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Shaping the future of software driven business
Management Discussion and Analysis •
187
Current Liabilities
(In
`
Million)
Particulars
As at March 31, 2019 As at March 31, 2018
Financial liabilities
- Trade payable
1,517.07
1,673.08
- Other financial liabilities
441.93
396.33
Other current liabilities
1,124.27
1,201.02
Provisions
1,686.35
1,599.49
Total
4,769.62
4,869.92
Trade Payables
Trade payables decreased to
`
1,517.07 Million as at March 31, 2019 from
`
1,673.08 Million as at March 31, 2018.
Other current financial liabilities
Other current financial liabilities include capital creditors, current maturity of borrowings including interest thereon, accrued
employee liabilities, unpaid dividend and other contractual liabilities. Other current financial liabilities have increased to
`
441.93 Million as at March 31, 2019 from
`
396.33 Million as at March 31, 2018 mainly due to increase in capital creditors and
in accrued employee liabilities.
The details of major components of other current financial liabilities are shown below:
(In
`
Million)
Particulars
As at March 31, 2019 As at March 31, 2018
Capital creditors
55.16
32.36
Current maturity of long-term borrowings
4.58
4.58
Current maturity of interest on long-term borrowings
0.17
0.78
Accrued employee liabilities
377.88
357.02
Unpaid dividend
2.27
1.41
Other liabilities
1.87
0.18
Total
441.93
396.33
Other current liabilities
Other current liabilities include unearned revenue, advances from customers and statutory and other liabilities. Unearned
revenue represents the billing in respect of contracts for which the revenue is not recognized. The other current liabilities have
decreased to
`
1,124.27 Million as at March 31, 2019 from
`
1,201.02 Million as at March 31, 2018. The net decrease in other current
liabilities is primarily due to decrease in unearned revenue. Please refer Note 23 of the consolidated financials for details.
Current liabilities: Provisions
The short term provisions denote the employee liabilities and other provisions expected to be settled within a period of twelve
months from the date of the Balance Sheet. The short term provisions were
`
1,686.35 Million as at March 31, 2019 as against
`
1,599.49 Million as at March 31, 2018. The details of the components of short term provisions are given below:
(In
`
Million)
Particulars
As at March 31, 2019 As at March 31, 2018
Provision for employee Benefits
Gratuity
17.20
(44.77)
Leave encashment
548.87
468.73
Long service awards
19.02
22.31
Other employee benefits
1,101.26
1,153.22
Total
1,686.35
1,599.49
The increase in gratuity liability is due to decrease in funding to plan assets.
Revenue from Operations (Net)
The Company provides product engineering services, and IP-based software products to its global customers. The Company
derives a sizable portion of its revenues from export of software services and products.