1.     Corporate information

Rangsons Electronics Private Limited(“the Company”) is engaged in providing Total Electronic Manufacturing Solutions in the fields of medical, industrial, automotive, telecommunication, defence and aerospace applications and its wholly owned subsidiary Techno Tools Precision Engineering Pvt Ltd (“the Subsidiary”) is engaged in manufacture and machining of components for aerospace, automotive and defence industries. The Company and the Subsidiary are hereinafter collectively referred to as the Group.

Effective 1st February 2015, the Company has become a Subsidiary of Cyient Limited, consequent to Cyient Limited acquiring a majority stake in the Company.

2.     Significant accounting policies

2.1      Basis of accounting and brparation of consolidated financial statements

The consolidated financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 (“the Act”), read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of Companies Act, 2013. The consolidated financial statements have been brpared on accrual basis under the historical cost convention.

The financial statements of the subsidiary used in consolidation are drawn up to the same reporting date as of  the Company.    

Accounting policies are consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in accounting policy hitherto in use. Where a change in accounting policy is necessitated due to changed circumstances, detailed disclosures to that effect along with the impact of such change is duly disclosed in the consolidated financial statements.

2.2      Principles of Consolidation

The consolidated financial statements have been brpared on the following basis:

i)                     The financial statements of the Company and its subsidiary have been combined on a line-by line basis by adding together like items of assets, liabilities, income and expenses. Inter-Company balances and transactions and unrealised profits and losses have been fully eliminated.

ii)                   The excess of cost to the Group of its investments in its subsidiary companies over its share of the equity at the dates on which the investments are made, is recognised as Goodwill (on Consolidation), being an asset in the consolidated financial statements. Alternatively, where the share of equity in the subsidiary companies as on the date of investment is in excess of cost of the investment of the Group, it is recognised as Capital Reserve (on Consolidation) and included under the head ‘Reserves and Surplus’ in the consolidated financial statements.

iii)                  Minority interest in the net assets of consolidated subsidiary consists of the amount of equity attributable to the minority shareholders at the date on which investments are made in the subsidiary Company and future movements in the share of the equity, subsequent to the dates of investment.

iv)                 On disposal of a subsidiary, the attributable goodwill is included in the determination of the profit and loss on disposal.

2.3      Use of Estimates

The brparation of the consolidated financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities and disclosures relating to contingent liabilities as at the date of the consolidated financial statements and the reported amounts of income and expenditure during the year. Examples include provisions for doubtful debts, provision for employee benefits, provision for taxation, useful lives of debrciable assets, provisions for impairment, provision for contingencies, provision for warranties / discounts etc. The management believes that the estimates used in brparation of the consolidated financial statements are prudent and reasonable.

Future results could differ from those estimates. The effects of changes in accounting estimates are reflected in the consolidated financial statements in the period in which results are known and, if material, their effects are disclosed in the consolidated financial statements.

2.4      Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Group and the revenue can be reliably measured. The following specific recognition criterion is met before revenue is recognized:

Sale of Products: Sales are recognized net of sales returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the dispatch of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

Manufacturing Income & Service charges: Manufacturing income and service charges are recorded at invoice value and as at the year-end accrued Manufacturing income is recognized based on the extent of services performed.

2.5      Other income 

Interest Income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend Income is recognized when the right to receive dividend is established.

2.6      Valuation of Inventories

Inventories are valued in accordance with the method of valuation brscribed under the Accounting Standard and are as under:

i)  Raw Materials – At Cost or Net realizable Value whichever is less.

ii) Consumable &Stores – At Cost.

iii) Work-in-Progress & Finished Goods – At Cost or Net realizable Value whichever is less.

Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale. Cost includes direct material, labour and a proportion of manufacturing overheads.

2.7      Fixed assets, intangible assets and capital work-in-progress

Fixed Assets are stated at actual cost, less accumulated debrciation and impairment. Cost includes all expenses incurred to bring the assets to its brsent location and condition. Subsequent expenses on fixed assets after its purchase is capitalised only if such expenses results in an increase in the future benefits from such assets beyond the brviously announced standards of performance.

The cost and the accumulated debrciation for fixed assets sold, retired or otherwise disposed off are removed from the stated values and the resulting gains and losses are recognised in the Consolidated Statement of Profit and Loss.

Asset under installation or under construction as at Balance sheet date are shown as Capital Work in Progress (CWIP).

