| 1 CONTINGENT LIABILITIES
As at As at
31-Mar-15 31-Mar-13
Rs. Rs.
1.1 Guarantees given on behalf Nil NIL
of other companies
1.2 Claims against the company
not acknowledged as debt in
respect of certain tax matters
which are subjudice
a) Income Tax ( net of deposit) 59,220,145 59,220,145
b) Sales Tax / VAT 0 648,228
c) Service Tax 3,552,977 3,552,977
25 OTHER FINANCIAL INFORMATION
31.03.2015 31.03.2014
Rs. Rs.
2.1 Outstanding Bank Guarantees 0 1,480,298
2.2 Reimbursement of travel expenses to Directors 0 0
2.3 Sitting fees paid / payable to Directors 0 50,000
3 GOING CONCERN
Company has accumulated losses and its net worth has been fully eroded,
the company has incurred a net loss during the current and previous
year(s) and, the company's current liabilities exceeded its current
assets as at the balance sheet date. Company is not pursuing it's main
object of software development and is generating only income from
letting out premises owned by it, also the subsidiaries also has
stopped their operations. The above factors indicate the existence of a
material uncertainty that may cast significant doubt about the
company's ability to continue as a going concern.
4 DISCONTINUING OPERATIONS
Though there exists material uncertainty that may cast significant
doubt about the Company's ability to continue as a going concern, items
falling under the fixed asset category, i.e., building and attached
furniture and fixtures, which is used for letting out and the company
is deriving the rental income, Company is not accounting the Fixed
assets, other than building, at Net realisable value as required by
Accounting Standard 24, Discontinuing Operations and disclosure of
other matters is not made.
5 BASIS FOR PREPARATION
Financial statements have been prepared under the historical cost
convention and comply with accounting standards in all material
respects.
6 IMPAIRMENT OF ASSETS
a) Impairment of Investment
Both these companies and their subsidiaries have stopped all their
activities CSWL Inc has started liquidation proceedings
b) Impairment of Fixed Assets
As per estimation of management no impairment of Fixed Assets was
considered during the year 2014-15, since impairment losses on Fixed
Assets were provided and recognized in the previous years. However,
depreciation rates have been changed to amortise the depreciable value
over the useful life as set out in Schedule II of Companies Act, 2013,
equally, as the holding company is expected to use the same for letting
out, which will be in tune with Schedule II of Companies Act 2013.
Depreciation is charged on building based on the estimated remaining
life period of 25 years from the date of valuation on 17-01-2013 by the
approved valuer. Useful life of various assets is as given below
estimating a residual value of 1% on original cost at the end of useful
life.
item Useful life
Furniture & Fitiings 10 years
Office Equipment 5 Years
Total additional depreciation charged to the profit and loss Account is
Rs. 5,864,486/-.
7 TRADE RECEIVABLES & PAYABLES
Since the company has fully stopped its principle business being
Software Development and its sales and service and company have no
trade receivables during the year. Trade payables of Rs.
402,285,907/-represents net payables to its wholly owned overseas
subsidiary CSWL Inc.
Payables to Aspire Communications P Ltd and Aspire Peripherals P Ltd,
wholly owned subsidiary of the company amounting to Rs. 25,345,879/-
has been written back to Profit and loss account as Exceptional item as
these companies have stopped all it activities.
During the previous year 2013-14 the company reassessed its Trade
receivables and payables accumulated over the years and restated them
on a realistic basis. On the basis of above, net write off of bad
Debts, other receivables, old Deposits and payables were written off
for Rs. 26,910,239/- against the existing provision. Excess Provision
of Rs. 22,705,294/- was written back to profit and Loss Account.
8 RENT RECEIVABLE AND PROVISION
Rent receivable is amounting to Rs. 55,695,442/- (PY 49,707,130/- /-)
against which a provision of Rs. 41,043,738/- being receivables
outstanding for more than 270 days has been made.
9 TRANSFER PRICING
The study of international transactions entered into by the Company
with its overseas associates regarding the extent of compliance to the
transfer pricing regulations of the Income Tax Act, 1961 is yet to be
completed and the impact, if any, arising out of such study has not
been recognized in these accounts pending completion of the study.
10 QUANTITATIVE DETAILS
Not applicable since the Company is engaged the business of letting out
of Business premises; quantitative details etc., as required under the
Companies Act, 1956 are not furnished
11 VALUE OF IMPORTS ON CIF BASIS
Capital Goods Nil Nil
12 FOREIGN CURRENCY TRANSACTION
Foreign currency transactions including expenses incurred on Trading /
Non Trading Overseas offices and revenue accounts of onsite offices are
accounted at the exchange rates ruling on the date of transaction.
At the year end all monetary assets and liabilities denominated in
foreign currency other than investments are restated at the closing
exchange rates. Exchange differences arising out of actual payments /
realisations and from the year end restatement referred to above are
reckoned in the profit and loss account.
13 SEGMENT REPORTING
13.1 The company has stopped entirely its principal activity of
providing software development and its sales and services and hence
current year there is no segment wise reporting, Previously the
Company's operations predominantly related to providing development of
software to customers globally operating in various industry segments.
