Ar 13
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18 Annual Report
2012 - 13
G L O B A L
I T
S E R V I C E S
BOARD OF DIRECTORS
N R Panicker
Chairman & Managing Director
A P Parigi
REMUNERATION COMMITTEE
Sam (S) Santhosh
Alok Sharma
Steve Ting Tuan Toon
AUDIT COMMITTEE
R Ramaraj
A P Parigi
Sam (S) Santhosh
Director
Alok Sharma
Director
Director
NOMINATION COMMITTEE
Alok Sharma
Sam (S) Santhosh
A P Parigi
R Ramaraj
Director
CHIEF FINANCE OFFICER
K. R. Chandrasekaran
COMPANY SECRETARY
Sweena Nair
STATUTORY AUDITORS
Grant Thornton
Arihant Nitco Park, 6th floor,
No. 90, Dr.Radhakrishnan Salai,
Mylapore, Chennai - 600 004, India.
SOLICITORS
BANKERS
1
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Contents
Notice of 18th Annual General Meeting
Directors report
15
Consolidated financials
27
Standalone financials
44
2
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
6)
7)
8)
9)
ORDINARY BUSINESS:
1.
2.
3.
4.
NOTES:
1)
2)
3)
4)
5)
3
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
Date of Declaration
of Dividend
2006 2007
2007 2008
2008 2009
2009 2010
2010 2011
2011-2012
Registered Office
75, Nelson Manickam Road
Chennai 600 029
Date: May 29, 2013
S E R V I C E S
4
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Directors Report
To
The Members
The Directors are pleased to present the 18th annual report along with the audited financial statements for the financial year ended March
31, 2013.
INR in lakhs
Financial results
Standalone
Consolidated
2013
2012
2013
2012
32,921.26
42,352.47
40,137.95
48,614.06
3,345.93
3,673.14
3,325.05
3,362.88
Finance costs
1,953.83
1,739.61
1,995.07
1,794.33
968.60
795.08
1,067.77
991.25
143.53
199.84
143.54
199.84
279.97
938.60
118.67
377.46
1,049.18
2,414.74
1,507.02
3,433.72
1,329.15
3,497.44
1,625.69
3,955.28
363.93
363.93
Tax on Dividend
59.04
59.04
100.00
100.00
1,925.29
1,925.29
1,329.15
1,049.18
1,625.59
1,507.03
1,329.15
3,497.44
1,625.69
3,955.28
Durring FY13 the companys liquidity possition remained challenging due to additional investment made in software assets and overseas subsidiaries, to enhance the software business.
Financial year 2012-13 represents the full year operations after the
consolidation of all the IT service business in 2011-12. The company
has successfully integrated these merged business portfolios and
could transform itself to offer more value added services.
On a standalone basis, the revenues from operations and other income stood at INR 32,921.26 lakhs, representing a decline of 22%
over previous year. Earnings before interest, tax, depreciation and
amortization (EBITDA) at INR 3,345.93 lakhs were lower by 9% over
previous year. However the EBITDA margins improved 10.16% in
FY13 compared to 8.67% in FY12.
On a consolidated basis, the revenues from operations and other
income stood at INR 40,137.95 lakhs, representing a decline of 17%
over previous year. Earnings before interest, tax, depreciation and
amortization (EBITDA) at INR 3,325.05 lakhs were lower by 1% over
previous year. However the EBITDA margins improved to 8.28% in
FY13 compared to 6.92% in FY12.
The decline in revenues is attributable to planned reduction in the
IT hardware centric system integration business, which commands
lower margins compared to IT service business. However this reduction in revenues was partly offset by growth in software and
The compnay has initiated various steps to ease the liquidity position and augment long term working capital required for future
growth as planned.
The company employs over 1,722 full time employees with diverse
background. The collective efforts of all these employees have enabled the company to achieve its organizational goals and set the
base right for the next phase of growth.
The company has restructured its work force into various businesses to ensure that every business is operated and supported
equally. The human resource policies have evolved to stay relevant
to the changing economic and business environment and enhance
organizational agility.
Workforce strategy was planned with a focus on sustainable utilization levels. A lot of efforts are being taken to implement these
strategies to maintain costs at optimal levels.
The company has a matured talent management process and environment where performance is rewarded and opportunities are
provided for career growth and development. Focused initiatives
towards work life balance and safety of employees have helped the
company in gaining confidence level of the employees and bring
down the attrition levels.
5
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Quality standards
The Chairman and Managing director and the Chief Finance Officer
have submitted a certificate to the Board regarding the financial
statements and other matters as required under Clause 49 (V) of
the Listing Agreement. This is provided as Annexure VI to this report
An employee portal exists for knowledge management and sharing useful information within the Company. Regular knowledge
and skill up gradation training programs are conducted by internal
as well as external knowledge management experts.
These quality driven processes help in supporting the companys
global delivery model
In order to achieve highest levels of quality and robust information
security practices, the company has planned to achieve enterprisewide CMMI Level 5 (for Development) during the next financial
year.
Finance, Accounts and Internal control systems
The company has adequate internal control procedures commensurate with the size and nature of its operations. The internal control systems were further strengthened by internal audit carried by
an independent firm of Chartered Accountants and a periodical
review by the management. The Audit Committee of the board addresses issues raised by internal auditors and the, statutory auditors.
The financial objective of the company is to bring in efficiencies
of operations at all levels so as to maximize return on capital employed and to generate sufficient cash profits to fund on-going expansions and to meet the growth objectives.
The audit committee and the Board periodically review performance parameters related to financial performance of the company to ensure smooth implementation of the internal control
systems and efficient management of the various resources. The
audit committee conducts periodic reviews with the management,
internal auditor and the external auditor. There is an on-going cost
monitoring program to control various expenses and the Board reviews the variance analysis.
Report of Corporate Governance and Auditors Certificate on
Corporate Governance
A report on Corporate Governance together with auditors certificate on compliance with the conditions of Corporate Governance
as stipulated under Clause 49 of the Listing Agreement is provided
as annexure III to this report.
Financial Statements of Subsidiary companies:The Company had 8 subsidiaries as on March 31, 2013, up from 7
as on March 31, 2012. Accel Technologies Limited, UK was incorporated during financial year 2012-13 as a strategy to penetrate this
market for its Product engineering and Automotive embedded
solutions.
There has been no material change in the nature of the business of
the subsidiaries.
As required under the Listing Agreement entered into with the
Stock Exchanges, a consolidated financial statement of the Company and all its subsidiaries is attached. The consolidated financial
statement has been prepared in accordance with the relevant accounting standards as prescribed Under Section 211 (3C) of the
Act. The consolidated financial statement discloses the assets, liabilities, income, expenses and other details of the Company and
its subsidiaries.
Pursuant to the provisions of Section 212(8)of the Act, the Ministry of Corporate Affairs vide its circular dated February 8, 2011
has granted general exemption from attaching the Balance Sheet,
Statement of Profit & Loss and other documents of the subsidiary
companies with the Balance Sheet of the Company. A statement
containing brief financial details of the Companys subsidiaries for
the financial year ended March 31, 2013 is included as an annexure
VIII to this report. The annual accounts of these subsidiaries and the
related information will be made available to any member of the
company/its subsidiaries seeking such information and are available for inspection by any member of the company/subsidiaries at
the Registered Office of the Company. The annual accounts of the
said subsidiaries will also be available for inspection, at the Head
Offices / Registered Offices of the respective subsidiary companies.
Dividend
The Directors have not recommended dividend for the period
ended March 31, 2013 considering the lower profits achieved during the financial year 2012-13. Further, given that we are in a high
leverage point, the available resources have to be conserved and
effectively deployed for ramping up the operations in high growth
and high margin services business.
Directors
Mr.A.P.Parigi and Mr. Alok Sharma retire by rotation and are eligible
for re-appointment.
Auditors
K S Aiyar & Co., Chartered Accountants, who are the statutory auditors of the Company, retire at the ensuing Annual General Meeting
and being eligible, offer themselves for reappointment. The com-
6
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
N.R. Panicker
Chairman & Managing Director
2.
Business overview
The company is in high technology business and is constantly upgrading and adapting latest technologies to meet the technology
challenges.
7
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
8
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
2012-13
203.34
Other products
148.55
Total
351.89
fice space across various locations in India. All the major offices and
software development centres are well equipped with all necessary infrastructure facilities
The company is in the process of consolidating its infrastructure
facilities to optimize costs, at the same time without impacting
quality of delivery. This consolidation is expected to bring in cost
efficiencies in the system next year.
Human Resource management key to our success
As on 31st March 2013, the company had 1,722 multicultural work
force drawn from different disciplines and domain backgrounds.
The workforce is spread across 6 countries including India. The human resources strategy enabled the Company to attract, integrate,
develop and retain the best talent required for driving business
growth. The sustained strategic focus to enhance employee capability, improve efficiency and groom future leaders
We have an established employee recruitment and retention policy, which involves identifying right talents and providing them
with appropriate training. The strategy is to fulfill business requirements, maintain high utilization and keep the costs at optimum
levels. In the course of achieving these, management is coming up
with various policy level initiatives to run the business efficiently
at optimum utilization levels, which is expected to yield favorable
results in the next financial year.
The Company has created a performance driven environment
where performance is recognized and employees are motivated
to realize their potential. Management connects with employees
on a regular basis and being transparent with the employees has
immensely helped in motivating the employees and to realize their
full potential.
The company has its own learning and development programmes
to enhance the skills and competencies of the employees. These include leadership development programs to develop business and
people competencies. These employees are nurtured to build the
leadership capability. The trainings include internal and external
trainings
Risk Management
Some of the key business risks faced by the company and plans to mitigate the same is given below:
Key Risk
Business model
Increased trends in customers Planned investment in emerging enterprise solutions, mobility and
moving towards total IT out- could services.
sourcing deals as a single window solution which includes Updating existing products and developing new solutions
tech refresh and adaptation of
new age technologies. Large
solution providers are better
positioned to take advantage
of this phenomenon
Global
down
economic
slow
Mitigation plan
Economic slowdown in key Despite slowdown, there is good opportunity in these markets for high
markets like US and Europe value add services like embedded solutions, outsourced product develhas lead to uncertainties in off- opment, etc., which will yield cost optimization for the customers
shoring opportunities
Focusing on other emerging markets, which are growing at a faster pace
9
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Dependence on domestic As the company is downsizing The company plans to stabilize the IT system integration business at an
system integration and the hardware related IT system optimum level in order to retain the service market share. The focus will
services business
integration business, there is be to manage costs and improve margins
a risk of losing some of the IT
services opportunities in the
domestic market
Cost pressure
The operations have been decentralized with every service units being
run as a separate business to have greater control on costs and profitability.
