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Accounting Policies of Excel Realty N Infra Ltd. Company
Mar 31, 2025
36 SIGNIFICANT ACCOUNTING POLICIES A Company Overview
The Company ("Excel Realty N Infra Limited", "Excel") is an existing public limited company incorporated on 07/01/2003 under the provisions of the Indian Companies Act, 1956 and deemed to exist within the purview of the Companies Act, 2013, having its registered office at 31-A Laxmi Industrieal Estate, New Link Road, Andheri West Mumbai 400053. The company is engaged in the business of IT enabled BPO Services, development of infrastructure facility & general trading. The equity shares of the Company are listed on BSE Limited (âBSEâ) and National Stock Exchange of India Limited (âNSEâ). The financial statements are presented in Indian Rupee.
B Basis of preparation and presentation of financial statementsa) Statement of Compliance:
The Company''s financial statements for the year ended 31st March 2025 have been prepared in accordance with Indian Accounting Standards (Ind AS) as per Companies (Indian Accounting Standards) Rules, 2015, and Companies (Indian Accounting Standards) Amendment Rules, 2016, notified, under Section 133 of Companies Act, 2013 (âthe Actâ) and other relevant provisions of the Act.
b) Functional and Presentation Currency
These financial statements are presented in Indian Rupees (Rs.), which is also the Company''s functional currency.
The financial statements have been prepared on the basis of going concern under the historical cost basis convention using the accrual method of accounting except for certain financial assets and liabilities and defined benefit plan assets measured at fair value.
The preparation of financial statements requires management to make estimates assumptions and judgments that affect the reported balances of assets and liabilities and disclosures as at the date of the financial statements and the reported amounts of income and expenditure for the periods presented. Actual results may differ from the estimates considering different assumptions and conditions.
Estimates and underlying assumptions are reviewed on ongoing basis. Impact on account of revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected.
Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:-
Note 1 A :- Useful life of Property, plant and equipment Note 1 M :- Defined benefit obligation Note (f) :- Estimated Fair Values of Unlisted Shares
Note 1(N) :- Recognition of Deferred taxes
The Company''s accounting policies and disclosures require the measurement of fair values, for both financial assets and liabilities.
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
⢠In the principal market for the asset or liability, or
⢠In the absence of a principal market, in the most advantageous market for the assets or liability
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. the fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and lowest priority to unobservable inputs (Level 3 inputs).
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
1) Significant Accounting PoliciesA) Property, Plant and Equipment (PPE)(i) Recognition and Measurement
"PPE is measured on initial recognition at cost net of taxes/duties, credits availed, if any, and subsequently carried at cost less accumulated depreciation and accumulated impairment losses, if any.
The cost of PPE includes borrowing costs directly attributable to acquisition, construction or production of qualifying assets. Qualifying assets are assets which necessarily take a substantial period of time to get ready for its intended use.
Machinery spares that meet the definition of PPE are capitalized and depreciated over the useful life of the principal item of the asset.
Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
An item of PPE is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the item. Any gain or loss arising on disposal or retirement of item of PPE is determined as the difference between the sale proceeds and the carrying amount of the item and is recognized in the statement of profit or loss in the period in which the PPE is derecognized.
B) Intangible Assets(i) Acquired intangible
Intangible assets are initially measured at cost. Such intangible assets are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values over their estimated useful lives using the straight-line method, and is included in depreciation and amortisation in Statement of Profit and Loss.
Intangible assets are amortised over a period of 10 years for technical know- how and 3 years for others.
Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted if appropriate.
Investment property is the property either to earn rental income or for capital appreciation or for both but not for sale in ordinary course of business, use in production or supply of goods or services or for administrative purpose. Investment properties are measured initially at cost, including transaction costs.
Investment properties are derecognized either upon disposal or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period in which the property is derecognized.
Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over their estimated useful lives using the straight-line method, and is recognised in the statement of profit and loss.
The estimated useful lives of items of property, plant and equipment for the current and comparative periods are as follows:
|
Asset |
Management estimate of useful life |
Useful life as per Schedule II of the Companies Act, 2013 |
|
Plant & Machinery |
20 years |
20 years |
|
Building |
30 years |
30 years |
|
Office equipments and Air condition |
5 years |
5 years |
|
Furniture and fixtures |
10 years |
10 years |
|
Computers and Printers |
3 years |
3 years |
|
Vehicles- Motor car |
8 years |
8 years |
|
Note : Assets of value Rs. 5,000 or below purchased during the year are charged 100 % in Profit/Loss Account . |
||
Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. Based on internal assessment and consequent advice, the management believes that its estimates of useful lives as given above best represent the period over which management expects to use these assets.
Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (up to) the date on which asset is ready for use (disposed off).
E) Impairment of Non - Financial Assets
The carrying amounts of the Company''s tangible and intangible assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated in order to determine the extent of the impairment loss, if any.
The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cash-generating unit for which the estimates of future cash flows have not been adjusted. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets
An impairment loss is recognised in the profit or loss if the estimated recoverable amount of an asset or its cash generating unit is lower than its carrying amount. Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the other assets in the unit on a pro-rata basis.
In respect of other asset, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Transactions denominated in foreign currencies; are normally recorded at the exchange rate prevailing on the date of transaction.
Monetary items denominated in foreign currencies at the year end are re-measured at the exchange rate prevailing on the balance sheet date. Non monetary foreign currency items are carried at cost.