Intangible assets

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

2.8      Borrowing Costs

Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Consolidated Statement of Profit and Loss in the period they occur. Borrowing costs, allocated to acquisition of qualifying assets upto the date of capitalisation of such asset is added to the cost of assets.

1       

2       

2.9      Debrciation & amortization -

Debrciation on fixed assets is provided on straight line method based on the following useful lives. Debrciation is charged on a prorata basis for all fixed assets purchased and sold during the year, from the date of capitalization/disposal

Nature of Asset	Useful Life
Tangible Assets :
Leasehold Factory Buildings	Refer Note 1
Borewell	5 Years
Plant & Machinery – Note 2	15 Years
Tools & Equipment – Note 3	5 Years
Furniture & Fixtures	10 Years
Electrical Installations	10 Years
Vehicles – Two Wheelers	10 Years
Computers – Servers & Networks	6 Years
– End user devices	3 Years
Office Equipment	5 Years
Intangible Assets :
Software – Note 4	3 Years

Note 1: Lease Hold improvements to Factory Buildings are debrciated over the Lease Period

Note 2: The useful life of Plant & machinery is determined on Single Shift Basis.  The multiple shift impact as brscribed under Schedule II to the Act, has been adopted;

Note 3: Based on the technical advice obtained, Tools and Equipment’s are debrciated over 5 years

Note 4: Intangible Asset – Software is amortized over 3 years, based on management’s estimate of useful life

2.10  Impairment of Assets

At each balance sheet date, the Management reviews the carrying amount of its assets to determine whether there is any indication that those assets were impaired.  If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets’ net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their brsent value using a br-tax discount rate that reflects the current market assessment of time value of money and the risk specific to the asset.

When there is indication that impairment loss recognised for an asset in earlier accounting period no longer exists or may have decreased such reversal of impairment loss is recognised in the Consolidated Statement of Profit and Loss.

For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the synergies of acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment annually. If the recoverable amount of the cash generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

2.11  Investments

Investments are either classified as current or long-term based on management’s intent at the time of making the investment. Current investments are carried individually, at the lower of cost and fair value.  Long-term investments are carried individually at cost less provision made to recognise any diminution, other than temporary, in the value of such investment. Cost of investments includes acquisition charges such as brokerage, fees and duties. Provision is made to recognise any reduction in the carrying value of long-term investments and any reversal of such reduction is credited to the Consolidated Statement of Profit and Loss.

2.12  Foreign currency transactions and translation

The transactions in foreign exchange entered into by the Group are accounted at the exchange rate brvalent on the date of the transaction. Foreign currency monetary items (other than derivative contracts) outstanding as at Balance Sheet date are restated at year end exchange rate. Non-monetary items are carried at historical cost and the exchange gains or losses are recognised in the Consolidated Statement of Profit and Loss. Exchange differences arising on a monetary item that, in substance, form part of an enterprise’s net investments in a non-integral foreign operation are accumulated in a foreign currency translation reserve.

2.13  Employee benefits

Employee benefits include provident fund, employee’s state insurance scheme, gratuity fund and compensated absences.

Defined contribution plans

Contributions in respect of Employees Provident Fund which is a defined contribution scheme, are made to a fund administered and managed by the Government of India and is charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plans

The Group provides for retirement benefits in the form of gratuity. The Group accounts for its liability towards Gratuity based on actuarial valuation made by an independent actuary as at the balance sheet date based on projected unit credit method. Actuarial gains and losses are recognized in the Consolidated Statement of Profit and Loss in the period in which they occur.

Compensated absences

The employees of the Group are entitled to compensated absence. The employees can carry-forward a portion of the unutilised accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence. The Group records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Group measures the expected cost of compensated absence based on actuarial valuation made by an independent actuary as at the balance sheet date on projected unit credit method.

2.14  Taxes on Income

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961 and at the rates enacted by the statute on the consolidated balance sheet date.

Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the consolidated balance sheet date.

Deferred tax liability/asset is reviewed at each consolidated balance sheet date.

2.15  Earnings per share (EPS)

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of any extra ordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share 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, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period brsented.

The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

2.16  Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Group has a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the consolidated financial statements.

2.17  Cash and cash equivalents (for the purposes of Cash Flow Statement)

Cash comprises cash on hand, in bank and demand deposits with banks. The Group considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents. Such cash equivalents are subject to insignificant risk of changes in value.

