oracle (ofss) bpo services inc. 2015 | oracle · oracle(ofss) bpo services limited (‘the...

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ASSETS

Oracle (OFSS) BPO Services Limited

Unaudited Balance sheet as at March 31, 2015

(Amounts in thousands of Indian Rupees)

Notes March 31, 2015 March 31, 2014

EQUITY AND LIABILITIES

Shareholders' funds Share capital 3 58,194 58,194 Reserve and surplus 4 269,239 237,968

327,433 296,162 Noncurrent liabilities Longterm borrowings 5 80,000 110,000 Other longterm liabilities 7 1,994 1,994 Longterm provisions 8 23,252 19,106

105,246 131,100 Current liabilities Shortterm borrowings 5 30,000 30,000 Trade payable 6 13,905 2,837 Other current liabilities 7 29,917 46,870 Shortterm provisions 8 17,803 15,778

91,625 95,485

TOTAL 524,304 522,747

ASSETS

Noncurrent assets Fixed assets Tangible assets 9(a) 4,713 5,955 Intangible assets 9(b)

Trade receivables 10 17,525 17,525 Longterm loans and advances 12 49,101 49,286 Other noncurrent assets 13

71,339 72,766 Current assets Trade receivables 10 292,547 331,118 Cash and bank balances 11 148,552 104,192 Short term loans and advances 12 6,500 9,041 Other current assets 13 5,366 5,630

452,965 449,981

TOTAL 524,304 522,747

Summary of significant accounting policies 2

The accompanying notes form an integral part of the financial statements


Unaudited Statement of pofit and loss for the year ended March 31,2015 (Amounts in thousands of Indian Rupees, except share data)

Year ended Notes March 31, 2015 March 31, 2014

INCOME

Revenue from operations 14 281,363 251,182 Other income, net 15 21,040 34,550

Total income 302,403 285,732

EXPENSES

Employee costs 16 180,308 158,616 Travel related expenses (net of recoveries) 21,315 19,872 Professional fees 4,155 6,538 Other expenses 17 46,073 47,579 Depreciation and amortisation 9 4,259 3,552

Total expenses 256,110 236,157 Profit before tax 46,293 49,575 Current tax 15,023 19,796 Profit for the year 31,271 29,779

Basic and diluted earnings per equity share of par value of Rs.10 (March 31, 2014 Rs.10) each (in Rs.) 5.37 Weighted average number of equity shares used in computing earnings per share 5,819,360 5,819,360

Summary of significant accounting policies 2

The accompanying notes form an integral part of the financial statements

5.12


Notes annexed to and forming part of unaudited financial statements for the year ended March 31, 2015 (Amount in thousands of Indian rupees)

`

Note 1: Corporate information

Oracle (OFSS) BPO Services Limited (‘the Company’) was incorporated in India with limited liability on November 7, 2002. The Company is a subsidiary of ISP Internet (Mauritius) Company (“ISP”) holding 99.82% (March 31, 2014 99.82%) ownership interest in the Company as at March 31, 2015. Effective December 22, 2004, Oracle Financial Services Software Limited acquired all shares in ISP.

The Company is principally engaged in the business of providing business process outsourcing services to the mortgage industry.

Note 2: Summary of significant accounting policies

(a) Basis of presentation

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting, in conformity with accounting principles generally accepted in India and complying in all material respects with the Accounting Standards notified under section 133 of the Companies Act, 2013 (the ‘Act’) read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous years, except for the changes in accounting policy described in note (c) below.

The significant accounting policies adopted by the Company, in respect of the financial statements are set out as below:

(b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

(c) Change in accounting policy for depreciation on fixed assets

Till year ended March 31, 2014, to comply with the requirements of Schedule XIV to the Companies Act, 1956 the company was charging 100% depreciation of assets costing less than Rs.5,000/ in the year of purchase. However, Schedule II to the Companies Act 2013 applicable from the current year, does not recognize such practice. Hence to comply with the requirement of Schedule II to the Companies Act, 2013, the Company has changed its accounting policy for depreciation of assets costing less than Rs.5,000/. As per the revised policy, the Company is depreciating such assets over their useful life as assessed by the management. The management has decided to apply the revised accounting policy prospectively from accounting periods commencing on or after April 1, 2014. The change in accounting for depreciation of assets costing less than Rs.5000/ did not have any material impact on financial statements of the company for the current year.