Core focus to improve utilization and productivity of employees
Increase in non-linear business which will not have a direct impact on
costs
Mature HR processes, providing a competitive environment and opportunities for growth will result in high employee satisfaction and talent
retention
Learning and development by way of trainings will be key to keep the
employees up to date on emerging technologies and meet the changing
market and customer demands
Improving brand image will be critical in this competitive market
Forex exposure
The company is susceptible to Larger part of costs are incurred in local currency resulting in a natural
volatility in currencies result- hedge
ing in transaction exposures
Currency hedging policies are in place, which are reviewed on a regular
basis
High leverage
The company has a high debt With a clear plan in place to invest in high profitable business, control
equity ratio with high financ- costs and improve collection, the debt pressure is expected to ease out
ing costs. This could impact
further borrowing and also impact the operations
FY12
%
In INR lakhs
Growth in %
39786.11
100%
48,405.83
100%
(17.81)
16552.24
41.60%
25,188.34
52.04%
(34.29)
8632.19
21.70%
7,611.87
15.73%
13.40
Other costs
11628.48
29.23%
12,471.45
25.76%
(6.76)
Total costs
36812.90
92.53%
45,271.66
93.53%
(18.68)
3325.05
8.36%
3,342.41
6.90%
(0.52)
Costs
Raw material costs
Employee costs
351.83
0.88%
208.24
0.43%
68.95
Finance costs
1995.07
5.01%
1,773.86
3.66%
12.47
1067.77
2.68%
991.25
2.05%
7.72
262.21
0.66%
577.30
1.19%
(54.58)
143.54
0.36%
199.84
0.41%
(28.17)
118.67
0.30%
377.46
0.78%
(68.56)
10
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
4. The company is considered to be a pioneer in the Warranty Management Services space. Its service portfolio broadly includes warranty fulfillment, test and repair services and technical help desk
and has a PAN India presence. The company has its own, time
tested, web based, CRM and logistics management framework
which helps in managing the operations in an efficient manner and
thereby resulting in low costs to its customers. While WMS grew between FY10 to FY12 only at a CAGR of approximately 7%, the business declined by about 20% in FY13 due to ramp down of unprofitable businesses in mobile phone warranty fulfillment services.
11
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
The India market is expected to grow in absolute terms with expected growth in Infrastructure management and warranty management business. However the strategy is to grow its overseas
market with focus on IT software and security business. Management has a firm investment plan to support this growth. The Middle
East market is also expected to grow with new orders firm orders
new orders being executed and health pipeline in place
Customer concentration
During the financial year 2012-13, our Top 10 customers contributed 36% of the revenue (30% for 2011-12) and Top 20 customers
contributed 49% of the revenue (41% for 2011-12).
EBITDA margins
While EBITDA declined from INR 3342 lakhs in FY12 to INR 3325
lakhs in FY13 in absolute terms, the EBITDA margin improved from
6.9% in FY12 to 8.4% in FY13. This was driven by change in business mix, with increase in service revenues and decline in hardware
revenues (IIS)
The company has implemented / is in the process of implementing a number of initiatives, which are expected to improve margins. These include focus on high margin business, rationalization
of FTEs to pipeline, improving productivity of employees, consolidation of infrastructure facilities, etc. These initiatives include are
expected to improve margins
Depreciation and Amortization
The company has been following straight-line basis of depreciation
and has depreciated assets based on the rates mentioned in the
Companies Act. In respect of application software, estimated useful
life of the assets is taken as 7 years and has accordingly amortized
the value of the software assets capitalized. Intangible asset in the
form of goodwill is being amortized over a period of ten years.
The higher depreciation and amortization charge is due to increase
in fixed assets base during the current year
Financing costs
The financing costs increase in FY13 driven by impact of (a) fresh
term loans taken during the year and (b) full year impact of loans
taken during previous financial year 2011-12. With an aggressive
plan to bring in cost efficiencies and invest in high margin services,
the debt and interest pressure is expected to ease out
Taxation
We have provided for the tax liability under normal tax rates prescribed under the Income Tax Act, 1961. The income tax charge
during FY13 is lower as compared to FY12 owing to lower profits.
There is no tax liability for the Dubai subsidiary and we have unabsorbed losses in Singapore, Japan and USA subsidiaries.
The consolidated balance sheet of the company is given below:
31 March
2013
31 March
2012
Shareholders funds
Share capital
Minority interest
Reserves and surplus
2426.19
2426.19
398.9
7458.74
7325.43
10,283.83
9,751.62
12
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
1,045.94
965.05
325.81
327.72
Long-term provisions
486.43
323.09
1,858.18
1,615.86
Current liabilities
Short-term borrowings
9,328.85
8,734.26
10,554.50
10,882.92
3,650.44
2,943.13
121.39
511.38
23,655.18
23,071.69
35,797.19
34,439.17
4,704.12
4,818.17
1,308.27
1,118.65
30
30
Trade payables
Other current liabilities
Short-term provisions
Total liabilities
Non-current investments
Long-term loans and advances
421.29
431.13
803.76
1,626.21
7,267.44
8,024.26
4,386.09
3,975.12
14,907.23
16,150.46
Current assets
Inventories
Trade receivables
Cash and bank balances
2,681.18
1,171.35
2,689.76
1,678.35
3,865.49
3,439.93
28,529.75
26,415.01
35,797.19
34,439.17
Total assets
Key highlights:
Equity and reserves
Accel Limited and its Associates, being the promoters, own about
67% of the equity in Accel Frontline Limited (the company) with
balance held by public and financial institutions.
The additions were to replace old assets as per company policy and
also meet the increased asset requirements in service business to
achieve the growth. The additions were primarily in India with marginal additions in Singapore
Cash and bank
The cash and bank balances include INR 724 lakhs of margin money placed to avail non-fund based facilities from the banks. The
increase in cash and bank balances were primarily driven by cash
reserves at Singapore branch
Borrowings
Long term loans and advances as at 31 March 2013 include security deposits and deposits with statutory/government authorities.
Short term loans and advances as at 31 March 2013 include rent
and other deposits, advance to associate companies and other
loans and advances. The increase in short term loans and advances
can be attributed to increased investments in associate companies
and increase in supplier and trade advance for orders to be executed in financial year 2013-14
Receivables management
The company continues to have challenges with receivable management, due to its exposure to public sector and Government
clientele in India.
A large portion of these receivables are from turnkey projects,
which have a longer gestation to implement and the payment
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
13
G L O B A L
I T
S E R V I C E S
Action plan
The company will continue to invest in high margin service business. We expect to
strengthen our overseas presence in new product development space and ramp up offshore delivery centre to cater to this market
Leverage on its strong PAN India presence and focus on domestic IT services market, which
is gaining increased traction, to achieve its growth
The company has tied up with funded product development companies, engaged in the
field of niche product development in embedded solutions space. We believe that these
companies have a promising outlook given the technologies they are working on. Accel
is working with these companies in jointly developing the products and expects these accounts to grow big in the near future. We have planned similar tie ups in the next financial
year as a part of strategic investment
Costs rationalization
Employee costs
Employee costs to be rationalized to the current business and pipeline.
Utilization policy and guidelines to be strictly adhered to
Productivity of employees to be critically monitored and improvement measures to be
taken on a real time basis
A number of policy level initiatives relating to human resource have been worked out.
Which are expected to bring in cost efficiencies in the current year
Companys R&D initiatives will continue in the next financial year. These R&D initiatives will
be in the area of banking, automotive and new age technologies, which are expected to be
the key growth drivers during the next financial year
Investing in high margin business supported by control on costs and other business initiatives discussed above is expected to ease debt pressure and related costs
A firm plan has been put in place to improve the collection cycle including:
Strengthen the process of analyzing the credit worthiness of the customer prior to
acceptance
Aggressive collection follow up with the involvement of finance team
Having a fixed percentage of total contract value as advance
Service discontinuation for customers with severe payment issues
Cautionary Statement
Statements in the Management Discussion and Analysis describing the companys objective, Projections estimates, expectations, may be
forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from
those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas market in which the company operates, change in Government
regulations, tax laws, interest costs, other statutes and other incidental factors.
Thus the company should and need not be held responsible, if which in not unlikely, the future turns out to be something quite different.
Subject to this management disclaimer, this discussion and analysis should be perused.
14
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
chairman and five non-executive Directors. Of the nonexecutive directors, three are independent which is equal to
50% of the size of the Board. The objective judgment of the
independent and non-executive directors on corporate affairs
and their collective experience and contributions are valuable
to the company.
i)
Executive Directors
Managing Director
ii)
Non-Executive Directors
2) Board of Directors
N.R.Panicker
Independent
Alok Sharma
Sam (S) Santhosh
R. Ramaraj
Non Independent
Amba Preetham Parigi
Steve Ting Tuan Toon
b)
No of shares
a)
10,72,500
c) Details in regard to attendance of Directors at Board Meetings/Shareholders Meetings, the Number of Directorship/(s) held
in Indian Pubic Limited Companies and the position of Membership/Chairmanship of Audit Committee / Remuneration
Committee / Shareholders and Investor Grievance Committee.
Category as at
29.05.2013
No. of
Board
meetings
Attended
Out of 05
Meetings
Held as on
29.05.2013
Attendance
At the last
AGM held
On 19.12.2012
No. of Director
Ship held in
Indian
Public Limited
Companies
(excluding
Accel Frontline
Limited)
Member
Chairman
N.R. Panicker
05
Yes
05
01
01
05
No
Nil
Nil
Nil
Amba Preetham
Parigi
Non-executive Non
Independent Director
05
Yes
08
07
00
Alok Sharma
Non-executive
Independent Director
04
No
00
00
00
Sam (S)
Santhosh
Non-executive
Independent Director
04
Yes
Nil
Nil
Nil
Mr.R.Ramaraj
Non-executive
Independent Director
02
Yes
06
03
01
Name of the
Director
Committee/s position as
on 29.05.2013
(All companies excluding
Accel Frontline Limited)
15
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Dates on which
the Board
Meetings were
held
Total
strength of
the Board
No. of Directors
Present
1.
