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As Of Filer Filing For·On·As Docs:Size Issuer Agent 7/25/08 Satyam Computer Services Ltd 6-K 6/30/08 8:2.9M RR DONN… FundSuiteArc/FA |
Document/Exhibit Description Pages Size 1: 6-K Satyam Computer Services Limited HTML 285K 2: EX-99.1 EX-99.1 Press Release of the Company, Dated July HTML 29K 18, 2008, Concerning Financial Results 3: EX-99.2 EX-99.2 Summary of Financial Results of the HTML 124K Company, Dated July 18, 2008. 4: EX-99.3 EX-99.3 Investor Link News Update of the Company HTML 175K Dated July 18, 2008. 5: EX-99.4 EX-99.4 Unconsolidated/Standalone Financial HTML 414K Statements for the Quarter Ended June 30, 2008 as Per Indian Gaap (Audited). 6: EX-99.5 EX-99.5 Consolidated Financial Statements for the HTML 420K Quater Ended June 30, 2008 as Per Indian Gaap (Unaudited). 7: EX-99.6 EX-99.6 Consolidated Financial Statements for the HTML 629K Quarter Ended June 30, 2008 as Per Ifrs (Unaudited). 8: EX-99.7 EX-99.7 Consolidated Financial Statements for the HTML 376K Quarter Ended June 30, 2008 as Per Us Gaap (Unaudited).
EX-99.5 Consolidated FS under Indian GAAP |
a) | Basis of Consolidation | |
The Consolidated Financial Statements include the accounts of Satyam Computer Services and its subsidiary companies. Subsidiary companies are those in which Satyam Computer Services, directly or indirectly, have an interest of more than one half of the voting power or otherwise have power to exercise control over the operations. Subsidiaries are consolidated from the date on which effective control is transferred to the Group and are no longer consolidated from the date of disposal. | ||
All inter company transactions, balances and unrealized surpluses and deficits on transactions between Group companies are eliminated. Consistency in adoption of accounting polices among all group companies is ensured to the extent practicable. Separate disclosure is made of minority interest. | ||
Investments in Business entities over which the company exercises joint control are accounted for using the proportionate consolidation except where the control is considered to be temporary. Investment in associates are accounted for using the equity method. | ||
On occasion, a subsidiary or associated company accounted for by the equity method (“offering company”) may issue its shares to third parties as either a public offering or private placement at per share amounts in excess of or less than Satyam’s average per share carrying value. With respect to such transactions, the resulting gains or losses arising from the dilution of interest are recorded as Capital Reserve/Goodwill. Gain or losses arising on the direct sales by Satyam of its investment in its subsidiaries or associated companies to third parties are transferred to Profit and Loss Account. Such gains or losses are the difference between the sale proceeds and net carrying value of investments. | ||
Minority Interest in subsidiaries represents the minority shareholders proportionate share of net assets and the net income of Satyam’s majority owned subsidiaries. | ||
b) | Use of Estimates | |
The preparation of the financial statements in conformity with the GAAP requires that the management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the reported period / year. Actual results could differ from those estimates. | ||
c) | Revenue Recognition |
i) | IT Services |
Revenue from professional services consist primarily of revenue earned from services performed on a “time and material” basis. The related revenue is recognized as and when the services are performed. Satyam Computer Services also performs time bound fixed-price engagements, under which revenue is recognized using the percentage of completion method of accounting. The cumulative impact of any revision in estimates of the percentage of work completed is reflected in the period / year in which the change becomes known. Provisions for estimated losses on such engagements are made during the period / year in which a loss becomes probable and can be reasonably estimated. |
1
Amounts received or billed in advance of services performed are recorded as advance from customers/unearned revenue. Unbilled revenue, included in debtors, represents amounts recognized based on services performed in advance of billing in accordance with contract terms. |
ii) | Business Process Outsourcing |
Revenue from per engagement services is recognized based on the number of engagements performed. Revenues from per time period services are recognized based on the time incurred in providing services at contracted rates. Revenue from per incident services is based on the performance of specific criteria at contracted rates. | ||
d) | Foreign Currency Transactions/Translations | |
Transactions in foreign currency are recorded at exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currency are translated at the rate of exchange at the balance sheet date and resultant gain or loss is recognized in the profit and loss account. | ||
Non-monetary assets and liabilities are translated at the rate prevailing on the date of transaction. | ||
Foreign subsidiaries are non-integral in nature. Assets and Liabilities of such subsidiaries are translated at the period / year end exchange rate, income and expenditure are translated at the average rate during the period. The resultant translation adjustment is reflected as a separate component of shareholders’ funds as a ‘Currency Translation Reserve’. | ||
Gain or loss on forward exchange contract is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between the forward rate available at the reporting date for the remaining maturity of the contract and the contracted forward rate (or the forward rate last used to measure a gain or loss on that contract for an earlier period / year), is recognized in the profit and loss account for the period / year. | ||
Gains/losses on settlement of transaction arising on cancellation or renewal of a forward exchange contract is recognized as income or as expense for the period / year. | ||
Pursuant to ICAI announcement of “Accounting for Derivatives” on the early adoption of Accounting Standard AS-30 “Financial Instruments: Recognisation and Measurement”, Satyam Computer Services has early adopted the standard for the period / year under review, to the extent that the adoption does not conflict with existing mandatory accounting standards and other authoritative pronouncements, Company law and other regulatory requirements. | ||
e) | Fixed Assets | |
Fixed assets are stated at actual cost less accumulated depreciation. The actual cost capitalized includes material cost, freight, installation cost, duties and taxes, finance charges and other incidental expenses incurred during the construction/installation stage. | ||
Depreciation on fixed assets is computed on the straight line method over their estimated useful lives at the rates which are higher than the rates prescribed under Schedule XIV of the Companies Act, 1956. Individual assets acquired for less than Rs. 5,000 are entirely depreciated in the period / year of acquisition. | ||
The cost of and the accumulated depreciation for fixed assets sold, retired or otherwise disposed off are removed from the stated values and the resulting gains and losses are included in the profit and loss account. | ||
Costs of application software for internal use are generally charged to revenue as incurred due to its estimated useful lives being relatively short, usually less than one year. | ||
The estimated useful lives are as follows: |
Buildings
|
28 years | |
Computers
|
2 years | |
Plant and Machinery (Other than Computers)
|
5 years | |
Software — used in Development for Projects
|
3 years | |
Office Equipment
|
5 years | |
Furniture, Fixtures and Interiors
|
5 years | |
Vehicles
|
5 years |
Capital work in Progress: | ||
Assets under installation or under construction as at the Balance sheet date are shown as capital work in progress. Advances paid towards acquisition of assets are also included under capital work in progress. |
2
f) | Goodwill and Other Intangible Assets | |
Goodwill represents the difference between the purchase price and the book value of assets and liabilities acquired. Goodwill is amortized over the useful life of the asset. The goodwill is reviewed for impairment whenever events or changes in business circumstances indicate the carrying amount of assets may not be fully recoverable. If impairment is indicated, the asset is written down to its fair value. | ||
g) | Investments | |
Investments are classified into current investments and long-term investments. Current investments are carried at the lower of cost and market value. Any reduction in carrying amount and any reversals of such reductions are charged or credited to the profit and loss account. Long-term investments are carried at cost less provision made to recognize any decline, other than temporary, in the value of such investments. | ||
h) | Inventories | |
Inventories are stated at the lower of cost and net realizable value. Cost of hardware and software purchased for the purpose of resale is determined using the first-in-first-out method. | ||
i) | Employee Benefits | |
Contributions to defined schemes such as Provident Fund, Employee State Insurance Scheme and Superannuation are charged as incurred on accrual basis. Satyam Computer Services also provides for gratuity and leave encashment in accordance with the requirements of revised Accounting Standard — 15 “Employee Benefits” based on actuarial valuation carried out as at the balance sheet date. | ||
j) | Taxes on Income | |
Tax expense for a year comprises of current tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the period / year of change. Deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. | ||
k) | Earnings per Share | |
The earnings considered in ascertaining Satyam’s Earnings Per Share (EPS) comprises the net profit after tax (and includes the post tax effect of any extra ordinary items). The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the period / year. The number of shares used in computing Diluted EPS comprises of weighted average shares considered for deriving Basic EPS, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period / year, unless they have been issued at a later date. The diluted potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). The number of shares and potentially dilutive shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate. | ||
l) | Associate Stock Option Scheme | |
Stock options granted to the employees under the stock option schemes established after June 19, 1999 are evaluated as per the accounting treatment prescribed by Employee Stock Option Scheme and Employee Stock Purchase Scheme Guidelines 1999 issued by Securities and Exchange Board of India. Accordingly the excess of market value of the stock options as on the date of grant over the exercise price of the options is recognized as deferred employee compensation and is charged to profit and loss account on graded vesting basis over the vesting period of the options. The employee stock option outstanding is shown under Reserves and Surplus. | ||
