Ar 14
Ar 14
Ar 14
th
Annual Report
2013 - 14
BOARD OF DIRECTORS
N R Panicker
Executive Chairman (w.e.f. May 7, 2014)
Malcolm F Mehta
Executive Director (w.e.f. July 1, 2014)
R Ramaraj
Director
Bin Cheng
Non-Executive Director (w.e.f. August 13, 2014)
Masaaki Miura
Independent Director (w.e.f. August 13, 2014)
BANKERS
State Bank of India
IDBI Bank Limited
ICICI Bank Limited
Axis Bank Limited
Sumitomo Mitsui Banking Corporation
Alok Sharma
Independent Director
K. R. Chandrasekaran
(Ceased to be a CFO w.e.f. July 1, 2014)
COMPANY SECRETARY
Sweena Nair
STATUTORY AUDITORS
REGISTERED OFFICE
75, Nelson Manickam Road
Aminjikarai,
Chennai - 600 029.
Tel : +91.44.4225 2000
Fax : +91.44.2374 1271
Email : info@accelfrontline.in
Website : www.accelfrontline.in
CIN : L30006TN1995PLC031736
INTERNAL AUDITORS
Grant Thornton
Arihant Nitco Park, 6th floor,
No. 90, Dr.Radhakrishnan Salai,
Mylapore, Chennai - 600 004, India.
SOLICITORS
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Contents
Directors report
12
Consolidated financials
23
Standalone financials
44
2
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Directors Report
To
The Members
The Directors are pleased to present the 19th annual report along with the audited financial statements for the financial year
ended March 31, 2014.
Financial results
INR in lakhs
Consolidated
2014
Standalone
2013
2014
2013
42650.46
40,137.95
29914.11
32921.26
4066..84
3,325.05
3594.12
3,345.93
Finance costs
2441.29
1,995.07
2327.49
1953.83
1106.53
1,067.77
971.69
968.60
69.81
143.54
50.04
143.54
449.21
118.67
244.78
279.96
1625.69
1.507.02
1329.15
1,049.17
2074.90
1.625.69
1573.93
1,329.15
2074.90
1625.59
1573.93
1,329.15
Consolidation
The domestic economy continued to languish recording a below 5
% growth for the second consequent year, during FY 14, The
constant changes in domestic and global economic landscape
continues to create uncertainty in the business environment .The
expected recovery of the Indian economy during the second half
did not materialize due to adverse political climate prevailed in the
country,. However the exchange rates showed some stability
during the second half bringing some comfort to our operations.
The prospects of growth in the indian economy continues to be
challenged due to various factors like depreciating rupee, inflation,
current account deficit etc. The company is constantly monitoring
the situation and taking various steps for risk mitigation.
Share Capital
During the FY2014, the company allotted 55,00,000 Equity shares
on 10th January 2014 by way of preferential allotment to M/s CAC
Holdings Corporation.( CAC) ( earlier CAC Corporation) as a part
of the shareholders agreement dated 9th December 2013 entered
3
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Quality standards
Accel believes in sustained commitment to highest levels of quality
to enhance customer satisfaction. During the year the company
continued to invest in technologies, infrastructure and processes
in order to keep our quality management systems updated.
Financial Statements of Subsidiary companies:The Company has 8 subsidiaries as on March 31, 2014There
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.
Dividend
The Directors have not recommended dividend for the year
ended March 31, 2014 to conserve resources and to augment
the long term working capital for future growth.
Directors
Mr. A.P.Parigi having DIN 00087586 resigned from the Board
with effect from 7th May 2014. The Board places on record its
deep appreciation and gratitude for his guidance and
contribution to the company during his tenure.
Mr. Steve Ting Tuan Toon having DIN 00114004 resigned from
the board with effect from 13th August 2014. The Board places on
record its deep appreciation and gratitude for his guidance and
contribution to the company during his long tenure.
4
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Credit Rating
Mr. Steve Ting Tuan Toon who has resigned on 13th August
2014, would have retired by rotation at this Annual General
Meeting. Mr. Bin cheng now retires by rotation and has
offered himself for appointment.
Auditors
M/s Walker Chandiok & Co.LLP, Chartered Accountants, Chennai
bearing ICAI Registration No. 001076N are proposed to be
appointed as Auditors of the Company from the conclusion of the
ensuing Annual General Meeting till the conclusion of the twenty
fourth Annual General Meeting of the Company held thereafter (a
period of five years), subject to ratification of the appointment by
the members at every AGM held after the ensuing AGM.
Internal Auditors
M/s K S Aiyar and Co the erstwhile statutory Auditors of the
company will be the Internal Auditor of the company for the
financial year 2014-2015. w.e.f. the conclusion of this AGM.
Particulars of Employees
The particulars regarding employees of the company
pursuant to Section 217 (2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules,
1975 are given as annexure VII to the Directors Report. In
terms of sec 219 (1) (b) (iv) of the Companies Act 1956 the
Directors Report (excluding annexure VII) is being sent to all
the shareholders of the company. Any shareholder interested
in obtaining a copy of the said annexure may write to the
company secretary at the registered office of the company.
Conservation of energy, technology absorption, foreign
exchange earnings and outgo
The particulars as prescribed under Section 217(1)(e) of the
Act, read with the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988, are set out in an
Annexure to this report.
Acknowledgement
The directors would like to express their grateful appreciation for
the assistance and co- operation received from central and state
governments, financial institutions, banks, government authorities,
customers, suppliers and investors during the year under review.
The directors wish to place on record their deep sense of
appreciation, of the dedicated and sincere services rendered by
the employees of the company for its success.
N.R. Panicker
Executive Chairman
5
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Strategy
Accels strategy to achieve and strengthen its long term
objectives is derived from the following:
1.
2.
3.
4.
5.
Business overview
Accel is an end-to-end Information Technology services provider
specializing in IT Infrastructure Management, System Integration,
IT software services and warranty management services.
6
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
We also have a range of multi function Kiosks developed inhouse which are used for kiosk based payment solutions
Research and Development
2013-14
225.01
Other products
182.17
Total
407.18
Delivery model
Accels delivery model is to provide quality services at low
cost of ownership. The companys offshore delivery centres
are strategically located at Trivandrum, Cochin, Chennai and
Noida in India.
The hybrid delivery model enables Accel to provide end to
end solutions across multiple product segments in the
warranty management space.
The domestic IT service operations span across 8 regional offices
and over 100+ direct service locations across India in a hub-andspoke model to help deliver our services on a pan India basis.
The company has strategic partnerships with international
technology providers such as Oracle, IBM and Microsoft to deliver
solutions and services that are leading edge and industry oriented.
7
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
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.
Risk Management
Some of the key business risks faced by the company and plans to mitigate the same is given below:
Key Risk
Impact on Accel
Business model
Increased trends in customers moving Planned investment in emerging enterprise solutions, mobility
towards total IT outsourcing deals as a and could services.
single window solution which includes
tech refresh and adaptation of new age Updating existing products and developing new solutions
technologies. Large solution providers
are better positioned to take advantage
of this phenomenon
Mitigation plan
Global economic slow Economic slowdown in key markets like Despite slowdown, there is good opportunity in these markets
down
US and Europe has lead to uncertainties for high value add services like embedded solutions, outsourced
in offshoring opportunities
product development, etc., which will yield cost optimization for
the customers
Focusing on other emerging markets, which are growing at a
faster pace
Dependence on
domestic system
integration and
services business
Cost pressure
The increase in key costs like employee The operations have been decentralized with every service units
costs, infrastructure costs and other
being run as a separate business to have greater control on costs
operational overhead costs are creating and profitability.
pressure on margins
Core focus to improve utilization and productivity of employees
Increase in non-linear business which will not have a direct
impact on costs
Forex exposure
The company is susceptible to volatility Larger part of costs are incurred in local currency resulting in a
in currencies resulting in transaction
natural hedge
exposures
Currency hedging policies are in place, which are reviewed on a
regular basis
High leverage
Accel has a high debt equity ratio with With a clear plan in place to invest only in high profitable
high financing costs. This could impact business, control costs and improve collection of receivables , the
further borrowing also impact the
debt pressure is expected to ease out
operations
8
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
FY13
%
In INR lakhs
Growth in %
42,133.83
100%
39786.11
100%
6%
17888.72
42.46%
16552.24
41.60%
7%
Costs
Raw material costs
Employee costs
9393.97
22.30%
8632.18
21.70%
8%
Other costs
11300.96
26.82%
11628.48
29.23%
-3%
Total costs
38583.65
91.57%
36812.9
92.53%
5%
4066.84
9.65%
3325.05
8.36%
18%
Other income
516.63
1.23%
351.83
0.88%
32%
Finance costs
2,441.29
5.79%
1995.07
5.01%
18%
1,106.53
2.63%
1067.77
2.68%
4%
519.02
1.23%
262.21
0.66%
49%
69.81
0.17%
143.54
0.36%
-106%
449.21
1.07%
118.67
0.30%
74%
Revenue analysis
The revenue mix by services and a comparison with previous
year is given below:
9
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
3.