06.02.2013
06
05
2.
29.05.2013
06
05
a)
Audit Committee
Category
Capacity
Mr.R. Ramaraj
Non Executive
Independent
Chairman
Mr. Amba
Preetham Parigi
Member
Non Executive
Independent
Member
16
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Sr.
No
Date of
Meeting
R.Ramaraj
(Appointed
as Chairman
with effect
from
31.10.2012
Amba
Preetham
Parigi
(appointed
as Member
with effect
from
31.10.2012
Sam (S)
Santhosh
(appointed
as Member
with effect
from
31.10.2012
01
06.02.2013
Yes
Yes
Yes
(Via Concall)
02
29.05.2013
Yes
Yes
Yes
Upto 28.05.2013
Attendance record of the Members
Sr.
No
Dates of
Meeting
01
06.02.2013
Alok Sharma
(appointed
as Member
with effect
from
31.03.2012
Yes
Yes
Yes
Sr.
No
Dates of
Meeting
02
29.05.2013
Category
Capacity
Mr.R. Ramaraj
Non Executive
Independent
Chairman
Member
Non Executive
Independent
Member
Category
Capacity
Chairman
Mr.R. Ramaraj
Non Executive
Independent
Member
Non Executive
Independent
Member
Amba
Preeetham
Parigi
(appointed
as Member
with effect
from
31.10.2012
From 29.05.2013
Internal Auditors
R. Ramaraj
(appointed
as Chairman
with effect
from
31.10.2012
Amba
Preetham
Parigi
(Appointed
as Chairman
with effect
from
29.05.2013
R.Ramaraj
(appointed
as Member
with effect
from
29.05.2013
Alok Sharma
(appointed
as Member
with effect
from
29.05.2013
Yes
Yes
No
Category
Capacity
Non Executive
Independent
Chairman
Non Executive
Non Independent
Member
Non Executive
Independent
Member
Steve Ting
Tuan Toon
(appointed
as Member
with effect
from
31.10.2012
Alok Sharma
(appointed
as Member
with effect
from
31.10.2012
Sr.
No
Dates of
Meeting
01
06.02.2013
No
Yes
Yes
02
29.05.2013
Yes
Yes
No
17
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
Name
Remuneration Policy:
N.R. Panicker,
K.R. Chandrasekaran,
Name
Managing
Director
Wholetime Director
(upto 19.12.2012)
Salary
Rs.4,019,174/-
Rs.1,470,000/-
Perquisites
Rs.1,722,500/-
Rs.630,000/-
Nil
Nil
Rs.600,900/-
Rs.211,777/-
Rs.6,342,574/-
Rs.2,311,777/-
Total
140,000
150,000
200,000
Mr .Alok Sharma
140,000
100,000
Mr.R. Ramaraj
40,000
Total
770,000
Contribution to
Provident Fund /
Superannuation
Fund
S E R V I C E S
Nomination Committee:
Commission
I T
Category
Capacity
Non Executive
Independent
Chairman
Member
Non Executive
Independent
Member
Dates of
Meeting
01
06.02.2013
Alok Sharma
(appointed
as Chairman
with effect
from
31.10.2012
A P Parigi
(appointed
as Member
with effect
from
31.10.2012
Sam (S)
Santhosh
(appointed as
Member with
effect from
31.10.2012
Yes
Yes
Yes
The Non executive Directors are being paid sitting fees @ Rs.20,000/for each Board Meeting and @ Rs.10,000/- for each Committee
Meeting attended by them. The Non-Executive Directors are also
entitled for a commission calculated at the rate of 1% of the net
profits, to be divided amongst them in such manner as the Board
may from time to time determine. The details of sitting fees paid
during the financial year ended 31st March 2013 is as follows:-
18
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Location
b)
c)
19
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
20
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Nature of queries
Received
Redressed
Pending
02
02
Issue of Duplicate
Dividend Warrants
07
07
01
01
02
02
06
06
01
01
Total
19
19
No. of Shares
% to total paid up
capital
Promoters
16105751
66.38
Non-Promoters
8156122
33.62
Total
24261873
100.00
Date
Time
Venue
b) Financial Year
April to March
Mid November
2013
September 2014
c)
21
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
d)
The Company has also paid the annual custody fee for the year
2013-2014 to both the Depositories namely National Securities
Depository Limited (NSDL) and Central Depository Limited (CDSL).
532774
No. of shareholders
who approached issuer
for transfer of shares
from suspense account
during the year
No. of Shareholders
to whom shares were
transferred from
suspense account
during the year
Aggregate No. of
shareholders and the
outstanding shares in
the suspense account
during the year
(i)
(II)
(III)
(IV)
(V)
6 shareholders holding
in aggregate 894 shares
6 shareholders holding
894 shares
S E R V I C E S
The Annual Listing fees for the year 2013-2014 have been paid to
the concerned stock exchanges.
I T
e)
nil
nil
Market Price
BSE
Month
f)
Distribution of Shareholding
NSE
High
Low
High
Low
April 2012
37.85
32.65
37.50
33.50
May 2012
38.00
32.20
37.95
33.25
June 2012
35.95
25.10
35.50
24.90
July 2012
38.45
28.00
36.15
28.00
August 2012
36.35
29.65
36.10
29.35
September 2012
33.70
30.75
33.50
30.70
October 2012
36.45
30.50
38.00
30.35
November 2012
36.65
31.15
35.50
31.05
December 2012
36.00
28.00
38.00
30.50
January 2013
34.70
29.00
34.00
29.00
February 2013
31.15
27.50
34.75
27.10
March 2013
34.00
23.05
32.75
23.35
Share or
Debenture
holding of
nominal
value
Rs.
(1)
Upto 5000
Share/ Debenture
Holders
Number
% to total
Share/ Debenture
Amount
Rs.
% to
total
(2)
(3)
(4)
(5)
5519
89.24
7172710
2.96
5001-10000
313
5.06
2621840
1.08
10001-20000
145
2.34
2256730
0.93
20001-30000
72
1.16
1875860
0.77
30001-40000
26
0.42
928170
0.38
40001-50000
26
0.42
1223560
0.50
50001100000
33
0.53
2323480
0.96
100001 and
above
50
0.83
224216380
92.42
6184
100.00
242618730
100.00
Total
22
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
BSE- 532774
, NSE-
AFL
; Equity
Category
Code
Category of shareholder
(I)
(A)
(II)
Number
of shareholders
Total
number of
shares
(III)
(IV)
Total shareholding as a
percentage of total number
Number of
of shares
shares held
in demateriaAs a
As a percenlised form
percentage of
tage of
(A+B)
(A+B+C)
(V)
(VI)
(VII)
As a
percentage
(IX) =
(VIII)
(VIII)/(IV)*100
Indian
(a)
Individuals/Hindu
Undivided Family
1072500
1072500
4.42
4.42
0.00
(b)
Central Government/State
Government(s)
0.00
0.00
0.00
(c)
Bodies Corporate
14550166
14550166
59.97
59.97
3734700
25.67
(d)
0.00
0.00
0.00
(e)
0.00
0.00
0.00
15622666
15622666
64.39
64.39
3734700
23.91
Foreign
(a)
Individuals (Non-Resident
Individuals/Foreign
Individuals)
0.00
0.00
0.00
(b)
Bodies Corporate
483085
483085
1.99
1.99
0.00
(c)
Institutions
0.00
0.00
0.00
(d)
0.00
0.00
0.00
(e)
0.00
0.00
0.00
483085
483085
1.99
1.99
0.00
Total Shareholding of
Promoter and Promoter
Group (A)=(A)(1)+(A)(2)
16105751
16105751
66.38
66.38
3734700
23.19
(B)
Public shareholding
Institutions
(a)
Mutual Funds/UTI
0.00
0.00
(b)
229971
229971
0.95
0.95
(c)
Central Government/State
Government(s)
0.00
0.00
(d)
0.00
0.00
(e)
Insurance Companies
0.00
0.00
(f )
Foreign Institutional
Investors
0.00
0.00
(g)
0.00
0.00
(h)
0.00
0.00
(I)
0.00
0.00
229971
229971
0.95
0.95
Non-institutions
(a)
Bodies Corporate
(b) (i)
(ii)
Individuals - shareholders
holding nominal share
capital up to Rs 1 Lakh
Individual shareholders
holding nominal share
capital in excess of Rs. 1
Lakh
(c)
(d)
Any Other
139
2866166
2866166
11.81
11.81
5927
1639820
1558769
6.76
6.76
33
1166829
1132829
4.81
4.81
0.00
0.00
36
1725151
1714451
7.11
7.11
23
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
ii
iii
Clearing Member
Trusts
(C)
S E R V I C E S
16302
16302
0.07
0.07
40
511783
511783
2.11
2.11
100
100
0.00
0.00
6180
7926151
7800400
32.67
32.67
6181
8156122
8030371
33.62
33.62
NA
NA
Total (A)+(B)
6184
24261873
24136122
100.00
100.00
3734700
15.39
0.00
0.00
0.00
ii
Public
0.00
0.00
0.00
Sub Total ( C )
0.00
0.00
0.00
6184
24261873
24136122
100.00
100.00
3734700
15.39
h)
I T
i)
Company
The Company Secretary
Accel Frontline Limited
75, Nelson Manickam Road
Aminjikarai, Chennai 600029
Telephone: 044-42252000
Email : sweena.nair@
accelfrontline.in
j)
i)
Share Transfer
N.R.Panicker
Chairman & Managing Director
24
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
a)
b)
2.
3.
4.
a)
b)
c)
S.Kalyanaraman
Partner (M. No. 200565)
N.R. Panicker
Chairman & Managing Director
K.R. Chandrasekaran
Chief Finance Officer
Place : Chennai
Date : May 29, 2013
25
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
31.03.2013
Network
Programs
(Japan)
Inc. USA
Network
Accel North
Accel
Programs Accel Japan
America, Technologies
(USA) Inc. KK, Japan
Inc
Ltd. UK
USA
Accel IT
Resources
Limited,
India
31.03.2013
31.03.2013
31.03.2013
31.03.2013
13,200,000
shares of SGD
.10 per share.
