Saksoft Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2022

(e) Employee Stock option plans (''ESOP'')

ESOP 2006 Plan

The ESOP 2006 Plan was introduced by the Company in 2006 under which the Company grants options from time to time to employees of the Company and its subsidiaries. This Plan was approved by the Board of Directors in January 2006 and by the shareholders in February 2006. The Plan complies with Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and is administered by the Saksoft Employees Welfare Trust (''the Trust) through the Nomination and Remuneration Committee. The Trust purchased the shares of the Company using the proceeds of loans obtained from the Company and administers the allotment of shares to employees and other related matters. The eligible employees exercise the options under the terms of the Plan at an exercise price, which equals the fair value on the date of the grant, until which the shares are held by the Trust.

The Company had allotted 582,460 equity shares of Rs.10 each to the Trust to give effect to the ESOP Plan. As at the balance sheet date, the employees have exercised 50,000 options under this Plan and accordingly, 532,460 equity shares of Rs.10 each represent shares held by the Trust. During the year no options have been granted or outstanding under this plan.

ESOP 2009 Plan

The ESOP 2009 Plan was introduced by the Company with the consent of the shareholders in 2009 under which the Company grants options from time to time to employees of the Company and its subsidiaries. Further the scheme was amended at the AGM held on 26th September 2014 to increase the exercise period from 5 to 10 years. This Plan complies with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014. The plan considers an aggregate of

1.500.000 options to be granted and exercised in accordance with the ESOP 2009 plan as approved by the Nomination and Remuneration Committee. The outstanding options available for exercise under the ESOP 2009 as on 31st March 2022 is

426.000 options, of which 201,000 options being unvested.

22 Additional notes (contd.)

During the year, the Board of Directors have allotted 49,000 equity shares consequent to the exercise of options by certain eligible employees of the Company who were granted options on 25th May 2015 at grant price of Rs.151.70 per option (25,000 equity shares), on 8th July 2014 at a grant price of Rs.93.00 per option (10,000 equity shares), on 26th September 2014 at a grant price of Rs.138.70 per option (9,000 equity shares) and on 27th May 2020 at a grant price of Rs.138.75 per option (5,000 equity shares) under ESOP 2009 plan. Subsequent to the exercise, the listing and trading approval was obtained from National Stock Exchange for 49000 shares. The paid up share capital of the Company after allotment of 49,000 equity shares stands at 10,539,000 Equity Shares as of 31st March 2022. During the year no options have been granted under this plan.

Trade receivables are amounts billed to the customer on satisfaction of performance obligation. Unbilled revenue represents revenues in excess of efforts billed on software development and service contracts as at the end of the reporting period and is included as part of Other Financial Assets.

(g) Dues to Micro and small enterprises

The Company has initiated the process of obtaining confirmation from suppliers who have registered under the Micro, Small and Medium Enterprises Development Act, 2006.

Billing in excess of revenue are classified as unearned revenue. Balances of trade receivables, unbilled revenue and unearned income are available in the relevant Schedules of the financial statements. Trade receivables and unbilled revenue are net of provision in the Balance Sheet.

Information about performance obligations

Performance obligations estimates are subject to change and are affected by several factors including change in scope of contracts, its termination, foreign currency adjustments and any other items influencing the measurement, collectability and performance of the contract.

Disclosure relating to remaining performance obligation across all live fixed bid price contracts relate to require the aggregate amounts of transaction price yet to be recognized as at the reporting date and expected timelines to recognize these amounts. In view of the fact that all outstanding contracts have an original expected duration for completion of less than a year no disclosure is warranted.

(h) Dividend

The Board of Directors had recommended interim dividend during the financial year 2021-22 amounting to Rs 3.00 per equity share. This has resulted in a cash flow of Rs 31.62 Million.

The Board of Directors at its meeting held on 26th May 2022 had further recommended a final dividend of 30 % (Rs 3.00 per equity share of Rs.10 face value fully paid up) subject to approval of the shareholders at The Annual General Meeting. The outflow on account of the final dividend is expected to be Rs 31.62 Million.

(i) Disclosure under Ind AS 115

The entire revenue from operations for the year ended 31st March 2022 and 31st March 2021 related to revenue from software services.

Disaggregation of revenue:

Revenue earned by the company is disaggregated by its sources based on geographical location as disclosed in Note 24 (e) to the consolidated financial statements.

Information about contract balances

The company classifies the right to consideration as Trade receivables and unbilled revenue.

The Company is predominantly equity financed which is evident from the capital structure table above. The Company''s Risk Management Committee reviews the capital structure of the Company on an ongoing basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital.

The Management assessment of fair value of cash and short-term deposits, trade receivables and trade payables, bank overdrafts, and other current financial assets and liabilities approximate the carrying amounts largely due to the short-term maturities of these instruments

The Company''s derivative financial instruments consist of foreign currency forward exchange contracts. Fair values for derivative financial instruments are based on market observable inputs and are classified as Level 2. The most frequently applied valuation technique include forward pricing model, using present value calculations.

Fair Value Measurement Hierarchy

Foreign exchange forward contracts have been measured using Level 2 (Significant observable inputs) - Fair value measurement hierarchy. Balances as at March 31,2022 and March 31,2021 amounts to Rs.3.67 million and Rs.0.11 million respectively. There have been no transfers between Level 1 and Level 2 during the year.

Foreign Exchange Forward Contracts

The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities and forecast cash flows denominated in foreign currency. The use of derivatives to hedge foreign currency forecast cash flows is governed by the Company''s strategy, which provides principles on the use of such forward contracts and currency options consistent with the Company''s Risk Management Policy. The counterparty in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as insignificant. The Company has entered into a series of foreign exchange forward contracts that are designated as cash flow hedges. The Company does not use forward covers and currency options for speculative purposes.

