1. CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS LIABILITY:
Claims against the company which has not been acknowledged as debt for the year ended 31st March 2017 includes demands from the Income Tax Authorities for payment of Tax including interest for the issues mentioned hereinafter. Rs. 8.89 crores pertaining to the assessment years 1996-97, 1997-98 and 1998-99. The demands for these years are due to disallowance of Training Income in STP/EHTP. The matters are pending to these years in the Supreme Court of India. So also demand and interest of Rs. 21.53 pertaining to the assessment year 2000-01 is due to the treatment of Goodwill which is now pending in the High Court of Madras. For the assessment year 2001-02, 2002-03 and 2003-04 the demand and including interest is Rs. 109.09 crores due to the treatment of unrealized sales and opening of fresh cases u/s 263. These matters are pending in the Supreme Court of India. For the assessment years 2004-05, 2005-06 and 2006-07 the demands inclusive interest are Rs. 48.03 crores which arose due to opening of the files afresh u/s 147 due to non deduction of TDS for some matters, rate of depreciation etc. The company has appealed against the same in the High Court of Madras and has obtained a stay order. For the assessment years 2008 09, 2009-10, 2010-11, 2012-13, 2013-14, 2014-15 there is a total demand of Rs. 10.15 crores including interest because of the dispute in the rate depreciation, deduction of TDs in some matters and these matters are now with the Commissioner of Income Tax (Appeals) There is also matter pending for Pentasoft Technologies (now merged with Pentamedia Graphics) where demand inclusive interest is Rs. 6.30 crores for issues pertaining to unrealized sales. The company has contested all the demands and the Management including the advisors is very confident that they will all be upheld in the process.
CASES FILED BY THE COMPANY AGAINST INCOME TAX THE DEPARTMENT
2. We have filed a WP 2357/2010 and got a stay order dated 15.07.2010 and to dispose of all the issues /appeals from 1996 to 2000 - 07 within 8 weeks from the date of the order.
3. Revised returns has been filed by the company for the AYs 2001-02 to 2004-05 on 31.03.2008 writing off Rs. 690 Crores of impaired assets is still pending with the department . The Madras High Court vide order/ direction dated 11.01.2010 has asked the departments to consider the revised returns.
3. We have filed a WP 25120/2010 for Pentasoft Technologies and got a stay order dated 18.12.2009 till such time all the issues /appeals from 1996 to 2000 -07 are disposed off.
CASES FILED BY THE INCOME TAX THE DEPARTMENT AGAINST THE COMPANY
4. Department has filed in the Supreme Court of India against Pentasoft Technologies (now merged with Pentamedia Graphics) for Assessment Years 2001-02 and 2002-03 challenging the Depreciation on Non Compete Fees upheld by the Madras High Court The Management believes that the ultimate outcome of the proceedings will not have any adverse to the company.
5. The company has recognized deferred tax liability (Net) Rs. 36.48 lakhs as per the requirements of Accounting standard 22
6. EPS
Number if equity shares of Re.1/- each (basic) 41,50,26,168
Number if equity shares of Re.1/- each (diluted) 41,50,26,168
Net Profit/Loss after tax available for 8,539,000 Equity Shareholders Rs.
Basic EPS-Weighted Average Rs. 0.02
Diluted EPS-Weighted Average 0.02
7. computer software for multimedia
The company is mainly engaged in IT Enabled Services, Multimedia business of consultancy, training, sale of digital content, service for pre-post production, special/visual effects and distribution is not capable of being expressed in any generic units.
8. EARNING IN FOREIGN CURRENCY
2017 2016
IT Enabled Services, Multimedia Development Services & Products (Exports) NIL NIL
9. previous year comparatives
Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classifications/ disclosures.
10. All figures are rounded off to nearest in thousands
As per our separate report of even date
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