5.
Accels
infrastructure
management
services,
warranty
management, enterprise software services are primarily driven by
domestic IT markets. The India business witnessed a negative
growth in FY14 due to decline in IT infrastructure solutions
(hardware centric business) and warranty management services.
This decline was partly offset by increase in overseas subsidiaries
business and enterprise software services .
The company witnessed a growth in all the overseas markets except
Middle East in FY14, driven by lower revenues from hardware and
enterprise business owing to delayed closing of new orders. Growth in
Singapore market was driven by IT security.
EBITDA margins
On a consolidated basis EBITDA improved from INR 3325 lakhs
in FY13 to INR 4067 lakhs in FY14 in absolute terms, EBITDA
margin improved from 8.28% in FY13 to 9.5% in FY14. This was
driven by change in business mix, with increase, in service
revenues and decline in hardware revenues (IIS)
The company is in the process of implementing various 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,
10
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
4920.73
4,704.12
1310.91
1,308.27
30.00
30
1155.49
421.29
640.28
803.76
8057.41
7,267.44
Non-current investments
Long-term loans and advances
Long-term Trade receivables
Current assets
Inventories
Financing costs
The financing costs increase in FY14 driven by impact of (a) fresh
loans taken during the year and (b) full year impact of loans taken
during previous financial year 2012-13. 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 . During the
year the company raised additional equity share capital by issuing
shares on a preferential basis to overseas investors, which will
also help reduce the finance costs.
Taxation
We have provided for the tax liability under MAT tax rates
prescribed under the Income Tax Act, 1961. There is no tax
liability for the Dubai subsidiary and we have unabsorbed
losses in Some of the overseas subsidiaries
The consolidated balance sheet of Accel Frontline Limited is
given below:
Consolidated balance sheet of Accel Frontline Limited
4106.44
4,386.09
16658.18
14,907.23
1936.74
2,681.18
1448.22
2,689.76
Trade receivables
Total
5513.54
3,865.49
29663.12
28,529.75
37720.53
35,797.19
Key highlights:
Equity and reserves
During FY14, the company issued equity shares on preferential
basis to CAC Holdings Corporation, Japan (CAC). The total
amount received including on account of Securities premium was
Rs. 2475 lacs. As a result of that, the equity base went up from
2426 lacs to 2976 lacs and securities premium from 4932 lacs to
6857 lacs. Consequent to this investment and other related
transactions, the promoters entered into with CAC, and the open
offer as per SEBI guidelines, CAC emerged as the single largest
shareholder with 60.95%. the holding of erstwhile promoters Accel
reduced, to 26.20%
Borrowings
31 March
2014
31 March
2013
Shareholders funds
Share capital
Minority interest
Reserves and surplus
Total
2976.19
2426.19
621.49
398.90
9270.72
7458.74
12868.40
10,283.83
Non-current liabilities
Long term borrowings
3048.50
1,045.94
371.33
325.81
Long-term provisions
309.45
486.43
3728.28
1,858.18
Total
Current liabilities
Short-term borrowings
8847.99
9,328.85
Trade payables
8195.24
10,554.50
4000.33
3,650.44
81.29
121.39
21124.85
23,655.18
37720.53
35,797.19
Short-term provisions
Total
11
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Fixed Assets
During the year, the company increased its gross asset base
by 1498 lakhs, primarily driven by purchase of computer and
related
equipments,
leasehold
improvements
and
capitalization of new products developed by Accel.
2)
Board of Directors
a)
i)
Executive Directors
ii)
Non-Executive Directors
Independent
Alok Sharma
Sam (S) Santhosh
R. Ramaraj
Non Independent
These include income tax related balances and prepaid expenses. The
increase in other current assets balances as at 31 March 2014 were
due to increase in prepaid expenses and TDS receivables.
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.
No of shares
3,72,500
12
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Category as at
10-06-2014
No. of Board
meetings
Attended Out
of 09 Meetings
Held as on 1006-2014
Attendance
At the
last AGM
held On
12.08.2013
Committee/s position
as on 10-06-2014 (All
companies excluding
Accel Frontline
Limited)
Member
Chairman
N.R. Panicker
Executive Chairman
09
Yes
05
01
01
05
Yes
Nil
Nil
Nil
Non-Executive Non
Independent Director
07
Yes
07
00
Alok Sharma
Non-Executive
Independent Director
07
No
01
00
00
Non-Executive
Independent Director
04
Yes
Nil
Nil
Nil
R.Ramaraj
Non-Executive
Independent Director
09
Yes
05
01
Malcolm F Mehta
Executive Director
02
No
Nil
Nil
Nil
d)
The AFL Board plays a pivotal role in ensuring good governance. Its style of functioning is democratic. The Members of the Board have
always had complete freedom to express their opinion and decisions are taken on the basis of a consensus arrived at after detailed
discussion. The members are also free to bring up any matter for discussion at the Board Meetings with the permission of the Chairman.
The Boards role, functions, responsibility and accountability are clearly defined. In addition to its primary role of setting
corporate goals and monitoring corporate performance, it directs long term sustainable growth that translates itself into
progress, prosperity and the fulfillment of stakeholders aspirations, is accomplished. It also sets standards of corporate
behavior and ensures ethical behavior at all times and strict compliance with laws and regulations.
The items placed at the Meetings of the Board include the following:
13
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Details of Board Meetings held upto 10-06-2014 and the again on 31st October 2012 with the terms of reference as specified
in clause 49 of the listing agreement with the stock exchanges
number of Directors present
and also fully confirms to the requirements of section 292A of the
Companies Act, 1956 and other applicable provisions of
Dates on which the
No. of
companies act 2013. It addresses itself, to matters pertaining to
Total strength
Sr.No.
Board Meetings
Directors
adequacy of internal controls, reliability of financial
of the Board
were held
Present
statements/others management information, adequacy of
provisions for liabilities, and whether the audit tests are
1.
29.05.2013
06
05
appropriate and scientifically carried out and that they were
2.
12.08.2013
06
05
aligned with the realities of the business, adequacy of disclosures,
3.
12.11.2013
06
04
compliance with all relevant statues and other facets of the
companys operations that are of vital concern to the company.
4.
09.12.2013
06
05
f)
5.
08.01.2014
06
05
6.
18.01.2014
06
04
7.
14.02.2014
06
04
8.
07-05-2014
06
06
10-06-2014
06
04
Capacity
Mr.R. Ramaraj
Non Executive
Independent
Chairman
Non Executive
Independent
Member
Non Executive
Independent
Member
Audit Committee
The dates on which the Audit Committee Meetings were held and the attendance of the Members at the said meetings are as under:
Sr. No
Date of
Meeting
Attendance record of
the members R.Ramaraj
(Appointed as Chairman
with effect from
31.10.2012
01
29.05.2013
Yes
Yes
Yes
No
02
12.08.2013
Yes
Yes
Yes
No
03
12.11.2013
Yes
No
Yes
No
04
14.02.2014
Yes
Yes
Yes
No
05
07.05.2014
Yes
Yes
Yes
No
Category
Capacity
Non Executive
Independent
Chairman
Mr.R. Ramaraj
Non Executive
Independent
Member
Non Executive
Independent
Member
14
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
The dates on which the Stakeholders Relationship committee meetings were held and the attendance of the Members at the
said meetings are as under:
Attendance record of the Members
*Amba Preetham
Parigi (Appointed
as Chairman
with effect from
29.05.2013
R.Ramaraj
(appointed as
Member with effect
from 29.05.2013
Sam (S)Santhosh
( appointed as a
Member with effect
from 07-05-2014
Sr.
No
Dates of Meeting
01
29.05.2013
Yes
Yes
No
No
02
12.08.2013
Yes
Yes
No
No
03
12.11.2013
No
Yes
Yes
No
04
14.02.2014
Yes
Yes
Yes
No
05
07.05.2014
No
Yes
Yes
yes
1.
2.
3.
Remuneration Policy:
The committee has the powers to determine and recommend to
the Board the amount of remuneration, including performancelinked bonus and perquisites , payable to the Managing Director
and Whole-Time Directors. In terms of guidelines the company
ensures that the remuneration payable to the Executive Directors
by way of salary including other allowances and monetary value of
perquisites should be within the overall limit as stipulated under
the companies Act 1956 and Companies Act 2013 and approved
by the shareholders. The remuneration structure of the Managing
Category
Capacity
Non Executive
Independent
Chairman
Non Executive
Independent
Member
15
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
N.R. Panicker,
Executive Chairman
Salary
4,588,220
Perquisites
1,950,000
Commission
621,878
7,160,098
Subsidiary Companies
c)
6.
5.
Year
Location
Code of Conduct
7.
Insider Trading:
8.
Disclosures
16
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Audit Qualifications.
