5 hcl netherlands bv 0

8/19/2019 5 Hcl Netherlands Bv 0

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20

13-14

Annual

report

of

HCL

Nethertands) B.V.

Registered

office: THE HAGUE ____________________________

Address: Prinses Margrietpiantseen

50

Initial

2595

BR THE

HAGUE

for Ident,tio

rposes

only

Ernst g Accountants LLP

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Table

of contents

Director’s report

Directors’

report 2

2 Balancesheetasatjune3O2ol4 7

3

Profit and loss account for the

financial yearended

June

302014

8

4

Statement of

Cash

Flows

9

5 Notesto the Financial Statements 10

6 Other

information

19

Total number o f pages in this report:

19

Initiale

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2

Directors’

leport

Business

development

and envhenment

Corn business and revlew

HCL Netherlands) B.V.

(“the

Company~) Is a wholly owned

subsidiary

of HCL Great Brttain Limited,

Maidenhead,

Un ited K ingdom.

The

Company

forms part

of the

HCL

group, and

the ultimate parent

company i s HC L Technologies

Limited

registered

in

India.

The Company

is

active in

the

sectors of software-led IT solutions, extemaily controlled infrastructure management

and

the outsourcing of business processes.

Annual yleld

Companyhas decreased to €

42,209,826 in

comparison to

€

45,049,483 in

the

previous financial year.

Due t o the

decrease

in the operating

expenses,

the profit

margin has

increased

and

consequently

the profit has increased for

the financial

year.

The

annual

profit amounted

to

€

3,143,100.

ii.

Companysftuatjon

Financial

situatjon

Tangible fbced assets and depreclatlon

The depreciation

was

conducted according to

the

linear depreciation method. Deductions

are recorded

pro-rata

for

acquisftions and disposals.

For the financial year,

the

depreciation

amounted to € 72,671

(2012/13:

€ 59,044).

ShareCapital in

FY2013/14

As

on June 30,2014, the

capital stock

and

capital surplus together amount to an unchanged €

18,151.

DMdend

During

the

financial year the Company has paid div idend of

€

2,000,000 to

its

shareholcier HCL Great

Britain Limited.

Cash

flow

During the financial

year

in consideratjon, there

was net

cash outfiow of €

1,828,377

(2012/13: ne t

cash

infiow of

€ 1,823,740). The main

reason

for increase

in

cash outfiow

is

due to the decrease in other liabilities becau se o f

decrease in account payable- Group companies.

Performance development

Developmentof sales:

Satisfactorydevelopment of

sales d ue to th e

strong market conditions.

Development of costs:

The operating costs

decreased com

mensurate to

the overal l business

of the

Company.

Development of

profits:

The profits before taxes amounted to € 4,17 1,173. After income taxes, there

was

a profit for

thefinancialyearof € 3,143,100.

Personnel

Number and stnicture

of employees

For

the financial year, there

was

an

average

of 152 employees active in the

Company (2012/13:

160).

Initialed

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3

ersonnel

guldelines

The Company is

obligated

to treat all employees with

equality, independent

of sex,

race,

color, handicap or family

status. The Company offers continuing education and training for

handicapped

employees.

f

the handicap occurs

after

entering

the Company, the Company is

obligated

to

continue employing

this

individual

and

adequately

qualifying

this employee. The Company is also obligated

to regularly communjcate relevant intemal

n ew s a nd

decisions.

f

decisjons

are made that

affect

the emp oyees,

the

employees’

opinions

will be considered

during

the decision

process.

RbI~ lnfiuenclng development

The

software industry

is

continuing to grow in a dynamic and strongly competitive environment. This sector

is

characterjze~j

by fast technological

changes and

innovations that constantly challenge the existing

and

conventional

business models.