(d) Fixed assets, depreciation, amortisation and impairment



` Fixed Assets including intangibles and capital work in progress

Fixed assets are stated at cost less accumulated depreciation and amortisation. The Company capitalises all direct costs relating to the acquisition and installation of fixed assets. The cost of fixed assets not ready to use before balance sheet date are disclosed under ‘Capital workinprogress’.

The Company purchases certain specificuse application software, which is in ready to use condition, for internal use. It is estimated that such software has a relatively short useful life, usually less than one year. The Company, therefore, charges to income the cost of acquiring such software.

Depreciation and amortisation

Depreciation and amortisation are computed using straightline method using the rates arrived at based on the useful lives estimated by the management. The estimated useful life considered for depreciation of fixed assets is as follows:

Asset description Asset life (in years) Tangible assets Leasehold improvement Lesser of 7 years or

lease term Computer equipments 3 Office equipments 5 Furniture and fixtures 7

Intangible assets Computer software 3

During the current year, the company has changed the estimated useful life of office equipments from 7 years to 5 years. There is no material impact on depreciation for the year due to this change in estimated useful life.

The management has estimated based on an internal assessment, the useful lives of the following classes of assets.

• The useful lives of servers and networking equipments forming part of computer equipments are estimated as 3 years. There lives are lower than those indicated in schedule II.

• The useful lives of furniture and fixtures are estimated at 7 years. These lives are lower than those indicated in schedule II.

Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of



` the time value of money and risks specific to the assets. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

(e) Foreign currency translations

Initial recognition

Foreign currency transactions are recorded in Indian Rupees, by applying to the foreign currency amount of exchange rate between the Indian Rupees and the foreign currency at the date of the transaction.

Conversions

Foreign currency denominated monetary items are translated into rupees at the closing rates of exchange prevailing at the date of the balance sheet. Nonmonetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.

Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting Company’s monetary items at rates different from those at which they were initially recorded or reported in previous financial statements are recognised as income or expenses in the year in which they arise.

(f) Revenue recognition

Revenue is recognised as follows:

Business Process Outsourcing:

Business process outsourcing services comprise of backoffice administration, data management, call centre and other information technology enabled services including systems integration and facility management. Depending upon the terms of the arrangement, revenue from these services are recognised on a per employee, per transaction, number of hours worked or costplus basis. Revenue is recognised only when persuasive evidence of an arrangement with final customer exists, services have been rendered, the fee is determinable and collectibility is reasonably assured.

The company presents revenues net of services tax in its statement of profit and loss.

Revenue in excess of billing is classified as unbilled revenue.

Interest Income

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

(g) Retirement and other employee benefits



` Provident fund is a defined contribution scheme and the Company has no further obligation beyond the contribution made to the fund. Contributions are charged to statement of profit and loss in the year in which they accrue.

Gratuity liability is a defined benefit obligation and is recorded based on actuarial valuation on projected unit credit method at the end of the year. The gratuity liability and net periodic gratuity cost is actuarially determined after considering discount rates, expected long term return on plan assets and increase in compensation levels. All actuarial gains/losses are immediately recorded to statement of profit and loss and are not deferred.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method. All actuarial gains/ losses are immediately recognised to statement of profit and loss and are not deferred. The Company presents the entire leave as a current liability in the balances sheet, since it does not have an unconditional right to defer its settlement for twelve months after the balance sheet date.

(h) Operating leases

Leases of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under operating leases are recognised as an expense on a straightline basis over the lease term.

(i) Incometax

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred income taxes are recognised for the future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised and carried forward only to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred tax assets are recognised on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realised against future taxable profits. Unrecognised deferred tax assets of earlier periods are reassessed and recognised to the extent that it has become virtual certain that future taxable income will be available against which deferred tax assets can be realised.

The Company has not recognised deferred tax assets in respect of carried forward business losses and unabsorbed depreciation due to no virtual certainty for realization of deferred tax assets.

Minimum Alternate Tax ('MAT') credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India ('ICAI'), the said asset is created by way of credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.