There are no Audit qualifications in the financial statements of
the company for the year 2013-2014
Whistle blower policy:
The company has a whistle blower policy. This policy is to enable
employees to report to the management their concerns about
unethical behaviour, actual or suspected fraud or violation of
companys code of conduct of ethics policy. This mechanism
provided safeguards against victimization of employees, who avail
of the mechanism. This also provides for direct access to the
Chairman of the Audit committee in exceptional cases. The same
has put on the companys website www.accelfrontline.in.
c) Risk management
Business risk evaluation and management is on ongoing
process within the Organization. During the period under
review an exercise on Business Risk Management (BRM) was
carried out covering the entire gamut of business operations
and the Board was informed about the same.
d) Details of non- compliance by the company, penalties etc
No strictures/penalties have been imposed on the Company
by the Stock Exchanges or the Securities and Exchange
Board of India (SEBI) or any statutory authority on any matters
related to capital markets after the listing of shares on 30th
October 2006 to 31st March, 2014.
e) Mandatory and Non mandatory requirements
The Company has complied with all the applicable mandatory
requirements as provided in Revised clause 49 of the Listing
Agreement entered into with the stock Exchanges where
companys shares are listed.
The extent of implementation of the non- mandatory
requirements are as under:
The Board:
The requirement regarding the non executive is not applicable ,
since the chairman of the company is the executive chairman.
Remuneration Committee
The company has a Nomination and Remuneration committee
meeting the requirements of the Clause 49 of the Listing
Agreement and the Companies Act 2013. A detailed note on
this committee is provided in the annual report.
Shareholder right
The company is yet to comply with the same.
9.
Means of Communication
The unaudited quarterly / half yearly results are announced within forty
five days from the end of the quarter as stipulated under the Listing
Agreement with the Stock Exchanges. The aforesaid financial results
are taken on record by the Board of Directors and are communicated
to the Stock Exchanges where the Companys securities are listed.
Once the Stock Exchange has been intimated, these results are
published in two leading daily newspapers.
17
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
b) Financial Year
Nature of queries
Received Redressed
Pending
Issue of Duplicate
Dividend Warrants
Total
0
0
0
0
0
26493951
Non-Promoters
Total
3267922
10.98
100.00
September 2015
c)
d)
532774
89.02
29761873
Promoters
Category
April to March
The Company has also paid the annual custody fee for the year 20142015 to both the Depositories namely National Securities Depository
Limited (NSDL) and Central Depository Limited (CDSL).
Date
Time
11.00 A.M
Venue
Details of shareholding in Demat suspense Account titled Accel Frontline Limited opened for shares lying unclaimed in the
Escrow Account.
Aggregate No. of
shareholders and the
outstanding shares in the
suspense account lying at
the beginning of the year
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
nil
nil
18
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
e)
Category
Category of shareholder
code
(I)
(Ii)
(A)
[1]
[2]
(B)
[1]
[2]
Number
Total
of
number of
ShareShares
holders
(III)
Total Shareholding
as a percentage
of total number of
shares
As a
As a per- percentcentage
age of
of (A+B)
(A+B+C)
Number
of Shares
held in
dematerialized
form
(VII)
Number
of shares
As a percentage (IX) =
(VIII)
(VIII)/(IV)*100
(IV)
(V)
372500
372500
1.25
1.25
1
0
0
2
7797191
0
0
8169691
7797191
0
0
8169691
26.2
0
0
27.45
26.2 3200000
0
0
0
0
27.45 3200000
41.04
0
0
39.17
18324260 18324260
0
0
0
0
0
0
0
0
18324260 18324260
26493951 26493951
61.57
0
0
0
0
61.57
89.02
2
0
0
0
0
2
4
(VI)
61.57
0
0
0
0
0
0
0
0
0
61.57
0
89.02 3200000
0
0
0
0
0
0
12.08
0
1
0
229971
0
229971
0
0.77
0
0.77
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
229971
0
0
0
0
0
0
229971
0
0
0
0
0
0
0.77
0
0
0
0
0
0
0.77
0
0
0
0
0
0
0
0
0
0
0
0
0
0
107
156782
156782
0.53
0.53
5553
1527835
1451428
5.13
5.13
31
1060322
1026322
3.56
3.56
0
0
42
0
32
6
0
0
0
18585
0
257846
16481
0
0
0
18585
0
252496
16481
0
0
0
0.06
0
0.87
0.06
0
0
0
0.06
0
0.87
0.06
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
19
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
(C)
f)
0
0
1
5772
5773
5777
0
0
0
0
100
100
3037951 2922194
3267922 3152165
29761873 29646116
0
0
0
10.21
10.98
100
0
0
0
0
0
0
10.21
0
10.98
0
100 3200000
0
0
0
0
0
10.75
0
0
0
5777
0
0
0
0
0
0
29761873 29646116
0
0
0
100
0
0
0
0
0
0
100 3200000
0
0
0
10.75
Market Price
h)
BSE
Month
NSE
High
Low
High
Low
April 2013
35.30
24.80
38.00
24.35
May 2013
30.50
24.40
31.00
24.30
June 2013
28.50
19.80
26.00
21.45
July 2013
26.95
19.50
25.95
19.40
August 2013
24.70
18.95
23.10
18.75
September 2013
24.00
17.65
24.00
17.60
October 2013
33.30
18.00
31.00
18.35
November 2013
37.50
26.55
38.50
26.10
December 2013
43.95
33.40
44.00
33.05
January 2014
44.95
43.10
45.00
43.10
February 2014
47.60
43.60
47.70
43.05
March 2014
46.70
41.00
46.85
40.50
g)
Distribution of Shareholding
Share or
Debenture
holding of
nominal value
Share/ Debenture
Holders
Rs.
Number % to total
Share/ Debenture
Amount
Rs.
% to total
(1)
(2)
(3)
(4)
(5)
Upto 5000
5316
90.13
6553390
2.20
5001-10000
275
4.66
2314330
0.78
10001-20000
129
2.19
2034060
0.68
20001-30000
61
1.03
1591900
0.53
30001-40000
18
0.31
640410
0.22
40001-50000
20
0.34
953760
0.32
50001-100000
31
0.53
2263440
0.76
100001 and
above
47
0.81
281267440
94.51
Total
5897
100.00
297618730
100.00
Company
k)
Share Transfer
As per the provisions of the amended Companies Act, 1956, facility for
making nomination is available for shareholders in respect of
20
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
2.
3.
4.
N.R.Panicker
Executive Chairman
1.
a)
b)
2.
3.
4.
a)
b)
c)
S.Kalyanaraman
Partner (M. No. 200565)
N.R. Panicker
Executive Chairman
K.R.Chandrasekaran
Chief Finance Officer
Date: 07/05/2014
Place: Chennai
21
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Accel
Network
Systems &
Accel
Technologies Frontline Programs
Pte Ltd.,
JLT, Dubai (Japan)
Inc. USA
Singapore
Network
Programs
(USA) Inc.
USA
Accel IT
Accel Japan
KK, Japan
Accel North
America, Inc
Accel
Technologies
Ltd. UK
31.03.2014
31.03.2014
31.03.2014
31.03.2014
212 shares
of 50,000
JPY each.
655,000
shares of USD
1 each.
10,000 shares
of GBP.1 each
30,000,000
shares of
Rs.10 each
100%
100%
100%
100%
JPY
(8,027,774)
INR
(4,847,084)
JPY
(6,356,882)
INR
(4,178,379)
USD
(256,848)
INR
(15,538,325Z)
USD
(216,336)
INR
(11,750,090)
GBP.
(26,006)
INR
(2,502,664)
GBP
(52,374)
INR
(4,495,949)
INR
(6,897,422)
INR
(6,897,422)
INR
(8,894,068)
INR
(8,894,068)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Resources
Limited,
India
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.
Particulars
Accel
Systems &
Technologies
Pte Ltd.,
Singapore
Accel
Frontline
JLT, Dubai
110,075,700
4,879,530
16,757,990
60,857,218
Network
Programs
(USA) Inc.
USA
9,014,970
3,004,990
16,985,904
Accel IT
Accel
Technologies
Ltd, UK
39,365,369
Resources
Limited,
India
1,947,071
30,000,000
(7,826,238) (33,346,021)
10,809,523
34,806,656
27,022,055
108,367,118
887,527
45,845,124
223,171,718 112,497,501
3,348,866
51,198,963
34,794,654
99,032,165
6,766,694
49,191,146
509,840,274 533,844,366
Accel North
Accel Japan America, Inc,
KK. Japan
USA
350,005,407 178,234,250
Turnover
Network
Programs
(Japan) Inc.
USA
23,651,603
61,975,922
303,448,706
7,741,793
38,621,932
(4,158,736)
(4,847,084) (15,538,325)
(2,502,664)
(6,897,421)
24,934,739
31,429,702
1,977,000
22,957,739
31,429,702
47.45
16.50
60.50
60.50
47.86
16.27
60.10
60.10
(4,158,736)
(4,847,084) (15,538,325)
(2,502,664)
(6,897,421)
0.60
60.50
96.23
1.00
0.59
60.10
99.85
1.00
Exchange rate
a. P&L items average rate
b. Balance sheet items closing
rate
22
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Opinion
In our opinion and to the best of our information and according to
the explanations given to us, the consolidated financial
statements give the information required by the Act in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
Auditors Responsibility
Our responsibility is to express an opinion on these consolidated
financial statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants of India. Those Standards require that we
comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial
statements are free from material misstatement.