The Company

is confronted

with multiple business risks,

the most

important

of

which are

detailed

below:

Dependences/con~tjo~

The group led

bythe

parentcompany, HCLTechnologjes Ltd. in

India,

which

HCL Netherlands

B.V.)

belongsto,

maintains

a broad customer

base

to ensure the independence from

individual

clients, special

services, or

geographical factors.

Competitlon

In order to continue to have a

strong position

in

the market

a nd to remain competitive, the Company has invested

considerably

in

software technology and other offshore technologies.

Human resources

Keeping with the parent Company,

the

Company approved an

initiative

by

the

name of

uEmployee

first”.

Togetherwith

other measu res, the goal o f

this

initiative

is

to make the Company an

attractive

employer.

Principe r lsks and

uncertalnties

The software industry thrives

on

a dynamic and highly competitive business environment, characterised

by

rapid

technological

changes and

innovations

that

constantty challenge

the

conventional business models.

The Company

faces seve ra l business r isks, of which prominent

o ne s a re

discussed below along w it h th e Company’s strategy to

mitigate these r isks:

1.

Technology

related risks

Risk

The Company operates in an ever evolving and dynamic

technology environment

and

it

is of

utmost importance

that

the Company continuously reviews and upgrades its technology, resources and processes t o avoid obsolescence.

HCL’s

strategy

The

Company

is no t dependent on any single technology or platform. It has developed competencies

in various

technologies, platforms

and

operating environment

and

offers

wide range of

technology options

to

clients

t o choose

from fortheir

needs.

2. Competftion related

risks

Risk

The overall

market

growth is

slowing

and mo re

and

more

competitors are

vying

with each other for market

share. The

line is diminishing between

the tradftional

IT se rv i ces p layers and

non-traditjonal

players. Now

the customers

have

more choices

of technology,

vendors

and

service

models

which

force

every

entity

to perform to

their best capabilities

and t o e nhan ce

them.

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HCL’s strategy

The Company has been

quick

to

respond to

the

changing competitive dynamics.

Our business

model

is

increasingly

shifting from the traditional outsourcing

to

a non-linear model and growth Is being triggered by the altemative

outsourcing approach.

3. B usiness

continuity

information

security

Risk

The

Company

is

dealing in maintaining, developing and operating time critical Business and IT applications for

varlous customers and any catastrophe may

halt

business

activities

and cause irreparable damage to

the

brand

reputation

of

the

Company. Similarly, t he v it al

need

for confidentiality and

security

of confidential data both

belonging

to

clients

as well as the Company itself also

pose

r isks o f l eaks, l oss or compromise of information.

HCL’s

strategy

The Company

has

pu t in place a comprehensive business continuity program to

ensure that

It meets its business

continuity and disaster

recovery

related requirements. There is

also

an Information Security team to assess and

manage the

information

security and data

privacy

and related risks by leveraging on

People, Processes

Technology.

Resean,h and

Development

As

the Compan y has

the function

of

a

sales

office, the

r esea rch and

development is

done

centrally

by

HCL

Technologies Limited.

III.

Prognosis of future

development

The

Directors believe that future profits wiU be created through the positive business development. In order to sustain

the business

operations,

the

parent company is

obligated

to provide financial

support

if needed. The company

will

focus on

three

catogeries

of service for

development

of business:

Software Services

:

Information

Techno lo gy “ IT ”) ser vice s such as

custom application development an d

maintenance,

technology

services,

product engineering,

and

package implementation.

lnfrastructure Services :

Infrastructure

related IT

enabled

services such as Remote

lnfrastructure Management

(“RIM”),

data centeroperations, end usercomputing, network management, and

security

management.

Business

Process Outsourcjnp Services :

IT enabled

s er vic es s uc h a s

technical

he lpdesk , back

office

services,

transactjon processing, and cali centerservjces.

Below are the berif Out

look

on

bissuness:

1. Outlook on R D:

The research and

development

is done

centrally

by

the parent company, HCL Technologies Ltd.

2.

