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Accounting Policies of Aurionpro Solutions Ltd. Company

Mar 31, 2015

The accounting policies set out below have been applied consistently to the periods presented in these financial statements.

1.1 Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention, on an accrual basis of accounting and in accordance with the accounting principles generally accepted in India ('Indian GAAP') and comply with the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 which continue to apply under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Act, to the extent notified and applicable. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The financial statements are presented in Indian Rupees rounded off to the nearest lakhs upto two decimals except per share data and where mentioned otherwise.

All assets and liabilities have been classified as current or non- current as per the Companies' normal operating cycle and other criteria set out in Schedule III to the Act. Based on the nature of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities..

2.2 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the reported amount of income and expenses for the period. Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2.3 Revenue recognition

Revenue from software development and consulting services is recognized either on time and material basis or fixed price basis, as the case may be. Revenue on time and material contracts is recognized as and when the related services are performed.

Revenue on fixed price contracts is recognized on the percentage of completion method under which the sales value of performance, including earnings thereon, is recognized on the basis of cost incurred in respect of each contract as a proportion of total cost expected to be incurred.

Revenue from sale of licenses of software products and other products/equipments is recognized on transfer of title to the customer. Maintenance revenue in respect of software products and other products/equipments is recognized on pro rata basis over the period of the underlying maintenance agreement. Revenue is net of excise duty, taxes, rebates and discounts.

Unbilled receivables represent costs incurred and revenues recognised on contracts to be billed in subsequent periods as per the terms of the contract.

Income received in advance represents contractual billings/money received in excess of revenue recognized as per the terms of the contract.

Dividend income is recognised when the Company's right to receive payment is established.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

2.4 Fixed assets and depreciation/amortisation

Tangible Fixed Assets

Tangible fixed assets are stated at cost of acquisition or construction less accumulated depreciation and/or accumulated impairment loss, if any. The cost of fixed assets comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditures related to an item of tangible fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Tangible fixed assets under construction are disclosed as capital work-in-progress.

Profit or loss on disposal of tangible assets is recognised in the Statement of Profit and Loss.

Intangible fixed assets

Intangible assets comprises of goodwill on amalgamation in the nature of merger and computer software acquired separately and are recognised when the asset is identifiable, is within the control of the Company, it is probable that the future economic benefits that are attributable to the asset will flow to the Company and cost of the asset can be reliably measured.

Depreciation and amortisation

Till the previous year ended 31 March 2014, depreciation on tangible fixed assets, except leasehold improvements was provided on straight line method in the manner and rates prescribed in Schedule XIV to the Companies Act, 1956.

Pursuant to the Act being effective from 1 April 2014, the Company has revised the depreciation rates on tangible fixed assets, except for certain class of assets categorised under "Computers" and Plant and machinery, as per the useful life specified in Part 'C' of Schedule II of the Act.

For class of assets categorised under "Computers", based on internal assessment and independent technical evaluation carried out by external valuers, the management believes that useful life of 6 years best represent the period over which management expects to use these assets. Hence, the useful life of Computers is different from the useful life as prescribed under Part 'C' of Schedule II of the Act.

For class of assets categorised under "Plant and machinery", the management on internal assessment believes that useful life of 5 years best represent the period over which management expects to use these assets. Hence, the useful life of Plant and machinery is different from the useful life as prescribed under Part 'C' of Schedule II of the Act.

Leasehold improvements are amortized over the period of lease term or useful life, whichever is lower.

Individual assets costing up to Rupees five thousand are depreciated in full in the period of purchase.

Goodwill on merger is amortised over a period of 5 years or estimated useful life, whichever is shorter.

Software is amortised over a period of 5 years or over license period, whichever is lower.

2.5 Impairment of assets

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life.

2.6 Inventories

Inventories include traded goods and are valued at lower of cost or net realisable value. Cost of inventories comprises all costs of purchase and other costs incurred in bringing the inventory to their present location and condition. Cost is determined on the first-in, first-out (FIFO) basis. The comparison of cost and net realisable value is made on item by item basis.

2.7 Lease

Operating lease

Lease payments under operating lease are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

Assets given by the Company under operating lease are included in fixed assets. Lease income from operating leases is recognised in the Statement of Profit and Loss on a straight line basis over the lease term unless another systematic basis is more representative of the time pattern in which benefit derived from the leased asset is diminished. Costs, including depreciation, incurred in earning the lease income are recognised as expenses. Initial direct costs incurred specifically for an operating lease are deferred and recognised in the Statement of Profit and Loss over the lease term in proportion to the recognition of lease income.

Finance lease

Assets given out on finance lease are shown as amounts recoverable from the lessee. The rentals received on such leases are apportioned between the finance charge / (income) and principal amount using the implicit rate of return. The finance charge / (income) is recognised as income, and principal received is reduced from the amount receivable. All initial direct costs incurred are included in the cost of the asset.