Place : Chennai - 16
Date : May 7, 2014
(S.Kalyanaraman)
Partner
(M No: 200565)
23
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
2.1
2,976
2,426
621
399
2.2
9,271
7,459
12,868
10,284
2.3
3,048
1,046
2.4
371
326
Long-term provisions
2.5
309
486
3,728
1,858
Current liabilities
Short-term borrowings
2.6
8,848
9,329
Trade payables
2.7
8,195
10,555
2.8
4,000
3,650
Short-term provisions
2.9
81
121
21,124
23,655
37,720
35,797
2,453
2,425
2,448
2,220
4,901
4,645
20
59
1,311
1,308
TOTAL
Assets
Non-current assets
Fixed assets
2.10
Capital work-in-progress
Intangible assets on consolidation
Non-current investments
2.11
30
30
2.12
1,155
1,049
2.13
640
804
8,057
7,895
Current assets
Inventories
2.14
4,106
4,387
Trade receivables
2.15
16,658
14,907
2.16
1,937
2,681
2.17
1,448
2,062
2.18
5,514
3,865
29,663
27,902
37,720
35,797
TOTAL
Significant Accounting Policies
Other Notes
24
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Place : Chennai
Date : May 7, 2014
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Statement of consolidated profit and loss account for the year ended
(hs, unless other
Notes
39,786
Continuing operations
Income
Revenue from operations
3.1
42,134
Other income
3.2
517
352
42,651
40,138
3.3
73
168
3.4
17,602
16,795
3.5
214
(410)
3.6
9,394
8,632
Other expenses
3.7
11,301
11,628
38,584
36,813
4,067
3,325
Total (II)
Earnings before interest, tax, depreciation and
amortization (EBITDA) (I) (II)
Depreciation and amortization expense
3.8
1,107
1,068
Finance costs
3.9
2,441
1,995
519
262
78
115
(54)
41
(11)
Deferred tax
46
(2)
70
143
449
119
(1) Basic
1.76
0.49
(2) Diluted
1.76
0.49
Other Notes
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Place : Chennai
Date : May 7, 2014
25
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
262
1,106
1,068
2,441
1,326
4,066
2,656
(2,359)
(328)
Interest expenses
Operating profit before working capital changes
Changes in working capital
Increase/ (decrease) in trade payables
Increase / (decrease) in long-term provisions
(132)
163
(110)
(390)
350
707
636
(1,588)
2,066
280
(411)
(734)
10
1,242
(1,011)
(1,648)
(426)
(4,063)
3
380
3,036
(1,459)
(1,203)
154
(1,305)
5
(1,198)
550
223
81
884
595
(2,441)
(1,326)
1925
1141
364
(286)
(161)
1,552
Effect of exchange differences on cash & cash equivalents held in foreign currency
(583)
(42)
2,681
1,937
1,171
2,681
16
29
1,145
1,920
769
724
7
1,937
8
2,681
- on deposit account
- unpaid dividend accounts*
Total cash and cash equivalents
Summary of significant accounting policies
* The company can utilize these balances only towards settlement of the respective unpaid dividend, unpaid matured deposits and unpaid
matured debenture liabilities.
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Place : Chennai
Date : May 7, 2014
26
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Name
Holding
Country of incorporation/
origin
51%
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
1.02 Statement of significant accounting policies
Rate of depreciation /
amortization (%)
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.
All assets and liabilities have been classified as current or noncurrent as per the companys normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act,
1956. Based on the nature of products and time between the
acquisition of assets for processing and their realization in cash
and cash equivalents, the company has ascertained its operating
cycle as 12 months for the purpose of current or non-current
classification of assets and liabilities.
Intangible assets
Use of estimates
The preparation of financial statements requires management to
make certain estimates and assumptions that affects the reported
27
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Rates (SLM)
Goodwill
Brands/trademarks
Patents and intellectual property rights (IPR)
Technical know how
Computer software
10%
10%
10%
10%
14.30%
(e) Investments
Investments, which are readily realizable and intended to be
held for not more than one year from the date on which such
investments are made, are classified as current investments.
All other investments are classified as non current long-term
investments.
On initial recognition, all investments are measured at cost. The
cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees and duties. If an investment is
acquired, or partly acquired, by the issue of shares or other
securities, the acquisition cost is the fair value of the securities
issued. If an investment is acquired in exchange for another
asset, the acquisition is determined by reference to the fair value
of the asset given up or by reference to the fair value of the
investment acquired, whichever is more clearly evident.
Current investments are carried in the financial statements at
lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost.
However, provision for diminution in value is made to recognize a
decline other than temporary in the value of the investments.
(c) Leases
(f) Inventories
28
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
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.
(j)
Taxation
Provision for income tax is made for both current and deferred
taxes. Provision for current income tax is made at current tax
rates based on assessable income.
Minimum alternate tax (MAT) paid in a year is charged to the
statement of profit and loss as current tax. The company recognizes
MAT credit available as an asset only to the extent that there is
convincing evidence that the company will pay normal income tax
during the specific period, i.e., the period for which MAT credit is
allowed to be carried forward. In the year in which the company
recognizes MAT credit as an asset in accordance with the Guidance
Note on Accounting for Credit Available in respect of Minimum
Alternative Tax under the Income tax Act 1961, the said asset is
created by way of credit to the statement of profit and loss and
29
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
(l)
Impairment
i.
ii.
(m) Provisions
(o)
Amalgamation accounting
3,300
3,300
2,976
2,426
Total
2,976
2,426
Authorised Capital
33,000,000 (March 31, 2013: 33,000,000) equity shares of 10/- each
Issued, Subscribed & Paid up
30
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period:As at March 31, 2014
Equity Shares
Number
2.1.2
Number
Amount
24,261,873
2,426.19
24,261,873
2,426.19
5,500,000
550.00
Amount
29,761,873
2,976.19
24,261,873
2,426.19
The Company has one class of equity shares having a par value of Rs.10 per share. Each share holder is eligible for one vote
per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company
after distribution of all preferential amounts in proportion to their share holding. During the year the company has issued
5,500,000 equity shares on preferential basis to M/s CAC Holdings Corporation ( Formerly CAC Corporation ), upon the
approval from the shareholders of the company in its EGM held on 08.01.2014 and the shares were issued on 10.01.2014
2.1.3
Equity Shares
18,141,175
7,797,191
14,550,166
372,500
1,072,500
183,085
483,085
2.1.4
Sr No
Details of shares held by shareholders holding more than 5% of the aggregate shares in the company:-
Name of Shareholder
Accel Limited
% of Holding
% of Holding
18,141,175
60.95%
0.00%
7,797,191
26.20%
14,550,166
59.97%
N. R. Panicker
372,500
1.25%
1,072,500
4.42%
183,085
0.62%
483,085
1.99%
0.00%
1,377,178
5.68%
42
27
15
562
(520)
42
4,932
4,932
1,925
6,857
4,932
859
859
C.General Reserve
859
859
31
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
1,626
1,507
449
119
2,075
1,626
9,271
7,459
Total appropriations
Balance as at the end of the year
Total
2.3 Long term borrowings
Secured
Term loan from banks (refer note 2.3.1)
Term loan from financial institutions
Hire purchase/hypothecation loans (refer note 2.3.2)
Loan against keyman insurance policy (refer note 2.3.3)
1,530
400
473
44
80
108
93
1,366
Total
3,048
1,046
2.3.1 The term loan from a bank is secured by a pari passu charge by way of hypothecation of current assets and the moveable
assets of the company and personal guarantee of the Executive Chairman and Shares held by promoter company and the
immoveable property owned by the Executive Chairman and his personal guarantee in the case of another bank.The loan
carries an interest rate of 14.50%( SBI) & 13.50% (DLB) per annum.The loan is repayable over a period of three & Five years
(including current maturities) in the below mentioned repayment pattern
Year >> Repayment in Rs. Lacs
Dhanlaxmi Bank
2014-15
25.00*4
1000*1 + 25.00*3
13.33 *12
2015-16
60.00*4
84.50*4
13.33 *12
2016-17
71.25*4
13.33 *12
2017-18
13.33 *12
2018-19
13.33 *7
2.3.2 The loans have been availed for acquiring certain business 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 lenders.
2.3.3 This loan is availed from Life Insurance Corporation of India and is secured against the keyman insurance policy taken and placed
with them, which is fully paid up except the interest.
2.3.4 During the year as per the share holder aggrement, the promoter company Accel Limited has lent Rs. 1,366 lakhs to the company
for a period of 5 years at an interest rate of 11% p.a.
