Revenue from Technology Integration Services increased by ₹650 million ($10.04 million), on account of increase in revenues from large network integration, security services and DC build contracts by ₹650 million ($10.04 million). Digital certification services has been moved to Applications Integration Services segment in the financial year 2016-17 and hence the necessary adjustment in the comparative figures of previous year have been done. 48
Board Committees Details relating to Audit, Compensation, Corporate Social Responsibility and Nominating Committees of our board are provided below: Audit Committee Our Audit Committee is comprised of three independent directors, as determined under applicable NASDAQ rules. They are: Mr C B Mouli; Dr S K Rao; and Mr C E S Azariah The primary objective of the Audit Committee is to monitor and provide effective supervision of our financial reporting process with a view towards ensuring accurate, timely and proper disclosures and the transparency, integrity and quality of financial reporting. Our Audit Committee oversees the work carried out in the financial reporting process by our management, including the internal auditors and the independent auditor and reviews the processes and safeguards employed by each. In addition, our Audit Committee has the responsibility of oversight and supervision over our system of internal control over financial reporting, audit process, and process for monitoring the compliance with related laws and regulations. The Audit Committee recommends to our Board the appointment of our independent registered auditors and approves the scope of both audit and non-audit services. All members of the Audit Committee meet the independence requirements and majority of them meet financial literacy requirements as defined by applicable NASDAQ and SEC rules. The Audit Committee held five meetings in person during fiscal year 2016-17. The Audit Committee has adopted a Charter and it is reviewed annually. Compensation Committee Our Compensation Committee consists of one executive and three independent directors as determined under applicable NASDAQ rules, and consists of: (i) Dr T H Chowdary; (ii) Dr S K Rao; (iii) Mr C E S Azariah and (iv) Mr Ananda Raju Vegesna The Compensation Committee of the Board of Directors determines the salaries, benefits and stock option grants for our employees, consultants, directors and other individuals compensated by our Company. The Compensation Committee also administers our compensation plans. The Compensation Committee has adopted a Charter, which is reviewed annually. The Compensation Committee held four meetings in person during fiscal 2016-17. Corporate Social Responsibility Committee
On March 24, 2008 , the Company received a sum of ₹ 112.14 million (comprising of ₹ 12.81 towards face value and ₹ 99.33 million towards securities premium / share premium) .Subsequently, Infinity Satcom Universal communicated to the Company vide their letter dated August 27, 2008 that consequent to the merger petition of Sify Communications Limited amalgamating with Sify Technologies Limited has been withdrawn from the High Court of Madras, that they would focus their attention on the business of Sify Communication Limited and hence shall not contribute the balance money towards the subscription of 12,817,000 Equity Shares on call. On August 29, 2008, the Board of Directors, forfeited the shares allotted and the application monies collected (₹ 112.14 million including sums towards capital and premium). 73
Sify Technologies Limited Consolidated Statement of Changes in Equity (In thousands of Rupees, except share data and as otherwise stated) For year ended March 31, 2017 Particulars Share capital Share premium Share based payment reserve Other of equity Retained earnings / deficit) Total Non- interest Total equity Balance at April 1, 2016 51,495 ) - 7,500,831 Total income for the year - - - (24,697 ) 642,399 617,702 - 617,702 Transactions with owners, recorded directly in equity Call money received 93,750 206,250 - - - 300,000 - 300,000 Dividends paid (incl dividend distribution tax) - - - - (1,69,742 ) (1,69,742 ) - (1,69,742 ) Transaction costs related to equity - - - - (2,010 ) (2,010 ) - (2,010 ) Share-based payment transactions - - 17,638 - - 17,638 - 17,638 Balance at March 31, 2017 26,798 ) - 8,264,419 For year ended March 31, 2016 Particulars Share capital Share premium Share based payment reserve Other of equity Retained earnings / deficit) Total Non- interest Total equity Balance at April 1, 2015 36,662 ) - 7,165,301 Total income for the year - - - 14,833 438,453 453,286 - 453,286 Transactions component component
d) Other financial liabilities Amortised cost for financial liabilities represents amount at which financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount. Financial liabilities at fair value through profit or loss Financial liabilities held for trading are measured at FVTPL. 108
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). 112
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. All shares rank equally with regard to Group’s residual assets. 125,000,000 Equity shares are ₹ 7.75 (March 31, 2016: ₹ 7) paid up per share. 127