(l) Financial Risk Management

The Company is exposed to a variety of financial risks; credit risk, liquidity risk and market risk,viz; foreign currency risk and interest rate risk. The Company has a risk management policy to manage & mitigate these risks.

The Company''s risk management policy aims to reduce volatility in financial statements and aims to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The Board of Directors reviews and agrees policies for managing each of these risks as summarized below

Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to the financial instrument fails to meet its contractual obligations and arises principally from the Company''s receivables from customers and investment securities.

Financial instruments that potentially subject the Company to concentration of credit risk consists of trade receivables, investments, loans, cash and cash equivalents, other balances with banks and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. By their nature, all such financial assets involve risks, including the credit risk of non-performance by counterparties.

The Company periodically assesses the credit quality of the counterparties by taking into account their financial position, past experience, ageing of accounts receivables and any other factor determined by individual characteristic of the counterparty.

Trade receivables:

The Company has used a practical expedient by computing the lifetime expected credit loss allowance for trade receivables based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information. The Company''s exposure to customers is diversified. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.

Liquidity Risk:

Liquidity risk is the risk that the Company will not be able to encounter its financial obligations associated with financial liabilities as they become due. The Company manages its liquidity risk by ensuring, as far as possible, to maintain sufficient liquid funds to meet its liabilities on the due date. The Company consistently generates sufficient cash flows from operations (with adequate reserves) and has access to multiple sources of funding (banking facilities and loans from promoter company) to meet the financial obligations and maintain adequate liquidity for use.

Foreign Currency Risk:

The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit or Loss and Other Comprehensive Income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the Company.

The Company''s exchange risk arises from its foreign currency revenues (primarily in U.S. Dollars, British Pound Sterling / Euros and Singapore Dollars). A significant portion of the Company''s revenue are in these foreign currencies, while a significant portion of its corresponding costs are in Indian Rupee. As a result, if the value of Indian rupee appreciates relative to these foreign currencies, the Company''s revenue measured in Indian Rupee may decrease and vice versa. The exchange rate between the Indian rupee and these foreign currencies has changed substantiallyin recent periods and may continue to fluctuate substantially in the future.

The Company periodically determines its strategy to mitigate foreign currency risk. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in line with its risk management policies.

The following table presents foreign currency risk from non-derivative financial instruments as at each reporting period:

Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.

Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates arises on Company''s debt obligations with floating interest rate.

Note 1: Increase in profits and reduction of debt has resulted in improved Debt Equity ratio .

Note 2: Increase in profits and reduced interest on account of debt reduction has resulted in improvement in the ratio . Note 3: The increase in the ration is on account of increased purchase of services to meet the increased sales .

Note 4: Increase in sales with no significant increase in capital has resulted in improvement in the ratio .

Note 5: Increase in profits and reduction of debt has resulted in improvement in the ratio .

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Mar 31, 2018

1. Company Overview

Saksoft Limited(''the Company’) is a Public Limited Company incorporated and domiciled in India listed with National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange (BSE) and has its registered office at Chennai, Tami Nadu, India.

The Company is primarily engaged in providing Information technology services, viz; Business Intelligence, Testing, Digital, Cloud, Mobility, IoT, Big Data& Software Solutions across Industries and Verticals. Saksoft provides end-to-end business solutions that leverage technology and enables its clients to enhance business performance. The Company provides the entire gamut of software solutions including IM Strategy, Consulting, Design, Custom Application development, RaaMS, BI & DW Services, Systems integration, Implementation, Assurance and Placement services.

The financial statements were authorized for issue by the Company’s Board of Directors on 30th May 2018.

# 4,50,000 preference shares have been redeemed by SSL during the financial year 2016-17 and 3,00,000 shares have been redeemed by SSL during the financial year 2017-18

@ Saksoft GmbH, Germany and Saksoft FR (France) have been liquidated during the financial year 2016-17.

* During the financial year 2017-18 the Company acquied 2400 shares of Threesixty Logica Testing Services Pvt. Ltd. making it a Wholly Owned Subsidiary

(C) Rights attached to Equity shares

Each share entitles to a pari passu right to vote, to receive dividend and surplus at the time of liquidation

The future cash outflows on items 1 & 2 above are determinable only on receipt of the decision or judgment that is pending at various forums and authorities. The company does not expect the outcome of these proceedings to have an adverse material effect on the financial results.

The estimates of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. The expected return on plan assets is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

Sensitivity Analysis:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

e. Employee Stock option plans (‘ESOP'')

ESOP 2006 Plan

The ESOP 2006 Plan was introduced by the Company in 2006 under which the Company grants options from time to time to employees of the Company and its subsidiaries. This Plan was approved by the Board of Directors in January 2006 and by the shareholders in February 2006. The Plan complies with Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and is administered by the Saksoft Employees Welfare Trust (''the Trust) through the Nomination and Remuneration committee. The Trust purchased the shares of the Company using the proceeds of loans obtained from the Company and administers the allotment of shares to employees and other related matters. The eligible employees exercise the options under the terms of the Plan at an exercise price, which equals the fair value on the date of the grant, until which the shares are held by the Trust.

The Company had allotted 582,460 equity shares of Rs.10 each to the Trust to give effect to the ESOP Plan. As at the balance sheet date, the employees have exercised 50,000 options under this Plan and accordingly, 532,460 equity shares of Rs.10 each represent shares held by the Trust. During the year no options have been granted under this plan.

ESOP 2009 Plan

The ESOP 2009 Plan was introduced by the Company with the consent of the shareholders in 2009 under which the Company grants options from time to time to employees of the Company and its subsidiaries. Further the scheme was amended at the AGM held on 26th September 2014 to increase the exercise period from 5 to 10 years. This Plan complies with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014. The plan considers an aggregate of 1,000,000 options to be granted and exercised in accordance with the ESOP 2009 plan as approved by the Nomination and Remuneration Committee. The outstanding options available for exercise under the ESOP 2009 as on 31st March 2018 is 185,000 options, of which 75,000 options being unvested.