1 share of
1 million
AED
1,000
equity
shares
of USD 1
each .
1,500
equity
shares
without
par value
212 shares
of 50,000
JPY each.
155,000
shares of
USD 1 each.
10,000 shares
of GBP.1 each
30,000,000
shares of
Rs.10 each
57%
100%
100%
100%
100%
100%
100%
100%
SGD
114,439
AED
482,515
USD
NIL
USD
19,419
JPY
(6,356,882)
USD
(216,336)
GBP.
(52,374)
INR
(8,894,069)
INR
5,000,790
INR
7,133,413
INR
NIL
INR
1,054,740
INR
(4,178,379)
INR
(11,750,090)
INR
(4,495,949)
INR
(8,894,069)
SGD
28,702
AED
1,474,537
USD
NIL
USD
21,192
JPY
(14,760,029)
USD
136,637
INR
(25,137,395)
INR
1,100,674
INR
19,320,113
INR
NIL
INR
1,020,072
INR
(8,993,872)
INR
6,576,840
INR
(25,137,395)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Pursuant to the general exemptions granted by the Ministry of Corporate Affairs, Government of India, the parent company is publishing the consolidated
and standalone financial statements of Accel Frontline Limited and its subsidiaries. The financial statements and Auditors Report of the Individual subsidiaries
are available for inspection by the shareholders at the registered office and that of the subsidiary companies concerned. The details of the accounts of the
individual subsidiaries is also available on the companys website. The information in aggregate on capital, reserves, total assets, total liabilities, details of
investment, turnover, Profit Before Taxation, Profit After Taxation and proposed dividend for each subsidiary are as follows.
Accel
Systems &
Technologies
Pte Ltd.,
Singapore
Accel
Frontline JLT,
Dubai
Network
Programs
(Japan) Inc.
USA
100,768,520
14,794,500
8,153,250
(7,151,367)
61,891,859
174,603,104
80,985,951
Particulars
Investment
Accel North
America, Inc,
USA
Accel
Technologies
Ltd, UK
2,717,750
16,650,690
8,425,025
825,614
30,000,000
(1,405,740)
(13,806,569)
(19,640,362)
(13,198,910)
(4,324,043)
(26,448,601)
209,205,256
7,571,854
29,293,058
24,898,370
71,259,572
3,252,666
58,733,326
132,518,897
824,344
40,381,877
27,888,042
76,033,457
6,751,095
55,181,925
317,429,467
5,000,790
7,133,413
5,000,790
7,133,413
43.70
43.81
Accel IT
Resources
Limited,
India
Accel Japan
KK. Japan
194,117,069
Turnover
Network
Programs
(USA) Inc.
USA
32,236,611
56,897,631
261,509,791
3,621,402
49,107,667
1,054,740
(4,178,379)
(11,750,090)
(4,495,949)
(8,894,069)
1,054,740
(4,178,379)
(11,750,090)
(4,495,949)
(8,894,069)
14.78
54.31
54.31
0.66
54.31
85.83
1.00
14.79
54.36
54.36
0.58
54.36
82.56
1.00
Exchange rate
26
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Opinion
Place : Chennai - 16
Date : May 29, 2013
27
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Notes
2.1
2,426.19
2,426.19
398.90
2.2
7,458.74
7,325.43
10,283.83
9,751.62
2.3
1,045.94
965.05
2.4
325.81
327.72
Long-term provisions
2.5
486.43
323.09
1,858.18
1,615.86
Current liabilities
Short-term borrowings
2.6
9,328.85
8,734.26
Trade payables
2.7
10,554.50
10,882.92
2.8
3,650.44
2,943.13
Short-term provisions
2.9
121.39
511.38
23,655.18
23,071.69
35,797.19
34,439.17
2,425.37
2,240.49
2,219.35
2,343.92
4,644.72
4,583.41
59.40
234.76
1,308.27
1,118.65
TOTAL
Assets
Non-current assets
Fixed assets
2.10
Capital work-in-progress
Intangible assets on consolidation
Non-current investments
2.11
30.00
30.00
2.12
421.29
431.13
2.13
803.76
1626.21
7,267.44
8,024.16
Current assets
Inventories
2.14
4,386.09
3,975.12
Trade receivables
2.15
14,907.23
16,150.46
2.16
2,681.18
1,171.15
2.17
2,689.76
1,678.35
2.18
3,865.49
3,439.93
28,529.75
26,415.01
35,797.19
34,439.17
28
Other Notes
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Statement of consolidated profit and loss account for the year ended
(All amounts in Indian rupees lakhs, unless otherwise stated)
Notes
March 31,2013
March 31,2012
48,405.83
Continuing operations
Income
Revenue from operations
3.1
39,786.12
Other income
3.2
351.83
208.24
40,137.95
48,614.07
3.3
167.49
569.80
3.4
16,794.96
24,874.17
3.5
(410.22)
(255.63)
3.6
8,632.19
7,611.87
Other expenses
3.7
11,628.48
12,471.45
36,812.90
45,271.66
3,325.05
3,342.41
Total (II)
Earnings before interest, tax, depreciation and
amortization (EBITDA) (I) (II)
Depreciation and amortization expense
3.8
1,067.77
991.25
Finance costs
3.9
1,995.07
1,773.86
262.21
577.30
114.83
246.37
(40.95)
40.95
(10.32)
(1.91)
(5.58)
143.54
199.84
118.67
377.46
(1) Basic
0.49
1.56
(2) Diluted
0.49
1.56
Deferred tax
Other Notes
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
29
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
262.21
577.30
1,067.77
991.25
1.09
4.96
1,637.21
1,487.11
(311.68)
(47.77)
2,656.60
3,012.85
(863.04)
163.34
180.04
(389.99)
707.30
1,315.60
2,065.68
(981.81)
(410.97)
(1,278.24)
9.84
(264.84)
(1,011.41)
60.58
(425.56)
(1,470.66)
379.81
(3,302.37)
3,036.41
(289.52)
(1,202.80)
(3,303.25)
(519.15)
7.23
(469.41)
237.22
47.77
(1,678.91)
(960.84)
(5,915.72)
4.74
80.89
951.27
594.59
5,525.12
(1,637.21)
(1,487.11)
363.92
(450.18)
(597.81)
4,464.33
1,477.76
(1,740.91)
32.26
18.71
Interest paid
Dividend paid on equity shares
Tax on equity dividend paid
(74.77)
1,171.15
2,893.35
2,681.17
1,171.15
28.60
33.54
1,920.46
591.96
724.40
517.79
7.71
6.07
21.79
2,681.17
1,171.15
30
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
57%
100%
Network Programs
(USA), Inc.
100%
Network Programs
(Japan), Inc.
100%
Accel Japan, KK
100%
Accel North
America, Inc.
100%
Accel IT Resources
Limited
100%
Accel Technologies
Limited
100%
Asset
4.75
Office equipment
4.75
6.33
16.21
Vehicles
Lease hold improvements
9.5
Over the lower of estimated
useful lives of the assets or the
primary period of the lease.
31
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
S E R V I C E S
32
I T
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
(i)
Software Services
Software services are either provided on a time & material
basis or on a fixed price basis. IT Services provided on a time &
material basis are recognized in the period in which the services
are performed. IT Services provided on a fixed price basis are
recognized based on the milestones as specified in the contracts.
Unbilled revenue included under Other Current Assets represents
amount recognized based on services performed in advance of
billing in accordance with contractual terms.
Interest
Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the applicable interest
rate. Interest income is included under the head Other income in
the statement of profit and loss.
Dividends
The company recognizes dividend as income only when the right
to receive the same is established by the reporting date.
(h) Foreign currency transactions
A foreign currency transaction recorded, on initial recognition in
the reporting currency, by applying to the foreign currency amount
the exchange rate between the reporting currency and the foreign
currency at the date of the transaction.
For practical reasons, a rate that approximates the actual rate at the
date of the transaction is often used, for example, an average rate
for a week or a month might be used for all transactions in each
foreign currency occurring during that period.
33
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
Impairment
i.
ii.
(m) Provisions
A provision is recognized when an enterprise has a present
obligation as a result of past event and it is probable that an
I T
S E R V I C E S
Contingent liabilities
3,300.00
3,300.00
Authorised Capital
33,000,000 (March 31, 2012: 33,000,000) equity shares of Rs. 10/- each
Issued, Subscribed & Paid up
24,261,873 (March 31, 2012: 24,261,873) equity shares of Rs. 10/- each
Total
2,426.19
2,426.19
2,426.19
2,426.19
34
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Amount
Number
Amount
24,261,873
2,426.19
22,509,000
2,250.90
7,500,000
750.00
5,747,127
574.71
14,550,166
15,175,166
Name of Shareholder
Accel Limited
3
Mega Resources Limited
2.2. Reserves & Surplus
A. Currency transalation Reserve
Balance as at the beginning of the year
Add : Reserve Credited during the year
Balance as at the end of the year
% of
Holding
% of Holding
14,550,166
59.97%
15,175,166
62.55%
483,085
1.99%
1,283,085
5.29%
1,377,178
5.68%
3,063,642
12.63%
27.36
14.64
42.00
8.65
18.71
27.36
4,932.34
4,932.34
4,932.34
4,932.34
C. General Reserve
Balance as at the beginning of the year
Add : Reserve Credited During the year
Less : Reserve Utilised During the year
Balance as at the end of the year
858.71
858.71
878.08
100.00
(119.37)
858.71
35
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
1,507.02
118.67
3,433.72
144.10
377.46
(363.93)
(59.04)
(1,925.29)
1,625.69
(100.00)
(2,448.26)
1,507.02
Total
7,458.74
7,325.43
2.2.C.1 Dividend added back to reserves in the previous year include Rs.114.94 lakhs representing dividend received by Accel Frontline
Services Limited from the company which got cancelled as per the merger scheme and Rs.29.16 lakhs representing write back of dividend
proposed in Accel Frontline Services Limited for the year 2010-11, but, not approved later in the AGM.