m) | Research and Development | |
Revenue expenditure incurred on research and development is charged to revenue in the period / year in which it is incurred. Assets used for research and development activities are included in fixed assets. |
3
Rs. in crores | ||||||||||||||
As at | As at | As at | ||||||||||||
Schedule | 30.06.2008 | 30.06.2007 | 31.03.2008 | |||||||||||
Reference | (Unaudited) | (Unaudited) | (Audited) | |||||||||||
I. Sources of Funds : |
||||||||||||||
1. Shareholders’ Funds |
||||||||||||||
(a) Share Capital |
1 | 134.50 | 179.03 | 134.10 | ||||||||||
(b) Share application money, pending allotment |
0.10 | 4.52 | 1.83 | |||||||||||
(c) Reserves and Surplus |
2 | 7,702.60 | 5,974.07 | 7,103.27 | ||||||||||
7,837.20 | 6,157.62 | 7,239.20 | ||||||||||||
2. Loan Funds |
||||||||||||||
Secured Loans |
3 | 215.65 | 178.50 | 216.65 | ||||||||||
8,052.85 | 6,336.12 | 7,455.85 | ||||||||||||
II. Application of Funds : |
||||||||||||||
1. Fixed Assets |
4 | |||||||||||||
(a) Gross Block |
2,126.21 | 1,604.64 | 1,960.19 | |||||||||||
(b) Less: Depreciation / Amortisation |
1,189.55 | 1,021.54 | 1,141.73 | |||||||||||
(c) Net Block |
936.66 | 583.10 | 818.46 | |||||||||||
(d) Capital Work in Progress |
558.19 | 296.26 | 460.95 | |||||||||||
1,494.85 | 879.36 | 1,279.41 | ||||||||||||
2. Investments |
5 | — | — | — | ||||||||||
3. Deferred Tax Assets (net) |
6 | 91.44 | 41.34 | 87.18 | ||||||||||
4. Current Assets, Loans and Advances |
||||||||||||||
(a) Inventories |
7 | 0.03 | 0.04 | 0.09 | ||||||||||
(b) Sundry Debtors |
8 | 2,785.54 | 1,857.73 | 2,370.28 | ||||||||||
(c) Cash and Bank Balances |
9 | 4,852.13 | 4,092.79 | 4,502.42 | ||||||||||
(d) Loans and Advances |
10 | 442.26 | 280.88 | 391.92 | ||||||||||
(e) Other Current Assets |
||||||||||||||
— Interest Accrued on Fixed Deposits |
324.18 | 116.56 | 272.50 | |||||||||||
8,404.14 | 6,348.00 | 7,537.21 | ||||||||||||
Less: Current Liabilities and Provisions |
||||||||||||||
(a) Liabilities |
11 | 1,331.66 | 497.53 | 897.71 | ||||||||||
(b) Provisions |
12 | 605.92 | 435.05 | 550.24 | ||||||||||
1,937.58 | 932.58 | 1,447.95 | ||||||||||||
Net Current Assets |
6,466.56 | 5,415.42 | 6,089.26 | |||||||||||
8,052.85 | 6,336.12 | 7,455.85 | ||||||||||||
Notes to Accounts |
18 |
For and on behalf of the Board of Directors | ||||
B. Ramalinga Raju Chairman |
B. Rama Raju Managing Director |
|||
V. Srinivas Director & Sr. Vice President — Finance |
G. Jayaraman Global Head (Corp. Governance) & Company Secretary |
|||
Place : Secunderabad Date : July 18, 2008 |
4
Rs. in crores | ||||||||||||||
For the | For the | For the | ||||||||||||
Quarter ended | Quarter ended | Year ended | ||||||||||||
Schedule | 30.06.2008 | 30.06.2007 | 31.03.2008 | |||||||||||
Reference | (Unaudited) | (Unaudited) | (Audited) | |||||||||||
Income |
||||||||||||||
Services |
||||||||||||||
— Exports |
2,542.81 | 1,776.94 | 8,220.84 | |||||||||||
— Domestic |
78.02 | 53.25 | 252.65 | |||||||||||
Other Income |
13 | 33.12 | 63.20 | 267.20 | ||||||||||
2,653.95 | 1,893.39 | 8,740.69 | ||||||||||||
Expenditure |
||||||||||||||
Personnel Expenses |
14 | 1,541.21 | 1,106.18 | 5,259.50 | ||||||||||
Cost of Software and Hardware sold |
15 | 0.26 | 0.25 | 2.32 | ||||||||||
Operating and Administration Expenses |
16 | 447.09 | 313.47 | 1,376.84 | ||||||||||
Financial Expenses |
17 | 5.74 | 3.32 | 20.19 | ||||||||||
Depreciation / Amortisation |
46.70 | 38.69 | 163.59 | |||||||||||
2,041.00 | 1,461.91 | 6,822.44 | ||||||||||||
Profit Before Taxation |
612.95 | 431.48 | 1,918.25 | |||||||||||
Provision for Taxation — Current |
63.88 | 47.43 | 257.38 | |||||||||||
— Fringe Benefit |
6.44 | 3.42 | 16.47 | |||||||||||
— Deferred |
(5.07 | ) | 2.31 | (43.49 | ) | |||||||||
Profit After Taxation and Before Minority Interest |
547.70 | 378.32 | 1,687.89 | |||||||||||
Minority Interest |
— | — | — | |||||||||||
Profit After Taxation and Minority Interest |
547.70 | 378.32 | 1,687.89 | |||||||||||
Add: Balance brought forward |
4,243.04 | 3,001.50 | 3,001.50 | |||||||||||
Less: Residual dividend and additional dividend tax |
— | — | 0.37 | |||||||||||
Profit Available for Appropriation |
4,790.74 | 3,379.82 | 4,689.02 | |||||||||||
Appropriations : |
||||||||||||||
Interim Dividend (2008 — Rs. 1.00 per Equity Share) |
— | — | 66.88 | |||||||||||
Final Dividend (2008 — Rs. 2.50 per Equity Share) |
— | — | 167.64 | |||||||||||
Tax on dividends |
— | — | 39.86 | |||||||||||
Transfer to General Reserve |
— | — | 171.60 | |||||||||||
Balance carried to Balance Sheet |
4,790.74 | 3,379.82 | 4,243.04 | |||||||||||
Earnings Per Share (Rs. per equity share of Rs. 2 each) |
||||||||||||||
Basic |
8.16 | 5.67 | 25.24 | |||||||||||
Diluted |
8.00 | 5.53 | 24.71 | |||||||||||
No. of Shares used in computing Earnings Per Share |
||||||||||||||
Basic |
671,378,359 | 667,398,284 | 668,673,978 | |||||||||||
Diluted |
684,679,265 | 684,730,168 | 683,138,400 | |||||||||||
Notes to Accounts |
18 |
For and on behalf of the Board of Directors | ||||
B. Ramalinga Raju Chairman |
B. Rama Raju Managing Director |
|||
V. Srinivas Director & Sr. Vice President — Finance |
G. Jayaraman Global Head (Corp. Governance) & Company Secretary |
|||
Place : Secunderabad Date : July 18, 2008 |
5
Rs. in crores | |||||||||||||||
As at | As at | As at | |||||||||||||
30.06.2008 | 30.06.2007 | 31.03.2008 | |||||||||||||
(Unaudited) | (Unaudited) | (Audited) | |||||||||||||
1. |
Share Capital | ||||||||||||||
Authorised : | |||||||||||||||
800,000,000 Equity Shares of Rs. 2 each | 160.00 | 160.00 | 160.00 | ||||||||||||
100,000,000 0.05% Convertible Redeemable Cumulative Preference Shares of Rs. 10 each | 100.00 | 100.00 | 100.00 | ||||||||||||
Issued and Subscribed : | |||||||||||||||
672,508,520 ( June 30, 2007 — 667,670,523; March 31, 2008 — 670,479,293 ) Equity Shares of Rs.2 each fully paid-up | 134.50 | 133.53 | 134.10 | ||||||||||||
Nil ( June 30, 2007 — 45,504,999; March 31, 2008 — Nil ) 0.05% Convertible Redeemable Cumulative Preference Shares of Rs. 10 each fully paid-up | — | 45.50 | — | ||||||||||||
(Refer note (d) of Schedule 18 ) | |||||||||||||||
134.50 | 179.03 | 134.10 | |||||||||||||
Out of the above: | |||||||||||||||
4,000,000 Equity Shares of Rs. 2 each were allotted as fully paid-up for consideration other than cash pursuant to the Scheme of Amalgamation with Satyam Enterprise Solutions Limited | |||||||||||||||
468,289,738 Equity Shares of Rs. 2 each were allotted as fully paid-up by way of Bonus Shares by capitalising free reserves of Satyam Computer Services | |||||||||||||||
130,589,508 ( June 30, 2007 — 130,245,596; March 31, 2008 — 130,490,460) Equity Shares of Rs. 2 each fully paid-up were alloted to associates of Satyam Computer Services representing 65,302,474 (June 30, 2007 — 65,122,798; March 31, 2008 — 65,245,230) American Depository Shares | |||||||||||||||
43,292,631 ( June 30, 2007 — 38,590,523; March 31, 2008 — 41,263,404) Equity Shares of Rs. 2 each fully paid-up were alloted to associates of Satyam Computer Services pursuant to the Associate Stock Option Plan - B (ASOP-B) and Associate Stock Option Plan (ADS ) (ASOP-ADS) | |||||||||||||||
26,726 ( June 30, 2007 — Nil; March 31, 2008 — 15,440) Equity Shares of Rs. 2 each fully paid-up were alloted to associates of Satyam Computer Services representing 13,363 ( June 30, 2007 — Nil; March 31, 2008 — 7,720) Restricted Stock Units (ADS) | |||||||||||||||
286,953 ( June 30, 2007 — Nil; March 31, 2008 — 120,449) Equity Shares of Rs. 2 each fully paid-up were alloted to associates of Satyam Computer Services pursuant to the Restricted Stock Units (ASOP) | |||||||||||||||
2. |
Reserves and Surplus | ||||||||||||||
Share Premium Account | |||||||||||||||
As at April 1 | 1,357.71 | 1,321.18 | 1,321.18 | ||||||||||||
Add: Received on account of issue of ASOP-B and ASOP-ADS* | 42.75 | 7.74 | 66.58 | ||||||||||||
Less: Utilised during the year* | 9.34 | — | 30.05 | ||||||||||||
1,391.12 | 1,328.92 | 1,357.71 | |||||||||||||
*Refer note (s) of Schedule 18 | |||||||||||||||
Capital Reserve | |||||||||||||||
As at April 1 | 768.52 | 765.65 | 765.65 | ||||||||||||
Add: Gain on dilution on conversion of ESOP of Subsidiary | — | — | 2.87 | ||||||||||||
768.52 | 765.65 | 768.52 | |||||||||||||
General Reserve | |||||||||||||||
As at April 1 | 637.90 | 466.46 | 466.46 | ||||||||||||
Add : Transfer from the Profit and Loss Account | — | — | 171.60 | ||||||||||||
Less : Provision for leave encashment | — | 0.16 | |||||||||||||
637.90 | 466.46 | 637.90 | |||||||||||||
Currency Translation Reserve | 0.17 | (6.91 | ) | (5.63 | ) | ||||||||||
Employee Stock Options | |||||||||||||||
Employee Stock Options Outstanding | 185.78 | 183.47 | 181.71 | ||||||||||||
Less: Deferred Employee Compensation | 71.63 | 143.34 | 79.98 | ||||||||||||
114.15 | 40.13 | 101.73 | |||||||||||||
Balance in Profit and Loss Account | 4,790.74 | 3,379.82 | 4,243.04 | ||||||||||||
7,702.60 | 5,974.07 | 7,103.27 | |||||||||||||
3. |
Secured Loans | ||||||||||||||
Bank Overdraft | 86.14 | 48.74 | 89.82 | ||||||||||||
External Commercial Borrowing | 40.59 | 42.58 | 41.77 | ||||||||||||
Working Capital Loans | 28.00 | 43.00 | 43.00 | ||||||||||||
Export Packing Credit | 30.80 | 25.64 | 17.19 | ||||||||||||
Vehicle Loans | 29.39 | 18.23 | 24.17 | ||||||||||||
Interest accrued and due | 0.73 | 0.31 | 0.70 | ||||||||||||
215.65 | 178.50 | 216.65 | |||||||||||||
6
Rs. in crores | ||||||||||||||||||||||||||||||||||||||||||||||||
GROSS BLOCK | DEPRECIATION / AMORTISATION | NET BLOCK | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of | Acquisition of | As at | As at | |||||||||||||||||||||||||||||||||||||||||||||
As at | subsidiary | As at | As at | subsidiary | For the | As at | 30.06.2008 | 31.03.2008 | ||||||||||||||||||||||||||||||||||||||||
DESCRIPTION | 01.04.2008 | companies | Additions | Deletions | 30.06.2008 | 01.04.2008 | companies | period @ | On Deletions | 30.06.2008 | (Unaudited) | (Audited) | ||||||||||||||||||||||||||||||||||||
1. Goodwill |
339.62 | — | 104.08 | — | 443.70 | — | — | — | — | — | 443.70 | 339.62 | ||||||||||||||||||||||||||||||||||||
2. Land & Land Development |
||||||||||||||||||||||||||||||||||||||||||||||||
—Freehold* |
38.24 | — | — | — | 38.24 | — | — | — | — | — | 38.24 | 38.24 | ||||||||||||||||||||||||||||||||||||
—Leasehold |
8.90 | — | — | — | 8.90 | 0.05 | — | — | — | 0.05 | 8.85 | 8.85 | ||||||||||||||||||||||||||||||||||||
3. Buildings** |
117.22 | — | — | — | 117.22 | 20.95 | — | 1.04 | — | 21.99 | 95.23 | 96.27 | ||||||||||||||||||||||||||||||||||||
4. Plant and Machinery |
1,108.62 | 0.83 | 27.87 | 0.03 | 1,137.29 | 895.03 | 0.47 | 33.97 | 0.02 | 929.45 | 207.84 | 213.59 | ||||||||||||||||||||||||||||||||||||
(Including Computers and Software) |
||||||||||||||||||||||||||||||||||||||||||||||||
