ESDS Unlisted Shares

Annual Report Summary

ESDS Software Solution Private Limited Unaudited Standalone Balance Sheet as at March 31, 2021, details the equity and liabilities along with the assets of the company.

Equity and Liabilities:

• Shareholders' funds total 1,54,25,67,389, comprising share capital of 36,04,39,500 and reserves and surplus of 1,18,21,27,889.
• Non-current liabilities amount to 1,60,38,75,755 and include long-term borrowings (42,37,23,083), lease liability (88,27,58,567), deferred tax liabilities (net) (10,15,88,043), long-term provisions (7,25,58,463), and capital creditors (12,32,47,600).
• Current liabilities total 1,50,57,21,047 and include short-term borrowings (34,97,47,842), trade payables (23,12,83,655), other current liabilities (92,05,91,604), and short-term provisions (40,97,945).
• The total Equity and Liabilities sum up to 4,65,21,64,192.

Assets:

• Non-current assets total 3,22,70,99,631 and include tangible fixed assets (2,17,02,83,708), intangible fixed assets (37,02,817), capital work in progress (80,93,34,469), Right to Use Lease Asset, non-current investments (3,61,128), long-term loans and advances (17,30,38,145), and other non-current assets (7,03,79,364).
• Current assets total 1,42,50,64,561 and include trade receivables (50,67,83,147), cash and bank balances (13,82,38,589), short-term loans and advances (66,00,74,464), and other current assets (11,99,68,361).
• The total assets also sum up to 4,65,21,64,192.

Statement of Profit and Loss:

The Unaudited Standalone Statement of Profit and Loss for the period ended March 31, 2021, provides the following details:

• Revenue from operations is 1,71,81,49,717, and other income is 3,20,00,656, making the total revenue 1,75,01,50,373.
• Total expenses are 1,72,31,97,260 including employee benefits expense (60,25,57,450), finance costs (20,04,86,226), depreciation and amortisation (44,79,50,171) and other expenses (47,22,03,413).
• Profit before tax is 2,69,53,113.
• Profit for the year is 2,69,53,113.

Share Capital Details:

• The authorized share capital includes 1,99,85,000 equity shares of Rs 10 each (amounting to 11,50,00,000), optionally convertible preference shares, 30,00,000 0.01% Compulsory Convertible Preference shares of Rs 100 each (amounting to 30,00,00,000), and 2,00,000 16% Compulsory Convertible Preference shares of Rs 100 each (amounting to 2,00,00,000).
• The issued, subscribed, and paid-up capital includes 52,22,100 equity shares of Rs 10 each fully paid up (amounting to 5,22,21,000), 30,81,143 0.01% Compulsory Convertible Preference shares of Rs 100 each fully paid up (amounting to 29,19,34,300), and 1,62,842 16% Compulsory Convertible Preference shares of Rs 100 each fully paid up (amounting to 1,62,84,200).

Reserves and Surplus:

• The reserves and surplus include a securities premium account (71,73,51,791), a capital redemption reserve (35,82,000), and surplus in the statement of profit and loss (46,11,94,098) after adjustments for transfer to capital redemption reserve and proposed dividends.

Long-term Borrowings:

• Long-term borrowings total 42,37,23,083, including secured term loans from banks and financial institutions, vehicle loans, and unsecured term loans from financial institutions, net of current maturities.

Deferred Tax Liabilities (net):

• The deferred tax liabilities are related to the impact of the difference between tax depreciation and depreciation/amortization charged in the financial statements.

Long-term provisions:

• Long-term provisions include provisions for employee benefits like gratuity and compensated absences, totaling 7,25,58,463.

Short-term Borrowings:

• Short-term borrowings include secured loans repayable on demand (working capital loans from banks) and unsecured debentures and loans from promoters, totaling 34,97,47,842.

Trade Payables:

• Trade payables amount to 23,12,83,655.

Other Current Liabilities:

• Other current liabilities include current maturities of long-term debt, interest accrued on borrowings, accrued employee liabilities, statutory liabilities, unearned revenue, advances from customers, capital creditors, other payables and provision for expenses and proposed dividend on preference shares totaling 92,05,91,604.

Short-term Provisions:

• Short-term provisions include provisions for employee benefits (gratuity and compensated absences) totaling 40,97,945.

Non-current Investments:

• Non-current investments are valued at cost and are unquoted and non-trade, comprising investments in ESDS Internet Services Private Limited, investment in mutual funds, and investment in equity shares of ESDS Global and ESDS Cloud FZ LLC, totaling 3,61,128.

Long-term Loans and Advances:

• Long-term loans and advances, considered good unless otherwise stated, include security deposits and advance tax and tax deducted at source (net of provision) and MAT credit receivable, totaling 17,30,38,145.

Other Non-current Assets:

• Other non-current assets include bank deposits (due to mature after 12 months from the reporting date), totaling 7,03,79,364.

Trade Receivables:

• Trade receivables are unsecured and considered good unless otherwise stated. Outstanding amounts exceeding six months are 6,40,51,426, and outstanding amounts less than six months are 44,27,31,721.

Cash and Bank Balances:

• Cash and bank balances include balances with banks on current accounts, totaling 13,82,38,589.

Short-term Loans and Advances:

• Short-term loans and advances to parties other than related parties include balances with statutory/Government authorities, security deposit, advances to creditors, capital advance, advances to employees, prepaid expenses, unbilled revenue, other receivables, loan to subsidiary, and other loans and advances, totaling 66,00,74,464.

Other Current Assets:

• Other current assets include term deposits with maturity of less than 3 months from the reporting date, term deposits due to mature beyond 3 months but within 12 months of the reporting date, and interest accrued, totaling 11,99,68,361.

Revenue from Operations Details:

• Revenue from operations includes sale of services (web hosting services, turnkey contract revenue, and technical support services) and other operating income, totaling 1,71,81,49,717.

Other Income:

• Other income includes interest received on deposits with banks, interest from others, profit on sale of fixed assets (net), other non-operating income, and foreign exchange fluctuation (gain)/loss (net), totaling 3,20,00,656.

Employee Benefits Expense:

• Employee benefits expense includes salaries, wages and bonus, contribution to provident and other funds, gratuity, compensated absence, and other employee-related costs, totaling 60,25,57,450.

Finance Costs:

• Finance costs include interest expense, interest expense - others, interest expense - debentures, other borrowing costs, and bank charges, totaling 20,04,86,226.

Depreciation and Amortisation:

• Depreciation and amortisation includes depreciation of tangible fixed assets and amortisation of fixed assets, totaling 44,79,50,171.

Operating and Other Expenses:

• Operating and other expenses include contract costs for data center setup, rent, office expenses, travelling and conveyance, communication expenses, contract labour charges, rates & taxes, legal and professional charges, commission, insurance, advertisement and sales promotion, power and fuel, repairs and maintenance, membership and subscription, bad & doubtful debts - expenses, foreign exchange fluctuation (gain)/loss (net), auditor's remuneration, donations, miscellaneous expenses and Corporate Social Responsibility expenses, totaling 47,22,03,413.