Any income or expense on account of exchange difference either on settlement or on translation; if any, is recognized in the Profit And Loss Statement.
F) Financial Instruments a) Financial Assets Initial Recognition and Measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Financial assets are classified, at initial recognition, as financial assets measured at fair value or as financial assets measured at amortized cost.
For the purpose of subsequent measurement financial assets are classified into two broad categories:
⢠Financial Assets at Fair Value
⢠Financial Assets at Amortized Cost
Where assets are measured at fair value, gains and losses are either recognized entirely in the statement of profit and loss or recognized in other comprehensive income. A financial asset that meets the following two conditions is measured at amortized cost.
⢠Business Model Test: The objective of the company''s business model is to hold the financial asset to collect the contractual cash flows.
⢠Cash Flow Characteristics Test: The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payment of principal and interest on the principal amount outstanding. A financial asset that meets the following two conditions is measured at fair value through OCI.
⢠Business Model Test: The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
⢠Cash Flow Characteristics Test: The contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payment of interest on the principal amount outstanding.
All other financial assets are measured at fair value through profit and loss.
All equity investments are measured at fair value in the balance sheet, with value changes recognized in the statement of profit and loss, except for those equity investments for which the entity has elected irrecoverable option to present value changes in OCI.
Impairment of financial assets
The company assesses impairment based on Expected Credit Losses (ECL) model at an amount equal to 12 months expected credit losses, or, lifetime expected credit losses, depending upon whether there has been a significant increase in credit risk since initial recognition.âHowever, for trade receivables, the company does not track the changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
All financial liabilities are initially recognized at fair value and, in case of loans and borrowings and payables, net of directly attributable transaction costs.
Financial liabilities are classified as measured at amortized cost or fair value through profit and loss (FVTPL). A financial liability is classified as FVTPL if it is classified as held for trading, or it is a derivative or is designated as such on initial recognition. Financial Liabilities at FVTPL are measured at fair value and net gain or losses, including any interest expense, are recognized in statement of profit and loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in statement of profit and loss. Any gain or loss on derecognition is also recognized in statement of profit and loss.
The company holds derivative financial instruments in the form of Forward Contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts are banks.
Although these derivatives constitutes hedges from an economic perspective, they do not qualify for hedge accounting under Ind AS 109 and consequently are categorized as financial assets or liabilities at fair value through profit or loss. The resulting exchange gain or loss are included in other income and attributable transaction costs are recognized in Statement of profit or Loss when incurred.
H) Inventories
Items of Inventories are measured at lower of cost and net realizable value after providing for obsolescence and damage, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incidental to purchase in bringing them to their respective present location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
Revenue is measured at the fair value of the consideration received or receivable, and represents amounts exclusive of excise duty receivable for goods supplied, stated net of discounts, returns, GST and value added taxes. The company recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Company''s activities, as described below.
Sale of Goods and services
Sales are recognised when the significant risks and rewards of ownership of the goods are transferred to the buyer as per terms of contract. Income and fees from services are accounted as per terms of relevant contractual
agreements/arrangements.
Interest income is recognized on accrual basis as per the terms of relevant contracts or by using the effective interest method, where applicable.
Dividend income is recognized when the right to receive payment is established.
Service Income : Consultance fees is recognised only when the services completed.
Leases, where the lesser retains, substantially all the risk and rewards incidental to ownership of the leased assets, are classified as operating lease. Operating lease expense is recognized in the statement of profit and loss on a straight-line basis over the lease term. In respect of assets given on lease, lease rentals are accounted on accrual basis in accordance with the respective lease terms.
K) Employee Benefits Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and are recognized in the statement of Profit and Loss as an expense at the undiscounted amount on an accrual basis.
These benefits include compensated absences such as paid annual leave and performance incentives which are expected to occur within twelve months after the end of the period in which the employee renders the related services.
The cost of compensated absences is accounted as under:
a) In case of accumulated compensated absences, when employees render service that increase their entitlement of future compensated absences, and
b) In case of non-accumulating compensated absences, when the absences occur.
Post employment benefits Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. The Company makes specified monthly contributions towards Government administered provident fund, pension fund and Employee State Insurance scheme. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in profit or loss in the periods during which the related services are rendered by employees.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The calculation of defined benefit obligation is performed annually by an actuary using the projected unit credit
method.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses are recognized in OCI. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service (âpast service cost'' or âpast service gain'') or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Other long-term employee benefits
The Company''s net obligation in respect of long-term employee benefits other than post-employment benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The obligation is measured on the basis of an annual independent actuarial valuation using the projected unit credit method. Remeasurements gains or losses are recognized in profit or loss in the period in which they arise.
Income tax expense comprises of current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes are recognized in statement of Profit and Loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.
Tax expenses comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rate. Deferred Income tax reflect the current period timing difference between taxable and accounting income for the period and reversal of timing differences of earlier years/ period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.
Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses and tax credits.
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognizes a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realized. Deferred tax assets - unrecognized or recognized, are reviewed at each reporting date and are recognized/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realized.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realized
or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable Company, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
M) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assumptions of the time value of money and the risks specific to the liability. The unwinding of discount is recognized as finance cost.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received, and the amount of the receivable can be measured reliably.
A provision for onerous contract is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.
Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote.
