date 4th december, 2014 - bombay stock exchange · 2014-12-04 · date 4th december, 2014 to,...
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Date 4t h December, 2014
To, Bombay Stock Exchange Limited 1s t Floor, P.J . / Towers, Dalal Street , Mumbai- 400 001 Subject: - Uploading of Revised Annual Report of Prism Informatics Limited for the year 2013-14 on Bombay Stock Exchange Website . Reference: Clause 31 (a) of Listing Agreement. Dear Sir , With reference to our let ter date 26t h September, 2014 for submission of Annual Report for f inancial year 2013-14. Please note earl ier Abridged Annual Report with respect to the f inancials was submitted to the exchange. We hereby submit the Complete Annual Report of the Company for f inancial year 2013-14. Further, we undertake that apart from the f inancials of the company, Annual Report enclosed herewith remains to be the same as earl ier . The hard copy of the same shall be forwarded to the exchange at the earl iest . Kindly take the above on your records and update the same on the Bombay Stock Exchnge (BSE) Website . Thanking You, Yours Faithfully,
Standalone Balance SheetPrism Informatics Limitedas at March 31, 2014(Currency : Indian Rupee)
Note March 31, 2014 March 31, 2013Capital & Liabilities
Shareholder's FundsShare Capital 3 87,956,455 42,163,458Reserves and Surplus 4 397,428,895 380,569,332Money received against share warrants
Share application money pending allotment 5 5,961,034 -
Non current liabilitiesLong term borrowings 6 - 55,000,000Deferred tax liabilities (net) - -Other long term liabilities 7 43,110,681 39,097,510Long term provisions 8 3,511,780 3,566,777
Current liabilitiesShort term borrowings 9 46,847,706 94,472,040Trade payables 15,480,974 9,979,219Other current liabilities 10 58,771,001 60,198,684Short term provisions 11 317,151 344,077
Total 659,385,676 685,391,096
Assets
Non-current assetsFixed assets:� Tangible assets 12 4,009,517 5,684,894� Intangible assets - -Goodwill on Business Acquisitions - 13,015,054Non-current investments 13 385,985,312 411,603,146Deferred tax assets (net) 22b 4,329,815 2,934,062Long-term loans and advances 14 26,306,100 14,465,135
Current assetsCurrent investments - -Inventories - -Trade receivables 15 76,647,135 96,043,942Cash and bank balances 16 14,931,910 8,716,953Short-term loans and advances 17 135,754,588 126,766,728Other current assets 18 11,421,299 6,161,183
Total 659,385,676 685,391,096
The accompanying notes form an integral part of this Balance Sheet 0As per attached report of even date.
For E.A. Patil & Associates Alok Pathak Saurabh DaniChartered Accountants Managing Director Whole - Time DirectorFirm Registration No. 117371W
CA E.A. Patil V. ChandrashekarPartnerMembership No: 031979
Place: Navi MumbaiDate: 27th May, 2014
Company Secretary
Prism Informatics LimitedStatement of Profit and Lossfor the year ended March 31, 2014(Currency : Indian Rupee)
Note March 31, 2014 March 31, 2013
RevenueRevenue from Operations 19 209,993,239 221,656,941 Other income 20 27,507,752 14,149,292 Total Revenue 237,500,991 235,806,233
ExpensesCost of Sales & Service 21 52,002,656 54,967,945 Employee benefits expense 22 123,047,050 109,584,935 Other expenses 23 30,749,201 45,553,640 Depreciation 12 2,272,137 322,205 Amortisation 13,015,054 4,457,253 Finance costs 24 20,158,527 24,374,921 Total Expenses 241,244,625 239,260,900
Exceptional / Extraordinary Expenses 1.1 42,439,889 71,388,412
Profit before tax (46,183,523) (74,843,078) Tax expense:- Current tax 25a (1,335,329) 4,220,000 - MAT credit entitlement- Deferred tax charge 25a (1,395,753) (569,722) Profit after taxation for the year from continuing operations (43,452,441) (78,493,356)
Earnings per equity share of Re. 1 each- Basic (2.05) (4.90) - Diluted (2.05) (4.90)
Weighted average number of equity shares outstanding during the year 30 - Basic 21,168,107 16,034,449 - Diluted 21,168,107 16,034,449
As per attached report of even date.
For E.A. Patil & Associates Alok Pathak Saurabh DaniChartered Accountants Managing Director Whole - Time DirectorFirm Registration No. 117371W
CA E.A. Patil V. ChandrashekarPartnerMembership No: 031979
Place: Navi MumbaiDate: 27th May, 2014
The accompanying notes form an integral part of this profit and loss account
Company Secretary
Prism Informatics LimitedCash Flow Statementfor the year ended March 31, 2014(Currency : Indian Rupee)
March 31, 2014 March 31, 2013
Cash flow from Operating Activities:
Net Profit/(Loss) before tax (46,183,523) (74,843,078)
Adjustments for:
Depreciation and amortisation 15,287,191 4,779,458 Interest Expense 20,158,527 24,374,921 Sundry balances written off 2,758,945 10,970,566 Sundry creditors write back - (281,241) Unrealised exchange differences (3,304,760) 2,986,570 Interest income ` (23,047,701) (8,353,911) Exceptional / Extraordinary Expenses 42,439,889 71,388,412 Operating Profit before working capital changes 8,108,567 31,021,697
(Increase)/Decrease in Trade Receivables 7,139,234 (54,064,945) (Increase)/Decrease in Short-term loans and advances (8,987,860) (111,320,970) (Increase)/Decrease in Other current assets (5,260,116) 5,672,551 (Decrease)/Increase in Sundry Creditors 5,501,755 58,649 (Decrease)/Increase in Other current liabilities (1,427,683) 34,105,186 (Decrease)/Increase in Short term provisions (26,926) 148,214 (Decrease)/Increase in Long term provisions (54,997) 1,542,831 Decrease/(Increase) in Long term Loans and advances (7,000) 582,637 Net change in working capital (3,123,593) (123,275,847)
Cash generated from operations 4,984,974 (92,254,150)
Direct tax paid (10,498,636) (11,593,580)
Net cash provided by Operating Activities (A) (5,513,662) (103,847,730)Net cash provided by Operating Activities (A) (5,513,662) (103,847,730)
Cash flow from Investing Activities:
Purchase of Fixed Assets (596,760) (476,631) Purchase of Investments (5,495) (62,245,560) Increase in Acquisition cost liability - - Dividend income - - Purchase of Goodwil - - Interest received 23,047,701 6,589,710 Net cash from Investing Activities (B) 22,445,446 (56,132,481)
Prism Informatics LimitedCash Flow Statement (Continued)for the year ended March 31, 2014(Currency : Indian Rupee)
March 31,2014 March 31,2013Cash flow from Financing Activities:Proceeds from issuance of share capital 45,792,997 164,276,958 Increase in Reservers 0 - Share premium received on issue of equity shares 60,312,003 - Share application money received 5,961,034 - Proceeds from borrowings - unsecured loan (net) (55,000,000) (14,684,697) Proceeds from short term borrowings - secured loan (net) (47,624,334) 27,935,967 Interest expense (20,158,527) (24,374,921) Dividend paid - - Net cash from Financing Activities (C) (10,716,826) 153,153,307
Net decrease in cash and cash equivalents during the year (A+B+C) 6,214,958 (6,826,904) Cash and cash equivalents at the beginning of the year 8,716,953 15,543,858 Cash and cash equivalents at the end of the year 14,931,911 8,716,953
Notes to the Cash flow statement
Cash in hand 627,039 342,750 Balance with scheduled banks - in current accounts 4,304,871 (4,276,545) - in deposit accounts 10,000,000 12,650,748
14,931,910 8,716,953
The accompanying notes form an integral part of this cash flow statement.
For E A Patil & Associates Alok Pathak Saurabh Dani
Cash and cash equivalents consist of cash on hand and balances with banks. Cash and cash equivalents included in the cash flow
For E.A. Patil & Associates Alok Pathak Saurabh DaniChartered Accountants Managing Director Whole - Time DirectorFirm Registration No. 117371W
CA E.A. Patil V. ChandrashekarPartnerMembership No: 031979
Place: Navi MumbaiDate: 27th May, 2014
Company Secretary
Prism Informatics LimitedNotes to the financial statements for the year ended March 31, 2014
(Currency : Indian Rupee)
1 BackgroundPrism Informatics (PRISMINFO), incorporated in 1983, is engaged in software development. Earlier knownas Aakruti Holdings, it got its present name on Nov. 11, 2005. Specializing in web technologies, applicationdevelopment, mobile computing and systems programming, company focus has been on delivering cuttingedge software solutions coupled with building client relationships. It has affiliations with leading companieslike Elance, Palm, Handspring, ProSavvy, Square Trade and Oracle among others.
1.1 Going Concern
The financial report has been prepared on a going concern basis, which contemplated continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.
The Company has step down subsidiary TLC Technologies INC under Prism Inc US. The Prism India holds 100% shareholding in the Prism Inc US and Prism Inc held 51% in the TLC Technologies INC Company. The TLC was incurring losses from the operations resulting in substiantial erosion of the capital. Subsequent to the sale of shares of step down subsidiary TLC, the business conditions indicate the existence of material uncertainty that may cast significant doubt regarding Prism Inc's., ability to continue as going concern. In the Opinion of the management there is a decline, other than temporary, in the carrying amounts of long term investments. Hence reduction in the carrying amount of investment Rs 2,56,23,329/- has been charged to the profit and loss statement as an exceptional / extraordinary item. The Accounts receivable from the TLC Technologies Rs 1,68,16,560/- has also been provided as doubtful debt and considereed in the exceptional / Extraordinay items.
During the previous financial year the Company had 100% subsidiary Prism Informatics Pte Ltd at Singapore. The subsidiary was incurring losses from the operations resulting in substantial erosion of capital as on the balance sheet date. The subsidiary had borrowed Rs 30,97,325 from Prism India for its working capital requirements. Also, refer Note no 13 (b) for the step down subsidiary of the Prism Pte for closing agreement signed by the company with its ex-owners which may require additional quantification of liability, if any. These conditions indicate the existence of material uncertainty that may cast significant doubt about the subsidiary's ability to continue as a going concern. In the opinion of the management there is a decline, other than temporary, in the carrying amounts of long term investments. Hence, reduction in the carrying amount of investment Rs 3,12,97,902 has been charged to the profit and loss statement as an exceptional / extraordinary item in the previous financial year.
2 Significant accounting policies2.1 Basis of preparation of financial statements
The accompanying financial statements have been prepared in compliance with the requirements of theCompanies Act, 1956, and Generally Accepted Accounting Principles ('GAAP') in India, under the historicalcost convention. GAAP comprises mandatory accounting standards as specified in the Companies(Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with NationalAdvisory Committee on Accounting Standards ('NACAS') and relevant provisions of Companies Act, 1956, tothe extent applicable.
