Mar 31, 2015
1 CONTINGENT LIABILITIES
As at As at
31-Mar-15 31-Mar-13
Rs. Rs.
1.1 Guarantees given on behalf Nil NIL
of other companies
1.2 Claims against the company
not acknowledged as debt in
respect of certain tax matters
which are subjudice
a) Income Tax ( net of deposit) 59,220,145 59,220,145
b) Sales Tax / VAT 0 648,228
c) Service Tax 3,552,977 3,552,977
25 OTHER FINANCIAL INFORMATION
31.03.2015 31.03.2014
Rs. Rs.
2.1 Outstanding Bank Guarantees 0 1,480,298
2.2 Reimbursement of travel expenses to Directors 0 0
2.3 Sitting fees paid / payable to Directors 0 50,000
3 GOING CONCERN
Company has accumulated losses and its net worth has been fully eroded,
the company has incurred a net loss during the current and previous
year(s) and, the company's current liabilities exceeded its current
assets as at the balance sheet date. Company is not pursuing it's main
object of software development and is generating only income from
letting out premises owned by it, also the subsidiaries also has
stopped their operations. The above factors indicate the existence of a
material uncertainty that may cast significant doubt about the
company's ability to continue as a going concern.
4 DISCONTINUING OPERATIONS
Though there exists material uncertainty that may cast significant
doubt about the Company's ability to continue as a going concern, items
falling under the fixed asset category, i.e., building and attached
furniture and fixtures, which is used for letting out and the company
is deriving the rental income, Company is not accounting the Fixed
assets, other than building, at Net realisable value as required by
Accounting Standard 24, Discontinuing Operations and disclosure of
other matters is not made.
5 BASIS FOR PREPARATION
Financial statements have been prepared under the historical cost
convention and comply with accounting standards in all material
respects.
6 IMPAIRMENT OF ASSETS
a) Impairment of Investment
Both these companies and their subsidiaries have stopped all their
activities CSWL Inc has started liquidation proceedings
b) Impairment of Fixed Assets
As per estimation of management no impairment of Fixed Assets was
considered during the year 2014-15, since impairment losses on Fixed
Assets were provided and recognized in the previous years. However,
depreciation rates have been changed to amortise the depreciable value
over the useful life as set out in Schedule II of Companies Act, 2013,
equally, as the holding company is expected to use the same for letting
out, which will be in tune with Schedule II of Companies Act 2013.
Depreciation is charged on building based on the estimated remaining
life period of 25 years from the date of valuation on 17-01-2013 by the
approved valuer. Useful life of various assets is as given below
estimating a residual value of 1% on original cost at the end of useful
life.
item Useful life
Furniture & Fitiings 10 years
Office Equipment 5 Years
Total additional depreciation charged to the profit and loss Account is
Rs. 5,864,486/-.
7 TRADE RECEIVABLES & PAYABLES
Since the company has fully stopped its principle business being
Software Development and its sales and service and company have no
trade receivables during the year. Trade payables of Rs.
402,285,907/-represents net payables to its wholly owned overseas
subsidiary CSWL Inc.
Payables to Aspire Communications P Ltd and Aspire Peripherals P Ltd,
wholly owned subsidiary of the company amounting to Rs. 25,345,879/-
has been written back to Profit and loss account as Exceptional item as
these companies have stopped all it activities.
During the previous year 2013-14 the company reassessed its Trade
receivables and payables accumulated over the years and restated them
on a realistic basis. On the basis of above, net write off of bad
Debts, other receivables, old Deposits and payables were written off
for Rs. 26,910,239/- against the existing provision. Excess Provision
of Rs. 22,705,294/- was written back to profit and Loss Account.
8 RENT RECEIVABLE AND PROVISION
Rent receivable is amounting to Rs. 55,695,442/- (PY 49,707,130/- /-)
against which a provision of Rs. 41,043,738/- being receivables
outstanding for more than 270 days has been made.
9 TRANSFER PRICING
The study of international transactions entered into by the Company
with its overseas associates regarding the extent of compliance to the
transfer pricing regulations of the Income Tax Act, 1961 is yet to be
completed and the impact, if any, arising out of such study has not
been recognized in these accounts pending completion of the study.
10 QUANTITATIVE DETAILS
Not applicable since the Company is engaged the business of letting out
of Business premises; quantitative details etc., as required under the
Companies Act, 1956 are not furnished
11 VALUE OF IMPORTS ON CIF BASIS
Capital Goods Nil Nil
12 FOREIGN CURRENCY TRANSACTION
Foreign currency transactions including expenses incurred on Trading /
Non Trading Overseas offices and revenue accounts of onsite offices are
accounted at the exchange rates ruling on the date of transaction.
At the year end all monetary assets and liabilities denominated in
foreign currency other than investments are restated at the closing
exchange rates. Exchange differences arising out of actual payments /
realisations and from the year end restatement referred to above are
reckoned in the profit and loss account.
13 SEGMENT REPORTING
13.1 The company has stopped entirely its principal activity of
providing software development and its sales and services and hence
current year there is no segment wise reporting, Previously the
Company's operations predominantly related to providing development of
software to customers globally operating in various industry segments.
Accordingly, software product and development revenues along industry
classes comprise the primary basis of segmental information set out in
these financial statements. The accounting policies adopted for segment
reporting are in line with the accounting policies of the Company.
Revenue and expenses have been identified to segments on the basis of
the above primary segment information viz industry segments. Revenue
and expenses, which relate to the enterprise as a whole and are not
allocable to the segments on a reasonable basis, have been included
under unallocable corporate income/ expenses.
The Industry segments of the Company consist of: Technology Solutions
(TS), Enterprise Solutions (ES) and Infrastructure Management Services
(IMS). However since the sale of its OPD division company is having
Enterprise solution only.
14 DISCLOSURE UNDER AS 15 REVISED ON EMPLOYEE BENEFITS
The Company has only one employee for whom PF is being provided as per
rules. Gratuity of Rs.117,740/- is provided on the basis of Actuarial
Valuation. Based on company's policy no provision is being made for
leave encashment.
15 RELATED PARTY DISCLOSURE
15.1 Names of related parties and description of relationship
a) List of related parties
where control Exists
Companies Having Substantial Interest Kemoil Limited, Hong Kong
Subsidiaries California Software
Laboratories Inc., USA
(CSWL) Aspire
Communications Private
Limited, Mysore
Subsidiary of California Software Healthnet International
Inc., USA
Laboratories Inc. Aspiresoft Corporation,
USA
Subsidiary of Aspire
Communications Private Limited Aspire Peripherals P Ltd,
Mysore
Subsidiary of Healthnet
International Inc International Innovations
Inc., USA
b) Key management personnel Mr.Bhavesh Rameshlal
Chauhan
c) Other Group Companies
Fellow Subsidiaries of Kemoil Limited Chemoil International Pte.