(155)
(179)
526
505
371
326
32
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
235
378
74
108
309
486
The Provision for Gratuity and Leave Encashment are based on information certified by an independent actuary and
relied upon by the auditors
2.6. Short term borrowings
Secured
Cash credit facility from banks (refer note 2.6.1)
8,748
8,829
100
500
8,848
9,329
2.6.1 Nature of Security and terms of repayment for short term secured borrowings
Type of Borrowing Nature Of Security
Cash credit facility
from banks Repayable on
Demand
Interest Rate
SBI- First Charge on Pari Pasu basis on all the current assets & Moveable assets of the
company, including Book debts and Inventories. First and exclusive charge on the Properties
owned by promoter Company , Accel Limited. Personal Guarantee of The Executive
Chairman & Corporate guarantee of Accel Limited.
SBI - 14.50%
IDBI - 14% & 16%
AXIS - 13.50%
DLB - 13.50%
IDBI - Pari Pasu Charge on all the current assets & Moveable assets of the company,
including Book debts and Inventories. Personal Guarantee of The Executive Chairman &
Corporate guarantee of Accel Limited.
AXIS Bank - Pari Pasu Charge on all the current assets & Moveable assets of the company,
including Book debts and Inventories.
Dhanlaxmi Bank - Pari Pasu Charge on all the current assets & Moveable assets of the
company, including Book debts and Inventories. Mortgage of the residential property of the
Executive Chairman. Personal Guarantee of The Executive Chairman and pledge of 20 Lakh
shares of the company held by the promoter Company Accel Limited & Corporate guarantee
of Accel Limited.
2.6.2 This loan is secured by way of pledge against 12 lakhs equity shares of the company and held by the promoter company
M/s.Accel Limited
2.7. Trade Payables
Outstanding dues to trade creditors
Advances form customers
Advances refundable
Total
8,129
10,513
66
42
8,195
10,555
33
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
34
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Sl No
Particulars
Cost as at
Apr 01,2013
Depreciation
Deletion/
Adjustment
Addition
As at
Mar 31,2014
As at
Apr 01,2013
Deletion/
Adjustments
Office Equipment
Computers
Leasehold improvements
Vehicles
Buildings
Exchange Adjustment
341
15
16
340
115
17
15
(330)
(12)
(1)
(341)
(97)
(18)
(0)
1,893
625
225
2,294
839
337
223
(1,541)
(513)
(161)
(1,893)
(703)
(293)
(158)
590
13
24
579
291
45
15
(574)
(31)
(15)
(590)
(261)
(41)
(12)
313
319
107
18
(279)
(35)
(0)
(313)
(90)
(17)
(0)
648
39
617
302
98
38
(816)
(100)
(268)
(648)
(460)
(114)
(271)
251
49
29
271
94
27
17
(275)
(24)
(251)
(90)
(23)
(19)
9
120
138
(18)
(120)
(120)
(1)
(6)
4,156
718
474
4,401
1,754
543
320
(3,935)
(691)
(469)
(4,156)
(1,702)
(512)
(460)
22
35
(0)
13
(8)
22
(16)
(0)
4,179
718
474
4,436
1,753
556
320
(3,926)
(691)
(469)
(4,179)
(1,686)
(512)
(460)
1,609
1,609
218
187
(2,299)
(690)
(1,609)
(747)
(161)
(690)
10
Goodwill
Computer Software
2,607
779
3,386
1,830
355
(2,366)
(432)
(191)
(2,607)
(1,661)
(360)
(191)
(0)
172
172
120
(172)
(172)
(86)
(34)
4,387
779
5,167
2,168
550
(4,837)
(432)
(881)
(4,387)
(2,494)
(555)
(881)
8,566
1,498
474
9,603
3,921
1,107
320
(8,763)
(1,123)
(1,350)
(8,566)
(4,180)
(1,068)
(1,342)
(a) Current maturities of long-term debt:Term Loans from banks (Refer Note No.2.3.1)
Term Loans from financial institutions
Hire purchase/hypothecation loans (Refer note no.2.3.2)
(b) Unearned service revenue
(c) Unpaid dividends
78
130
84
341
247
7
1,457
1,288
1,477
Total
4,000
3,650
2.11
300
999
2.9
1,235
81
62
59
81
121
30
30
30
30
2.12
351
326
Rental Deposit
684
628
Total
120
95
1,155
1,049
640
804
Considered doubtful
121
89
2.14
Security Deposits
2.13
Inventories
Raw materials and components
Finished goods
761
893
(121)
(89)
640
804
82
158
371
562
Traded goods
1,223
1,296
2,430
2,371
Total
4,106
4,387
35
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Trade Receivables
Trade receivables
Other receivables
Total
14,332
13,606
2,326
1,301
16,658
14,907
16
29
1,145
1,920
1,168
1,921
769
724
1,937
2,681
152
980
Other deposits
521
244
775
838
1,448
2,062
Total
3,832
2,820
55
Prepaid expenses
1,627
1,046
Total
5,514
3,865
2.18.1 Advance income tax represents tax deducted at source by customers out of the income net of tax provisions.
Assessments and Appeals are pending and the amounts are expected to be received/adjusted after the income tax
assessments/appeal proceedings are completed by the income tax authorities.
3. Notes to the Statement of Profit and Loss for the year ended
(hs, unless other
3.1.
March 31,2014
March 31,2013
Traded goods
21,287
18,235
Sale of services
20,875
21,391
189
42,162
39,824
28
38
42,134
39,786
36
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
3. Notes to the Statement of Profit and Loss for the year ended
(hs, unless other
3.2.
Other income
March 31,2014
March 31,2013
Interest income on
Bank deposits
Others
50
262
466
40
Total
517
352
March 31,2014
March 31,2013
154
157
165
154
322
81
154
73
168
3.5.
51
March 31,2014
March 31,2013
17,602
16,795
Total
17,602
16,795
March 31,2014
March 31,2013
Traded goods
2,431
2,441
Spares
1,223
1,295
(Increase)/decrease in inventories
Inventories at the end of the year
Finished goods
371
496
4,025
4,232
Traded goods
2,371
2,232
Spares
1,295
1,199
573
391
4,239
3,822
214
(410)
March 31,2014
March 31,2013
8,922
7,843
401
445
Gratuity expense
(56)
159
Leave encashment
(34)
13
161
172
9,394
8,632
Total
Finished goods
Total
Net (Increase) / decrease in Inventory
3.6.
Total
37
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
3. Notes to the Statement of Profit and Loss for the year ended
(hs, unless other
Disclosure required under AS 15 (Revised) Employee
Benefits i. DEFINED CONTRIBUTION PLAN
Defined Contribution Plan, recognized as expenses for the year as under:
Particulars
March 31,2014
March 31,2013
248.66
284.93
67.18
60.83
March 31,2014
March 31,2013
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 31,2014
March 31,2013
1,178.02
930.84
78.48
417.87
Interest Cost
99.62
92.77
Actuarial (gain)/loss
(535.35)
(188.45)
Benefits Paid
(144.96)
(75.01)
675.81
1,178.02
March 31,2014
March 31,2013
675.81
1,178.02
164.38
216.33
511.43
961.69
March 31,2014
March 31,2013
78.48
417.87
99.62
92.77
(16.40)
(21.50)
(535.35)
(188.44)
(55.96)
158.56
The above disclosures are based on information certified by an independent actuary, and relied on by the auditors
38
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
3. Notes to the Statement of Profit and Loss for the year ended
(hs, unless other
iii. LONG TERM EMPLOYEE BENEFITS
Compensated absences (Leave encashment) Unfunded Obligation
March 31,2014
March 31,2013
8.00%
8.00%
5.00%
5.00%
24.62
24.62
March 31,2014
March 31,2013
380.89
354.11
643.13
610.11
Interest Cost
Actuarial (gain)/loss
Benefits Paid
Present Value of Obligation at the end of the year
56.68
52.28
(890.21)
(635.61)
190.49
380.89
March 31,2014
March 31,2013
190.49
380.89
190.49
380.89
March 31,2014
March 31,2013
643.13
610.11
56.68
52.28
(890.21)
(635.61)
(190.40)
26.78
The above disclosures are based on information certified by an independent actuary and relied on by the auditors.
3.7.
Other expenses
March 31,2014
March 31,2013
5,512
5,764
Rent
1,238
1,318
275
261
19
28
270
263
95
81
Insurance
144
86
191
268
Communication costs
525
449
39
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
3. Notes to the Statement of Profit and Loss for the year ended
(hs, unless other
March 31,2014
March 31,2013
1,086
1,128
72
105
402
503
586
536
33
27
117
119
18
33
131
257
152
33
41
399
338
11,301
11,628
March 31,2014
March 31,2013
22
21
Limited review
Miscellaneous expenses
Total
Reimbursement of expenses
33
27
March 31,2014
March 31,2013
556
512
551
556
1,107
1,068
March 31,2014
March 31,2013
2,024
1,637
412
351
Total
3.8.
Total
3.9.
