Zensar Technologies

Rs. in Lakhs
 
                                                    2009      2008
 
 1.  Contingent Liabilities
 
 (a) Income Tax:
 Matters decided in favour of the Company
 by appellate authorities, where the              337.65    501.66
 the Income Tax Department is in further appeal.
 Matters on which the Company is in appeal        716.44    272.59
 
 (b)  Sales Tax/Value Added Tax:
 
 Claims against the Company regarding
 sales tax against which the
 Company has preferred appeals.                     77.49    69.59
 
 (c) Claim in respect of rented premises.          141.94   191.27
 
 (d) Claims against the Company not
   acknowledged as debts.                            61.85   61.85
 
 (e) Guarantees given by the Company
    in respect of loans and
    working capital limits taken by
    the subsidiaries.                              8411.63  6839.69
    The loans and working capital limits taken
    by the subsidiaries are secured by a pari
    passu charge against the immovable fixed
    assets of the Company situated at Kharadi.
 
 (f) Customs Duty:
 
 (g) From 1969 to 1979, customs duty has been provided on the basis of
 provisional assessments, which are not admitted by the Customs
 Authorities.  Pending settlement of the foregoing, a deposit of Rs.
 6.79 Lakhs (Previous year: Rs. 6.79 Lakhs) has been made and bonds
 aggregating to Rs. 54.43 Lakhs (Previous year: Rs. 54.43 Lakhs)
 guaranteed by the General Insurance Corporation of India have been
 executed. From 16th August 1988 to 31st March 1993, pursuant to changes
 in the Customs Valuation Rules, the Customs Authorities have cleared
 the Companys consignments on provisional basis on execution of bonds
 aggregating Rs. 1618.45 Lakhs (Previous year: Rs.  1618.45 Lakhs),
 representing the entire value of the import consignments. Adjustments,
 if any, on this account, would be made as and when the assessments are
 finalised. The Company has been legally advised that the liability on
 this account is not expected to exceed Rs. 31.00 Lakhs (Previous year:
 Rs. 31.00 Lakhs), which has been provided for.
 
 2.  Related Party Disclosures
 
 List of Related Parties (as identified and certified by the Management)
 (i) Parties where control exists
 
 a.  Wholly owned subsidiaries:
 
 Zensar Technologies, Inc., USA Zensar Technologies (UK) Limited Zensar
 Technologies (Singapore) Pte. Limited Zensar Technologies GmbH, Germany
 (under Liquidation) Zensar Transformation Services Limited (formerly
 known as ICIM Systems and Engineering Services Limited) Zensar OBT
 Technologies Limited (formerly known as OBT Global Private Limited)
 Zensar OBT Technologies Inc., USA (merged with Zensar Technologies Inc.
 w.e.f. 31st March 2009) Zensar ThoughtDigital LLC (merged with Zensar
 Technologies Inc. w.e.f. 31st March 2009) Zensar Advanced Technologies
 Limited (wholly owned subsidiary w.e.f. 17th September 2008)
 
 b.  Other subsidiaries / Entities under joint control Zensar
 Technologies (Shenzen) Limited
 
 c.  Parties having control (directly or indirectly):
 
 RPG Industries Pvt. Limited
 CHI Investments Limited
 Hilltop Holdings India Limited
 Jubilee Investments and Industries Limited
 Kocilim Breweries Pvt. Limited
 Blue Niles Holdings Limited
 Pedriano Investments Limited
 Fujitsu Services Ltd. (Upto 4th July 2007)
 Fujitsu Services Holdings B.V.
 (Upto 4th July 2007)
 Electra Partners Mauritius Limited
 
 (ii) Key Management Personnel
 
 Dr. Ganesh Natarajan
 Mr. Parmod Bhalla (upto 30th November 2008)
 Mr. S. Balasubramaniam
 Mr. V. Balasubramanian
 Mr. Sanjay Marathe
 Ms. Vaijayanti Deshpande
 Ms. Prameela Kalive
 Mr. Hiren Kulkarni
 
 Notes:
 
 (i) The above does not include gratuity contributions made under group
 gratuity policy of the Company as the amount is not available
 separately.
 
 (ii) Computation of net profit and commission payable to the Directors
 as per Section 349 of the Act has not been given as no commission is
 payable to Directors during the year ended 31st March 2009.
 
 3.  Investment in subsidiary in Japan
 
 On 17th September 2008, the Company acquired the minority shareholders
 holding of 40% in Zensar Advanced Technologies Limited (ZATL). The 40%
 shareholding consisting of eight shares was purchased for Rs. 183.76
 Lakhs (US0,000). ZATL is now a wholly owned subsidiary of the
 Company.
 
 4.  Dues to Micro, Small and Medium enterprises
 
 The Company has compiled this information based on the current
 information in its possession. As at 31st March 2009, no supplier has
 intimated the Company about its status as a Micro or Small Enterprise
 or its registration with the appropriate authority under the Micro,
 Small and Medium Enterprises Development Act, 2006
 
 5.  Expenditure on Research and Development
 
 During the year, the Department of Scientific and Industrial Research
 has accorded the recognition as In-House R&D unit to the Company. The
 Company has incurred capital expenditure amounting to Rs. 78.34 Lakhs
 (Previous year: Rs. 74.93 Lakhs) on development activities during the
 year.
 
 6.  Other Information
 
 a.  The Company is engaged in the development of computer software. The
 production and sale ofsuch software cannot be expressed in any generic
 unit. Hence, it is not possible to give the quantitative details of
 sales and the information as required under Paragraphs 3 and 4C of Part
 II of Schedule VI of the Companies Act, 1956 of India.
 
 b.  Additional information pursuant to Part IV of Schedule VI to the
 Companies Act, 1956 is set out in the Annexure.
 
 7.  Reclassification
 
 Prior year comparatives have been reclassified to conform with current
 years presentation, where applicable.  Signatures to Schedules 1 to 14
 forming part of the Balance Sheet as at 31st March 2009 and the Profit
 and Loss Account for the year ended 31 st March 2009.