|
Year End: March 2020 |
Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory1 | Background | | | | Indegene Private Limited ('the Company' or 'Indegene') was incorporated in the year 1998. The Company is a global provider of solutions consisting of analytics, technology and commercial, medical, regulatory and safety services to life science and healthcare organizations. Indegene together with its subsidiaries is collectively referred to as "the Group". | | | | | | | | | The Group also provides healthcare solutions that enable global healthcare organisations address complex challenges, to improve health and business outcomes. | | | | | | | 2 | Significant accounting policies | | | | | | | | 2.1 | Basis of brparation of consolidated financial statements | | | | | | | | | The consolidated financial statements of the Group are brpared in accordance with Indian Generally Accepted Accounting Principles (IGAAP) and brsented under the historical cost convention on the accrual basis of accounting and comply with the accounting standards brscribed under Section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014, other pronouncements of the Institute of Chartered Accountants of India, and the provisions of the Act to the extent notified and applicable. | | | | | | | | | | The accounting policies have been consistently applied by the Group. The consolidated financial statements are brsented in Indian rupees. | | | | | | 2.2 | Principles of consolidation | | | | | | | | | The consolidated financial statements include the financial statements of Indegene and its subsidiaries, which are more than 50% owned or controlled by Indegene. | | | | | | | | The consolidated financial statements have been brpared on the following basis: | | | | | | | The financial statements of the parent company and its majority owned / controlled subsidiaries have been combined on a line by line basis by adding together the book values of all items of assets, liabilities, incomes and expenses after eliminating all inter-company balances / transactions and resulting unrealized gain / loss. Unrealized losses resulting from intra-company transactions have also been eliminated except to the extent that recoverable value of related assets is lower than their cost to the Group. The amounts shown in respect of reserves comprise the amount of the relevant reserves as per the balance sheet of the parent company and its share in the post-acquisition increase in the relevant reserves of the subsidiaries. In case subsidiaries acquired during the year, the balance of income and expenses are consolidated from the date of acquisition. | | | | | | | | | | | | | The excess / deficit of cost to the parent company of its investment in the subsidiaries over its portion of equity at the respective dates on which investment in such entities were made is recognised in the consolidated financial statements as goodwill / capital reserve. The parent company's portion of equity in such entities is determined on the basis of the book values of assets and liabilities as per the financial statements of such entities as on the date of investment and if not available, the financial statements for the immediately brceding period adjusted for the effects. | | | | | | | | | | | Minority interest in the net assets of consolidated subsidiaries consists of: | | - | The amount of equity attributable to the minorities at the dates on which investment in a subsidiary is made; and | | - | The minorities share of movements in equity since the date of parent-subsidiary relationship came into existence. | | | | | | | Minority interest in share of net result for the year is identified and adjusted against the profit after tax. | | | | | | | The consolidated financial statements include share of profit/ loss of the associate companies which has been accounted as per the "Equity method", and accordingly, the share of profit/ loss of the associate companies has been added to/ deducted from the cost of investment. The financial statements of the associate company which are included in the consolidation are drawn up to the same reporting date as that of the Company. | | | | | | | | | | The consolidated financial statements are brsented, to the extent possible, in the same format as that adopted by the parent company for its separate financial statements. | | | | | | | | The consolidated financial statements are brpared using uniform accounting policies for similar transactions and other events in similar circumstances. The details of the subsidiaries and holding has been listed below: | | | | | | | | List of subsidiaries | Country of Incorporation | Percentage of holding (%) | | | ILSL Holdings Inc. | USA | 100 | | Indegene Far East Pte Ltd. | Singapore | 100 | | Indegene Europe LLC | Switzerland | 100 | | Indegene Lifesystems Consulting (Shanghai) Co. Ltd. | China | 100 | | Omnibrsence Technologies Inc (formerly known as Indegene Omnibrsence