1.Contingent liabilities
Amount in Rs. ''000s
Particulars Year ended Year ended
31-03-2011 31-03-2010
Corporate guarantee given by the
Company to its direct and indirect
subsidiaries
a) APA Engineering
Private Limited 20,000 20,000
b)TAKE Global Ltd, UK 976,057 NIL
Corporate guaratee
given by the Company
to its Limited Liability
Partnership
TAKE Solutions Global LLP 215,000 NIL
Claims against the Company, 46,543 27,876
not acknowledged as debts [Net of
amount paid to statutory
authoritiesRs.8,081]
Outstanding Bank NIL 14,000
Guarantee
Claims against the Company not acknowledged as debts is in respect to
demand from Indian Income tax authorities for payment of additional tax
of Rs. 465.43 lakhs (Rs. 278.76 Lakhs) upon completion of their tax
review for the assessment years 2006 07, 2007 08 and 2008 09. The tax
demand is mainly on account of disallowance of software product
development expenses claimed by the company as revenue expenditure and
instead allowing the same as a capital expenditure with consequential
depreciation. The matter is pending before the Commissioner of Income
tax (Appeals), Chennai.
On May 23, 2008 the company has received an order for the Assessment
Year 2003 04 from Income Tax Appellate Tribunal (ITAT) disallowing the
software product expenses claimed by the company as revenue expenditure
and instead allowing the same as a capital expenditure with
consequential depreciation and thereby reducing the benefit of carrying
forward of losses by Rs. 159.14 lacs to the subsequent assessment
years. However, no demand has been raised for the said assessment year.
The company has filed an appeal with the Honorable High Court of Tamil
Nadu against the order of ITAT. The management believes that the
ultimate outcome of the proceeding will not have a material adverse
effect on the company''s financial position and results of operation and
hence, no adjustment has been made to the financial statements for the
year ended March 31, 2011.
The Company is contesting the demands and the Management, including its
tax advisors, believes 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 its
operations.
(Refer to Schedule 12, 1, AS 29 (a), (b), (c), (d) & (e) in the
Significant Accounting Policies and Notes to Accounts of the annual
standalone Financial Statements).
2. Quantitative details
The Company is primarily engaged in the development and maintenance of
computer software. The production and sale of such software cannot be
expressed in any generic unit. Hence, it is not possible to give the
quantitative details of sales and certain information as required under
paragraphs 3,4C and 4D of part II of schedule VI to the Companies Act,
1956.
(Refer to schedule 12, 2 ( c )in the Significant Accounting Policies
and Notes to Accounts of the annual standalone financial statements).
3. Related party Disclosure & transactions
Related party Disclosure for the year ended March 31, 2011
List of Related parties
Holding Company
TAKE Solutions Pte. Limited, Singapore
Subsidiaries (held directly)
1. APA Engineering Private Limited, India
2. TOWELL TAKE Investments LLC, Muscat
3. TAKE Solutions Inc., USA
4. CMNK Consultancy & Services Private Limited, India
5. TAKE Solutions Global Holdings Pte. Ltd., Singapore (Added during
the year)
Subsidiaries (held indirectly)
6. RPC Power India Private Limited, India (by virtue of control over
composition of Board of Directors)
7. TOWELL TAKE Solutions LLC, Muscat
8. TAKE Solutions MEA Limited, Dubai
9. Mirnah Technology Systems Limited, Saudi Arabia
10. Applied Clinical Intelligence, LLC, USA
11. Clear Orbit Inc, USA (Merged with TAKE solutions Inc., USA w.e.f
30 Sept 10)
12. TAKE Solutions GMBH, Switzerland (Divested w.e.f 22 Feb 11)
13. TAKE Enterprise Services Inc, USA
14. TAKE Intellectual Properties Management Inc, USA
15. CMNK Services Private Limited, India (Divested w.e.f 10 Feb 11)
16. TAKE Solutions Information Systems Pte. Ltd. Singapore ( Added
during the year)
17. CMNK Computer Systems Pte. Ltd., Singapore ( Added during the
year)
18. TAKE Global Ltd., UK ( Added during the year)
19. WCI Consulting Group Ltd., UK (Added during the year)
20. WCI Consulting Ltd., UK (Added during the year)
21. WCI Consulting Ltd., USA (Added during the year)
Partner in Partnership Firm
1. TAKE Solutions Global LLP, India
Key Management Personnel
1. Mr. S. Sridharan, Managing Director
2. Mr. Srinivasan H.R., Vice Chairman & Non Executive Director
3. Mr. D.V. Ravi, Non Executive Director
4. Mr. Ram Yeleswarapu, Non Executive Director
5. Mr. Bala Latupalli, Non Executive Director
Enterprises over which Key Management Personnel and their relatives
exercise significant influence with whom transactions have taken place
during the year
1. Aakanksha Management Consultancy & Holdings Private Limited, India.
2. Shriram Capital Limited, India
Other Related Parties
1. TAKE Solutions Limited ESOP Trust, India the trust is effectively
controlled by the company
2. WJ. Towell & Co, LLC, Muscat Joint Venture Partner.
(1) During the year, the Company has invested Rs 348,785 [10,000 Equity
Shares of Sing $ one each] representing 100% stake in TAKE Solutions
Global Holdings Pte. Ltd., Singapore.
(2) During the year, the Company has made additional investment in
TOWELL TAKE Investments LLC amounting to Rs. 4,792,980 [39,219 Equity
Shares of OMR one each] and Rs. 47,411,640 [392,190 Equity Shares of
OMR one each] against Share Application Money remitted in the Previous
Year(s).
(Refer to Schedule 12, 1, AS 13, (d), (e) in the Significant Accounting
Policies and Notes to Accounts of the annual standalone Financial
Statements)
6.Dues to micro, small and medium enterprises
The Company has no dues to micro, small and medium enterprises as at
March 31, 2011 and March 31, 2010.
(Refer to Schedule 12, 2 (j) in the Significant Accounting Policies and
Notes on accounts of the annual standalone Financial Statements).
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