`

(j) Earnings per share

The earnings considered in ascertaining the Company’s earnings per share comprise the net profit after tax. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of shares, if any which would have been issued on the conversion of all dilutive potential equity shares.

(k) Provision

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

(l) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognize a contingent liability but discloses its existence in the financial statements.



`

(l) Cash and cash equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

(This space is left blank intentionally)


Notes annexed to and forming part of unaudited financial statements as at March 31, 2015 (Amounts in thousands of Indian Rupees, except share data)

March 31, 2015 March 31, 2014

Note 3: Share capital

Authorised: 10,000,000 (March 31, 2014 10,000,000) equity shares of Rs 10/ each 100,000 100,000

Issued, subscribed and fully paid up: 5,819,360 (March 31, 2014 5,819,360) equity shares of Rs10/ each 58,194 58,194

(a) The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(b) Details of shareholders holding more than 5% equity shares in the company: March 31, 2015 March 31, 2014

Name of shareholder No. of equity % of equity shares No. of equity shares % of equity shares shares

ISP Internet (Mauritius) Company Limited, holding company 5,808,660 99.82% 5,808,660 99.82%

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of equity shares.

(c) Reconciliation of shares outstanding at the beginning and at the end of the year:

There is no movement in the shares outstanding at the beginning and at the end of the year. March 31, 2015 March 31, 2014

Note 4: Reserves and surplus Surplus in the statement of profit and loss Balance, beginning of the year 237,968 208,189 Profit for the year 31,271 29,779 Balance, end of the year 269,239 237,968

March 31, 2015 March 31, 2014 Note 5: Longterm borrowings Noncurrent Current Noncurrent Current

Loan from Oracle Financial Services Software Limited (Refer Note 21) 80,000 30,000 110,000 30,000 (Unsecured)

Loan taken from Oracle Financial Services Software Limited ('OFSS') had a conversion option in equity shares of the Company which was exercisable till March 31, 2009. The conversion option was extended till November 30, 2010. During the year ended March 31, 2011, the Company signed a settlement agreement with OFSS while repaying Rs.200,000 along with an interest waiver on the same. Further to this, an interest free loan of Rs.300,000 outstanding as on March 31, 2011 will be repaid in 10 equal annual instalments effective November 2010. The first installment was due in March 2012. Amount paid during the year Rs.30,000 (March 31,2014 Rs.30,000).

Note 6 : Trade Payable March 31, 2015 March 31, 2014 Noncurrent Current Noncurrent Current

Micro and small enterprises*

Others 13,905 2,837 13,905 2,837

* The identification of Micro and Small Enterprises is based on Management's knowledge of their status.

Note 7 : Other liabilities March 31, 2015 March 31, 2014 Noncurrent Current Noncurrent Current

Accrued expenses 20,581 38,893 Employees related liabilities 6,014 5,444 Other current liabilities withholding and other taxes 1,994 1,459 1,994 1,635 other statutory dues 1,863 898

1,994 29,917 1,994 46,870

Note 8 : Provisions For employee benefits Gratuity 23,252 5,746 19,106 5,783 Compenated absence 12,056 9,995

For Taxation Taxation net of advance tax

23,252 17,803 19,106 15,778

As at Sale/ As at As at Sale/ As at As at Particulars


Notes annexed to and forming part of unaudited financial statements as at March 31, 2015 (Amounts in thousands of Indian Rupees)

Note 9 (a): Tangible assets

Particulars

Gross block Depreciation and amortisation Net block

As at

April 1, 2014 Additions

Sale/ Deletions

As at

March 31,2015 As at

April 1, 2014 For the year

Sale/ Deletions

As at

March 31,2015 As at

March 31,2015

As at

March 31,

2014

Improvement to leasehold premises 26,250 26,250 26,250 26,250

Computer equipments 87,096 503 87,599 83,198 3,005 86,203 1,396 3,898 Office equipments 6,161 2,514 8,675 4,177 1,181 5,358 3,317 1,984 Furniture and fixtures 5,463 5,463 5,390 73 5,463 73

