in a Dynamic Environment - Domain-b

Deferred tax assets (net)Details of deferred tax assets (net) have been explainedunder the head of ‘Deferred tax liabilities (net)’.InventoriesThe Company had inventories of Rs.16.95 crore as atMarch 31, 2009 (Rs.17.19 crore as at March 31, 2008) atits Goa manufacturing plant. The inventory constitutesraw materials, components, sub-assemblies and finishedgoods.Current assets, loans and advancesUnbilled revenuesUnbilled revenues comprise revenues recognised inrelation to efforts incurred on fixed-price-fixed-timecontracts and time and material contracts not billed as ofthe year-end. Unbilled revenues were at Rs.817.06 croreas at March 31, 2009 (Rs.870.18 crore as at March 31,2008) representing 3.65% of the revenues for fiscal 2009(4.76% for fiscal 2008).Sundry debtorsSundry debtors as at March 31, 2009 aggregatedRs.3,717.73 crore (Rs.3,747.01 crore as at March 31, 2008).Provision for bad and doubtful debts in fiscal 2009 wasRs.110.08 crore (Rs.69.75 crore in fiscal 2008). Theamounts considered bad and doubtful as a percentage oftotal revenues was 0.49% as at March 31, 2009 (0.38%as at March 31, 2008). The increase in provisions for badand doubtful debts is mainly attributed to a few overseasclients facing economic difficulties and some domesticclients whose dues fell beyond stipulated period.Sundry debtors as at March 31, 2009 were 16.59 % ofrevenues for fiscal 2009 (20.49% as at March 31, 2008).Days Sales Outstanding (DSO) improved by 14 days,from 75 days as at March 31, 2008 to 61 days as atMarch 31, 2009.Cash and bank balancesThe Company had cash and bank balances ofRs.1,605.26 crore as at March 31, 2009 (Rs.527.52crore asat March 31, 2008). The balances with scheduled banks(including bank deposits and cash in transit) in Indiaaggregated Rs.1,205.58 crore as at March 31, 2009(Rs.192.09 crore as at March 31, 2008). This increase indeposits with scheduled banks is in line with the shortterminvestment strategy adopted in the presenteconomic climate. The balances with foreign banks wereRs.398.55 crore as at March 31, 2009 (Rs.333.78 crore asat March 31, 2008).Loans and advancesLoans and advances as at March 31, 2009 wereRs.3,089.85 crore (Rs.2,166.60 crore as at March 31, 2008).Significant items of loans and advances are: loans to subsidiary companies of Rs.536.79 crore asat March 31, 2009 (Rs.446.74 crore as at March 31,2008) advances recoverable in cash or kind or for value tobe received Rs.1,316.54 crore as at March 31, 2009(Rs.970.77 crore as at March 31, 2008) net advance tax (including refunds receivable)Rs.337.86 crore as at March 31, 2009 (Rs.178.47crore as at March 31, 2008) MAT credit entitlement of Rs.775.14 crore as atMarch 31, 2009 (Rs.351.58 crore as at March 31,2008) reduction in loans and advances to employeesRs.123.52 crore as at March 31, 2009 (Rs.219.04crore as at March 31, 2008).Current liabilitiesCurrent liabilities went up to Rs.3,501.13 crore as atMarch 31, 2009 as compared to Rs.2,404.18 crore as atMarch 31, 2008. This increase is primarily due to: change in fair values of foreign exchange forwardand currency option contracts Rs.683.18 crore asat March 31, 2009 (Rs.191.08 crore as at March 31,2008) increase in payables to subsidiary companiesRs.381.41 crore as at March 31, 2009 (Rs.229.56crore as at March 31, 2008) higher advances from customers Rs.197.38 crore asat March 31, 2009 (Rs.44.76 crore as at March 31,2008) increases in ‘other liabilities’, mainly on account ofsubcontracting expenses, selling and administrativeexpenses and employee incentives which are in linewith the increase in business, infrastructure andemployee base.ProvisionsProvisions made towards taxes, employee retirementbenefits, proposed dividend, tax on dividend andwarranties aggregated Rs.1,450.23 crore as atMarch 31, 2009 (Rs.1,187.44 crore as at March 31, 2008).The increase is mainly attributable to higher income taxprovisions of Rs.460.97 crore as at March 31, 2009(Rs.277.15 crore as at March 31, 2008), provision forincreased employee benefits Rs.407.29 crore as at March31, 2009 (Rs.334.83 crore as at March 31, 2008) and anadditional provision of Rs.8.19 crore for the proposeddividend on redeemable preference shares (including taxon dividend).71