Connected world - KPIT Cummins

Sr.
No.
KPIT Infosystems Inc., USA
Name of Related Party Description of Relationship Nature of Transaction Amount of Transaction
[USD]
Nature of timing difference Amount Deferred Tax Liability
Depreciation** 1,528,861 519,815
** As depreciation as per books is higher than the depreciation as per tax laws.
(`)
(USD)
Nature of timing difference Amount Deferred Tax Liability
Depreciation** 34,241 11,642
9.
** As depreciation as per books is higher than the depreciation as per tax laws.
Visa fee expenses are being written off over a period of one year in line with the policy of the holding
company, KPIT Cummins Infosystems Limited.
12
Balance as at
March 31, 2011 [USD]
5 KPIT Cummins Global Business Solutions
Ltd. [Merged with KPIT Cummins
Infosystems Ltd. Effective March 1, 2011]
Fellow Subsidiary of KPIT Cummins Infosystems Limited Reimbursement of marketing expenses to
KPIT Cummins Global Solutions Ltd.
Nil
[24,077] Nil
6 KPIT Cummins Global Business Solutions
Ltd. [Merged with KPIT Cummins
Infosystems Ltd. Effective March 1, 2011]
Fellow Subsidiary of KPIT Cummins Infosystems Limited Reimbursement of marketing expenses from
KPIT Cummins Global Solutions Ltd.
Nil
[219,125]
[(3363)]
7 Solvcentral.com Inc., USA Fellow Subsidiary of KPIT Cummins Infosystems Limited Reimbursement of marketing expenses to
1,409,612
Solv Central.Com
[ 1,339,959] 244,787
8 Solvcentral.com Inc., USA Fellow Subsidiary of KPIT Cummins Infosystems Limited Reimbursement of marketing expenses from
1,420,925
[(1,872)]
Solv Central.Com, USA
[749,741]
9 Solvcentral.com Inc., USA Fellow Subsidiary of KPIT Cummins Infosystems Limited Loan payable to Solvcentral.com. Inc. 500,000
450,000
[Nil]
[Nil]
10 KPIT Infosystems Ltd., UK Fellow Subsidiary of KPIT Cummins Infosystems Limited Reimbursement of marketing expenses to
171,039
KPIT Infosystems Ltd., UK
[47,407] 47,487
11 KPIT Infosystems Ltd., UK Fellow Subsidiary of KPIT Cummins Infosystems Limited Reimbursement of marketing expenses from
Nil
[(49,842)]
KPIT Infosystems Ltd., UK
[2,100]
12 KPIT Infosystems Central Europe Sp.z.o.o.
[Merged with KPIT Cummins Infosystems
Ltd. Effective March 1, 2011]
Fellow Subsidiary of KPIT Cummins Infosystems Limited Reimbursement of marketing expenses from
KPIT Infosystems Central Europe Sp.z.o.o.
Nil
[Nil]
Nil
[12,167]
13 Sparta Consulting Inc., USA Fellow Subsidiary of KPIT Infosystems Inc Loan given to Sparta Consulting inc.USA 2,500,000
5,500,000
[3,000,000]
[3,000,000]
14 Sparta Consulting Inc., USA Fellow Subsidiary of KPIT Infosystems Inc Interest on Loan given to Sparta Consulting
87,565
63,976
Inc., USA
[1,772]
[1,772]
15 Sparta Consulting Inc., USA Fellow Subsidiary of KPIT Infosystems Inc Reimbursement of expenses from Sparta
625,294
625,294
Consulting Inc., USA
[Nil]
[Nil]
16 Sachin Tikekar Key Management Personnel Salary and Reimbursement of expenses 7,231
Nil
[10,042]
[Nil]
17 Chinmay Pandit Relative of Key Management Personnel Salary and Reimbursement of expenses 3,217
Nil
[141,436]
[Nil]
18 Jayada Pandit Relative of Key Management Personnel Salary and Reimbursement of expenses 2,009
Nil
[29,255]
[Nil]
19 Nitin Tarte Key Management Personnel Salary and Reimbursement of expenses Nil
Nil
[18,763]
Nil
The previous years fi gures are shown in brackets.
6. Income Taxes
10. The previous year’s fi gures have been regrouped, wherever necessary, to confi rm to the current
Net Provision of ` 50,326,660 (USD 1,103,817) has been made in the books for the current year
year’s classifi cation.
2010-11 based on tax laws in USA in respect of Federal Tax & State Tax. The Company has provided 11. The Company is a wholly owned subsidiary of KPIT Cummins Infosystems Limited. The accounts
deferred Tax Liability of ` 142,661 (USD 3,129) on the timing difference arising on account of carried
have been prepared and audited to attach to the accounts of KPIT Cummins Infosystems Limited, the
forward losses and taxes under the provisions of minimum alternate tax.
holding company to comply with the provisions of Section 212 of the Companies Act, 1956 in India.
7. Maximum Bank Balances
12. During 2009-10, KPIT Infosystems Inc., USA, had acquired 100% shares of Sparta Consulting Inc.,
USA (California based SAP solutions Firm) for initial merger consideration of USD 8,000,000 and
Sr. Bank Name Nature of Account Maximum Balance
the same is a wholly owned subsidiary of KPIT Infosystems Inc., USA. KPIT Infosystems Inc., USA
No.
(`)
shall pay Additional Merger Consideration to the equity holders of Sparta Consulting Inc aggregate
1. Citi Bank USD - Current a/c 472,775,130
amount not exceeding USD 24,000,000. The payment of additional merger consideration is based on
the achievement of the performance targets set forth in the agreement over the performance period
2. Citi Bank Health Insurance Insurance - Current a/c 5,187,173
which commences on January 1, 2010 and ending on December 31, 2012. KPIT Infosystems Inc,
USA will also pay Deferred Merger Consideration on the second anniversary of the Closing Date, not
Sr. Bank Name Nature of Account Maximum Balance
exceeding an amount of USD 2,000,000.
No.
(USD)
During the current year KPIT Infosystems Inc., USA has granted an additional loan of USD 2,550,000
1. Citi Bank USD - Current a/c 10,588,469
to Sparta Consulting Inc. (Total Loan amt 5.500,000).
2. Citi Bank Health Insurance Insurance - Current a/c 116,174
13. The above fi nancial statements are prepared from the internally prepared management Accounts of
the Company. The same management Accounts are audited in order for the Group Auditors to give
8. Pursuant to the Accounting Standard (AS-22) on “Accounting for taxes on income” issued by the
an audit opinion in relation to Group Accounts. However, no separate audit report is given in respect
Institute of Chartered Accountants of India which is mandatory, the Company has considered the
of the company. An audit report for the Group is issued by Deloitte Haskins & Sells and is included
effect of timing differences in the tax expenses in the Profi t and Loss Account and deferred tax a
asset/liability in the Balance Sheet.
in its fi nancial statements.
For and on behalf of the Board of Directors
Pune Kishor Patil Ajay Bhagwat
April 25, 2011 Chairman Director