Cash flows are reported using Indirect Method, whereby profit (loss) before extraordinary items and tax is  adjusted for the effects of transaction of non- cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Group are segregated based on the available information.

2.18  Operating Cycle

Based on the nature of activities of the Group and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Group has determined its operating cycle as 12 months for the purpose of classification of assets and liabilities as current and non-current.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

26.    Disclosure of additional information as required by Schedule III – Part II to the Companies Act, 2013

Name of the Indian Subsidiary	Net Assets / (Liabilities)		Share in profit/(loss)
As % of Consolidated Net Assets/(Liabilities)	Amount	As % of Consolidated Profit or Loss	Amount
Rangsons Electronics Private Limited	104.84%	42,06,19,223	77.17%	(5,34,78,379)
Techno Tools Precision Engineering Private Limited	(4.84%)	(1,94,39,647)	22.83%	(1,58,24,036)
Grand Total	100%	40,11,79,576	100%	(6,93,02,415)

27. Exceptional Item

Particulars	March 31,2016
Bonus Provision – Pursuant to Retrospective Amendment to Section 2 and 12 of Payment of Bonus Act.	1,55,26,310
Provision for doubtful receivables and write-off of other Assets	9,13,35,857
Total	10,68,62,167

28. Employee Benefits

a) Defined Contribution Plan

The Group makes Provident Fund contributions to defined contribution plan (“the Scheme”) for qualifying employees.  Under the Scheme, the Group is required to contribute a specified percentage of the payroll costs to fund the benefits.  The contributions payable to the plan is at rates specified in the rules of the Scheme.  Amount contributed to the Scheme is shown in Note No.21.

b) Defined Benefit Plan

The Group offers Gratuity benefit to its employees. The Company has set up a Trust for gratuity which has taken a policy from the Life Insurance Corporation of India.

As per AS-15(revised) disclosures in respect of Gratuity Scheme, based on Actuarial Valuation are as follows:

Particulars		March 31,2016	March 31,2015
1	Expense recognised in Consolidated Statement of Profit & Loss
a)	Current service cost	22,58,223	5,07,244
b)	Interest on Defined Benefit Obligation	8,27,299	1,13,126
c)	Expected return on plan assets	(8,31,831)	(1,05,402)
d)	Actuarial (gain) / loss	13,30,490	(15,087)
	Total	35,84,181	4,99,881
2	Net (Assets) / Liabilities recognised in Consolidated Balance Sheet
a)	Present value of Defined Benefit obligations	1,45,08,924	1,06,64,169
b)	Fair value of Plan assets	1,23,20,854	92,62,091
	Difference rebrsenting Net (Assets) / Liabilities considered in Balance sheet.	21,88,070	14,02,078
3	Change in Gratuity Obligation during the period
a)	Present value of Defined Benefit obligations as on beginning of the Reporting Period	1,06,64,169	1,02,14,862
b)	Current service cost	22,58,223	5,07,244
c)	Interest on Defined Benefit Obligation	8,27,299	1,13,126
d)	Actuarial (gain) / loss	13,30,490	(2,50,426)
e)	Benefits paid	(5,71,258)	79,363
f)	Present value of Defined Benefit obligations as at end of the Reporting Period	1,45,08,923	1,06,64,169
4	Change in fair value of plan assets during the period
a)	Fair value of plan assets as on beginning of the Reporting Period	92,62,091	95,31,924
b)	Expected return on plan assets	8,31,831	1,05,402
c)	Actual Company contribution	27,98,190	-
d)	Actuarial gain / (loss)	0	(18,698)
e)	Benefits paid from plan assets	(5,71,258)	(3,56,537)
f)	Fair value of plan assets as at as at end of the Reporting Period	1,23,20,854	92,62,091
5	Actuarial Assumptions :
a)	Discount rate	7.97%	7.81%
b)	Expected rate of return on Plan assets	8.00%	8.00%
c)	Salary escalation rate	6.00%	6.00%
d)	Attrition Rate	5.00%	5.00%

The estimates of future salary increases considered in the actuarial valuation take account of price inflation, seniority, promotion and other relevant factors such as demand and supply in the employment market. The discount rate is based on the brvailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligation.