Ltd., Singapore
Chemoil Energy Limited
Singapore
Chemoil Europe B.V., The
Netherlands
Subsidiaries of the abovementioned
fellow subsidiaries Chemoil Advanced Management
Services Pvt. Ltd., India
Chemoli Information Services
Pvt Ltd
Inatech InfoSolutions
Private Limited, Bangalore
Inatech Solutions Ltd, UK
Inatech Solutions Egypt, SAE
Inatech ME
Inatech Solutions Europe Ltd
Glencore India Private
Limited
16 As at March 31, 2015 there is no interest payable to Micro and Small
Enterprises as defined under the Micro Small and Medium Enterprises
Development Act, 2006. This information and that disclosed under
schedule 11 have been determined to the extent such parties have been
identified on the basis of information available with the Company
17 Except in respect of the following there are no statutory dues of
Customs Duty, Excise Duty, Cess, Wealth Tax and Income Tax, which have
not been deposited on account of a dispute
S. Name of the Statute Nature of the dues
No.
1. Income Tax Act, 1961 Income Tax ( A.yr 1997-98)
2. Income Tax Act, 1961 Income Tax ( A.yr 2000-01)
3. Income Tax Act, 1961 Income Tax ( A.yr 2001-02)
4. Income Tax Act, 1961 Income Tax ( A.yr 2002-03)
5. Income Tax Act, 1961 Income Tax ( A.yr 2003-04)
6. Income Tax Act, 1961 Income Tax ( A.yr 2004-05)
7. Income Tax Act, 1961 Income Tax ( A.yr 2005-06)
8. Income Tax Act, 1961 Income Tax ( A.yr 2006-07)
9. Income Tax Act, 1961 Income Tax & TDS ( A.yr 2007-08)
10. Income Tax Act, 1961 Income Tax ( A.yr 2008-09)
11. Income Tax Act, 1961 Income Tax ( A.yr 2011-12)
12 Income Tax Act, 1961 Income Tax ( A.yr 2009-10)
13 Income Tax Act, 1961 Income tax 2010-11
Name of the Statute Amount Rs. Forum where dispute is pending
Income Tax Act, 1961 11,27,394 Assessing Officer
Income Tax Act, 1961 22,84,617 Assessing Officer
Income Tax Act, 1961 15,24,090 Madras High Court
Income Tax Act, 1961 33,56,300 Madras High Court
Income Tax Act, 1961 12,42,460 Madras High Court
Income Tax Act, 1961 56,76,083 Commissioner Appeals
Income Tax Act, 1961 10,10,258 Commissioner Appeals
Income Tax Act, 1961 22,10,000 Commissioner Appeals
Income Tax Act, 1961 12,704,349 Tribunal
Income Tax Act, 1961 4,966,000
Income Tax Act, 1961 48,187
Income Tax Act, 1961 7,386,310 Commissioner of IT
Income Tax Act, 1961 15,684,097 Transfer Pricing
Total IT demand 592,20,145
Service Tax 35,52,977 * Joint Commissionerl
Commissioner of ST
* Based on order dated 27/06/2014 of Joint commissioner of Service tax,
Chennai . Company has filed appeal against this order.
18. REGROUPING AND REARRANGING OF FIGURES
The previous year figures have been regrouped, rearranged/ amended
wherever necessary to conform to the current year's classification.
Mar 31, 2014
1. SHARE CAPITAL
A. AUTHORISED CAPITAL
(The paid up share capital includes shares worth Rs. 7,24,920 which
were issued by the company in October 1994 for consideration other than
cash)
2. TANGIBLE ASSETS
Note: 1. Building Depreciation is charged assuming a remaining life
period of 25 years from the date of valuation on 17/01/2013.
Additional depreciation charged due to this change during the year is
Rs. 137,38,189/-.
2. Depreciation in 2012 -13 on land & building Includes Impairement of
Rs. 21,218,585/- and is shown as an exceptional item.
3. Contingent Liabilities
(in Rs.)
As at 31-Mar-14 As at 31-Mar-13
California Software company Limited
a. Guarantees given on behalf of
other companies Nil NIl
b. Claims against the company not
acknowledged as debt in respect
of certain tax matters which
are subjudice
a) Income Tax 59,220,145 59,859,792
b) Sales Tax/VAT 648,228 648,228
c) Service Tax 3,552,977 852,310
4. Taking into consideration the post sale scenario of its OPD division
and considering the past performance of the subsidiaries company in the
year 2011-12 decided to reassess the value of its investment in
subsidiaries. Based on this company decided to strike off East Point
Solutions Ltd accompany yet to commence business and also to withdraw
from the Joint Venture Agreement with Calspence, Srilanka. It was also
decided to write off excess carrying value over the book value of its
Indian subsidiaries. The year under report also the management has
decided to Impair the investment in its overseas subsidiary CSWL Inc
(The company has stopped all its operations) by writing off excess
value over its book value and to impair the Investment in Preference
shares of Inatech Info solutions P Ltd by writing off excess carrying
value over the face value. Total Investment write off included in
exceptional items.
* The above amount includes Rs. 6,819,000 paid to former shareholders
Aspire Communications Ltd. This payment is in excess of the Share
Purchase Agreement (SPA) entered with outside shareholders.
5. IMPAIRMENT OF FIXED ASSETS
Land and and Building was written down by Rs. 21,218,585/- in 2012-13
based on the realizable value of the land and building (As valued by
Valuer on 17.01.2013). Based on the above valuation the management has
impaired the value of Plant & Machinery and Electrical Fittings which
are integral part of the above property and are having no other
realizable value separately.
Further as part of the settlement with one of the tenants company has
acquired Furniture & fixtures for Rs. 12,98,000/-. This has also been
impaired fully.
Total impairment cost of Rs. 445,39,816/- is over and above the regular
depreciation charged during the year and hence taken to Statement of
Profit and Loss as exceptional item.
6. During the year the parent company reassessed its Trade receivables
and payables accumulated over the years and restated them on a
realistic basis. On the basis of above, net write off of bad Debts,
other receivables, old Deposits and payables were written off for Rs.
269,10,239/- against the existing provision. Excess Provision of Rs.
227,05,294/- was written back to profit and Loss Account.
7. Rent receivable is amounting to Rs. 497, 07,130/- (PY 561, 20,434/-)
against which a provision of Rs. 22,117,617/- has been made.
8. The management of CSWL Inc is implementing complete liquidation of
the company with effect from July 1, 2012. In accordance with this
proposed plan company has disposed of it fixed assets and receivables
and payables dues from and dues to related parties only.