Outlook

on

business

(e.g.

expectation of

sales,

customers,

etc.),

inciuding but not l imited to:

The Company

has strong customer

base

in

the Netherlands and

primarily having the

act ive engagements

with approx.

20 we ll known

costumers.

Many of the

engagements

a re pan European

in

nature so

delivering

services

to multiple countries within EIJ region.

As Netherlands

is

conveniently

located

within EU

r eg io n and g iven i ts

strong economic performance

is

a

good hub for

our growth in

U

region.

Plus, in

order to

service clients in

the

region

the Company will

invest in

a

local talent

pool

more as opposed to

delivering

from

global

delivery centers. The Company requires significant

amount

of

local

consulting

capability and p rog ram management capability to manage such l ar ge dient engagements. The Company

has

recently started the

p rocess to

set-up a small delivery center in

The Hague

to

service

the clients

across

the

region

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in the new w av e of

“Customer

Exper ience Se rv ice Delivery~ and to help clients to become more

digitized

organizations.

This will

create

more

employment opportunftles

in the reg lon and will ultimately l ea d mo re jobs in

the local

market.

Immediately,

w e do

anticipate new jobs to be

fulfilled

from the

local

market

either through direct recruitment or on a

contract basis

from our

local

partners.

2.1

Strategy

of financing

and

expected or planned

future financing

The

Company

may

require investment funds mostly

on

tw o fronts — operational

expense

of the company and

sales/marketing investments.

As per

the plan, the Company does

not

need any bank or business credit in

order

to

property execute the business plan in the Netherlands and

the

same

shall

be

financed

from

the

HCL group company

for the

meeting

the funding

requirement.

2.2 Strategy of

human

resources

and

expected or planned future changes to

human

resources

The Company is expecting to have growth in the business in Netherland as well as in

U

regions , hence more

employment

opportunities will

result

in the company.

2.3 Known future circumstances which

significantly

influence

the profitability

or recoverability

The

Company

is

consistently

growing

year

on

year and

also

expecting

a good business opportunities which

will

result

in not only in growth of the

company

but

also

growth of

the

region. The

company

is

focusing

on the following:

Engagement of local talent people

more

as opposed to delivering from global delivery centers.

~ Significant

amount

of local consufting capabilfty and program management capability need to be added to

our overall portfollo

r To

pursue and explore inorganic means to

acquire

capability to meet ou r

revenue

goals and a lso capability

objectives

The Boaiti of

Managlng Dlrecto,s

Prahlad Rai

Bansal

Ani Kuma r Chanana

The

Hague, The Netherlands, S~epk~vnber

2~

2,o~Lj

lnitia

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ants LLP



FINANCIAL STATEMENTS

For the

financal

year

01-07-2013

to

30-06-2014

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2.

Balancesheetasat

June3O,

2014

All

amounts in C after appropriation of result

Assets

June 30, 2014 June 30, 2013

Fixed assets

Tangiblefixedasse~

Note(1)

35,592

100,662

35,592 100,662

Current

assets

Receivables Note 2)

12,447,048 13,068,614

Inventory

52,989

Cash at bank No te 3 ) 1,646,275 3,474,652

14,093,323

16,596,255

Total

assets

-_14,128,9 15 16,696,917

Shareholder’s equity

and Ilabilities

June 30, 2014

June

30, 2013

Shareholder’s equlty Note 4)

Sharecapital 18,151 18,151

Retained eamings

5,069,312 3,926,2 12

5,087,463 3,944,363

Current Ilablifties Note 5)

9,041,452

12,752,554

Total

shareholder’s equlty

and

llabilftles 14,128,915 16,696,917

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3. Profit

and

loss

account

for the financî al year ended

June

30 ,

2014

June

30, 2014

June

30, 2013

Ne t tumover

Note 6) 42,209,826 45,049,483

Cost

of

Sales

Note

7) (26,

186,220) (29,599,313)