Finance costs
Interest
Bank charges & Commission
Exchange Fluctuation in Foreign exchange
Total
2,441
1,995
40
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
b)
2014
8,740,588
584,433
103,707,400
2,431,495
257,960,823
18,417,730
2013
6,071,815
4,428,905
123,884,050
297,344,600
-
22,233,262
21,952,808
As per clause no.10.7. of the agreement for the sale of the outsourcing
division of the company, dated 15th March, 2011, in the unlikely event
of the business getting reduced by the Group companies, the company
agrees to indemnify the purchaser an amount equivalent to the short
fall in the yearly minimum service charges of Rs.1.25 crores as
mentioned in clause no.10.5 of the said agreement. The shortfall
amount would be paid back to the purchaser at the end of each
subsequent financial year. If the short fall is not made good in the next
financial year the company has the right to adjust any such refunds on
any time before 31st March, 2016.
41
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Year Ended
Revenue
Segment Result
Unallocable Expenses ( Net)
Operating Income
Other Income ( Net )
Interest Expense
Profit before tax
Tax Expense
Profit before minority interest
Profit for the Year
Segment Assets
Unallocable assets
Total assets
Segment Liabilities
Unallocable liabilities
Total liabilities
SI
IMS
SS
Mar/14
22,318
9,318
7,438
2,977
WMS Training
Mar/13
18,756
10,698
6,340
Mar/14
762
1,611
1,178
Mar/13
216
2,178
854
Others
Total
359
42,411
3,501
491
39,786
243
(16)
3,778
489
(5)
3,733
Mar/14
1,106
Mar/13
1,067
Mar/14
2,672
Mar/13
2,666
Mar/14
260
Mar/13
(408)
Mar/14
2,413
Mar/13
1,995
Mar/14
519
Mar/13
263
Mar/14
70
Mar/13
144
Mar/14
449
Mar/13
119
Mar/14
449
Mar/13
119
Mar/14
14,234
8,585
4,222
2,672
615
Mar/13
12,744
8,342
5,118
2,514
587
30,328
29,305
Mar/14
7,393
Mar/13
6,492
7,393
6,492
Mar/14
14,234
8,585
4,222
2,672
615
7,393
37,721
Mar/13
12,744
8,342
5,118
2,514
587
6,492
35,797
Mar/14
8,574
6,149
2,569
1,859
235
Mar/13
9,641
6,146
3,246
2,219
552
19,386
21,805
Mar/14
5,466
5,466
Mar/13
3,708
3,708
Mar/14
8,574
6,149
2,569
1,859
235
5,466
24,852
Mar/13
9,641
6,146
3,246
2,219
552
3,708
25,513
Mar/14
847
16
441
106
50
Other Information
Capital Expenditure
Mar/13
Depreciation & amortization
Mar/14
159
128
609
123
70
Mar/13
Other Significant non Cash Expenses
(allocable )
Mar/14
47
184
24
38
1,498
1,123
1,123
18
1,107
1,068
1,068
257
Mar/13
Other Significant non Cash Expenses
(unallocable )
Mar/14
Mar/13
SI - System Integration
IMS - Infrastructure Management Services
SS - Software Services
WMS - Warranty Management Services
42
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
33
33
193
193
Nature of relationship
Holding Company
Promoter company
Other related parties with whom transactions have taken place during the year:
Name of the Party
Accel Transmatic Limited, Chennai.
Nature of relationship
Associate Comapny
Executive Chairman
Particulars
Sales and other income
Share of Expenses
Purchases
Rent
Remuneration
Interest Paid
Interest Received
Key Management
personnel
7,673,040
9,759,804
3,005,200
5,036,500
-
310,140
4,560,137
5,357,026
1,250,588
3,730,644
8,217,269
-
1,950,000
2,352,500
5,210,098
6,949,092
-
136,600,000
(366,559)
41,460,446
57,570,489
44,405,630
2,083,782
4,333,764
63,878,005
65,628,986
63,878,005
8,202,558
-
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Place : Chennai
Date : May 07, 2014
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
43
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute
of Chartered Accountants of India. Those Standards require that
we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditors judgment,
including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control
relevant to the Companys preparation and fair presentation of the
financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of entitys internal
control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the
accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
2.
Place : Chennai - 16
Date : May 7, 2014
(S.Kalyanaraman)
Partner
(M No: 200565)
44
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
(i)(c) The fixed assets disposed off during the year were not
substantial, According to the information and explanation given to
us; we are of the opinion that the disposal of the fixed assets has
not affected the going concern status of the company.
(e) The company has taken unsecured loan for Rs.13.66/crores from a company which is covered under section 301 of
companies act, 1956.
(f) As per the books of accounts produced to us, the rate of
interest and other terms and conditions of unsecured loan
taken by the company is prima facie not prejudicial to the
interest of the company.
(g) Payment of the interest is regular however principal
repayment is not due in the current year.
(iv) In our opinion and according to the information and
explanations given to us, there are adequate internal control
procedures commensurate with the size of the company and the
Nature of Tax
Amount (Rs.)
Due Since
3,48,940
July 2013
26,78,136
August 2013
45
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Name of the
statute
Nature of Dispute
Amount
(Rs.)
Period to which
the amount
relates
42,418,700
Commissioner of Income
FY 2007-08 tax (Appeals) Chennai
Income Tax
Commissioner of Income
FY 2009-10 tax (Appeals), Chennai
Nil
34,19,240
34,306
Assistant Commissioner
2003-04 Park Street Charge, Kolkata
139,135
Assistant Commissioner
2004-05 Park Street Charge, Kolkata
149,787
In the Assessment order 8% CST charged for nonsubmission of Form C and 4% CST charged on CVT &UPS
sales instead of 1%.
119,115
8,68,281
Deputy Commissioner
2007-08 (appeals)
268,424
Joint Commissioner
2007-08 Park Street Charge, Kolkata
555,061
Joint Commissioner
2007-08 Park Street Charge, Kolkata
100,123
Joint Commissioner
2007-08 Jamshedpur Urban Circle,
Jamshedpur
46
Service Tax
39,283
Joint Commissioner
FY 2009-10 Park Street, Kolkata
1,97,222
19,574
62,50,277
584,433
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
(xv) The company has not given any guarantee for loans taken
by others from bank or financial institutions.
(xvi) According to the records of the company, the company has
Place : Chennai - 16
Date : May 7, 2014
(S.Kalyanaraman)
Partner
(M No: 200565)
availed the term loans and used the same for the intended purpose.
47
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Balance sheet as at
(hs, unless other
Notes
March 31,2014
2.1
2.2
2,976
9,290
12,266
2,426
7,120
9,546
Non-current liabilities
Long-term borrowings
Deferred tax liability
Long-term provisions
2.3
2.4
2.5
3,041
371
251
3,663
1,031
326
369
1,726
Current liabilities
Short-term borrowings
Trade payables
Other current liabilities
Short-term provisions
2.6
2.7
2.8
2.9
8,599
5,770
3,287
82
17,738
33,667
9,131
8,859
2,962
120
21,072
32,344
2,120
2,099
4,219
20
2,498
1,155
595
8,487
1,939
2,212
4,151
60
2,181
959
763
8,114
4,066
13,329
814
1,480
5,491
25,180
33,667
4,313
12,538
1,642
1,974
3,763
24,230
32,344
TOTAL
Assets
Non-current assets
Fixed assets
Tangible assets - Net
Intangible assets - Net
2.10
Capital work-in-progress
Non-current investments
Long-term loans and advances
Long-term Trade receivables
2.11
2.12
2.13
Current assets
Inventories
Trade receivables
Cash and bank balances
Short-term loans and advances
Other current assets
2.14
2.15
2.16
2.17
2.18
TOTAL
Significant Accounting Policies
Notes to the Balance Sheet
Other Notes
1
2
4
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Place : Chennai
Date : May 7, 2014
48
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Notes
Continuing operations
Income
Revenue from operations
Other income
Total revenue (I)
Expenses
March 31,2014
29,680
234
29,914
32,607
315
32,922
3.1
3.2
3.3
72
167
3.4
12,185
14,462
3.5
175
(410)
3.6
3.7
6,135
7,753
26,320
6,101
9,255
29,575
3,594
3,347
Employee benefit
expenses Other expenses
Total (II)
Earnings before interest, tax, depreciation
and amortization (EBITDA) (I) (II)
Depreciation and amortization expense
3.8
972
969
3.9
2,327
295
1,954
424
59
(55)
115
-
41
(10)
46
50
(2)
144
245
280
0.96
0.96
1.15
1.15
Tax expenses
Current tax
MAT credit entitlement
Deferred tax
Total tax expense
Other Notes
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Place : Chennai
Date : May 7, 2014
49
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Place : Chennai
Date : May 7, 2014
50
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
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
1.02 Statement of significant accounting policies
(a) Basis of preparation of financial statements
The financial statements have been prepared and presented in
accordance with generally accepted accounting principles (GAAP)
in India. The company has prepared these financial statements to
comply in all material respects with the accounting standards
notified under the Companies (Accounting Standards) Rule, 2006,
(as amended) and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared on a accrual
basis and under the historical cost convention.
Rate of depreciation /
amortization (%)
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.