Capital Work in Progress

Total 124,970 3,017 127,988 119,015 4,259 123,274 4,713 5,955

As at March 31, 2014 121,424 4,172 626 124,970 116,089 3,552 626 119,015 5,955

Note 9 (b): Intangible assets

Particulars

Gross block Depreciation and amortisation Net block

As at

April 1, 2014 Additions

Sale/ Deletions

As at

March 31,2015 As at

April 1, 2014 For the year

Sale/ Deletions

As at

March 31,2015 As at

March 31,2015

As at As at

March 31,

2014

Computer software 8,962 8,962 8,962 8,962

Total 8,962 8,962 8,962 8,962

As at March 31, 2014 8,962 8,962 8,962 8,962


Notes annexed to and forming part of unaudited financial statements as at March 31, 2015 (Amounts in thousands of Indian Rupees)

March 31, 2015 March 31, 2014 Noncurrent Current Noncurrent Current

Note 10: Trade Receivables (unsecured)

(a) outstanding for a period exceeding six months from the date they are due for payment: Considered good

(b) other receivables: Considered good

17,525

17,525

51,784

240,762 292,547

17,525

17,525

140,214

190,904 331,118

Note 11: Cash and bank balances

(a) Cash & cash equivalents Cash in hand Balances with banks: Current account Deposit accounts with original maturity of less than 3 months

(b) Other bank balances Balances with banks: Deposit account with original maturity more than 3 months and less than 12 months

Amount disclosed under noncurrent assets Amount disclosed under current assets

13,551 18,000 31,552

117,000

148,552

19,192 20,000 39,192

65,000

104,192

Note 12: Loans & Advances (unsecured, considered good)

Advances recoverable in cash or kind or for value to be received: Deposits for premises and others Prepaid expenses Other advances

Advance tax, net of provision for taxes MAT credit entitlement

9,447

15,853 8,610

15,191 49,101

3,499 3,002

6,500

9,557

9,692 9,038

20,999 49,286

4,543 4,498

9,041

Note 13: Other current assets

Interest accrued on bank deposits Unbilled revenue

2,732 2,634

957 4,673

5,366 5,630

Others 58 70


Notes annexed to and forming part of unaudited financial statements for the year ended March 31, 2015

(Amounts in thousands of Indian Rupees)

Year ending March 31, 2015 March 31, 2014

Note 14: Revenue from operations Service Revenue 281,363 251,182

281,363 251,182

Note 15: Other income, net

(a) Interest income Interest on bank deposits 7,968 5,993

(b) Other income, net Foreign exchange gain/(loss), net 13,072 28,427 Miscellaneous income, net (0) 130

13,072 28,557 21,040 34,550

Note 16: Employee costs Salaries & bonus 169,045 148,733 Staff welfare expenses 3,881 7,844 Contribution to provident and other funds 7,382 2,039

180,308 158,616

Note 17: Other expenses Communication expenses 172 421 Rent 29,512 32,031 Power 7,855 8,480 Repairs and maintenance: Buildings and leasehold premises 1,237 787 Computer equipments 127 16 Others 58 70

Rates and taxes 877 89 Recruitment expenses 171 Housekeeping expenses 2,268 2,170 Corporate Social Responsibility [Refer note below] 480

Miscellaneous expenses 3,486 3,344 46,073 47,579



` Note 18: Capital commitments & contingent liability

a) Capital commitments

Contracts remaining to be executed on capital account and not provided for (net of advances) aggregates to Nil as at March 31, 2015 (March 31, 2014 Rs Nil).

b) Contingent liability

On account of Income Tax March 31, 2015 Ma

10,246 10,246

rch 31, 2014 10,246 10,246

Note 19: Operating lease

The Company has taken an office premise under an operating lease for 54 months. Gross rental expenses for the year ended March 31, 2015 aggregated to Rs.12,993 (March 31, 2014 – Rs.16,427). The minimum rental payments to be made in future in respect of these leases are as follows:

March 31, 2015 March 31, 2014 Not later than one year 18,893 18,071 Later than one year but not later than five years 53,532 72,425 Later than five years

72,425 90,496

Note 20: Employee Benefit Obligation

Defined contribution plan – provident fund

During the year ended March 31, 2015 and 2014, the Company contributed Rs 7,363 and Rs 1,993, respectively to provident fund.

