Cost of Goods sold consists of cost of Hardware and Software and integration services. Cost of Hardware and Software sold increased by ₹1065 million ($16.36 million). The same being on account of increase in projects in Technology Integration business by ₹971 million ($14.93 million) and increase in cost related to one time sales by ₹94 million ($1.43 million) Direct Resource costs comprises the cost of resources deployed on the Network Infrastructure Delivery (Part of Telecom service), and resources involved in delivery of applications integration services, cost of billable resources of e Learning (Part of Applications Integration services) and Infrastructure Managed services (Part of Cloud and Managed Services). Increase in resources costs of 202 million ($3.11 million) is primarily on account of increase of (i) ₹105 million ($1.62 million) increase in delivery telecom services, (ii) Applications Integration Services by ₹64 million ($0.98 million), (iii) Technology Integration Services by ₹18 million ($0.28 million), (iv) DC services increase by ₹10 million ($0.15 million) and (v) Managed Services Delivery (Part of Cloud and Managed services) increase by ₹5 million ($0.08 million) on account of increase in number of employees. 50
Net cash generated from operating activities for the year ended March 31, 2017 was ₹ 1,748 million ($ 26.96 million). This is mainly attributable to cash generated during the year before changes in working capital ₹ 3,064 million ($ 47.25 million), increase in trade and other payables by ₹1,379 million ($ 21.27 million), increase in employee benefits ₹27 million ($ 0.42 million) and increase in deferred revenue by ₹173 million ($ 2.67 million) on account of increase in advance billing in long term projects and partially offset by increase in trade and other receivables by ₹ 1,844 million ($ 28.43 million), increase in inventories by ₹ 441 million ($ 6.80 million), other assets by ₹ 618 million ($ 9.53 million). Net cash generated from operating activities for the year ended March 31, 2016 was ₹ 2,442 million ($ 36.81 million). This is mainly attributable to cash generated during the year before changes in working capital ₹ 2,785 million ($ 41.99 million), increase in trade and other payables by ₹1,347 million ($ 20.31 million), increase in employee benefits and other assets by ₹ 36 million ($ 0.54 million) and increase in deferred revenue by ₹220 million ($ 3.32 million) on account of increase in advance billing in long term projects and partially offset by increase in trade and other receivables by ₹ 946 million ($ 14.26 million), increase in inventories by ₹ 508 million ($ 7.66 million). 57
(v) Amendments to IFRS 2, Share-based payment: In June 2016, the International Accounting Standards Board issued the amendments to IFRS 2, providing specific guidance for measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes. It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ‘fair values’, but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that includes a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement. The effective date for adoption of the amendments to IFRS 2 is annual reporting periods beginning on or after January 1, 2018, though early adoption is permitted. The Group has evaluated the requirements of amendment and the effect on the financial statement is expected to be insignificant. 59
In fiscal 2015, the authorized share capital of the Company was enhanced by an amount of ₹ 189,000. Consequently the authorized share capital is increased to ₹ 2,040,000 divided into 204,000,000 Equity Shares, having a par value ₹ 10 per share. The holders of ordinary shares are entitled to receive dividends from time to time and are entitled to vote at meetings of the Group. 133
As at March 31, 2017 Lease obligations Total Less than 1 year 1-5 years More than 5 years Non-cancellable operating lease obligations 1,102,328 111,469 477,441 513,418 Operating lease income: The company has given plant and machinery under operating lease arrangements to its customers the period of which are generally up to 5 years. The schedule of minimum lease rental incomes in respect of these operating lease arrangements are given below: As at March 31, 2018 As at March 31, 2017 Receivables not later than one year 17,472 207,266 Receivables later than one year and not later than five years 27,853 23,746 45,325 231,012 31. Segment reporting The operating segments of the Group are as under: Telecom-centric services - Domestic data, international data wholesale voice and network managed services Data Center-centric IT Services Data Center services: Co-location services Cloud and managed services: IT infra services, IT transformation services, remote and onsite infrastructure managed services and delivery platforms Technology integration services: Data Center build, network integration, information security, end user computing and collaborative tools and solutions Applications integration services: Application development and maintenance, application testing, mobility solutions, eLearning, portals, online assessment tools, process and automation. The Chief Operating Decision Maker (“CODM”), i.e, The Board of Directors and the senior management, evaluate the Group’s performance and allocate resources to various strategic business units that are identified based on the products and services that they offer and on the basis of the market served. The measure of profit / loss reviewed by the CODM is “Earnings/loss before interest, taxes, depreciation and amortization” also referred to as “segment operating income / loss”. Revenue in relation to segments is categorized based on items that are individually identifiable to that segment. Bandwidth costs, which form a significant part of the total expenses, is allocated to Network Services. Manpower costs of Technology resources rendering services to support Infrastructure operations, Managed services and Application services, are identified to respective operating segments specifically. The Group believes that the resulting allocations are reasonable. Certain expenses, such as depreciation, technology infrastructure and administrative overheads, which form a significant component of total expenses, are not allocable to specific segments as the underlying services are used