During the year, the Board of Directors have allotted 20,000 equity shares consequent to the exercise of options by certain eligible employees of the Company who were granted options on 3rd December 2010 at grant price of Rs.44.25 per option (10,000 equity shares) and on 8th July 2014 at a grant price of Rs.93.00 per option (10,000 equity shares) under ESOP 2009 plan. Subsequent to the exercise, the listing and trading approval was obtained from National Stock Exchange on 30th October 2017 for 20000 shares. The paid up share capital of the Company after allotment of 20,000 equity shares stands at 10,475,000 Equity Shares as of 31st March 2018. During the year no options have been granted under this plan.

g. Dues to Micro and small enterprises

The Company has initiated the process of obtaining confirmation from suppliers who have registered under the Micro, Small and Medium Enterprises Development Act, 2006.

The information required to be disclosed under the Micro, Small And Medium Enterprises Development Act,2006(''the MSMED Act") has been determined to the extent such parties have been identified on the basis of information received from such parties and available with the Company. There are no overdue to parties on account of principal amount and / or interest as disclosed below:

h. Dividend

The amount of per share dividend recognized as distributions to equity shareholders for the year ended March 31, 2018, year ended March 31, 2017 and March 31, 2016 was Rs.3.50, Rs.3.00 and Rs.3.00 respectively.

The Board of Directors at its meeting held on 26th May 2017 had recommended a dividend of 30% (Rs.3 per equity share of Rs.10 face value fully paid up). The proposal was approved by the shareholders at the Annual General Meeting held on 7th August 2017. This has resulted in a cash flow of Rs.33.38 million (including dividend distribution tax of Rs.2.01 million).

The Board of Directors in its meeting held on 30th May 2018 have recommended a final dividend of Rs.3.50 per equity share of par value of Rs.10/- each which is subject to approval of shareholders. If approved, this would result in a cash outflow of approximately Rs.36.66 million plus applicable dividend distribution tax.

i. Capital Management

The Company manages its capital to ensure that it will be able to continue as going concerns while maximizing the return to stakeholders through the optimisation of the debt and equity balance. The Company’s policy is to maintain a strong capital base so as to maintain investors, creditors and market confidence to sustain future development of the business.

The Company is predominantly equity fnanced which is evident from the capital structure table above. The Company’s risk management committee reviews the capital structure of the Company on an ongoing basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital.

The Management assessed the fair value of cash and short-term deposits, trade receivables and trade payables, book overdrafts, and other current financial assets and liabilities approximate the carrying amounts largely due to the short-term maturities of these instruments

The Company’s derivative financial instruments consist of foreign currency forward exchange contracts. Fair values for derivative financial instruments are based on market observable inputs and are classified as Level 2. The most frequently applied valuation technique include forward pricing model, using present value calculations.

Fair Value Measurement Hierarchy

Foreign exchange forward contracts have been measured using Level 2 (Significant observable inputs) - Fair value measurement hierarchy. Balances as at March 31, 2018, March 31, 2017 and April 1, 2016 amounts to Rs.0.70 million, Rs.5.82 million and Rs.3.26 million respectively. There have been no transfers between Level 1 and Level 2 during the year.

Foreign Exchange Forward Contracts

The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities and forecast cash flows denominated in foreign currency. The use of derivatives to hedge foreign currency forecast cash flows is governed by the Company’s strategy, which provides principles on the use of such forward contracts and currency options consistent with the Company’s Risk Management Policy. The counterparty in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as insignificant. The Company has entered into a series of foreign exchange forward contracts that are designated as cash flow hedges. The Company does not use forward covers and currency options for speculative purposes.

k. Financial Risk Management

The Company is exposed to a variety of financial risks; credit risk, liquidity risk and market risk, viz; foreign currency risk and interest rate risk. The Company has a risk management policy to manage & mitigate these risks.

The Company’s risk management policy aims to reduce volatility in financial statements and aims to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The Board of Directors reviews and agrees policies for managing each of these risks as summarized below

Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to the financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers and investment securities.

Financial instruments that potentially subject the Company to concentration of credit risk consists of trade receivables, investments, loans, cash and cash equivalents, other balances with banks and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. By their nature, all such financial assets involve risks, including the credit risk of non-performance by counterparties.

The Company periodically assesses the credit quality of the counterparties by taking into account their financial position, past experience, ageing of accounts receivables and any other factor determined by individual characteristic of the counterparty.

Trade receivables:

The Company has used a practical expedient by computing the lifetime expected credit loss allowance for trade receivables based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information. The Company’s exposure to customers is diversified. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.

Liquidity Risk:

Liquidity risk is the risk that the Company will not be able to encounter its financial obligations associated with financial liabilities as they become due. The Company manages its liquidity risk by ensuring, as far as possible, to maintain sufficient liquid funds to meet its liabilities on the due date. The Company consistently generates sufficient cash flows from operations (with adequate reserves) and has access to multiple sources of funding (banking facilities and loans from promoter company) to meet the financial obligations and maintain adequate liquidity for use.

The processes and policies related to such risks are overseen by Senior Management.

Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company’s exposure to market risk is primarily on account of foreign currency exchange rate risk.

Foreign Currency Risk:

The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit or Loss and Other Comprehensive Income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the Company.