The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding after adjusting for the effects of all potential dilutive ordinary shares.
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.
Company as a lessee
The Company''s lease asset classes primarily consist of leases for land and buildings. The Company assesses
whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low value leases. For these short-term and low-value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.. The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted forany lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Company changes its assessment of whether it will exercise an extension or a termination option.
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
40 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.
Mar 31, 2024
36 SIGNIFICANT ACCOUNTING POLICIES A Company Overview
The Company ("Excel Realty N Infra Limited", "Excel") is an existing public limited company incorporated on 07/01/2003 under the provisions of the Indian Companies Act, 1956 and deemed to exist within the purview of the Companies Act, 2013, having its registered office at 31-A Laxmi Industrial Estate, New Link Road, Andheri West Mumbai 400053. The company is engaged in the business of IT enabled BPO Services, development of infrastructure facility & general trading. The equity shares of the Company are listed on BSE Limited (âBSEâ) and National Stock Exchange of India Limited (âNSEâ). The financial statements are presented in Indian Rupee (?).
a) Statement of Compliance:
The Company''s financial statements for the year ended 31st March 2023 have been prepared in accordance with Indian Accounting Standards (Ind AS) as per Companies (Indian Accounting Standards) Rules, 2015, and Companies (Indian Accounting Standards) Amendment Rules, 2016, notified, under Section 133 of Companies Act, 2013 (âthe Actâ) and other relevant provisions of the Act.
b) Functional and Presentation Currency
These financial statements are presented in Indian Rupees (Rs.), which is also the Company''s functional currency.
c) Basis of measurement
The financial statements have been prepared on the basis of going concern under the historical cost basis convention using the accrual method of accounting except for certain financial assets and liabilities and defined benefit plan assets measured at fair value.
d) Use of Estimates
"The preparation of financial statements requires management to make estimates assumptions and judgments that affect the reported balances of assets and liabilities and disclosures as at the date of the financial statements and the reported amounts of income and expenditure for the periods presented. Actual results may differ from the estimates considering different assumptions and conditions.
Estimates and underlying assumptions are reviewed on ongoing basis. Impact on account of revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected.â
e) Judgments
"Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:-â
Note 1 A :- Useful life of Property, plant and equipment Note 1 M :- Defined benefit obligation Note (f) :- Estimated Fair Values of Unlisted Shares Note 1(N) :- Recognition of Deferred taxes
f) Measurement of Fair Values
"The Company''s accounting policies and disclosures require the measurement of fair values, for both financial assets and liabilities.
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
⢠In the principal market for the asset or liability, or
⢠In the absence of a principal market, in the most advantageous market for the assets or liability
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. the fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and lowest priority to unobservable inputs (Level 3 inputs).
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred."
1) Significant Accounting Policies
A) Property, Plant and Equipment (PPE)
(i) Recognition and Measurement
"PPE is measured on initial recognition at cost net of taxes/duties, credits availed, if any, and subsequently carried at cost less accumulated depreciation and accumulated impairment losses, if any.
The cost of PPE includes borrowing costs directly attributable to acquisition, construction or production of qualifying assets. Qualifying assets are assets which necessarily take a substantial period of time to get ready for its intended use.
Machinery spares that meet the definition of PPE are capitalized and depreciated over the useful life of the principal item of the asset.
(ii) Subsequent expenditure
Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
(iii) Derecognition
An item of PPE is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the item. Any gain or loss arising on disposal or retirement of item of PPE is determined as the difference between the sale proceeds and the carrying amount of the item and is recognized in the statement of profit or loss in the period in which the PPE is derecognized.
B) Intangible Assets
(i) Acquired intangible
"Intangible assets are initially measured at cost. Such intangible assets are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses."
(ii) Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
(iii) Amortisation
"Amortisation is calculated to write off the cost of intangible assets less their estimated residual values over their estimated useful lives using the straight-line method, and is included in depreciation and amortisation in Statement of Profit and Loss.
Intangible assets are amortised over a period of 10 years for technical know- how and 3 years for others.
Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted if appropriate."
C) Investment Property
Investment property is the property either to earn rental income or for capital appreciation or for both but not for sale in ordinary course of business, use in production or supply of goods or services or for administrative purpose. Investment properties are measured initially at cost, including transaction costs.
Investment properties are derecognized either upon disposal or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period in which the property is derecognized.
D) Depreciation
Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over their estimated useful lives using the straight-line method, and is recognised in the statement of profit and loss.
The estimated useful lives of items of property, plant and equipment for the current and comparative periods are as follows:
|
Asset |
Management estimate of useful life |
Useful life as per Schedule II of the Companies Act, 2013 |
|
Plant & Machinery |
20 years |
20 years |
|
Building |
30 years |
30 years |
|
Office equipments and Air condition |
5 years |
5 years |
|
Furniture and fixtures |
10 years |
10 years |
|
Computers and Printers |
3 years |
3 years |
|
Vehicles- Motor car |
8 years |
8 years |
"Note : Assets of value Rs. 5,000 or below purchased during the year are charged 100 % in Profit/Loss Account."
"Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. Based on internal assessment and consequent advice, the management believes that its estimates of useful lives as given above best represent the period over which management expects to use these assets.
Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (up to) the date on which asset is ready for use (disposed off)."
E) Impairment of Non - Financial Assets
"The carrying amounts of the Company''s tangible and intangible assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated in order to determine the extent of the impairment loss, if any.