9. Aspire Communications P ltd and Aspire Peripherals P ltd, have also
stopped their entire operations.
10. INTANGIBLE ASSET
There are no Intangible assets belonging to the group.
11. TRANSFER PRICING
The study of international transactions entered into by the Company
with its overseas associates regarding the extent of compliance to the
transfer pricing regulations of the Income Tax Act, 1961 is yet to be
completed and the impact, if any, arising out of such study has not
been recognised in these accounts pending completion of the study.
12. DEFERRED TAXATION
In view of the considerable accumulated losses in the group, no company
has considered deferred tax.
13. ACQUISITIONS & DISINVESTMENT
California Software Company Ltd
a) During the year, 21-02-2014 the company had disinvested its entire
holding in wholly owned subsidiary Inatech Info Solutions P Ltd by
transferring the shares to Chemoil International pte ltd, Singapore a
company from parent group. Share purchase agreement between two
companies dated 23/12/2013 was approved by the Board of Directors in
the Board Meeting held on same date. By the above SPA, the purchase
consideration was fixed at Rs. 0.48/- per each of 1698985 shares of Rs.
1/- held by the company in Inatech Info Solutions P Ltd. The valuation
of shares was done by an outside valuer. Based on above total purchase
consideration received was Rs. 82,28,458.37.
As on the date of transfer Company''s books of accounts had a net
payable amount of Rs. 58,790,172/- to Inatech Info Solutions P Ltd.
This amount was written back and is considered as a part of Purchase
considearation resulting in a total net profit of Rs. 50,019,646/- on
sale of Investment and taken to profit and loss Account as an
Exceptional item.
The carrying value of Investment in Inatech Info Solutions P Ltd was
impaired by the management by Rs. 406,886,886/- in the preceding two
years.
14. In 2012-13, as a part of group strategy Company has transferred its
remaining Indian operations including entire employees and contracts to
its wholly owned subsidiary Inatech Infosolutions Private Limited. As
part of this following Fixed Assets were transferred to Inatech
Computers & Licence fee at Written Down value Rs. 635,634/- Product
Solutions as per valuation Rs. 375,000/-.
Transfer of Business Assets has resulted in a profit of Rs. 3,422,968/-
and was taken to the profit and loss account as an extraordinary item
of the year 2012-13.
Over the years the company has made a provision for gratuity Rs.
11,030,102/-. As the entire employees were transferred this liability
was taken to profit and loss account as extraordinary income in
2012-13.
15. UNSECURED LOANS FROM ASSOCIATE COMPANIES
Interest is being provided only on first three loans as per the terms
of agreement between the companies. However no interest is being
provided on Loans (4) and (5) from overseas companies as there is no
loan agreement between these companies.
16. SEGMENT REPORTING
The Company''s operations predominantly relate to providing development
of software to customers globally operating in various industry
segments. Accordingly, software product and development revenues along
industry classes comprise the primary basis of segmental information
set out in these financial statements. The accounting policies adopted
for segment reporting are in line with the accounting policies of the
Company. Revenue and expenses have been identified to segments on the
basis of the above primary segment information viz industry segments.
Revenue and expenses, which relate to the enterprise as a whole and are
not allocable to the segments on a reasonable basis, have been included
under unallocable corporate income/expenses.
The Industry segments of the Company consist of: Technology Solutions
(TS), Enterprise Solutions (ES), Infrastructure Management Services
(IMS), and strategic Investments (SI). As a result of the sale of OPD
division of the company only single segment (ES) had transactions
during the year.
The company believes that it is currently not practicable to provide
segment disclosures to total assets and liabilities since a meaningful
segregation of available data is onerous.
17. Disclosure under AS 15 revised on Employee benefits
A) California Software co Ltd
The company has only one employee as at the year end for whom PF is
being paid regularly.
18. RELATED PARTY DISCLOSURE
A) Names of related parties and description of relationship
a) List of related parties where control Exists
1. California Software company limited
Companies Having Substantial Kemoil Limited, Hong Kong
Interest Chemoil Energy Limited, Hong Kong
b) Key management personnel Mr. Bhavesh Rameshlal Chauhan
c) List of related parties
where no control Exists
Fellow Subsidiaries of Chemoil corporation USA*
Kemoil Limited
Chemoil International Pte. Ltd.,
Singapore*
Chemoil Energy Limited - Singapore*
Chemoil Europe B.V., The Netherlands*
GPS Chemoil LLC (FZC) U.A.E.
Subsidiaries of the above Chemoil Advanced Management
mentioned fellow subsidiaries Services Pvt. Ltd., India*
Inatech InfoSolutions Limited
Inatech Solutions UK
Inatech ME
Inatech Solutions Europe Ltd
19. Regrouping and rearranging of figures
The previous year figures have been regrouped, rearranged/amended
wherever necessary to conform to the current year''s classification.
Note: Cash outflow on account of purchase of fixed assets includes
effect of foreign exchange fluctuations of fixed assets of overseas
subsidiaries from their date of acquisition and year end rate.
Mar 31, 2013
1. Taking into consideration the post sale scenario of its OPD
division and considering the past performance of the subsidiaries
company in the year 2011-12 decided to reassess the value of its
investment in subsidiar- ies. Based on this company decided to strike
off East Point Solutions Ltd accompany yet to commence business and
also to withdraw from the Joint Venture Agreement with Calspence,
Srilanka. It was also decided to write off excess carrying value over
the book value of its Indian subsidiaries. The year under report also
the management has decided to Impair the investment in its overseas
subsidiary CSWL Inc ( The company has stopped all its operations) by
writing off excess value over its book value and to impair the
Investment in Preference shares of Inatech Info solutions P Ltd by
writing off excess carrying value over the face value. Total Investment
write off included in exceptional items is as given below:
2 IMPAIRMENT OF FIXED ASSETS
a) Land and and Building was written down by $ 21,218,585/- (Previous
year $ 34,671,062/-) based on the realizable value of the land and
building ( As valued by Valuer)
b) Furniture & fittings write off : Current year NIL. Previous year $
85,029,837/- c) Product Solutions write: off Current year NIL. Previous
year $ 35,026,741/- The above write off is over and above the regular
depreciation charged during the year and hence taken to Statement of
Profit and Loss as exceptional item.
3 TRADE RECEIVABLES
Trade receivable ageing more than 270 days is fully provided for over
the years As on 31.03.2013 entire debts over 180 days stands provided
for and balance . Excess provision is netted against balance trade
receivables. Total provision as on date is $ 85,796,777. Included in
trade Receivables is amount due from subsidiaries & associates $
112,609,603/- .
4 Rent receivable is amounting to $ 56120434/- against which a
provision of $ 22,117,617/- has been made.
