| 1. BACKGROUND
The Company is engaged in the business of IT Services and Consulting.
The Company was until February 2010, operating in the name of Jaisal
Securities Limited. Effective from February 4, 2010, the name of the
company was changed to AURUM SOFT SYSTEMS LIMITED. The Shares of the
Company are listed on the Bombay stock exchange.
2. Shares held by holding company, its subsidiaries and associates
The company does not have any holding company.
3. Rights, preferences and restrictions attached to equity shares
The company has one class of equity shares having a face value of Rs.
2/- per share. Each shareholder is eligible for one vote for each share
held in the company. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the
remaining assets of the company after distribution of all preferential
amounts, in proportion to their shareholding.
4. Rights, preferences and restrictions attached to preference shares
The company has not issued any preference shares
5. Shares allotted as fully paid up by way of bonus shares (during the
5 years preceding 31st March 2015)
The Company allotted 21,700,000 equity shares of face value Rs. 2/-, as
fully paid up bonus shares by utilisation of the Securities premium
account on 7th February 2011, pursuant to a shareholder's resolution
passed at the Extra ordinary General Meeting held on 19th January 2011.
Business Segment
The Company has only one reportable business segment viz., IT services
and Consulting.
Geographical Segment
Entire Revenue from IT services and Consulting business is derived from
clients in India and hence the Company does not have any separate
reportable geographical segment.
The economic slowdown and the tightening of the immigration laws and
hiring procedures have had an adverse effect on the operations of the
Company's step down subsidiaries namely Dice Technologies Inc., USA and
Dicetek LLC., Dubai. This has adversely impacted the financial
position of the step down subsidiaries. In view of this, Dicetek (Sing)
Pte Limited, Singapore, has disposed of investment in the shares held
by it in Dice Technologies Inc., USA. Accordingly, Dice Technologies
Inc., USA has ceased to be a subsidiary of the Company. Dicetek (Sing)
Pte Limited, Singapore has also taken steps to dispose of its
investment in Dicetek LLC., Dubai
6. RELATED PARTY DISCLOSURE
i. Parties exercising Substantial control
Shripathee Investments Private Limited - Principal Shareholder - Holds
28.31% of the paid up equity share capital of the Company as on March
31, 2015.
ii. Key Managerial personnel
Mr. Srikanth Ramanathan, Managing Director
iii. Subsidiaries
Dicetek (Sing) Pte Limited, Singapore
Dicetek LLC., Dubai
7. Gratuity
The computations are based on the following assumptions:
Discount rate : 8%
Salary Escalation : 10%
* As per the actuarial valuation carried out, no material additional
gratuity liability exists when compared to last financial year. Hence
no provision for gratuity has been made for the financial year.
8. The Company did not have any outstanding dues to any Micro or Small
Enterprises as defined under Micro, Small and Medium Enterprises
Development Act, 2006 at any point during the year that were
outstanding for a period of more than 45 days from the date of
acceptance.
9. Forward Contracts
The Company does not hedge its risks associated with foreign currency
fluctuations relating to its receivables and payables, by entering into
foreign currency forward contracts. The Company also does not use
forward contracts for speculative purposes.
10. CONTINGENT LIABILITY
The Company has not provided any liability in respect of the following
contested claim:
Name of the Statute : Income Tax Act, 1961
Nature of Dues : Income Tax
Amount : Rs. 499,559
Period to which amount relates : 1996-97
Forum where dispute pending : CIT (Appeals)
The Company has paid the said amount of Rs. 499,559 under protest. The
Company however is of the opinion that the above demand is not
sustainable and expects to succeed in its appeal.
11. The previous year figures have been regrouped / reclassified,
wherever necessary to confirm to the current year presentation.
Accordingly, amounts and other disclosure for the previous year are
included as an integral part of the current year's Financial Statement
and are to be read in relation to the amounts and other disclosures
relating to the current year.
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