Total

operatlng Income 16,023,606

15,450,170

Wages and

salaries

Note

8)

(8,150,157)

8,

962,530)

Pensions and

social security

charges

Note 9) (1,367,885) (1,263,115)

Depreciatjon

of tangible

f i xed assets

Note 10) (72,671) (59,044)

Other operating expenses No te 11) (2,201,041) (2,414,802)

Total

operathig expenses

(11,791,754) (12,699,491)

Financ ia l income and expense) Note 12 )

(60,679) (150,098)

Profftbeforetaxafjon

4,171,173 2,600,581

Income taxes

Note 13 ) (1,028,073) (602,770)

Ne t profit 3,143,100 1,997,811

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4. Statement

of

Cash Rows

for

the f inancial

yearended June 30,2014

Opera

vngact]

Wties

Profit

before tax

Adjustments

to reconc i le net income

witti

net cash provided by operating activitles:

•

Depreciation of tangible f ixed assets

Interest expense

Interest

Income

Change

In

receivables

-Change in otbercurrentassets

-

Change

in inventoiy

Change

in

long

term

and short term liabilities

Income tax pa id

Ne t cash

provided

by operating activities

in

vesting

ach WtIes

Interest

received

Investment

in

tangible

fixed

assets

Ne t c ash used in investing activities

June 30,2014

3,281

(7,601)

(4,320)

June 30,

2013

975

(36,735)

(35,760)

Financingactivitfes

Div idend paid

-

Interest

paid

Interest

pa id t o g roup

company

Ne t

cash provided

byfinancing activities

Change

in

cash

Cash

at beginning of financial

year

Cash

atend offinancialyear

(2,000,000) (3,000,000)

(5659)

(5,441) (1,639)

(2,005,441)

(3,007,295v

(1,828,377) 1,823,740

4,171,173

2,600,580

72,671

5,441

(3,28 1)

343, 186

278,379

52,989

(4,156,719)

(582,455)

181,384

59,044

5,659

(975)

2,599,176

(33,401)

223,338

1,124,387

(1,711,010)

4,866,798

3,474,652

1,646,275

1,650,91.2

3,474,652

In

It

ja

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10

5 Notes to

the

Financial Statements

General

The Company forms part of the HCL group,

the

ultimate parent

is

HCL Technologies L td . a t Uttar

Pradesh,

India. HCL

Netherlands

B.V. is a whoIe iy owned

subsidiary

of HCL Great Britain

lJmfted

at

Maidenhead,

Uni ted Kingdom.

Basis for pi~peratIon of

the

flnancial

Statements

i) The

financial statements

are

prepared in accordance with Part 9 of Boo k 2 ofthe

Dutch

clvii

code.

Accounting Policies

ii)

Use

of

estimates

The

preparation

offinancial

statements

in

conformitywfth Dutch

GAAP

requires management to

make

estimates

and

assumptions

that affect the repor ted

amounts

of assets and liabilities, disclosure of

contingent

assets and ilabilities

at the date

of the

financial

statements and

the

repor ted amounts

of

revenues and expenses

during

the

reporting

period.

Exampies

of such

estimates inciude estimates

of expected

contract

costs to be incurred to

complete

software

development,

provision

for

doubtful debts and

estimated

useful

life

of

fixed

assets.

Actual

resu its could

differ from

these estimates. An y

revision in accounting estimates

is

recognised

prospectively

in

current and future

periods.

ii~ Fixed assets

Fixed assets are stated at the cost of acquisition

inciuding incidental

costs reiated to

acquisition

and

Installation.

iv) Depreciation of

tangible

f ixed assets

Depreciation

o f f ixed asse ts

is

provided on

the

straight-Iine method based on

estimated

usefui i lves as

estimated

by

the management. Depreciation is charged on a pro-rata basis

for

assets purchased/ sold during the year. Assets

costing

less

than € 60.82 (approximately

Rs.5,000)

are fully depreciated in the year of purchase. The management’s

estimate of the useful life of the various f ixed asse ts

is

as foliows:

Description

L if e in years)

Plant Machinery 4

Computers

3

Software

2

Fumiture,

fixtures

and

office equipment

4

v) Operating Leases

Lease payments under an

operating

lease are recognised as an

expense

in the profit and lo ss

account

on straight —

l ine basi s over

the

lease

term.