2.8 Investments

Investments are classified into current and long-term investments. Investments that are readily realisable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long- term investments. However, that part of long-term investments which are expected to be realised within twelve months after the reporting date is also presented under "Current assets" as "Current portion of long-term investments" in consonance with the current/ non-current classification scheme of Schedule III to the Act.

Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments. Any reduction in the carrying amount and any reversals of such reductions are charged to the Statement of Profit and Loss.

Long-term investments (including current portion thereof) are carried at cost. A provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is recognized in the Statement of Profit and Loss.

2.9 Taxation

Income-tax expense comprises of current income -tax and deferred tax charge or credit.

Current tax

Provision for current income-tax is recognised in accordance with the provisions of Income-tax Act, 1961 and is made annually based on the tax liability computed after taking credit for tax allowances and exemptions.

Deferred tax

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result from differences between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities and the corresponding deferred tax credit or charge are measured using the tax rates and the tax laws that have been enacted or substantively enacted at the Balance Sheet date. The effect of a change in tax rates on deferred tax assets and liabilities is recognised in the period that includes the enactment date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realized in the future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realisation. The Company has operations in Special Economic Zones (SEZ). Income from SEZ is eligible for 100% deduction for the first five years, 50% deduction for next five years and 50% deduction for another five years, subject to fulfilling certain conditions. In this regard, the Company recognises deferred taxes in respect of those originating timing differences which reverse after the tax holiday period resulting in tax consequences.

Timing differences which originate and reverse within the tax holiday period do not result in tax consequence and, therefore, no deferred taxes are recognised in respect of the same.

Minimum alternate tax

Minimum alternate tax ('MAT') under the provisions of Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss. The credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income-tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each Balance Sheet date and written-down to the extent the aforesaid convincing evidence no longer exists.

2.10 Foreign currency transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transactions. Net exchange gain or loss resulting in respect of foreign exchange transactions settled during the period is recognized in the Statement of Profit and Loss of the period.

Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the year-end at the closing exchange rate and the resultant exchange differences are recognized in the Statement of Profit and Loss. Non-monetary foreign currency items are carried at cost.

2.11 Foreign currency translation

The financial statements are reported in Indian Rupees. The translation of the local currency of each integral foreign entity into Indian Rupees is performed in respect of assets and liabilities other than fixed assets, using the exchange rate in effect at the Balance Sheet date and for revenue and expense items other than the depreciation costs, using average exchange rate during the reporting period. Fixed assets of integral foreign operations are translated at exchange rates on the date of the transaction and depreciation on fixed assets is translated at exchange rates used for translation of the underlying fixed assets. The resultant exchange differences are recognized in the Statement of Profit and Loss.

2.12 Employee benefits Short-term employee benefits

All Employee benefits payable wholly within twelve months of availing employee service are classified as short-term employee benefits. This benefits includes salaries and wages, bonus and ex- gratia. The undiscounted amount of short-term employee benefits to be paid in exchange of employees services are recognised in the period in which the employee renders the related service.

Post employee benefits

Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no obligation to pay any further amounts. The Company makes specified monthly contributions towards Provident Fund and Employees State Insurance Corporation ('ESIC'). The Company's contribution is recognised as an expense in the Statement of Profit and Loss during the period in which employee renders the related service.

Defined benefit plan

The Company's gratuity benefit scheme is a defined benefit plan.

The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the Balance Sheet date.

When the calculation results in a benefit to the Company, the recognised asset is limited to the net total of any unrecognised actuarial losses and past service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.

Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss.

Other long-term employment benefits

Compensated absences

Provision for compensated absences cost has been made based on actuarial valuation by an independent actuary at balance sheet date.

Where employees of the Company are entitled to compensated absences, the employees can carry-forward a portion of the unutilized accrued compensated absence and utilise it in future periods or receive cash compensation at termination of employment for the unutilised accrued compensated absence. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date.

2.13 Employee's Stock Options Plan

In respect of stock options granted pursuant to the Company's Employee Stock Option Scheme ('ESOS'), the intrinsic value of the options (excess of market price of the share over the exercise price of the option) is treated as discount and accounted as employee compensation cost over the vesting period in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 as amended from time to time.

2.14 Earnings per share (EPS)

Basic EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year.

Diluted EPS is computed by dividing the net profit attributable to the equity shareholders for the year using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

2.15 Provisions and contingent liabilities

The Company creates a provision where there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognized in the financial statements.


Mar 31, 2014

The accounting policies set out below have been applied consistently to the periods presented in these financial statements.