The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cash-generating unit for which the estimates of future cash flows have not been adjusted. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the âcash-generating unitâ).
An impairment loss is recognised in the profit or loss if the estimated recoverable amount of an asset or its cash generating unit is lower than its carrying amount. Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the other assets in the unit on a pro-rata basis.
In respect of other asset, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.â
"Foreign Currency Transactions"
Transactions denominated in foreign currencies; are normally recorded at the exchange rate prevailing on the date of transaction.
Monetary items denominated in foreign currencies at the year end are re-measured at the exchange rate prevailing on the balance sheet date. Non monetary foreign currency items are carried at cost.
Any income or expense on account of exchange difference either on settlement or on translation; if any, is recognized in the Profit And Loss Statement.
F) Financial Instruments
a) Financial Assets
Initial Recognition and Measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Financial assets are classified, at initial recognition, as financial assets measured at fair value or as financial assets measured at amortized cost. Subsequent Measurement
For the purpose of subsequent measurement financial assets are classified into two broad categories:
⢠Financial Assets at Fair Value
⢠Financial Assets at Amortized Cost
Where assets are measured at fair value, gains and losses are either recognized entirely in the statement of profit and loss or recognized in other comprehensive income. A financial asset that meets the following two conditions is measured at amortized cost.
⢠Business Model Test: The objective of the company''s business model is to hold the financial asset to collect the contractual cash flows.
⢠Cash Flow Characteristics Test: The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payment of principal and interest on the principal amount outstanding. A financial asset that meets the following two conditions is measured at fair value through OCI.
⢠Business Model Test: The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
⢠Cash Flow Characteristics Test: The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payment of interest on the principal amount outstanding.
All other financial assets are measured at fair value through profit and loss.
All equity investments are measured at fair value in the balance sheet, with value changes recognized in the statement of profit and loss, except for those equity investments for which the entity has elected irrecoverable option to present value changes in OCI.
Impairment of financial assets
The company assesses impairment based on Expected Credit Losses (ECL) model at an amount equal to 12 months expected credit losses, or, lifetime expected credit losses, depending upon whether there has been a significant increase in credit risk since initial recognition.
However, for trade receivables, the company does not track the changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
b) Financial Liabilities
All financial liabilities are initially recognized at fair value and, in case of loans and borrowings and payables, net of directly attributable transaction costs.
Financial liabilities are classified as measured at amortized cost or fair value through profit and loss (FVTPL). A financial liability is classified as FVTPL if it is classified as held for trading, or it is a derivative or is designated as such on initial recognition. Financial Liabilities at FVTPL are measured at fair value and net gain or losses, including any interest expense, are recognized in statement of profit and loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in statement of profit and loss. Any gain or loss on derecognition is also recognized in statement of profit and loss.
G) Derivatives
The company holds derivative financial instruments in the form of Forward Contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts are banks.
Although these derivatives constitutes hedges from an economic perspective, they do not qualify for hedge accounting under Ind AS 109 and consequently are categorized as financial assets or liabilities at fair value through profit or loss. The resulting exchange gain or loss are included in other income and attributable transaction costs are recognized in Statement of profit or Loss when incurred.
H) Inventories
Items of Inventories are measured at lower of cost and net realizable value after providing for obsolescence and damage, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incidental to purchase in bringing them to their respective present location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
I) Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable, and represents amounts exclusive of excise duty receivable for goods supplied, stated net of discounts, returns, GST and value added taxes. The company recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Company''s activities, as described below.
Sale of Goods and services
Sales are recognised when the significant risks and rewards of ownership of the goods are transferred to the buyer as per terms of contract. Income and fees from services are accounted as per terms of relevant contractual agreements/arrangements.
Interest Income
Interest income is recognized on accrual basis as per the terms of relevant contracts or by using the effective interest method, where applicable. Dividend income
Dividend income is recognized when the right to receive payment is established.
Service Income : Consultance fees is recognised only when the services completed
J) Lease Accounting
Leases, where the lesser retains, substantially all the risk and rewards incidental to ownership of the leased assets, are classified as operating lease. Operating lease expense is recognized in the statement of profit and loss on a straight-line basis over the lease term. In respect of assets given on lease, lease rentals are accounted on accrual basis in accordance with the respective lease terms.
K) Employee Benefits Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and are recognized in the statement of Profit and Loss as an expense at the undiscounted amount on an accrual basis.
These benefits include compensated absences such as paid annual leave and performance incentives which are expected to occur within twelve months after the end of the period in which the employee renders the related services.
The cost of compensated absences is accounted as under:
a) In case of accumulated compensated absences, when employees render service that increase their entitlement of future compensated absences, and
b) In case of non-accumulating compensated absences, when the absences occur.
Post employment benefits
Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. The Company makes specified monthly contributions towards Government administered provident fund, pension fund and Employee State Insurance scheme. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in profit or loss in the periods during which the related services are rendered by employees.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.
Defined Benefit Plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The calculation of defined benefit obligation is performed annually by an actuary using the projected unit credit method.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses are recognized in OCI. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service (âpast service cost'' or âpast service gain'') or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Other long-term employee benefits
The Company''s net obligation in respect of long-term employee benefits other than post-employment benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value.
