HGS LTD.

As at 31.03.2014
EQUITY AND LIABILITIES
Shareholders Funds
Share Capital 3,433
Reserves and Surplus 242,355
245,787
Minority Interest 2
2
Non Current Liabilities
Long term Borrowings 74,679
Deferred tax liabilities(Net) 4,950
Long term Provisions 1,066
80,695
Current Liabilities
Short term Borrowings 17,610
Trade Payables 22,279
Other Current Liabilities 32,165
Short term Provisions 6,016
78,070
TOTAL 404,554
ASSETS
Non - Current Assets
Fixed Assets
Tangible assets 62,667
Intangible Assets 118,559
Capital work-in-progress 217
Intangible assets under development 94
Non current investments 1,140
Long-term loans and advances 22,720
Other non-current assets 1,294
206,692
Current Assets
Current investments 22
CONSOLIDATED BALANCE SHEET
Trade Receivables 78,123
Cash and Bank Balances 75,759
Short-term loans and advances 29,761
Other Current Assets 14,197
197,863
TOTAL 404,554
(000s USD)
As at 31.03.2013
3,793
223,797
227,590
2
2
66,010
4,456
1,113
71,580
16,903
14,805
36,375
13,391
81,474
380,646
54,791
118,672
423
294
1,393
20,506
1,236
197,315
23
CONSOLIDATED BALANCE SHEET
66,309
74,808
24,100
18,091
183,331
380,646
HGS LTD.
Year Ended 31.03.2014
Revenue from operations 412,278
Other Income 5,597
Total Revenue 417,875
EXPENSES
Employee Benefit Expense 278,510
Finance costs 6,378
Depreciation/ Amortisation 14,189
Other Expenses 80,787
Total Expenses 379,864
Profit before exceptional item and tax 38,012
Exceptional Item 0
Profit before tax 38,012
Tax expense
Current tax 11,701
MAT Credit -2,078
Net Current tax 9,624
Deferred tax 481
Profit After Tax 27,907
Minority Interest 0
Profit After Tax and Minority Interest 27,907
CONSOLIDATED STATEMENT OF PROFIT & LOSS
Year Ended 31.03.2013
(000'S USD)
364,299
6,112
370,411
246,340
8,020
14,188
76,868
345,417
24,994
971
24,023
6,483
0
6,483
905
16,635
0
16,635
CONSOLIDATED STATEMENT OF PROFIT & LOSS
HGS LTD.
NAME OF THE RATIO 2014 2013
SHORT TERM SOLVENCY RATIO
Current Ratio 2.534431 2.250178
Cash Ratio 0.970398 0.9181825
LONG TERM SOLVENCY RATIO
Total debt Ratio 0.233033 0.2248297
Debt-Equity Ratio 0.303836 0.2900391
Times Interest Earned Ratio 6.959862 3.9953865
Cash-Coverage Ratio 9.184541 5.7644638
Equity Multiplier 1.645954 1.6725076
ASSETS UTILIZATION RATIOS
Receivable Turnover Ratio 5.277293 5.4939601
Days' Sales in Receivables 69.16424 66.436595
Total Asset Turnover 1.019093 0.9570546
Capital Intensity 0.981265 1.0448725
PROFITABILITY RATIOS
Profit Margin 6.77% 4.57%
Return on Assets 6.90% 4.37%
Return on Equity 11.35% 7.31%
DUPONT ANALYSIS (3STEP)
ROE 11.35% 7.31%
Profit Margin 0.06769 0.0456718
Total Asset Turnover 1.019093 0.0970546
Equity Multiplier 1.645954 1.6725076
DUPONT ANALYSIS (5STEP)
ROE 11.35% 7.31%
Tax Retention Rate 0.734163 0.6924614
Interest Expense Rate 0.856319 0.7497113
RATIOS
Operating Profit Rate 0.10767 0.087958
Total Asset Turnover 1.019093 0.0970546
Equity Multiplier 1.645954 1.6725076
HGS LTD.