5. Office Equipment |
46.03 | — | 2.42 | — | 48.45 | 27.46 | — | 2.29 | — | 29.75 | 18.70 | 18.57 | ||||||||||||||||||||||||||||||||||||
6. Furniture, Fixtures and Interiors*** |
246.46 | 0.67 | 26.36 | — | 273.49 | 176.77 | 0.55 | 7.59 | — | 184.91 | 88.58 | 69.69 | ||||||||||||||||||||||||||||||||||||
7. Vehicles |
55.10 | — | 5.23 | 1.41 | 58.92 | 21.47 | — | 2.69 | 0.76 | 23.40 | 35.52 | 33.63 | ||||||||||||||||||||||||||||||||||||
Total |
1,960.19 | 1.50 | 165.96 | 1.44 | 2,126.21 | 1,141.73 | 1.02 | 47.58 | 0.78 | 1,189.55 | 936.66 | 818.46 | ||||||||||||||||||||||||||||||||||||
As at 30.06.2007 |
1,505.44 | — | 101.73 | 2.53 | 1,604.64 | 984.79 | — | 38.45 | 1.70 | 1,021.54 | 583.10 | — | ||||||||||||||||||||||||||||||||||||
* | Includes Rs. 12.24 crores (March 31, 2008 — Rs. 12.24 crores) in respect of which deed of conveyance is pending. | |
** | Include Rs. 38.85 crores (March 31, 2008 — Rs. 38.85 crores) constructed on leasehold land. | |
*** | include Rs. 21.96 crores (March 31, 2008 — Rs. Nil) leasehold furniture, fixtures and interiors. | |
@ | Depreciation for the period includes Rs. 0.88 crores ( June 30, 2007 — (Rs. 0.24 crores); March 31, 2008 — Rs. 0.27 crores) considered in Currency Translation Reserve due to translation of non-integral foreign subsidiaries. |
7
Rs. in crores | ||||||||||||||||||||||||||||
As at 30.06.2008 | As at 30.06.2007 | As at 31.03.2008 | ||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||||||||||||||||||
5. |
Investments | |||||||||||||||||||||||||||
Long Term — At Cost | ||||||||||||||||||||||||||||
i) |
Trade (Unquoted ) | |||||||||||||||||||||||||||
Other Investments | ||||||||||||||||||||||||||||
Jasdic Park Company | ||||||||||||||||||||||||||||
(480 Shares of J Yen 50,000 each, fully paid-up) | 0.75 | 0.75 | 0.75 | |||||||||||||||||||||||||
Less: Received on liquidation | 0.26 | 0.26 | 0.26 | |||||||||||||||||||||||||
Less : Provision for diminution | 0.49 | — | 0.49 | — | 0.49 | — | ||||||||||||||||||||||
Intouch Technologies Limited | ||||||||||||||||||||||||||||
(833,333 Shares of 20 US cents each, fully paid-up) | 10.90 | 10.90 | 10.90 | |||||||||||||||||||||||||
Less : Provision for diminution | 10.90 | — | 10.90 | — | 10.90 | — | ||||||||||||||||||||||
Medbiquitious Services Inc., | ||||||||||||||||||||||||||||
(334,000 shares of ‘A’ series Preferred Stock of US $0.001 each, fully paid-up) | 1.57 | 1.57 | 1.57 | |||||||||||||||||||||||||
Less : Provision for diminution | 1.57 | — | 1.57 | — | 1.57 | — | ||||||||||||||||||||||
Avante Global LLC., | ||||||||||||||||||||||||||||
(577,917 class ‘A’ units representing a total value of US $540,750 fully paid-up ) | 2.54 | 2.54 | 2.54 | |||||||||||||||||||||||||
Less : Provision for diminution | 2.54 | — | 2.54 | — | 2.54 | — | ||||||||||||||||||||||
ii) |
Non Trade (Unquoted) | |||||||||||||||||||||||||||
National Savings Certificates,VIII Series | ||||||||||||||||||||||||||||
(Lodged as security with government authorities ) | ||||||||||||||||||||||||||||
— | — | — | ||||||||||||||||||||||||||
8
Rs. in crores | ||||||||||||||
As at | As at | As at | ||||||||||||
30.06.2008 | 30.06.2007 | 31.03.2008 | ||||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||||
6. |
Deferred Tax Assets (net) | |||||||||||||
Debtors — Provision for doubtful debts | 12.90 | 11.89 | 13.28 | |||||||||||
Advances — Provision for doubtful advances | 1.44 | 1.45 | 1.45 | |||||||||||
Fixed Assets — Depreciation | (5.09 | ) | (28.80 | ) | (5.65 | ) | ||||||||
Others — Retirement Benefits etc. | 82.19 | 56.80 | 78.10 | |||||||||||
91.44 | 41.34 | 87.18 | ||||||||||||
7. |
Inventories | |||||||||||||
(At lower of cost and Net realisable value) | ||||||||||||||
Traded software and hardware | 0.03 | 0.04 | 0.09 | |||||||||||
8. |
Sundry Debtors (Unsecured) | |||||||||||||
Considered good * | ||||||||||||||
(a) Over six months old | 103.71 | 32.81 | 96.76 | |||||||||||
(b) Other debts | 2,681.83 | 1,824.92 | 2,273.52 | |||||||||||
2,785.54 | 1,857.73 | 2,370.28 | ||||||||||||
Considered doubtful | 138.87 | 102.08 | 124.15 | |||||||||||
2,924.41 | 1,959.81 | 2,494.43 | ||||||||||||
Less: Provision for doubtful debts | 138.87 | 102.08 | 124.15 | |||||||||||
2,785.54 | 1,857.73 | 2,370.28 | ||||||||||||
* Debtors include
Unbilled Revenue — Rs. 418.73 crores ( June 30, 2007 — Rs. 188.12 crores; March 31, 2008 — Rs. 321.38 crores) |
||||||||||||||
9. |
Cash and Bank Balances | |||||||||||||
Cash on hand | 0.09 | 0.09 | 0.10 | |||||||||||
Remittances in Transit | 0.38 | — | 1.34 | |||||||||||
Balances with Scheduled Banks | ||||||||||||||
— on Current accounts | 1,346.80 | 612.49 | 965.70 | |||||||||||
— on Deposit accounts | 3,326.10 | 3,324.19 | 3,325.24 | |||||||||||
Unclaimed Dividend Accounts | 7.13 | 6.26 | 6.99 | |||||||||||
Balances with Non-Scheduled Banks* | ||||||||||||||
— on Current Accounts | 169.53 | 145.56 | 201.19 | |||||||||||
— on Deposit Accounts | 2.10 | 4.20 | 1.86 | |||||||||||
4,852.13 | 4,092.79 | 4,502.42 | ||||||||||||
*Refer note (i) of schedule18 | ||||||||||||||
10. |
Loans and Advances | |||||||||||||
(Considered good unless otherwise stated) | ||||||||||||||
Secured — Loans | 0.01 | 0.04 | 0.02 | |||||||||||
Unsecured — Advances
recoverable in cash or in kind or for value to be received |
231.38 | 179.26 | 242.69 | |||||||||||
— Deposits |
210.87 | 101.58 | 149.21 | |||||||||||
Considered doubtful — Advances | 29.36 | 24.11 | 27.86 | |||||||||||
471.62 | 304.99 | 419.78 | ||||||||||||
Less: Provision for doubtful Advances | 29.36 | 24.11 | 27.86 | |||||||||||
442.26 | 280.88 | 391.92 | ||||||||||||
11. |
Liabilities | |||||||||||||
Sundry Creditors * | ||||||||||||||
—
Dues to micro enterprises and small enterprises |
— | — | — | |||||||||||
—
Dues to other than micro enterprises and small enterprises |
1,030.29 | 318.77 | 637.55 | |||||||||||
1,030.29 | 318.77 | 637.55 | ||||||||||||
Advances from Customers | 21.97 | 1.67 | 18.53 | |||||||||||
Unearned Revenue | 157.38 | 97.25 | 133.18 | |||||||||||
Investor Education Protection Fund shall be credited by the following amounts | ||||||||||||||
— Unclaimed Dividends | 7.13 | 6.26 | 6.99 | |||||||||||
Interest accrued but not due on loans | 0.34 | 0.43 | 0.34 | |||||||||||
Other Liabilities | 114.55 | 73.15 | 101.12 | |||||||||||
1,331.66 | 497.53 | 897.71 | ||||||||||||
* Balance as at June
30, 2008 includes Rs. 21.20 crores payable towards leased assets |
||||||||||||||
12. |
Provisions | |||||||||||||
Provision for Taxation (Less payments) | 159.92 | 71.66 | 119.55 | |||||||||||
Proposed Dividend (Including tax thereon) | 196.13 | 195.15 | 196.13 | |||||||||||
Provision for Gratuity and Leave Encashment | 249.87 | 168.24 | 234.56 | |||||||||||
605.92 | 435.05 | 550.24 | ||||||||||||
9
Rs. in crores | ||||||||||||||
For the | For the | For the | ||||||||||||
Quarter ended | Quarter ended | Year ended | ||||||||||||
30.06.2008 | 30.06.2007 | 31.03.2008 | ||||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||||
13. |
Other Income | |||||||||||||
Interest on Deposits — Gross | ||||||||||||||
{Tax Deducted at Source Rs. 15.21 crores} | ||||||||||||||
( June 30, 2007 — Rs. 15.25 crores; March 31, 2008 — Rs. 61.04 crores) | 67.40 | 67.53 | 270.68 | |||||||||||
Gain/(Loss) on exchange fluctuations (net) | (36.31 | ) | (6.55 | ) | (13.45 | ) | ||||||||
Provision no longer required written back | — | — | 0.15 | |||||||||||
Miscellaneous Income | 2.03 | 2.22 | 9.82 | |||||||||||
33.12 | 63.20 | 267.20 | ||||||||||||
14. |
Personnel Expenses | |||||||||||||
Salaries and bonus | 1,415.91 | 1,004.65 | 4,790.78 | |||||||||||
Contribution to Provident and other funds | 98.68 | 72.84 | 357.01 | |||||||||||
Staff welfare expenses | 14.20 | 5.03 | 26.45 | |||||||||||
Employee stock compensation expense | 12.42 | 23.66 | 85.26 | |||||||||||
1,541.21 | 1,106.18 | 5,259.50 | ||||||||||||
15. |
Cost of software and hardware sold | |||||||||||||
Opening inventory | 0.09 | 0.02 | 0.02 | |||||||||||
Add: Purchases (net of returns) | 0.20 | 0.27 | 2.39 | |||||||||||
Less: Closing inventory | 0.03 | 0.04 | 0.09 | |||||||||||
0.26 | 0.25 | 2.32 | ||||||||||||
16. |
Operating and Administration Expenses | |||||||||||||
Rent | 48.35 | 28.51 | 143.25 | |||||||||||
Rates and taxes | 11.91 | 6.39 | 31.18 | |||||||||||
Insurance | 3.53 | 4.03 | 16.76 | |||||||||||
Travelling and conveyance | 142.33 | 106.88 | 490.44 | |||||||||||
Communication | 29.19 | 22.64 | 94.74 | |||||||||||
Printing and stationery | 2.66 | 1.33 | 10.26 | |||||||||||
Power and fuel | 16.67 | 12.50 | 50.82 | |||||||||||
Advertisement | 1.80 | 1.35 | 7.46 | |||||||||||
Marketing expenses | 25.98 | 17.33 | 85.98 | |||||||||||
Repairs and maintenance | ||||||||||||||
— Buildings |
0.85 | 0.81 | 3.72 | |||||||||||
— Machinery |
10.96 | 4.94 | 25.32 | |||||||||||
— Others |
9.40 | 6.63 | 32.13 | |||||||||||
Security services | 3.58 | 1.59 | 7.94 | |||||||||||
Legal and professional charges | 53.41 | 45.44 | 194.44 | |||||||||||
Provision for doubtful debts and advances | 16.66 | 6.21 | 31.99 | |||||||||||
Doubtful Advances Written off | ||||||||||||||
Loss on sale of Fixed assets (net) | 0.40 | 0.36 | 1.82 | |||||||||||
Directors’ sitting fees | 0.01 | 0.01 | 0.05 | |||||||||||
Auditors’ remuneration | 1.00 | 0.78 | 4.31 | |||||||||||
Donations and contributions | 3.25 | 1.04 | 6.68 | |||||||||||
Subscriptions | 2.70 | 0.71 | 5.08 | |||||||||||
Training and development | 10.78 | 10.19 | 41.03 | |||||||||||
Research and development | 0.23 | 0.41 | 1.52 | |||||||||||
Software charges | 14.45 | 3.89 | 19.62 | |||||||||||
Managerial Remuneration | ||||||||||||||
— Salaries |
0.91 | 0.52 | 3.89 | |||||||||||
— Commission |
0.18 | 1.05 | 0.35 | |||||||||||
— Contribution to Provident Fund |
0.01 | 0.01 | 0.04 | |||||||||||
— Others |
0.20 | 0.04 | 0.28 | |||||||||||
Visa charges | 28.97 | 23.76 | 42.50 | |||||||||||
Miscellaneous expenses | 6.72 | 4.12 | 23.24 | |||||||||||
447.09 | 313.47 | 1,376.84 | ||||||||||||
17. |
Financial Expenses | |||||||||||||
Interest on Export packing credit | 0.23 | 0.55 | 1.15 | |||||||||||
Interest on working capital loans | 1.62 | 1.62 | 6.86 | |||||||||||
Interest on Overdraft | 2.28 | 0.54 | 5.69 | |||||||||||
Other finance charges | 1.61 | 0.61 | 6.49 | |||||||||||
5.74 | 3.32 | 20.19 | ||||||||||||
10
18. | Notes on Accounts | |
a) | List of domestic and foreign subsidiaries and joint ventures considered for consolidation:- |
Sl. No. | Name of the Company | Country of Incorporation |
Extent of holding (%) as at June 30, 2008 |
|||||
Subsidiaries : | ||||||||
1. |
Satyam BPO Limited$ | India | 100.00 | ** | ||||
2. |
Satyam Computer Services (Shanghai) Co. Ltd | China | 100.00 | |||||
3. |
Satyam Computer Services (Nanjing) Co. Ltd | China | 100.00 | |||||
4. |
Satyam Technologies, Inc. | USA | 100.00 | |||||
5. |
Knowledge Dynamics Pte. Ltd. | Singapore | 100.00 | |||||
6. |
Nitor Global Solutions Limited # | UK | 100.00 | |||||
7. |
Citisoft Plc. | UK | 100.00 | |||||
8. |
Satyam Computer Services (Egypt) S.A.E. & | Egypt | 100.00 | |||||