The Company’s exchange risk arises from its foreign currency revenues (primarily in U.S. Dollars, British Pound Sterling / Euros and Singapore Dollars). A significant portion of the Company’s revenue are in these foreign currencies, while a significant portion of its corresponding costs are in Indian Rupee. As a result, if the value of Indian rupee appreciates relative to these foreign currencies, the Company’s revenue measured in Indian Rupee may decrease and vice versa. The exchange rate between the Indian rupee and these foreign currencies has changed substantiallyin recent periods and may continue to fluctuate substantially in the future.

The Company periodically determines its strategy to mitigate foreign currency risk. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in line with its risk management policies.

Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates arises on Company’s debt obligations with floating interest rate.

l. Transition to Ind AS

These standalone financial statements of Saksoft Limited for the year ended 31st March 2018 have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as amended thereafter. For the purposes of transition to Ind AS, using April 1, 2016 as the transition date, the Company has followed the guidance prescribed in Ind AS 101 - First time adoption of Indian Accounting Standards.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 1 have been applied in preparing the standalone financial statements for the year ended March 31, 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance Sheet, Statement of Profit and Loss, is set out in Item C below. Exemptions on first time adoption of Ind AS availed with Ind AS 101 have been set out as below:

a) Exceptions from full retrospective application

Estimates exception: Upon an assessment of the estimates made under Indian GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by Indian GAAP

b) Exemptions availed on first time adoption of Ind AS Share-Based Payment:

The Company is encouraged, but not required, to apply Ind AS 102 Share-Based payment to equity instruments that vested before date of transition to Ind AS. The Company has elected to avail this exemption and therefore is exempted from fair valuation of equity instruments that vested before date of transition to Ind AS."

Investments in subsidiaries, joint ventures and associates:

The Company has elected to measure investment in subsidiaries, joint venture and associate at cost. Property, Plant and Equipment:

The Company has elected to measure items of property, plant and equipment and intangible assets at cost.

m. Corporate Social Responsibility (CSR) Expenditure:

(a) Gross amount required to be spent by the company during the year - Rs.2.15 million

(b) Amount spent during the year on:

Notes:

2. Under Ind AS, the liability for dividend is recognized in the period in which the obligation to pay is established. Under Previous GAAP a liability is recognized in the period to which the dividend relates, even though the dividend may be approved by the shareholders subsequent to the reporting date. Consequently, dividend payable under Ind AS is lower and retained earnings is higher.

3. Under Ind AS, derivative instruments are recognized at fair value through Other Comprehensive Income (FVTOCI) at each reporting period with changes in fair value recognized directly in Other Comprehensive Income. Under Previous GAAP only premium or discount on the derivative contracts were recognized in the Statement of Profit and Loss over the period of the derivative instrument. Consequently there has been a gain in the Other Comprehensive Income.

4. Under Ind AS lease payments under an operating lease shall be recognised as an expense on a straight-line basis over the lease term only when the the payments to the lessor are structured not to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases or there are no another systematic basis is more representative of the time pattern of the user’s benefit. Under Previous GAAP lease payments under an operating lease shall be recognised as an expense on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the user’s benefit. Consequently the increase in lease payments were in line with the general inflation and hence did not require straight lining of rental expenses and the Provision in the books towards accounting of Rent Straight Lining has been reversed resulting in increase in rental expenses for the previous year and reversal of Provision for rent straight lining in the books.

5. Under Previous GAAP actuarial gains and losses were recognized in the Statement of Profit and Loss. Under Ind AS, the actuarial gains and losses form part of the remeasurement of the net defined benefit liability / asset which is recognized in Other Comprehensive Income.

6. Under Ind AS, the Compensation cost of employee share based payments needs to be measured based on the grant-date fair value of the equity instruments issued. Under Previous GAAP Cost of employee share based payment had the option to be measures based on the grant date fair value or intrinsic value of the equity instruments issued. Consequently the expenses in respect of the above share based payment schemes is recognized over the vesting period in the Statement of Profit and Loss with a corresponding adjustment to the share based payment reserve, a component of equity.

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Mar 31, 2015

Note 1: Additional notes a. Contingent Liabilities

As at As at March 31,2015 March 31,2014

1. Income-tax matters 36.15 27.97

2. Service-tax matters 32.61 32.61

3. Guarantee given to Banks to facilitate Credit to Subsidiary Company 125.06 -

The future cash outflows on items 1 & 2 above are determinable only on receipt of the decision or judgment that is pending at various forums and authorities. The company does not expect the outcome of these proceedings to have an adverse material effect on the financial results.

e. Related party disclosures

Enterprises in which key management personnel exercise significant influence :

Sak Industries Private Limited

Sak Industries Inc

Sak Abrasives Inc

Sakserve Private Limited

Saksoft Employees Welfare Trust

Saksoft Employees Gratuity Trust

Sonnet Trade & Investments Private Limited.

Sak Industries Pte Ltd

Subsidiaries and step down subsidiaries and Joint Venture :

Saksoft Inc, USA

Saksoft Pte Ltd, Singapore

Saksoft GmbH, Germany

Saksoft Solutions Limited, UK

Acuma Solutions Limited, UK

Acuma Software Limited, UK

Electronic Data Professionals Inc, USA

Saksoft FR SARL, France

ThreeSixtyLogica Testing Services Pvt Ltd, India

ThreeSixtyLogica Testing Services Inc, USA

Key management personnel :

Mr Aditya Krishna - Managing Director

Mr Niraj Kumar Ganeriwal-CFO

Mr Narayan S-Company Secretary(Resigned on 4th Nov 2014)

Mr Vivekanandan Babu- Company Secretary

Relatives of Key Managerial Personnel :

Ms Kanika Krishna - Director

Ms Avantika Krishna - Employee

h. Employee Stock option plans (''ESOP'')

ESOP 2006 Plan

The ESOP 2006 Plan was introduced by the Company in 2006 under which the Company grants options from time to time to employees of the Company and its subsidiaries. This Plan was approved by the Board of Directors in January 2006 and by the shareholders in February 2006. The Plan issued in accordance with Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, is administered by the Saksoft Employees Welfare Trust (''the Trust) through the compensation committee. The Trust purchased the shares of the Company using the proceeds of loans obtained from the Company and administers the allotment of shares to employees and other related matters. The eligible employees exercise the options under the terms of the Plan at an exercise price, which equals the fair value on the date of the grant, until which the shares are held by the Trust.

