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 equity shares is entitled to one vote
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
* Amount Written off in respect of Leasehold land for the period of
lease which has expired.
** Building was revalued on 1st April, 2005 with reference to the fair
market value; amount added on revaluation was Rs.76,558,113; the
revalued amount substituted for historical cost on 1st April 2005 was
Rs. 126,130,511, based on report issued by approved independent valuer.
1. Adjustments/ deductions include obsolete fixed assets discarded
during the year. (Cost Rs.Nil accumulated depreciation and amortization
Rs.Nil) (Previous year Cost Rs.66,180 and depreciation and amortization
2. Figures shown in brackets are in respect of Previous Period.
1. (i) In rupees As at 31.03.2012 As at 31.03.2011
Claims against Company not
acknowledged as debt and
pending before the Courts in 887,150 882,963
Mumbai. The Company expects
that the matter will be re
solved in Company''s favour
and no liability is expected.
(ii) Contingent Liability :
Particulars As at 31.03.2012 As at 31.03.2011
Disputed ESIC Liability: 135,627 135,627
ESIC demand disputed and
pending decisions before
Amount paid there against
and included under Short
Term Loans and Advances
Note No.15 Rs.35,000
Previous year (Rs.35,000)
2. (a) The Company, considering the erosion/substantial erosion in
the net worth of its wholly-owned subsidiaries located at U.S.A.,
U.K. and Singapore, had made provision for diminution in the value of
investments in the said subsidiaries aggregating to Rs. 214,674,767
(Previous year Rs.214,674,767) and for doubtful loans/advances given to
said subsidiaries aggregating to Rs.114,306,058 (Previous year
Rs.114,306,058) and also for doubtful debts being debts due from one of
the step down subsidiary located at UK and a wholly-owned subsidiary
located at U.S.A. of Rs.17,393,388(Previous year Rs.17,393,388).
Out of the two subsidiaries located at U.K. one subsidiary stands
dissolved in the previous year and another stands dissolved in the
current year. The step down subsidiary was also dissolved in the
earlier year. Pursuant to application made to the Regulatory Authority,
the name of the subsidiary located at Singapore had been Struck Off in
the previous year.
Consequent to such dissolutions/ struck off, the Company is in the
process of seeking approvals from the Reserve Bank of India (RBI), for
writing off these amounts from the books of account. The Company would
make the necessary adjustments as and when approvals from the RBI are
received. Such adjustments would have no impact on the Profit and Loss
(b) A wholly-owned subsidiary located at UK, was dissolved during the
year. Accordingly, in the previous year, Exceptional Item of
Rs.1,517,688 on account of loan written back as no longer payable to
said subsidiary, was credited to Profit and Loss Account.
The deferred tax assets, not recognized as at the year end, would be
accounted for in the subsequent year/years considering the requirements
of the Accounting Standard (AS) 22 on Accounting for Taxes on
Income, regarding reasonable/virtual certainty and the accounting
policy followed by the Company in this respect.
FOB Value of Exports includes:
Software Services Exports Rs. 3,203,139 (Previous year Rs. 3,799,578)
and Income from Software Services by foreign Branch Rs. 8,103,801
(Previous year Rs. 5,594,564)
* Repayable on demand and interest free.
** Interest bearing loan @7% p.a. up to March 31,2005, interest free
thereafter and repayable by March 31, 2007 as per revised repayment
schedule, as approved by the Board of Directors and intimated to
Reserve Bank of India as per Foreign Exchange Management Act, 1999
# Amounts outstanding as at March 31, 2012 stand fully provided for
towards doubtful recoveries.
Note: There are no investments by the loaners in the shares of the
parent company and /or subsidiary companies.
3. The Company has presented the data relating to its segments based
on its consolidated financial statements, which are presented in the
same annual report. Accordingly in terms of provisions of Accounting
Standard (AS) 17 on ''Segment Reporting, no disclosures related to
segments are presented in its stand-alone financial statements.
* Of these, Rs.42,348,262 (previous year Rs. 42,348,262) has been
provided towards doubtful recoveries.
** Fully provided towards doubtful recoveries (previous year
Note: Figures in Brackets indicate previous year figures.
4. Post Employment Benefit Plans
(i) Defined contribution plans
The Company makes contributions towards provident fund to a defined
contribution retirement benefit plan for qualifying employees. The
Provident Fund plan is operated by Regional Provident Fund
Commissioner. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to
fund the benefits.
The Company recognized Rs. 6,775,404 (Previous year Rs. 6,335,783) for
provident fund contributions in the profit and loss account. The
contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
(ii) Defined benefit plan
The Company has defined benefit plan for qualifying employees in
respect of Gratuity benefits. The scheme provides for payment to vested
employees as under:
On Normal retirement/early retirement/withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting
period of 5 years of service.
On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any
The most recent actuarial valuation of the present value of defined
benefit obligation for gratuity was carried out at March 31, 2012 by an
actuary. The present value of the defined benefit obligations and the
related current service cost and past service cost, were measured using
the Projected Unit Credit Method.
5. Trade receivables, trade payables, short term loans and advances,
other current assets and other current liabilities are subject to
confirmation and reconciliation if any.
6. Previous year''s figures have been regrouped wherever necessary,
to correspond with the figures of the current year. Amounts and other
disclosures for the preceding year are included as integral part of the
current year financial statements and are to be read in relation to the
amounts and other disclosures relating to the current year. Figures
have been rounded off to the nearest rupee.