The preparation of the financial statements in accordance with generally accepted accounting principlesrequires that management makes estimates and assumptions that affect the reported amount of assets andliabilities and disclosure of contingent liabilities as of the date of financial statements and the reportedamounts of revenue and expenses during the reporting period. Management believes that the estimates used inthe preparation of financial statements are prudent and reasonable. Actual results could differ from theseestimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.
2.2 Fixed assets and depreciation
Tangible assetsFixed assets are stated at cost less accumulated depreciation. Cost includes inward freight, duties, taxes andincidental expenses related to acquisition and installation of the asset. Depreciation is provided on WrittenDown Value ('WDV'). For additions and disposals, depreciation is provided pro-rata for the period of use. Therate of depreciation is based on Schedule XIV of the Companies Act,1956.
Intangible assetsIntangible assets are amortized over their respective individual estimated useful economic life on a straightline basis. Intangible assets comprise Goodwill, which is not being amortized.
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
2 Significant accounting policies (Continued)
2.3 Leases
In accordance with Accounting Standard 19 “Accounting for leases”, lease arrangements, where the risks andrewards incidental to ownership of an asset substantially vests with the lessor, are recognised as operatingleases. Lease payments under operating lease are recognised as an expense in the profit and loss account.
2.4 InventoriesInventories comprising of resalable licenses are valued at lower of cost and net realizable value. Cost isdetermined on the basis of FIFO method and includes all costs incurred in bringing the inventories to theirpresent location and condition. Net realisable value is the estimated selling price in the ordinary course ofbusiness, less selling expenses.
2.5 Revenue and cost recognition
The Company derives its revenues primarily from software technology and IT enabled services. Revenuefrom time-and-material contracts is recognised as related services are rendered. Revenue from fixed-pricecontracts is recognised on a percentage of completion basis. In case of sale of software, revenue is recognisedwhen right to use the software is transferred to the customer.
The asset “Unbilled revenue”, represents revenues recognised in excess of amounts billed. These amounts arebilled after the milestones specified in the agreement are achieved and the customer acceptance for the same isreceived. For the cut off date, the percentage of efforts have been estimated based on the time, resource spentand the status of the project.
Revenue from maintenance contracts is recognised ratably over the term of maintenance.
Warranty costs on sale of services are accrued based on management's estimates and historical data at the timerelated revenues are recorded.Dividend income is recognised when the Company's right to receive dividend is established. Interest income isrecognised on the time proportion basis.
2.6 Employee retirement and other benefits Defined Contribution Plans:
Defined Benefit Plans·
Gratuity and leave encashment schemes are defined benefits. The present value of the obligation under suchdefined benefit plans is determined based on actuarial valuation carried out by an independent actuary at thebalance sheet date using the Projected Unit Credit Method, which recognises each period of service as givingrise to one additional unit of employee benefit entitlement and measures each unit separately to build up thefinal obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used fordetermining the present value of the obligation under defined benefit plans, is based on the market yields onGovernment securities as at the balance sheet date. Actuarial gains and losses are recognised immediately inthe Profit and loss account.
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
2 Significant accounting policies (Continued)
2.3 Leases
In accordance with Accounting Standard 19 “Accounting for leases”, lease arrangements, where the risks andrewards incidental to ownership of an asset substantially vests with the lessor, are recognised as operatingleases. Lease payments under operating lease are recognised as an expense in the profit and loss account.
2.4 InventoriesInventories comprising of resalable licenses are valued at lower of cost and net realizable value. Cost isdetermined on the basis of FIFO method and includes all costs incurred in bringing the inventories to theirpresent location and condition. Net realisable value is the estimated selling price in the ordinary course ofbusiness, less selling expenses.
2.5 Revenue and cost recognition
The Company derives its revenues primarily from software technology and IT enabled services. Revenuefrom time-and-material contracts is recognised as related services are rendered. Revenue from fixed-pricecontracts is recognised on a percentage of completion basis. In case of sale of software, revenue is recognisedwhen right to use the software is transferred to the customer.
The asset “Unbilled revenue”, represents revenues recognised in excess of amounts billed. These amounts arebilled after the milestones specified in the agreement are achieved and the customer acceptance for the same isreceived. For the cut off date, the percentage of efforts have been estimated based on the time, resource spentand the status of the project.
Revenue from maintenance contracts is recognised ratably over the term of maintenance.
Warranty costs on sale of services are accrued based on management's estimates and historical data at the timerelated revenues are recorded.Dividend income is recognised when the Company's right to receive dividend is established. Interest income isrecognised on the time proportion basis.
2.6 Employee retirement and other benefits Defined Contribution Plans:
Defined Benefit Plans·
Gratuity and leave encashment schemes are defined benefits. The present value of the obligation under suchdefined benefit plans is determined based on actuarial valuation carried out by an independent actuary at thebalance sheet date using the Projected Unit Credit Method, which recognises each period of service as givingrise to one additional unit of employee benefit entitlement and measures each unit separately to build up thefinal obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used fordetermining the present value of the obligation under defined benefit plans, is based on the market yields onGovernment securities as at the balance sheet date. Actuarial gains and losses are recognised immediately inthe Profit and loss account.
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014(Currency : Indian Rupee)
As at March 31, 2014
As at March 31, 2013
3 Share capital Authorised
40,347,800 40,347,800 177,152,200 177,152,200 217,500,000 217,500,000
Issued, subscribed and paid - up
21,956,455 20,599,158
66,000,000 21,564,300
87,956,455 42,163,458
* 666000 2% NCCP's Series V are due for converstion on 12th September, 2014
Reconciliation statement of the number of shares outstanding at the beginning and at the end of the reporting period.
No.�of�Shares Amount No.�of�Shares Amount(1)��Equity�shares�:Number of shares at the beginning 20,599,158 20,599,158����������� 14,768,030 14,768,030����������������Add: Shares issued 1,357,297��������������� 1,357,297������������� 5,831,128 5,831,128������������������Number of shares at the end 21,956,455 21,956,455����������� 20,599,158 20,599,158����������������
(2)��Non�Cumulative�Compulsorily�Convertibe�Preference�Shares�(CCP's�IV)Number of shares at the beginning 215,643 21,564,300����������� ������������������������� �������������������������������Add: Shares issued ���������������������������� �������������������������� 215,643��������������� 21,564,300����������������Less: Converted to Equity Shares 215,643 21,564,300Number of shares at the end ���������������������������� �������������������������� 215,643��������������� 21,564,300����������������
(3) Compulsory Convertible Debentures (CCD's Series III)Number of Debentures at the beginning 401,050 40,105,000 ������������������������� �������������������������������Add: Shares issued ���������������������������� �������������������������� 401,050��������������� 40,105,000����������������Less: Converted to Equity Shares 401,050 40,105,000Number of shares at the end ���������������������������� �������������������������� 401,050��������������� 40,105,000����������������
(4) Compulsory Convertible Debentures (CCD's Series V)Number of Debentures at the beginning 50,000 5,000,000 ������������������������� �������������������������������Add: Shares issued ���������������������������� �������������������������� 50,000����������������� 5,000,000������������������Less: Converted to Equity Shares ���������������������������� �������������������������� ������������������������� �������������������������������Number of shares at the end 50,000 5,000,000 50,000����������������� 5,000,000������������������
(5)��Non�Cumulative�Compulsorily�Convertibe�Preference�Shares�(CCP's�V)Number of shares at the beginning ����������������������������� ���������������������������� ��������������������������� ��������������������������������Add: Shares issued 660,000 66,000,000������������� ��������������������������� ��������������������������������Less: Converted to Equity Shares ����������������������������� ���������������������������� ��������������������������� ��������������������������������Number of shares at the end 660,000 66,000,000 ��������������������������� ��������������������������������
Type of shareholding
No. of Shares % of Shares No. of Shares % of SharesEquity shareholding:Saurabh Bankimchandra Dani 2,707,915 12.33 2,338,298 11.35 Neogen Computer Systems Private Limited 1,462,920 6.66 1,462,920 7.10 Anor Technologies Private Limited 1,650,000 7.51 1,650,000 8.01 Neeta Nilesh Shah 1,137,075 5.18 1,196,500 5.81 Thomas Noel Kelly 2,130,899 9.71 2,130,899 10.34 Glyce Gibson 1,357,015 6.18 1,357,015 6.59
4,03,47,800 (2012: 17,500,000) Equity Shares of Rs. 1/- each 17,71,522 (2012: 2,000,000) Preference Shares of Rs. 100/- each
2012-2013
As�at�31st�March,�2013
* 215643 2% NCCP's Series IV are converted on 29th October, 2013
2,19,56,445 (2013 : 20599158 equity shares of Re. 1/- each (2013 : Rs. 1/- each) fully subscribed and paid up
660000 ( 2013 : 215643) 2% Non Cumulative Compulsorily Convertibe Preference Shares (NCCP's V) of Rs. 100/- each *
Particulars As�at�31st�March,�2014
2013-2014
Ndteam Consultants & Architechts Private 1,385,968 6.31 1,385,968 6.73 Preference shareholding (2% NCCP's Series V):Dr.Ramesh Subramanim 30,000 3,000,000 - - Megh Leasing and Investments Limited 630,000 63,000,000 - -Compulsory Convertible Debentures (12% CCD's Series V):Ajaykant Ruia 50,000 5,000,000 - -
4 Reserves and surplusAs at
March 31, 2014As at
March 31, 2013
General reserveBalance brought forward 6,554,680 6,554,680 Additions during the year - - Reduction during the year - -
Closing Balance 6,554,680 6,554,680
Share premiumBalance brought forward 403,312,647 209,278,854 Share premium received on issue of equity shares 60,312,003 194,033,793
Closing Balance 463,624,650 403,312,647
Surplus - opening balance (29,297,995) 49,195,362 Add- Net profit after tax transferred from statement of profit and loss (43,452,441) (78,493,356) Amount available for appropriation (72,750,436) (29,297,995) Appropriations:
Transfer to general reserveInterim equity dividendProposed equity dividend - Preference dividend - Tax on dividend -
Closing Balance (72,750,436) (29,297,995)
Total 397,428,895 380,569,333
5 Share application money pending allotmentPreference Shares of Rs. 100/- each 5,961,034 -
5,961,034 -
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014(Currency : Indian Rupee)
As at March 31, 2014
As at March 31, 2013
6 Long-term borrowingsUnsecured :Compulsarily Convertible Debentures 5,000,000 5,000,000Loan from Financial Institution* - 50,000,000
5,000,000 55,000,000Less: current matutiries of long term borrowings considered in Other Current Liabilities 5,000,000 -
- 55,000,000
7 Other Long term liabilities
Acquisition cost payable 43,110,681 39,097,51043,110,681 39,097,510
8 Long-term provisions
Provision for Gratuity 1,302,285 1,615,067Provision for Leave Encashment 1,751,205 1,778,258Provision for Rent Equalisation 458,290 173,452
3,511,780 3,566,777
9 Short-term borrowings
Secured :Bank Overdraft* 18,027,404 34,946,738Loan from financial Institution** 10,000,000 10,000,000
Unsecured : Compulsarily Convertible Debentures*** - 40,105,000 Loan from Directors 10,020,302 9,420,302 Loan from financial Institution**** 8,800,000 -
46,847,706 94,472,040
10 Other current liabilities
Trade advances 2,449,648 5,790,203Salaries Payable 13,954,949 8,660,921Provision for expenses 12,306,759 6,607,652Interest Payable 1,914,987 15,696,711Service Tax Payable 6,564,556 7,764,306TDS Payable 15,414,223 14,876,179VAT Payable 1,023,390 764,916PF Payable 1,470 1,470PT Payable 34,875 36,325LBT Payable 106,143 -Compulsory Convertible Debentures- Current Maturities* 5,000,000 -
58,771,001 60,198,684* 500000 12% CCD are due for consversion on 21st April 2014
11 Short term provisions
Provision for employee benefitsLeave encashment 317,151 344,077
317,151 344,077
* The Company has availed bank overdraft facility from Saraswat Co-operative Bank Limited. Bank overdraft facility is secured against fixed Deposit of Rs. 100Lacs and pledge of 5,00,000 Shares of Re. 1/- each of Prism Informatics Limited held by Idhasoft Limited as collateral securities. Further personal guarantee andcorporate guarantee are also given by Alok Pathak, managing director and Idhasoft Limited respectively.