Inc)(2) | USA | 75 | | | Indegene Japan, GK(3) | Japan | 100 | | | | | | | (1) | Indegene Australia Pty Ltd, subsidiary of Indegene Private Limited has been deregistered as a company with effect from 15 August 2018. | | | | (2) | The percentage of holding has been changed from 100% to 75% w.e.f December 16, 2019. Refer note 34 for the details. | | (3) | The company has been registered w.e.f 15 June 2020. | | | | | | | | | | | | | | Fellow subsidiaries | Country of Incorporation | Percentage of holding (%) | | Subsidiaries of ILSL Holdings Inc | | | | Indegene Inc (3) | USA | 100 | | Medcases LLC | USA | 100 | | Indegene Healthcare LLC | USA | 100 | | Services Indegene Aptilon Inc | Canada | 100 | | Indegene Wincere Inc | USA | 100 | | Indegene Ireland Limited(4) | Ireland | 100 | | Subsidiaries of Omnibrsence Technologies Inc | | | | Omnibrsence Technology Services Inc (formerly known as Indegene Omnibrsence Services, Inc)(5) | Canada | 100 | | | | | | | | (3) | Indegene Encima Inc, erstwhile subsidiary of ILSL Holdings Inc, has been merged with Indegene Inc on 9 January 2019 | | (4) | Incorporated w.e.f 14 June 2019 | | | | (5) | Omnibrsence Technology Services Inc (formerly known as Indegene Omnibrsence Services, Inc), erstwhile direct subsidiary of Indegene Private Limited, has become the subsidiary to Omnibrsence Technologies Inc (formerly known as Indegene Omnibrsence Inc) on 1 November 2018 through sale of shares for a consideration. | | | | | | | | | | | List of associates | Country of Incorporation | Percentage of holding (%) | | DT Associates Research and Consulting Services Ltd(1) | England and Wales | 46% | | | | | | | (1) | Associate of ILSL Holdings Inc w.e.f August 27, 2019. Refer note 33 for the details | | | | | | | 2.3 | Use of estimates | | | | | | | | | The brparation of consolidated financial statements, in conformity with IGAAP requires management to make estimates and assumptions that affect the reported amounts of income and expenses for the year, assets and liabilities and disclosures relating to contingent liabilities as of the date of the consolidated financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods. | | | | | | | | | 2.4 | Current and non - current classification | | | | | | | | | All assets and liabilities are classified into current and non - current. | | | | | | | | Assets | | | | An asset is classified as current when it satisfies any of the following criteria: | | | a) | It is expected to be realised in, or is intended for sale or consumption in, the Group's normal operating cycle; | | b) | It is held primarily for the purpose of being traded; | | c) | It is expected to be realised within 12 months after the reporting date; or | | d) | It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. | | | | | | | | | Current assets include the current portion of non - current financial assets. | | | | | | | | All other assets are classified as non - current. | | | | | | | | | Liabilities | | | | A liability is classified as current when it satisfies any of the following criteria: | | | a) | It is expected to be settled in the Group's normal operating cycle; | | b) | It is held primarily for the purpose of being traded; | | c) | It is expected to be settled within 12 months after the reporting date; or | | d) | The Group does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. | | | | | | | | | | | Current liabilities include the current portion of non - current financial liabilities. | | | All other liabilities are classified as non - current. | | | | | | | | | Operating cycle | | | | Operating cycle is the time between the acquisition of assets for processing and their realizations in cash or cash equivalents. | | | | | | | 2.5 | Revenue recognition | | | | | | | | | Operations | | | | The Group recognizes revenue when the significant terms of the arrangement are enforceable, which is generally in the form of signed binding contracts, purchase order, statement of work and the collectability is reasonably assured. The Group derives revenues from providing combrhensive solutions to life-sciences and healthcare organisations. | | | | | | | | | | Revenue, when arrangements are on a time and material basis, is recognized as the related services are performed. When services are performed through an indefinite number of repetitive acts over a specified period, revenue is recognized on a straight-line basis over the contractual period. Revenue from fixed price business process services are recognized on completion of each business activity. Revenue on rendering of services is recognized if it is not unreasonable to expect ultimate collection. License and maintenance revenue are recognized as revenue ratably over the stated contractual period. | | | | | | | | | | | Unbilled revenue rebrsents earnings in excess of billings while unearned revenue rebrsents billings in excess of earnings. Revenues are stated net of discounts and any applicable duties or taxes. Reimbursements of out of pocket expenses received from customers, where the significant risk and reward is with the Group, have been included as part of the revenue. | | | | | | | | | Others | | | | Interest income is recognised on a time proportion basis taking into account the amount outstanding and interest rate applicable. | | | | | | | 2.6 | Property, plant and equipment and debrciation | | | | | | | | | Property, Plant and equipment | | | | Fixed assets are carried at cost of acquisition or construction less accumulated debrciation. The cost of fixed assets includes freight, duties, taxes and other incidental expenses related to the acquisition or construction of the respective assets. