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Notes forming part of consolidated onancial statements (Contd.)
220
•
Annual Report 2016-17
As on March 31, 2017, the pending litigations in respect of direct taxes amount to
`
156.72 million and in respect of
indirect taxes amount to
`
33.68 million (excluding the show cause received 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 as mentioned above). Based on the advice obtained and judgments in favour of the Company at the orst
appellate authority in the earlier years, the Group’s management does not expect any outpow in respect of these
litigations.
42.
On July 02, 2015, the Company, through its wholly owned subsidiary Persistent Systems Inc., acquired the entire
equity capital of US based Akshat Corporation (d.b.a. RGen Solutions in USA). In addition to the upfront purchase
consideration, the stock purchase agreement provides for additional consideration, contingent upon certain
conditions being met in future years. The additional contingent consideration payable to the selling shareholders
is subject to a maximum amount of USD 3.75 million. The fair value of the contingent consideration is estimated to
be Nil as on the date of acquisition. The contingent consideration would be recorded, as and when the contingency
is resolved and the consideration is payable.
43.
Valista Inc.has been dissolved with effect from June 28, 2016. Valista /imited, holding Company took over all the
assets and liabilities of Valista Inc. on the date of dissolution.
44.
Persistent Systems Inc. (a wholly owned subsidiary of Persistent Systems /imited) acquired Digital Content
Management Solution product from the US based Akumina Inc. on November 9, 2015. In addition to the upfront
purchase consideration, the asset purchase agreement provides for additional consideration, contingent upon
certain conditions being met in future years. The additional contingent consideration payable to Akumina Inc., is
subject to maximum amount of USD 5.00 million. The fair value of the contingent consideration is estimated to be
Nil as on the date of acquisition. The contingent consideration would be recorded, as and when the contingency is
resolved and the consideration is payable.
45.
Persistent Telecom Solutions Inc. (a wholly owned subsidiary of Persistent Systems Inc.) acquired a cloud platform
open source software from Citrix on February 28, 2016. In addition to the upfront purchase consideration, the
asset purchase agreement provides for additional consideration, contingent upon certain conditions being met
in future years. The fair value of the contingent consideration is estimated to be Nil as on the date of acquisition.
The contingent consideration would be recorded, as and when the contingency is resolved and the consideration is
payable.
46. Specioed Bank Notes (SBN) held during and transacted during the period November 8, 2016 to December 30,
2016*:
(In
`
million)
Particulars
SBN
Other
denomination
Total
Closing cash in hand as on November 8, 2016
0.08
0.05
0.13
Add Permitted receipts
-
0.45
0.45
Add Petty advance returned back from locations
0.08
-
0.08
/ess
Permitted Payments
-
(0.42)
(0.42)
/ess
Amount Deposited in Bank
(0.16)
-
(0.16)
Closing cash in hand as on December 30, 2016
-
0.08
0.08
*This information pertains to Persistent Systems /imited, the Holding Company which is the only Company
domiciled in India.
47.
A US based corporation had oled a suit in the year 2014 against a step down subsidiary of the Parent Company,
claiming damages for direct and contributory infringement of copyrights and breach of contract. In the month of
December 2016, the Court had directed the parties to reach a settlement in this matter. Accordingly, an out of court
settlement was reached with the claimant without admission of any liability, during the quarter ended March 31,
2017 and an amount of
`
114.11 million has been accounted as an expense, net of insurance claim receivable which
is based on the legal opinion obtained.