Accordingly, software product and development revenues along industry
classes comprise the primary basis of segmental information set out in
these financial statements. The accounting policies adopted for segment
reporting are in line with the accounting policies of the Company.
Revenue and expenses have been identified to segments on the basis of
the above primary segment information viz industry segments. Revenue
and expenses, which relate to the enterprise as a whole and are not
allocable to the segments on a reasonable basis, have been included
under unallocable corporate income/ expenses.
The Industry segments of the Company consist of: Technology Solutions
(TS), Enterprise Solutions (ES) and Infrastructure Management Services
(IMS). However since the sale of its OPD division company is having
Enterprise solution only.
14 DISCLOSURE UNDER AS 15 REVISED ON EMPLOYEE BENEFITS
The Company has only one employee for whom PF is being provided as per
rules. Gratuity of Rs.117,740/- is provided on the basis of Actuarial
Valuation. Based on company's policy no provision is being made for
leave encashment.
15 RELATED PARTY DISCLOSURE
15.1 Names of related parties and description of relationship
a) List of related parties
where control Exists
Companies Having Substantial Interest Kemoil Limited, Hong Kong
Subsidiaries California Software
Laboratories Inc., USA
(CSWL) Aspire
Communications Private
Limited, Mysore
Subsidiary of California Software Healthnet International
Inc., USA
Laboratories Inc. Aspiresoft Corporation,
USA
Subsidiary of Aspire
Communications Private Limited Aspire Peripherals P Ltd,
Mysore
Subsidiary of Healthnet
International Inc International Innovations
Inc., USA
b) Key management personnel Mr.Bhavesh Rameshlal
Chauhan
c) Other Group Companies
Fellow Subsidiaries of Kemoil Limited Chemoil International Pte.
Ltd., Singapore
Chemoil Energy Limited
Singapore
Chemoil Europe B.V., The
Netherlands
Subsidiaries of the abovementioned
fellow subsidiaries Chemoil Advanced Management
Services Pvt. Ltd., India
Chemoli Information Services
Pvt Ltd
Inatech InfoSolutions
Private Limited, Bangalore
Inatech Solutions Ltd, UK
Inatech Solutions Egypt, SAE
Inatech ME
Inatech Solutions Europe Ltd
Glencore India Private
Limited
16 As at March 31, 2015 there is no interest payable to Micro and Small
Enterprises as defined under the Micro Small and Medium Enterprises
Development Act, 2006. This information and that disclosed under
schedule 11 have been determined to the extent such parties have been
identified on the basis of information available with the Company
17 Except in respect of the following there are no statutory dues of
Customs Duty, Excise Duty, Cess, Wealth Tax and Income Tax, which have
not been deposited on account of a dispute
S. Name of the Statute Nature of the dues
No.
1. Income Tax Act, 1961 Income Tax ( A.yr 1997-98)
2. Income Tax Act, 1961 Income Tax ( A.yr 2000-01)
3. Income Tax Act, 1961 Income Tax ( A.yr 2001-02)
4. Income Tax Act, 1961 Income Tax ( A.yr 2002-03)
5. Income Tax Act, 1961 Income Tax ( A.yr 2003-04)
6. Income Tax Act, 1961 Income Tax ( A.yr 2004-05)
7. Income Tax Act, 1961 Income Tax ( A.yr 2005-06)
8. Income Tax Act, 1961 Income Tax ( A.yr 2006-07)
9. Income Tax Act, 1961 Income Tax & TDS ( A.yr 2007-08)
10. Income Tax Act, 1961 Income Tax ( A.yr 2008-09)
11. Income Tax Act, 1961 Income Tax ( A.yr 2011-12)
12 Income Tax Act, 1961 Income Tax ( A.yr 2009-10)
13 Income Tax Act, 1961 Income tax 2010-11
Name of the Statute Amount Rs. Forum where dispute is pending
Income Tax Act, 1961 11,27,394 Assessing Officer
Income Tax Act, 1961 22,84,617 Assessing Officer
Income Tax Act, 1961 15,24,090 Madras High Court
Income Tax Act, 1961 33,56,300 Madras High Court
Income Tax Act, 1961 12,42,460 Madras High Court
Income Tax Act, 1961 56,76,083 Commissioner Appeals
Income Tax Act, 1961 10,10,258 Commissioner Appeals
Income Tax Act, 1961 22,10,000 Commissioner Appeals
Income Tax Act, 1961 12,704,349 Tribunal
Income Tax Act, 1961 4,966,000
Income Tax Act, 1961 48,187
Income Tax Act, 1961 7,386,310 Commissioner of IT
Income Tax Act, 1961 15,684,097 Transfer Pricing
Total IT demand 592,20,145
Service Tax 35,52,977 * Joint Commissionerl
Commissioner of ST
* Based on order dated 27/06/2014 of Joint commissioner of Service tax,
Chennai . Company has filed appeal against this order.
18. REGROUPING AND REARRANGING OF FIGURES
The previous year figures have been regrouped, rearranged/ amended
wherever necessary to conform to the current year's classification.
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