The obligation is measured on the basis of an annual independent actuarial valuation using the projected unit credit method. Remeasurements gains or losses are recognized in profit or loss in the period in which they arise."
L) Income Taxes
Income tax expense comprises of current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes are recognized in statement of Profit and Loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.
Tax expenses comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rate. Deferred Income tax reflect the current period timing difference between taxable and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.
Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses and tax credits.
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognizes a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realized. Deferred tax assets - unrecognized or recognized, are reviewed at each reporting date and are recognized/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realized.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date. The measurement of deferred tax reflects the tax consequences that | would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable Company, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
M) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assumptions of the time value of money and the risks specific to the liability. The unwinding of discount is recognized as finance cost.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received, and the amount of the receivable can be measured reliably.
A provision for onerous contract is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.
Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote.
N) Earnings per share
The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding after adjusting for the effects of all potential dilutive ordinary shares.
O) Cash flow statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.
P) Leases Company as a lessee
The Company''s lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low value leases. For these short term and low-value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.. The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted forany lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Company changes its assessment of whether it will exercise an extension or a termination option.
Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
|
37 MANAGERIAL REMUNERATION |
||||
|
Amount in Rs. |
||||
|
2023-24 |
2022-23 |
|||
|
Salary |
54,00,000 |
22,00,000 |
||
|
Allowance & Others |
||||
|
Total |
54,00,000 |
22,00,000 |
||
|
38 Contingent liabilities and commitments |
||||
|
Particulars |
As at 31 March 2024 |
|||
|
Contingent liabilities |
||||
|
Income Tax Demand (FY.2012-13), unpaid amount |
3,04,590 |
|||
|
Penalty imposed by Whole Time Member of SEBI (50% of the penalty paid under protest and filed an appeal before the SAT) |
5,00,000 |
|||
|
39 Expenditure in Foreign Currencies |
||||
|
2023-24 |
2022-23 |
|||
|
Rs. |
Rs. |
|||
|
Communication Expenses |
- |
- |
||
40 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.
Mar 31, 2016
1. Corporate information
Excel Realty N Infra Limited (formerly known as Excel Infoways Ltd.) (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its equity shares are listed on National Stock Exchange and Bombay Stock Exchange in India. The company is engaged in the business of IT enabled BPO Services, development of infrastructure facility & general trading.
2. Basis of preparation
These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (âIndian GAAPâ) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies adopted in the presentation of the financial statements are consistent with those followed in the previous year.
2.1 Summary of significant accounting policies
a. Change in accounting policy
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in accounting policy in use.
b. Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
c. Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.
Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realizable value and are disclosed separately in the balance sheet.
d. Depreciation on tangible fixed assets
In respect of fixed assets (other than freehold land and capital work-in-progress) acquired during the year, depreciation/ amortization is charged on a straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to 1 April, 2014,the carrying amount as on 1 April, 2014 is depreciated over the remaining useful life based on an evaluation:
The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year and the amortization period is revised to reflect the changed pattern, if any.
Rates (SLM)
Buildings - 1.63%
Plant and equipment - 10.34%
Furniture and fixtures - 6.33%
Vehicles - 11.87%
Computers and peripherals - 31.67%
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of asset exceeds the recoverable amount. An impairment loss is charged to the profit and loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the Company will comply with the conditions attached to them, and (ii) the grant/subsidy will be received.
g. Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. Investments in subsidiaries are classified as long-term investments and are stated at cost except in case of foreign subsidiaries which are translated at current value.
h. Employee benefits
As per the practice consistently followed, leave encashment is accounted for as and when paid. In view of the management, most of the employees have already utilized balance of leave in their account therefore there is no material amount of leave encashment payable at the year end. Since, none of the employees have put in specified period of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution plans. These comprise defined contribution to Employees Provident Fund and are reported as expenses. During the year no employee is qualify for contribution to Provident Fund. However the company is regular in filling Provident Fund return.
i. Revenue Recognition
The Company earns revenues from Business Process Outsourcing (BPO) / Information Technology Enabled Services which are recognized when the related services are rendered and recorded at relevant exchange rate prevailing on the date of transaction. Revenue from Infrastructure activities are recognized when the related work is completed. Revenue from trading activities are recognized when sales is completed.
j. Taxes on Income
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Company operates.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.
k. Foreign Currency Transactions and Translations
Income and Expenses in foreign currencies are converted at exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on the balance sheet date. Exchange difference gain/(loss) is recognized in the profit and loss account. Premium or discount on forward exchange contracts are amortized and recognized in the profit and loss account. In case of non-integral foreign operations, the assets and liabilities are translated at the closing rate and income and expenditure are translated at the rate on the date of transaction. The resulting exchange difference arising is accumulated in foreign currency translation reserve under reserve and surplus.
l. Borrowing Cost
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Revenue.
m. Service Tax
Service Tax is recognized on the basis of both, payments made in respect of service taken from professional and others and service rendered by the Company for BPO related service, where applicable.
n. Segment reporting Identification of segments
The Company''s operating businesses are organized and managed separately according to the nature of business and services provided, with each segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items which are not allocated to any business segment. Segment accounting policies
The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.
o. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
p. Provisions
A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
q. Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability.
r. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.
Details of dues to Micro and Small Enterprises under the MSMED Act, 2006
As per information available with the Company, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Devlopment Act 2006, to whom the Company owes dues on account of principle or interest.