Composition of plan assets:

Plan assets comprise of 100% insurer managed funds. Fund is managed by LIC as per IRDA guidelines, category wise composition of the plan assets is not available

29. Goodwill

Particulars		March  31,2016	March 31,2015
Acquisition Cost for the Company of 100% equity in Techno ToolsPrecision Engineering Pvt Ltd		2,73,00,000	2,73,00,000
Less: Paid up Share Capital of Techno Tools Precision Engineering Pvt Ltd		1,00,000	1,00,000
	Total  A	2,72,00,000	2,72,00,000
Closing Reserves & Surplus(Deficit)of Techno Tools Precision Engineering Pvt Ltd		37,15,611	37,15,611
Less : Loss for the period (post acquisition)		6,12,465	6,12,465
	Total B	31,03,146	31,03,146
	Total A+B	3,03,03,146	3,03,03,146

30. Earnings per share (EPS)

Particulars	March  31,2016	March 31,2015
Profit/(Loss) for the period	(6,93,02,415)	865,369*
Basic & Diluted :
Number of shares outstanding as at balance sheet date	13,67,000	13,67,000
Weighted average number of equity shares	13,67,000	13,67,000
Earnings per share	(50.70)	0.63*

* Not Annualized

31. Deferred Taxes

Particulars	March  31,2016	March 31,2015
(A) Deferred tax liability -
i) Debrciation & amortisation	1,72,77,680	1,29,87,928
ii) Expenses / Provisions disallowed	-	-
Sub-Total (A)	1,72,77,680	1,29,87,928
(B)Deferred tax (asset) -
i)  Employee benefits& Others	(2,42,25,719)	(44,80,984)
ii) Eligible losses available for carry forward	(1,99,11,735)	(23,23,268)
Sub-Total (B)	(4,41,37,454)	(68,04,252)
Net Deferred tax (assets) / liability [(B) – (A)]	(2,68,59,774)	61,83,676

32. Related parties Disclosure

                Holding Company

Name of the Holding Company	Country of incorporation	Extent of holding (%) as at March 31, 2016	Extent of holding (%) as at March 31, 2015
Cyient Limited	India	74%	74%

Subsidiaries of Holding Company:

Name of the Subsidiary	Country of incorporation	Extent of holding (%) as at March 31, 2016	Extent of holding (%) as at March 31, 2015
Cyient Europe Limited	UK	100%	100%
Cyient Inc.	USA	100%	100%
Cyient GmbH	Germany	100%	100%
Infotech Geospatial (India) Private Limited, (IGIL)	India	100%	100%
Cyient KK	Japan	100%	100%
Infotech Enterprises Information Technology Services Private Limited (IEITS) (Sold during the year)	India	-	100%
Cyient Insights Private Limited	India	51%	51%
Cyient Australia Pty Limited	Australia	100%	100%
Cyient Singapore Private Limited (Incorporated during the year)	Singapore	100%	-

Joint Venture of Holding Company:

Name of the Joint Venture Company	Country of incorporation	Extent of holding (%) as at March 31, 2016	Extent of holding (%) as at March 31, 2015
Infotech HAL Limited	India	50%	50%

Associate of Holding Company:

Name of the Associate	Country of incorporation	Extent of holding (%) as at March 31, 2016	Extent of holding (%) as at March 31, 2015
Infotech Aerospace Services Inc.	USA	49%	49%

Sub Subsidiaries of Holding Company:

Name of the Subsidiary	Country of incorporation	Extent of holding (%) as at March 31, 2016	Extent of holding (%) as at March 31, 2015
Cyient Canada Inc., (formerly Infotech Software Solutions Canada Inc.)	Canada	100%	100%
Cyient BV	Netherlands	100%	100%
CyientSchweiz GmbH	Switzerland	100%	100%-
Cyient SRO (Incorporated during the year)	Czech Republic	100%	-
Cyient AB	Sweden	100%	100%
Cyient Insights LLC, United States of America	USA	100%	100%

Subsidiary of Associate of Holding Company:

Name of the Subsidiary	Country of incorporation	Extent of holding (%) as at March 31, 2016	Extent of holding (%) as at March 31, 2015
Infotech Enterprises Information Technology Services GmbH *	Germany	-	100%

Subsidiary of the Company:

Name of the Subsidiary	Country of incorporation	Extent of holding (%) as at March 31, 2016	Extent of holding (%) as at March 31, 2015
Techno Tools Precision Engineering Private Limited	India	100%	100%