**** Loan taken from Dani Financials Products Pvt Ltd. and Dani Shares & Stocks having interest rate 18 % p.a. however repayment schedule has not defined.
**The loan facility was guaranteed by Anor Technologies Private Limited by creating pledge on 12,500,000 shares of Prism Informatics Limited held by Anor Technologies Private Limited & Loan taken from Allstate Finance & Leasing Ltd. amounting Rs. 1 Crore having interest rate 27% p.a however repayemnt schedule has not defined.
*Loan taken from Megh Leasing amounting to Rs. 5 cr having interest rate 13 % p.a. has been converted into the Non cumulative compulsory convertiblePrefrential Shares on March 13, 2014.
*** 401050, 11% CCD are consverted into 741174 Equity Shares of Rs. 1 each on 29th Oct 2013
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
12 Fixed assets
Computers and other service equipments
Officeequipments
Furniture and fixtures
Vehicles Total as at March31,2014
Total as at March31,2013
Original CostAs at 1st April, 2013 5,649,729 - 100,675 1,057,142 6,807,546 1,740,915 Additions 596,760 - - 596,760 5,066,631 Deletions - - - - -As at 31 March, 2014 6,246,489 - 100,675 1,057,142 7,404,306 6,807,546 Accumulated depreciation and amortizationAs at 1st April, 2013 512,147 - 6,287 604,218 1,122,652 800,447 Depreciation for the period 2,137,791 17,084 117,262 2,272,137 322,205 Deductions/Adjustments during the period - - - - -As at 31 March, 2014 2,649,938 - 23,371 721,480 3,394,789 1,122,652
Net block as at 31 March 2014 3,596,551 - 77,304 335,662 4,009,517 5,684,894 Net block as at 31 March 2013 5,137,582 - 94,388 452,924 5,684,894 940,468
Tangible Assets
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014(Currency : Indian Rupee)
As at March 31, 2014
As at March 31, 2013
13 Non-current investmentsInvestment in subsidiary companies (Unquoted, at cost)22,133,150 (2012: 22,133,150) Equity shares of CHF 0.10 each fully paid of Prism Informatics Europe AG, Switzerland
156,020,047 156,020,047
56,000,000 (2012 : 56,000,000) Equity shares of $ 0.01 each fully paid of Prism Informatics Inc., USA
25,623,329 25,623,329
50 (2012 : 50) equity shares of AED 1,000 each fully paid of Prism Software Consultancy JLT
716,500 716,500
6,50,777 (2012 : 550,900) Equity shares of $ 1 each fully paid of Prism Informatics Pte Limited, Singapore
31,297,902 31,297,902
Prism Infoglobal Limited, Seychelles 5,495 - 213,663,273 213,657,778
Less : Provision for Investments (Refer note (b) below) 56,921,231 31,297,902 156,742,042 182,359,876
Investment in Associate Company (Unquoted, at cost)Equity shares of Re. 1 each fully paid of Idhasoft Ltd. 229,218,270 229,218,270
229,218,270 229,218,270
Other (Unquoted, at cost)2,500 (2012: 2,500) shares of Rs. 10 each fully paid up of Saraswat Co-Op Bank Ltd.
25,000 25,000
25,000 25,000
Aggregate value of unquoted investments 385,985,312 411,603,146
(a) Refer Note 29(a) for no. of units purchased and sold during the year
14 Long-term loans and advances
(Unsecured and considered good)Rental deposits 1,626,395 1,619,395Loan to Related Entities* - -Gratuity Fund 100,000 100,000Taxes paid in advance 24,579,705 12,745,740(net of provison for tax amounted to Rs. 18,613,815 (2013: Rs. 19,949,144)
26,306,100 14,465,135
15 Trade receivablesUnsecured*Debtors outstanding for a period exceeding six months (considered good) 44,620,906 39,615,187Debtors outstanding for a period less than six months (considered good) 32,026,229 56,728,757Debtors outstanding for a period exceeding six months (considered doubtful) 62,147,316 43,340,605
138,794,451 139,684,549 Less: Provision for bad & doubtful debts (62,147,316) (43,340,605)
76,647,135 96,343,944
* Refer Note 34(b) for debts due from the companies under the same management under section 370 (1) (B) of the Companies Act, 1956.
Subsequent to the sale of step down subsidiary TLC on February 21, 2014, the business conditions indicate the existence of material uncertainty that may cast significant doubt the Prism Inc's., ability to continue as going concern. In the Opinion of the management there is a decline, other than temporary, in the carrying amounts of long term investments.
In case of previous year, the Prism Informatics Pte Singapore was incurring losses from the operations resulting in substantial erosion of capital as on the balance sheet date. In the opinion of the management there is existence of material uncertainty that may cast significant doubt about the subsidiary's ability to continue as a going concern. In the opinion of the management there is a decline, other than temporary, in the carrying amounts of long term investments.
*Refer Note 34(a) for loans & advances due from the companies under the same management under section 370 (1) (B) of the Companies Act, 1956.
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014(Currency : Indian Rupee)
As at March 31, 2014
As at March 31, 2013
16 Cash and bank balancesCash in hand 627,039 342,750 Balances with banks 4,304,871 (4,276,545)Fixed Deposit with Bank* 10,000,000 12,650,748
14,931,910 8,716,953
17 Short-term loans and advances(Unsecured and considered good)Loan to Related Parties* 117,372,310 127,616,445 Interest receivable* 22,230,582 2,527,381 Advance to creditors 12,700 476,906 Rent deposits - 7,000
139,615,593 130,627,733 Less: Provision for loans & advances & Interest receivable Loan & Interest receivable from Related parties* (3,861,005) (3,861,005)
135,754,588 126,766,728
18 Other current assetsPrepaid expenses 243,482 102,215 Unbilled Revenue 11,177,817 5,958,968 Other Deposits - 100,000
11,421,299 6,161,183
Fixed deposit with bank of INR 1,00,00,000 are held as margin money against bank overdraft facilities from bank.
* Refer Note 34(a) for loans & Advances due from the companies under the same management under section 370 (1) (B) of the Companies Act, 1956.
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014(Currency : Indian Rupee)
March 31, 2014 March 31, 201319 Revenue from operations
Sale of services 168,143,638 173,647,543 Sale of products 41,849,601 48,009,398
209,993,239 221,656,941
20 Other incomeInterest on bank deposits 1,155,255 1,296,598 Interest on loan to Related Parties 21,892,446 7,057,313 Foreign exchange loss/(gain), net 3,325,090 - Miscellaneous income 1,134,961 5,795,382
27,507,752 14,149,292
21 Cost of Sales & ServicesCost of License Sales 41,216,906 44,532,571 Cost of technical sub-contractors 10,785,750 10,435,374
52,002,656 54,967,945
22 Employee benefits expenseSalaries, bonus and allowances, including overseas employee expenses 115,542,594 105,625,090 Contribution to provident & other funds (120,885) 1,958,418 Staff welfare 638,806 549,162 Insurance Charges 767,717 505,598 Director's remuneration 6,218,818 946,667
123,047,050 109,584,935
23 Other expensesTravel and conveyance 8,869,339 11,233,367 Rent 4,021,660 4,918,313 Sundry Debtors written off 660,000 3,859,466 Commission 2,934,925 4,103,174 Business Development Expenses 1,192,986 2,357,177 Communication Expenses 775,032 597,299 Legal and professional fees 4,944,603 2,124,778 Advertisement and publicity 202,914 411,123 Subscription, registration and license fee 43,103 234,947 Auditor's remuneration:
Audit fees 300,000 300,000 Other services 369,000 392,500 Tax audit fees 85,001 65,000
Printing and stationery 499,979 800,147 Electricity 1,218,064 1,069,049 Office expenses 1,067,294 791,623 Repairs and maintenance 920,540 595,110 Bank charges & commission 404,275 659,640 Miscellaneous expenses 141,540 705,856 Prior Period Expenses - 237,401 Provision for Bad & Doubtful Debts 2,098,945 7,111,100 Foreign exchange (gain)/loss, net - 2,986,570
30,749,201 45,553,640
*Mangaement is yet to apply to the Central Government for approval towards the Payment of Director Remunaration in accordance with provision of Section 309 Of the Companies Act, 1956.