1.1 Basis of preparation

The financial statements have been prepared and presented under the historical cost convention, on an accrual basis of accounting and in accordance with the provisions of the Companies Act, 1956 and in accordance with Generally Accepted Accounting Principles (''GAAP'') in India and comply with the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006, issued by the Central Government which, as per clarifcation issued by the Ministry of Corporate Affairs, continues to apply under Section 133 of the Companies Act, 2013 (which has superseded Section 211 (3C) of the Act w.e.f. 12 September 2013), to the extent applicable. The financial statements are presented in Indian Rupees rounded off to the nearest lakhs except per share data and where mentioned otherwise.

2.2 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (''GAAP'') in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amount of income and expenses for the period. Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revisions to accounting estimates are recognized prospectively in current and future periods.

2.3 Current and non-current classifcation

All assets and liabilities are classifed into current and non- current.

Assets

An asset is classifed as current when it satisfes any of the following criteria:

a. it is expected to be realized in, or is intended for sale or consumption in, the company''s normal operating cycle.

b. it is held primarily for the purpose of being traded;

c. it is expected to be realized within 12 months after the reporting date; or

d. it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date

Current assets include the current portion of non-current financial assets.

All other assets are classifed as non-current.

Liabilities

A liability is classifed as current when it satisfes any of the following criteria:

a. it is expected to be settled in the company''s normal operating cycle;

b. it is held primarily for the purpose of being traded;

c. it is due to be settled within 12 months after the reporting date; or

d. the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classifcation.

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classifed as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Company has ascertained its operating cycle as twelve months for the purpose of current and non- current classifcation of assets and liabilities.

2.4 Revenue recognition

Revenue on software development and consulting services is recognized either on time and material basis or fixed price basis, as the case may be. Revenue on time and material contracts is recognized as and when the related services are performed. Revenue on fixed price contracts is recognized on the percentage of completion method under which the sales value of performance, including earnings thereon, is recognized on the basis of cost incurred in respect of each contract as a proportion of total cost expected to be incurred.

Revenue from sale of licenses of software products and other products is recognized on transfer of title to the customer. Maintenance revenue in respect of software products and

other products is recognized on pro rata basis over the period of the underlying maintenance agreement. Revenue is net of taxes, rebates and discounts.

Unbilled receivables represent costs incurred and revenues recognised on contracts to be billed in subsequent periods as per the terms of the contract.

Dividend income is recognised when the Company''s right to receive payment is established.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

2.5 Fixed assets and depreciation

Tangible fixed assets

Tangible fixed assets are carried at cost of acquisition or construction less accumulated depreciation and/or accumulated impairment loss, if any. The cost of fixed assets comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditures related to an item of tangible fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Tangible fixed assets under construction are disclosed as capital work-in-progress.

profit or loss on disposal of tangible assets is recognised in the statement of profit and loss.

Intangible fixed assets

Intangible fixed assets acquired separately are stated at cost of acquisition less accumulated amortization. Goodwill arising on purchase of business or amalgamation is amortised over a period of 5 years or estimated useful life, whichever is shorter. Software is amortised over a period of 5 years or over license period whichever is lower. profit or loss on disposal of intangible assets is recognised in the statement of profit and loss.

Depreciation and amortisation

Depreciation on tangible fixed assets except leasehold improvements is provided using the "Straight Line Method" as per the rates prescribed under Schedule XIV to the Act.

Leasehold improvements are amortized over the period of lease term or useful life, whichever is lower.

Individual assets costing up to Rupees five thousand are depreciated in full in the period of purchase.

The useful lives are reviewed by the management at each financial year-end and revised, if appropriate. In case of a

revision, the unamortised depreciable amount is charged over the revised remaining useful life.

Impairment

In accordance with AS 28 on ''Impairment of Assets'', where there is an indication of impairment of the Company''s assets, the carrying amounts of the Company''s assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. An impairment loss is recognised whenever the carrying amount of an asset or the cash generating unit to which it belong exceeds its recoverable amount. An impairment loss is recognised in the statement of profit and loss or against revaluation surplus, where applicable.

Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life.

2.6 Inventories

Inventories include traded goods and are valued at lower of cost and net realisable value. Cost of inventories comprises all costs of purchase and other costs incurred in bringing the inventory to their present location and condition. Cost is determined on the frst-in, frst-out (FIFO) basis. The comparison of cost and net realisable value is made on item by item basis.

2.7 Lease

Lease payments under operating lease are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.

2.8 Investments

Investments are classifed into current and long-term investments. Investments that are readily realisable and intended to be held for not more than a year from the date of acquisition are classifed as current investments. All other investments are classifed as long-term investments. However, that part of long-term investments which are expected to be realised within twelve months from balance sheet date is also presented under "Current assets" under "Current portion of long- term investments" in consonance with the current/non-current classifcation of revised schedule VI.

Current investments are stated at the lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments.

Long-term investments are stated at cost. A provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is recognized in the statement of profit and loss.