All assets and liabilities have been classified as current or noncurrent as per the companys normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act,
1956. Based on the nature of products and time between the
acquisition of assets for processing and their realization in cash
and cash equivalents, the company has ascertained its operating
cycle as 12 months for the purpose of current or non-current
classification of assets and liabilities.
Intangible assets
Use of estimates
The preparation of financial statements requires management to
make certain estimates and assumptions that affects the reported
amounts of assets and liabilities, disclosure of contingent assets
and liabilities on the date of financial statements and the reported
amount of revenues and expenses during the reporting period.
Management believes the estimates are prudent and reasonable.
Future results could differ from these estimates.
51
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
(c) Leases
(f) Inventories
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.
(e) Investments
Investments, which are readily realizable and intended to be
held for not more than one year from the date on which such
investments are made, are classified as current investments.
All other investments are classified as non current long-term
investments.
On initial recognition, all investments are measured at cost. The
cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees and duties. If an investment is
acquired, or partly acquired, by the issue of shares or other
securities, the acquisition cost is the fair value of the securities
issued. If an investment is acquired in exchange for another asset,
the acquisition is determined by reference to the fair value of the
asset given up or by reference to the fair value of the investment
acquired, whichever is more clearly evident.
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.
52
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
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.
(j) Taxation
Provision for income tax is made for both current and deferred
taxes. Provision for current income tax is made at current tax
rates based on assessable income.
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.
Transactions denominated in foreign currencies are recorded at
the exchange rate specified by customs authorities on a monthly
basis. Current assets and liabilities denominated in foreign
currencies are translated at the exchange rate prevailing on the
date of the balance sheet. All exchange differences arising on the
Conversion/ settlement of foreign currency transactions are
accounted for in the profit and loss account, except in the cases
where they relate to the acquisition of fixed assets, in which case
they are adjusted to the cost of the corresponding asset.
(l) Impairment
i. The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on internal/ external
factors. An impairment loss is recognized wherever the carrying
amount of an asset exceed its recoverable amount. The recoverable
amount is the greater of the assets net selling price and value in use.
In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average
cost of capital.
53
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Measurement of EBITDA
3,300
3,300
2,976
2,426
2,976
2,426
Total
2.1.1 Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period:-
Equity Shares
Balance at the beginning of the year
Shares Issued during the year
Shares cancelled during the year
Balance at the end of the year
54
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Name of Shareholder
% of Holding
% of Holding
18,141,175
60.95%
0.00%
Accel Limited
7,797,191
26.20%
14,550,166
59.97%
N.R. Panicker
372,500
1.25%
1,072,500
4.42%
183,085
0.62%
483,085
1.99%
0.00%
1,377,178
5.68%
4,932
1,925
6,857
4,932
4,932
859
-
859
-
859
859
1,329
245
1,049
280
1,574
1,329
9,290
7,120
Total
2.3 Long term borrowings
Term loan from banks (refer note 2.3.1)
Term loan from financial institutions (refer note 2.3.2)
Hire purchase/hypothecation loans (refer note 2.3.2)
Loan against keyman insurance policy (refer note 2.3.3)
Loan from promoters (refer note 2.3.4)
Total
2.3.1 The term loan from one bank is secured by a pari passu charge by way of hypothecation of current assets and the
moveable assets of the company and personal guarantee of the Executive Chairman and Shares held by promoter company
and the immoveable property owned by the Executive Chairman and his personal guarantee in the case of another bank.The
loan carries an interest rate of 14.50%( SBI) & 13.50% (DLB) per annum.The loan is repayable over a period of Three & Five
years (including current maturities) in the below mentioned repayment pattern
Year >> Repayment in Rs. Lacs
Dhanlaxmi Bank
2014-15
25.00*4
1000*1 + 25.00*3
13.33 *12
2015-16
60.00*4
84.50*4
13.33 *12
2016-17
71.25*4
13.33 *12
2017-18
13.33 *12
2018-19
13.33 *7
55
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
(155)
(179)
526
505
371
326
177
74
251
263
106
369
2.5.1 The non-current portion of Provision for Gratuity and Leave benefits are based on information certified by an
independent actuary and relied upon by the auditors
2.6. Short term borrowings
Secured
Cash credit facility from banks (refer note 2.6.1)
Working capital demand Loan from Banks
Unsecured
Inter corporate deposits (refer note 2.6.2)
Total
7,283
1,216
8,631
100
8,599
500
9,131
2.6.1. Nature of security and terms of repayment for short term secured borrowings
Nature of security
Type of Borrowing
SBI- First Charge on Pari Pasu basis on all the current assets & Moveable assets of the
company, including Book debts and Inventories. First and exclusive charge on the
Properties owned by promoter Company , Accel Limited. Personal Guarantee of The
Executive Chairman & Corporate guarantee of Accel Limited.
Interest Rate
SBI - 14.50%
IDBI - 14% & 16%
AXIS - 13.50%
DLB - 13.50%
IDBI - Pari Pasu Charge on all the current assets & Moveable assets of the company,
including Book debts and Inventories. Personal Guarantee of The Executive Chairman &
Corporate guarantee of Accel Limited.
AXIS Bank - Pari Pasu Charge on all the current assets & Moveable assets of the
company, including Book debts and Inventories.
Dhanlaxmi Bank - Pari Pasu Charge on all the current assets & Moveable assets of
the company, including Book debts and Inventories. Hypothecation of the residential
propery of the Executive Chairman. Personal Guarantee of The Executive Chairman and
pledge of 20 Lakh shares of the company held by the promoter Company Accel Limited
& Corporate guarantee of Accel Limited.
2.6.2 This loan is secured by way of pledge against 12 lakhs equity shares of the company and held by the promoter company
M/s.Accel Limited
56
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
1,235
130
341
7
636
938
3,287
300
78
84
247
7
1,252
994
2,962
57
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
ance sheet
(hs, unless other
2.10 Fixed Assets
Gross Block At Cost
Sl No
Particulars
Cost as at
Apr 01,2013
Depreciation
Deletion/
Adjustment
Addition
As at Mar
31,2014
As at Apr
01,2013
Deletion/
Adjustments
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
1
2
3
4
5
6
Office Equipment
Computers
Furniture and Fixtures
Plant and machinery
Leasehold improvements
Vehicles
318
13
15
316
109
15
15
(309)
(10)
(1)
(318)
(93)
(17)
(0)
1,544
580
225
1,899
574
285
217
(1,208)
(488)
(152)
(1,544)
(491)
(235)
(152)
318
10
312
200
20
10
(320)
(7)
(9)
(318)
(189)
(20)
(9)
261
262
88
13
(230)
(31)
(0)
(261)
(76)
(12)
(0)
635
38
603
295
96
38
(803)
(100)
(268)
(635)
(455)
(111)
(271)
216
38
17
237
87
23
13
(240)
(24)
(216)
(85)
(21)
(19)
3,292
645
307
3,629
1,353
452
296
(3,111)
(636)
(454)
(3,292)
(1,388)
(417)
(452)
1,609
1,609
218
187
(1,659)
(50)
(1,609)
(107)
(161)
(50)
Goodwill
Computer Software
Copy Rights/Technical Knowhow
2,584
407
2,991
1,814
325
(2,343)
(432)
(191)
(2,584)
(1,649)
(357)
(191)
0
172
172
120
(172)
(172)
(86)
(34)
4,365
407
4,772
2,152
520
(4,173)
(432)
(241)
(4,364)
(1,842)
(552)
(241)
7,657
1,052
307
8,401
3,505
972
296
(7,284)
(1,068)
(695)
(7,657)
(3,230)
(969)
(693)
58
2
.
N
o
t
e
s
t
o
t
h
e
b
a
l
775
775
120
120
118
118
224
224
51
51
373
64
790
790
17
30
30
2,498
2,181
119
1,155
As at March 31, 2014
595
93
959
As at March 31, 2013
763
121
716
89
852
(121)
595
(89)
763
2,431
4,066
2,371
4,313
59
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
2,004
13,329
1,050
12,538
14
109
936
7
124
7
957
690
814
685
1,642
523
1,480
560
1,974
3,816
54
2,784
-
Prepaid expenses
Total
1,621
5,491
979
3,763
2.18.1 Advance income tax represents tax deducted at source by customers out of the income net of tax provisions.
Assessments and Appeals are pending and the amounts are expected to be received/adjusted after the income tax
assessments/appeal proceedings are completed by the income tax authorities.