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vi) Revenue

recognition

Revenue from software services comprlses i ncome f rom time and

material

and f ixed pr ice contracts. Revenue with

respect to

time and

material

contracts is recognized as

related

services are

performed. Revenue

from fixed

price

contracts

and

fixed time frame contracts

is

recognized

in

accordance with the percentage completion method under

which the sales value of performance,

including

eamings thereon, is recognized on the basis of

cost

incurred in

respect of each contract

as

a proportion of total cost

expected to be

incurred.

The

cumulative impact of

any revision in

estimates

of the percentage of

work completed is

reflected in t he y ea r in which the change becomes known.

Provisions

for estimated

losses are

made during the

year

in which a

loss

becomes probable

based

on current contract

estimates. Revenue

f rom sa te

of licenses for the

usa

of software appilcations

is recognized

on transfer of title in the

user l icense.

Revenue from annual

service

contracts is

recognized on

a

p ro r at a

basis

over the

period in which

such

services are rendered. Income from revenue sharing agreements is recognized when the

right

to receive

is established.

Eamings

in excess of billing

are classified

as unbilled

revenues,

while

billing in excess

of eamings

are

classified as

uneamed

revenue. lncremental

revenue from

existing contracts arising

on future

sales ofthe

customer~’

products will

be recognized

when

It is

eamed. R ev en ue a nd related direct costa from transition services in outsourcing

arrangements are de fe r red and recogni zed over the perlod of the arrangement. Certain upfront non-recurring costa

incurred

in

the initial phases of

outsourcing contracts

and

contract acquisition

costa, are deferred and amortized

usually on a

straight

line

basis over the term of the contract.

The

Company

periodically

estimates

the

undiscounted

cash flows from the arrangement and compares I t w it h the unamortized costa.

f

the

unamortized costa exceed the

undiscounted

cash f low,

a

loss

is

recognized.

The

Company

accounts for volume discounts an d pricing incentives to customers. The discount terms

in

the

Company’s arrangemefits with

customers

generally

entitle

the

customer

to

discounts,

f the

customer completes

a

specified level of

revenue

transactions. In

some

arrangements, the

level

of discount varies with iricreases in the levels

of revenue transactions.

The

Company

recognizes

discount obligations as a reduction of

revenue

hased on

the

ratable

allocation of

the

discount to

each

of the underlying

revenue

transactions

that

result in

p rog ress by

the customer

toward

eaming the discount.

Revenues are shown

net of sales t ax ; val ue added t ax , ser vi ce tax and

appllcable

discounts

and

aluwances.

The

revenue is recognized net of

discounts

and al lowances.

vii)

Expenditure

Expenses are accounted for on the accrual basis and provisions are made for all known losses and

liabilities.

The

cost

of

services

for

software

development

is charged to

profit

and loss

account

in

the

same year .

viii)

Foreign

exchange

transactions

Foreign exchange

transactions

are r ecor de d a t

the

exchange rates

prevailing

at the

date of transaction.

Foreign

currency Realised gai ns a nd l osses on foreign

exchange

transactions

are recognised in the profit and

loss

account.

Foreign

currency monetary

assets

and

liabilities

excluding loans

in

the nature of permanent investment are

translated

at the

financial

year end rates and

resultant

gains/losses on foreign exchange translations are recognised

in

the

profit

and l os s account.

ix)

Employee

benefits

The

Company

and employees contribute to

the

social security scheme in accordance with the local statutory

requirements. The employees of the Company are entitled to

compensated

absences. The Company records an

obligation for compensated absences in the

period

in

which

the employee rendets the

service that increase

this

entitlement.