9. |
Bridge Strategy Group LLC@ | USA | 100.00 | |||||
Joint Ventures : | ||||||||
10. |
CA Satyam ASP Private Limited | India | 50.00 | |||||
11. |
Satyam Venture Engineering Services Private Limited | India | 50.00 |
$ | formerly known as “Nipuna Services Limited” | |
@ | Bridge Strategy Group LLC has been consolidated with effective date of April 04, 2008, the date of acquisition. | |
# | Nitor Global Solutions Limited has been consolidated with effective date of January 04, 2008, the date of acquisition. | |
& | Satyam Computer Services (Egypt) S.A.E. has been consolidated with effective date of January 01, 2008. | |
** | Refer note 18(d). |
— | Satyam Computer Services (Shanghai) Co. Ltd. — December 31. | ||
— | Satyam Computer Services (Nanjing) Co. Ltd. — December 31. | ||
— | Satyam Technologies Inc. — December 31. | ||
— | Bridge Strategy Group LLC — December 31. | ||
— | Nitor Global Solutions Limited — May 31. |
Sl. No. | Subsidiaries of Knowledge Dynamics Pte Ltd | Country of Incorporation |
Extent of holding (%) as at June 30, 2008 |
|||||
1. |
Knowledge Dynamics Private Limited | India | 99.99 | |||||
2. |
Knowledge Dynamics USA Inc. | USA | 98.00 |
Sl. No. | Subsidiaries of Citisoft Plc. | Country of Incorporation |
Extent of holding (%) as at June 30, 2008 |
|||||
1. |
Citisoft Inc. | USA | 100.00 |
b) | Associate Stock Option Schemes |
1) | Stock Option Scheme of Satyam Computer Services | ||
i) | Scheme established prior to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines 1999, (SEBI guidelines on Stock Options) |
In May 1998, Satyam Computer Services established its Associate Stock Option Plan (the “ASOP”). Satyam Computer Services subsequently established an employee welfare trust called the Satyam Associates Trust (the “Trust”), to administer the ASOP and issued warrants to purchase 6,500,000 equity shares of Rs. 2 each in Satyam Computer Services. In turn, the Trust periodically grants to eligible employees warrants to purchase equity shares held by Trust for the issuance to the employees. The warrants may vest immediately or may vest over a period ranging from two to three years, depending on the employee’s length of service and performance. Upon vesting, employees have 30 days to exercise warrants. The exercise price of the warrants was fixed at Rs. 450 per warrant. | |||
At the 12th Annual General Meeting held on May 28, 1999, shareholders approved a 1:1 Bonus issue to all shareholders as of August 31, 1999. In order to ensure all its employees receive the benefits of the bonus issue in December 1999, the Trust exercised all its warrants to purchase Satyam Computer Service’s shares prior to the bonus issue using the proceeds obtained from bank loans. Subsequent to this, each warrant entitles the holder to purchase 10 shares of Rs. 2 each of Satyam Computer Services at a price of Rs. 450 per warrant plus an interest component associated with the loan which the Trust assumed, for conversion of the warrants it held. The interest component is computed based on fixed vesting period and a fixed interest rate. As this scheme is established prior to the SEBI guidelines on the stock options, there is no cost relating to the grant of options under this scheme. |
11
ii) | Scheme established after SEBI Guidelines on Stock Options | ||
Securities Exchange Board of India (SEBI) issued the Employee Stock Option Scheme and Employee Stock Purchase Scheme Guidelines 1999, which is applicable for all Stock Option Schemes established after June 19, 1999. | |||
Satyam Computer Services established a scheme “Associate Stock Option Plan — B” (ASOP — B) for which 83,454,280 equity shares of Rs. 2 each were earmarked. These warrants vest over a period of 2-4 years from the date of the grant. Upon vesting, associates have 5 years to exercise these shares. | |||
Accordingly, options (net of cancellations) for a total number of 13,726,985 equity shares of Rs. 2 each were outstanding as at June 30, 2008 (June 30, 2007 — 19,117,177; March 31, 2008 — 15,641,127). | |||
Changes in number of options outstanding were as follows: |
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Options | (Unaudited) | (Unaudited) | (Audited) | |||||||||
At the beginning of the period / year |
15,641,127 | 19,976,210 | 19,976,210 | |||||||||
Granted |
— | — | — | |||||||||
Exercised |
(1,763,675 | ) | (438,390 | ) | (2,866,407 | ) | ||||||
Cancelled |
(150,467 | ) | (420,643 | ) | (1,424,297 | ) | ||||||
Lapsed |
— | — | (44,379 | ) | ||||||||
At the end of the period / year |
13,726,985 | 19,117,177 | 15,641,127 |
iii) | Associate Stock Option Plan (ADS) | ||
Satyam Computer Services has established a scheme “Associate Stock Option Plan (ADS)” to be administered by the Administrator of the ASOP (ADS), a committee appointed by the Board of Directors of Satyam Computer Services. Under the scheme 5,149,330 ADS are reserved to be issued to eligible associates with the intention to issue the warrants at a price per option which is not less than 90% of the value of one ADS as reported on NYSE on the date of grant converted into Indian Rupees at the rate of exchange prevalent on the day of grant as decided by the Administrator of the ASOP (ADS). Each ADS represents two equity shares of Rs. 2 each fully paid up. These warrants vest over a period of 1-10 years from the date of the grant. The time available to exercise the warrants upon vesting is as decided by the Administrator of the ASOP (ADS). | |||
Accordingly, options (net of cancellation) for a total number of 1,239,237 ADS (June 30, 2007 — 1,439,946; March 31, 2008 — 1,283,118) representing 2,478,474 equity shares of Rs. 2 each were outstanding as at June 30, 2008 (June 30, 2007 — 2,879,892; March 31, 2008 — 2,566,236). | |||
Changes in number of options outstanding were as follows: |
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Options | (Unaudited) | (Unaudited) | (Audited) | |||||||||
At the beginning of the period / year |
1,283,118 | 1,461,064 | 1,461,064 | |||||||||
Granted |
— | — | — | |||||||||
Exercised |
(43,881 | ) | (18,062 | ) | (140,494 | ) | ||||||
Cancelled |
— | (3,056 | ) | (36,712 | ) | |||||||
Lapsed |
— | — | (740 | ) | ||||||||
At the end of the period / year |
1,239,237 | 1,439,946 | 1,283,118 |
iv) | Associate Stock Option Plan — Restricted Stock Units (ASOP — RSUs) | ||
Satyam Computer Services has established a scheme “Associate Stock Option Plan — Restricted Stock Units (ASOP — RSUs)” to be administered by the Administrator of the ASOP — RSUs, a committee appointed by the Board of Directors of Satyam Computer Services. Under the scheme 13,000,000 equity shares are reserved to be issued to eligible associates at a price to be determined by the Administrator which shall not be less than the face value of the share. These RSUs vest over a period of 1-4 years from the date of the grant. The maximum time available to exercise the warrants upon vesting is five years from the date of vesting. | |||
Accordingly, options (net of cancellations) for a total number of 3,010,688 ASOP—RSUs equity shares of Rs. 2 each were outstanding as at June 30, 2008 (June 30, 2007 — 3,318,140; March 31, 2008 — 3,150,202). |
12
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Options | (Unaudited) | (Unaudited) | (Audited) | |||||||||
At the beginning of the period / year |
3,150,202 | 3,293,140 | 3,293,140 | |||||||||
Granted |
61,500 | 25,000 | 159,000 | |||||||||
Exercised |
(166,504 | ) | — | (120,449 | ) | |||||||
Cancelled |
(34,510 | ) | — | (181,489 | ) | |||||||
At the end of the period / year |
3,010,688 | 3,318,140 | 3,150,202 |
v) | Associate Stock Option Plan — RSUs(ADS) (ASOP — RSUs(ADS)) | ||
Satyam Computer Services has established a scheme “Associate Stock Option Plan — RSUs (ADS)” to be administered by the Administrator of the ASOP — RSUs (ADS), a committee appointed by the Board of Directors of Satyam Computer Services. Under the scheme 13,000,000 equity shares minus the number of shares issued from time to time under the Associate Stock Option Plan — RSUs are reserved to be issued to eligible associates at a price to be determined by the Administrator not less than the face value of the share. These RSUs vest over a period of 1-4 years from the date of the grant. The maximum time available to exercise the warrants upon vesting is five years from the date of vesting. | |||
Accordingly, options (net of cancellation) for a total number of 271,547 ADS (June 30, 2007 — 254,120; March 31, 2008 — 249,715) representing 543,094 equity shares of Rs. 2 each were outstanding as at June 30, 2008 (June 30, 2007 — 508,240; March 31, 2008 — 499,430). |
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Options | (Unaudited) | (Unaudited) | (Audited) | |||||||||
At the beginning of the period / year |
249,715 | 236,620 | 236,620 | |||||||||
Granted |
29,750 | 17,500 | 43,500 | |||||||||
Exercised |
(5,643 | ) | — | (7,720 | ) | |||||||
Cancelled |
(2,275 | ) | — | (22,685 | ) | |||||||
At the end of the period / year |
271,547 | 254,120 | 249,715 |
2) | Stock Option Scheme of Satyam BPO Limited (“Satyam BPO”) | ||
In April 2004, Satyam BPO established its Employee Stock Option Plan (the “ESOP”) for its employees. The exercise price is equal to the fair market value on the date of the grant. These options vest over a period ranging from two to four years, starting with 33.33% in the second year, 33.33% in the third year and remaining 33.34% in the fourth year from the date of grant and are subject to lock in period of one year from the grant date. | |||
Accordingly, options (net of cancellations) for a total number of 639,750 equity shares of Rs. 80 each were outstanding as at June 30, 2008 (June 30, 2007 — 998,702; March 31, 2008 — 639,750). |
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Options | (Unaudited) | (Unaudited) | (Audited) | |||||||||
At the beginning of the period / year |
639,750 | 998,702 | 998,702 | |||||||||
Granted |
— | — | — | |||||||||
Exercised |
— | — | 358,952 | |||||||||
Cancelled |
— | — | — | |||||||||
At the end of the period / year |
639,750 | 998,702 | 639,750 |
c) | Pro forma disclosures | |
In accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, had the compensation cost for associate stock option plans been recognized based on the fair value at the date of grant in accordance with Black Scholes’ model, the pro forma amounts of Satyam’s net profit and earnings per share would have been as follows: |
13
Quarter ended June 30, | Year ended | |||||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||||
Particulars | (Unaudited) | (Unaudited) | (Audited) | |||||||||||
1. | Profit After Taxation and Minority Interest |
|||||||||||||
— As reported (Rs. in crores ) |
547.70 | 378.32 | 1,687.89 | |||||||||||
— Pro forma (Rs. in crores ) |
543.49 | 374.63 | 1,673.45 | |||||||||||
2. | Earnings Per Share: |
|||||||||||||
Basic |
||||||||||||||
— No. of shares |
671,378,359 | 667,398,284 | 668,673,978 | |||||||||||
— EPS as reported (Rs.) |