Defined benefit plan – gratuity

The amount recognised in the statement of profit and loss for the year ended March 31, 2015 and 2014 are as follows:

Year ended March 31, Particulars 2015 2014 Current service cost 2,578 3,279 Interest cost 2,002 1,964 Expected return on plan assets Nil Nil Recognised net actuarial loss 1,546 (1,032) Past service cost Nil 245 Total included in ‘employee benefit expenses’ 6,126 4,456 Actual return on plan assets Nil Nil

The amounts recognised in the balance sheet are as follows:



`

Year ended March 31, Particulars 2015 2014 Present value of unfunded obligations 28,999 24,889 Unrecognised past service cost Nil Nil

Net liability 28,999 24,889

Changes in present value of defined benefit obligation representing reconciliation of opening and closing balances thereof are as follows:

Year ended March 31,

Particulars 2015 2014 Defined benefit obligation at beginning of the year 24,890 29,767 Current service cost 2,579 1,150 Interest cost 2,002 1,964 Actuarial loss 1.546 (1,032) Past services cost Nil 245 Benefit Paid (2,018) (7,205) Defined benefit obligation at end of the year 28,999 24,889

The assumptions used in accounting for the gratuity plan are set out as below:

Year ended March 31, Particulars 2015 2014

Discount rate 7.80% 9.10% Salary Escalation Rate 8.00% 8.00%

Year ended March 31, Particulars 2015 2014 Withdrawal rates Age (Yrs) Rates Age (Yrs) Rates

2130 44% 2130 45% 3134 24% 3134 25% 3544 15% 3544 16% 4555 6% 4555 7% 5560 0% 5560 0%

The Company contribution to gratuity for the year ended March 31, 2016 is expected to be Rs.5,746. The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotions and other relevant factors such as supply and demand in the employment market.



` The Company evaluates these assumptions annually based on its longterm plans of growth and industry standards. The discount rates are based on current market yields on government bonds consistent with the currency and estimated term of the post employment benefits obligations.

Present value of the defined benefit obligation, fair value of the plan assets, deficit and experience adjustments in the plan and liabilities for the current year and previous four years are as follows:

Year ended March 31, Particulars Present value of defined benefit obligation Fair value of plan assets Deficit

2015

(28,999)

(28,999)

2014

(24,889)

(24,889)

2013

(29,767)

(29,767)

2012

(26,194)

(26,194)

2011

(20,238)

(20,238)

Experience adjustment On plan liabilities On plan assets

116

(1,032)

(1,210)

4,446

5,319

Note 21: Unhedged foreign currency exposure

As of the balance sheet date, the Company’s net foreign currency exposure that is not hedged is Rs.295,646 (March 31, 2014 Rs. 331.460).

Note 22: Related party disclosure

a) Names of related parties and description of relationship

Relationship Name of the related party

a) Holding company ISP Internet Mauritius Company (“ISP”)

b) Holding company of ISP Oracle Financial Services Software Limited

c) Fellow subsidiaries Oracle (OFSS) BPO Services Inc. USA Oracle (OFSS) Processing Services Limited Oracle Corporation Singapore Pte Ltd Oracle India Pvt. Ltd.



`

b) The transaction and balance outstanding with these parties are described below:

Particulars Transactions

Year ended March 31, 2015 2014

Amount receivable (payable)

As at March 31, 2015 2014

Revenue Oracle (OFSS) BPO Services Inc [Refer note A below] Oracle (OFSS) Processing Services Limited

274,790

7,073

246,526

4,656

291,434

1,113

327,540

3,574

Unbilled Revenue Oracle (OFSS) BPO Services Inc [Refer note A below] 2,634 4,673

Loan outstanding Oracle Financial Services Software Limited Amount repaid by the Company during the year 30,000 30,000 (110,000) (140,000)

Reimbursements Oracle (OFSS) Processing Services Limited Oracle Financial Services Software Limited

879

16,889

1,276

9,062

(879)

(12,786)

(1,276)

(9,062)

Purchase of Fixed Asset Oracle Corporation Singapore Pte Ltd 785 (753)

Repairs & Maintenance

Oracle India Private Limited 327

Professional Fees

Oracle India Private Limited 293



` Note A:

Oracle Financial Services Software Limited, the ultimate holding company, has committed to Oracle (OFSS) BPO Services Inc. for any funding requirements in the future, accordingly the Company believes that the above stated amount is fully recoverable.