As at 31.03.2014
EQUITY AND LIABILITIES
Shareholders Funds
Share Capital 0.85%
Reserves and Surplus 59.91%
60.75%
Minority Interest 0.00%
0.00%
Non Current Liabilities
Long term Borrowings 18.46%
Deferred tax liabilities(Net) 1.22%
Long term Provisions 0.26%
19.94%
Current Liabilities
Short term Borrowings 4.35%
Trade Payables 5.51%
Other Current Liabilities 7.95%
Short term Provisions 1.49%
19.30%
TOTAL 100%
ASSETS
Non - Current Assets
Fixed Assets
Tangible assets 15.49%
Intangible Assets 29.31%
Capital work-in-progress 0.05%
Intangible assets under development 0.02%
Non current investments 0.28%
Long-term loans and advances 5.62%
Other non-current assets 0.32%
51.09%
Current Assets
Current investments 0.01%
Trade Receivables 19.31%
Cash and Bank Balances 18.73%
Short-term loans and advances 7.36%
Other Current Assets 3.51%
48.91%
TOTAL 100%
As at 31.03.2013 As at 31.03.2012
1.00% 0.96%
58.79% 51.79%
59.79% 52.75%
0.00% 0.00%
0.00% 0.00%
17.34% 17.45%
1.17% 0.88%
0.29% 0.09%
18.80% 18.42%
4.44% 14.06%
3.89% 3.62%
9.56% 7.55%
3.52% 3.62%
21.40% 28.84%
100% 100%
14.39% 14.48%
31.18% 26.98%
0.11% 0.01%
0.08% 0.00%
0.37% 0.29%
5.39% 5.11%
0.32% 0.00%
51.84% 46.88%
COMMON-SIZE BALANCE SHEETS
0.00% 0.00%
17.42% 12.73%
19.65% 33.61%
6.33% 2.44%
4.75% 4.32%
48.16% 53.11%
100% 100%
As at 31.03.2011
1.51%
71.91%
73.42%
0.00%
0.00%
6.92%
1.30%
1.42%
9.64%
3.82%
2.96%
5.60%
4.55%
16.93%
100%
15.24%
12.44%
0.00%
0.00%
0.36%
6.37%
0.03%
34.44%
COMMON-SIZE BALANCE SHEETS
0.00%
13.12%
45.46%
2.96%
4.00%
65.55%
100%
HGS LTD.
HGS, part of the multi-billion dollar conglomerate - Hinduja Group,
provides outsourcing solutions that include Back Office Processing, Contact
Center services and customized IT solutions to its global clientele
comprising several Fortune 500 Companies. We have been ranked among
the Top 3 & Best Performing Call Centers Worldwide & by the Global
Services Magazine in 2008. We were among the Global Best 10 for Sales
Service in the 2010 Global Outsourcing 100 list by the International
Association of Outsourcing Professionals.
HGS has aglobal footprintwith 58 delivery centers in India, the United
States of America, the United Kingdom, Canada, UAE, France, Germany,
Italy, Jamaica, the Netherlands, and Philippines. With our targeted
solutions, designed for the diversified sourcing and servicing needs of our
clients, we live by our mission of making our clients more competitive. The
Contact Center & Back Office Services Division houses multiple
international voice centers & back office processing units for leading
Insurance, Telecommunications, Pharmaceuticals, Life Sciences, Banking &
Financial Services, Consumer Electronics / Products, Technology,
Automotive, Government, Media & Entertainment, Retail, Hospitality,
Government & Public sector, Hospitality, Energy & Utilities and
Transportation & Logistics companies.
With an inspired global team of 26,000 people, we partner with our clients
to deliver outsourced contact center and back office solutions that improve
business processes and strengthen customer relationships. Across our
geographically diverse organization, we design and deploy customized
solutions on behalf of our clients, across a wide range of industry verticals.
Our client partners enjoy a high quality of service, optimized cost
containment, and a competitive edge.
HGS is a public limited company, listed as HGS on both the leading stock
exchanges in India, the National Stock Exchange (NSE), and the Bombay
Stock Exchange (BSE).
OVERVIEW
OVERVIEW
HGS LTD.
i. Up to September 30, 2011, the forward exchange contracts
other than those covered under Accounting Standard11 - The
Effects of Changes in Foreign Exchange Rates, were valued on
mark to market basis at the period end and any loss on valuation
was recognised in the Statement of Profit and Loss, on a
portfolio basis and any gain arising on this valuation were not
recognised in line with the principle of prudence as enunciated in
Accounting Standard 1 Disclosure of Accounting Policies.
Effective October 1, 2011, the Company has adopted the
principles of accounting for derivatives and hedge accounting as
prescribed in Accounting Standard 30 - Financial Instruments
Recognition and Measurement to the extent they do not confl ict
with the requirements of the existing accounting standards
notified under section 211(3C) of the Companies Act, 1956
and/or other regulatory requirements. Under such principles, for
qualifying hedge relationships, mark to market gain/ loss at the
period-end on derivatives are accounted for in the Hedging
Reserves. In respect of derivatives which do not qualify for
hedge relationships, the mark to market gain/loss at the period-
end are recognised in the Statement of Profit and Loss. Had the
Company followed its previous accounting policy, the profit
before tax for the year ended March 31, 2012 would have been
lower by R 262.51 Lacs.
ii. The Company has opted to avail the option provided under
paragraph 46A of AS-11 - The Effects of changes in Foreign
Exchange Rates inserted vide Notification dated December 29,
2011. Refer Note 2.7 for policy regarding accounting treatment
of foreign exchange differences on long-term foreign currency
items. In the absence of long-term foreign currency monetary
items as at March 31, 2012 and for the year ended thereon, there
is no impact on profit before tax for the year ended March 31,
2012.
ACCOUNTING POLICY