8.16 | 5.67 | 25.24 | |||||||||||
— Pro forma EPS (Rs.) |
8.10 | 5.61 | 25.02 | |||||||||||
Diluted |
||||||||||||||
— No. of shares |
684,679,265 | 684,730,168 | 683,138,400 | |||||||||||
— EPS as reported (Rs.) |
8.00 | 5.53 | 24.71 | |||||||||||
— Pro forma EPS (Rs.) |
7.94 | 5.47 | 24.50 |
The following assumptions were used for calculation of fair value of grants: |
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Options | (Unaudited) | (Unaudited) | (Audited) | |||||||||
Dividend yield (%) |
0.78 | 0.78 | 0.78 | |||||||||
Expected volatility (%) |
56.66 | 56.64 | 56.64 | |||||||||
Risk-free interest rate (%) |
8.55 | 7.00 | 8.00 | |||||||||
Expected term (in years) |
2.31 | 2.30 | 2.51 |
d) | Convertible Redeemable Cumulative Preference Shares | |
Satyam BPO issued 45,669,999 and 45,340,000 0.05% Convertible Redeemable Cumulative Preference Shares of par value Rs.10 each fully paid-up in October 2003 and June 2004 respectively to Olympus BPO Holdings Ltd. and Intel Capital Corporation (“Preference shareholders”) for an aggregate consideration of Rs. 91.01 crores (equivalent to US$ 20 millions). These Preference shares were to be mandatorily converted/redeemed into such number of equity shares latest by June 2007 based on certain provisions in the agreement entered with the preference shareholders relating to revenues and profits earned up to March 31, 2006. The said preference shares, if not converted or early converted at the option of the preference shareholders based on certain triggering events, were redeemable on maturity in June 2007 at a redemption premium, which could range in between 7.5% to 13.5% p.a. Accordingly, Satyam BPO received a notice of conversion of fifty percent of preference shares into equity shares, from its preference share holders, on December 1, 2006. And in January 2007 45,505,000 preference shares have converted into 6,422,267 equity shares of Satyam BPO. The balance preference shares were to be redeemed at a premium to be mutually agreed upon at a later date. Satyam Computer Services guaranteed payment of all sums payable by Satyam BPO to the preference shareholders on redemption of the said preference shares. | ||
Due to the issue of shares by Satyam BPO, Satyam Computer Services’ ownership interest in Satyam BPO was reduced from 100% as at March 31, 2006 to 74% as at March 31, 2007. The shares issued to the Investors are at amounts per share higher than Satyam Computer Services’ average cost per share. With respect to this transaction, the resulting gain of Rs.45.51 crores during the year ended March 31, 2007 has been recorded as an increase in capital reserve. Since the losses applicable to the minority interest in Satyam BPO exceeded the minority interest in the equity capital of Satyam BPO, such excess and further losses have been charged in Satyam’s consolidated statement of income. | ||
On July 27, 2007, Satyam Computer Services has agreed to pay additional consideration of US$ 1.5 million to the preference share holder if the share purchase closing occurs after August 07, 2007. | ||
On August 14, 2007, Satyam Computer Services purchased 4,816,750 equity shares of Satyam BPO from Olympus BPO Holdings Ltd for Rs.141.81 Crores (equivalent US$34.88 million). | ||
On August 14, 2007, Satyam Computer Services subscribed to further 8,055,000 equity shares of Satyam BPO of Rs. 10 each at a premium of Rs. 60 per share aggregating to Rs. 56.39 crores. | ||
Satyam BPO has redeemed 45,504,999 Preference Shares on August 14, 2007 at a redemption value of Rs.56.37 crores including premium on redemption of Rs.10.87 crores. The premium on redemption was reduced from the share premium account. | ||
In September 2007, 286,952 equity shares vested and exercised by Satyam BPO employees under its Employee Stock Option Plan. As a result of the above, Satyam Computer Services ownership interest in Satyam BPO reduced from 95.10% to 94.27% and a gain on dilution of Rs. 2.60 crores has been recorded as increase in Capital Reserve. Satyam Computer Services purchased these 286,952 Equity shares for a consideration of Rs. 8.47 crores. |
14
On December 31, 2007, Satyam Computer Services purchased 1,605,617 equity shares of Satyam BPO from Intel Capital (Cayman) Corporation for Rs.45.94 Crores (equivalent US$11.62 million). | ||
On March 14, 2008, 72,000 equity shares vested to and exercised by Satyam BPO employee under its Employee Stock Option Plan, resulting in a gain on dilution of Rs. 0.58 crores has been recorded as increase in Capital Reserve. Satyam Computer Services purchased these 72,000 equity shares for a consideration of Rs. 2.09 crores. | ||
e) | Share application money pending allotment | |
Amount received from associates of Satyam Computer Services on exercise of stock options, pending allotment of shares is shown as share application money pending allotment. | ||
f) | Secured Loans | |
Bank Overdraft and Export Packing Credit are secured by way of hypothecation of book debts. External Commercial Borrowing and Working Capital loan are secured by way of movable and immovable property. | ||
Vehicles are hypothecated to the banks as security for the amounts borrowed. | ||
g) | Investments |
i. | During May 2005, Satyam Computer Services acquired Citisoft Plc (“Citisoft”), a specialist business and systems consulting firm located in the United Kingdom that has focused on the investment management industry, with operating presence in London, Boston and New York. | ||
Satyam Computer Services acquired 75% of the shareholding in Citisoft for an initial cash consideration of Rs. 62.35 crores (inclusive of acquisition costs) and a deferred consideration of Rs.13.63 crores (equivalent GBP 1.75 million). Satyam Computer Services was also required to pay a maximum earn out consideration amounting to Rs.18.35 crores (equivalent GBP 2.25 million) based on achievement of targeted revenues and profits and Employee Benefit Trust (EBT) contribution of Rs. 8.00 crores (equivalent GBP 0.9 million). | |||
On June 29, 2006, Satyam Computer Services acquired the remaining 25% shareholding for a consideration of Rs. 27.47 crores (equivalent GBP 3.26 million) and a maximum earn-out consideration of Rs. 28.87 crores (equivalent GBP 3.54 million) based on achievement of targeted revenues and profits and a maximum EBT contribution of Rs. 14.68 crores (equivalent GBP 1.80 million) contingent on Citisoft achieving certain revenue and profit performance targets. Satyam Computer Service paid Rs. 0.65 crores (equivalent GBP 0.08 million) towards EBT contribution in May 2007. | |||
On June 29, 2007, Satyam Computer Services entered into an amendment agreement with the selling shareholders providing for an early exit of the selling shareholders. As per the amendment agreement, an exit consideration of Rs. 14.25 crores (equivalent GBP 1.74 million) and payment towards EBT of Rs.0.65 crores (equivalent GBP 0.08 million) is payable by Satyam Computer Services in July 2007 upon selling shareholders agreeing for removal of provisions of deferred consideration, maximum earn-out consideration and a portion of payments towards EBT. The exit consideration and EBT contribution payable as per the amended agreement have been paid in July 2007 and the payment has been recognized as cost of investment by Satyam Computer Services. | |||
ii. | During October 2005, Satyam Computer Services acquired Knowledge Dynamics Pte Ltd (KDPL), a leading Data Warehousing and Business Intelligence Solutions provider, with operating presence in Singapore, Malaysia, USA and India. | ||
Satyam Computer Services acquired 100% of the shareholding in KDPL for a consideration of Rs. 14.64 crores (inclusive of acquisition costs) and a maximum earn out consideration of Rs. 4.87 crores (equivalent SGD 1.84 million) payable on April 30, 2008, based on achievement of targeted revenues and profits. | |||
On July 19 2007, Satyam Computer Services entered into an amendment agreement with the selling shareholders of KDPL on agreeing to the terms of the agreement including removal of provisions relating to earn out consideration. As per the amendment agreement, an exit consideration of Rs. 2.97 crores (equivalent SGD 1.11 million) has been paid by Satyam Computer Services in July 2007. In addition to the exit consideration Satyam Computer Services paid a deferred consideration of Rs. 1.14 crores (equivalent SGD 0.37 million) on May 14, 2008.The exit consideration and deferred payment has been recognised as Goodwill. Further Satyam Computer Services agreed to make a maximum earn-out payment of Rs. 2.14 crores (equivalent SGD 0.74 million) on or before May 15, 2008. The actual amount of earn-out payment to be made is based on the revenue of KDPL for the year 2007-08. | |||
iii. | On October 23, 2007, Satyam Computer Services announced its intention to acquire 100% of the shares of NITOR Global Solutions Ltd, United Kingdom (“Nitor”), a Company specialized in the Infrastructure Management Services (IMS) space. The total consideration for this acquisition is approximately Rs. 22.40 crores (equivalent GBP 2.76 million) including a performance-based payment of up to Rs. 10.34 crores (equivalent GBP 1.3 million) over two years conditional upon specified revenue and profit targets being met. Satyam Computer Services paid an initial consideration of Rs. 12.06 crores (equivalent GBP 1.46 million) on January 04, 2008. |
15
iv. | On April 04, 2008, Satyam Computer Services acquired 100% of the shares of Bridge Strategy Group LLC, (“Bridge”) a Chicago based strategy and general management consulting firm for a total consideration of Rs. 139.51 crores (equivalent to US$ 35.0 million) comprising of initial consideration, deferred consideration (non contingent) and a contingent consideration. The initial consideration of US$19.0 million has been paid on April 04, 2008 and the deferred consideration has been recognized as a liability. The results of Bridge’s operations have been consolidated by Satyam Computer Services from the consummation date of April 4, 2008. | ||
v. | On April 21, 2008, Satyam Computer Services announced its intention of acquiring S&V Management Consultants (“S&V”) a Belgium based SCM Strategy consulting firm for a total consideration of Rs. 141.50 crores (equivalent US$ 35.5 million) comprising of an up-front, deferred guaranteed and deferred retention payments. The transaction has not consummated as on June 30, 2008. | ||
vi. | On April 21, 2008, Satyam Computer Services announced its intention of acquiring remaining 50% equity held by CA Inc in its joint venture CA Satyam ASP Pvt. Ltd. (“CA Satyam”) for a total consideration of Rs. 5.98 crores (equivalent US$ 1.5 million) payable in two tranches. The transaction has not consummated as on June 30, 2008. | ||