5 TRANSFER PRICING
The study of international transactions entered into by the Company
with its overseas associates regarding the extent of compliance to the
transfer pricing regulations of the Income Tax Act, 1961 is yet to be
completed and the impact, if any, arising out of such study has not
been recognized in these accounts pending completion of the study.
6 QUANTITATIVE DETAILS
As the Company is engaged in the development and export of computer
software, the production and sale of which cannot be expressed in any
generic unit, the quantitative details etc., as required under the
Companies Act, 1956 are not furnished.
7 SEGMENT REPORTING
7.1 The Company''s operations predominantly relate to providing
development of software to customers globally operating in various
industry segments. Accordingly, software product and development
revenues along industry classes comprise the primary basis of segmental
information set out in these financial statements. The accounting
policies adopted for segment reporting are in line with the accounting
policies of the Company. Revenue and expenses have been identified to
segments on the basis of the above primary segment information viz
industry segments. Revenue and expenses, which relate to the enterprise
as a whole and are not allocable to the segments on a reasonable basis,
have been included under unallocable corporate income/ expenses.
The Industry segments of the Company consist of: Technology Solutions
(TS), Enterprise Solutions (ES) and Infrastructure Management Services
(IMS)
7.2 The above information regarding related parties have been
determined to the extent such parties have been identified on the basis
of information available with the Company.
* Represents related parties with whom the company had transactions
during the year
8 As at March 31, 2013 there is no interest payable to Micro and Small
Enterprises as defined under the Micro Small and Medium Enterprises
Development Act, 2006. This information and that disclosed under
schedule 11 have been determined to the extent such par ties have been
identified on the basis of information available with the Company
9 In the absence of details of specific invoice particulars in the
remittance amounts realized from debtors are adjusted on First in First
out Basis.
10 Settlement of dispute arising out of sale of Outsourced Product
Development (OPD) Division
On April 11, 2011, company as a part of Group Strategy, entered into a
Master Agreement with ALTEN EUROPE, SARL, France to sell its entire OPD
business. There were disputes at the group level regarding earn outs.
These disputes were settled among all the companies involved by way of
an agreement entered on 10-06-2013. As a result of this agreement
certain paybles due to Calsoft India labs P Ltd was settled. The income
arising out of settlement of these payables $ 19,232,922/-was taken to
the profit and loss account as an extraordinary item of the year under
report.
11 As a part of group strategy Company has transferred its remaining
Indian operations including entire employees and contracts to its
wholly owned subsidiary Inatech Infosolutions Private Limited. As part
of this following Fixed Assets were transferred to Inatech Computers &
Licence fee at Written Down value $ 635,634/- Product Solutions as per
valuation $ 375,000/- Transfer of Business Assets has resulted in a
profit of $ 3,422,968/- and was taken to the profit and loss account as
an extraordinary item of the year under report. Over the years the
company has made a provision for gratuity $ 11,030,102/-. As the entire
employees were transferred this liability was taken to profit and loss
account as extraordinary income.
12 The company has been unable to reconcile its schedule for expenses
payables with the general ledger
13 Regrouping and rearranging of figures
The previous year figures have been regrouped, rearranged / amended
wherever necessary to conform to the current year''s classification.
Mar 31, 2012
1. Contingent Liabilities : Nil 20,50,90,000
1.1 Guarantees given on behalf of other
companies
1.2 Claims against the company not
acknowledged as debt in respect of
certain tax matters which are subjudice
a) Income Tax (net of deposit) 5,24,73,482 5,04,30,003
b) Sales Tax / VAT 6,48,228 6,48,228
c) Service Tax 8,52,310 8,52,310
2. Taking into consideration the post sale scenario of its OPD
division and considering the past perfor- mance of the subsidiaries
company decided to reassess the value of its investment in
subsidiaries. Based on this company decided to strike off East Point
Solutions Ltd accompany yet to commence business and also to withdraw
from the Joint Venture Agreement with Calspence, Srilanka. It was also
decided to write off excess carrying value over the book value of its
Indian subsidiaries. Total Invest- ment write off included in
exceptional items is as given below:
* The above amount includes Rs. 68,19,000 paid to former shareholders
Aspire Communications Ltd.
This payment is in excess of the Share Purchase Agreement (SPA) entered
with outside shareholders.
3. Impairment of Fixed Assets:
a) Land and and Building was written down by Rs.34,671,062/- based on the
realizable value of the land and building ( As valued by Valuer)
b) Furniture & fittings except those utilized for the Company's
business was written off fully. Amount written off is Rs. 85,029,837/-
c) Entire Product Solutions was written off fully as the same has not
generated any income during the current year. Amount written off is Rs.
35,026,741/- The above write off is over and above the regular
depreciation charged during the year and hence taken to Statement of
Profit and Loss as exceptional item.
4. Trade Receivables
Trade receivable ageing more than 270 days is fully provided for.
Included in trade Receivables is amount due from subsidiaries
Rs.130,396,334/- .Out of which Rs. 112,443,410/- is due from
InatechInfosolu tions Ltd and its overseas subsidiaries. Provision
includes Rs. 49,107,447/- made against these receiv able from Inatech.
5. Quantitative Details
As the Company is engaged in the development and export of computer
software, the production and sale of which cannot be expressed in any
generic unit, the quantitative details etc., as required under the
Companies Act, 1956 are not furnished
6. Segment Reporting
6.1 The Company's operations predominantly relate to providing
development of software to customers globally operating in various
industry segments. Accordingly, software product and development
revenues along industry classes comprise the primary basis of segmental
information set out in these financial statements. The accounting
policies adopted for segment reporting are in line with the accounting
policies of the Company. Revenue and expenses have been identified to
segments on the basis of the above primary segment information viz
industry segments. Revenue and expenses, which relate to the enterprise
as a whole and are not allocable to the segments on a reasonable basis,
have been included under unallocable corporate income/ expenses.
