Connected world - KPIT Cummins

KPIT Infosystems France SAS (formerly known as Pivolis SAS)
Schedules annexed to Profi t and Loss Account for the year ended
(Pursuant to Section 212 of the Companies Act, 1956)
March 31, 2011 March 31, 2010
Euro
SCHEDULE - X
SOFTWARE DEVELOPMENT EXPENSES
` Euro `
Salaries and bonus – – – –
Contribution to provident and other funds – – – –
Consultancy charges 3,526,857 212,848,769 3,145,565 210,152,594
Total 3,526,857 212,848,769 3,145,565 210,152,594
SCHEDULE - XI
SELLING AND MARKETING EXPENSES
Marketing Expenses 14,747 889,983 25,574 1,708,571
Marketing Travel Expenses 118,856 7,173,033 104,164 6,959,077
Total 133,602 8,063,017 129,737 8,667,648
SCHEDULE - XII
General and Administration Expenses
Salaries and bonus 1,304,636 78,735,857 1,288,865 86,107,983
Staff Welfare 18,339 1,106,796 174 11,625
Recruitment and Training Expenses 30,062 1,814,250 21,625 1,444,748
Rent, Rates and taxes 131,885 7,959,358 154,547 10,325,139
Communication Expenses 48,363 2,918,771 35,883 2,397,317
Professional and Legal Expenses 91,485 5,521,174 82,186 5,490,756
Printing and stationery 1,618 97,636 3,143 209,981
Repairs to Plant and Machinery
Repairs to Others
Power and Fuel
2,648 159,839 12,000 801,710
Insurance Charges 1,656 99,925 949 63,392
Audit fees 5,127 309,408 4,308 287,830
Provision for doubtful debts 45,410 2,740,531 (10,265) (685,775)
Loss on Sale of Assets 2,953 178,219 – –
Bad Debts – – – –
Offi ce Expenses 35,830 2,162,351 58,388 3,900,884
Total 1,720,012 103,804,115 1,651,804 110,355,590
SCHEDULE - XIII
INTEREST, NET
Financial charges 9,334 563,322 14,447 965,181
Lease Rent – – – –
9,334 563,322 14,447 965,181
Less: Interest income – – – –
Total 9,334 563,322 14,447 965,181
SCHEDULE - XIV
OTHER INCOME
Foreign Exchange Fluctuation Gains 7,306 440,905 – –
Other Income 9,337 563,514 – –
Total 16,643 1,004,419 – –
For and on behalf of the Board of Directors
Pune Kishor Patil
April, 25, 2011 Chairman
26
SCHEDULE XV - NOTES TO ACCOUNTS
1. Going Concern
The Company became subsidiary of KPIT Cummins Infosystems Ltd. (The holding Company) with
effect from April 1, 2006 wherein the holding company acquired 73% shares in a phased manner
in accordance with Joint Venture agreement dated November 8, 2005. During the year 2007-08 the
holding company has increased its investment in the Company up to 74.5%. During the year 2008-09
the Company has increased its holding to 100%.
The Company has made a profi t of ` 1,219,944 (EUR 20,214) in the current fi nancial year. The
accumulated Profi t till March, 2011 of ` 17,650,703 (EUR 264,939) and the Working Capital of
` 20,069,608 (EUR 317,356) as of that date has presently been funded by the holding company, by
way of capital contribution.
2. Signifi cant Accounting Policies
a) Basis for preparation of fi nancial statements
The fi nancial statements have been prepared on historical cost convention on accrual basis, in
accordance with Generally Accepted Accounting Principles (GAAP) as applicable in India and
the provisions of the Companies Act, 1956. The accounting standards issued by the Institute
of Chartered Accountants of India have been complied with to the extent applicable to the
Company.
All income and expenditure having a material bearing on the fi nancial statements are
recognised on the accrual basis.
b) Revenue recognition
Revenue from software development and services on time and material basis is recognized
based on software development, services rendered and billed to clients as per the contractual
obligations. In case of fi xed price contracts, revenue is recognized based on the milestone/s
achieved as agreed upon in the contract on proportionate completion basis.
c) Expenditure
Expenses are accounted on an accrual basis and provisions are made for all known losses and
liabilities.
d) Fixed Assets
Fixed assets are stated at the cost of acquisition, less accumulated depreciation. Direct costs
are capitalized till the assets are ready to put to use. Fixed assets taken on lease are written off
over the lease period.
e) Depreciation
Depreciation on fi xed asset of the Company is provided on expected useful life of the assets at
the following rates:
Class of Asset Rate of Depreciation
Computer Hardware 33.33% - SLM
Leasehold Improvement Amortized over period of lease
f) Impairment of Assets
Management periodically assesses using, external and internal sources, whether there is an
indication that an asset may be impaired. Impairment occurs where the carrying value exceeds
the present value of future cash fl ows expected to arise from the continuing use of
the asset and its eventual disposal. The impairment loss to be expensed is determined as the
excess of the carrying amount over the higher of the asset's net sales price or present value as
determined above.
During the year under consideration, there was no indication, either internal or external as to
the impairment of any of the assets.
g) Foreign Currency Transactions
The transactions with respect to the income and expenditure in foreign currency are recorded
at a monthly average exchange rate, which is near to the actual rate. The exchange differences
arising either on settlement or on translation of foreign currency transactions are recognized in
the profi t and loss account in the year in which they arise.