vii. | On April 21, 2008, Satyam Computer Services announced its intention to acquire the Market research and Customer Analytics (MR&CA) business unit from Caterpillar Inc., USA (CAT) including the related Intellectual Property which consists of software, processes and know-how. The proposed acquisition is for a consideration of Rs. 239.16 crores (equivalent US$ 60 million) comprising of initial and deferred consideration. The transaction has not consummated as on June 30, 2008. |
h) | Land | |
Satyam Computer Services acquired 14.93 acres of land at Hyderabad from Andhra Pradesh Industrial Infrastructure Corporation (APIIC) at a rebate for an aggregate purchase consideration of Rs.7.21 crores. Non-compliance with certain terms and conditions would attract withdrawal of rebate, which may increase the cost of land. | ||
i) | Balances with Non-Scheduled Banks |
Rs. in crores | ||||||||||||
As at June 30, | As at | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Name of the Bank | (Unaudited) | (Unaudited) | (Audited) | |||||||||
Balances with Non-Scheduled Banks on Current Accounts |
||||||||||||
ANZ Grindlays Bank, New York |
||||||||||||
Banco Do Brasil, Brazil |
1.59 | 0.69 | 1.29 | |||||||||
Barclays Bank, London |
6.13 | 4.71 | 5.14 | |||||||||
Bank of America, Boston |
2.61 | 2.84 | 3.38 | |||||||||
Bank of Scotland, Edinburg |
0.16 | — | 0.12 | |||||||||
Bank of Tokyo-Mitsubishi UFJ, Tokyo |
1.12 | — | 1.42 | |||||||||
Banque Nationale De Paris, Brussels |
2.99 | 2.83 | 1.23 | |||||||||
Banque Nationale De Paris, Egypt |
0.20 | — | 0.74 | |||||||||
Banque Nationale De Paris, Saarbruecken |
4.32 | 4.66 | 2.16 | |||||||||
Banque Nationale De Paris, Hague |
1.26 | 4.19 | 1.48 | |||||||||
Banque Nationale De Paris, Ireland |
0.83 | 0.73 | 1.04 | |||||||||
Banque Nationale De Paris, Italy |
0.63 | 0.28 | 0.64 | |||||||||
Banque Nationale De Paris, France |
1.64 | 0.82 | 2.07 | |||||||||
Banque Nationale De Paris, Saudi Arabia |
5.33 | 1.31 | 5.06 | |||||||||
Banque Nationale De Paris, Singapore |
0.04 | 0.32 | 0.17 | |||||||||
Banque Nationale De Paris, Spain |
0.51 | 0.39 | 0.54 | |||||||||
Banque Nationale De Paris, Switzerland |
4.75 | 1.94 | 6.97 | |||||||||
Banque Nationale De Paris, Taipei |
1.38 | 2.61 | 1.11 | |||||||||
Chase, Canada |
0.01 | 0.01 | ||||||||||
Chase, Michigan |
1.36 | 0.32 | 1.50 | |||||||||
China Merchants Bank, Dalian |
— | 0.01 | ||||||||||
China Merchants Bank, Nanjing |
0.13 | — | 0.04 | |||||||||
China Merchants Bank, Shanghai |
0.64 | — | 0.25 | |||||||||
Citibank NA, Bangkok |
15.74 | 16.34 | 17.54 | |||||||||
Citibank NA, Brazil |
0.88 | 0.29 | 1.85 | |||||||||
Citibank NA, Colombo |
4.33 | — | 4.07 | |||||||||
Citibank NA, Denmark |
1.77 | 1.86 | 1.06 | |||||||||
Citibank NA, Dubai |
1.01 | 1.13 | 0.45 | |||||||||
Citibank NA, Hong Kong |
0.52 | 0.37 | 0.40 | |||||||||
Citibank NA, Hungary |
0.72 | 0.48 | 0.53 | |||||||||
Citibank NA, Kuala Lumpur |
1.05 | 1.04 | 0.13 | |||||||||
Citibank NA, London |
0.87 | 1.40 | 2.14 | |||||||||
Citibank NA, New York |
14.70 | 8.58 | 14.91 | |||||||||
Citibank NA, New Zealand |
1.09 | 1.38 | 1.60 | |||||||||
Citibank NA, Seoul |
9.99 | 10.73 | 10.05 | |||||||||
Citibank NA, Singapore |
6.59 | 2.55 | 5.32 |
16
Rs. in crores | ||||||||||||
As at June 30, | As at | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Name of the Bank | (Unaudited) | (Unaudited) | (Audited) | |||||||||
Citibank NA, Johannesburg |
14.57 | 5.78 | 15.96 | |||||||||
Citibank NA, Sydney |
24.35 | 18.33 | 45.39 | |||||||||
Citibank International Plc, Stockholm |
1.55 | 0.55 | 1.06 | |||||||||
Citibank NA, Toronto |
3.57 | 2.38 | 4.22 | |||||||||
Commerz Bank, New York |
||||||||||||
Dresdner Bank, Saarbruecken |
0.11 | 2.87 | 3.65 | |||||||||
Hong Kong and Shanghai Banking Corporation, Jordan |
0.71 | — | — | |||||||||
Hong Kong and Shanghai Banking Corporation, London |
9.50 | 13.95 | 10.18 | |||||||||
Hong Kong and Shanghai Banking Corporation, Mauritius |
0.07 | 0.09 | 0.12 | |||||||||
Hong Kong and Shanghai Banking Corporation, Shanghai |
0.35 | 1.72 | 0.19 | |||||||||
Hong Kong and Shanghai Banking Corporation, Tokyo |
4.97 | 4.86 | 10.43 | |||||||||
HSBC Bank Plc, Czech Republic |
0.18 | — | 0.03 | |||||||||
KSB Bank N V, Brussels |
1.90 | 2.62 | 1.22 | |||||||||
Mitsui Sumitomo Bank, Tokyo |
0.74 | 0.21 | 1.42 | |||||||||
National City Bank, Michigan |
0.62 | — | — | |||||||||
New York, Citibank |
0.66 | — | 0.02 | |||||||||
OCBC Bank, Singapore |
1.28 | 0.77 | 1.17 | |||||||||
Pudong Development Bank, Shanghai |
0.04 | 0.01 | 0.05 | |||||||||
Standard Chartered Bank, Nanjing |
1.93 | — | 4.89 | |||||||||
UBS, Switzerland |
0.38 | 1.98 | 0.08 | |||||||||
Unicredit Banca, Italy |
0.73 | 0.40 | 0.88 | |||||||||
United Bank, Vienna |
3.19 | 6.83 | 1.93 | |||||||||
Wachovia Bank, Atlanta |
1.19 | 1.75 | 0.65 | |||||||||
Wachovia Bank, New Jersey |
0.06 | 5.66 | 1.23 | |||||||||
169.53 | 145.56 | 201.19 | ||||||||||
Balances held on Deposit Accounts |
||||||||||||
Bank of Scotland, Edinburg |
0.93 | — | 0.85 | |||||||||
Banque Nationale De Paris, Egypt |
0.14 | — | 0.13 | |||||||||
Banque Nationale De Paris, Singapore |
— | 3.40 | — | |||||||||
Citibank NA, Hungary |
1.03 | 0.80 | 0.88 | |||||||||
2.10 | 4.20 | 1.86 | ||||||||||
j) | Segment Reporting | |
Satyam has adopted AS 17, “Segment Reporting” issued by the Institute of Chartered Accountants of India, which requires disclosure of financial and descriptive information about Satyam’s reportable operating segments. The operating segments reported below are the segments of Satyam for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. Management evaluates performance based on consolidated revenues and net income for the companies in Satyam Computer Services. Satyam evaluates operating segments based on the following two business groups: |
• | IT Services, providing a comprehensive range of services, including application development and maintenance, consulting and enterprise business solutions, extended engineering solutions, and infrastructure management services. Satyam Computer Services provides its customers the ability to meet all of their information technology needs from one service provider. Satyam Computer Services’ eBusiness services include designing, developing integrating and maintaining Internet-based applications, such as eCommerce websites, and implementing packaged software applications, such as customer or supply chain management software applications. Satyam Computer Services also assists its customers in making their existing computing systems accessible over the Internet. | ||
• | BPO, providing Business Process Outsourcing services covering HR, Finance & Accounting, Customer Contact (Voice, Mail and Chat), and Transaction Processing (industry-specific offerings). |
Satyam’s operating segment information for the quarter ended June 30, 2008 and 2007 and year ended March 31, 2008 are as follows: |
17
Business Segment |
Rs. in crores | ||||||||||||||||
Quarter ended June 30, 2008 (Unaudited) | ||||||||||||||||
Description | IT Services | BPO | Elimination | Total | ||||||||||||
Revenue |
||||||||||||||||
Sales to external customers |
2,591.93 | 28.90 | — | 2,620.83 | ||||||||||||
Inter Segment Sales |
20.07 | (20.07 | ) | |||||||||||||
Total Revenue |
2,591.93 | 48.97 | (20.07 | ) | 2,620.83 | |||||||||||
Segment result—Profit/(Loss) |
605.14 | (19.57 | ) | — | 585.57 | |||||||||||
Interest expense |
1.60 | 4.14 | — | 5.74 | ||||||||||||
Other income |
31.16 | 1.96 | — | 33.12 | ||||||||||||
Income taxes |
65.08 | 0.17 | — | 65.25 | ||||||||||||
Profit/(Loss) from ordinary activities |
569.62 | (21.92 | ) | — | 547.70 | |||||||||||
Minority Interest |
||||||||||||||||
Profit/(Loss) after Tax and Minority Interest |
569.62 | (21.92 | ) | — | 547.70 | |||||||||||
Other Segment Information |
||||||||||||||||
Capital Expenditure |
258.92 | 2.61 | — | 261.53 | ||||||||||||
Depreciation |
41.05 | 5.65 | — | 46.70 | ||||||||||||
Non-cash expenses other than depreciation |
29.48 | — | — | 29.48 |
Rs. in crores | ||||||||||||||||
Quarter ended June 30, 2007 (Unaudited) | ||||||||||||||||
Description | IT Services | BPO | Elimination | Total | ||||||||||||
Revenue |
||||||||||||||||
Sales to external customers |
1,795.34 | 34.85 | — | 1,830.19 | ||||||||||||
Inter Segment Sales |
0.02 | 13.80 | (13.82 | ) | — | |||||||||||
Total Revenue |
1,795.36 | 48.65 | (13.82 | ) | 1,830.19 | |||||||||||
Segment result—Profit/(Loss) |
378.66 | (7.06 | ) | — | 371.60 | |||||||||||
Interest expense |
0.52 | 2.80 | — | 3.32 | ||||||||||||
Other income |
61.47 | 1.73 | — | 63.20 | ||||||||||||
Income taxes |
53.02 | 0.14 | — | 53.16 | ||||||||||||
Profit/(Loss) from ordinary activities |
386.59 | (8.27 | ) | — | 378.32 | |||||||||||
Minority Interest |
— | — | — | — | ||||||||||||
Profit/(Loss) after Tax and Minority Interest |
386.59 | (8.27 | ) | — | 378.32 | |||||||||||
Other Segment Information |
— | |||||||||||||||
Capital Expenditure |
91.54 | 5.46 | 97.00 | |||||||||||||
Depreciation |
33.46 | 5.23 | — | 38.69 | ||||||||||||
Non-cash expenses other than depreciation |
30.23 | — | — | 30.23 |
Rs. in crores | ||||||||||||||||
Year ended March 31, 2008 (Audited) | ||||||||||||||||
Description | IT Services | BPO | Elimination | Total | ||||||||||||
Revenue |
||||||||||||||||
Sales to external customers |
8,293.77 | 179.72 | — | 8,473.49 | ||||||||||||
Inter Segment Sales |
0.07 | 63.03 | (63.10 | ) | — | |||||||||||
Total Revenue |
8,293.84 | 242.75 | (63.10 | ) | 8,473.49 | |||||||||||
Segment result—Profit/(Loss) |
1,687.20 | (15.96 | ) | — | 1,671.24 | |||||||||||
Interest expense |
6.13 | 14.06 | — | 20.19 | ||||||||||||
Other income |
257.31 | 9.89 | — | 267.20 | ||||||||||||
Income taxes |
229.63 | 0.73 | — | 230.36 | ||||||||||||
Profit/(Loss) from ordinary activities |
1,708.75 | (20.86 | ) | — | 1,687.89 | |||||||||||
Minority Interest |
— | — | — | — | ||||||||||||
Profit/(Loss) after Tax and Minority Interest |
1,708.75 | (20.86 | ) | — | 1,687.89 | |||||||||||
Other Segment Information |
||||||||||||||||
Capital Expenditure |
602.82 | 21.46 | — | 624.28 | ||||||||||||
Depreciation |
142.00 | 21.59 | — | 163.59 | ||||||||||||
Non-cash expenses other than depreciation |
119.02 | 0.06 | — | 119.08 |
18
Particulars of Segment Assets and Liabilities |
Rs. in crores | ||||||||||||||||
As at June 30, 2008 (Unaudited) | ||||||||||||||||
Description | IT Services | BPO | Elimination | Total | ||||||||||||
Segment Assets |
6,095.37 | 219.09 | (67.85 | ) | 6,246.61 | |||||||||||
Investments |
273.46 | — | (273.46 | ) | — | |||||||||||
Bank Deposits |
3,327.71 | 0.49 | — | 3,328.20 | ||||||||||||
Other Assets |
415.62 | — | — | 415.62 | ||||||||||||
Total Assets |
10,112.16 | 219.58 | (341.31 | ) | 9,990.43 | |||||||||||
Segment Liabilities |
1,753.14 | 92.37 | (67.85 | ) | 1,777.66 | |||||||||||
Other Liabilities |
199.79 | 175.78 | — | 375.57 | ||||||||||||
Total Liabilities |
1,952.93 | 268.15 | (67.85 | ) | 2,153.23 | |||||||||||
Rs. in crores | ||||||||||||||||
As at June 30, 2007 (Unaudited) | ||||||||||||||||
Description | IT Services | BPO | Elimination | Total | ||||||||||||
Segment Assets |
3,655.30 | 186.54 | (59.43 | ) | 3,782.41 | |||||||||||
