portfolio management services for the
purpose of investment to be made in securities. RCAML also holds the
Power of Attorney to hold investments in its name for investments made
on behalf of company. Investments made by RCAML under the Portfolio
Management Services are made in a pool account and therefore are not
held in the name of the Company.
14. The Company has Rs 101,714,678 (P.Y. Rs 139,592,553) as outstanding
Loans and Advances (Refer note 21 below) and Rs 812,412,594 (P.Y. Rs
731,278,219) as investment in seven of it''s 100% Subsidiaries at the
year end. The net worth of these subsidiaries has declined. The Company
has assured Financial Support. These investments are for long term and
are of strategic nature. As the management is confident of turning
around the subsidiaries in the near future provision for dimuniton in
the value, if at all required, is not made.
15. In terms of Section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006, the outstanding to these enterprises are
required to be disclosed. However, these enterprises are required to be
registered under the Act. In the absence of the information about
registration of the enterprise under the above Act, the required
information could not be furnished.
16. Export of Service includes gain of Rs 28.88 million (P.Y. Nil)
towards difference in the rate due to exchange fluctuation on
realisation of export/revaluation of debtors at the end of the year.
17. Prior period comparative:
Previous year figures have been appropriately reclassified/recast to
confirm to the current year''s presentations.