The Company measures the e xpe ct ed cos t o f

compensated

absence as the additional

amount

that the

Company expects

to pay as a resuit ofthe

unused

entitlement that has accumulated

at

the balance sheet

date.

nitialed

~dentificat



12

x)

Pension

The Company has contributory pension plans covering all its employees. Pension

obligations

are funded

through

annual premiums.

xi)

Taxatiopi

Company tax is

calculated at

the

applicable

rate

on the

resuft for

the financial year, taking

into

account permanent

differences between profit calculated according to the financial statements and profit calculated

for

taxation

purposes,

andwithwhlch defferedtaxassets(jfapplicable) areonlyvalued insofarasthejrreali~tion

is likely.

xii) Provisions and

Contingent liabilities

A

provision is

recognised

when

there

is

a present obligation

as

a result of a past event, it is probable that

an

outfiow of

resources

will

be

required to settie the obligation and

in

respect

of

which reliable estimate c an b e

made.

A disciosure

for a

contingent liability

is made when

there

is a

possible

obligation or a

present obligation

that may,

but probably

will

not, require

an

outflow

of

resources.

Where

there

is

a

possible

obligation

or

a

present obligation

in

respect of which

the likelihood of outflow of

resources

is remote, no

provision or

disciosure is

made.

xiii)

Risks:

• Financial r isk management

The Company’s

operations

expose itto

a

va ri et y o f financial risks that

includeforeign

exchange rate r isks, credit

risks

and

Iiquidity

risks.

The group has adequate controls in place

that

seek to minimise

t he adve rse

effects of these

financial

risks

on the company’sfinancial performance.

•

Foreign

exchange rate r isk

Foreign

exchange rate

risk arises

from

future commercial transactions and recognised

assets

and

liabilities

that

are

denominated

in

a

currency

that is

not t he company’ s

functional

currency.

Foreign

currency

monetary items

are

reported using the closing

rate.

Non-monetary items which are carried in terms of

historical

cost

denominated

in a

foreign currency

are

reported

us ing the exchange rate at the

date

of the

transaction.

Exchange

differences arising

on

the

settlement of

monetary i tems,

or on

reporting

such

monetaty items

of

company

a t rates different from

those at

which they were initially recorded during

the

year, or reported

in

previous financial statements, are recognized

as

income

or

as

expenses in

the

year

in which

they ar ise.

• Credit

risk

The

Company

h as n o

significant

concentrations of credit risk

as

the company has

a

large number of customers which

are

based in the UK. It

has

policies in place to ensure that the provisions of

consulting

services

are

made to renowned

customers

or

those

with

an appropriate credit

history.

The company

a lso has

policies

and

procedures

in

place

for

the

control

and

monitoring of its credit

risk.

The company has a dedicated team forthe close follow up for realisation from

the customers and adequate provision

for doubtful

debts

is

created wherever required as per group policy. During the

yearthere

was

no significant amount identified for

which

the company

is

required

to

create the provis ion.

• Liquidity risk

Prudent liquidity risk

management implies maintaining

sufficient cash and

short

term bank deposits. The Directors do

no t

see

any significant liquidity r isk invo lved. The

company’s liquidity

risk is further

mitigated through

the

availability

of financing

from its ultimate

parent undertaking.

Buildrrrq

a

botter

work~.,q

world



13

lxv) Notes to the

statement

of cash

flows

The

Company appiles the indirect method.

The

statement

of

cash

flows

is

der ived from the

profit

and l oss

account

and

other

changes between the opening and

closing balance

sheets, eliminating the effect of currency translation

differences.

~iaIed

for Identificati~purp05~~ only

~ fltanf~



Tangible fixed

assets 1)

lune 30.