2.2.C.2 To give effect to the merger scheme in the previous year, 5,747,127 shares of the company held by Accel Frontline Services Limited
was cancelled. The value of these shares was Rs.2,500 lakhs, out of this, Rs.574.71 lakhs was deducted from the Issued, Subscribed & Paid
up capital and the balance of Rs.1,925.29 lakhs was deducted from Profit and Loss account
2.3. Long term borrowings
As at March 31, 2013
As at March 31, 2012
Secured
Term loan from banks (refer note 2.3.1)
400.00
700.00
Term loan from financial institutions (refer note 2.3.2)
472.87
Hire purchase/hypothecation loans (refer note 2.3.3)
80.55
172.53
Loan against keyman insurance policy (refer note 2.3.4)
92.52
92.52
1,045.94
965.05
Total
2.3.1. The loan is secured by a pari passu charge by way of hypothecation of current assets and the moveable assets of the company.The
loan carries an interest rate of 14% per annum.The loan is repayable over a period of three years in ten quaterly instalments (including
current maturities) in the below mentioned repayment pattern
Financial year
Repayment pattern
Amount (Rs.lakhs)
2012-13
75 lakhs * 4 quarters
300.00
2013-14
75 lakhs * 4 quarters
300.00
2014-15
400.00
2.3.2 Term loan from financial institutions include the following:
a. Rs.497.08 lakhs which is secured against the immoveable property belonging to the managing director and is repayable over a
period of 5 years, out of which, Rs.78.43 lakhs is repayable within one year
b. Rs.100 lakhs which is secured against certain shares held by the holding company M/s.Accel Limited and is repayable after 2 years
2.3.3. The loans have been availed for acquiring certain fixed assets and are secured by hypothecation of specific assets purchased out of
such loans. The loans are repaid in accordance to the repayment schedule agreed with the lender.
2.3.4. This loan is availed from Life Insurance Corporation of India and is secured against the keyman insurance policy placed with them
2.4. Deferred Tax Liability
Deferred Tax (Asset)
On impact of expenditure charged to the statement of profit and loss account in
the current year but allowed for tax purpose on payment basis
Deferred Tax Liability
On difference between book balance and tax balance of fixed assets
Closing Deferred Liability / (Asset) Net
(111.63)
505.30
325.81
439.35
327.72
36
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Nature Of Security
Interest
Rate
Terms Of Repayment
Cash credit
facility from
banks
10,513.03
10,678.75
78.48
41.47
125.69
10,554.50
10,882.92
300.00
300.00
(a) Current maturities of long-term debt:Term Loans from banks (Refer Note No.2.3.1)
Term Loans from financial institutions (Refer Note No.2.3.2)
78.43
83.77
81.11
247.34
292.53
7.26
6.07
1,457.00
934.34
1,476.64
1,329.08
3,650.44
2,943.13
62.35
88.41
363.93
59.04
59.04
121.39
511.38
37
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Computers
Leasehold improvements
Vehicles
Buildings
Computer Software
10
38
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
0.50
(209.36)
1,350.16
(25.90)
881.23
(25.90)
190.85
690.38
(183.46)
468.93
(183.46)
468.93
(21.80)
23.99
(48.81)
268.20
0.07
(11.16)
14.71
(101.14)
161.46
(0.55)
(8,763.18)
8,566.20
(4,836.79)
4,387.44
(171.70)
171.70
(2,366.13)
2,607.16
(2,298.96)
1,608.58
(3,926.39)
4,178.76
(8.25)
22.40
(3,934.64)
4,156.36
(119.69)
119.69
(275.23)
251.24
(815.87)
647.93
(278.81)
313.32
(573.67)
589.74
(1,541.44)
1,893.34
(329.93)
341.10
As at
Mar 31,2013
(2,614.02)
4,179.79
(1,454.08)
2,493.87
(68.68)
85.85
(1,336.40)
1,660.84
(49.00)
747.18
(1,159.94)
1,685.92
(18.39)
(15.95)
(1,178.33)
1,701.87
0.97
(77.30)
90.09
(367.42)
459.51
(64.64)
89.87
(164.40)
261.19
(424.91)
703.14
(79.66)
97.10
As at
Apr 01,2012
(991.27)
1,067.77
(544.96)
555.47
(17.17)
34.34
(341.92)
360.27
(185.87)
160.86
(446.31)
512.30
(0.57)
(0.05)
(446.88)
512.35
(0.97)
5.96
(26.35)
23.10
(136.85)
113.51
(12.38)
17.34
(40.01)
41.08
(214.35)
293.06
(15.97)
18.30
(191.53)
1,341.75
(25.90)
881.25
(25.90)
190.85
690.40
(165.63)
460.50
(165.63)
460.50
(13.56)
19.41
(48.81)
271.11
0.07
(1.57)
11.75
(101.14)
157.70
(0.55)
0.46
Deletion/
Adjustments
Depreciation
1,122.53
(2,594.77)
8,763.18
(5,132.37)
431.88
(1,608.56)
4,836.79
(171.70)
(2,590.73)
(2,369.03)
171.70
431.88
(50.00)
2,366.13
(1,608.56)
2,298.96
690.65
(986.21)
3,926.39
(2,541.64)
(16.91)
(986.21)
(2,558.55)
(8.25)
690.65
3,934.64
(119.69)
119.69
(51.48)
275.23
(245.55)
100.26
(141.21)
815.87
(710.90)
34.58
(35.92)
278.81
(200.64)
30.78
(98.42)
573.67
(844.30)
(288.21)
513.36
(486.25)
1,541.44
11.67
(53.24)
329.93
Addition
Deletion/
Adjustment
(268.95)
Cost as at
Apr 01,2012
(4,179.79)
3,921.47
(2,493.87)
2,168.09
(85.85)
120.19
(1,660.84)
1,830.26
(747.18)
217.64
(1,685.92)
1,753.38
(15.95)
(0.33)
(1,701.87)
1,753.71
(0.97)
6.93
(90.09)
93.78
(459.51)
301.90
(89.87)
107.14
(261.19)
290.52
(703.14)
838.50
(97.10)
114.94
As at
Mar 31,2013
226.16
(4,583.41)
4,644.72
(2,342.92)
2,219.35
(85.85)
51.51
(705.29)
776.90
(1,551.78)
1,390.94
(2,240.49)
2,425.37
(7.72)
22.73
(2,232.77)
2,402.64
(118.72)
112.76
(185.14)
157.46
(356.36)
346.02
(188.94)
206.18
(312.48)
299.22
(838.30)
1,054.84
(232.83)
4,583.41
2,342.92
85.85
(987.84)
705.29
(1.00)
1,551.78
(1,010.36)
2,240.49
(1.48)
7.72
(1,008.88)
2,232.77
118.72
(98.16)
185.14
(227.08)
356.36
(50.42)
188.94
(99.13)
312.48
(378.07)
838.30
(156.02)
232.83
As at
Mar 31,2012
Net Block
As at
Mar 31,2013
I T
Goodwill
Exchange Adjustment
Office Equipment
Particulars
Sl No
G L O B A L
S E R V I C E S
G L O B A L
I T
S E R V I C E S
30.00
30.00
30.00
30.00
Security Deposits
325.85
328.19
95.44
102.94
Total
421.29
431.13
803.76
1,626.21
Considered doubtful
89.29
51.24
(89.29)
893.05
1,677.45
(51.24)
Total
803.76
2.14. Inventories
1,626.21
157.63
160.27
Finished goods
561.96
1,414.89
Traded goods
1,295.41
237.77
2,371.09
Total
2.15. Trade Receivables
2,162.19
4,386.09
3,975.12
13,605.92
14,283.93
1,301.31
1,866.53
14,907.23
16,150.46
28.60
33.54
1,920.47
591.96
7.26
6.07
0.45
21.79
1,956.78
653.36
724.40
517.79
2,681.18
1,171.15
39
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
980.10
286.33
Rent deposits
627.93
606.72
Other deposits
243.50
336.85
838.23
448.45
2,689.76
1,678.35
2,819.80
2,643.75
Total
2.18. Other Current Assets
Advance income tax, net of tax provisions (Refer note no.2.18.1)
MAT credit entitlement
Prepaid expenses
40.95
1,045.69
755.23
Total
3,865.49
3,439.93
2.18.1. Advance income tax represents tax deducted at source by customers. The company will be receiving the tax refunds after the
income tax assessments are completed by the income tax department
3. Notes to the Statement of Profit and Loss for the year ended
(All amounts in Indian rupees lakhs, unless otherwise stated)
3.1. Revenue from operations
March 31,2013
March 31,2012
852.18
Traded goods
18,783.50
28,697.38
Sale of services
23,204.93
21,749.17
8.75
2.26
189.14
126.50
42,186.32
51,427.49
37.82
92.87
548.59
1,105.03
1,813.79
1,823.76
39,786.12
48,405.83
March 31,2013
March 31,2012
Interest income on
Bank deposits
Others
Other non-operating income
Total
3.3. Cost of raw material and components consumed
Inventory at the beginning of the year
Add: Purchases
47.77
120.47
40.15
40.00
351.83
208.24
March 31,2013
March 31,2012
156.81
171.07
165.05
555.54
321.86
726.61
154.37
156.81
167.49
569.80
March 31,2013
March 31,2012
40
49.63
262.05
Total
16,794.96
24,874.17
16,794.96
24,874.17
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
3. Notes to the Statement of Profit and Loss for the year ended
(All amounts in Indian rupees lakhs, unless otherwise stated)
3.5. (Increase)/decrease in inventories
March 31,2013
March 31,2012
Traded goods
2,440.57
1,614.95
Spares
1,295.41
2,162.19
Finished goods
495.70
36.42
4,231.68
3,813.56
Traded goods
2,231.68
1,410.03
Spares
1,198.54
2,132.92
391.24
14.98
3,821.46
3,557.93
(410.22)
(255.63)
March 31,2013
March 31,2012
7,843.40
7,030.21
445.26
361.83
Gratuity expense
158.56
63.05
Total
Inventories at the beginning of the year
Finished goods
Net (Increase)/decrease in inventories
3.6. Employee benefits expense
Salaries, wages and bonus
Leave encashment
Staff welfare expenses
Total
3.7. Other expenses
12.49
0.80
172.48
155.98
8,632.19
7,611.87
March 31,2013
March 31,2012
5,764.42
6,133.51
Rent
1,317.64
1,307.72
261.10
236.47
28.26
19.58
262.77
289.19
80.82
128.64
85.81
104.90
268.03
170.60
449.04
331.39
1,128.09
1,033.45
107.03
145.38
502.69
1,005.07
536.09
502.87
7.70
6.70
26.68
29.81
119.22
143.31
17.63
40.75
2.80
31.70
Exchange differences
131.01
234.01
151.54
185.64
41.10
25.01
1.09
4.96
337.92
360.79
11,628.48
12,471.45
41
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
3. Notes to the Statement of Profit and Loss for the year ended
(All amounts in Indian rupees lakhs, unless otherwise stated)
3.7.1 Payment to auditors
March 31,2013
March 31,2012
As auditor:
Audit fee
20.99
23.82
Limited review
3.37
3.31
0.93
1.99
Reimbursement of expenses
1.39
0.69
26.68
29.81
March 31,2013
March 31,2012
1,064.04
446.30
3.73
544.95
1,067.77
991.25
March 31,2013
March 31,2012
1,637.21
1,487.11
351.33
285.91
6.53
0.84
1,995.07
1,773.86
Total
3.8. Depreciation and amortization expense
Depreciation of tangible assets
Amortization of intangible assets
Total
3.9. Finance costs
Interest
Bank charges
Exchange Flactuation in Foreign exchange
Total
2012
Sales tax
6,071,815
6,113,923
Service tax
4,428,905
8,955,820
Income tax
123,884,050
95,160,050
20,325,636
297,344,600
314,934,395
42
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Nature of relationship
Controlling company and holding company with effect from 05-08-2011
Other related parties with whom transactions have taken place during the year:
Name of the Party
Accel Systems Group, Inc. USA
Accel Transmatic Limited
Key Management Personnel
Mr. N R Panicker
Mr. K.R Chandrasekaran
Relative of Key Management Personnel
Mrs. Sreekumari Panicker
Mrs. Shanthi Chandrasekaran
Ms. Shruthi Panicker
Nature of relationship
Companies under common control
Companies under common control
Managing Director
Whole time Director (upto 19.12.12)
Wife of Managing Director
Wife of Chief Finance Officer
Daughter of Managing Director
Particulars
Controlling
company
Companies under
common control
Key Management
personnel
2.17
Purchases
12.51
17.04
Rent
97.60
21.53
75.15
25.17
Remuneration
93.02
72.68
0.03
Receivables
18.86
0.46
16.94
414.60
1183.94
89.96
444.06
599.11
0.15
43.30
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
43
G L O B A L
I T
S E R V I C E S
(a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2013;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003
(CARO) as amended by Companies (Auditors Report)(Amendment)
order, 2004 issued by the Government of India vide GSR No.766
(E) in terms of sub-section (4A) of section 227 of the Companies
Act, 1956, we enclose in the annexure a statement on the matters
specified in paragraph 4 and 5 of the said Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations, which
to the best of our knowledge and belief were necessary for the
purposes of our audit;
d. In our opinion, the balance sheet, profit and loss account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956.