24 Finance costs March 31, 2014 March 31, 2013
Bank Interest 4,642,060 7,070,939 Interest on CCD 3,162,326 4,299,401 Interest on other 12,354,141 13,004,581
20,158,527 24,374,921 25 Taxes
a) Provision for tax expense consists of the following:Current taxes- India (1,335,329) 4,220,000
(1,335,329) 4,220,000 Deferred tax expense / (credit)- India (1,395,753) (569,722)
(1,395,753) (569,722)
(2,731,082) 3,650,278
b)
Depreciation (332,581) 15,362 Provision for leave encashment and gratuity 1,093,605 1,212,600 Provision for rent equilisation 148,692 56,277 Short term capital loss 1,649,823 1,649,823 Unamortised Goodwill in Income Tax 1,770,276 - Total deferred tax assests 4,329,815 2,934,061
The significant components of deferred tax asset and liability consists of the following:
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)26 Segmental information
As at March 31, 2014 and for the year then ended Software Consultancy Services
Software License Sale
Total
168,143,638 41,849,601 209,993,239 76,647,135 - 76,647,135 11,177,817 - 11,177,817
Geographic segmentsAs at March 31, 2014 and for the year then ended
India Rest of World Total 91,063,825 118,929,414 209,993,239 9,523,967 67,123,168 76,647,135 1,343,000 6,304,056 7,647,056
27 Related party transactions(a) Names of related parties and nature of relationship where control exists
Sr. No. Category of related parties Names
1 Subsidiaries 1. Prism Europe AG, Switzerland2. Prism informatics Schweiz GmbH,Switzerland3. Prism informatics Deutschland GmbH,Germany4. Prism Informatics Inc, Delaware5. Prism Informatics Pte, Limited, Singapore6. Prism Software Consultancy JLT
Accounts receivablesUnbilled revenue
Particulars
Total IncomeAccounts ReceivablesUnbilled Revenue
ParticularsTotal income
6. Prism Software Consultancy JLT
2 Key Management personnel 1) Dr. Nirmal Jain (Chairman)2) Alok Pathak (Managing Director)3) Saurabh Dani (Executive Director)4) Dr. Ajay Sharma 5) Christof Anderi 6) Dr. Ramesh Subhramanium 7) V.Chandrashekar ( (appointed w.e.f 12.06.2013)
3 Parties with substantial interest 1) Secure Matrix Solutions Private Limited2) Dani Financial Products Private Limited2) Relatives of key management personnel
4 Associates Idhasoft Limited
8. TLC Technologies ( Demerged on 21st Feb 2014)7. Prism Infoglobal Ltd., Mauritius
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
27 Related party transactions (Continued)
(b) Transactions and balances with related parties
Nature of the transactionTransactions during the year ended 31 March March 31,2014 March 31,2013 March 31,2014 March 31,2013 March 31,2014 March 31,2013Investments purchased 5,495 5,381,924 - - - -Sale of Investments - - - - - -Service Income 31,096,270 27,172,409 - - - -Remuneration paid - 6,218,818 946,667 1,050,001 1,800,000Loans given - - - - 43,298,000 132,830,311Loans recovered - 132,681 - - 53,591,590 8,311,191Interest income - 234,354 - - 21,892,445 1,764,200Interest paid - - 2,456,239 619,863 523,084 506,301Loan Taken - - 1,800,000 - 9,550,000 -Loan Repaid - - 1,200,000 - 5,750,000 -Rent paid - - - - - 180,000Rent received - - - - -Allotment of equity shares - - 19,999,976 63,221,500 5,000,000 5,350,000Allotment of preference shares 2,972,714 - - - - -Share application money - - 3,000,000 39,850,000 - -Debenture application money received - - - - - -
Balance as at 31 MarchInvestments 156,742,042 213,657,778 - - 229,218,270 229,218,270Debtors 26,134,369 93,637,728 - - 1,027,617 403,938Creditors - - - - 1,975,343 -Loans receivable - 3,097,325 - - 114,225,530 126,283,320Interest Receivable - - - - 21,467,401 1,764,200Loan Payable - - 10,020,302 9,420,302 3,800,000 -Interest Payable - - 227,025 97,875 203,632
Dividend Payable 1,177,981 - -
Key management personnel Parties with substantial interestSubsidiaries
Prism Informatics Limited
Notes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
27 Related party transactions (Continued)
Transactions during the year ended March 31,2014 March 31,2014 March 31,2013
A Key management personnel
(i) *Remuneration to DirectorsSaurabh Dani 3,200,000 946,667V.Chandrashekar 3,018,818 -
(ii) Share application money receivedSaurabh Dani - 39,850,000Dr. Ramesh Subhramanium 3,000,000 -
(iii) CCP Application MoneySaurabh Dani 2,972,714 -
(iv) Allotment of Equity sharesSaurabh Dani 19,999,976 63,221,500
(v) Interest ExpensesSaurabh Dani 2,456,239 1,333,381
(vi) Loan TakenSaurabh Dani 1,800,000 -
(vii) Loan repaidSaurabh Dani 1,200,000 -
B Subsidiaries
(i) Service incomePrism Informatics, Thailand - 3,233,000TLC Technologies Ltd 10,930,600 14,737,830Prism Informatics Pte Ltd - 2,643,389Prism Software Consultancy, JLT 20,165,670 6,558,190
31,096,270 27,172,409
(ii) Investments purchasedPrism Informatics Pte Ltd - 5,381,924Prism Infoglobal Limited, Seychelles 5,495 -
5,495 5,381,924
(iii) Loans recoveredPrism Software Consultancy JLT - 132,681
( C) Out of the above, transactions with related parties in excess of 10% of the total related party transactionsare as under :
*Mangaement is yet to apply to the Central Government for approval towards the Payment of Director Remunaration in accordance with provision of Section 309 Of the Companies Act, 1956
Prism Informatics Limited
Notes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)- 132,681
(iv) Interest IncomePrism Software Consultancy, JLT - 5,810Prism Informatics Pte Limited, Singapore - 228,544
- 234,354
(v) Provision for outstanding receivablesPrism Informatics Europe AG - 7,111,100Prism Informatics Pte Limited, Singapore - 10,361,035Prism Informatics, Thailand - 11,356,636TLC Technologies Ltd 28,802,760 11,986,200
28,802,760 40,814,972
(vi) Provision for Interest receivablesPrism Informatics Pte Limited, Singapore - 332,949Prism Informatics Europe AG - 430,731
- 763,680
(vii) Provision for InvestmentsPrism Informatics Pte Limited, Singapore - 31,297,902Prism Informatics Inc, USA 25,623,329 -
25,623,329 31,297,902
(viii) Provision for Loans & AdvancesPrism Informatics Pte Limited, Singapore - 3,097,325
- 3,097,325
C Parties with Substantial interest
(i) Allotment of Equity sharesBankim Dani - 4,050,000Bhuman Dani - 400,000Secure Matrix - 900,000Dani Financials Products Pvt Limited 5,000,000 -
(ii) CCP Application MoneyDani Financials Products Pvt Limited 743,178 -
(iii) Investments purchasedIdhasoft Limited - 56,863,636
(iv) Loans givenIdhasoft Limited 43,298,000 132,830,311
(v) Loans recoveredIdhasoft Limited 53,591,590 8,311,191
(vi) Interest incomeIdhasoft Limited 21,892,445 1,764,200
Prism Informatics Limited
Notes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
(vii) Loan TakenDani Financials Products Pvt Limited 9,550,000 -
(viii) Loan repaidDani Financials Products Pvt Limited 5,750,000 -
(ix) Interest ExpensesDani Financials Products Pvt Limited 523,084 506,301
Prism Informatics Limited
Notes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)(x) Rent Paid
Secure Matrix Solutions Private Limited - 180,000
(xi) Remuneration paid Shilpi Pathak 750,000 900,000Bhuaman Dani 300,001 900,000
27 Related party transactions (Continued)
Balance as at year end March 31,2014 March 31,2013
(i) InvestmentsPrism Infomatics Europe AG 156,020,047 156,020,047Prism Informatics, USA 25,623,329 25,623,329Prism Informatics Pte Ltd 31,297,902 31,297,902Prism Software Consultancy JLT 716,500 716,500Prism Infoglobal Limited, Seychelles 5,495 -
213,663,273 213,657,778Less: Provision made for InvestmentPrism Informatics, USA (25,623,329) -Prism Informatics Pte Ltd (31,297,902) (31,297,902)
Total 156,742,042 182,359,876
Parties with substantial interestIdhasoft Limited 229,218,270 229,218,270
229,218,270 229,218,270(ii) Debtors
Prsim Europe AG - 8,157,000Prism Thailand (NEXUS) - 12,622,685TLC Technologies - 37,791,326Prism Dubai (2,052,908) 5,342,907Prism Informatics Inc 28,187,277 18,407,630Prism Informatics Pte (Singapore) - 11,316,180
Total 26,134,369 93,637,728
Parties with substantial interestIdhasoft Limited 1,027,617 403,938
1,027,617 403,938
(iii) CreditorsIdhasoft Limited 1,975,343 -
1,975,343 -
(iv) Loans receivableIdhasoft Limited 114,225,530 124,519,120Prism Software Consultancy JLT - -Prism Informatics Pte Limited, Singapore 3,097,325 3,097,325
117,322,855 129,380,645Less: Provision for loans & advances Loan to Prism Informatics Pte Limited, Singapore (3,097,325) (3,097,325)
Total 114,225,530 126,283,320
Prism Informatics Limited
Notes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
(v) Interest Receivable Idhasoft Limited 21,467,401 1,764,200Prism Informatics Europe AG 332,949 332,949Prism Informatics Pte Limited, Singapore 430,731 430,731
22,231,081 2,527,879Less: Provision for InterestPrism Informatics Pte Limited, Singapore (332,949) (332,949)Prism Informatics Europe AG (430,731) (430,731)
Total 21,467,401 1,764,200
(vi) Loan PayableDani Financials Products Pvt Limited 3,800,000 -Saurabh Dani 10,020,302 9,420,302
Total 13,820,302 9,420,302
(vii) Interest PayableDani Financials Products Pvt Limited 203,632 -Saurabh Dani 227,025 97,875
Total 430,657 97,875
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014
(Currency: in Indian Rupees)
28 Amounts due to micro, small and medium enterprises
29 Summary of investments purchased and sold during the year
(a) Investments purchased during the year ended March 31
Units Cost of purchase Units Cost of purchaseInvestment in related partiesPrism Informatics Pte Limited, Singapore - - 99,877 5,381,924 Prism Infoglobal Limited, Seychelles 100 5,495 - - (A) 100 5,495 99,877 5,381,924
Others
Idhasoft Limited - - 45,113,636 56,863,636 (B) - - 45,113,636 56,863,636
Total (A+B) 100 5,495 45,213,513 62,245,560
30 Reconciliation of basic and diluted shares used in computing earnings per shareMarch 31,2014 March 31,2013
21,168,107 16,034,4495,314,989 714,523
26,483,096 16,748,971
31 Leases
March 31,2014 March 31,2013Amount due within one year from the balance sheet date 3,781,096 3,769,581 Amount due in the period between one year and five years 13,737,530 10,545,230 Later than five years 10,530,944 -
2013
As at 31 March, 2014, the Company has no outstanding dues to any vendors registered with appropriate authority under the Micro,Small and Medium Enterprises Development Act, 2006. There have been no delays in settlement of dues to such vendors, warrantingany payment of interest as provided in the above Act (2013 : Nil).