The Industry segments of the Company consist of: Technology Solutions
(TS), Enterprise Solutions (ES) and Infrastructure Management Services
(IMS)
7. Related Party Disclosure
7.1 Names of related parties and description of relationship
a) List of related parties where control Exists
Companies Having Substantial Kemoil Limited, Hong Kong
Interest Chemoil Energy Limited, Hong Kong
Subsidiaries California Software Laboratories Inc., USA (CSWL) *
Aspire Communications Private Limited, Mysore *
Inatech InfoSolutions Private Limited, Bangalore *
Subsidiary of California Software Healthnet International Inc., USA
Laboratories Inc. Waldron Limited, Japan Informed Decision
corporation, USA
Aspiresoft Corporation, USA
Subsidiary of Inatech InfoSolutions Private Limited Inatech Solutions
Ltd, UK *
Inatech Solutions Egypt, SAE Subsidiary of Waldron Limited Codex Co
Ltd, Japan
Subsidiary of Aspire Communications Private Limited Aspire Peripherals
P Ltd, Mysore
Subsidiary of Healthnet International Inc International Innovations
Inc., USA
b) Key management personnel Mr.Sam Santhosh ( Part of the period)
Frederik Ivor Bendle
c) List of related parties where no control Exists Chemoil corporation
USA *
Fellow Subsidiaries of Kemoil Limited Chemoil International Pte. Ltd.,
Singapore *
Chemoil Energy Limited - Singapore*
Chemoil Europe B.V., The Netherlands *
Chemoil Terminals Corporation California, USA
Royal Melbourne Insurance Company Limited British
Virgin Islands
Chemoil Logistics Inc. British Virgin Islands
Baltic Fuel Inc. British Virgin Islands
Belgrave Investors Corp. British Virgin Islands
Cypress Maritime Ltd. British Virgin Islands
Dryden Agency Inc. British Virgin Islands
Spy Glass Maritime Ltd. British Virgin Islands
Soham Corporation. British Virgin Islands
GPS Chemoil LLC (FZC) U.A.E
Galaxy Energy Group Ltd. British Virgin Islands
Subsidiaries of the abovementioned fellow subsidiaries Chemoil Advanced
Management Services Pvt. Ltd.,
India *
Chemoil Latin America, Inc. Panama
Chemoil Middle East DMCC
IPC (USA) Inc California, USA*
Andorra Services Inc. British Virgin Islands
Chemoil North America Corporation Connecticut, USA
Chemoil Pacific Pte Ltd Singapore
Ocean Connect.com Inc Delaware, USA
St.Andrews Insurance Brokers, Inc California USA
Berkshire Energy Ltd. British Virgin Islands
Chemoil Energy Philippines Inc. Philippines
Chemoil Storage Limited Marshall Islands
Chemoil Belgium N.V. Belgium
Chemoil Office Support B.V. The Netherlands
Burando Holding B.V. The Netherlands
Anand Sea Shipping Limited Marshall Islands
Faith IV Pte Ltd Singapore
Olympic Shipping Pte Ltd Singapore
Chemoil Navigation Limited - Marshall Islands
Pacifico Bunkering Services SA Panama
Cypress Bunkering Services, SA Panama
Spy Glass Bunkering Services, SA
Bonifay International Corp Panama
7.2 The above information regarding related parties have been
determined to the extent such parties have been identified on the basis
of information available with the Company.
* Represents related parties with whom the company had transactions
during the year
8. As at March 31, 2012 there is no interest payable to Micro and
Small Enterprises as defined under the Micro Small and Medium
Enterprises Development Act, 2006. This information and that disclosed
under schedule 11 have been determined to the extent such parties have
been identified on the basis of information available with the Company
9. In the absence of details of specific invoice particulars in the
remittance amounts realized from debtors are adjusted on First in First
out Basis.
10. Except in respect of the following there are no statutory dues of
Customs Duty, Excise Duty, Cess, Wealth Tax and Income Tax, which have
not been deposited on account of a dispute
11. Sale of Outsourced Product Development (OPD) Division
On April 11, 2011, company as a part of Group Strategy, entered into a
Master Agreement with ALTEN EUROPE, SARL, France to sell its entire OPD
business. Total consideration for the Indian operations is US $ 3.5
million (Rs.15.8 crores) which has been received in April 2011 by
Calsoft. In order to facilitate this transfer Calsoft promoted a new
company named Calsoft Labs India private Limited. Entire OPD assets of
Calsoft amounting to Rs.5,36,74,642/- and all the employ- ees of this
segment has been transferred to the newly formed company against the
issue of its equity shares. Total investment in the new company as at
the previous year end was Rs. 5,48,53,561/- . As at the previous year end
Calsoft and its subsidiaries Aspire Communications Private Limited and
Aspire Peripherals Private Limited holds hundred percent of the share
in the new company. The consideration received was apportioned between
Calsoft and Aspire in the ratio 90:10. Consideration due to Aspire was
transferred to Aspire by a book entry. These investments were
transferred against the consideration mentioned above. Resultant
profit of Rs. 6,86,65,262/- is included in exceptional items in Statement
of Profit and Loss for the year. Further as per the Master Agreement
unfinished contracts outstanding at the date of transfer were to be
completed by Calsoft and other companies in the group and resultant
sales transferred to Calsoft Labs Ltd. Rs. 54,20,107/- was transferred to
Calsoft Labs during the year as per this agreement. Last of these
contracts ended June, 2011.
12. Professional fees includes Rs.19,95,552/- being Professional Charges
payable to Chemoil Enegy Ltd for conducting review audit of the company
in the year 2009-10.
13. Regrouping and rearranging of figures
The previous year figures have been regrouped, rearranged/amended
wherever necessary to conform to the current year's classification.
Mar 31, 2011
1.Contingent Liabilities :
March 31, March 31,
2011 2010
1.1 Guarantees given on behalf of
other companies 205,090,000 205,090,000
1.2 Claims against the company not
acknowledged as debt in respect of
certain income tax matters which
are subjudice
a) Income Tax 504,30,003 14,901,556
b) Sales Ta x / VAT 6,48,228 Nil
c) Service Tax 8,52,310 Nil
2.The Company's investments in subsidiaries are considered as long
term and strategic in nature. Accordingly, the excess of the carrying
value over the net book value of the investments is considered as
temporary diminution and hence no provision for the decline in value
has been considered in these accounts.
3.Intangible asset- Product solutions represent cost of Product
development and no additions during the year in respect of the
following products:
a.Test Automation Framework (TAF)
b.Virtual IO
c.Diameter
d.Networking File System (NSF) and
e.Bunkering operations Management systems (BOMS)
The future projection in respect of the above products has been
estimated by the technical department, although the existence of a
market for these products is yet to be developed. However the product
solutions are being amortized over a period of 5 years starting
Financial Year 2008-09.
4. Debtors include Rs.47,517,389 due from Inatech Solutions Limited UK,
and out of that Rs.44,854,616 has been provided for as doubtful debts.
And due from Inatech Solutions Egypt Rs. 2228378 has been provided for
as doubtful debts.
5. Rent receivable amounting to Rs 2,49,60,471 from Roxanne Research
Private Ltd has been shown under Rs.1,28,60,448 has been provided as
doubtful rent. The company has initiated legal proceedings against
Roxanne.
6. Transfer Pricing
The study of international transactions entered into by the Company
with its overseas associates regarding the extent of compliance to the
transfer pricing regulations of the Income Ta x Act, 1961 is yet to be
completed and the impact, if any, arising out of such study has not
been recognized in these accounts pending completion of the study.