c. The balance sheet, profit and loss account and cash flow
statement dealt with by this report are in agreement with the
books of account.
44
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Amount (Rs.)
Due Since
1,35,71,342
July12
75,03,862
April12
45
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
Name of the
statute
Income Tax
Nature of Dispute
Income tax Assessment year 2000-01, in connection
with non-compete fee disallowance
Income tax Assessment year 2007-08, in connection
with Capitalization of application software, IPO
expenses, depreciation of leasehold improvement,
allowance of STPI profits and allowance of goodwill
Income tax Assessment year 2006-07, in connection
with depreciation claimed on temporary wooden
structures.
Income Tax Assessment Year 2008-09 in connection
with depreciation on application software
and allocation of corporate expenses for STPI,
Depreciation on goodwill, temporary structure.
Dividend income and IPO expenses
Disallowance of Capitalisation of application
software, IPO expenses, depreciation of leasehold
improvement, claim of STPI profits and claim of
Goodwill
Appeal filed on 14.10.04 for disputed turnover of
Rs.10, 71,720.00 and interest of Rs.19786/-.
Levy of Tax for non-production of Form F for
Rs.406821/= and Increase in taxable AMC Turnover
from 10% to 20%. Under WBST ACT.
(f ) Wrong imposition of Interest on late payment of
Turnover Tax, Increase in Taxable AMC Turnover etc.
under WBST ACT.
(g) The dispute relates to non-submission of Form F
for interstate branch movement of stock, which the
company has filed at the time of hearing with the
appellate authorities. The Tribunal has remanded
back the case to the assessing officer for fresh
assessment
In the Assessment order 8% CST charged for nonsubmission of Form C and 4% CST charged on CVT
and UPS sales instead of 1%.
Assessment order passed without proper hearing.
Appeal filed before Sr. Joint Commissioner for
reopening of Sales Tax Assessment
Dispute with regard to tax rate on ATVM-KIOSK
Sales Tax
46
Amount (Rs.)
Period to which
the amount
relates
I T
S E R V I C E S
65,82,000
FY 1999-00
42,418,700
FY 2006-07
Commissioner of Income
tax (Appeals), Chennai
7,348,370
FY 2005-06
3,88,10,980
FY 2007-08
Commissioner of Income
tax (Appeals) Chennai
2,87,24,000
FY 2009-10
Commissioner of Income
tax (Appeals), Chennai
115,842
2001-02
Asst. Commissioner
(Appeals)
34,306
2003-04
Assistant Commissioner
139,135
2004-05
Assistant Commissioner
149,787
2002-03
119,115
2001-02
Asst. Commissioner
31,37,553
2006-07
Joint Commissioner
8,68,281
2007-08
Deputy Commissioner
(appeals)
293,929
2007-08
Joint Commissioner
560,072
2007-08
Joint Commissioner
100,123
2007-08
Joint Commissioner
174,198
2008-09
Joint Commissioner
226,508
2008-09
Joint Commissioner
39,283
FY 2009-10
Joint COmmissioner
113,683
2006-2007
Joint Commissioner
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Service Tax
584,433
FY 2007-08
FY 2008-09 &
22,03,375
2009-10
FY 2010-11 &
16,41,097
Apr11 to June 11
CESTAT, Chennai
Additional Commissioner
Chennai
Additional Commissioner,
Chennai
(x) The company does not have any accumulated losses at the end of the financial year and has not incurred any cash losses during
the financial year covered by our audit and in the immediately
and on an overall examination of the utilization of funds, we report
preceding financial year.
that the no funds raised on short-term basis have been used for
long-term investment.
(xi) Based on our audit procedures and as per the information
and explanations given by the management the company has not (xviii) The company has not made any preferential allotment of
defaulted in repayment of dues to banks.
shares to parties and companies covered in the register maintained
under section 301 of the Companies Act 1956.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us the company (xix) The company did not have any outstanding debentures
has not granted loans and advances on the basis of security by way
during the year.
of pledge of shares and other securities.
(xx) During the year the company has not raised any money from
(xiii) In our opinion, the Company is not a chit fund or a nidhi/ public by way of issue of shares.
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 are not (xxi) According to the information and explanations given to us, no
applicable to the company.
fraud on or by the Company has been noticed or reported during
the course of our audit.
(xiv) In our opinion and according to the information and
explanations given to us, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly
the provisions of clause 4 (xiv) Companies (Auditors Report) Order,
2003 are not applicable to the company.
K.S.AIYAR & CO.
(xv) The company has not given any guarantee for loans taken by
Chartered Accountants
others from bank or financial institutions.
(Firm Regn No: 100186W)
(xvi) According to the records of the company, the company has
(S.Kalyanaraman)
availed the term loans and used the same for the intended purpose. Place : Chennai - 16
Partner
Date : May 29, 2013
(M No: 200565)
(xvii) According to the information and explanations given to us
47
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Balance sheet as at
March 31,2013
March 31,2012
2,426.19
2.1
2,426.19
2.2
7,120.20
6,840.23
9,546.39
9,266.42
Non-current liabilities
Long-term borrowings
2.3
1,031.30
948.58
2.4
325.81
327.72
Long-term provisions
2.5
368.57
240.86
1,725.68
1,517.16
Current liabilities
Short-term borrowings
2.6
9,130.91
8,650.80
Trade payables
2.7
8,858.67
9,526.46
2.8
2,962.30
2,549.54
Short-term provisions
2.9
120.35
511.38
21,072.23
21,238.18
32,344.30
32,021.76
TOTAL
Assets
Non-current assets
Fixed assets
2.10
1,939.42
1,722.21
2,211.97
2,331.83
4,151.39
4,054.04
Capital work-in-progress
59.40
234.75
1,478.14
Non-current investments
2.11
2,181.07
2.12
331.50
324.26
2.13
762.61
1,586.95
7,485.97
7,678.14
2.14
4,313.28
3,905.32
14,349.79
Current assets
Inventories
Trade receivables
2.15
12,538.02
2.16
1,641.91
937.86
2.17
2,602.30
1,838.47
2.18
TOTAL
Significant Accounting Policies
Other Notes
3,762.82
3,312.18
24,858.33
24,343.62
32,344.30
32,021.76
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
48
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Notes
March 31,2013
March 31,2012
Continuing operations
Income
Revenue from operations
3.1
32,606.72
41,705.77
Other income
3.2
314.54
646.70
32,921.26
42,352.47
3.3
167.49
569.79
3.4
14,462.38
22,213.86
3.5
(410.40)
(248.13)
3.6
6,100.53
6,055.85
Other expenses
3.7
Total (II)
Earnings before interest, tax, depreciation and
amortization (EBITDA) (I) (II)
9,255.33
10,108.43
29,575.33
38,699.80
3,345.93
3,652.67
3.8
968.60
795.08
Finance costs
3.9
1,953.83
1,719.15
423.50
1,138.44
114.81
246.37
(40.95)
40.95
(10.32)
(1.91)
(5.58)
143.53
199.84
279.97
938.60
Deferred tax
1.15
3.87
(2) Diluted
1.15
3.87
Other Notes
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
49
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
March 31,2013
March 31,2012
423.50
1,138.44
968.60
795.08
0.12
4.96
Interest expenses
1,953.83
1,718.31
Interest income
(287.42)
(47.77)
Dividend income
Operating profit before working capital changes
(500.00)
3,058.63
3,109.02
(667.78)
643.28
127.71
120.44
(27.10)
412.76
1,367.70
2,636.10
(2,003.07)
(407.95)
(1,258.22)
(7.24)
(160.85)
(763.83)
(751.53)
(450.63)
(966.15)
852.03
(3,008.40)
3,910.68
100.62
(966.49)
(2,623.65)
(517.92)
4.73
3.82
(702.92)
(854.16)
212.98
47.77
500.00
(1,678.91)
(1,451.70)
(5,123.05)
82.72
938.23
480.10
5,441.66
(1,953.83)
(1,718.31)
(363.92)
(450.18)
Interest paid
Dividend paid on equity shares
Tax on equity dividend paid
(74.77)
(1,754.93)
4,136.63
704.05
(885.80)
937.86
1,823.66
1,641.91
937.86
13.85
17.09
935.44
392.58
- on deposit account
685.36
500.33
7.26
6.07
21.79
1,641.91
937.86
* The company can utilize these balances only toward settlement of the respective unpaid dividend and unpaid matured deposits.