2014
Number of shares considered as basic weighted average shares outstanding
Add: Effect of dilutive issues of stock options/ warrants/ preference sharesNumber of shares considered as weighted average shares and potential shares outstanding
Rent expense for all operating leases for the year ended 31 March 2014 aggregated to Rs. 40,21,660 (2013: Rs.42,96,479) The future minimum lease payments in respect of non-cancellable operating leases as at the year end are as follows
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014
(Currency: in Indian Rupees)
32 Gratuity Benefits
Amount to be recognised in Balance Sheet
As at 31 March 2014 As at 31 March 2013Present Value of Funded Obligations 1,665,070 1,954,912 Fair Value of Plan Assets (362,785) (339,845)Net (Asset)/ Liability 1,302,285 1,615,067 Amounts recognised in Balance SheetNet (Asset)/ Liability 1,302,285 1,615,067
As at 31 March 2014 As at 31 March 2013Current Service Cost 1,054,058 754,253 Interest on Defined Benefit Obligations 238,986 148,968 Expected Return on Plan Assets (62,774) (56,611)Net Actuarial Losses / (Gains) recognised in the Year (1,543,052) 100,561 Total Included in "Employee Benefit Expense" (312,782) 947,171
As at 31 March 2014 As at 31 March 2013Change in Defined Benefit ObligationOpening Defined Benefit Obligation 1,954,912 980,068 Current Service Cost 1,054,058 754,253 Interest Cost 238,986 148,968 Actuarial Losses/(Gain) (1,582,886) 71,623 Closing Defined Benefit Obligation 1,665,070 1,954,912
Change in Fair Value of AssetsOpening Fair Value of Plan Assets 339,845 306,954 Expected Return on Plan Assets 62,774 56,611 Actuarial Gain /(Losses) (39,834) (28,938)Contributions by Employer - 5,218 Closing Fair Value of Plan Assets 362,785 339,845 Expected Employer's Contribution Next Year 1,000,000 1,000,000
Financial Assumptions at the valuation Date As at 31 March 2014 As at 31 March 2013Discount Rate (p.a.) 9.10% 7.95%Expected Rate of Return on Assets (p.a.) 7.50% 7.50%Salary Increase Rate (p.a.) 7.00% 7.00%
Composition of plan assets :2014 % 2013 %
Life Insurance Corporation Of India 362,785 100% 339,845 100%
Total 362,785 100% 339,845 100%
Experience AdjustmentNet asset / (liability) recognised in Balance For the year For the year For the year For the year
sheet (including experience adjustment entry) ended ended ended ended31-Mar-14 31-Mar-13 31-Mar-12 31-Mar-11
Defined Benefit Obligation 1,665,070 1,954,912 980,068 460,377
Plan Assets 362,785 339,845 306,954 284,217
Surplus / (Deficit) 1,302,285 (1,615,067) (673,114) (176,160)
Reconciliation of opening and closing balances of the present value of the defined benefit obligation: (Continued)
Expense recognised in Statement of Profit and Loss Account
Reconciliation of opening and closing balances of the present value of the defined benefit obligation:
In accordance with the Payment of Gratuity Act, 1972, Prism Informatics provides for gratuity, a defined retirement plan covering all employees. The plan provides a lump sumpayment to vested employees at retirement or termination of employment based on the respective employee's defined portion of last salary and the years of employment with theCompany.
Prism Informatics contributes each year to a gratuity fund based upon actuarial valuations performed by an actuary. The fund is administered by Life Insurance Corporation ofIndia for the purpose.
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014
(Currency: in Indian Rupees)
March 31,2014 March 31,201333
1 Axis Bank - A/c No 909020041819502 4,301,691 (4,279,725) 2 Citi Bank 3,180 3,180
4,304,871 (4,276,545)
34 Transactions with companies under the same management
(a)
Loan to Prism Informatics Pte Limited, Singapore 3,097,325 3,097,325 Idhasoft Limited, India 114,225,530 124,519,120
117,322,855 127,616,445 Less: Provision for loans & advances Loan to Prism Informatics Pte Limited, Singapore (3,097,325) (3,097,325)
Total 114,225,530 124,519,120
(b)
Prism Informatics Europe AG 7,111,100 7,111,100 Prism Inforamtics, Thailand 11,356,636 11,356,637 TLC Technologies Ltd 28,802,760 34,995,615 Prims Informatics Pte 10,361,035 10,361,035 Prims Informatics INC, USA 28,187,277 34,995,615 Idhasoft Inc. 27,334,283 23,341,644 Sub Total 113,153,091 122,161,647 Less: Provision made for DebtorsPrism Informatics Europe AG (7,111,100) (7,111,100) Prism Informatics Pte Limited, Singapore (10,361,035) (10,361,035) Prism Informatics, Thailand (11,356,636) (11,356,636) TLC Technologies Ltd (28,802,760) (11,986,200)
55,521,560 81,346,675
35 Supplementary statutory information
Names of scheduled banks and balances at year end:
Loans and advances include loans to companies under same management under section 370 (1) (B) of the Companies Act 1956:
Debts due from companies under the same management as defined under Section 370(1)(B) of the Companies Act, 1956:
35 Supplementary statutory information
(i) Managerial remuneration
Salaries and allowances 6,218,818 946,667 6,218,818 946,667
(ii) Earning in foreign currencyService income 118,929,414 109,290,152
118,929,414 109,290,152
36 Prior year comparativesPrevious year figures have been appropriately reclassified to conform to the current year's presentations.
For E.A. Patil & Associates For and on behalf of the Board of DirectorsChartered AccountantsFirm Registration No. 117371W
Alok Pathak Saurabh DaniCA E.A. Patil Managing Director Whole-Time DirectorPartnerMembership No: 031979
Place: Navi Mumbai V. ChandrashekarDate: 27th May, 2014 Company Secretary
(a) Provisions for gratuity and leave encashment in respect of Directors are not included above, as actuarial valuation is done on an overall Companybasis.
(b) Computation of net profit in accordance with Section 349 of the Companies Act, 1956 has not been disclosed, as commission by way ofpercentage of profits is not payable for the year to the Directors.
(c) Sitting fees paid to non-executive director not included above aggregated Rs. Nil (2013: Nil).
Prism Informatics LimitedBalance Sheet as at 31st March, 2014
Particulars Note No. 2014 2013
EQUITY AND LIABILITIES
Shareholders’ funds(a) Share capital 2.1 87,956,455 42,163,458 (b) Reserves and surplus 2.2 190,868,831 267,618,186 (c) Money received against share warrants - -
Minority interest -
278,825,286 309,781,644
Share application money pending allotment 5,961,034 -
Non-current liabilitiesLong-term borrowings 2.3 49,578,605 100,316,752 Other long term liabilities 43,110,681 39,097,510 Long-term provisions 2.4 3,511,780 3,566,777
96,201,066 142,981,039
Current liabilities(a) Short-term borrowings 2.5 46,847,706 94,663,506 (b) Trade payables 62,811,585 21,087,427 (c) Other current liabilities 2.6 100,664,300 107,104,856 (d) Short-term provisions 2.7 4,972,151 1,819,721
215,295,742 224,675,510 TOTAL 596,283,127 677,438,193
ASSETS
Non-current assets(a) Fixed assets
(i)Tangible assets 7,341,033 4,260,556 (ii)Intangible assets 7,753,116 43,697,380
(b) Non-current investments 2.8 41,490,416 139,199,491 (c) Deferred tax assets (net) (1,167,786) 15,052,316 (d) Long-term loans and advances 2.9 41,059,880 25,352,816 (e) Other non-current assets 16,831 12,807,950
96,493,491 240,370,509
Goodwill on consolidation 110,865,418 146,647,988
Current assets(a) Current investments - (b) Inventories - - (c) Trade receivables 2.10 144,610,602 113,974,317 (d) Cash and cash equivalents 2.11 34,111,784 18,569,819 (e) Short-term loans and advances 2.12 147,885,073 126,247,205 (f) Other current assets 2.13 62,316,759 31,628,355
388,924,218 290,419,696
Miscellaneous expenditure
TOTAL 596,283,127 677,438,192 See accompanying notes to the financial statements
For E.A. Patil & Associates Alok Pathak Saurabh DaniChartered Accountants Managing Director Whole - Time DirectorFirm Registration No. 117371W
CA E.A. Patil V. ChandrashekarPartnerMembership No: 031979
Place: Navi MumbaiDate: 27th May, 2014
Company Secretary
Prism Informatics LimitedProfit and loss statement for the Period ended 31st March, 2014
Particulars Note No. 2,014 2,013
Revenue from operations 2.14 670,427,309 620,277,459 Other income 2.15 27,893,649 16,484,761
Total Revenue (I + II) 698,320,959 636,762,220
Expenses:Cost of sales and services 2.16 197,906,360 133,325,779 Employee benefit expenses 2.16 350,759,999 343,015,710 Other expenses 2.16 114,915,329 151,187,527 Depreciation 13,615,845 17,429,450 Amortisation 13,015,054 4,457,253 Finance costs 2.16 25,026,929 28,870,344 Total expenses 715,239,516 678,286,063
Profit before exceptional and extraordinary items and tax (III-IV) (16,918,557) (41,523,844)
Exceptional items - (29,067,341)
Profit before extraordinary items and tax (V - VI) (16,918,557) (12,456,503)
Extraordinary Items 11,559,352 90,890,123
Profit before tax (VII- VIII) (28,477,909) (103,346,626)
Tax expense:(1) Current tax 90,304 4,747,132 (2) Deferred tax (1,395,753) (569,722)
Transfer to Minority interest - - Share of profit/ (loss) of Associates (97,709,075) (90,043,779)
Profit (Loss) for the period from continuing operations (IX-X) (124,881,535) (197,567,815)
Profit/(loss) from discontinuing operations - -
Tax expense of discontinuing operations - -
Profit/(loss) from Discontinuing operations (after tax) (XII-XIII) - -
Profit (Loss) for the period (XI + XIV) (124,881,535) (197,567,815)
Earnings per equity share:(1) Basic (5.90) (12.32) (2) Diluted (5.90) (12.32)Weighted average number of equity shares outstanding during the year - Basic 21,168,107 16,034,449 - Diluted 21,168,107 16,034,449 See accompanying notes to the financial statements
For E.A. Patil & Associates Alok Pathak Saurabh DaniChartered Accountants Managing Director Whole - Time DirectorFirm Registration No. 117371W
CA E.A. Patil & Associates V. ChandrashekarPartnerMembership No: 031979
Place: Navi MumbaiDate: 27th May, 2014
Company Secretary
Prism Informatics LimitedCash Flow Statementfor the year ended 31st March, 2014(Currency : Indian Rupee)
March 31,2014 March 31,2013
Cash flows from operating activities
(Loss)/Net Profit before tax (28,477,909) (103,346,626)
Adjustments:Depreciation and amortisation 26,630,899 21,886,703 Interest Expense 25,026,929 28,870,344 Sundry balances written off 660,000 18,018,416 Unrealised exchange difference (3,304,760) 7,306,472 Sundry creditors write back - (281,241) Interest income (22,895,704) (9,626,328) Exceptional Items - (29,067,341) Extraordinary Items 11,559,352 90,890,123 Operating cash flows before working capital changes 9,198,806 24,650,522
(Increase)/Decrease in debtors (23,978,354) (10,298,307) (Increase)/Decrease in unbilled revenue (10,447,180) 14,045,676 (Increase)/Decrease in Short-term loans and advances (8,846,750) (129,257,948) (Increase)/Decrease in other current assets (20,241,223) (7,882,599) (Decrease)/Increase in sundry creditors 37,710,987 5,871,922 (Decrease)/Increase in Other current liabilities (2,427,385) (9,702,729) (Decrease)/Increase in Short term provisions 3,152,430 1,623,858 (Decrease)/Increase in long term provisions (54,997) (2,105,066) ( ) g p ( , ) ( , , )(Decrease)/Increase in long term loans & advances 13,562,148 2,515,449 Net change in working capital (11,570,324) (135,189,743)
Cash generated from operations (2,371,518) (110,539,221)
Income tax paid (11,743,661) (3,559,796)
Net cash provided by operating activities (A) (14,115,179) (114,099,017)
Cash flows from investing activities
Purchase of fixed assets 6,232,888 (1,892,074) Purchase of investments - (89,764,608) Interest received 22,895,704 9,626,328 Net cash from investing activities (B) 29,128,591 (82,030,353)
Prism Informatics Limited
Cash Flow Statement (Continued)for the year ended 31st March, 2014(Currency : Indian Rupee)
March 31,2014 March 31,2013Cash flows from financing activities(Repayment)/Proceeds from issuance of share capital 45,792,997 4,806,663 Share application money received 5,961,034 - Increase in reserves - - Increase in securities premium 60,312,003 159,470,358 Proceeds from borrowings - unsecured loan (net) (50,738,147) 32,039,678 Repayment of Short term borrowings- secured (net) (47,815,800) (20,762,469) Interest expense (25,026,929) (28,870,344) Net cash from financing activities (C) (11,514,842) 146,683,885
Foreign Currency Translation Reserve Impact on Cash Flow (D) 12,043,396 10,977,282
Net decrease in cash and cash equivalents during the year (A+B+C+D) 15,541,966 (38,468,203) Cash and cash equivalents at the beginning of the year 18,569,819 57,038,022
Cash and cash equivalents at the end of the year 34,111,784 18,569,819
0 0 Notes to the Cash flow statement
Cash and cash equivalents consist of cash on hand and balances with banks. Cash and cash equivalents included in the cashflow statements comprise the following balance sheet amounts.