The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been defined on the basis of information available with the Company. This has been relied upon by the auditors.
Mar 31, 2015
A. Change in accounting policy
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except where a
newly issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in accounting policy
in use.
b. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
c. Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date. Exchange differences
arising on restatement / settlement of long-term foreign currency
borrowings relating to acquisition of depreciable fixed assets are
adjusted to the cost of the respective assets and depreciated over the
remaining useful life of such assets. Subsequent expenditure relating
to fixed assets is capitalized only if such expenditure results in an
increase in the future benefits from such asset beyond its previously
assessed standard of performance.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realisable value and are
disclosed separately in the balance sheet.
d. Depreciation on tangible fixed assets
In respect of fixed assets (other than freehold land and capital
work-in-progress) acquired during the year, depreciation/ amortization
is charged on a straight line basis so as to write off the cost of the
assets over the useful lives and for the assets acquired prior to 1
April, 2014, the carrying amount as on 1 April, 2014 is depreciated
over the remaining useful life based on an evaluation:
The estimated useful life of the intangible assets and the amortisation
period are reviewed at the end of each financial year and the
amortisation period is revised to reflect the changed pattern, if any.
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that (i) the Company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
g. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. Investments in subsidiaries are
classified as long-term investments and are stated at cost except in
case of foreign subsidiaries which are translated at current value.
h. Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
i. Revenue Recognition
The Company earns revenues from Business Process Outsourcing (BPO) /
Information Technology Enabled Services which are recognized when the
related services are rendered and recorded at relevant exchange rate
prevailing on the date of transaction. Revenue from Infrastructure
activities are recognized when the related work is completed.
j. Taxes on Income
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the Company
operates.
Deferred income taxes reflect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company
k. Foreign Currency Transactions and Translations
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account. In case of non-integral foreign operations the assets
and liabilities are translated at the closing rate and income and
expenditure are translated at the rate on the date of transaction. The
resulting exchange difference arising is accumulated in foreign
currency translation reserve under reserve and surplus.
l. Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to Revenue.
m. Service Tax
Service Tax is recognized on the basis of both, payments made in
respect of service taken from professional and others and service
rendered by the Company for BPO related service, where applicable.
n. Segment reporting Identification of segments
The Company's operating businesses are organized and managed separately
according to the nature of business and services provided, with each
segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment. Segment accounting
policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
o. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
p. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
q. Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability.
r. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
(i) Term loan from banks is taken for business expansion in the month
of July 2012 against mortgage of office premises for a period of sixty
months at an interest rate of 14.00% p.a. Loan amounting to Rs. 2692.00
thousand was repaid during the year.
(ii) Term loan from others is taken for business expansion against
residential bungalow and pledge of shares held by directors, in the
month of August 2013 amounting to Rs. 45,200 thousand at interest rate
14.25% p.a. for a period of 156 month having EMI of Rs. 637.89 thousand.
Details of dues to Micro and Small Enterprises under the MSMED Act,
2006
As per information available with the Company, there are no Micro,
Small and Medium Enterprises, as defined in the Micro, Small and Medium
Enterprises Development Act 2006, to whom the Company owes dues on
account of principle or interest.
The above information regarding Micro, Small and Medium Enterprises has
been determined to the extent such parties have been defined on the
basis of information available with the Company. This has been relied
upon by the auditors.
Mar 31, 2014
Corporate information
Excel Infoways Limited (the Company) is a public company domiciled in
India and incorporated under the provisions of the Companies Act, 1956.
Its shares are listed on two stock exchanges in India. The Company is
engaged in the IT enabled BPO Services and development of
infrastructure facility.
Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
Summary of significant accounting policies
a. Change in accounting policy
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except where a
newly issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in accounting policy
in use.
b. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
c. Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for
the intended use. Any trade discounts and rebates are deducted in
arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the period during which
such expenses are incurred.
d. Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on a straight-line basis
using the rates prescribed under the Schedule XIV to the Companies Act,
1956. The Company has used the following rates to provide depreciation
on its fixed assets.
Rates (SLM)
Buildings - 1.63%
Plant and equipment - 10.34%
Furniture and fixtures - 6.33%
Vehicles - 9.50%
Office Equipment - 16.21%
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that (i) the Company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
g. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. Investments in subsidiaries are
classified as long-term investments and are stated at cost except in
case of foreign subsidiaries which are translated at current value.
i. Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
j. Revenue Recognition
The Company earns revenues from Business Process Outsourcing (BPO) /
Information Technology Enabled Services which are recognized when the
related services are rendered and recorded at relevant exchange rate
prevailing on the date of transaction. Revenue from Infrastructure
activities are recognized when the related work is completed.
k. Taxes on Income
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the Company
operates.
Deferred income taxes reflect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The Company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the Company will pay normal income tax during the
specified period, i.e., the period for which MAT credit is allowed to
be carried forward. In the year in which the Company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "ÂMAT Credit Entitlement."
The Company reviews the "ÂMAT credit entitlement" asset at each
reporting date and writes down the asset to the extent the Company does
not have convincing evidence that it will pay normal tax during the
specified period.
l. Foreign Currency Transactions and Translations
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account. In case of non-integral foreign operations the assets
and liabilities are translated at the closing rate and income and
expenditure are translated at the rate on the date of transaction. The
resulting exchange difference arising is accumulated in foreign
currency translation reserve under reserve and surplus.
m. Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to Revenue.
n. Service Tax
Service Tax is recognized on the basis of services rendered by the
Company.
o. Segment reporting
Identification of segments
The Company''s operating businesses are organized and managed separately
according to the nature of business and services provided, with each
segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment.