The Company has allotted 582,460 equity shares of H10 each to the Trust to give effect to the ESOP Plan. As at the balance sheet date, the employees have exercised 27,500 options under this Plan and accordingly 554,960 equity shares of H10 each represent shares held by the Trust. During the year no options have been granted under this plan.

The details of options granted under this ESOP 2006 plan are:

ESOP 2009 Plan

The ESOP 2009 Plan was introduced by the Company in 2009 under which the Company grants options from time to time to employees of the Company and its subsidiaries. This Plan issued in accordance with the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 received the consent of the shareholders in December 2009. Further the scheme was amended at the AGM held on 26th September 20l4to increase the exercise period from 5 to 10 years.

The plan considers an aggregate of 1,000,000 options to be vested and exercised in accordance with the ESOP 2009 plan as approved by the Nomination and Remuneration Committee. The outstanding options available for exercise under the ESOP 2009 as on 31st March 2015 is 250,000 options.

During the year the Board of Directors have allotted 125,000 equity shares consequent to the exercise of options by certain eligible employees of the Company who were granted options on 3rd December 2010 at grant price of Rs.44.25 per option under ESOP 2009 plan. Subsequent to the exercise, the listing and trading approval was obtained from National Stock Exchange on 24th July 2014 for 95,000 shares and 24th December 2014 for 30,000 shares. The paid up share capital of the Company after allotment of 125,000 equity shares stands at 10,360,000 Equity Shares as of 31st March 2015

Apart from the above allotment, during the year the Nomination and Remuneration Committee has granted to eligible employees of Saksoft Limited & Subsidiary 50,000 options on 8th July 2014 at a grant price of Rs.93/- and 100,000 options on 26th September 2014 at a grant price of Rs. 138.70/-.

The details of the ESOP 2009 Plan are:

Notes forming part of the Financial Statements for the year ended 31 March 2015

(All amounts are in Indian rupees millions, except share data and as otherwise stated)

j. Dues to Micro and small enterprises

The Company has initiated the process of obtaining confirmation from suppliers who have registered under the Micro, Small and Medium Enterprises Development Act, 2006. Based on the information available with the company there is no amount outstanding as on 31.03.2015. There are no overdue principle amounts and therefore no interest is paid or payable.

k. The company has adopted useful lives of fixed assets in line with the Companies Act 2013 with effect from 1st April 2014 for providing depreciation. The depreciation for the year ended is higher by Rs.0.77 million respectively with consequential effect on Profit Before Tax by this amount. The amount of depreciation charged to retained earnings is Rs.0.49 million.

l. Prior year figures have been regrouped, wherever necessary to conform to the current year''s classification.

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Mar 31, 2014

Background

Saksoft Limited (''Saksoft'' or ''the Company'') is an Information Technology Company. Saksoft provides end-to-end business solutions that leverage technology and enables its clients to enhance business performance. The Company provides the entire gamut of software solutions including consulting, design, development, re-engineering, systems integration, implementation and testing.

1. Additional notes:

a. Scheme of Amalgamation

A) Disclosure in respect of Amalgamation in accordance with Accounting Standard (AS) 14 - Accounting for Amalgamation.

a) Names and general nature of Business of the Amalgamating Companies:

Names:

Transferor Company - Synetairos Technologies Limited

Transferee Company - Saksoft Limited

General nature of Business:

Transferor Company - Development and maintenance of computing software

Transferee Company - Analysis, design, development and implementation of computer software.

b) Effective date of Amalgamation for accounting purposes : 01-04-2013

c) Method of Accounting used to reflect Amalgamation : Pooling of Interest Method

d) Particulars of the Scheme sanctioned

i) The Authorised Share Capital of the Transferee Company is increased by transfer of the Authorised Share

Capital of the Transferor Company aggregating Rs. 1 million, comprising of 100,000 Equity Shares of Rs. 10/- each.

ii) Since the Transferor Company is a wholly owned subsidiary of the Transferee Company, shares held by the Transferee Company along with nominee in the Transferor Company shall be cancelled and extinguished. Accordingly there will be no issue and allotment of equity shares by the Transferee Company to the shareholders of the Transferor Company.

iii) The Value of all assets and liabilities of the Transferor Company, as on the appointed date, at their respective book values vest with the Transferee Company.

iv) The Inter-Corporate deposits/loans and advances, receivables/payables outstanding as on the Appointed date between the Transferee Company and Transferor Company shall stand cancelled.

v) Treatment of difference between the share capital of Transferor Company and Book value of investment in the books of the Transferee Company:

Book Value of Investment in Transferee Company Rs. 24,103,768

Less : Share Capital of Transferor Company Rs. 643,410

Difference adjusted against Surplus in statement of Profit & Loss and General Reserve. Rs. 23,460,358

vi) In terms of the Scheme the Transferor Company continued the Operations as Trustee of Transferee Company. The results of such operations have been duly incorporated in the accounts of the Transferee Company.

vii) The Scheme of Amalgamation of Transferor Company with Transferee Company was sanctioned by the Hon''ble High Court of Madras, vide its Order dated 17th July 2014 and accordingly these accounts have been prepared giving effect to the Scheme of Amalgamation.