Cash in hand 680,721 352,489 Balance with scheduled banks - in current accounts 23,431,063 5,566,582 - in deposit accounts 10,000,000 12,650,748
34,111,784 18,569,819
The accompanying notes form an integral part of this cash flow statement.
For E.A. Patil & Associates Alok Pathak Saurabh DaniChartered Accountants Managing Director Whole - Time DirectorFirm Registration No. 117371W
CA E.A. Patil V. ChandrashekarPartnerMembership No: 031979
Place: Navi MumbaiDate: 27th May, 2014
Company Secretary
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Prism Informatics Limited
Notes to the consolidated financial statements (Continued)for the year ended 31st March, 2014(Currency: in Indian Rupees)
1 Significant accounting policies (Continued)
1.3 Goodwill
1.4 Leases
1.5 Revenue and cost recognition
In accordance with Accounting Standard 19 “Accounting for leases”, lease arrangements, where the risks and rewards incidental toownership of an asset substantially vests with the lessor, are recognised as operating leases. Lease payments under operating lease arerecognised as an expense in the profit and loss account.
Goodwill on standaloneIn case of business acquisition the amount paid towards business relationship has been recognised as goodwill.
Goodwill on consolidationThe excess of the cost of the Holding Company of its investment in subsidaries over the Holding Company's portion of equity in thesubsidaries, at the respective dates on which investments in subsidaries were made, is recognised in the consolidated financialstatements as Goodwill. The holding company's portion of equity in the subsidaries is determined on the basis of the book value of theacquired assets and liabilities as per the financial statements of the subsidaries as on the date of investment.
The goodwill recorded in these consolidated financial statements has not been amortised but instead evaluated for impairment. TheGroup evaluates the carrying amount of its goodwill whenever events or changes in circumstances indicate that its carrying amountmay be impared.
The Company derives its revenues primarily from software technology and IT enabled services. Revenue from time-and-materialt t i i d l t d i d d R f fi d i t t i i d t f
1.6 Employee retirement and other benefits Defined Contribution Plans:
Defined Benefit Plans·
In case of indian operations Gratuity and leave encashment schemes are defined benefits. The present value of the obligation undersuch defined benefit plans is determined based on actuarial valuation carried out by an independent actuary at the balance sheet dateusing the Projected Unit Credit Method, which recognises each period of service as giving rise to one additional unit of employeebenefit entitlement and measures each unit separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the presentvalue of the obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheetdate. Actuarial gains and losses are recognised immediately in the Profit and loss account.
contracts is recognised as related services are rendered. Revenue from fixed-price contracts is recognised on a percentage ofcompletion basis, measured by the percentage of costs incurred to-date to estimated total costs for each contract. This method is usedbecause management considers costs to be the best available measure of progress on these contracts. In case of sale of software,revenue is recognised when right to use the software is transferred to the customer.
The asset “Unbilled revenue”, represents revenues recognised in excess of amounts billed. These amounts are billed after themilestones as confirmed by the management.
Revenue from maintenance contracts is recognised ratably over the term of maintenance.
Warranty costs on sale of services are accrued based on management's estimates and historical data at the time related revenues arerecorded.
Prism Informatics Limited
Notes to the consolidated financial statements (Continued)for the year ended 31st March, 2014(Currency: in Indian Rupees)
1.7 Foreign currency transactions
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Foreigncurrency denominated monetary assets and monetary liabilities at the year end are translated at the year-endexchange rate. Exchange rate differences resulting from foreign exchange transactions settled during the year,including year-end translation of monetary assets and liabilities are recognised in the profit and loss account.
1.8 Investments
Long-term investments are stated at cost, and provision for diminution is made when, in the management's opinion,there is a decline, other than temporary, in the carrying value of such investments. Current investments are carried atlower of cost and fair value.
1.9 TaxationIn case Indian operations Income tax expense comprises current tax expense and deferred tax expense or creditcomputed in accordance with the relevant provisions of the Income Tax Act, 1961. Provision for current taxes isrecognised under the taxes payable method based on the estimated tax liability computed after taking credit forallowances and exemptions in accordance with the Indian Income tax Act, 1961.
In case of entities situated outside India, current and deferred tax is calculated as per the law prevalling in thatentities.
Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements of the Company. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment rate. Deferred tax assets in respect of carry forward losses are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realised. Other deferred tax assets are recognised only if there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realised.
1.10 Earnings per share The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for theyear by the weighted average number of equity shares outstanding during the year. Diluted earnings per share iscomputed using the weighted average number of equity shares and also the weighted average number of equityshares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potentialequity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value. Dilutivepotential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a laterdate.
Prism Informatics Limited
Notes to the consolidated financial statements (Continued)for the year ended 31st March, 2014(Currency: in Indian Rupees)
1.11 Provisions and contingent liabilitiesThe Company creates a provision when there is present obligation as a result of a past event that probably requiresan outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for acontingent liability is made when there is a possible obligation or a present obligation that may, but probably willnot, require an outflow of resources. When there is a possible obligation or a present obligation in respect of whichthe likelihood of outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longerprobable that an outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continuallyand if it is virtually certain that an inflow of economic benefits will arise, the asset and related income arerecognised in the period in which the change occurs.
1.12 Impairment of assetsThe Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. Ifany such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amountof the asset or the recoverable amount of the cash generating unit which the asset belongs to, is less than its carryingamount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment lossand is recognised in the profit and loss account. If at the balance sheet date there is an indication that a previouslyassessed impairment loss no longer exists the recoverable amount is reassessed and the asset is reflected at theassessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at therecoverable amount subject to a maximum of depreciable historical cost.
Prism Informatics Limited
2 Notes to the consolidated financial statementsfor the year ended 31st March, 2014(Currency: in Indian Rupees)
March 31, 2014 March 31, 20132.1 Share capital
Authorised40,347,800 40,347,800
177,152,200 177,152,200217,500,000 217,500,000
Issued, subscribed and paid - up
21,956,455 20,599,158
66,000,000 21,564,30087,956,455 42,163,458
* 666000 2% NCCP's Series V are due for converstion on 12th September, 2014
Reconciliation statement of the number of shares outstanding at the beginning and at the end of the reporting period.