7. Quantitative Details
As the Company is engaged in the development and export of computer
software, the production and sale of which cannot be expressed in any
generic unit, the quantitative details etc., as required under the
Companies Act, 1956 are not furnished
8. Segment Reporting
8.1 The CompanyÃs operations predominantly relate to providing
development of software to customers globally operating in various
industry segments. Accordingly, software product and development
revenues along industry classes comprise the primary basis of segmental
information set out in these financial statements. The accounting
policies adopted for segment reporting are in line with the accounting
policies of the Company. Revenue and expenses have been identified to
segments on the basis of the above primary segment information viz
industry segments. Revenue and expenses, which relate to the
enterprise as a whole and are not allocable to the segments on a
reasonable basis, have been included under unallocable corporate
income/ expenses.
The Industry segments of the Company consist of: Technology Solutions
(TS), Enterprise Solutions (ES) and Infrastructure Management Services
(IMS)
The company believes that it is currently not practicable to provide
segment disclosures to total assets and liabilities since a meaningful
segregation of available data is onerous.
9. Related Party Disclosure (In Rupees)
9.1 Names of related parties and description of Relationship
a) List of related parties where control Exists
Companies Having Substantial Kemoil Limited, Hong Kong
Interest Chemoil Energy Limited,Hong Kong
Subsidiaries California Software Laboratories
Inc., USA
(CSWL) *
EastPoint Solutions Ltd, Chennai
Team Front Line Ltd , Cochin *
Aspire Communications Private
Limited, Mysore *
Inatech InfoSolutions Private
Limited, Bangalore *
Calsoft Labs
Subsidiary of California Healthnet International
Software Laboratories Inc. Inc., USA
Waldron Limited, Japan
Informed Decision corporation,USA
Aspiresoft Corporation, USA
Subsidiary of Inatech Inatech Solutions Ltd, UK *
InfoSolutions
Private Limited Inatech Solutions Egypt, SAE
Subsidiary of Waldron Codex Co Ltd, Japan
Limited
Subsidiary of Aspire Aspire Peripherals P Ltd, Mysore
Communications Private
Limited
Subsidiary of Healthnet International Innovations Inc.,USA
International Inc
b)Key management personnel Mr.Sam Santhosh
Mr.Clyde Michael Bandy
c) List of related parties
where no control Exists
Fellow Subsidiaries of Kemoil Chemoil corporation USA *
Limited Chemoil International Pte. Ltd.,
Singapore *
Chemoil Energy Limited à Singapore*
Chemoil Europe B.V., The
Netherlands * Chemoil Terminals
Corporation California, USA
Royal Melbourne Insurance Company
Limited British Virgin Islands
Chemoil Logistics Inc. British
Virgin Islands
Baltic Fuel Inc. British Virgin
Islands Belgrave Investors Corp.
British Virgin Islands
Cypress Maritime Ltd. British
Virgin Islands
Dryden Agency Inc. British Virgin
Islands Spy Glass
Maritime Ltd. British Virgin
Islands
Soham Corporation. British Virgin
Islands GPS Chemoil LLC (FZC) U.A.E
Galaxy Energy Group Ltd. British
Virgin Islands
Subsidiaries of the Chemoil Advanced Management
Services
fellow subsidiaries Pvt. Ltd., India *
Chemoil Latin America,Inc.Panama *
Chemoil Middle East DMCC *
IPC (USA) Inc California, USA
Andorra Services Inc. British
Virgin Islands
Chemoil North America Corporation
Connecticut, USA
Chemoil Pacific Pte Ltd Singapore
Ocean Connect.com Inc Delaware, USA
St.Andrews Insurance Brokers, Inc
California USA
Berkshire Energy Ltd. British
Virgin Islands
Chemoil Energy Philippines Inc.
Philippines
Chemoil Storage Limited Marshall
Islands
Chemoil Belgium N.V. Belgium
Chemoil Office Support B.V. The
Netherlands
Burando Holding B.V. The
Netherlands
Anand Sea Shipping Limited
Marshall
Islands
Faith IV Pte Ltd Singapore
Olympic Shipping Pte Ltd Singapore
Chemoil Navigation Limited -
Marshall
Islands
Pacifico Bunkering Services SA
Panama
Cypress Bunkering Services, SA
Panama
Spy Glass Bunkering Services,SA
Bonifay International Corp Panama
9.2 The above information regarding related parties have been
determined to the extent such parties have been identified on the basis
of information Available with the Company.
* Represents related parties with whom the company had transactions
during the year.
10. Deferred taxation
As at the year end company has a deferred tax asset of Rs.58,476,000
(Previous year Company had a deferred tax liability of Rs 41,529,352).
The movement is mainly on account of transfer of major part of assets
to a different company and also due to the carry forward loss at the
end of the year.
11. As at March 31, 2011 there is no interest payable to Micro and
Small Enterprises as defined under the Micro Small and Medium
Enterprises Development Act, 2006. This information and that disclosed
under schedule 11 have been determined to the extent such parties have
been identified on the basis of information available with the Company
12. In the absence of details of specific invoice particulars in the
remittance amounts realized from debtors are adjusted on First in First
out Basis.
13. Expenses reimbursed to CSWL of Rs. 33,379,669 . are based on Debit
notes received from them.
14. Events Occurring after balance sheet date - Sale of Outsourced
Product Development (OPD) Division
On April 11, 2011, company as a part of Group Strategy , entered into a
Master Agreement with ALTEN EUROPE, SARL, France to sell its entire OPD
business. Total consideration for the Indian operations is US $ 3.5
million ( Rs. 15.8 crores) which has been received in April.
15 a. Further investment in Aspire Communications Private Limited
At the beginning of current year company had 57.63% of the equity share
capital of Aspire Communications Private Limited , Mysore (Aspire).
This was diluted to 51% when Aspire offered ESOPS to its employees for
Rs.23,00,000/- which was fully subscribed. As on 18-01-2011 California
Software Co Ltd ( Calsoft) and outside shareholders of Aspire entered
into a Share Purchase Agreement (SPA) as per which, Calsoft was to
acquire balance 49% in Aspire from the outside shareholders. Total
consideration is Rs.226,45,228/- payable various dates till 31-12-
2011. As at the year end Calsoft has paid Rs. 85,85,820/-, and balance
outstanding payable to outside shareholders of Aspire is Rs.
140,59,408/-. Though physical transfer of shares is yet to take place,
the date of SPA is reckoned as the date of acquisition.
16 b. Investment In Calsoft Labs India Private Limited
Calsoft promoted a new company named Calsoft Labs India private
Limited. Entire OPD assets of Calsoft amounting to Rs. 53674642/- and
all the employees of this segment has been transferred to the newly
formed company against the issue of its equity shares. Total investment
in the new company as at the year end was Rs. 548,53,561/- .