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
50
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
and the carrying amount of the asset and are recognized in the
statement of profit and loss when the asset is derecognized.
1.01 Background
Asset
Plant and machinery
Office equipment
Furniture and fixtures
Computer hardware (except
computers on lease)
Vehicles
Lease hold improvements
Rate of depreciation /
amortization (%)
4.75
4.75
6.33
16.21
9.5
Over the lower of estimated
useful lives of the assets or the
primary period of the lease.
51
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
(c) Leases
Where the company is lessee
Finance leases, which effectively transfer to the company
substantially all the risks and benefits incidental to ownership of
the leased item, are capitalized at the inception of the lease term at
the lower of the fair value of the leased property and present value
of minimum lease payments. Lease payments are apportioned
between the finance charges and reduction of the lease liability so
as to achieve a constant rate of interest on the remaining balance of
the liability. Finance charges are recognized as finance costs in the
statement of profit and loss. Lease management fees, legal charges
and other initial direct costs of leases are capitalized.
A leased asset is depreciated on a straight line basis over the useful
life of the asset or the useful life envisaged in the Schedule XIV to
the Companies Act, 1956, whichever is higher. However if there is no
reasonable certainty that the company will obtain the ownership
by the end of the lease term, the capitalized asset is depreciated on
a straight line basis over the shorter of the estimated useful life of
the asset, the lease term or the useful life envisaged in Schedule XIV
to the Companies Act, 1956.
52
(f) Inventories
Sale of goods
Revenue from sale of goods is recognized when all the significant
risks and rewards of ownership of the goods have been passed
to the buyer, usually on delivery of the goods. The company
collects sales taxes and value added taxes (VAT) on behalf of the
government and, therefore, these are not economic benefits
flowing to the company. Hence, they are excluded from revenue.
Excise duty deducted from revenue (gross) is the amount that is
included in the revenue (gross) and not the entire amount of
liability arising during the year.
Income from services
Income from Annual maintenance contracts is recognized
proportionately over the period of the respective contracts.
Accrued income shown under Other current assets represents
amount recognized based on services performed in advance of
billing in accordance with contractual terms.
Revenues from maintenance contracts are usually recognized as
the service is performed ,by the proportionate completion method.
pro-rata over the period of the service as and when services are
rendered. The company collects service tax on behalf of the
government and remit the same to the government, therefore, it
is not an economic benefit flowing to the company. Hence, it is
excluded from revenue.
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Impairment
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
53
G L O B A L
I T
S E R V I C E S
Contingent liabilities
3,300.00
3,300.00
2,426.19
2,426.19
Authorised capital
33,000,000 (March 31, 2012: 33,000,000) equity shares of `10/- each
Issued, Subscribed & Paid up
24,261,873 (March 31, 2012: 24,261,873) equity shares of `10/- each
2,426.19
Total
2.1.1.- Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period:Equity Shares
2,426.19
Amount
Number
Amount
24,261,873
2,426.19
22,509,000
2,250.90
7,500,000
750.00
5,747,127
574.71
14,550,166
15,175,166
483,085
1,283,085
54
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Accel Limited
% of
Holding
% of
Holding
14,550,166
59.97%
15,175,166
483,085
1.99%
1,283,085
5.29%
1,377,178
5.68%
3,063,642
12.63%
3
Mega Resources Limited
2.2 Reserves & surplus
62.55%
4,932.34
4,932.34
4,932.34
4,932.34
858.71
878.08
100.00
(119.37)
858.71
858.71
1,049.18
2,414.74
279.97
938.60
144.10
(363.93)
(59.04)
(1,925.29)
Less: Appropriations
(100.00)
Total appropriations
(2,448.26)
1,329.15
1,049.18
7,120.20
6,840.23
Total
2.2.C.1 Dividend added back to reserves in the previous year include Rs.114.94 lakhs representing dividend received by Accel Frontline
Services Limited from the company which got cancelled as per the merger scheme and Rs.29.16 lakhs representing write back of dividend
proposed in Accel Frontline Services Limited for the year 2010-11, but, not approved later in the AGM.
2.2.C.2 To give effect to the merger scheme in the previous year, 5,747,127 shares of the company held by Accel Frontline Services Limited
was cancelled. The value of these shares was Rs.2,500 lakhs, out of this, Rs.574.71 lakhs was deducted from the Issued, Subscribed & Paid
up capital and the balance of Rs.1,925.29 lakhs was deducted from Profit and Loss account
2.3 Long term borrowings
400.00
700.00
472.87
65.91
156.06
92.52
92.52
1,031.30
948.58
Total
55
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Repayment pattern
Amount (Rs.lakhs)
2012-13
75 lakhs * 4 quarters
300.00
2013-14
75 lakhs * 4 quarters
300.00
2014-15
100 lakhs * 4 quarters
400.00
2.3.2 Term loan from financial institutions include the following:
a. Rs.497.08 lakhs which is secured against the immoveable property belonging to the managing director and is repayable over a
period of 5 years, out of which, Rs.78.43 lakhs is repayable within one year
b. Rs.100 lakhs which is secured against certain shares held by the holding company M/s.Accel Limited and is repayable after 2 years
2.3.3 The loans have been availed for acquiring certain fixed assets and are secured by hypothecation of specific assets purchased out
of such loans. The loans are repaid in accordance to the repayment schedule agreed with the lender.
2.3.4 This loan is availed from Life Insurance Corporation of India and is secured against the keyman insurance policy placed with them
2.4 Deferred Tax Liability
(179.49)
(111.63)
505.30
439.35
325.81
327.72
262.68
152.76
105.89
88.10
Total
368.57
240.86
The Provision for Gratuity and Leave Encashment are based on information certified by the Life Insurance Corporation of India (in the
case of gratuity) and an independent actuary (in the case of leave benefits) and relied upon by the auditors
2.6 Short term borrowings
8,630.91
8,650.80
Secured
Cash credit facility from banks (refer note 2.6.1)
Unsecured
Loans from financial institutions (refer note 2.6.2)
Total
500.00
9,130.91
8,650.80
56
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Nature Of Security
Interest Rate
Terms Of Repayment
8,841.30
9,322.29
78.48
17.37
125.69
8,858.67
9,526.46
300.00
300.00
(a) Current maturities of long-term debt:Term Loans from banks (Refer Note No.2.3.1)
Term Loans from financial institutions (Refer Note No.2.3.2)
78.43
83.77
77.30
247.34
292.53
7.26
6.07
1,252.20
747.19
993.30
1,126.45
2,962.30
2,549.54
61.31
88.41
363.93
59.04
59.04
120.35
511.38
57
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Computers
Leasehold improvements
Vehicles
Computer Software
1,067.67
(2,388.88)
7,283.91
(1,608.55)
(2,590.73)
(5,094.72)
431.88
4,173.38
(171.70)
(2,369.03)
171.70
431.88
(50.00)
2,343.13
(1,608.55)
1,658.55
635.79
(780.33)
3,110.53
(2,503.99)
(51.48)
239.61
(209.93)
100.26
(141.21)
803.30
(710.90)
30.75
(29.75)
230.39
(200.64)
6.53
(42.60)
320.42
(839.57)
(279.31)
488.07
(469.85)
1,208.28
10.18
(45.44)
308.53
Addition
(263.64)
Cost as at
Apr 01,2012
(199.69)
695.03
(25.90)
240.85
(25.90)
190.85
50.00
(173.79)
454.18
(21.80)
23.99
(48.81)
268.20
0.07
(1.49)
9.28
(101.14)
152.14
(0.55)
0.50
Deletion/
Adjustment
(7,283.91)
7,656.55
(4,173.38)
4,364.41
(171.70)
171.70
(2,343.13)
2,584.16
(1,658.55)
1,608.55
(3,110.53)
3,292.14
(239.61)
215.62
(803.30)
635.36
(230.39)
261.07
(320.42)
317.67
(1,208.28)
1,544.21
(308.53)
318.21
As at
Mar 31,2013
(2,625.72)
3,229.87
(1,454.08)
1,841.55
(68.68)
85.85
(1,336.40)
1,648.91
(49.00)
106.79
(1,171.64)
1,388.32
(76.26)
85.15
(367.42)
454.97
(64.64)
75.54
(161.86)
189.22
(423.52)
490.79
(77.94)
92.65
As at
Apr 01,2012
(795.08)
968.60
(413.37)
551.74
(17.17)
34.34
(338.41)
356.54
(57.79)
160.86
(381.71)
416.86
(22.45)
21.06
(136.36)
111.42
(10.90)
12.35
(28.31)
20.03
(168.43)
235.16
(15.26)
16.84
(190.93)
693.31
(25.90)
240.85
(25.90)
190.85
50.00
(165.03)
452.46
(13.56)
19.41
(48.81)
271.11
0.07
(0.95)
9.28
(101.16)
152.13
(0.55)
0.46
Deletion/
Adjustments
Depreciation
(3,229.87)
3,505.16
(1,841.55)
2,152.44
(85.85)
120.19
(1,648.91)
1,814.60
(106.79)
217.65
(1,388.32)
1,352.72
(85.15)
86.80
(454.97)
295.28
(75.54)
87.82
(189.22)
199.97
(490.79)
573.82
(92.65)
109.03
As at
Mar 31,2013
(4,054.04)
4,151.39
(2,331.83)
2,211.97
(85.85)
51.51
(694.22)
769.56
(1,551.76)
1,390.90
(1,722.21)
1,939.42
(154.46)
128.82
(348.33)
340.08
(154.85)
173.25
(131.20)
117.70
(717.49)
970.39
(215.88)
209.18