No.�of�Shares Amount No.�of�Shares Amount(1)��Equity�shares�:Number of shares at the beginning 20,599,158 20,599,158��������������� 14,768,030 14,768,030���������������Add: Shares issued 1,357,297�������������������� 1,357,297������������������ 5,831,128������������������ 5,831,128������������������Number of shares at the end 21,956,455 21,956,455��������������� 20,599,158 20,599,158���������������
(2)��Non�Cumulative�Compulsorily�Convertibe�Preference�Shares�(CCP's�IV)Number of shares at the beginning 215,643 21,564,300��������������� ������������������������������� ��������������������������������Add: Shares issued �������������������������������� ������������������������������� 215,643��������������������� 21,564,300���������������Less: Converted to Equity Shares 215,643 21,564,300 ������������������������������� ��������������������������������Number of shares at the end �������������������������������� ������������������������������� 215,643��������������������� 21,564,300���������������
(3) Compulsory Convertible Debentures (CCD's Series III)Number of Debentures at the beginning 401,050 40,105,000 ������������������������������� ��������������������������������Add: Shares issued �������������������������������� ������������������������������� 401,050��������������������� 40,105,000���������������
4,03,47,800 (2013: 40347800) Equity Shares of Rs. 1/- each17,71,522 (2013: 1771522) Preference Shares of Rs. 100/- each
* 215643 2% NCCP's Series IV are converted on 29th October, 2013
2,19,56,455 (2013 : 2,05,99,158) equity shares of Re. 1/- each fully subscribed and paid up
660,000 2% (2013 : 215,643) Non Cumulative Compulsorily Convertibe Preference Shares (NCCP's V) of Rs. 100/- each *
As�at�31st�March,�2013Particulars As�at�31st�March,�2014
Less: Converted to Equity Shares 401,050 40,105,000Number of shares at the end �������������������������������� ������������������������������� 401,050��������������������� 40,105,000���������������
(4) Compulsory Convertible Debentures (CCD's Series V)Number of Debentures at the beginning 50,000 5,000,000 ������������������������������� ��������������������������������Add: Shares issued �������������������������������� ������������������������������� 50,000����������������������� 5,000,000������������������Less: Converted to Equity Shares �������������������������������� ������������������������������� ������������������������������� ��������������������������������Number of shares at the end 50,000 5,000,000 50,000����������������������� 5,000,000������������������
(5)��Non�Cumulative�Compulsorily�Convertibe�Preference�Shares�(CCP's�V)Number of shares at the beginning �������������������������������� ������������������������������� ������������������������������� ��������������������������������Add: Shares issued 660,000 66,000,000��������������� ������������������������������� ��������������������������������Less: Converted to Equity Shares �������������������������������� ������������������������������� ������������������������������� ��������������������������������Number of shares at the end 660,000 66,000,000 ������������������������������� ��������������������������������
Type of shareholdingNo. of Shares % of Shares No. of Shares % of Shares
Equity shareholding:Saurabh Bankimchandra Dani 2,707,915 12.33 2,338,298 11.35Neogen Computer Systems Private Limited 1,462,920 6.66 1,462,920 7.10Anor Technologies Private Limited 1,650,000 7.51 1,650,000 8.01Neeta Nilesh Shah 1,137,075 5.18 1,196,500 5.81Thomas Noel Kelly 2,130,899 9.71 2,130,899 10.34Glyce Gibson 1,357,015 6.18 1,357,015 6.59Ndteam Consultants & Architechts PrivateLimited
1,385,968 6.31 1,385,968 6.73
Preference shareholding (2% NCCP's Series V):Dr.Ramesh Subramanim 30,000 3,000,000 - - Megh Leasing and Investments Limited 630,000 63,000,000 - -Compulsory Convertible Debentures (12% CCD's Series V):Ajaykant Ruia 50,000 5,000,000 - -
2013-2014 2012-2013
Prism Informatics Limited
2 Notes to the consolidated financial statementsfor the year ended 31st March, 2014(Currency: in Indian Rupees)
March 31, 2014 March 31, 20132.2 Reserves and surplus
Capital reserve - Security Premium 463,624,650 403,312,647 General reserve - Balance brought forward 6,554,681 6,554,681 - Additions during the year - - - Reduction during the year - -
6,554,681 6,554,681
Statutory Reserve 886,808 2,674,630
Foreign currency translation reserve 21,572,439 31,964,440
Profit and loss account, balance carried forward* (301,769,747) (176,888,212)
190,868,831 267,618,186
*Surplus Opening Balance (176,888,212) 20,679,603 Profit for the year (27,172,460) (107,524,036) Interim Equity Dividend - - Proposed Dividend On Equity - - Preference Dividend - - Tax on Dividend - -
Profit/(Loss) of Associate Enterprises (97,709,075) (90,043,779) Transfer to General Reserve - - Balance as at the end of the year (301,769,747) (176,888,212)
2.3 Share application money pending allotmentNCCPreference share application money 5,961,034 -
5,961,034 -
2.3 Long-Term BorrowingsUnsecured loans :Compulsarily Convertible Debentures 5,000,000 5,000,000 Loan from Financial Institution* - 50,000,000 Other unsecured loans 49,578,605 45,316,752
54,578,605 100,316,752 Less: current matutiries of long term borrowings considered in Other 5,000,000 -
49,578,605 100,316,752
2.4 Other Long term liabilities
Acquisition cost payable 43,110,681 39,097,510 43,110,681 39,097,510
2.5 Long-Term Provisions
Provision for Gratuity 1,302,285 1,615,067 Provision for Leave Encashment 1,751,205 1,778,258 Provision for rent equilisation 458,290 173,452
3,511,780 3,566,777
* Loan taken from Megh Leasing amounting to Rs. 5 cr having interest rate 13 % p.a. has been converted into theNon cumulative compulsory convertible Prefrential Shares on March 13, 2014.
Prism Informatics Limited
2 Notes to the consolidated financial statementsfor the year ended 31st March, 2014(Currency: in Indian Rupees)
March 31,2014 March 31,20132.5 Short-Term Borrowings
Secured loans :Bank Overdraft* 18,027,404 34,946,738Loan from All State Finance** 10,000,000 10,000,000
28,027,404 44,946,738
Unsecured loans :Loan from others/Financial Institution*** 8,800,000 191,467Compulsory Convertible Debentures**** - 40,105,000Loan from Directors 10,020,302 9,420,302
18,820,302 49,716,769
46,847,706 94,663,506
2.6 Other current liabilitiesTrade advances 4,998,892 5,790,203Salaries Payable 13,954,949 9,581,478Provision for expenses 6,929,324 7,094,469Interest Payable 12,488,541 22,817,753Service Tax Payable 6,564,556 7,764,306TDS Payable 15,414,223 14,876,179VAT Payable 721,703 764,916PF Payable 1,470 1,470Profession Tax Payable 34,875 36,325Other Current Liabilities 34,254,079 38,361,045Sales tax payable 301,687 16,711Compulsory Convertible Debentures- Current Maturities* 5,000,000 -
100,664,300 107,104,856
2.7 Short-term provisions
Provision for Taxes 351,043 672,778Provision for Leave Encashment - Current 317,151 344,077Accured expenses 4,303,957 802,866
4,972,151 1,819,721
* The Company has availed bank overdraft facility from Saraswat Co-operative Bank Limited. Bank overdraft facility is secured against fixed Deposit of Rs. 100 Lacs and pledge of 5,00,000 Shares of Re. 1/- each of Prism Informatics Limited held by Idhasoft Limited as collateral securities. Further personal guarantee and corporate guarantee are also given by Alok Pathak, managing director and Idhasoft
* 50000 12% CCD's are due for conversion on 21st April, 2014
** a.) The loan facility was guaranteed by Anor Technologies Private Limited by creating pledge on 12,500,000 shares of Prism Informatics Limited held by Anor Technologies Private Limited & Loan taken from Allstate Finance & Leasing Ltd. amounting Rs. 1 Crore having interest rate 27% p.a however repayemnt schedule has not defined.
***During the F.Y. 2013-14, Loan taken from Dani Financials Products Pvt Ltd. and Dani Shares & Stocks having interest rate 18 % p.a.however repayment schedule has not defined.**** 401050, 11% CCD are consverted into 741174 Equity Shares of Rs. 1 each on 29th Oct 2013
Prism Informatics Limited
2 Notes to the consolidated financial statementsfor the year ended 31st March, 2014(Currency: in Indian Rupees)
March 31,2014 March 31,20132.8 Non-current investments
Investment in Associate Company (Unquoted, at cost)22,92,18,270 (2013 : 22,92,18,270) equity shares of Re. 1/- each fully paid of Idhasoft Ltd. 229,218,270 229,218,270
Add/Less: Profit/(Loss) share of Profit in Associate Enterprise (187,752,854) (90,043,779)
Investment in Associate Company (Unquoted, at carriyng Value) 41,465,416 139,174,491
Other (Unquoted, at cost)2,500 (2011: 2,500) shares of Rs. 10 each fully paid up of Saraswat Co-Op Bank Ltd. 25,000 25,000
41,490,416 139,199,491
2.9 Long-term loans and advancesOthers :(Unsecured and considered good)
Deposits 1,626,395 1,626,395 Loan to Related Entities 14,753,780 9,517,475 Loan to Others - 1,363,206 Grauity Fund 100,000 100,000 Tax Paid net of Provision 24,579,705 12,745,740
41,059,880 25,352,816
2.10 Sundry debtors (Unsecured)
Debtors - Considered Good 144,610,602 113,974,317 Debtors - Considered doubtful debtors 62,147,316 43,640,605
206,757,919 157,614,923 Less: Provision for doubtful debtors (62,147,316) (43,640,605)
144,610,602 113,974,317
2.11 Cash and cash equivalents
Balances with banks 23,431,063 5,566,582 Cash in hand 680,721 352,489 Fixed Deposit with Bank * 10,000,000 12,650,748
34,111,784 18,569,819
*Fixed deposit with bank of INR 1,00,00,000 are held as margin money against bank overdraft facilities from bank.
2.12 Short-term loans and advancesLoan to Idhasoft Limited 113,511,306 124,519,121 Interest receivable 33,459,900 1,103,408 Advance to creditors 12,700 476,906 Short Term Deposits 901,168 147,770
147,885,073 126,247,205
2.13 Other current assetsPrepaid Expenses 2,122,379 3,813,327 Unbilled revenue 19,416,253 8,969,073 Earnest Money Deposits - 100,000 Other current assets 40,778,126 10,661,867 Lines of Credit - 8,084,088
62,316,759 31,628,355
Prism Informatics Limited
2 Notes to the consolidated financial statementsfor the year ended 31st March, 2014(Currency: in Indian Rupees)
March 31,2014 March 31,20132.14 Income from software services and products
Income from software services 598,505,545 557,396,109 Income from software products 71,921,764 62,881,350
670,427,309 620,277,459
2.15 Other income
Interest on bank deposits 1,179,392 1,296,598 Interest - Others 21,716,312 8,329,730 Foreign exchange loss/(gain), net 3,728,853 - Miscellaneous income 1,269,093 6,577,191 Sundry Balances written Back - 281,241
27,893,649 16,484,761
2.16 Cost of Sales & Services
Cost of License Sales 66,868,639 57,102,558 Cost of technical sub-contractors 131,037,722 76,223,222
197,906,360 133,325,779 Employee benefit expenses
Salaries, bonus and allowances, including overseas employee expenses 315,237,905 309,560,492Contribution to provident & other funds 1,041,025 1,958,418Staff welfare 2,905,791 3,151,311Social Benefits 21,093,207 23,451,442Insurance Cost 4,263,252 3,947,379Director's remuneration* 6,218,818 946,667
350,759,999 343,015,710 *Mangaement is yet to apply to the Central Government for approval towards the Payment of DirectorRemunaration in accordance with provision of Section 309 Of the Companies Act, 1956
Prism Informatics Limited
2 Notes to the consolidated financial statementsfor the year ended 31st March, 2014(Currency: in Indian Rupees)
March 31,2014 March 31,2013 Other expenses
Travel and conveyance 59,975,419 62,902,605 Rent 13,888,551 12,848,310 Sundry Debtors written off 660,000 10,907,379 Commission paid 3,137,179 4,162,100 Business Development Expenses 3,264,567 3,777,030 Communication Expenses 2,356,793 2,299,214 Legal and professional fees 9,417,947 10,704,535 Advertisement and publicity 202,914 3,402,654 Subscription, registration and license fee 838,177 725,907 Office expenses 14,165,590 10,901,758 Printing and stationery 639,080 811,519 Electricity 1,381,732 1,243,274 Repairs and maintenance 1,030,832 718,697 Bank charges & commission 570,899 781,515 Preliminary expenses w/o - 966,733 Miscellaneous expenses 211,660 3,931,020 Rates and taxes 76,112 2,843,142 Provision for Bad & Doubtful Debts 2,343,875 7,111,100 Foreign exchange loss/(gain), net - 7,306,472 Training Fees - 2,085,062
Auditor's remuneration Audit fees 300,000 300,000 Tax audit fees 85,001 65,000 Other services 369,000 392,500
114,915,329 151,187,527 Interest Cost Bank Interest 7,234,851 7,951,905 Interest on CCD 3,162,326 4,299,401 Interest - Others 14,629,752 16,619,038
25,026,929 28,870,344
2.17 Tax expensesCurrent tax
Income taxes 90,304 4,747,132 Deferred taxes (1,395,753) (569,722)
(1,305,449) 4,177,410
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Prism Informatics Limited
Notes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
4 Related party transactions (Continued)
Transactions during the year ended March 31,2014 March 31,2014 March 31,2013
A Key management personnel
(i) Remuneration to DirectorsSaurabh Dani 3,200,000 946,667V.Chandrashekar 3,018,818 -
(ii) Share application money receivedSaurabh Dani - 39,850,000Dr. Ramesh Subhramanium 3,000,000 -
(iii) Allotment of preference sharesSaurabh Dani - -
(iv) CCP Application MoneySaurabh Dani 2,972,714 -
(iii) Allotment of Equity sharesSaurabh Dani 19,999,976 63,221,500
(iv) Interest PaidInterest to Saurabh Dani 2,456,239 1,333,381
(v) Loan TakenSaurabh Dani 1,800,000 -
(v) Loan repaidSaurabh Dani 1,200,000 -
Out of the above, transactions with related parties in excess of 10% of the total related party transactions are as
*Mangaement is yet to apply to the Central Government for approval towards the Payment of Director Remunaration in accordance with provision of Section 309 Of the Companies Act, 1956.