b. Revision of Accounts

The Financial Statements for the year ended 31st March 2014 approved by the Board of Directors in their meeting held on 26th May 2014 and reported upon by the statutory auditors, have been revised to give effect to the order of the Hon''ble High Court of Madras, dated 17th July 2014 sanctioning the scheme of amalgamation of Synetairos Technologies Limited, a wholly owned subsidiary of the Company with itself. These revised Financial Statements have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 4th August 2014.

c. Contingent Liabilities

As at As at Particulars March 31, 2014 March 31, 2013

Income-tax matters 27.97 22.78

Service-tax matters 32.61 32.61

d. Employee Stock Option Plans (''ESOP'')

ESOP 2006 Plan

The ESOP 2006 Plan was introduced by the Company in 2006 under which the Company grants options from time to time to employees of the Company and its subsidiaries. This Plan was approved by the Board of Directors in January 2006 and by the shareholders in February 2006. The Plan issued in accordance with Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, is administered by the Saksoft Employees Welfare Trust (''the Trust) through the compensation committee. The Trust purchased the shares of the Company using the proceeds of loans obtained from the Company and administers the allotment of shares to employees and other related matters. The eligible employees exercise the options under the terms of the Plan at an exercise price, which equals the fair value on the date of the grant, until which the shares are held by the Trust.

The Company has allotted 582,460 equity shares of Rs.10 each to the Trust to give effect to the ESOP Plan. As at the balance sheet date, the employees have exercised 27,500 options under this Plan and accordingly, 554,960 equity shares of Rs 10 each represent shares held by the Trust. During the year no options have been granted under this plan.

ESOP 2009 Plan

The ESOP 2009 Plan was introduced by the Company in 2009 under which the Company grants options from time to time to employees of the Company and its subsidiaries. This Plan issued in accordance with the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 received the consent of the shareholders in December 2009.

The plan considers an aggregate of 5,00,000 options to be vested and exercised in accordance with the ESOP 2009 plan as approved by the Compensation Committee. The outstanding options available for vesting under the ESOP 2009 as on 31st March 2014 is 3,05,000 options.

During the year the Board of Directors have allotted 70,000 equity shares consequent to the exercise of options by certain eligible employees of the Company who were granted options on 3rd December 2010 at grant price of Rs. 42.50 per option under ESOP 2009 plan. Subsequent to the exercise, the listing and trading approval was obtained from National Stock Exchange on 24th March 2014. The paid up share capital of the Company after allotment of 70,000 equity shares stands at 1,02,35,000 Equity Shares as of 31st March 2014.

Apart from the above allotment, during the year the Compensation Committee has granted 50,000 options to an eligible employee of subsidiary of Saksoft Limited on 4th July 2013 at a grant price of Rs. 41.55/-.

g. Dues to Micro and small enterprises

The Company has initiated the process of obtaining confirmation from suppliers who have registered under the Micro, Small and Medium Enterprises Development Act, 2006. Based on the information available with the company there is no amount outstanding as on 31.03.2014. There are no overdue principle amounts and therefore no interest is paid or payable.

h. Current year''s figures are not comparable with previous year''s figures due to amalgamation of Synetairos Technologies Limited, a wholly owned subsidiary of the company with itself with effect from 1st April 2013.

j. Proposed Dividend

Proposed Dividend Includes a sum of Rs. 2,37,500 being the dividend on 95,000 shares allotted under ESOP 2009 Scheme after 31st March 2014 and before the book closure.

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Mar 31, 2013

1. Background

Saksof Limited (''Saksof'' or ''the Company'') is an Informaton technology Company. Saksof provides end-to-end business solutons that leverage technology and enables its clients to enhance business performance. The Company provides the entre gamut of sofware solutons including consultng, design, development, re-engineering, systems integraton, implementaton and testng.

2. Additonal notes

a. Contngent Liabilites As at As at

Partculars March 31, 2013 March 31, 2012

Income-tax maters 34.72 26.70

Service-tax maters 32.61 32.61

a. Related party disclosures

Enterprises in which key management personnel exercise signifcant infuence

Sak Industries Private Limited

Sak Abrasives Limited

Sakserve Private Limited

Saksof Limited Employees Welfare Trust

Saksof Limited Employees Gratuity Trust

Sonnet Investments Private Limited.

Sak Industries Pte Ltd

Subsidiaries and step down subsidiaries Saksof Inc, USA

Saksof Pte Ltd, Singapore Saksof GmbH, Germany Saksof Investments Private Limited, UK Acuma Solutons Limited, UK Acuma Sofware Limited, UK Electronic Data Professionals, USA Synetairos Technologies Limited Key Management Personnel Mr Aditya Krishna – Managing Director

b. Segment informaton

The Company''s operatons primarily relate to providing informaton technology (''IT'') services. Accordingly, the Company operates in a single segment, which represents the primary segment. Secondary segmental reportng is performed on the basis of the geographical locaton of customers.

c. Employee Stock Opton Plans (''ESOP'')

ESOP 2006 Plan

The ESOP 2006 Plan was introduced by the Company in 2006 under which the Company grants optons from tme to tme to employees of the Company and its subsidiaries. This Plan was approved by the Board of Directors in January 2006 and by the shareholders in February 2006. The Plan issued in accordance with Securites and Exchange Board of India (Employee Stock Opton Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, is administered by the Saksof Employees Welfare Trust (''the Trust) through the compensaton commitee. The Trust purchased the shares of the Company using the proceeds of loans obtained from the Company and administers the allotment of shares to employees and other related maters. The eligible employees exercise the optons under the terms of the Plan at an exercise price, which equals the fair value on the date of the grant, untl which the shares are held by the Trust.

The Company has alloted 582,460 equity shares of Rs.10 each to the Trust to give efect to the ESOP Plan. As at the balance sheet date, the employees have exercised 27,500 optons under this Plan and accordingly, 554,960 equity shares of Rs 10 each represent shares held by the Trust. During the year the Compensaton Commitee had granted 2,00,000 optons under ESOP 2006 at the rate of Rs.45.05 per opton.