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Group and the cost of the item can be measured reliably. | | | | | | | | | | | | Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and the cost of fixed assets not ready for their intended use on such date, are disclosed as long-term loans and advances and capital work-in-progress respectively. | | | | | | | | Debrciation on assets is provided on straight line basis over the useful life of the asset estimated by the Management. Debrciation for assets purchased / sold during the period is proportionately charged commencing from the date the asset is available to the Group for its use/ date the asset is sold. | | | | | | | | | The Group estimates the useful life of fixed assets as follows: | | | | | | | | | | Asset classification | Estimated useful life | | | | Computers and accessories | 3 years | | | | Furniture and fittings | 3-5 years | | | | Office equipment | 3-5 years | | | | Vehicle | 5 years | | | | | | | | Leasehold improvements are debrciated over the primary period of lease or over the useful lives of assets, whichever is lower. The debrciation method, useful life and residual value are reviewed at each reporting date and adjusted if appropriate. | | | | | | | | Assets acquired through business combination are debrciated on straight line basis over the remaining useful life of asset estimated by the management on the date of acquisition. | | | | | | | 2.7 | Intangible assets and amortisation | | | | | | | | | (i) Goodwill | | | | Goodwill that arises on an amalgamation or on the acquisition of a business is brsented as an intangible asset. | | Goodwill arising on acquisition of a business is measured at cost less any accumulated impairment loss. Such goodwill is not amortized but tested for impairment annually. | | | | | | | | (ii) Acquired intangible assets | | | | Intangible assets that are acquired by the Group are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortization and any accumulated impairment loss. | | | Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates. | | | | | | | | (iii) Internally generated intangible assets | | | | Internally generated goodwill is not recognised as an asset. With regard to other internally generated intangible assets, expenditure incurred on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in the consolidated statement of profit or loss as and when incurred. | | | | | | | | | Development expenditure is capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use the asset. Development activities involve a plan or design for the production of new or substantially improved products or processes. The expenditure capitalized includes the cost of materials, staff costs, overhead costs that are directly attributable to brparing the asset for its intended use. Other development expenditure is recognized in the consolidated statement of profit or loss as and when incurred. | | | | | | | | | | | | Intangible assets are amortized in the consolidated statement of profit or loss on a straight line basis over their estimated useful lives, from the date that they are available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Amortization methods and the estimated useful life of assets are reviewed, and where appropriate are adjusted, annually. | | | | | | | | | | The Group estimates the useful life of intangible assets as follows: | | | | | | | | | Asset classification | Estimated useful life | | | | Technologies and customer relationship | 0.5-10 years | | | | Trademark | 10 years | | | | Internally developed software | 3 years | | | | Software | 3 years | | | | | | | 2.8 | Employee benefits | | | | | | | | | Short-term employee benefits | | | | Employee benefits payable wholly within twelve months of receiving employee services are classified as short term employee benefits. These benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognized as an expense as the related service is rendered by employee. | | | | | | | | | | Other long term benefits | | | | The Group's net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and future periods. That benefit is discounted to determine its brsent value. Re-measurements are recognised in consolidated statement of profit