Prism Informatics Limited
Notes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
B Parties with Substantial interest
(i) Allotment of Equity sharesBankim Dani - 4,050,000Bhuman Dani - 400,000Secure Matrix - 900,000Dani Financials Products Pvt Limited 5,000,000 -
5,000,000 5,350,000
(ii) Investments purchasedIdhasoft Limited 56,863,636
(iii) Loans givenIdhasoft Limited 43,298,000 132,830,311
(iv) Loans recoveredIdhasoft Limited 53,591,590 8,311,191
(v) Interest incomeIdhasoft Limited 21,892,445 1,764,200Idhasoft INC 550,747 473,895
(vii) Rent PaidSecure Matrix Solutions Private Limited - 180,000
(viii) Remuneration paid Shilpi Pathak 750,000 900,000Bhuaman Dani 300,001 900,000
(ii) CCP Application MoneyDani Financials Products Pvt Limited 743,178 -
(vii) Loan TakenDani Financials Products Pvt Limited 9,550,000 -
(viii) Loan repaidDani Financials Products Pvt Limited 5,750,000 -
(ix) Interest ExpensesDani Financials Products Pvt Limited 523,084 506,301
4 Related party transactions (Continued)
Prism Informatics Limited
Notes to the financial statements (Continued)for the year ended March 31, 2014
(Currency : Indian Rupee)
Balance as at year end March 31,2014 March 31,2013
(ii) Loan PayableSaurabh Dani 10,020,302 9,420,302Dani Financials Products Pvt Limited 3,800,000 -
13,820,302 9,420,302
(iii) Loans ReceivableIdhasoft Limited 114,225,530 124,519,121Idhasoft INC 14,753,780 9,517,475
128,979,310 134,036,596
(v) Interest Receivable Idhasoft Limited 21,467,401 1,764,200
21,467,401 1,764,200
(vii) Interest PayableDani Financials Products Pvt Limited 203,632 -Saurabh Dani 227,025 97,875
430,657 97,875
(ii) Debtors Parties with substantial interestIdhasoft Limited 1,027,617 403,938
(iii) CreditorsIdhasoft Limited 1,975,343 -
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014,
the
Com
pany
has
noou
tsta
ndin
gdu
esto
any
vend
orsr
egis
tere
dw
ithap
prop
riate
auth
ority
unde
rthe
Mic
ro,S
mal
land
Med
ium
Ente
rpris
esD
evel
opm
ent
Act
, 200
6. T
here
hav
e be
en n
o de
lays
in se
ttlem
ent o
f due
s to
such
ven
dors
, war
rant
ing
any
paym
ent o
f int
eres
t as p
rovi
ded
in th
e ab
ove
Act
(201
3 : N
il).
Pris
m In
form
atic
s Lim
ited
Not
es to
the
finan
cial
stat
emen
ts (C
ontin
ued)
for t
he y
ear e
nded
Mar
ch 3
1, 2
014
(Cur
renc
y: in
Indi
an R
upee
s)8
Gra
tuity
Ben
efits
A
mou
nt to
be
reco
gnis
ed in
Bal
ance
She
et
As a
t 31
Mar
ch 2
014
As a
t 31
Mar
ch 2
013
Pres
ent V
alue
of F
unde
d O
blig
atio
ns
1,6
65,0
70
1,
954,
912
Fair
Val
ue o
f Pla
n A
sset
s
(36
2,78
5)
(33
9,84
5)N
et (A
sset
)/ L
iabi
lity
1
,302
,285
1,61
5,06
7 A
mou
nts r
ecog
nise
d in
Bal
ance
She
etN
et (A
sset
)/ Li
abili
ty
1,3
02,2
85
1,
615,
067
As a
t 31
Mar
ch 2
014
As a
t 31
Mar
ch 2
013
Cur
rent
Ser
vice
Cos
t
1,0
54,0
58
754,
253
Inte
rest
on
Def
ined
Ben
efit
Obl
igat
ions
238
,986
14
8,96
8 Ex
pect
ed R
etur
n on
Pla
n A
sset
s
(6
2,77
4)
(5
6,61
1)N
et A
ctua
rial L
osse
s / (G
ains
) rec
ogni
sed
in th
e Y
ear
(1,
543,
052)
100,
561
Tot
al In
clud
ed in
"E
mpl
oyee
Ben
efit
Exp
ense
"
(31
2,78
2)
94
7,17
1
As a
t 31
Mar
ch 2
014
As a
t 31
Mar
ch 2
013
Cha
nge
in D
efin
ed B
enef
it O
blig
atio
nO
peni
ng D
efin
ed B
enef
it O
blig
atio
n
1,9
54,9
12
980,
068
Cur
rent
Ser
vice
Cos
t
1,0
54,0
58
754,
253
Inte
rest
Cos
t
2
38,9
86
148,
968
Act
uaria
l Los
ses/
(Gai
n)
(
1,58
2,88
6)
7
1,62
3 C
losi
ng D
efin
ed B
enef
it O
blig
atio
n
1,6
65,0
70
1,
954,
912
Inac
cord
ance
with
the
Paym
ento
fG
ratu
ityA
ct,
1972
,Pr
ism
Info
rmat
ics
prov
ides
for
grat
uity
,ade
fined
retir
emen
tpla
nco
verin
gal
lem
ploy
ees.
The
plan
prov
ides
alu
mp
sum
paym
entt
ove
sted
empl
oyee
satr
etire
men
tort
erm
inat
ion
ofem
ploy
men
tba
sed
on th
e re
spec
tive
empl
oyee
's de
fined
por
tion
of la
st sa
lary
and
the
year
s of e
mpl
oym
ent w
ith th
e C
ompa
ny.
Pris
mIn
form
atic
sco
ntrib
utes
each
year
toa
grat
uity
fund
base
dup
onac
tuar
ialv
alua
tions
perf
orm
edby
anac
tuar
y.Th
efu
ndis
adm
inis
tere
d by
Life
Insu
ranc
e C
orpo
ratio
n of
Indi
a fo
r the
pur
pose
.
Exp
ense
rec
ogni
sed
in S
tate
men
t of P
rofit
and
Los
s Acc
ount
Rec
onci
liatio
n of
ope
ning
and
clo
sing
bal
ance
s of t
he p
rese
nt v
alue
of t
he d
efin
ed b
enef
it ob
ligat
ion:
Cha
nge
in F
air
Val
ue o
f Ass
ets
Ope
ning
Fai
r V
alue
of P
lan
Ass
ets
339
,845
30
6,95
4 Ex
pect
ed R
etur
n on
Pla
n A
sset
s
62,7
74
56,
611
Act
uaria
l Gai
n /(L
osse
s)
(3
9,83
4)
(2
8,93
8)C
ontri
butio
ns b
y Em
ploy
er
-
5
,218
C
losi
ng F
air
Val
ue o
f Pla
n A
sset
s
3
62,7
85
339,
845
Expe
cted
Em
ploy
er's
Con
tribu
tion
Nex
t Yea
r
1,0
00,0
00
1,
000,
000
Fina
ncia
l Ass
umpt
ions
at t
he v
alua
tion
Dat
eA
s at 3
1 M
arch
201
4A
s at 3
1 M
arch
201
3D
isco
unt R
ate
(p.a
.)9.
10%
7.95
%Ex
pect
ed R
ate
of R
etur
n on
Ass
ets (
p.a.
)7.
50%
7.50
%Sa
lary
Incr
ease
Rat
e (p
.a.)
7.00
%7.
00%
Com
posi
tion
of p
lan
asse
ts :
2014
%20
13%
Life
Insu
ranc
e C
orpo
ratio
n O
f Ind
ia
362,
785
100%
339
,845
10
0%T
otal
362,
785
100%
339
,845
10
0%
Exp
erie
nce
Adj
ustm
ent
Net
ass
et /
(liab
ility
) rec
ogni
sed
in B
alan
ceFo
r th
e ye
arFo
r the
yea
rFo
r the
yea
rFo
r the
yea
rsh
eet (
incl
udin
g ex
perie
nce
adju
stm
ent e
ntry
)en
ded
ende
den
ded
ende
d31
-Mar
-14
31-M
ar-1
331
-Mar
-12
31-M
ar-1
1
Def
ined
Ben
efit
Obl
igat
ion
1,66
5,07
0
1,95
4,91
2
980,
068
460,
377
Plan
Ass
ets
362,
785
339,
845
306,
954
284,
217
Surp
lus /
(Def
icit)
1,30
2,28
5
(1,6
15,0
67)
(673
,114
)
(1
76,1
60)
Rec
onci
liatio
n of
ope
ning
and
clo
sing
bal
ance
s of t
he p
rese
nt v
alue
of t
he d
efin
ed b
enef
it ob
ligat
ion:
(Con
tinue
d)
Prism Informatics LimitedNotes to the financial statements (Continued)for the year ended March 31, 2014
(Currency: in Indian Rupees)
March 31,2014 March 31,2013
9 Supplementary statutory information
(i) *Managerial remuneration
Salaries and allowances 6,218,818 946,667 6,218,818 946,667
(ii) Earning in foreign currencyService income 579,363,485 109,290,152
579,363,485 109,290,152
11 Prior year comparativesPrevious year figures have been appropriately reclassified to conform to the current year's presentations.
For E.A. Patil & Associates For and on behalf of the Board of DirectorsChartered AccountantsFirm Registration No. 117371W
Alok Pathak Saurabh Dani
*Mangaement is yet to apply to the Central Government for approval towards the Payment of Director Remunaration in accordance withprovision of Section 309 Of the Companies Act, 1956
CA E.A. Patil PartnerMembership No: 031979
Place: Navi MumbaiDate: 27th May, 2014
Managing Director
V. ChandrashekarCompany Secretary
Whole-Time Director