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Shaping the future of software driven business
Management Discussion and Analysis •
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The following table provides the age-wise analysis of Trade Receivables (Net of provision for doubtful debts) as on
March 31, 2019.
Particulars
As At March 31, 2019
As At March 31, 2018
`
Million
As %
`
Million
As %
Not Due
4,180.82
84.92%
3,350.59
69.12%
Due upto 30 days
320.33
6.51%
774.61
15.98%
Due 31 – 60 days
153.87
3.13%
347.81
7.18%
Due 61 – 90 days
118.34
2.40%
249.37
5.14%
Due 91 – 120 days
70.02
1.42%
50.33
1.04%
Due over 120 days (net)
79.63
1.62%
74.69
1.54%
Total
4,923.01
100% 4,847.40
100%
The Company uses a provisioning policy approved by the Board of Directors to compute the expected credit loss allowance for
trade receivables. The policy takes into account available external and internal credit risk factors and the Company’s historical
experience for customers Further, the policy provides for the provisioning of all customer invoices which are overdue for a
period of more than 180 days.
Provision for doubtful debts decreased to
`
134.54 Million as at March 31, 2019 from
`
146.97 Million as at March 31, 2018. Please
refer Note 13 of the consolidated financials for details.
DSO as at March 31, 2019 was improved to 63 days as against 66 days as at March 31, 2018.
Cash and cash equivalents
Cash and cash equivalents include bank balances and cash and cheques on hand. Cash and cash equivalents increased to
`
1,739.45 Million as at March 31, 2019 from
`
1,343.72 Million as at March 31, 2018.
Other bank balances
Deposits with banks having original maturity of more than twelve months including interest thereon and the balance on
unpaid dividend account are considered under other bank balances. These deposits amounted to
`
4,982.12 Million as at
March 31, 2019 as compared to
`
1,068.84 Million as at March 31, 2018. The deposits have increased because of additional
deposits made during the year and increase in interest accrued on the deposits. The balance on unpaid dividend account was
`
2.27 Million as at March 31, 2019 as against
`
1.41 Million as at March 31, 2018. Please refer Note 15 of the consolidated
financials for details.
Loans
Current loans include unsecured short-term loans granted and the security deposits with short term maturity. The amount of
current loans as at March 31, 2019 was
`
7.87 Million as against
`
6.63 Million as at March 31, 2018. Please refer Note 16 of the
consolidated financials for details.
Other current financial assets
Other current financial assets were
`
2,377.00 Million as at March 31, 2019 as compared to
`
2,758.25 Million as at
March 31, 2018. Following are the components of other current financial assets:
(In
`
Million)
Particulars
As at March 31, 2019 As at March 31, 2018
Forward contracts receivable
281.27
42.75
Deposit with financial institutions (including interest accrued)
260.97
1,016.00
Unbilled revenue
1,834.76
1,699.50
Total
2,377.00
2,758.25
The amount of forward contracts receivable represents favourable position (i.e. Mark To Market gain) as at the Balance Sheet
date in respect of the forward contracts entered by Company. The reduction in current Deposits with financial institutions is
mainly on account of classification of Deposits with IL&FS group into Other non-current financial assets. Unbilled revenue
represents revenue recognized in relation to work done until the Balance Sheet date for which billing has not taken place.
Please refer Note 17 of the consolidated financials for details.