Key Managerial Personnel:

Name	Designation
Krishna Bodanapu	Director
Ajay Aggarwal	Director
Arjun M Ranga (Upto September 24, 2015)	Director
Phanisha K.N (Upto September 24, 2015)	Executive Director
Dr. Venkatesh Padmanabhan (With effect from October 01, 2015)	Managing Director & Chief Executive Officer
Pavan G Ranga (With effect from September 24, 2015)	Director

Relative of Key Managerial Persons:

B. Ashok Reddy

Anirudh M Ranga

Vishnudas V Ranga

Kiran Ranga

Dr. Sridhar

R. Guru

R.N. Murthy

R. Vasu

Entity in which Key Managerial Persons and their relatives are able to exercise significant influence:

Sl No	Name of the Entity in which Key Managerial Person exercise Significant Influence
1.	N Ranga Rao and Sons
2.	Ripple Fragrance Private Limited
3.	VCT Labs
4.	Sri Ranga Trust
5.	Rangsons Schuster Technologies Private Limited
6.	Rangsons Defence Solutions Private Limited
7.	Rangsons Interconnect Devices Private Limited

(ii) Summary of the transactions with the above related parties are as follows:

Nature of the transaction	Party name	For the year ended March 31, 2016	For the period 1st Feb 2015 to Mar 31, 2015
Revenue - Sale of goods/services	Rangsons Defence Solutions Private Limited	4,59,022	-
Sub-contracting charges	Rangsons Interconnect Devices Private Limited	4,05,535	5,53,666
Car Lease Charges Remuneration [Upto the date of resignation] Resignation date is 24th Sep 2015	Phanisha K.N	69,600 10,78,846	24,000 2,75,150
Rent Paid	VCT Labs	53,33,320	13,77,238
Rent Paid	Sri Ranga Trust	1,12,00,924	28,65,886
Business Development Expenses	Ripple Fragrance Private Limited	51,870	-
Purchase of Fixed Assets [CWIP]	Rangsons Interconnect Devices Private Limited	88,24,866	-
Revenue - Sale of goods/services	Cyient Ltd.,	14,48,067	-
Revenue - Sale of goods/services	Cyient Inc.,	1,06,828	-
Revenue - Sale of goods/services	Cyient Inc., Japan	31,306	-
Reimbursement of Expenses	N. Ranga Rao & Sons	-	70,000
Remuneration to Key Managerial Personnel	Pavan G Ranga N B Niranjan	- 30,00,000	16,550 2,50,000
Purchase of Fixed Assets from Entities over which KMP are able to exercise influence	Rangsons Defence Solutions Private Limited	-	12,00,000
Sale of Fixed Assets to Entities over which KMP are able to exercise influence	Rangsons Interconnect Devices Private Limited	-	6,21,326
Unsecured Loans	Cyient Ltd.,	15,00,00,000	-
Interest on unsecured loan	Cyient Ltd.,	17,17,808	-

(iii) Balances at the year-end:                                          

Nature of the transaction	Party name	As at March  31, 2016	As at March 31, 2015
Revenue - Sale of goods/services	Rangsons Defence Solutions Private Limited	5,12,072	-
Rent Payable	VCT Labs Sri Ranga Trust	4,43,426 9,71,971	3,21,352 7,97,242
Bills Receivables	Cyient Ltd., Japan	31,306	-
Receivables	Techno Tools, Prop: N.B. Niranjan	1,23,11,006	1,23,22,606
Trade Payables	Rangsons Interconnect Devices Pvt. Ltd.,	-	10,636
Outstanding Balance payable to KMP	Pavan G Ranga Arjun M Ranga V Kiran Ranga	- - -	2,19,68,795 2,05,42,833 10,07,610
Lease / Rental Deposit paid	V C T Labs	75,00,000	75,00,000
Unsecured Loans	Cyient Ltd.,	15,00,00,000	-
Interest on unsecured loan Payable	Cyient Ltd.,	15,46,028	-

33. Segment Report

Company operates in one Business Segment – Electronic Manufacturing Solutions. Company has identified geographical segment viz. India and Rest of World (ROW), based on the location of its customers for the purpose of reporting. The following table brsents segment revenues, results, assets & liabilities in accordance with AS-17:

Particulars	For the year ended 31st March, 2016
Geographical Segments		Total
India	ROW
Revenue	1,11,53,72,078	1,44,90,70,499	2,56,44,42,577
Less: Inter Segment Revenue	-	-	-
Segment Revenue	1,11,53,72,078	1,44,90,70,499	2,56,44,42,577
Less: Segment Expenses	81,61,80,312	1,07,24,09,782	1,88,85,90,094
Segment Results	29,91,91,766	37,66,60,717	67,58,52,483
Less: Unallocable Expenses (Net)	-	-	80,70,16,676
Operating Income	-	-	(13,11,64,193)
Add: Other Income (Net)	-	-	2,88,18,328
Profit before Taxes	-	-	(10,23,45,865)
Less: Tax Expenses (Deferred Tax Asset)	-	-	(3,30,43,450)
Net Profit (Loss) for the Year	-	-	(6,93,02,415)

Particulars	For the year ended 31st March, 2016
Geographical Segments		Total
India	ROW
Segment Assets	96,58,28,185	65,08,59,017	1,61,66,87,202
Un-allocable Assets	-	-	93,77,56,179
Total Assets			2,55,44,43,381
Segment Liabilities	10,89,96,274	55,90,34,873	66,80,31,147
Un-Allocable Liabilities	-	-	1,88,64,12,234
Total Liabilities	-	-	2,55,44,43,381
Other Information -	-	-	-
Capital Expenditure(Allocable)	-	-	-
Capital Expenditure(Un-Allocable)	-	-	9,20,14,853
Debrciation (Allocable)	-	-	-
Debrciation (Un-Allocable)	-	-	5,66,35,796

Notes:

Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Expenses not allocable to a segment on reasonable basis have been disclosed as “Unallocable Expenses”.

Segment assets and liabilities rebrsent the assets and liabilities in respective segments. Assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable Assets” or “Unallocable Liabilities”.

34. Details of the Contingent Liabilities& Commitments

i) Contingent Liabilities

Particulars	March 31,2016	March 31,2015
Claims Against the Company not acknowledged as Debt -
a. Disputed Service Tax demands	5,92,349	5,92,349
b. Disputed Income Tax liabilities	-	39,66,320
c. Differential amount of Customs Duty in respect of machinery imported under EPCG / EHTP Scheme excluding interest there on	5,80,44,151	5,50,79,756
d. Differential amount of Customs Duty in respect of inputs imported under DEPB License Scheme excluding interest there on	9,45,51,765	7,49,10,097
ii) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances)	March  31,2016	March 31,2015
a. Tangible assets	-	1,10,42,297
b. Intangible assets – Software	-	42,61,635

35. Foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

Currency	Cash and Cash equivalents	Current and Non-current		Trade and other receivables	Trade Payables	Other current liabilities	Total
Loans & advances	Other current assets
USD	23,53,572	-	-	5,294,583	68,42,898	87,68,429	2,32,59,481
GBP	-	-	-	-	11,564	-	11,564
EUR	81,909	-	-	46,597	4,770	1,53,275	2,86,552
SGD	-	-	-	-	122	-	122
JPY	-	-	-	53,468	5,75,793	-	6,29,261
` Equivalent	16,21,11,436			35,43,37,333	45,45,74,848	59,25,97,659	156,36,21,277
Previous Year	(1,59,96,743)			(11,16,82,663)	(39,52,69,513)	(33,81,66,198)	(86,11,15,117)

36. Expenditure in Foreign Currency

Particulars	March 31,2016
Value of Import on CIF Basis
Raw Material	194,91,93,648
Capital Goods	2,78,35,018
Other Expenditure in Foreign Currency
Professional and consultation fees	20,90,717
Foreign Travel Expenses	27,78,427
Repairs & Maintenance	90,16,685
Others	26,01,653

37. Earnings in Foreign Currency

Particulars	March 31,2016
a.       FOB Value of Exports including Deemed Exports	71,88,29,109
b.       Other Income	3,23,37,510

38.    Raw Material Consumption

Particulars	March 31,2016
a.       Imported	136,48,57,964	72.55%
b.       Indigenous	51,63,23,229	27.45%
Total	188,11,81,193	100.00%

     Details of Raw Material Consumption

Particulars	March 31, 2016
a.       Microwave Integrated Circuits	44,30,07,850
b.       Integrated Circuits	33,12,02,960
c.        Printed Circuit Boards	13,84,86,624
d.       Transistors	3,58,23,047
e.        Others	93,26,60,712
Total	188,11,81,193

39. The Group has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid together with interest paid /payable as required under the said act have not been given.