or loss in the period in which they arise. | | | | | | | | | | Post-employment benefits | | | | | | | | | Defined contribution plan | | | | A defined contribution plan is a post-employment benefit plan under which an entity pays specified contribution to a separate entity and has no obligation to pay any further amounts. The Company makes specified monthly contribution towards employee provident fund to Government administered provident fund scheme which is a defined contribution plan. The Company's contribution is recognized as an expense in the consolidated statement of profit and loss during the period in which the employee renders the related service. | | | | | | | | | | | Defined benefit plans | | | | The Company's gratuity benefit scheme is a defined benefit plan. The Company's net obligation is respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its brsent value. Any unrecognized past service cost and the fair value of any plan assets are deducted. The calculation of the Company's obligation is performed annually by a qualified actuary using the projected unit credit method. The Company recognizes all actuarial gains and losses arising from defined benefit plans immediately in the consolidated statement of profit and loss. All expenses related to defined benefit plans are recognized in employee benefit expense in the consolidated statement of profit and loss. When the benefits of a plan are improved, the portion of the increased benefit related to past service by employees is recognized in consolidated statement of profit and loss on a straight-line basis over the average period until the benefits become vested. The Company recognizes gains and losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. | | | | | | | | | | | | | | | | Compensated absences | | | | The employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service periods or receive cash compensation on termination of employment. The Group records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. Since the Group does not have rights to defer the leave availment by the employees, the entire obligation has been classified as 'current liabilities' under 'short-term provisions'. | | | | | | | | | | | Termination benefits | | | | Termination benefits are recognised as an expense when, as a result of a past event, the Group has a brsent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. | | | | | | | 2.9 | Foreign exchange transaction/translation and accounting for forward contracts | | | | | | | | Foreign exchange transactions are recorded using the exchange rates brvailing on the dates of the respective transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the consolidated statement of profit and loss for the year. | | | | | | | | | Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date and the resultant exchange differences are recognised in the consolidated statement of profit and loss. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. | | | | | | | | | | The financial statements of the Company's foreign branch, being integral foreign operations in terms of paragraph 21 of AS-11 (Revised 2003), are translated into Indian rupees as follows: | | | | | | | | � | Income and expense items are translated at the exchange rates as on the dates of the transactions; | | � | Fixed assets are translated using the exchange rate as at the date of purchase of the asset; | | � | All monetary assets and liabilities are translated at the closing rate. | | | � | All resulting exchange differences are reflected in the consolidated statement of profit and loss. | | | | | | | Accounting for forward contracts | | | | The Company uses forward exchange contract to hedge its exposure to foreign exchange movements. The brmium or discount arising at the inception of such a forward exchange contract is amortised as expense or income over the life of the contract. Exchange differences on such a contract is recognised in the consolidated statement of profit and loss in the reporting period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognised as income or as expense for the period. | | | | | | | | | | | As per the guidance note, all derivative contracts that is either not designated a hedge, or is so designated but is ineffective is measured at fair value and changes therein (both gains and losses) are recognized in Statement of profit and loss. | | | | | | | | Translation of foreign operations | | | | For translating the financial statements of foreign subsidiaries, these are classified into 'integral' and 'non-integral' foreign operations. | | | | | | | Integral foreign operations are those which carry on their business as if they were an extension of the Company's operations. Other foreign operations are classified as non-integral. The financial statements of an integral foreign operation are translated into Indian rupees as if the transactions of the foreign operation were those of the Company