1. Packing credits PCFC/PC sanctioned by the banks have been restructured by the banks and converted them into working capital term loans. The unpaid interest accumulated till the date of restructuring were also converted into FITL. These loans are payable in equated monthly installments, but due to the financial difficulties, the company could not even the pay EMI amounts as per the restructuring done.
2. The WCTL and cash credit facilities are secured by hypothecation of book debts, other current assets and fixed assets. Further guaranteed by the two promoter directors of the company in their personal capacity. The WCTL/Cash Credit is repayable on demand.
3. Indian Rupee Loan from Banks includes an amount of Rs.950 lakhs towards Bank Guarantee. The loan is repayable in 4 quarterly installments along with interest, from the date of loan, viz 15-Mar-2013. The loan has been guaranteed by the Bank guarantee of Union Bank of India
4. Indian rupee loan from banks includes crystallized Foreign currency loan amount of Rs.7529 lakhs. This loan is secured by hypothecation of book debts, other current assets and fixed assets. Further guaranteed by the two promoter directors of the company in their personal capacity.
5. A new bill discounting loan of Rs.145 lakhs was availed in Mar’13 repayable in 90 days.
6. Indian rupee loan amount of Rs. 1100.00 lakhs is secured by first pari pasu charge on current assets, book debts and movable property and the shares are also pledged. The loan is repayable at the end of 90 days.
7. Indian rupee loan amount of Rs. 2500.00 lakhs is secured by hypothecation of current assets, both present and future on second charge basis. The loan is repayable at the end of 6 months.
8. Unsecured loans availed from individual and financial institutions earlier have been reclassified and brought under short term borrowings.
Zylog Systems (Canada) Limited shares were pledged with ICICI Bank for the loans availed for acquiring the companies in Canada. Due to default in payments and the account became NPA, ICICI Bank has sold the shares and recovered the money. However, the company is pursuing the matter legally. Due to this, the investments made in the company has been charged to P & L Account.
The acquired company Matrix Primus Partners, Inc is into a severe financial crisis. Due to this, the company has lost all its businesses and employees and as on date the company is virtually closed and hence the investment made in the company has been charged to P & L Account considering the present status of affairs of the company.
Investment in Indian subsidiaries have been reviewed by the management. These subsidiaries are not performing well for the past few years. Also the subsidiaries are facing cash flow crises and not able to pay the dues to the lenders, vendors, employees and statutory bodies. considering these the management has decided to revalue the investments made in the subsidiaries and provided diminution @ 95% of the investment.
Pursuant to Accounting Standard 22 ‘Accounting for Taxes on Income’ as prescribed in Companies Accounting Standard Rules, 2006, the Company has recorded the Cumulative Net Deferred Tax Assets as at 31st Mar 2016 of Rs. 35.68 lakhs and Rs. 1,750.66 lakhs has been credited to the profit & Loss account.
9. EARNING PER SHARE (EPS)
In determining earnings per share, the company considers the net profit after tax and includes the post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The components of basic and diluted earnings per share are as follows.
10. DISCLOSURES UDNER “ ACCOUNTING STANDARD (AS)-15 (Revised) -
EMPLOYEE BENEFITS_
11. Reconciliation of opening and closing balances of Defined Benefit obligation** (The computations given hereunder are for the company and two of its wholly owned Indian subsidiaries. The figures do not match with the figures in the financial statements since the amounts have been allocated to the three companies in relation to their liability)
12. Since the company operates in IT Services, there are no other business segments. However around 98% of the revenue accrue in US and consequently there are no other reportable geographical segments.
13. Other Current Asset include unbilled revenue of Rs. 117.96 lakhs (Rs. 6,921.71 lakhs) recognized in relation to efforts incurred on various contracts until the balance sheet date.
14. The company has acquired various businesses during the financial years ended 31st March 2003, 31st March 2006, 31st March 2008, 31st March 2009, 31st March 2013. During the current year ended 31st March 2016, the company has made payment of Rs. Nil towards earn out. The assets acquired in these business comprise various resources such as human resources, client lists and other related benefits and also undertakings by the promoters of the vendors of these businesses not to engage in any business with clients taken over for a specified period of time. The total amount invested in acquiring these businesses is Rs. 11,881.19 Lakhs. The company reviewed the contributions of these acquired entities and considering their usefulness, the unamortized amount of business acquisition Rs. 32.12 cr has been reversed.
15. Amounts due to Small Scale Industries under Current Liabilities is based on the information available with the company regarding the status of the suppliers as defined under the “Micro, Small and Medium Enterprises Development Act, 2006”. Amounts overdue as on 31st March 2016 to Micro, Small and Medium Enterprises on account of principal and interest is Rs. Nil ( Rs. Nil).
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