2014

June

30.

2013

Machinery and equipment 35,592

100,662

35,592 100,662

Movements

in

these ftemswere asfollows:

Machlnery

and

equipment

Ne t

bookvalue

atiuly

1,2013 100,662

122,971

Additions 7,601 36,735

Depreciation (72,67

1) (59,044)

Ne t

book value

at iune 30, 2014

35,592

100,662

Accumulated depreclatio

n

296,193 223,522

Tangible fixed assets are:

—

valued at purchase

price

minus accumulated depreciatjon;

—

depreciated

Pinearlywith a

fixed

percentage

of

the purchase price,

based on

the estimated

economic Jifetime.

Recelvables 2)

June 30. 2014

June 30.2013

Trade

receivables 7,581,927

8,678,026

Amounts

receivab le f rom group companies

2,430,164 1,677,251

Otheramounts recejvable

124,530 159,402

Prepayments and accrued income 2,310,427

2,553,935

12,447,048

13,068,614

The provision

fordoubtful

debts charged to

Trade

receivables’ amounted

to

€ 154,766

(2012/

13:

€

239,615)

and has been

charged to the

profit

and loss account.

lflitjafed

for identificatio .tJrposes only

Em

~~~0untants

LLP



15

Other receivables

ca n be

broken down as

follows:

,lijneL3O.

2014 lune 30.2013

Staff

advances 55,698 120,410

Other receivables

68,832 38,992

124,530

159,402

Prepayments and

accrued income can be

broken down

as

follows:

Ji~ne20.

2014

Jiji~e30. 201~

Defer red cost

45

1 ,2 10 60

1,048

Unbilled receivables 1,213,187 1,067,753

Other prepayments

646,030 885,134

2,3

10,427

2,553,935

Cash at

bank

3)

June 30.2014 June 30.2013

Cash atbank 1,646,275 3,474,652

1,646,275 3,474,652

There are no restrictions

on

the availability

of

cash and cash equivalents. These are readily available.


4)

Share

Capitali

Retalned

Total

Eamlngs

Balance atiuly

2013 18,151

3,926,212

3,944,363

Profit forthe year 2013/14 - 3,143,100 3,143,100

DlstributjonofdMcjend - (2 ,000 ,000 ) (2,000 ,000)

Balance atiune 30, 2014 18,151

5,069,312 5,087,463

Current Ilabilities

5)

,[une

30,

2Qj4

Ji ne

30.

2013

Trade creditors/suppilers 174,650 303,920

Amounts payable to group companies 3,287668

6,667,937

Taxes and social security contributions

1,274,116

1,132,961

Accrijals and

deferred

inconie

4,305.0

18

4,647.736

90,41,452 12,752,554

Initialed

for Identificat, n purposes or~y

0

ng

Accountants LLP

BuüdIn~ a better

worbi’~q

wor’d



16

Accruals

and

deferred

income recognised

in

the

balance sheet

can

be

broken down

as

follows:

June3O.2Qj.4

June30.2Q~

Accrued

holidayentjtlements

and overtime

321,934 451,670

Bonuses/profit

sha

re

payable

465,392 480,768

Other costs payable

1,9

16,483

1,339,792

Deferred Revenue

1,60 1,209 2,375,506

4,305,018 4,647,736

The taxes and social security charges payable recognised in the balance

sheet

can

be

broken down as follows:

Jiine 30. 2014

h~ne30.

2_Q1~

Social

securitycontributjons

payable 58,369 95, 728

VATpayable 603,152

787,688

Payroll tax

payable

55,083

137,651

Corporate

incometaxpayable 557,512 111,894

Income tax payable 1,274,116

1, 132,961

Net tumover 6)

Fo r

the financial

yearended

June

30.2014

Third Inter.

Total

Parties

Company

Standard software services 38,546,227

3,619,220 42,165,447

Sal e o f

goods

44,379

44,379

38,590,606

3,619,220 42,209,826

Forthe financial year

ended

June

30.2013

Third

Inter- Total

Partjes Company

Standard software

services

