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NOTES TO ACCOUNTS

Tata Elxsi Ltd.

You can view the entire text of Notes to accounts of the company for the latest year
Market Cap. (₹) 4459.62 Cr. P/BV 4.73 Book Value (₹) 151.38
52 Week High/Low (₹) 1090/592 FV/ML 10/1 P/E(X) 15.38
Bookclosure 17/07/2019 EPS (₹) 46.56 Div Yield (%) 1.12
Year End :2019-03 

Notes forming part of the financial statements

34. Segment information

The Chief Executive Officer and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108 - operating segments. The CODM evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by industry classes. Accordingly, the segment information has been presented for industry classes.

The Company has identified business segments as its primary segment. Business segments are primarily system integration & support and software development & services.

Each segment item reported is measured at the measure used to report to CODM for the purposes of making decisions about allocating resources to the segment and assessing its performance.

Revenues and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Property, plant & equipment that are used interchangeably amongst segments are not allocated to primary segment.

Rs lakhs

Particulars

Year ended March 31, 2019

Year ended March 31, 2018

Segment revenue

Software development & services

1,54,313.33

1,32,938.93

System integration & support services

5,379.83

5,690.62

Total

1,59,693.16

1,38,629.55

Segment results

Software development & services

45,590.46

39,620.14

System integration & support services

923.20

842.34

Total

46,513.66

40,462.48

Less: Unallocable expenditure (net of unallocable income)

3,173.79

4,071.82

Profit before tax

43,339.87

36,390.66

Tax expense

14,342.98

12,386.87

Net profit for the period / year

28,996.89

24,003.79

Segment assets

As at March 31, 2019

As at March 31, 2018

Software development & services

54,239.86

47,067.43

System integration & support services

1,915.11

1,707.87

Unallocable assets

58,183.91

45,713.97

Total

1,14,338.88

94,489.27

Segment liabilities

Software development & services

12,683.88

10,639.64

System integration & support services

1,125.11

1,494.45

Unallocable liabilities

6,254.62

8,520.05

Total

20,063.61

20,654.14

The geographic segments individually contributing 10 percent non-current assets are shown separately: or more of the Company's revenues and segment

Notes forming part of the financial statements

Rs lakhs

Geographic Segment

Revenues For the year ended March 31, 2019

Non-current assets As at March 31, 2019

Revenues For the year ended March 31, 2018

Non-current assets As at March 31, 2018

India

19,282.17

11,409.49

17,596.39

12,122.85

US

48,980.71

9.18

41,003.27

10.41

Europe

70,577.16

7.17

60,680.52

12.32

Others

20,853.12

1.35

19,349.37

2.62

Total

1,59,693.16

11,427.19

1,38,629.55

12,148.20

Geographical non-current assets (property, plant and equipment, intangible assets, income tax assets and other non-current assets) are allocated based on the location of the assets.

Information about major customers:

The revenues of Rs 1,54,313.33 (previous year Rs 1,32,938.93) lakhs arising from the software development and services segment includes Rs 36,749.39 (Previous year Rs 35,079.76) lakhs representing revenue of more than 10% of the total revenue of the Company is from one customer.

35. Ind AS 115 - Revenue

The effect of initially applying Ind AS 115 on the Company's revenue from contracts with customers is described in Note 2.4. Due to the transition method chosen in applying Ind AS 115, comparative information has not been restated to reflect the new requirements.

A. Contract balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.

As at March 31, 2019

As at March 31, 2018

Trade receivables

35,654.12

30,666.64

Unbilled receivables (March 31, 2018: Unbilled revenue)

5,089.10

7,047.45

Contract assets (previous year included in unbilled revenue)

2,873.82

-

Contract liabilities

1,592.18

1,272.00

The following table discloses the movement in contract assets during the year ended March 31, 2019:

As at March 31, 2019

Balance at the beginning

1,526.11

Add: Revenue recognized during the year

14,184.44

Less: Invoiced during the year

12,833.60

Less : Translation gain/(loss)

(3.13)

Balance at the end

2,873.82

The following table discloses the movement in unearned revenue balances during the year ended March 31. 2019:

As at March 31, 2019

Balance at the beginning

1,272.00

Less: Revenue recognized during the year

11,605.46

Add: Invoiced during the year

11,915.54

Less: Translation gain/(loss)

(10.10)

Balance at the end

1,592.18

B. Remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized and adjustments for currency

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized corresponds directly with the value to the customer of the Company's performance completed to date, typically those contracts where invoicing is on time and material, unit price basis and no information is provided about remaining performance obligations at March 31, 2019 that have an original expected duration of one year or less, as allowed by Ind AS 115.