Incorporation and related expenses has been included in the investment
cost. As at the year end Calsoft and its subsidiaries Aspire
Communications Private Limited and Aspire Peripherals Private Limited
holds hundred percent of the share in the new company.
17. Investment in Joint Venture Calspence Technologies Private Limited
Company has made 50% investment in a Joint Venture with AITKEN SPENCE
PLC, Srilanka to promote a company named Calspence Technologies Private
Limited in Srilanka. As initial investment company has paid an amount
of Rs.794062/- against issue of 188753 equity shares @ of Srilankan Rs.
10/- each.
Shareholder Information
1.Date and venue of the Annual On Friday, 23rd September 2011
General Meeting at 10-00 a.m.
Robert V Chandran Tower,
Eighth Floor, # 149, Velachery
Tambaram Main Road,Pallikaranai,
Chennai-600100
2.Dates of Book Closure 20th September, 2011 to 23rd
September 2011 (both days
inclusive)
a.Financial year 2010-11
b.Dividend payment date No dividend for the financial
year 2010-11
3.Listing on Stock Exchanges 1.National Stock Exchange of
and Stock Code India Ltd.,
Exchange Plaza, Bandra Kurla
Complex, Bandra(East),
Mumbai 400 051
Stock Code- CALSOFT
2.Bombay Stock Exchange Limited,
Phiroze Jeejeebhoy Towers, Dalal
Street, Mumbai 400 001.
Stock ID- CALIFSOF
Scrip CODE- 532386
4.Listing Fees Paid for both the above stock
exchanges for 2010-11
and 2011-12
5.Registered Office Robert V Chandran Tower,
Seventh Floor, # 149,
Velachery Tambaram Main Road,
Pallikaranai, Chennai 600100.
India. Tel: 91 44
4282 9000 - 5
Fax: 91 44 4282 9012
6.Registrars and Share Integrated Enterprises (India)
Transfer Agent Limited,
(All Communication on share (Unit: California Software Co
transfers in physical form, Co Ltd.),
share certificates, dividends, Kences Towers, 2nd Floor
change of address, etc., 1, Ramakrishna Street, North
may be addressed to them.) Usman Road,T. Nagar, Chennai
600 017. India. email :
[email protected] Tel:
91 44 2814 0801, 2814 0802 /03
7.Share Transfer System:
The Company's shares are in compulsory Dematerialialization Segment for
purposes of trading. Share Transfers in Physical form are registered
within a period of 15 days from the date of receipt by our Share
Transfer Agents - Integrated Enterprises (India) Ltd, provided the
documents are complete and the shares under transfer are not in
dispute. The share certificates duly endorsed are being immediately
despatched after effecting transfer. The total number of equity shares
in physical form transferred during the financial year 2010-11 was
1500.
9. Investor services à complaints received during the year
The Company /Share transfer agents received no complaints from the
investors during the year and all these were resolved by the year end.
The company /registrars received nineteen service /information requests
during the year and all these were attended during the year .The
opening and closing balance of complaints and /or information /service
requests was nil
18. Financial calendar (tentative and subject to change)
Financial Reporting for the first Second week of August 14, 2011
quarter ending June 30, 2011
Financial Reporting for the second Second week of November 14, 2011
quarter ending September 30, 2011
Financial Reporting for the third Second week of February 14, 2012
quarter ending December 31, 2011
Financial Reporting for the year Last week of May 31, 2012
ending March 31, 2012
19. Dematerialization of shares and liquidity
The CompanyÃs shares have been admitted as an eligible security in the
depository system of National Securities Depository Ltd. [NSDL] and
Central Depository Services (India) Limited [CDSL], bearing an
International Securities Identification Number (ISIN) INE526B01014
Trading on exchanges in the companyÃs shares is permitted only in
dematerialised form compulsorily as per the circular issued by
Securities and Exchange Board of India (SEBI).
As on March 31, 2011, 1,22,30,171 equity shares representing 98.91% of
the CompanyÃs equity shares were held in dematerialised form.
Reconciliation of Share Capital Audit
A qualified Company Secretary carries out reconciliation of share
capital audit every quarter to reconcile the total admitted capital
with National Securities Depositories Limited (NSDL) and Central
Depository Services (India) Limited and the total issued and listed
capital. The audit confirms that the total issued/ paid up capital is
in agreement with the agreegate total number of shares in physical form
and the total number of dematerialized shares held with NSDL and CDSL.
20. Outstanding GDRs/ADRs/Warrants or any Convertible instruments,
conversion date and likely impact on equity Nil
21. Updation of E-mail IDs
The Ministry of Corporate Affairs has taken a 'Green Initiative' in the
Corporate Governance by allowing paperless compliances by the
Companies. As a result, Companies are allowed to send all communication
/ documents in electronic mode to its members. In order to support the
green initiative and to reduce the usage of paper, your Company
requests all shareholders to update their e-mail ids with their
respective depository participant, where they hold shares in electronic
form and to the Company's Registrar and Share Transfer agent, if the
shares are held in physical form.
Frequently Asked Questions
Where and in which year was Calsoft incorporated?
Calsoft was incorporated at Chennai (Madras), in the State of Tamil
Nadu, on February 6, 1992..
When did Calsoft commence its business operations?
Calsoft commenced its business operations on October 18, 1992.
When did Calsoft have its Initial Public Offer and what was the issue
price?
Calsoft made its Initial Public Offer in February 1996. The issue price
was Rs 30 per share.
Which Stock Exchanges are Calsoft shares are listed?
The shares of Calsoft are listed on the Stock Exchanges at Mumbai (BSE)
and the National Stock Exchange (NSE).
What is the current equity capital of Calsoft?
Calsoft 's equity capital as on March 31, 2011 was Rs.12,36,50,060
comprising 12365006 equity shares of face value Rs10 each.
What is the employee strength of Calsoft?
As on March 31, 2011 Calsoft group (including all its Subsidiaries) had
266 employees, on its rolls.
What is Calsoft's dividend record?
Calsoft has been declaring and paying dividend since its inception in
1992,except for the Financial years, i.e. 2000-01, 2001-02, 2003-04,
2008-09 and 2010-11
Investor contact. How do I contact Calsoft?
Members can contact the following official at telephone numbers /email
ids/postal address
The Company Secretary.
Tel: 91 44 4282 9000
Fax : 91 44 4282 9012
Email: [email protected]
The postal address for all investor queries is:
The Company Secretary,
California Software Co Ltd.
Robert V Chandran Tower, Seventh Floor,
# 149, Velachery Tambaram Main Road,
Pallikaranai, Chennai-600 100
India.