40.  Corporate Social Responsibility (CSR): The Company is in the process of re-formulating its CSR Policy in line with its holding Company Cyient Ltd., Hence, no amount has been spent in this regard. Amount required to be spent under the Act is as under:

                   

Particulars of brceding 3 financial year	Net Profit as per Sec. 198 [Amt in Rs]
F.Y. 2014-15	16,62,62,899
F.Y. 2013-14	21,40,60,235
F.Y. 2012-13	3,30,96,624
Average Net Profit	13,78,06,586
CSR Amount to be spent @ 2% of the above	27,56,132
CSR Amount spent during the year	3,00,001

41.  The Previous Year comparable figures are not comparable as they rebrsent the Post acquisition data only (i.e., 1st Feb’15 to 31st Mar’15)

 for K P Rao & Co.,                                                                   For and on behalf of the Board

Chartered Accountants                                       

Firm Registration No: 003135S

Ravindranath P                                Dr. Venkatesh Padmanabhan              Ajay Aggarwal                   Parvati K R

Partner                                                    Managing Director & CEO                             Director                   Company Secretary

Membership No. 018151                                (DIN – 06528470)                        (DIN – 02565242)

Date: April 18, 2016Place: Mysore

2.1      Employee benefits

Employee benefits include provident fund, employee’s state insurance scheme, gratuity fund and compensated absences.

Defined contribution plans

Contributions in respect of Employees Provident Fund which is a defined contribution scheme, are made to a fund administered and managed by the Government of India and is charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plans

The Group provides for retirement benefits in the form of gratuity. The Group accounts for its liability towards Gratuity based on actuarial valuation made by an independent actuary as at the balance sheet date based on projected unit credit method. Actuarial gains and losses are recognized in the Consolidated Statement of Profit and Loss in the period in which they occur.

Compensated absences

The employees of the Group are entitled to compensated absence. The employees can carry-forward a portion of the unutilised accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence. The Group records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Group measures the expected cost of compensated absence based on actuarial valuation made by an independent actuary as at the balance sheet date on projected unit credit method.

Segment Report

Company operates in one Business Segment – Electronic Manufacturing Solutions. Company has identified geographical segment viz. India and Rest of World (ROW), based on the location of its customers for the purpose of reporting. The following table brsents segment revenues, results, assets & liabilities in accordance with AS-17:

Particulars	For the year ended 31st March, 2016
Geographical Segments		Total
India	ROW
Revenue	1,11,53,72,078	1,44,90,70,499	2,56,44,42,577
Less: Inter Segment Revenue	-	-	-
Segment Revenue	1,11,53,72,078	1,44,90,70,499	2,56,44,42,577
Less: Segment Expenses	81,61,80,312	1,07,24,09,782	1,88,85,90,094
Segment Results	29,91,91,766	37,66,60,717	67,58,52,483
Less: Unallocable Expenses (Net)	-	-	80,70,16,676
Operating Income	-	-	(13,11,64,193)
Add: Other Income (Net)	-	-	2,88,18,328
Profit before Taxes	-	-	(10,23,45,865)
Less: Tax Expenses (Deferred Tax Asset)	-	-	(3,30,43,450)
Net Profit (Loss) for the Year	-	-	(6,93,02,415)

Particulars	For the year ended 31st March, 2016
Geographical Segments		Total
India	ROW
Segment Assets	96,58,28,185	65,08,59,017	1,61,66,87,202
Un-allocable Assets	-	-	93,77,56,179
Total Assets			2,55,44,43,381
Segment Liabilities	10,89,96,274	55,90,34,873	66,80,31,147
Un-Allocable Liabilities	-	-	1,88,64,12,234
Total Liabilities	-	-	2,55,44,43,381
Other Information -	-	-	-
Capital Expenditure(Allocable)	-	-	-
Capital Expenditure(Un-Allocable)	-	-	9,20,14,853
Debrciation (Allocable)	-	-	-
Debrciation (Un-Allocable)	-	-	5,66,35,796

Notes:

Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Expenses not allocable to a segment on reasonable basis have been disclosed as “Unallocable Expenses”.

Segment assets and liabilities rebrsent the assets and liabilities in respective segments. Assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable Assets” or “Unallocable Liabilities”.