3. Notes to the Statement of Profit and Loss account for year ended
(hs, unless other
3.1 Revenue from operations
March 31,2014
March 31,2013
Traded goods
Sale of services
Other operating revenue
Scrap sales
Other
Revenue from operations (gross)
13,070
16,638
15,252
17,203
(0)
29,708
9
181
32,645
28
29,680
38
32,607
March 31,2014
March 31,2013
50
238
234
234
27
315
60
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
3. Notes to the Statement of Profit and Loss account for year ended
(hs, unless other
3.3. Cost of raw material and components consumed
Inventory at the beginning of the year
March 31,2014
154
March 31,2013
157
154
165
322
82
72
155
167
March 31,2014
March 31,2013
12,185
12,185
14,462
14,462
March 31,2014
March 31,2013
2,431
1,223
2,371
1,295
Stock in Trade
Total
Inventories at the beginning of the year
Stores and spares
Traded goods
330
3,984
493
4,159
2,371
1,295
2,162
1,199
Stock in Trade
Total
493
4,159
388
3,749
175
(410)
March 31,2014
5,797
341
(85)
(32)
March 31,2013
5,510
342
117
12
114
6,135
120
6,101
March 31,2014
March 31,2013
238
62
271
54
March 31,2014
8.00%
5.00%
1-3%
March 31,2013
8.00%
5.00%
1-3%
Add: Purchases
Less: inventory at the end of the year
Cost of raw material and components consumed
3.4. Purchase of traded goods
Traded purchases less returns
Total
3.5. (Increase)/decrease in inventories
Inventories at the end of the year
Stores and spares
Traded goods
*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.
61
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
3. Notes to the Statement of Profit and Loss account for year ended
(hs, unless other
b) Reconciliation of present value of obligations
Particulars
Present Value of Obligation at the beginning of the year
Current Services Cost
Interest Cost
Actuarial (gain)/loss
Benefits Paid
Present Value of Obligation at the end of the year
March 31,2014
479
32
40
(157)
(52)
342
March 31,2013
270
136
27
122
(75)
479
Particulars
Fair Value of plan assets at beginning of year
Expected return on plan assets
Contributions
Benefits paid
Actuarial gain/(loss) on plan assets
Fair Value of plan assets at end of year
March 31,2014
205
16
11
(52)
(16)
164
March 31,2013
270
21
(75)
216
March 31,2014
March 31,2013
342
164
177
479
216
263
March 31,2014
March 31,2013
136
27
(21)
122
117
March 31,2014
8.00%
5.00%
24.62
March 31,2013
8.00%
5.00%
24.62
March 31,2014
106
380
24
(436)
March 31,2013
93
297
18
(303)
73
106
62
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
3. Notes to the Statement of Profit and Loss account for year ended
(hs, unless other
c) Net (Asset) / Liability recognized in the Balance Sheet as at year end
Particulars
Present value of obligations at the end of the year
Fair Value of Plan Assets
Net (Asset) / Liability recognized in Balance Sheet
March 31,2014
73
73
March 31,2013
106
106
March 31,2014
380
24
(436)
(32)
March 31,2013
297
18
(303)
13
The above disclosures are based on information certified by an the independent actuary and relied on by the auditors.
3.7. Other expenses
Sub-contracting and outsourcing cost
Rent
Power and fuel
Repairs and maintenance
- Equipments
- Leased premises
- Others
Insurance
Rates and taxes
Communication costs
Travelling and conveyance
Printing and stationery
Freight and forwarding
Legal and professional fees
Directors sitting fees
Payment to auditor (Refer 3.7.1)
Advertising and sales promotion
Brokerage and discounts
Sales Commission
Exchange differences (net)
Bad debts written off
Provision for doubtful debts and advances
Loss on sale of fixed assets (net)
Miscellaneous expenses
Total
March 31,2014
3,173
981
245
16
237
85
84
173
487
921
63
342
214
8
31
82
2
231
33
-
March 31,2013
4,467
1,053
232
24
250
66
69
252
410
983
93
449
188
8
23
56
16
3
134
131
41
1
345
7,753
306
9,255
March 31,2014
March 31,2013
20
3
6
18
3
1
2
31
1
23
The audit fee includes foreign branch auditor fees of Rs.2.42 lakhs (Previous year Rs.2.19 lakhs)
63
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
3. Notes to the Statement of Profit and Loss account for year ended
(hs, unless other
March 31,2014
452
March 31,2013
417
520
972
552
969
March 31,2014
1,972
355
March 31,2013
1,620
333
2,327
1
1,954
a)
b)
c)
Sales tax
2014
2013
8,740,588
6,071,815
Service tax
584,433
4,428,905
Income tax
103,707,400
123,884,050
257,960,823
297,344,600
22,205,410
21,952,808
64
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Year Ended
Revenue
Segment Result
Unallocable Expenses ( Net)
Operating Income
Other Income ( Net )
Interest Expense
Profit before tax
Tax Expense
Profit before minority interest
Profit for the Year
Segment Assets
Unallocable assets
Total assets
Segment Liabilities
Unallocable liabilities
Total liabilities
IMS
SS
Mar/14
12,136
SI
9,318
5,483
WMS
2,977
Others
29,914
Mar/13
13,641
10,698
4,767
3,501
32,607
Mar/14
323
1,611
1,417
243
3,594
Mar/13
50
2,178
1,036
489
3,753
Mar/14
Total
972
Mar/13
968
Mar/14
2,622
Mar/13
2,785
Mar/14
Mar/13
(407)
Mar/14
2,327
Mar/13
1,954
Mar/14
295
Mar/13
424
Mar/14
50
Mar/13
144
Mar/14
245
Mar/13
280
Mar/14
245
Mar/13
280
Mar/14
9,781
8,585
5,236
2,672
Mar/13
9,635
8,342
5,288
2,514
26,274
25,778
Mar/14
7,393
7,393
Mar/13
6,566
6,566
Mar/14
9,781
8,585
5,236
2,672
7,393
33,667
Mar/13
9,635
8,342
5,288
2,514
6,566
32,344
Mar/14
5,744
6,149
2,183
1,859
12,266
28,200
Mar/13
7,506
6,146
3,218
2,219
9,546
28,635
Mar/14
5,466
5,466
Mar/13
3,708
3,708
Mar/14
5,744
6,149
2,183
1,859
17,732
33,667
Mar/13
7,506
6,146
3,218
2,219
13,254
32,344
Mar/14
463
16
429
106
Other Information
Capital Expenditure
Mar/13
Depreciation & amortization
Mar/14
100
128
603
123
47
184
24
Mar/13
Other Significant non Cash Expenses (allocable )
Mar/14
38
1,052
1,068
1,068
18
972
969
969
257
Mar/13
Other Significant non Cash Expenses (unallocable )
Mar/14
33
33
Mar/13
172
172
SI - System Integration
IMS - Infrastructure Management Services
SS - Software Services
WMS - Warranty Management Services
65
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
Nature of relationship
Executive Chairman
Particulars
Promoter company
Subsidiaries
Associate Company
Key Management
personnel
197,506,380
310,140
182,819,127
4,560,137
3,467,341
5,357,026
85,561
1,250,588
3,730,644
1,950,000
2,352,500
7,673,040
9,759,804
Remuneration
5,210,098
6,949,092
Interest Paid
3,005,200
Interest Received
5,036,500
8,217,269
246,843,057
Loans received
215,107,541
136,600,000
Receivables
Loans and advances
Maximum amount outstanding at any time during the
year
157,952,099
2,083,782
103,685,021
(366,559)
52,194,315
4,333,764
8,202,558
41,460,446
38,759,052
63,878,005
57,570,489
61,310,703
65,628,986
44,405,630
48,215,327
63,878,005
66
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
2014
During the year, the branch at Singapore in the name of Accel Frontline
Limited - Singapore Branch continued its operation. The revenue and
expenses of the said Branch have been included in the financials of the
company against each line item, translated into Indian rupees, as applicable.
The summary of the financials of the Branch is as follows:
2014
Rs.
Turnover
2013
US $
281,795,581 4,658,070
Rs.
5,917,302
124,763
7,622,075
140,333
Sundry Debtors
118,044,601 1,964,143
141,601,525
2,605,124
Sundry Creditors
108,205,904 1,800,437
131,102,965
2,411,976
751,383
13,834
7,547,689
279,916
4,627
20,169,470
Dividend
for the
year)
2013
No of
equity
shares
held
Rupees
No of
Nonresident
shareholders
Nil
04
No of
equity
shares
held
Rupees
493,785
740,678
US $
321,393,540
Particulars
No of
Nonresident
shareholders
2013
11,656,966
2013
528,664,530
557,973,171
24,716,915
2013
290,615,278
R. Ramaraj
Director
K.R. Chandrasekaran
Chief Finance Officer
Sweena Nair
Company Secretary
Place : Chennai
Date : May 07, 2014
67
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
I.
II.
Registration details
Registration number
18-31736
NIL
Rights Issue
Bonus Issue
NIL
Private Placement
Total Liabilities
24,277
Total Assets
NIL
5,500,000
24,277
Sources of funds
Paid up capital
2,976
Secured loans
10,274
9,290
Unsecured loans
1,366
Investments
2,498
371
Application of funds
Net fixed assets
4,239
17,540
Misc. expenditure
Total expenditure
29,619
29,914
295
0.96
Dividend as %
Generic names of three principal products / services of company (as per monetary terms)
847100
Computers &
Periphearls
852490
Sofware
Development
68
Accel Frontline Limited, 75 Nelson Manickam Road, Aminjikarai, Chennai - 600 029.
245
0