Segment accounting policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
p. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
q. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
r. Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability.
s. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
Mar 31, 2013
A. Change in accounting policy
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except where a
newly issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in accounting policy
in use.
b. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods
c. Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for
the intended use. Any trade discounts and rebates are deducted in
arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the period during which
such expenses are incurred.
d. Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on a straight-line basis
using the rates prescribed under the Schedule XIV to the Companies Act,
1956. The Company has used the following rates to provide depreciation
on its fixed assets.
Rates (SLM)
Buildings - 1.63%
Plant and equipment - 10.34%
Furniture and
fixtures - 6.33%
Vehicles - 9.50%
Office Equipments - 16.21%
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that (i) the Company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
g. Investments
Investments which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. Investments in subsidiary are
classified as long-term investments and are stated at cost except in
case of foreign subsidiary which are translated at current value.
i. Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
j. Revenue Recognition
The Company earns revenues from Business Process Outsourcing (BPO) /
Information Technology Enabled Services which are recognized when the
related services are rendered and recorded at relevant exchange rate
prevailing on the date of transaction. Revenue from Infrastructure
activities are recognized when the related work is completed.
k. Taxes on Income
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the Company
operates.
Deferred income taxes reflect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Minimum alternate tax
(MAT) paid in a year is charged to the statement of profit and loss as
current tax. The Company recognizes MAT credit available as an asset
only to the extent that there is convincing evidence that the Company
will pay normal income tax during the specified period, i.e., the
period for which MAT credit is allowed to be carried forward. In the
year in which the Company recognizes MAT credit as an asset in
accordance with the Guidance Note on Accounting for Credit Available in
respect of Minimum Alternative Tax under the Income-tax Act, 1961, the
said asset is created by way of credit to the statement of profit and
loss and shown as "MAT Credit Entitlement." The Company reviews the
"MAT credit entitlement" asset at each reporting date and writes down
the asset to the extent the Company does not have convincing evidence
that it will pay normal tax during the specified period.
l. Foreign Currency Transactions and Translations
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account. In case of non-integral foreign operations the assets
and liabilities are translated at the closing rate and income and
expenditure are translated at the rate on the date of transaction. The
resulting exchange difference arising is accumulated in foreign
currency translation reserve under reserve and surplus.
m. Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to Revenue.
n. Service Tax
Service Tax is recognized on the basis of both, payments made in
respect of service taken from professional and others and service
rendered by the Company for BPO related service, where applicable.
o. Segment reporting
Identification of segments
The Company''s operating businesses are organized and managed separately
according to the nature of business and services provided, with each
segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment.
Segment accounting policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
p. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares
q. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. .
r. Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability
s. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short- term investments with an
original maturity of three months or less.
Mar 31, 2012
A. Change in accounting policy
Presentation and disclosure of financial statements
During the year ended March 31, 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the Company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements.
The Company has also reclassified the previous year figures in
accordance with the requirements applicable in the current year.
b. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
c. Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The . cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for
the intended use. Any trade discounts and rebates are deducted in
arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the period during which
such expenses are incurred.
d. Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on a straight-line basis
using the rates prescribed under the Schedule XIV to the Companies Act,
1956. The Company has used the following rates to provide depreciation
on its fixed assets.
Rates (SLM)
Buildings - 1.63%
Plant and equipment - 10.34%
Furniture and fixtures - 6.33%
Vehicles - 9.50%
Office Equipments - 16.21%
e. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f. Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that (i) the Company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
g. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long- term investments. Investments in subsidiaries are
classified as long-term investments and are stated at cost, i. Employee
benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The Company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
j. Revenue Recognition
Revenues from Business Process Outsourcing (BPO) / Information
Technology Enabled Services are recognized as the related services are
rendered and recorded at relevant exchange rate prevailing on the date
of transaction. Revenue from Infrastructure activities are recognized
when the related work completed, k. Taxes on Income
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the Company
operates.
Deferred income taxes reflect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The Company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the Company will pay normal income tax during the
specified period, i.e., the period for which MAT credit is allowed to
be carried forward. In the year in which the Company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit Entitlement."
The Company reviews the "MAT credit entitlement" asset at each
reporting date and writes down the asset to the extent the Company does
not have convincing evidence that it will pay normal tax during the
specified period.
I. Foreign Currency Transactions
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account.
m. Borrowing Cost
Borrowing cost that are attributable to the acquisition or construction
of qualifying assets are capitalized as part of the cost of such
assets. A qualifying assets is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to Revenue,
n. Service Tax
Service Tax is recognized on the basis of both, payments made in
respect of service taken from professional and others and service
rendered by the company for BPO related service, where applicable.
o. Segment reporting
Identification of segments
The Company's operating businesses are organized and managed separately
according to the nature of business and services provided, with each
segment representing a strategic business unit.
Allocation of common costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment.
Segment accounting policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
p. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares, q.
Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation, r.
Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability.
s. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short- term investments with an
original maturity of three months or less.