The following officials can also be contacted /written to at the above
address for any unresolved issues / queries
Ms. N. Anita, Vice President Corporate Planning
Tel: 91 44 4282 9046
Email: [email protected]
The email address for any shareholder enquiries is
[email protected]
For general enquiries the email address is : [email protected]
Where can I get more information about Calsoft and its
activities?
Information is available on the following website: www.calsoftgroup.com
Links are provided on the website for all other group companies and
sites
also.
How do I transfer my shares or change my address?
a. Shares held in physical form - For transfer of shares held in
physical form, you have to write to the Company's Registrar and Share
Transfer Agents:
Integrated Enterprises (India) Ltd,
Unit: California Software Co Ltd,
"Kences TowersÃ, Second Floor, 1, Ramakrishna Street,
North Usman Road, T. Nagar, Chennai 600 017.
Please despatch any certificates only by registered post or reliable
courier service to avoid any losses in transit.
For change of address of shares held in Physical form, please write to
the Registrars at the address mentioned above giving reference of your
folio no.
b. Shares held in demat format - Transfer of shares in electronic form
or change in address is effected through your Depository participant
(DP). Please contact your D P.
c. Any other general correspondence regarding the shares transfers or
unresolved issues are to be addressed to
The Company Secretary,
California Software Co Ltd.
Robert V Chandran Tower, Seventh Floor,
# 149, Velachery Tambaram Main Road,
Pallikaranai, Chennai-600 100
India.
How do I convert my physical shares to Dematerialised form? You may
approach any authorized Depository Participant for opening of a demat
client Account. They will guide you to fill the demat request form
thereafter and undertake the process of converting the physical shares
to Demat form through interaction with our Registrars. The name/s in
which the demat account has been opened in have to be in the same order
as they appeared in the physical share certificate.
Please visit our website www.calsoftgroup.com and refer the FAQ in
Ãinvestors sectionà to get most of the recurring queries answered along
with downloadable forms and templates (for physical shareholders). You
may also write to us at the addresses as mentioned in point 11-c above
for any further clarity
Note: All references to Calsoft above stand for - California Software
Company Ltd
Mar 31, 2010
1. The Company has obtained approvals dated March 7, 2005 and October
10, 2005 from Director, Software Technology Park, Chennai to set up a
100% Export Oriented Units (EOU) under STP Scheme for the development/
manufacture of computer software. The permission granted under the STP
scheme stipulates that the Company would be required to achieve
positive Net Foreign Exchange (NFE) for a period of five years from the
date of commencement of commercial production and the company has
achieved positive NFE as on date and confident of achieving the same at
the end of the stipulated period.
(In Rupees)
March 31, March 31,
2010 2009
2.Capital Commitments:
Estimated amount of contracts
remaining NIL 2,275,615
to be executed on capital account
and not Provided for (Net of
advances)
3.Contingent Liabilities :
4.1 Guarantees given on behalf of
other companies 205,090,000 231,235,000
4.2 Claims against the company not
acknowledged as debt in respect of
certain income tax matters which
are subjudice 14,901,556 14,901,556
4.3 Amounts payable to Inatech
Shareholders Towards Preference
Shares NIL 54,430,300
5. The Companys investments in subsidiaries are considered as long
term and strategic in nature. Accordingly, the excess of the carrying
value over the net book value of the investments is considered as
temporary diminution and hence no provision for the decline in value
has been considered in these accounts.
6. Intangible asset- Product solutions represent cost of Product
development and no additions during the year in respect of the
following products:
a. Test Automation Framework (TAF)
b. Virtual IO
c. Diameter
d. Networking File System (NSF) and
e. Bunkering operations Management systems (BOMS)
The future projection in respect of the above products has been
estimated by the technical department, although the existence of a
market for these products is yet to be developed. However the product
solutions are being amortized over a period of 5 years starting
Financial Year 2008-09.
7. Debtors include Rs.41,673,419 due from Inatech Solutions Limited UK,
and out of that Rs.26,942,544 has been provided for as doubtful debts
8. Rent receivable amounting to Rs 88, 24,000 from Roxanne Research
Private Ltd has been shown under Loans and Advances, and the company is
contemplating initiating legal proceeding against Roxanne Research Pvt
Ltd for the default. How ever the rent receivable have been secured by
a Rental Deposit of Rs 1 crore received from Roxanne.
9. Transfer Pricing
The study of international transactions entered into by the Company
with its overseas associates regarding the extent of compliance to the
transfer pricing regulations of the Income Ta x Act, 1961 is yet to be
completed and the impact, if any, arising out of such study has not
been recognized in these accounts pending completion of the study.
10. Quantitative Details
As the Company is engaged in the development and export of computer
software, the production and sale of which cannot be expressed in any
generic unit, the quantitative details etc., as required under the
Companies
11. Segment Reporting
11.1 The Companys operations predominantly relate to providing
development of software to customers globally operating in various
industry segments. Accordingly, software product and development
revenues along industry classes comprise the primary basis of segmental
information set out in these financial statements. The accounting
policies adopted for segment reporting are in line with the accounting
policies of the Company. Revenue and expenses have been identified to
segments on the basis of the above primary segment information viz
industry segments. Revenue and expenses, which relate to the enterprise
as a whole and are not allocable to the segments on a reasonable basis,
have been included under unallocable corporate income/ expenses.
The Industry segments of the Company consist of: Technology Solutions
(TS), Enterprise Solutions (ES) and Infrastructure Management Services
(IMS)
12.3 Secondary Segment Information
Secondary segmental reporting is performed on the basis of geographical
locations of customers. Revenue from external customers based on the
location of customers is as below.
The company believes that it is currently not practicable to provide
segment disclosures to total assets and liabilities since a meaningful
segregation of available data is onerous.
13. Obligations on long-term, non-cancelable operating Leases The lease
rentals charged for the year ended March 31,2010 / 2009 and maximum
obligations on long-term, non-cancelable operating leases payable as
per the rentals stated in the respective agreements are as follows :
14. Related Party Disclosure
15. Earnings per share
16. Deferred taxation
The deferred tax liability of Rs 41,529,352 (2009-Rs 25,500,000) has
arisen mainly on account of difference between book and tax written
down value of depreciable fixed assets
17. As at March 31, 2010 there is no interest payable to Micro and
Small Enterprises as defined under the Micro Small and Medium
Enterprises Development Act, 2006. This information and that disclosed
under schedule 11 have been determined to the extent such parties have
been identified on the basis of information available with the Company
18. In the absence of details of specific invoice particulars in the
remittance amounts realized from debtors are adjusted on First in First
out Basis.
19. Expenses reimbursed to CSWL of Rs. 82,462,350 . are based on Debit
notes received from them.
20. Except in respect of the following there are no statutory dues of
Customs Duty, Excise Duty, Cess, Wealth Tax and Income Tax, which have
not been deposited on account of a dispute
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article