1. Corporate Information

RS Software has focused exclusively on providing software solution to electronic payment industries since its inception. The company is engaged in development, testing and maintenance of software for its clients based in different geographies. The company operates in US, UK and India.

The Financial Statement are approved for issue by the company’s Board of Directors on 19th April 2018.

2.1 First-time adoption of Ind-AS

These standalone financial statements of R S Software Limited for year ended MarcRs. 31, 2018 have been prepared in accordance with Ind AS. This is the Company’s first set of financial statements in accordance with Ind AS. For the purposes of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 - First Time adoption of Indian Accounting Standard, with April 1, 2016 as the transition date and IGAAP as the previous GAAP

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principleaccounting policies set out in note 2 have been applied in preparing the standalone financial statements for the year ended MarcRs. 31, 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance sheet , Statement of profit and loss, is set out in Note 3.2.1 and 3.2.2. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in note 3.1.1.

2.1.1 Exemptions availed on first time adoption of Ind-AS 101

Ind-AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The company has accordingly applied the following exemptions.

a) Investments in subsidiaries.

The Company has elected to measure investment in subsidiaries at cost.

b) Deemed Cost Exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date.

2.2 Reconciliation :

The following reconciliations provides the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101

1. Equity as at MarcRs. 31, 2017

2. Net profit for the year ended MarcRs. 31, 2017

Explanations for reconciliation of Statement of Profit and loss as previously reported under IGAAP to Ind AS Employee Benefit expenses

As per Ind-AS 19, actuarial gain and losses are recognized in other comprehensive income and not reclassified to profit and loss in a subsequent period.

Adjustments reflect unamortised negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings.

Explanations for Reconciliation of Balance Sheet as previously reported under IGAAP to INDAS

1) Investment

Investments in Mutual Funds are carried at fair value through Profit and loss in Ind AS compared to being carried at cost under IGAAP.

2) Loans

Loans to trust are carried at fair value through Other Comprehensive Income in Ind AS compared to being carried at cost under IGAAP

3) Deferred tax assets (net)

Deferred Tax has been Calculated in the Accordance with the INDAS.

4) Other financial liabilities

The Company has accounted the Unclaimed Dividend amount in the Books of Accounts Due to INDAS.

5) Other Equity

a) Adjustments to retained earnings and other comprehensive income has been made in accordance with Ind AS, for the above mentioned line items.

b) In addition, as per Ind-AS 19, actuarial gain and losses are recognized in other comprehensive income as compared to being recognized in the Statement of Profit and Loss under IGAAP

UNBILLED REVENUE:

Unbilled but accrued revenue included in Trade receivable valued as on MAR 31st, 2018 amounts to RS.395.49 lacs (MARCRS. 31 ‘ 2017 RS.825.60 Lac) primarily comprises of revenue recognised in relation to a percentage of work completed during the period which would be invoiced on achieving the particular milestone i.e based on the work order or contractual terms.

The company has only one class of Shares referred to as equity share having a par value of RS.5/- at the beginning of the year. Each holder of equity share is entitled to one vote per share. (‘The Company has sub-divided the face value of equity shares from INR 10 to INR 5 per share during FY 14-15.)

In the event of liquidation of the Company, the holder of the equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amount exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

The company has allotted 8372 equity share in FY 13-14 as bonus share.

In response to order received for demand of INR 3.99 Cr (FY2007-12) , the company has filled an apeal with CESTAT and the same is pending as on date.

In response of the demand order received for AY 2013-14 of INR 4.3 Cr, the company has filed an appeal with CIT(A) and the same is pending as on date.

In respect of AY 12-13 demand order recived for INR 10.30 crs, the company has filed appeal with ITAT which is still pending for hearing

3. COMMITMENTS(TO THE EXTENT NOT PROVIDED FOR)

Company has a lease agreement for the premises of Saltlake City, Sector V, Kolkata, The Lease has been renewed till 2019.

4. There is no Impairment of assets during the quarter ended as on MAR 31 2018.

5. In respect of service tax & GST which are non cenvatable or non refundable the same amount is being charged to respective expense account.

6. The Company has renewed lease for Building with Saltee Infotex (India) Pvt. Ltd. for the period of 4 years expiring on 30th April’ 19. The amount of INR 239.84 lacs relates to FY17-18 and (RS. 999.94 lacs has been charged to PL Account as on 31st of MarcRs. 2017.)

7. There is no declaration received from Micro,Small and Medium Enterprises under section 22 of MSMED Act 2006

8. Additional Information pursuant to provisions of the Para 5 (vii) (b) of Part II Schedule III for the Companies Act, 2013:-

a The Company is engaged in the business of development & maintenance of computer software and other related services. The production and sale of such software services are not capable of being expressed in generic terms.

b Remittance in Foreign Currency

The Company has remitted H Nil (MAR2018: H Nil) in foreign currencies on accounts of dividends during the year and does not have information as to the extent to which remittance, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders. The Particulars of dividends declared and paid on account of non-resident shareholders for the years 2010-11 to 2015-16 are as under :-

9 The Company is primarily engaged in the rendering services relating to maintenance and testing of Computer Software . These cannot be expressed in any generic units. Hence it is not possible to give the quantities details of sales and certain information as required under paragrapRs. 5 (viii) ‘(c) of general instructions for preparation of statement of profits and loss as per revised schedule VI of the Companies Act 2013.

10 The previous year figures have been regrouped, reclassified and restated, wherever necessary, to correspond with the current year’s classification.

11 Financial figures have been rounded off to nearest Rs. Lac.