itself. | | | | | | | | | In the case of a non-integral foreign operation, the assets and liabilities, both monetary and non-monetary, are translated at the closing exchange rate and income and expense items are translated at average exchange rates. The resulting exchange differences are accumulated in 'foreign currency translation reserve'. On the disposal of a non-integral foreign operation, the cumulative amount of foreign currency translation reserve which relates to that operation is recognised as income or as expense. | | | | | | | | | 2.10 | Provisions and contingencies | | | | | | | | | A provision is recognised if, as a result of a past event, the Group has a brsent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the expenditure required to settle the brsent obligation at the balance sheet date. The provisions are measured on an undiscounted basis. | | | | | | | | | Onerous Contracts | | | | A contract is considered as onerous when the expected economic benefits to be derived by the Group from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognises any impairment loss on the assets associated with that contract. | | | | | | | | | | Contingencies | | | | Provision in respect of loss contingencies relating to claims, litigation, assessment, fines, penalties, etc. are recognised when it is probable that a liability has been incurred, and the amount can be estimated reliably. | | | | | | | 2.11 | Contingent liabilities and contingent assets | | | | | | | | | A contingent liability exists when there is a possible but not probable obligation, or a brsent obligation that may, but probably will not, require an outflow of resources, or a brsent obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the consolidated financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. | | | | | | | | | | | 2.12 | Taxation | | | | | | | | | The current income tax charge is determined in accordance with the relevant tax regulations applicable to the Group in India and in the foreign jurisdiction it operates in. Deferred tax charge or credit is recognised for the future tax consequences attributable to timing difference that result between the profit offered for income taxes and the profit as per the consolidated financial statements. Deferred tax in respect of timing differences which originate during the tax holiday period but reverse after the tax holiday period is recognised in the year in which the timing difference originates. For this purpose, the timing differences which originate first are considered to reverse first. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, when there is a brought forward loss or unabsorbed debrciation under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realised. | | | | | | | | | | | | | | | | The Group offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis. | | | | | | | | Minimum Alternate Tax (MAT) Credit entitlement | | | | Minimum Alternate Tax (MAT) credit entitlement rebrsents amounts paid in a year under Section 115 JAA of the Income Tax Act 1961 ('IT Act'), in excess of the tax payable, computed on the basis of normal provisions of the IT Act. Such excess amount can be carried forward for set off against future tax payments for ten succeeding years in accordance with the relevant provisions of the IT Act. Since such credit rebrsents a resource controlled by the Company as a result of past events and there is evidence as at the reporting date that the Company will pay normal income tax during the specified period, when such credit would be adjusted, the same has been disclosed as "MAT credit entitlement", under "Long term loan and advances" in balance sheet with a corresponding credit to the consolidated statement of profit and loss, as a separate line item. Such assets are reviewed as at each balance sheet date and written down to reflect the amount that will not be available as a credit to be set off in future, based on the applicable taxation law then in force. | | | | | | | | | | | | | 2.13 | Earnings per share | | | | | | | | | In determining the earning per share, the net profit after tax is divided by the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued on the conversion of all potentially dilutive equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period unless issued at a later date. In computing dilutive earning per share, only potential equity shares that are dilutive i.e. which reduces earnings per share or increases loss per share are included. | | | | | | | | | | | 2.14 | Impairment of assets | | | | | | | | | The Group periodically assesses whether there is any indication that an asset or a group of assets (including goodwill) comprising a cash generating unit may be impaired. If any such indication exists, the Group estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement profit and loss. If at the balance sheet date there is an indication that a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. In