Investments |
18.27 | — | (18.27 | ) | — | |||||||||||
Bank Deposits |
3,324.72 | 3.67 | — | 3,328.39 | ||||||||||||
Other Assets |
157.85 | 0.05 | — | 157.90 | ||||||||||||
Total Assets |
7,156.14 | 190.26 | (77.70 | ) | 7,268.70 | |||||||||||
Segment Liabilities |
870.21 | 50.14 | (59.43 | ) | 860.92 | |||||||||||
Other Liabilities |
93.06 | 157.10 | — | 250.16 | ||||||||||||
Total Liabilities |
963.27 | 207.24 | (59.43 | ) | 1,111.08 | |||||||||||
Rs. in crores | ||||||||||||||||
As at March 31, 2008 (Audited) | ||||||||||||||||
Description | IT Services | BPO | Elimination | Total | ||||||||||||
Segment Assets |
4,849.31 | 406.83 | (39.12 | ) | 5,217.02 | |||||||||||
Investments |
273.46 | — | (273.46 | ) | — | |||||||||||
Bank Deposits |
3,326.77 | 0.33 | — | 3,327.10 | ||||||||||||
Other Assets |
359.68 | — | — | 359.68 | ||||||||||||
Total Assets |
8,809.22 | 407.16 | (312.58 | ) | 8,903.80 | |||||||||||
Segment Liabilities |
1,321.93 | 45.59 | (39.12 | ) | 1,328.40 | |||||||||||
Other Liabilities |
146.78 | 189.42 | 336.20 | |||||||||||||
Total Liabilities |
1,468.71 | 235.01 | (39.12 | ) | 1,664.60 | |||||||||||
Geographic Segment | ||
Revenue attributable to location of customers is as follows: |
Rs. in crores | ||||||||||||
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Geographic location | (Unaudited) | (Unaudited) | (Audited) | |||||||||
North America |
1,566.76 | 1,132.96 | 5,088.74 | |||||||||
Europe |
548.42 | 379.54 | 1,778.63 | |||||||||
Asia Pacific |
362.98 | 227.47 | 1,136.54 | |||||||||
India |
78.02 | 53.25 | 252.65 | |||||||||
Rest of the World |
64.65 | 36.97 | 216.93 | |||||||||
Total |
2,620.83 | 1,830.19 | 8,473.49 | |||||||||
Segment assets based on their location are as follows: |
Rs. in crores | ||||||||||||||||||||||||
Segment Assets | Addition to fixed assets | |||||||||||||||||||||||
As at June 30, | As at | Quarter ended June 30, | Year ended | |||||||||||||||||||||
2008 | 2007 | March 31, 2008 | 2008 | 2007 | March 31, 2008 | |||||||||||||||||||
Geographic location | (Unaudited) | (Unaudited) | (Audited) | (Unaudited) | (Unaudited) | (Audited) | ||||||||||||||||||
North America |
2,744.77 | 1,567.77 | 2,199.72 | 3.58 | 1.86 | 5.83 | ||||||||||||||||||
Europe |
875.60 | 584.54 | 784.69 | 104.29 | 2.66 | 18.21 | ||||||||||||||||||
Asia Pacific |
546.58 | 368.04 | 486.57 | 3.29 | 5.49 | 22.53 | ||||||||||||||||||
India |
1,886.97 | 1,175.70 | 1,618.21 | 148.26 | 86.44 | 575.63 | ||||||||||||||||||
Rest of the World |
192.69 | 86.36 | 127.83 | 2.11 | 0.55 | 2.08 | ||||||||||||||||||
Total |
6,246.61 | 3,782.41 | 5,217.02 | 261.53 | 97.00 | 624.28 | ||||||||||||||||||
19
k) | Related Party Transactions: |
Satyam Computer Services had transactions with the following related parties: | ||
Others: Satyam Foundation Trust (Enterprises where spouses of certain Whole-time Directors and Key Management Personnel are trustees) and Satyam Associate Trust (Enterprises where some of the Key Management Personnel are trustees). | ||
Directors and Key Management Personnel: B.Ramalinga Raju, B.Rama Raju, Ram Mynampati (Whole-time Directors), Prof. Krishna G Palepu (Director), D. Subramaniam, V. Srinivas, Shailesh Shah, Vijay Prasad Boddupalli , Manish Sukhlal Mehta, Dr. Keshab Panda, Virender Aggarwal, T R Anand, Hetzel Wayne Folden, Joseph J Lagioia, Sreenidhi Sharma, T.S.K Murthy, , Dilip Jha, Hari T, Krishnan SV, Murali V, Murthy AS, Venkatesh Roddam, M.Satyanarayana, Deepak Mangla (partly employed), Naresh Jhangiani, Seshadri Krishna, K Srinivas Rao and S. Nagarajaiah Harish. | ||
Summary of the transactions and balances with the above related parties are as follows: | ||
Transactions: |
Rs. in crores | ||||||||||||
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||
Others |
||||||||||||
Contributions |
1.42 | 0.98 | 4.19 |
Balances: |
Rs. in crores | ||||||||||||
As at June 30, | As at | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Others | (Unaudited) | (Unaudited) | (Audited) | |||||||||
Advances |
3.91 | 5.72 | 5.72 | |||||||||
Payables |
1.42 | 0.98 | 1.10 |
Transactions with Directors and Key Management Personnel |
Rs. in crores | ||||||||||||
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Nature of Transactions | (Unaudited) | (Unaudited) | (Audited) | |||||||||
Remuneration to Whole-time Directors |
1.12 | * | 0.57 | 4.56 | ||||||||
Remuneration to Key Management Personnel |
6.76 | 5.99 | 24.83 | |||||||||
Professional charges to Director |
0.20 | 0.20 | 0.80 | |||||||||
Advances to Key Management Personnel |
0.61 | 0.04 | 0.21 |
* | Includes Rs. 0.35 crores being increase in managerial remuneration paid to a whole-time director is pending shareholders’ approval. |
Balances due to / from Directors and Key Management Personnel |
Rs. in crores | ||||||||||||
As at June 30, | As at | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||
Remuneration payable to Whole-time Directors |
0.30 | 0.42 | 0.23 | |||||||||
Remuneration payable to Key Management Personnel |
1.73 | 0.90 | 1.13 | |||||||||
Advances due from Key Management Personnel |
0.73 | 0.17 | 0.16 | |||||||||
Professional charges payable to Director |
0.21 | 0.20 | 0.20 |
Options granted and outstanding to the Key Management Personnel 2,349,432 {includes 172,240 options granted under ASOP — ADS and 96,000 options granted under ASOP — RSUs (ADS)} (June 30, 2007 — 3,613,083 {includes 249,113 options granted under ASOP — ADS and 15,000 options granted under ASOP — RSUs (ADS)}; March 31, 2008 — 2,435,670 {includes 1,88,800 options granted under ASOP — ADS and 96,000 options granted under ASOP — RSUs (ADS)} ). | ||
Options granted and outstanding to a Whole-time Director 1,029,720 {includes 992,220 options granted under ASOP — ADS and 37,500 options granted under ASOP — RSUs (ADS)}; (June 30, 2007 — 1,050,720 {includes 1,025,720 options granted under ASOP — ADS and 25,000 options granted under ASOP — RSUs (ADS)}; March 31, 2008 — 1,029,720 {includes 992,220 options granted under ASOP — ADS and 37,500 options granted under ASOP — RSUs (ADS)}). | ||
Options granted and outstanding to Non-executive Directors of Satyam 63,750 {includes 30,000 options granted under ASOP — RSUs (ADS)} (June 30, 2007 — 60,000 {includes 35,000 options granted under ASOP — RSUs (ADS)}; March 31, 2008 — 80,000 {includes 35,000 options granted under ASOP — RSUs (ADS)). |
20
l) | Obligation on long term non-cancelable operating leases |
Satyam Computer Services has entered into operating lease agreements for its development centres at offshore, onsite and offsites ranging for a period of 3 to 10 years. The lease rentals charged during the year and maximum obligations on long-term non-cancelable operating leases payable as per the rentals stated in respective agreements are as follows: |
Rs. in crores | ||||||||||||
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||
Lease rentals (Refer Schedule 16) |
48.35 | 28.51 | 143.25 |
As at June 30, | As at | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||
Obligations on non-cancelable leases |
||||||||||||
Not later than one year |
99.72 | 22.51 | 69.46 | |||||||||
Later than one year and not later than five years |
331.88 | 15.17 | 272.66 | |||||||||
Later than five years |
41.08 | 1.21 | 53.03 | |||||||||
Total |
472.68 | 38.89 | 395.15 | |||||||||
m) | Obligation on long term non-cancelable Finance leases |
Finance leases relate to lease hold furniture and fittings with lease terms of 6 years, after which these assets would be transferred to the Satyam Computer Services without any additional cost. |
Rs. in crores | ||||||||
Minimum lease | Present | |||||||
payments | value | |||||||
Not later than one year |
5.11 | 2.78 | ||||||
Later than one year and not later than five years |
20.45 | 14.98 | ||||||
Later than five years |
3.60 | 3.44 | ||||||
29.16 | 21.20 | |||||||
Less: Future Finance Charges |
(7.96 | ) | — | |||||
Present value of minimum lease payments |
21.20 | 21.20 | ||||||
n) | Earnings per Share | |
At the Annual General Meeting of Satyam Computer Services held on August 21, 2006, the shareholders approved a 1:1 bonus issue for all shareholders including the ADS holders i.e. one additional equity share for every one existing equity share held by the members by utilising a part of the general reserves. The record date for the bonus issue was October 10, 2006 and shares were allotted on October 11, 2006. All basic and diluted shares used in determining earnings per share for the year ended March 31, 2007 are after considering the effect of bonus issue. | ||
Calculation of EPS (Basic and Diluted): |
Quarter ended June 30, | Year ended | |||||||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||||||
S.No. | Particulars | (Unaudited) | (Unaudited) | (Audited) | ||||||||||||
Basic |
||||||||||||||||
1. |
Opening no. of shares | 670,479,293 | 667,196,009 | 667,196,009 | ||||||||||||
2. |
Total Shares outstanding | 671,378,359 | 667,398,284 | 668,673,978 | ||||||||||||
3. |
Profit after Taxation and Minority Interest (Rs. in crores ) | 547.70 | 378.32 | 1,687.89 | ||||||||||||
4. |
EPS (Rs.) | 8.16 | 5.67 | 25.24 | ||||||||||||
Diluted |
||||||||||||||||
5. |
Stock options outstanding | 13,300,906 | 17,331,884 | 14,464,422 | ||||||||||||
6. |
Total shares outstanding (including dilution) | 684,679,265 | 684,730,168 | 683,138,400 | ||||||||||||
7. |
EPS (Rs.) | 8.00 | 5.53 | 24.71 |
21
o) | The aggregate amounts of the assets, liabilities, income and expenses related to Satyam’s share in joint venture companies that are consolidated and included in these financial statements are as follows: |
Rs. in crores | ||||||||||||
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Description | (Unaudited) | (Unaudited) | (Audited) | |||||||||
Income from Sales and Services |
12.41 | 8.92 | 39.21 | |||||||||
Other Income |
0.35 | (0.09 | ) | 0.26 | ||||||||
Total |
12.76 | 8.83 | 39.47 | |||||||||
Personnel expenses |
7.96 | 5.32 | 22.37 | |||||||||
Other expenses |
3.79 | 2.93 | 14.13 | |||||||||
Interest |
0.01 | 0.01 | 0.04 | |||||||||
Depreciation |
0.31 | 0.49 | 2.10 | |||||||||
Total |
12.07 | 8.75 | 38.64 | |||||||||
Net Profit |
0.69 | 0.08 | 0.83 |
Rs. in crores | ||||||||||||
As at June 30, | As at | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
Description | (Unaudited) | (Unaudited) | (Audited) | |||||||||
Secured Loans |
0.05 | 0.06 | 0.06 | |||||||||
Fixed Assets |
1.18 | 2.85 | 2.96 | |||||||||
Inventories |
0.03 | 0.04 | 0.02 | |||||||||
Sundry Debtors |
19.61 | 13.00 | 12.12 | |||||||||
Cash and Bank Balances |
15.90 | 9.61 | 9.84 | |||||||||
Loans and Advances |
9.90 | 7.11 | 3.32 | |||||||||
Interest Accrued on Fixed Deposits |
0.07 | 0.04 | 0.03 | |||||||||
Current Liabilities |
20.61 | 7.84 | 6.46 | |||||||||
Provisions |
4.06 | 3.62 | 0.61 |
p) | Commitments and Contingencies |
i. | Bank Guarantees outstanding Rs. 113.89 crores (June 30, 2007 — Rs. 97.96 crores; March 31, 2008 — Rs. 104.51 crores). | ||