The aggregate value of performance obligations that are completely or partially unsatisfied as of March 31, 2019 is Rs 6,108.92 lakhs. Out of this, the Company expects to recognize revenue of around 93.40% within the next one year and the remaining thereafter. This includes contracts that can be terminated for convenience without a substantive penalty since, based on current assessment, the occurrence of the same is expected to be remote.

36. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Particulars

As at March 31, 2019

As at March 31, 2018

(i) Principal amount remaining unpaid to any supplier as at the end of the accounting year

-

-

(ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year

-

-

(iii) The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed day

539.30

190.45

(iv) The amount of interest due and payable for the year

-

-

(v) The amount of interest accrued and remaining unpaid at the end of the accounting year

-

-

(vi) The amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid

"

"

37. Corporate Social Responsibility:

a. Gross amount required to be spent by the Company during the year Rs 484.13 lakhs (March 31, 2018 Rs 375.09 lakhs)

b. Amount spent during the year on :

For the year ended March 31, 2019

For the year ended March 31, 2018

Particulars

In cash

Yet to be paid in cash

Total

In cash

Yet to be paid in cash

Total

Construction/acquisition of any asset

Nil

Nil

Nil

Nil

Nil

Nil

On purpose other than (i) above

575.16

Nil

575.16*

284.86

Nil

284.86*

* Includes overhead expense of Rs 24.21 lakhs (March 31, 2018 Rs 8.75 lakhs)

38. The Company has entered into incubation agreement for providing services pertaining to promotion of business of the entrepreneurs and also providing infrastructure facilities and resources. In consideration for the services rendered shares has been allocated /transferred as under.

Name of the Company

No shares allotted / transferred

Face value of shares (Rs)

Big V Telecom Private Limited

22,250

10

Sismatik Solutions Private Limited

1,000

10

Street Smart Mobile Technologies Private Limited

2,000

10

Considering probability of successful outcome of such development and the ability of these entities to commercialise the product being developed, as a matter of prudence the company has recorded these investments at Rs 1/-. Any gain on such investment will be recognized on its disposal.

39. The aggregate amount of research and development expenditure recognised as an expense during the year is Rs 2,254.28 lakhs (Previous year Rs 1,990.67 lakhs)

40. The sitting fee and commission for non-executive directors is Rs 361.90 lakhs and Rs 309.00 lakhs for the financial year 2018-19 and 2017-18 respectively.

41. The disclosure regarding specified bank notes

The disclosures regarding details of specified bank notes held and transacted during November 8, 2016 to December

30, 2016 has not been made in these financial statements since the requirement does not pertain to financial year ended March 31, 2019

42. Subsequent event note Dividends

During the year ended March 31, 2019, the Company paid total dividends at Rs 11 per equity share for the year ended March 31, 2018.

Dividends declared by the Company are based on the profit available for distribution. Distribution of dividend out of General Reserve and Retained earnings is subject to applicable dividend distribution tax. On April 24, 2019, the Board of Directors of the Company have proposed a final dividend of Rs 13.50 per share in respect of the year ended March

31, 2019 subject to the approval of shareholders at the Annual General Meeting.

43. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

As per our report of even date attached

for B S R & Co. LLP Chartered Accountants

Firm Registration No.: 101248W/W-100022

For and on behalf of the Board

N G Subramaniam DiN:07006215

Chairman

Shyamala Gopinath DIN-. 02362921

Director

Sanjay Sharma

Madhukar Dev DIN:00082W3

Managing Director

Partner

Muralidharan H.V

Chief Financial Officer

Membership No,: 063980

G. Vaidyanathan

Company Secretary

Bengaluru, April 24, 2019

Bengaluru, April 24, 2019

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