SUBSIDIARY FINANCIALS
2023-24
A DATA ANALYTICS & PROCESS MANAGEMENT COMPANY
ECLERX.COM
SUBSIDIARY FINANCIALS 2023-24
TABLE OF CONTENTS
3-24 ECLERX LLC
25-31 ECLERX LIMITED
32-50 ECLERX PRIVATE LIMITED
51-55 ECLERX INVESTMENTS (UK) LIMITED
56-59 CLX EUROPE S.P.A.
60-63 CLX THAI CO. LIMITED
64-67 CLX EUROPE MEDIA SOLUTIONS GMBH
68-71 CLX EUROPE MEDIA SOLUTION LIMITED
72-76 ECLERX CANADA LIMITED
77-81 ECLERX B.V.
82-87 ECLERX PTY LIMITED
88-92 ECLERX ME INFORMATION TECHNOLOGY CONSULTANTS LLC
93-96 ECLERX SWITZERLAND SA
91-100 ECLIPSE GLOBAL HOLDINGS LLC
101-107 ASEC GROUP LLC
108-112 PERSONIV CONTACT CENTERS, LLC
113-115 AGR OPERATIONS MANILA INC.
116-149 AG RESOURCES (INDIA) PRIVATE LIMITED
150-184 PERSONIV CONTACT CENTERS INDIA PRIVATE LIMITED
Disclaimer: This Annual Report contains forward-looking information to enable investors to comprehend the Company's prospects and make informed investment decisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the management's plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as 'anticipate,' 'estimate,' 'expects,' 'projects,' 'intends,' 'plans,' 'believes,' and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions. The achievement of results is subject to risks, uncertainties, and assumptions. Should known or unknown risks or uncertainties materialise or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated, or projected. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.
eClerx is a registered trademark of eClerx Services Limited.
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ECLERX SERVICES LIMITED
SUBSIDIARY FINANCIALS 2023-24
ECLERX LLC
Directors: Pamela Moss
Bob Horan
Srinjay Sengupta
John Flowers
Address: 286 Madison Avenue,
14th Floor, New York, NY 10017,
United States of America
Auditors: S. R. BATLIBOI & ASSOCIATES LLP
ECLERX SERVICES LIMITED | eClerx LLC
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eClerx LLC
SUBSIDIARY FINANCIALS 2023-24
BALANCE SHEET
Amounts in USD | |||||
Note | As at 31-Mar-2024 | As at 31-Mar-2023 | |||
Assets | |||||
Non-current assets | |||||
Property, plant and equipment | 3 | 1,257,196 | 1,141,353 | ||
Capital work-in-progress | 3 | 3,636 | 60,424 | ||
Right of Use Assets | 23 | 1,659,870 | 758,043 | ||
Intangible assets | 4 | 872,875 | 832,929 | ||
Financial assets | |||||
Non - Current Investments | 5 | 35,333,481 | 35,279,566 | ||
Long term loans | 5 | 4,717,657 | - | ||
Other Financial assets | 8 | 201,971 | 43,892 | ||
Deferred Tax Assets (Net) | 2,454,019 | 1,033,625 | |||
Total | 46,500,705 | 39,149,832 | |||
Current assets | |||||
Financial assets | |||||
Current Investments | 5 | 6,244,171 | 4,044,917 | ||
Trade receivables | 6 | 21,425,682 | 12,090,942 | ||
Cash and cash equivalents | 7 | 8,121,775 | 9,754,037 | ||
Other bank balance | 7 | 43,856 | 123,455 | ||
Other Financial assets | 8 | 6,257,204 | 4,101,499 | ||
Other current assets | 9 | 409,668 | 469,179 | ||
Total | 42,502,356 | 30,584,029 | |||
Total Assets | 89,003,061 | 69,733,861 | |||
Equity and liabilities | |||||
Equity | |||||
Equity share capital | 10 | 33,971,360 | 33,971,360 | ||
Contribution from Holding Company | 10 | 2,967,003 | 2,041,838 | ||
Other equity | 11 | 36,488,453 | 24,448,143 | ||
Total Equity | 73,426,816 | 60,461,341 | |||
Non-current liabilities | |||||
Financial liabilities | |||||
Employee Benefit Obligations | 12 | 235,067 | 208,342 | ||
Other non-current liabilities | 23,233 | - | |||
Lease Liability | 23 | 1,131,581 | 459,105 | ||
Total | 1,389,881 | 667,447 | |||
Current liabilities | |||||
Financial liabilities | |||||
Trade payables | |||||
Total outstanding dues of Micro enterprises and | 13 | - | - | ||
small enterprises | |||||
Total outstanding dues of creditors other than | 13 | 4,229,301 | 1,353,049 | ||
Micro enterprises and small enterprises | |||||
Other financial liabilities | 14 | 3,539,776 | 2,519,265 | ||
Lease Liability | 23 | 681,987 | 474,546 |
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ECLERX SERVICES LIMITED | eClerx LLC
SUBSIDIARY FINANCIALS 2023-24
Amounts in USD | |||||
Note | As at 31-Mar-2024 | As at 31-Mar-2023 | |||
Other current liabilities | 15 | 243,889 | 222,034 | ||
Employee Benefit Obligations | 12 | 4,652,692 | 3,696,436 | ||
Current tax liabilities (net) | 838,719 | 339,743 | |||
Total | 14,186,364 | 8,605,073 | |||
Total equity and liabilities | 89,003,061 | 69,733,861 | |||
Summary of material accounting policies | 2 |
The accompanying notes form an integral part of these standalone special purpose financial statements.