ESOP 2009 Plan

The ESOP 2009 Plan was introduced by the Company during the year under which the Company grants optons from tme to tme to employees of the Company and its subsidiaries. This Plan issued in accordance with the Securites and Exchange Board of India (Employee Stock Opton Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 received the consent of the shareholders in December 2009.

The plan considers an aggregate of 5,00,000 optons to be vested and exercised in accordance with the ESOP 2009 plan as approved by the Compensaton Commitee. The outstanding optons available for vestng under the ESOP 2009 as on 31st March 2013 is 3,75,000 optons.

d. Dues to Micro and small enterprises

The Company has initated the process of obtaining confrmaton from suppliers who have registered under the Micro, Small and Medium Enterprises Development Act, 2006. Based on the informaton available with the company there is no amount outstanding as on March 31, 2013. There are no overdue principle amounts and therefore no interest is paid or payable.

e. Prior year comparatves have been regrouped / reclassifed, wherever necessary, to conform to the current year''s presentaton.

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Mar 31, 2012

Not Available

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Mar 31, 2011

1. Background

Saksoft Limited ('Saksoft' or 'the Company') is an Information technology Company. Saksoft provides end-to-end business solutions that leverage technology and enables its clients to enhance business performance. The Company provides the entire gamut of software solutions including consulting, design, development, re-engineering, systems integration, implementation and testing.

a. Managerial remuneration

The whole-time directors are covered under the Company's group gratuity scheme along with other employees of the Company. Contributon to gratuity is based on actuarial valuation done on an overall Company basis and hence is excluded above.

The remuneration payable to the Whole time directors of the Company was in excess of the limits prescribed under the Companies Act, 1956 by Rs 5,300 in previous year. During the year, the Company has received the approval from the Central Government in respect of such excess amount. Accordingly, the amount of Rs 5,300 has been paid during the year.

b. Remuneration to Non whole time directors

Computation of net profit in accordance with section 198 read with Section 349 of the Companies Act, 1956 and calculation of commission payable to Non-Executive Directors.

During the year the Company has provided for Commission of Rs. 302 (Previous year - Rs. 324) to non whole time Directors as approved by the Shareholders at the Annual General Meeting.

b. Quantitative details

The Company is primarily engaged in the development and maintenance of computer software and IT related services. The production and sale of such software etc cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under paragraphs 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956.

i. Related party disclosures

Enterprises in which key management personnel Sak Industries Private Limited exercise significant influence Sak Technologies Limited

Sak Abrasives Limited

Sakserve Private Limited

Saksoft Limited Employees Welfare Trust

Saksoft Limited Employees Gratuity Trust

Sonnet Investments Pvt. Ltd.

Sak Industries Pte Ltd

Subsidiaries and step down subsidiaries Saksoft Inc, USA

Saksoft Pte Ltd, Singapore

Saksoft GmbH, Germany

Saksoft Investments Pvt Limited, UK

Saksoft HK Limited, Hong Kong

Acuma Solutions Limited, UK

Acuma Sofware Limited, UK

Acuma Holdings Limited, UK

GA Information Systems Limited, UK *

GA Information Services Limited, UK *

Key management personnel Mr Aditya Krishna – Managing Director

Mr N K Subramaniyam – Whole Time Director (till August 22, 2010)

c. Segment information

The Company's operations primarily relate to providing information technology ('IT') services. Accordingly, the Company operates in a single segment, which represents the primary segment. Secondary segmental reporting is performed on the basis of the geographical location of customers

Fixed assets used in the Company's business, assets or liabilities contracted, other than those specifically identifiable, have not been identified to any of the reportable segments, as the fixed assets are used interchangeably between segments.

d. Employee Stock option plans ('ESOP')

ESOP 2006 Plan

The ESOP 2006 Plan was introduced by the Company in 2006 under which the Company grants options from time to time to employees of the Company and its subsidiaries. This Plan was approved by the Board of Directors in January 2006 and by the shareholders in February 2006. The Plan issued in accordance with Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, is administered by the Saksoft Employees Welfare Trust ('the Trust) through the compensation committee. The Trust purchased the shares of the Company using the proceeds of loans obtained from the Company and administers the allotment of shares to employees and other related maters. The eligible employees exercise the options under the terms of the Plan at an exercise price, which equals the fair value on the date of the grant, until which the shares are held by the Trust.

The Company has alloted 582,460 equity shares of Rs.10 each to the Trust to give effect to the ESOP Plan. As at the balance sheet date, the employees have exercised 27,500 options under this Plan and accordingly, 554,960 equity shares of Rs 10 each represent shares held by the Trust.

ESOP 2009 Plan

The ESOP 2009 Plan was introduced by the Company during the year under which the Company grants options from time to time to employees of the Company and its subsidiaries. This Plan issued in accordance with the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 received the consent of the shareholders in December 2009.

The plan considers an aggregate of 500,000 options to be vested and exercised in accordance with the ESOP 2009 plan as approved by the Compensation Commitiee. During the year the Compensation Commitiee had cancelled the earlier grant of 1,20,000 options under ESOP 2009 as the option grantees voluntarily surrendered their options owing to market conditions. The Compensation Commitiee subsequently granted 5,00,000 options under the Employees Stock Option plan 2009 on 3rd December 2010 to eligible employees of Saksoft and its subsidiaries at the rate of Rs.44.25 per option.

e. Dues to Micro and small enterprises

The management has identified enterprises which have provided goods and services to the Company and which qualify under the definiton of micro and small enterprises, as defned under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2011 has been made in the financial statements based on information received and available with the Company and relied upon by auditors. Further in the view of the management, the impact of the interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

f. GA Information Systems Limited, UK and GA Information Services Limited, UK have been wound up on 26 October 2010 and on 22 January 2011 respectively.

g. Prior year comparatives have been regrouped / reclassified, wherever necessary, to conform to the current year's presentation.