39,713,028 5,2

15,980

44,929,008

Sale of goods

120,475

-

120,475

39,833,503

5,215,980 45,049,483

Cost of

Sales 7 )

foiï ~e flnan~I~I

Forthe

flnanclal

year

end~

vear ended

,hine_30. 2014

1ijne~30, 2013

Consuiting charges

group

24,171.922 24.267,297

Consulting charges Others 565,328 867,777

Costofgoodssold

49,765

314,233

Otherdjrectcost 1,399,205

4,150,006

26,186,220 29,599,313

Initialed’

for identificat~purposes

only

Ernst

Vo ng Accountants LLP

BuiId~n~

a better

workIng world



Wages and salarles 8)

Fo r

the

flnan~I

For

the

financial

year

ended

year eiide4

.hiiw30. 2014 June3O. 2013

Wages

and salarjes

7,909,333 8,617,480

Otherstaffcosts 240,824 345,050

8,150,157

8,962,530

The fixed differentiateci

insurance

premiums for

future

risks relating to employee disabillty

are

not expected to

have

any material

effect

on

future staff costs.

The statutory

directors did not receive any remuneration

in

the current financial year (2012/13 : €

Nu).

Pensions and

social security charges

9)

E~tthe financial

For the flnî n~1

~ear

en~ç4 vear çn~~

hineZO.

2014

June 30.

2013

Pension

charges

183,024 137,57

Social security

charges

1,184,861 1,125,544

1,367,885 1,263,115

Other operating expenses 10 )

Forthe

fln~~j For the

financipl

year en4e4 year~

June3O.

2014

Jiine 30.2013

Other operating expenses 280,53

913,

761

Legal and professional charges

245,472

114, 162

Travel costs

681,135

542,6 16

Establishment maintenance 165,568 78,737

Mart~etingcosts 108,398 175,871

Communjeatjon 719,937 589,655

Total other operating

expenses

2,201,041 2,414,802

Financial income and expense (11)

Fortheflna~jd~

Forthefinpn~j

vear ended

June

30. 2014 June 30. 2013

interest

expenses

and

similar charges relating to g roup companies

5,441

5,659

Interest and

similar

income relating to

group

companies (3,281) (975)

Loss on

fo re tgn exchange

fluctuations

45,948 122,472

Miscellaneous

financial

expenses 12,571

22,942

Total financial

income)

/ exp~nse

60,67

ni ta e

~dentih ti urposes~~~y



19

Audit fees (16)

The costs of the Company forthe external auditor, the audit organisation and the entire network to which the audit

organisation belongs charged to the financial year are se t

out

below:

Ernst and Young Other than Ernst

Accountants LLP

AuditofFinancialstatementa

7,080

Total 7,080

6 Other information

Articles of

Association

provislons goveming

profit

approprlatlon

In

accordance

with the Company’s

Articles of Association the result

is

at

the

disposal of the Shareholder’s meeting.

The Company

can

only distribute profits

to its’ sharehoider

and

other entitled entities,

as far as


exceeds

the

total of the

i ssued and

paid-up share capital togetherwfth the statutory

and

legal

reserves.

Subsequent Events

The Company has

evaluated

all

the subsequent

events

through

~3,~4~7which is

the date on which these

financial statements were

i ssued, and no events

have occurred from the ba lance sheet da te thmugh

that

date that

would

have

material impact

on the financial

statements.

The Boaid of Managing

Dlrectoi~

Prahlad RaI Bansal

Anli

umarChanana

Date: S’ep)-€r°~b~- ~2~,2~o1L1

Initiafd

for identjfi

tion

pur..

nly

rnst

oung Accountants LLP

BuiIdir,~ a better

workirrq world

5 hcl netherlands bv 0

Documents