ii. | Contracts pending execution on capital accounts, net of advances, Rs. 499.12 crores (June 30, 2007 — Rs. 196.42 crores; March 31, 2008 — Rs. 402.19 crores). | ||
iii. | Forward & Option Contracts outstanding Rs. 2,923.83 crores (equivalent US$ 675.04 millions) {(June 30, 2007 — Rs. 3,042.72 crores (equivalent US$ 743.56 millions); March 31, 2008 — Rs. 4,534.46 crores (equivalent US$ 1,133.07 millions)}. Gain/ (Loss) on foreign exchange forward contracts which are included under the head gain/ (loss) on exchange fluctuation in the profit and loss account amounted to (Rs. 227.70 crores) {June 30, 2007 — Rs. 89.88 crores; March 31, 2008 — Rs. 38.27 crores}. | ||
As of June 30, 2008, Satyam Computer services net foreign currency exposure that is not hedged by a derivative instrument or otherwise is Rs. 255.00 crores. | |||
iv. | Claims against the company not acknowledged as debts | ||
Income tax and Sales tax matters under dispute — Rs. 23.82 crores (June 30, 2007 — Rs. 24.07 crores; March 31, 2008 — Rs. 27.98 crores) | |||
v. | Arrears on 0.05% Convertible Redeemable Cumulative Preference Shares amounting to Rs. Nil (June 30, 2007 — Rs. 0.14 crores; March 31, 2008 — Rs. Nil) | ||
vi. | Contingent consideration payable in respect of acquired subsidiary companies Rs. 71.21 crores (June 30, 2007 — Rs. 4.87 crores; March 31, 2008 — Rs. 12.36 crores) | ||
vii. | For purchase commitments with respect to proposed acquisitions refer Notes 18 (g) v, vi and vii. | ||
viii. | Satyam Computer Services has given a corporate guarantee on behalf of a subsidiary for the loan obtained amounting to a maximum of Rs. 207.85 crores (June 30, 2007 — Rs. 81.48 crores; March 31, 2008 — Rs. 194.65 crores). | ||
ix. | Satyam Computer Services entered into a joint venture agreement with Venture Global Engineering LLC (“VGE”) to form Satyam Venture Engineering Services Pvt. Ltd (“SVES”) in India. As a result of VGE’s breach of the agreement between the parties, Satyam Computer Services filed a request for arbitration, naming VGE as respondent, with the London Court of International Arbitration (“LCIA”), seeking, among other things, to purchase VGE’s 50% interest in SVES at the agreed upon book value price of the shares. The LCIA Arbitrator issued an Award on April 3, 2006 in favour of Satyam Computer Services which it successfully enforced in the United States District Court in Michigan. During the enforcement proceedings in the US, VGE filed a petition challenging the Award before the District Court, Secunderabad and made an appeal to the High Court of Andhra Pradesh, both of which were rejected. Subsequently, in a special leave petition filed by VGE, the Supreme Court of India set aside the orders of the District Court and the High Court and granted an interim stay of the share transfer portion of the Award. The matter has been remanded back to the District Court, Secunderabad for trial on merits. Satyam Computer Services believes that this will not have an adverse effect on results of operations, financial condition and cash flows. |
22
q) | The Gratuity Plan |
The following table sets forth the status of the Gratuity Plan of the company, and the amounts recognized in the consolidated balance sheets and profit and loss account. |
Rs. in crores | ||||||||||||
Quarter ended June 30, | Year ended | |||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||
Projected benefit obligation at the beginning of the period/year |
71.04 | 47.56 | 47.54 | |||||||||
Current service cost |
4.88 | 2.23 | 13.10 | |||||||||
Interest cost |
1.58 | 0.86 | 3.45 | |||||||||
Actuarial loss/(gain) |
(5.91 | ) | (0.12 | ) | 12.01 | |||||||
Benefits paid |
(0.69 | ) | (1.19 | ) | (5.07 | ) | ||||||
Projected benefit obligation at the end of the period/year |
70.90 | 49.34 | 71.04 | |||||||||
Amounts recognized in the balance sheet |
||||||||||||
Projected benefit obligation at the end of the period/year |
70.90 | 49.34 | 71.04 | |||||||||
Fair value of plan assets at end of the period/year |
— | — | ||||||||||
Funded status of the plans — (asset )/ liability |
70.90 | 49.34 | 71.04 | |||||||||
Liability recognised in the balance sheet |
70.90 | 49.34 | 71.04 | |||||||||
Gratuity cost for the period/year |
||||||||||||
Current service cost |
4.88 | 2.23 | 13.10 | |||||||||
Interest cost |
1.58 | 0.86 | 3.45 | |||||||||
Net actuarial (gain)/loss recognised in the period/year |
(5.91 | ) | (0.12 | ) | 12.01 | |||||||
Net gratuity cost |
0.55 | 2.97 | 28.56 | |||||||||
Assumptions |
||||||||||||
Discount rate |
8.95 | % | 7.95 | % | 7.50 | % | ||||||
Long-term rate of compensation increase |
7.00 | % | 7.00 | % | 7.00 | % |
r) | The financial statements are represented in Rs. crores. Those items which were not represented in the financial statements due to rounding off to the nearest Rs. crores are given below: |
Rs. in lakhs | ||||||||||||||
As at June 30, | As at | |||||||||||||
2008 | 2007 | March 31, 2008 | ||||||||||||
Schedule No. | Description | (Unaudited) | (Unaudited) | (Audited) | ||||||||||
5 (ii) |
National Saving Certificates, VIII Series (Lodged as security with government authorities) |
0.16 | 0.16 | 0.16 | ||||||||||
18(i) |
Balances with non-scheduled banks | |||||||||||||
ANZ Grindlays Bank, New York |
0.09 | 0.09 | 0.09 | |||||||||||
Banque
Nationale De Paris, New York |
0.18 | — | — | |||||||||||
Banque Nationale De Paris, Singapore |
0.14 | — | ||||||||||||
Chase, Canada |
0.45 | |||||||||||||
China Merchants Bank, Dalian |
0.20 | |||||||||||||
Commerz Bank, New York |
0.24 | 0.24 | 0.24 |
s) | Share Premium |
Share premium received during the year in schedule 2 includes Rs. 9.34 crores being the Fringe Benefit Tax realised on exercise of Employees Stock Options by the associates. Also the amount paid towards Fringe Benefit Tax is disclosed in the share premium as utilized during the year. | ||
t) | Reclassification | |
Figures for the corresponding previous period/year have been regrouped, recast and rearranged to conform to those of the current period/year wherever necessary. |
23
Rs. in crores | ||||||||||||||||
For the | For the | For the | ||||||||||||||
Quarter ended | Quarter ended | Year ended | ||||||||||||||
30.06.2008 | 30.06.2007 | 31.03.2008 | ||||||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||||||
A. | Cash Flows from Operating Activities |
|||||||||||||||
Net Profit Before Taxation and Minority Interest |
612.95 | 431.48 | 1,918.25 | |||||||||||||
Employee Stock Option Expenses |
12.42 | 23.66 | 85.26 | |||||||||||||
Currency translation reserve |
5.82 | (0.98 | ) | 0.30 | ||||||||||||
Interest income |
(67.40 | ) | (67.53 | ) | (270.68 | ) | ||||||||||
Financial expenses |
5.74 | 3.32 | 20.19 | |||||||||||||
Depreciation / Amortisation |
46.70 | 38.69 | 163.59 | |||||||||||||
Loss on sale of Fixed Assets |
0.40 | 0.36 | 1.82 | |||||||||||||
Exchange
differences on translation of foreign currency cash and cash equivalents |
(88.81 | ) | 36.85 | 42.13 | ||||||||||||
Operating profit before changes in Working Capital |
527.82 | 465.85 | 1,960.86 | |||||||||||||
(Increase)/Decrease in Inventories |
0.06 | (0.02 | ) | (0.07 | ) | |||||||||||
(Increase)/Decrease in Sundry Debtors |
(409.74 | ) | (114.56 | ) | (627.11 | ) | ||||||||||
(Increase)/Decrease in Loans and Advances |
(50.06 | ) | (51.27 | ) | (162.31 | ) | ||||||||||
Increase/(Decrease) in Current Liabilities and Provisions |
399.18 | (73.66 | ) | 373.55 | ||||||||||||
Cash generated from Operating Activities |
467.27 | 226.34 | 1,544.92 | |||||||||||||
Income Taxes Paid |
(29.95 | ) | (41.24 | ) | (216.35 | ) | ||||||||||
Net Cash from Operating Activities |
437.32 | 185.10 | 1,328.57 | |||||||||||||
B. | Cash Flows from Investing Activities |
|||||||||||||||
Purchase of Fixed Assets |
(135.72 | ) | (77.60 | ) | (358.60 | ) | ||||||||||
Acquisition of minority interest in Satyam BPO |
— | — | (198.81 | ) | ||||||||||||
Acquisition of Nitor Global |
— | — | (8.99 | ) | ||||||||||||
Acquisition of Citisoft Plc. |
— | (17.39 | ) | (33.79 | ) | |||||||||||
Acquisition of Knowledge Dynamics Pte Ltd. |
(1.14 | ) | — | (2.97 | ) | |||||||||||
Acquisition of Bridge Strategy Group |
(75.32 | ) | ||||||||||||||
Proceeds from sale of Fixed Assets |
0.26 | 0.47 | 1.39 | |||||||||||||
Interest income received |
15.72 | 15.88 | 63.09 | |||||||||||||
Net Cash used in Investing Activities |
(196.20 | ) | (78.64 | ) | (538.68 | ) | ||||||||||
C. | Cash Flows from Financing Activities |
|||||||||||||||
Proceeds
from issue of Share Capital including Share Application money pending allotment |
32.08 | 4.50 | 44.92 | |||||||||||||
Repayment of Preference Share Capital |
— | — | (56.37 | ) | ||||||||||||
Proceeds from Secured Loans |
17.58 | 97.68 | 175.30 | |||||||||||||
Repayment of Secured Loans |
(23.41 | ) | (67.37 | ) | (107.23 | ) | ||||||||||
Capital element of Finance lease payment |
(0.76 | ) | — | — | ||||||||||||
Financial Expenses Paid |
(5.71 | ) | (3.05 | ) | (19.62 | ) | ||||||||||
Payment of Dividend ( including tax on dividend) |
— | — | (273.76 | ) | ||||||||||||
Net Cash (used in) / from Financing Activities |
19.78 | 31.76 | (236.76 | ) | ||||||||||||
D. | Exchange differences on translation of foreign
currency cash and cash equivalents |
88.81 | (36.85 | ) | (42.13 | ) | ||||||||||
Net Increase/(Decrease) in Cash and Cash
equivalents during the period/year |
349.71 | 101.37 | 511.00 | |||||||||||||
Cash and Cash equivalents at the beginning of
the period/year |
1,194.01 | 683.01 | 683.01 | |||||||||||||
Cash and
Cash equivalents at the end of the period/year |
1,543.72 | 784.38 | 1,194.01 | |||||||||||||
Supplementary Information |
||||||||||||||||
Cash and Bank Balances |
4,852.13 | 4,092.79 | 4,502.42 | |||||||||||||
Less: Investment in Long Term Deposits with
Scheduled Banks |
3,308.41 | 3,308.41 | 3,308.41 | |||||||||||||
Balance considered for Cash Flow Statement |
1,543.72 | 784.38 | 1,194.01 | |||||||||||||
The balance of Cash and Cash equivalents include
amounts set aside for payment of dividends |
7.13 | 6.26 | 6.99 | |||||||||||||
Figures for the corresponding period/year have been regrouped, recast and rearranged to conform to those of the current period/year wherever necessary. |
For and on behalf of the Board of Directors |
||
B. Ramalinga Raju
|
B. Rama Raju | |
Chairman
|
Managing Director | |
V. Srinivas
|
G. Jayaraman | |
Director
|
Global Head (Corp. Governance) | |
& Sr. Vice President — Finance
|
& Company Secretary | |
Place : Secunderabad | ||
Date : July 18, 2008 |
24
This ‘6-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed on: | 7/25/08 | |||
7/18/08 | ||||
For Period End: | 6/30/08 | |||
5/15/08 | ||||
5/14/08 | ||||
4/30/08 | ||||
4/21/08 | ||||
4/4/08 | ||||
3/31/08 | 20-F | |||
3/14/08 | ||||
1/4/08 | ||||
1/1/08 | ||||
12/31/07 | 6-K | |||
10/23/07 | ||||
8/14/07 | ||||
8/7/07 | ||||
7/27/07 | 6-K | |||
6/30/07 | 6-K | |||
6/29/07 | ||||
3/31/07 | 20-F | |||
12/1/06 | ||||
10/11/06 | ||||
10/10/06 | ||||
8/21/06 | ||||
6/29/06 | ||||
4/3/06 | ||||
3/31/06 | 20-F | |||
8/31/99 | ||||
6/19/99 | ||||
5/28/99 | ||||
List all Filings |