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Mar 31, 2010

1. Background

Saksof Limited (Saksof or the Company) is a mid-sized Informaton technology Company. Saksof provides end-to-end business solutons that leverage technology and enables its clients to enhance business performance. The Company provides the entre gamut of sofware solutons including consultng, design, development, re-engineering, systems integraton, implementation and testng.

2.a. Capital commitiments and contngencies

Partculars As at As at March 31, 2010 March 31, 2009

Estmated amount of contracts remaining to be executed on capital account (net of capital advances) and not provided for 675 22,676

Income-tax maters 12,494 4,709

The whole-time directors are covered under the Companys group gratuity scheme along with other employees of the Company. Contribution to gratuity is based on actuarial valuation done on an overall Company basis and hence is excluded above.

The remuneration payable to the Whole time directors of the Company is in excess of the limits prescribed under the Companies Act, 1956 by Rs 5,300. The Company is in the process of making an application to the Central Government for approval in respect of such excess amount. Pending such approval the excess amount of Rs. 5,300 paid to them has been shown as recoverable under Schedule 10 to the financial statements.

During the year the Company has provided for Commission of Rs. 324 (previous year - Rs.500) to non whole time Directors as approved by the Shareholders at the Annual General Meeting.

* The Company depreciates fxed assets based on estmated useful lives that are lower than those implicit in schedule XIV of the Companies Act, 1956. Accordingly the rates of the depreciation used by the Company are higher than the minimum prescribed by the Schedule XIV.

h. Quanttatve details

The Company is primarily engaged in the development and maintenance of computer sofware and IT related services. The production and sale of such sofware etc cannot be expressed in any generic unit. Hence, it is not possible to give the quanttatve details of sales and certain information as required under paragraphs 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956.

i. Related party disclosures

Enterprises in which key management personnel exercise signifcant infuence

Sak Industries Private Limited

Sak Technologies Limited

Sak Abrasives Limited

Sakserve Private Limited

Saksof Limited Employees Welfare Trust

Saksof Limited Employees Gratuity Trust

Sonnet Investiments Pvt. Ltd.

Sak Industries Pte Ltd

Subsidiaries and step down subsidiaries

Saksof Inc, USA

Saksof Pte Ltd, Singapore

Saksof GmbH, Germany

Saksof Investiments Pvt Limited, UK

Acuma Solutons Limited, UK

Acuma Sofware Limited, UK

Acuma Holdings Limited, UK

GA Information Systems Limited, UK

GA Information Services Limited, UK

Saksof Pty Limited, Australia

(Refer note 3 (q) of Schedule 17)

Key management personnel

Mr Aditya Krishna - Managing Director

Mr N K Subramaniyam - Whole Time Director

(w.e.f September 25, 2008)

Mr. V. Ramanathan - Whole Time Director

(resigned on October 1, 2008)

k. Segment informaton

The Companys Operations primarily relate to providing informaton technology (IT) services. Accordingly, the Company operates in a single segment, which represents the primary segment. Secondary segmental reportng is performed on the basis of the geographical location of customers.

Fixed assets used in the Companys business, assets or liabilites contracted, other than those specifcally identfable, have not been identfed to any of the reportable segments, as the fxed assets are used interchangeably between segments.

l. Employee Stock option plans (ESOP)

ESOP 2006 Plan

The ESOP 2006 Plan was introduced by the Company in 2006 under which the Company grants optons from time to time to employees of the Company and its subsidiaries. This Plan was approved by the Board of Directors in January 2006 and by the shareholders in February 2006. The Plan issued in accordance with Securites and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, is administered by the Saksof Employees Welfare Trust (the Trust) through the Compensation Committee. The Trust purchased the shares of the Company using the proceeds of loans obtained from the Company and administers the allotiment of shares to employees and other related maters. The eligible employees exercise the optons under the terms of the Plan at an exercise price, which equals the fair value on the date of the grant, untill which the shares are held by the Trust.

The Company has alloted 582,460 equity shares of Rs.10 each to the Trust to give effect to the ESOP Plan. As at the balance sheet date, the employees have exercised 27,500 optons under this Plan and accordingly, 554,960 equity shares of Rs 10 each represent shares held by the Trust.

ESOP 2009 Plan

The ESOP 2009 Plan was introduced by the Company during the year under which the Company grants optons from time to time to employees of the Company and its subsidiaries. This Plan issued in accordance with the Securites and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 received the consent of the shareholders in December 2009.

The plan considers an aggregate of 500,000 optons to be vested and exercised in accordance with the ESOP 2009 plan as approved by the Compensation Committee. As at the balance sheet date, the Compensaton Committee has approved the grant of 120,000 optons (date of grant: 23rd December 2009) to eligible employees of the Company and its subsidiaries at an exercise price of Rs.70.65 per opton.

m. Dues to Micro and small enterprises

The management has identfed enterprises which have provided goods and services to the Company and which qualify under the defnition of micro and small enterprises, as defned under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2010 has been made in the financial statements based on information received and available with the Company and relied upon by auditors. Further in the view of the management, the impact of the interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

n. The advance towards share capital of Saksof Investiments Private Limited, UK has been converted into 2,401,000 5% redeemable preference share of GBP 1 each during the year.

o. The Company had applied for voluntary deregistration of Saksof Pty. Ltd. The Australian Securites and Investiments Commission has vide leter dated June 9, 2009, accorded approval for deregistration of Saksof Pty Ltd.

p. Prior year comparatves have been regrouped / reclassifed, wherever necessary, to conform to the current years presentaton.