Note 23: Segment information

Business segments

The primary reporting of the Company has been performed on the basis of business segments. The Company has only one business segment, which is providing business process outsourcing services. Accordingly, the amounts appearing in these financial statements relate to this primary business segment.

Geographical segments

Geographical segment disclosures based on location of the Company’s customers are summarised below:

Segment Revenue based on location Year ended March 31,

2015 2014 United States 274290 246,526 India 7,073 4,656 Total 281,863 251,182

Carrying amount of segment assets Year ended March 31,

2015 2014 United States 291,434 332,213 India 232,870 190,534 Total 524,304 522,747

Total cost incurred during the year to acquire fixed assets within India is disclosed in Note 9(a).

(This space is left blank intentionally)

e curren ax a y , ,


Notes annexed to and forming part of unaudited financial statements for the year ended March 31, 2015 (Amounts in thousands of Indian Rupees)

Year ending March 31, 2015 March 31, 2014

Note 24: Auditor's remuneration* Statutory Audit 603 539 Tax Audit 112 112 Outofpocket expenses 53

715 704

* included in Professional fees

Note 25: Earnings in foreign currency (on accrual basis) Service revenue 270,373 246,526

Note 26: Expenditure in foreign currency (on accrual basis) Travel related expenses (net of recoveries)

Note 27: Value of imports on CIF basis capital goods 785

Note 28: Tax expenses Current tax 15,023 19,796 Less : MAT credit entitlement

N t t t li bilit 15 023 15,023 19 796 19,796 Net current tax liability


Unaudited statement of cash flow for the year ended March 31, 2015 (Amounts in thousands of Indian Rupees)

Year ended March 31, 2015 March 31, 2014

Cash flows from operating activities: Profit before tax 46,293 49,575 Depreciation and amortisation 4,259 3,552 Loss on sale of fixed assets, net Marked to market of current investment

Interest income (7,968) (5,993) Dividend income Provision for diminution in value of investment Effect of exchange rate changes in cash and cash equivalent

Unrealised exchange (gain) loss, net

Finance charge on leased assets Deferred rent Provision for doubtful debts, net

Bad debts

Operating Profit before Working Capital changes 42,584 47,134 Movements in working capital

Decrease/(Increase) decrease in trade receivables 38,573 (38,264) (Increase) in long term loans and advances (6,052) (5,175) (Increase) in shortterm loans and advances 2,541 (6,558) (Increase) decrease in other current assets 2,039 15,383 Increase in trade payables 11,068 (253) (Decrease) increase in current liabilities (16,953) 14,637 (Decrease) Increase in non current liabilities

Increase in other shortterm provisions 2,024 (3,415) Increase in other longterm provisions 4,146 (7,661) Increase in other longterm provisions 4,146 (7,661)

Cash from operating activities 79,970 15,828 Payment of taxes (8,786) (17,665)

Net cash provided by operating activities 71,184 (1,837)

Cash flows from investing activities: Additions to fixed assets including capital workinprogress (3,017) (4,172) Margin Money deposit matured 341 Bank fixed deposits having maturity of more than three months matured 111,000 142,000 Bank fixed deposits having maturity of more than three months booked (163,000) (127,000) Dividend received from subsidiaries [Refer note 19] Interest received 6,193 6,507

Net cash (used) in investing activities (48,825) 17,676

Cash flows from financing activities: Loan repaid (30,000) (30,000)

Net cash provided by financing activities (30,000) (30,000)

Net increase in cash and cash equivalents (7,641) (14,161) Cash and cash equivalents at beginning of the year 39,192 53,353 Cash and cash equivalents at end of the year 31,551 39,192

Component of cash and cash equivalents

Balances with banks: Current accounts 13,551 19,192 Deposit accounts with original maturity of less than 3 months 18,000 20,000

Total cash and cash equivalents (Refer note 11 a) 31,551 39,192

oracle (ofss) bpo services inc. 2015 | oracle · oracle(ofss) bpo services limited (‘the...

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