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Notes forming part of consolidated onancial statements (Contd.)
Annual Report 2016-17
•
219
38. Capital and other commitments
(In
`
million)
As at
March 31, 2017
March 31, 2016
Capital commitments
Estimated amount of contracts remaining to be executed on capital account
and not provided for
43.58
645.06
Other commitments
Forward contracts
6,360.30
7,252.54
For commitments relating to lease agreements, please refer note 35.
39. Auditors’ remuneration
(In
`
million)
For the year ended
March 31, 2017
March 31, 2016
As auditor:
- Audit fee
11.50
9.99
- Tax audit fee
0.24
0.21
In other capacity:
- Other services
0.54
1.31
Reimbursement of expenses
0.11
0.23
12.39
11.74
40. Research and development expenditure
The particulars of expenditure incurred on in-house research and development are as follows:
(In
`
million)
For the year ended
March 31, 2017
March 31, 2016
Capital
-
0.11
Revenue
1,434.60
62.47
1,434.60
62.58
41. Contingent liabilities
The contingent liabilities as on March 31, 2017 were
`
452.15 million (previous year
`
Nil).
Persistent Systems /imited (“the Holding Company”) has received a show cause notice from Commissioner of
Service Tax on December 19, 2016 for non-payment of service tax of
`
452.15 million under import of services
on reverse charge basis, excluding interest and penalty if applicable. The issue relates to the professional and
technical services rendered by overseas subsidiaries on behalf of the Holding Company to its overseas customers
for the period 2011-12 to 2014-15.
The Holding Company, based on independent legal opinion obtained in respect of issues related to this matter,
believes that the liability is not likely to arise and therefore, no provision is considered necessary in the onancial
statements. The Holding Company has oled a reply to this show cause notice. If this show cause notice results in a
demand, there will be no impact on the prootability as the Holding Company will be eligible to claim credit for the
amount paid.