respect of goodwill, impairment loss is reversed only when it is caused by specific external events and their effects have been reversed by subsequent external events. | | | | | | | | | | | | 2.15 | Employee stock options | | | | | | | | | As brscribed by the Guidance Note on "Accounting for Employee Share-based Payments" issued by Institute of Chartered Accountants of India and related interbrtations, the Company applies the intrinsic value based method of accounting to account for stock options issued by the Company to its employees. The excess of the market price of shares, at the date of grant of options under the Employee Stock Option Schemes of the Company, over the exercise price is regarded as employee compensation, and recognised on a proportionate basis over the period over which the employees would become unconditionally entitled to apply for the shares. Fair value of stock options have been determined based on Black Scholes Model. | | | | | | | | | | | 2.16 | Cash and cash equivalents | | | | | | | | | Cash and cash equivalents for the purposes of consolidated cash flow statement comprise cash on hand, balances in banks, demand deposits with banks and highly liquid investments with an original maturity of three months or less. | | | | | | | 2.17 | Leases | | | | | | | | | Leases where the lessor effectively retains substantially all the risks and rewards of ownership of the leased asset are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term. Leases under which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired are capitalised at fair value of the asset or brsent value of the minimum lease payments at the inception of the lease, whichever is lower. | | | | | | | | | | 2.18 | Consolidated cash flow Statement | | | | | | | | | Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Group are segregated. | | | | | | | | 2.19 | Investments | | | | | | | | | Long-term investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment. | | | | | | | | Current investment are carried at the lower of cost and fair value. The comparison of cost and fair value is carried out separately in respect of each category of investments. | | | | | | | 2.20 | Segment reporting | | | | | | | | | Segments are identified based on the types of products and the internal organisation and management structure. The Group has identified business segment as its primary reporting segment with secondary information reported geographically. The Group's primary segments consists of Life sciences and healthcare. Segment assets and liabilities include all operating assets and liabilities. Segment results include all related income and expenditure. Unallocable rebrsents assets and liabilities which relate to the company as a whole and are not allocated to segments. | | | | | | | | | | | | | | | | | | | | (This space has been intentionally left blank) |
Disclosure of employee benefits explanatory26 | Employee benefits : | | | | | | The Company has classified various benefits provided to employees as under : | | | | | | | | | | | Defined contribution plans | | | | | | The Group makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards provident fund, employee state insurance and labour welfare fund which is a defined contribution plan. The Group has no obligations other than to make the specified contributions. The contributions are charged to the consolidated statement of profit and loss. The amount recognised as an expense towards contribution to provident fund, employee state insurance and labour welfare fund for the year aggregated to Rs. 75,194,104 (2019: Rs. 61,922,128). | | | | | | | | | | | | | Defined benefit plan | | | | | | Liability towards gratuity has been determined based on the method brscribed in the Accounting Standard (AS 15) on "Employee benefits". Under the Company's gratuity scheme every employee who has completed 5 years or more of service, is eligible for gratuity on separation, worked out at 15 days salary (last drawn salary) for each completed year of service. | | | | | | | | | | | The following table sets forth the status of the gratuity plan as required under revised Accounting Standard 15. | | | | | | | | | | Reconciliation of opening and closing balances of the brsent value of the defined benefit obligation | | | | | | | | | | Particulars | | | As at 31 March 2020 | As at 31 March 2019 | | Opening defined benefit obligation | | | 6,66,37,995 | 5,36,82,009 | | Current service cost | | | 1,82,98,846 | 1,45,28,749 | | Interest cost | | | 51,42,058 | 41,30,579 | | Actuarial losses / (gains) | | | 1,07,15,344 | (2,90,402) | | Benefits paid | | | (46,48,163) | (54,12,940) | | Closing defined benefit obligation | | | 9,61,46,080 | 6,66,37,995 | | | | | | | | | Reconciliation of brsent value of the obligation and the fair value of the plan assets | | | | | | | | | | | Particulars | | | As at 31 March 2020 | As at 31 March 2019 | | Fair value of plan assets