As per our report of even date
For S. R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Vineet Kedia Partner
Membership Number: 212230
Place: Mumbai
Date: 16 May 2024
For and on behalf of the Board of Directors of eClerx LLC
Pamela Moss
Director
ECLERX SERVICES LIMITED | eClerx LLC
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eClerx LLC
SUBSIDIARY FINANCIALS 2023-24
STATEMENT OF PROFIT AND LOSS
Amounts in USD | |||||
Note | Year ended | Year ended | |||
31-Mar-2024 | 31-Mar-2023 | ||||
Revenue from Operations | 16 | 97,032,833 | 66,660,662 | ||
Other Income | 17 | 350,143 | 82,496 | ||
Total income | 97,382,976 | 66,743,158 | |||
Expenses | |||||
Employee Benefit expenses | 18 | 45,542,437 | 40,638,069 | ||
Cost of technical sub-contractors | 11,716,084 | 9,221,584 | |||
Finance cost | 21 | 91,364 | 48,606 | ||
Other expenses | 20 | 25,654,009 | 9,368,346 | ||
Depreciation and Amortisation | 19 | 1,336,276 | 1,246,118 | ||
Total expense | 84,340,170 | 60,522,723 | |||
Profit before tax | 13,042,806 | 6,220,435 | |||
Tax expense | |||||
Current tax | |||||
Pertaining to current year | 3,068,661 | 1,768,206 | |||
Adjustments in respect of current income tax of | 1,34,599 | 150,391 | |||
previous years | |||||
Deferred tax | (88,258) | (561,049) | |||
Income tax expense | 3,115,002 | 1,357,548 | |||
Profit for the year | 9,927,804 | 4,862,887 | |||
Other comprehensive income for the year, net of tax | - | - | |||
Total comprehensive income for the year, net of tax | 9,927,804 | 4,862,887 | |||
Summary of material accounting policies | 2 |
The accompanying notes form an integral part of these standalone special purpose financial statements.
As per our report of even date
For S. R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Vineet Kedia Partner
Membership Number: 212230
Place: Mumbai
Date: 16 May 2024
For and on behalf of the Board of Directors of eClerx LLC
Pamela Moss
Director
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ECLERX SERVICES LIMITED | eClerx LLC
SUBSIDIARY FINANCIALS 2023-24
STATEMENT OF CASH FLOWS
Amounts in USD | |||||
Note | As at 31-Mar-2024 | As at 31-Mar-2023 | |||
Operating activities | |||||
Profit before tax | 13,042,806 | 6220435 | |||
Adjustments to reconcile profit before tax to cash (used in) | |||||
provided by operating activities : | |||||
Depreciation & Amortization Expense | 19 | 1,336,276 | 1,246,118 | ||
Share-based payment expense | 18 | 925,165 | 492,693 | ||
Finance cost | 21 | 91,364 | 48,606 | ||
Profit on sale of current investments | 17 | (114,898) | (9,356) | ||
Interest Income | 17 | (165,359) | (20,652) | ||
Interest on loan to intercompany | (17,657) | - | |||
Bad debts written off | 9,850 | - | |||
Fair value gain on financial instruments at fair value through | 17 | (52,229) | (52,488) | ||
profit or loss | |||||
Operating Profit before working capital Changes | 15,055,318 | 7,925,356 | |||
Working capital adjustments: | |||||
Increase in employee benefit obligations | 12 | 982,981 | 3,38,373 | ||
(Increase) in trade receivables | 6 | (9,344,590) | (2,189,605) | ||
(Increase) in other financial assets, other current and non | 8 | (2,254,272) | (1,207,491) | ||
current assets | |||||
Increase in trade payable , other current and non current | 13 | 3,941,851 | 257,093 | ||
liabilities and provisions | |||||
Cash generated by operating activities | 8381,288 | 5,123,726 | |||
Payment of domestic and foreign taxes (net off refund) | (1,923,916) | (1,712,906) | |||
Net cash flows from operating activities | 6,457,372 | 3,410,820 | |||
Investing Activities | |||||
Purchase of current investments | 5 | (5,135,395) | (4,997,746) | ||
Purchase of Non current investments | 5 | (1,063,647) | (1,001,635) | ||
Proceeds from sale of current investments | 5 | 4,113,000 | 1,009,000 | ||
Redemption/maturity of bank deposits (having original | 8 | 110,370 | 90,042 | ||
maturity of more than three months) | |||||
Purchase of property, plant and equipment (including capital | 3 | (803,369) | (1,083,231) | ||
work in progress) | |||||
Interest received (finance income) | 17 | 134,589 | 7,573 | ||
Net cash flows (used in) generated from investing | (2,644,452) | (5,975997) | |||
activities | |||||
Financing activities | |||||
Finance Cost - Lease | 23 | (91,364) | (48,606) | ||
Principal payment- Lease | 23 | (653,818) | (663,146) | ||
Short term loan given to subsidiary | (4,700,000) | - | |||
Net cash flows used in financing activities | (5,445,182) | (711,752) | |||
ECLERX SERVICES LIMITED | eClerx LLC
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eClerx LLC
SUBSIDIARY FINANCIALS 2023-24
Amounts in USD | ||||||
Note | As at 31-Mar-2024 | As at 31-Mar-2023 | ||||
Net (decrease) / increase in cash and cash equivalents | (1,632,262) | (3,276,929) | ||||
Cash and cash equivalents at the beginning of the year | 9,754,037 | 13,030,966 | ||||
Cash and cash equivalents at the end of the year | 8,121,775 | 9,754,037 | ||||
Summary of material accounting policies | 2 |
The accompanying notes form an integral part of these standalone special purpose financial statements.