As at
Mar 31,2013
(1,951.09)
4,054.04
(988.84)
2,331.83
85.85
(987.84)
694.22
(1.00)
1,551.76
(962.25)
1,722.21
(63.71)
154.46
(227.08)
348.33
(50.42)
154.85
(93.91)
131.20
(374.73)
717.49
(152.40)
215.88
As at
Mar 31,2012
Net Block
I T
58
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Goodwill
Office Equipment
Particulars
Sl No
G L O B A L
S E R V I C E S
G L O B A L
I T
S E R V I C E S
774.77
80.47
120.46
120.46
118.32
118.32
223.97
223.97
50.75
50.75
64.16
64.17
790.00
790.00
8.64
30.00
30.00
2,181.07
1,478.14
238.24
223.28
93.26
100.98
331.50
324.26
762.61
1,586.95
89.29
51.24
851.90
1,638.19
(89.29)
(51.24)
Total
762.61
1,586.95
59
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
154.36
156.81
Finished goods
492.43
36.42
Traded goods
1,295.41
1,549.90
2,371.08
2,162.19
4,313.28
3,905.32
Trade receivables
11,487.69
12,851.83
Other receivables
1,050.33
1,497.96
12,538.02
14,349.79
13.85
17.09
935.44
392.58
Total
2.15 Trade receivables
Unsecured, considered good and outstanding for a period less
than six months from the date they are due for payment
Total
2.16 Cash and Cash equivalents
Cash on Hand
Balances with Banks
- on current accounts
- on unpaid dividend accounts
7.26
6.07
- on fixed deposits
0.45
21.79
957.00
437.53
684.91
500.33
1,641.91
937.86
1,240.52
857.54
Rent deposits
627.93
606.72
Other deposits
174.09
219.16
559.76
155.05
2,602.30
1,838.47
2,783.94
2,577.00
Total
2.18 Other current assets
Advance income tax, net of tax provisions (Refer note no.2.18.1)
MAT credit entitlement
Prepaid expenses
Total
40.95
978.88
694.23
3,762.82
3,312.18
2.18.1 Advance income tax represents tax deducted at source by customers out of the services income. The company will be receiving the
tax refunds after the income tax assessments are completed by the income tax department
60
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
3. Notes to the Statement of Profit and Loss account for year ended
(All amounts in Indian rupees lakhs, unless otherwise stated)
3.1 Revenue from operations
March 31,2013
356.22
Traded goods
15,799.38
28,607.69
Sale of services
18,948.14
15,551.33
8.75
2.26
180.32
126.50
34,936.59
44,644.00
37.82
92.87
547.40
1,104.03
1,744.65
1,741.33
32,606.72
41,705.77
March 31,2013
March 31,2012
49.63
47.77
237.79
88.75
500.00
Interest income on
Bank deposits
Others
Dividend income on
Investment in subsidiaries
Other non-operating income
Total
3.3 Cost of raw material and components consumed
27.12
10.18
314.54
646.70
March 31,2013
March 31,2012
156.81
171.07
Add: Purchases
165.04
555.53
321.85
726.60
154.36
156.81
167.49
569.79
March 31,2013
March 31,2012
14,462.38
22,213.86
14,462.38
22,213.86
March 31,2013
March 31,2012
2,371.08
1,549.90
Traded goods
1,295.41
2,162.19
Stock in Trade
492.43
36.42
4,158.92
3,748.51
2,162.19
1,352.48
Traded goods
1,198.55
2,132.92
Stock in Trade
387.78
14.98
3,748.52
3,500.38
(410.40)
(248.13)
Total
3.5 (Increase)/decrease in inventories
Inventories at the end of the year
61
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
3. Notes to the Statement of Profit and Loss account for year ended
(All amounts in Indian rupees lakhs, unless otherwise stated)
3.6 Employee benefits expense
Salaries, wages and bonus
March 31,2013
March 31,2012
5,510.21
5,565.25
341.80
316.59
Gratuity expense
116.65
37.50
Compensated absence
12.35
0.80
119.52
135.71
6,100.53
6,055.85
Total
Disclosure required under AS 15 (Revised) Employee Benefits
i. DEFINED CONTRIBUTION PLAN
Defined Contribution Plan, recognized as expenses for the year as
under:
Particulars
Employers Contribution to Provident fund
Employers contribution to Employee State Insurance Corporation
March 31,2012
271.43
248.56
53.90
52.80
March 31,2013
March 31,2012
8.00%
8.00%
5.00%
5.00%
1-3%
1-3%
Attrition rate
*The assumption of future salary increases takes into account of inflation, seniority, promotions and other relevant factors such as
demand and supply in the employment market.
March 31,2013
March 31,2012
269.84
210.90
135.87
63.05
26.77
24.00
Interest Cost
Actuarial (gain)/loss
121.56
Benefits Paid
(75.01)
(28.10)
479.03
269.84
March 31,2013
March 31,2012
479.02
422.15
216.33
269.39
262.69
152.76
62
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
3. Notes to the Statement of Profit and Loss account for year ended
(All amounts in Indian rupees lakhs, unless otherwise stated)
March 31,2013
March 31,2012
135.87
83.87
26.77
32.96
(21.50)
(24.00)
121.56
(78.53)
Total expenses recognized in the Profit and Loss Account for the year
116.65
14.30
March 31,2013
March 31,2012
8.00%
8.00%
5.00%
5.00%
24.62
23.84
March 31,2013
March 31,2012
93.11
86.09
297.11
163.25
18.28
13.42
(302.61)
(169.65)
105.89
93.11
March 31,2013
March 31,2012
105.89
93.11
105.89
93.11
March 31,2013
March 31,2012
297.11
163.25
18.28
13.42
(302.61)
(169.65)
12.78
7.01
The above disclosures are based on information certified by the independent actuary and relied on by the auditors.
63
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
3. Notes to the Statement of Profit and Loss account for year ended
(All amounts in Indian rupees lakhs, unless otherwise stated)
3.7 Other expenses
March 31,2013
March 31,2012
4,466.78
4,839.82
Rent
1,052.83
999.06
232.32
208.49
23.54
12.79
250.41
279.01
65.83
91.96
Insurance
69.13
88.90
252.48
158.31
Communication costs
409.93
287.94
982.74
935.15
92.56
130.84
449.25
898.66
187.91
263.14
7.70
6.70
23.36
26.96
55.83
54.62
16.20
40.75
Sales Commission
2.80
6.93
133.60
232.59
130.50
172.89
41.10
25.01
1.09
4.96
307.43
342.95
9,255.33
10,108.43
Miscellaneous expenses
Total
3.7.1. Payment to auditors
March 31,2013
March 31,2012
As auditor:
Audit fee
17.92
21.06
Limited review
3.37
3.31
0.68
1.99
Reimbursement of expenses
Total
The audit fee includes foreign branch auditor fees of Rs.2.19 lakhs (Previous year Rs.1.96 lakhs)
3.8 Depreciation and amortization expense
1.39
0.60
23.36
26.96
March 31,2013
March 31,2012
435.87
381.71
532.73
413.37
Total
968.60
795.08
March 31,2013
March 31,2012
1,619.67
1,455.89
333.32
262.42
0.84
0.84
1,953.83
1,719.15
64
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
2013
2012
Sales tax
6,071,815
6,113,923
Service tax
4,428,905
8,955,820
Income tax
123,884,050
95,160,050
20,325,636
297,344,600
314,934,395
Nature of relationship
Accel Limited
Accel Systems & Technologies Pte Limited, Singapore
Accel Frontline JLT, Dubai
Accel North America, Inc, USA
Accel IT Resources Limited
Network Programs USA Inc., USA
Network Programs (Japan) Inc., USA
Accel Japan KK, Japan
Accel Technologies Limited, U.K
Other related parties with whom transactions have taken place during the year:
Name of the Party
Nature of relationship
Accel Systems Group, Inc. USA
Companies under common control
Accel Transmatic Limited
Companies under common control
Key Management Personnel
Mr. N R Panicker
Managing Director
Mr. K.R Chandrasekaran
Whole time Director (upto 19.12.12)
Relative of Key Management Personnel
Mrs. Sreekumari Panicker
Wife of Managing Director
Mrs. Shanthi Chandrasekaran
Wife of Chief Finance Officer
Ms. Shruthi Panicker
Daughter of Managing Director
65
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
Particulars
Sales and other income
Purchases
Rent
97.60
75.15
973.95
126.07
0.86
108.48
-
Companies under
common control
2.17
12.51
17.04
-
500.00
2151.08
1448.14
3.17
952.08
861.56
424.34
329.36
0.03
18.86
0.46
16.94
1183.94
-
482.15
599.11
329.36
43.30
Subsidiaries
Key Management
personnel
21.53
25.17
93.02
72.68
-
Remuneration
Dividend
US $
Rs.
US $
5,917,302
448,675,066
9,156,634
7,622,075
140,333
5,217,912
101,999
Sundry Debtors
141,601,525
2,605,124
71,570,003
1,586,826
Sundry Creditors
13,102,965
2,411,976
77,007,582
1,618,811
751,383
13,834
165,963
3,387
Others
11,656,966
472,316,411
No of Nonresident
shareholders
Dividend
for the
year)
04
No of
equity
shares
held
2012
Rupees
493,785 740,678
No of Nonresident
shareholders
No of
equity
shares
held
Rupees
06
1,299,135 2,598,250
2013
2012
2012
290,615,278
2012
321,393,540
Turnover
2013
Components
2012
2,708,230
Income from
services
557,973,171
300,034,872
66
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
I.
Registration details
Registration number
Balance Sheet date
II.
18-31736
March 31, 2013
NIL
Rights Issue
NIL
Bonus Issue
NIL
Private Placement
NIL
Total Liabilities
32,344.50
Total Assets
32,344.50
Sources of funds
Paid up capital
2,426.19
Secured loans
15,751.11
7,120.20
-
325.81
Application of funds
Net fixed assets
4,210.79
12,917.01
Investments
2,187.07
Misc. expenditure
Total expenditure
29,575.33
32,921.26
423.50
1.15
279.97
0
Generic names of three principal products / services of company (as per monetary terms)
Item code no (ITC code)
Product description
Item code no (ITC code)
Product description
847100
Computers &
Periphearls
852490
Sofware
Development
67
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
G L O B A L
I T
S E R V I C E S
68
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.