at the end of the year | | - | - | | Present value of the defined benefit obligations at the end of the year | | 9,61,46,080 | 6,66,37,995 | | Liability recognized in balance sheet | | | 9,61,46,080 | 6,66,37,995 | | | | | | | | | Current | | | 50,85,427 | 27,96,465 | | Non-current | | | 9,10,60,653 | 6,38,41,530 | | | | | | | | | Expense recognized during the year | | | | | | | | | | | | | Particulars | | | For the year ended 31 March 2020 | For the year ended 31 March 2019 | | Current service cost | | | 1,82,98,846 | 1,45,28,749 | | Interest on defined benefit obligation | | | 51,42,058 | 41,30,579 | | Net actuarial losses / (gains) recognised in the year | | 1,07,15,344 | (2,90,402) | | Total expenses included in employee benefits | | 3,41,56,248 | 1,83,68,926 | | | | | | | | | The principal assumptions used in determining gratuity obligation for the Company's plan are shown below : | | | | | | | | | | Particulars | | | As at 31 March 2020 | As at 31 March 2019 | | Discount rate (p.a) | | | 6.70% | 7.70% | | Salary escalation rate (p.a) | | | 7.00% | 7.00% | | Retirement age (years) | | | 58 | 58 | | Attrition rate | | | Age 21-30:18% | Age 21-30:18% | | | | | | Age 31-40: 8% | Age 31-40: 5% | | | | | | Age 41-50: 3% | Age 41-50: 3% | | | | | | Age 51-57: 2% | Age 51-57: 2% | | | | | | | |
Disclosure of enterprise's reportable segments explanatory22 | Segmental Information : | | | | | | | | | | | | | Primary Segment | | | | | | | | | | | | | The Group's operations brdominantly relate to business of providing analytics, technology and medical solutions to life-sciences and healthcare organizations. The Group in identifying its reportable segments has considered its internal organizational and management structure, internal financial reporting system to its CEO and Board of Directors to arrive at the factors that brdominantly affects its risks and returns. Accordingly the Group has identified its business segment as primary segment and geographical segment as its secondary segment. | | | | | | | | | | | | The accounting policies consistently used in the brparation of the consolidated financial statements are also applied to record revenue and expenditure in individual segments and for segment reporting. | | | | | | | | | | Revenue and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while other costs, wherever allocable, are apportioned to the segments on an appropriate basis. | | | Assets and liabilities in relation to segments are categorized based on items that are individually identifiable to that segment. | | Primary segments of the Group are:- a) Life-sciences b) Healthcare | | | | | | | | | | | For the year ended 31 March 2020 | | | | | | | | | Particulars | Lifesciences | Healthcare | Unallocable** | Total | | Revenue from operations | 6,43,84,07,658 | 6,94,55,312 | - | 6,50,78,62,971 | | Segment result* | 58,44,20,294 | 3,21,22,333 | - | 61,65,42,626 | | Segment assets | 5,44,02,36,672 | 62,27,575 | 16,14,67,380 | 5,60,79,31,627 | | Segment liabilities | 2,70,08,60,378 | 1,10,48,240 | - | 2,71,19,08,618 | | Debrciation, amortisation and impairment | 19,35,92,308 | - | - | 19,35,92,308 | | Purchase of fixed assets | 6,27,42,488 | - | - | 6,27,42,488 | | Employee stock compensation expense | 1,78,62,851 | - | - | 1,78,62,851 | | | | | | | | | For the year ended 31 March 2019 | | | | | | | | | Particulars | Lifesciences | Healthcare | Unallocable** | Total | | Revenue from operations | 5,43,53,59,739 | 9,74,77,757 | - | 5,53,28,37,496 | | Segment result* | 28,64,71,993 | (2,92,92,128) | - | 25,71,79,865 | | Segment assets | 3,04,54,05,112 | 31,92,740 | 24,07,48,746 | 3,28,93,46,599 | | Segment liabilities | 1,58,87,21,072 | 17,77,39,680 | 1,04,768 | 1,76,65,65,520 | | Debrciation, amortisation and impairment | 15,95,85,127 | 64,62,980 | - | 16,60,48,107 | | Purchase of fixed assets | 17,44,46,018 | - | - | 17,44,46,018 | | Employee stock compensation expense | 1,85,53,720 | - | - | 1,85,53,720 | | * includes interest income and interest expenses. | | | | | ** unallocable includes advance tax (net of provision for income tax), MAT credit entitlement and provision for income tax (net of advance tax). | | | | | | | | | Information about secondary geographical segment | | | | | | | | | | | | For the year ended 31 March 2020 | | | | | | | | | | | Particulars | | North America | Others | Total | | Revenue | | 5,03,40,83,178 | 1,47,37,79,793 | 6,50,78,62,971 | | Segment assets | | 4,29,97,75,222 | 1,30,81,56,405 | 5,60,79,31,627 | | Capital expenditure | | 1,04,96,744 | 5,22,45,744 | 6,27,42,488 | | | | | | | | | For the year ended 31 March 2019 | | | | | | | | | | | Particulars | | North America | Others | Total | | Revenue | | 4,24,03,32,903 | 1,29,25,04,593 | 5,53,28,37,496 | | Segment assets | | 3,35,54,50,402 | (6,61,03,803) | 3,28,93,46,599 | | Capital expenditure | | 12,77,89,221 | 4,66,56,797 | 17,44,46,018 | | | | | | | | | | | | | | | | | | | | | |
|
|
|