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Rolta India

BSE: 500366|NSE: ROLTA|ISIN: INE293A01013|SECTOR: Computers - Software
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Notes to Accounts Year End : Mar '18

1. Background

a. Overview

Rolta is a multinational organization headquartered in India. Rolta India Limited (RIL or the Company), a publicly held Company). Rolta is a leading provider of innovative IP-led IT solutions for many vertical segments, including Federal and State Governments, Utilities, Oil & Gas, Petrochemicals, Financial Services, Manufacturing, Retail, and Healthcare. Rolta is recognized for its extensive portfolio of solutions based on field-proven Rolta IP tailored for Indian Defence and Homeland Security. By uniquely combining its expertise in the IT, Engineering and Geospatial domains, Rolta develops State-of-the-Art Digital Solutions incorporating rich Rolta IP in the areas of Cloud, Mobility, IoT, BI and Big Data Analytics.

b. Basis of Preparation of Financial Statements

These financial statements are prepared in accordance with Indian Accounting Standards (IndAS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (''Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The IndAS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

In respect of a project awarded by a large and reputed agency (customer) to the Company, various project reports based on the specification defined by the customer, specifying the total cost of the project along with other commercial terms has been submitted to the customer. Based on this the project is being executed as per the requirement defined by the customer. The formal contract will be entered in due course. In order to ensure timely completion of the project, which is very critical, Company has proceeded with the development and execution. Successful and timely completion of the project will lead to larger project award. The Company has recognized the revenue on the basis of progress of work till 31st March 2018.

d. Rights, Preferences and Restrictions attached to Shares

The Company has one class of equity shares, having a par value of Rs. 10/- each. Each shareholder is eligible for dividend and one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding, after distribution of all preferential amounts.

e. No Bonus Shares have been issued to the shareholders during the last five years.

As per the records of the Company, including its register of shareholders, members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares. The holding of Rolta Shares and Stocks Pvt. Ltd. also consists of shares of the Company received on loan from Rolta Private Limited.

g. Employee Stock Option Plan (ESOP)

The Company, from time to time, provides share based payments to its employees. These payments are provided in the form of stock options that can be exercised once the employee has completed specified service term with the Company. The options are accounted for as ''equity settled share based payment'' transactions. Refer the table below for disclosure as per requirement of Ind AS 102 — Share based payments.

The underlying expected volatility was determined by reference to historical data, adjusted for unusual share price movements.

For ESOPs outstanding as at 31 March 2018, exercise price is Rs.10 and weighted average life of these options ranges from 6 to 56 months.

All share based employee remuneration would be settled in equity. The only vesting condition is the continuation of service. The group has no legal or constructive obligation to repurchase or settle the options.

In total, employee remuneration expense of Rs.1.76 Cr. (2017: Rs.0.95 Cr.) has been included in the Statement of Profit and Loss, which gave rise to additional paid-in capital. No liabilities were recognized due to share-based payment transactions

2. Employee benefits (Note —24 of Standalone Financial Statement)

A. Defined Contribution Plan

The Company participates in defined contribution plan on behalf of relevant personnel. Expenses recognized in relation to the plan represent the value of contributions payable during the period by the Company at rates specified by the rules of the plan.

Provident fund

In accordance with Indian law, eligible employees of The Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of employees salary).

The contributions, as specified under the law, are made to the respective Regional Provident Fund Commissioner and the Central Provident Fund under the State Pension scheme.

The total cost charged to Statement of Profit and Loss during the year ended March 31, 2018, is Rs.2.54 crores (Previous year Rs.3.56 crores)

B. Defined benefit plans Retiring gratuity (Unfunded)

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. Group account for the liability for gratuity benefits payable in the future based on an actuarial valuation. The Group is exposed to actuarial risk with respect to this plan.

3. Exceptional items (Note —27 of Standalone Financial Statement)

Exceptional items comprise of the following:

(i) Exceptional item — Rs.272.00 Cr. (previous year — Nil) represents the liability on account of Bond guaranteed by the Company as estimated by the management.

(ii) Provision cum write off of debts — Rs.Nil (previous year — Rs.536.84 Cr) pursuant to a detailed review of Trade Receivables in the course of implementation of IND AS.

The Finance Act, 2017 has inserted sub-section 2C to section 115JB of the Income Tax Act, 1961, relating to Minimum Alternate Tax (MAT), prescribing the treatment of the transitional adjustments with respect to first time adoption of Ind AS while calculating book profits u/s 115JB. The Company has considered the said provisions for calculating the tax liability under MAT.

4. Corporate Social Responsibility Activities (Note — 30 of Standalone Financial Statement)

a. Gross Amount required to be spent by the company during the year Rs.9.74 Cr.

Notes:

a) Related party relationship is as identified by the group on the basis of information available.

b) No amount has been written off or written back during the year in respect of debts due from or to related parties.

c) The Company has entered into transactions with certain parties as listed above during the year under consideration. Full disclosures have been made and the board considers such transactions to be in the normal course of business and at rates agreed upon between the parties.

d) All loans to subsidiaries are given for meeting their working capital requirements.

e) Some of the Key Management Personnel are also covered under the Company''s Gratuity Plan along with the other employees of the Company which is not included in the above disclosure.

5. There are no amounts due and outstanding, to be credited to Investor Education and Protection Fund. (Note — 3 7 of Standalone Financial Statement)

6. Segment information has been presented in the Consolidated Financial Statements. (Note — 38 of Standalone Financial Statement)

7. Previous year''s figures have been regrouped / rearranged wherever necessary to conform to the classification adopted for the current year.

Source : Dion Global Solutions Limited
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