Mar 31, 2011
1) Basis of Preparation of Financial Statement
The financial statements are prepared under the historical cost
convention and the requirements of the Companies Act, 1956. Company
generally follows the mercantile system of accounting and recognizes
income & expenditure on accrual basis unless otherwise stated.
2) Use of estimates
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of the income and expenses during the year. Difference
between the actual result and estimates are recognized in the period in
which the results are known.
3) Fixed Assets
Fixed Assets are stated at cost, less accumulated depreciation and
impairment, if any. Costs include all expenses incurred to bring the
assets to its present location and condition. Direct costs are
capitalized till the fixed assets are ready to use.
4) Depreciation
Depreciation is provided on straight line basis at the rates specified
in schedule XIV to the Companies Act, 1956. Depreciation on additions
to Fixed Assets is provided on pro-rata basis for the number of days
the asset has been put to use.
5) Impairment
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
6) Investments
Investments in subsidiaries are classified as long-term investments and
are stated at cost.
Adjustments are made for diminution if any, in value of the investments
that is other than temporary in nature in the opinion of the
management.
7) Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
8) Revenue Recognition
Revenues from Business Process Outsourcing (BPO) / Information
Technology Enabled Services are recognized as the related services are
rendered and recorded at relevant exchange rate prevailing on the date
of transaction.
9) Taxes on Income
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the consideration of prudence, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
10) Foreign Currency Transactions
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account.
11) Borrowing Cost
Borrowing cost that are attributable to the acquisition or construction
of qualifying assets are capitalized as part of the cost of such
assets. A qualifying assets is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to Revenue.
12) Earning Per Share
Basic Earning per Share is calculated by dividing the net profit for
the year attributable to the equity shareholders by the weighted
average of the number of equity shares outstanding during the year.
13) Cash Flow Statement
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard 3 on Cash Flow Statements and presents the cash
flows by operating, investing and financing activities of the company.
Cash and cash equivalents presented in the Cash Flow Statement consist
of cash on hand and fixed deposits with banks.
14) Prior Period Items
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Prior Period Adjustment Account."
15) Miscellaneous Expenditure
One-fifth of preliminary expenses, pre operative expenses deferred
revenue expenses and initial public offer expenses are charged to
Profit & Loss Account
Mar 31, 2010
A) Basis of Preparation of Financial Statement
The financial statements are prepared under the historical cost
convention and the requirements of the Companies Act, 1956. Company
generally follows the mercantile system of accounting and recognizes
income & expenditure on accrual basis unless otherwise stated.
b) Use of estimates
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of the income and expenses during the year. Difference
between the actual result and estimates are recognized in the period in
which the results are known.
c) Fixed Assets
Fixed Assets are stated at cost, less accumulated depreciation and
impairment, if any. Costs include all expenses incurred to bring the
assets to its present location and condition. Direct costs are
capitalized till the fixed assets are ready to use.
d) Depreciation
Depreciation is provided on straight line basis at the rates specified
in schedule XIV to the Companies Act, 1956. Depreciation on additions
to Fixed Assets is provided on pro-rata basis for the number of days
the asset has been put to use.
e) Impairment
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of asset exceeds
the recoverable amount. An impairment loss is charged to the profit and
loss account in the year in which asset is identified as impaired.
f) Investments
Investments in subsidiaries are classified as long-term investments and
are stated at cost. Adjustments are made for diminution if any, in
value of the investments that is other than temporary in nature in the
opinion of the management.
As at 31st March 2010, the Company had an aggregate investment of Rs
13,65,25,546/- in its subsidiary which include Excel Info FZE, UAE.
Management believes that these investments are long term in nature and
the subsidiary is expected to do profitable business in future.
Accordingly, management does not consider that provision for diminution
in the value of its investments in the said subsidiary.
g) Employee benefits
As per the practice consistently followed, leave encashment is
accounted for as and when paid. In view of the management, most of the
employees have already utilized balance of leave in their account
therefore there is no material amount of leave encashment payable at
the year end. Since, none of the employees have put in specified period
of service; no provision for gratuity is made.
The company makes provident fund contribution to defined contribution
plans. These comprise defined contribution to Employees Provident Fund
and are reported as expenses during the period under which the
qualifying employee performs the service.
h) Revenue Recognition
Revenues from Business Process Outsourcing (BPO) / Information
Technology Enabled Services are recognized as the related services are
rendered and recorded at relevant exchange rate prevailing on the date
of transaction.
i) Taxes on Income
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the consideration of prudence, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
j) Foreign Currency Transactions
Income and Expenses in foreign currencies are converted at exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at the exchange rate prevailing
on the balance sheet date. Exchange difference gain/(loss) is
recognized in the profit and loss account. Premium or discount on
forward exchange contracts are amortized and recognized in the profit
and loss account.
k) Borrowing Cost
Borrowing cost that are attributable to the acquisition or construction
of qualifying assets are capitalized as part of the cost of such
assets. A qualifying assets is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to Revenue.
l) Earning Per Share
Basic Earning per Share is calculated by dividing the net profit for
the year attributable to the equity shareholders by the weighted
average of the number of equity shares outstanding during the year.
m) Prior Period Items
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Prior Period Adjustment Account."
n) Miscellaneous Expenditure
One-fifth of preliminary expenses, pre operative expenses, deferred
revenue expenses and initial public offer expenses are charged to
Profit & Loss Account.
Mar 31, 2009
Not Available
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