1. [B15] Investments in subsidiaries and associates
a) The Companys subsidiary Optimus Global Services Limited (`Optimus)
incorporated in September 2002, is engaged in the business processing
outsourcing services. Optimus has accumulated losses amounting to
Rs.2,822.35 as at March 31, 2011 on account of initial/set up stage
operation in earlier years and on account of slowdown in BPO industry
during the last three years. The management is optimistic about the
future growth of Optimus and expects that Optimus will earn profits in
the future. Accordingly, management believes that there is no other
than temporary diminution in the value of its investments in the
subsidiary and hence it is stated at cost.
b) The Companys equity ownership interest in Adrenalin eSystems
Limited (ASL) is 40.25% as at March 31, 2011. ASL is primarily
engaged in the business of providing specific solutions relating to
Human Relations suite of software solutions. The accumulated losses to
the extent of Rs.2,941.10 as per the unaudited financial statements of
ASL as on March 31, 2011 are on account of initial / start-up stage of
operations. ASL has earned nominal profits in current year. As per the
valuation of ASL as at March 31, 2011 carried out by the independent
valuation expert, there is no diminution in the carrying value of
investments. Accordingly, management believes that there is no other
than temporary diminution in the value of its investments in ASL and
hence it is stated at cost.
c) The Companys equity ownership interest in NMSWorks Software Private
Limited (NMS) is 39.59% as at March 31, 2011. NMS is primarily
engaged in the business of designing network management in
Telecommunication and Internet Services. The Company has made
substantial profits of Rs. 363.04 during the year. The orders secured
during the year have reduced the accumulated losses. NMS had
accumulated losses aggregating to Rs. 180.46 as per the unaudited
financial statements of NMS as on March 31, 2011. Accordingly, the
Company had determined and recorded a provision of Rs. 415, in the
earlier years, for other than temporary diminution in the value of
equity investment in NMS.
d) The Company has acquired entire equity interest in Laser Soft
Infosystems Limited (Laser Soft), a leading Banking software services
company specializing in serving the unique needs of India & emerging
markets with effect from November 16, 2009. The total consideration for
acquisition is Rs.5,201.05 subject to price adjustment conditions based
on future financial performance of Laser Soft over the next two years.
The Company has paid a sum of Rs.4,322.94 for 94.29% equity interest as
at March 31, 2011. The Company has accrued for the consideration
payable for the balance equity shares, as the management expects the
payment is probable in accordance with the term of the agreement and a
reasonable estimate of the amount can be made as at March 31, 2011.
e) The Company has acquired 51% equity stake in Indigo Tx Software
Private Limited, a SAAS Software developer of Rs.800.75 on May 10,
2010. The company has the obligation to acquire the balance equity at a
price to be determined based on future financial performance over a
period of 6 years.
f) The Company has acquired 100% equity in SFL Properties Ltd. The
total consideration for acquisition is Rs. 984.53.
g) Laser Soft Infosystem Limited & SFL Properties Private Limited,
subsidiaries of the company are proposed to be merged with the company
with effect from April 1, 2011.
2. [B9] As at March 31, 2011, the Company had no outstanding dues to
Micro and Medium enterprises (March 31, 2010: Rs.Nil). The list of
Micro and Medium enterprises was determined by the Company on the basis
of information available with the Company. The Company also had no
outstanding dues that require to be furnished under Section 22 of the
Micro, Small and Medium Enterprises Development Act, 2006.
3. [B20] Previous year figures have been regrouped/reclassified,
wherever necessary, to conform to current year presentation.
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