As per our report of even date
For S. R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Vineet Kedia Partner
Membership Number: 212230
Place: Mumbai
Date: 16 May 2024
For and on behalf of the Board of Directors of eClerx LLC
Pamela Moss
Director
8
ECLERX SERVICES LIMITED | eClerx LLC
SUBSIDIARY FINANCIALS 2023-24
NOTES TO THE FINANCIAL STATEMENTS
For the year ended March 31, 2024
1. Corporate information | Transactions and balances |
eClerx LLC ("the Company") was incorporated on March 06, 2002 in the state of Texas, United States of America. With effect from April 1, 2007 it became a 100% subsidiary of eClerx Services Limited, a Company incorporated in India. eClerx LLC is a specialist Knowledge and Business Process Outsourcing ("KPO / BPO") Company providing operational support, data management, and analysis solutions and sales and marketing support services to its clients.
The Standalone Special Purpose Financial Statements have been prepared by the management only for the purpose of use by the management of Holding Company for compliance of Annual Performance Report (the "APR") requirement in accordance with RBI Master Direction - Reporting under FEMA Act, 1999, as amended from time to time (the "RBI Master Direction").
2. Basis of preparation
The standalone Special Purpose financial statements of the Company have been prepared in accordance with recognition and measurement principles of Indian Accounting Standards ("Ind AS") specified under section 133 of the Companies Act, 2013 (the "Act") read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, as detailed below.
As the Company is not domiciled in India and hence not registered under the Act, these standalone financial statements have not been prepared to fully comply with the Act, and so they do not reflect all disclosure requirements of the Act.
The standalone financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value :
- Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments)
- Share based payments
The standalone financial statements are presented in "USD" and all values are stated USD, except when otherwise indicated.
Summary of material accounting policies
-
Foreign currencies
The Company's standalone financial statements are presented in USD, which is also the Company's functional currency.
Transactions in foreign currencies are initially recorded by the Company in its functional currency using spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated into the relevant functional currency at exchange rates at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss.
-
Fair value measurement
The Company measures financial instruments, at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: - In the principal market for the asset or liability or,
- In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
ECLERX SERVICES LIMITED | eClerx LLC
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eClerx LLC
SUBSIDIARY FINANCIALS 2023-24
- Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
- Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservableFor assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.c.
-
Revenue recognition
Ind AS 115 Revenue from Contracts with Customers Revenue recognition:
Revenue is recognised upon transfer of control of promised products or services to the customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services.
Arrangement with customers for services rendered by the Company are either on time and material or on fixed price basis. Revenue from contracts on time-and-material basis is recognised as the related services are performed. Revenue from fixed-price contracts where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration, is recognised as per the percentage-of-completion method. Efforts expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved. Revenue from maintenance contracts are recognised on pro- rata basis over the period of the contract. Revenue from sale of service to the Holding Company is recognised as cost plus mark-up on the basis of agreement between the Holding Company and Company.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts and other variable considerations, if any, as specified in the contracts with the customers.
Contract modifications are accounted for when additions, deletions or changes are approved either to the contract scope or contract price. The accounting for modifications of contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is at the standalone selling price. Services added that are not distinct are accounted for on a cumulative catch up basis, while those that are distinct are accounted for prospectively, either as a separate contract, if the additional services are priced at the standalone selling price, or as a termination of the existing contract and creation of a new contract if not priced at the standalone selling price.
The Company presents revenue net of indirect taxes in its statement of profit and loss.
Revenue in excess of billing is classified as contract asset i.e. unbilled revenue while billing in excess of revenue is classified as contract liability i.e. deferred revenue. Contract assets are classified as unbilled receivables when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms. Unbilled Revenues are classified as non-financial asset if the contractual right to consideration is dependent on completion of contractual milestones.
The billing schedules agreed with customers include periodic performance based payments and
- or milestone based progress payments. Invoices are payable within the contractually agreed period.
Deferred contract costs are incremental costs of obtaining a contract which are recognised as assets and amortized over the benefit period.
Interest Income
For all financial instruments measured at amortised cost, interest income is recorded using the effective interest rate ("EIR"), which is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.
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ECLERX SERVICES LIMITED | eClerx LLC