2.9 Accounting for taxes in income

Income-tax expense comprises of current tax expense and deferred tax expense or credit.

Current taxes

Provision for current income-tax is recognised in accordance with the provisions of Income-tax Act, 1961 and is made annually based on the tax liability computed after taking credit for tax allowances and exemptions.

Deferred taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result from differences between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities and the corresponding deferred tax credit or charge are measured using the tax rates and the tax laws that have been enacted or substantively enacted at the balance sheet date. The effect of a change in tax rates on deferred tax assets and liabilities is recognised in the period that includes the enactment date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realized in the future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date to reassess realisation. The Company has operations in Special Economic Zones (SEZ). Income from SEZ is eligible for 100% deduction for the frst five years, 50% deduction for next five years and 50% deduction for another five years, subject to fulfilling certain conditions. In this regard, the Company recognises deferred taxes in respect of those originating timing differences which reverse after the tax holiday period resulting in tax consequences. Timing differences which originate and reverse within the tax holiday period do not result in tax consequence and, therefore, no deferred taxes are recognised in respect of the same.

Minimum alternate tax

Minimum alternate tax (''MAT'') under the provisions of Income Tax Act, 1961 is recognised as current tax in the Statement of profit and Loss. The credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

2.10 Foreign currency transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transactions.

Net exchange gain or loss resulting in respect of foreign exchange transactions settled during the period is recognized in the statement of profit and loss of the period.

Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the year- end at the closing exchange rate and the resultant exchange differences are recognized in the statement of profit and loss. Non-monetary foreign currency items are carried at cost.

2 .11 Foreign currency translation

The financial statements are reported in Indian Rupees. The translation of the local currency of each integral foreign entity into Indian Rupees is performed in respect of assets and liabilities other than fixed assets, using the exchange rate in effect at the balance sheet date and for revenue and expense items other than the depreciation costs, using average exchange rate during the reporting period. Fixed assets of integral foreign operations are translated at exchange rates on the date of the transaction and depreciation on fixed assets is translated at exchange rates used for translation of the underlying fixed assets. The resultant exchange differences are recognized in the statement of profit and loss.

2.12 Employee benefits

Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classifed as short-term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period in which services are rendered.

Post employee benefits Defined contribution plan

The employees'' provident fund scheme is a Defined contribution plan. The Company''s contribution paid/payable under this scheme is recognised as an expense in the statement of profit and loss during the period in which the employee renders the related service.

Defined benefit plan

The Company''s gratuity scheme is a Defined benefit plan. The present value of the obligation under such Defined benefit plan is determined based on actuarial valuation by an independent actuary at the balance sheet date using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under Defined benefit plan is based on the market yields on Government securities as at the balance sheet date. Actuarial gains and losses are recognised immediately in the statement of profit and loss.

Compensated absences

The employees of the Company are entitled to compensated absence. The employees can carry-forward a portion of the unutilized accrued compensated absence and utilize it in future periods. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence which is determined on total cost to company for the portion of unutilized balance standing to the credit of each employee as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date.

2.13 Provisions and contingencies

The Company recognises a provision when there is a present obligation as a result of a past event and it is probable that it would involve an outflow of resources and a reliable estimate can be made of the amount of such obligation. Such provisions are not discounted to their present value and are determined based on the management''s estimation of the amount required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to refect management''s current estimates. A disclosure for a contingent liability is made when there is a possible but not probable obligation or a present obligation that may, but probably will not, entail an outflow of resources. When no present or possible obligation exists and the possibility of an outflow of resources is remote, no provision or disclosure is made.

Loss contingencies arising from claims, litigation, assessment, fnes, penalties, etc. are recorded when it is

probable that a liability has been incurred and the amount can be reasonably estimated.

2.14 Earnings per share (EPS)

Basic EPS is computed by dividing the net profit after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted EPS is computed by dividing the net profit attributable to the equity shareholders for the year using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

f. Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shareholders are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder are in proportion to its share of the paid-up equity capital of the Company.

During the year ended 31 March 2014, the Company has proposed final dividend of Rs. 2 per equity shares (31 March 2013 : Rs. 1.25). The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

h. Aggregate number of shares issued for

consideration other than cash during the period of five years immediately preceding the year-end

i. 400,000 (31 March 2013: Nil) equity shares of Rs..10 each have been allotted as fully paid- up shares to the erstwhile shareholders of Seeinfobiz Private Limited (''Seeinfobiz'') pursuant to the merger of Seeinfobiz with the Company effective 1 April 2012. (refer Note 40)

ii. In terms of the agreement entered into by Aurionpro Solutions Inc, USA (a subsidiary of the Company) with Virat Inc. for purchase of certain business assets of Virat Inc., 100,000 (31 March 2013: Nil) equity shares of Rs..10 each of the Company have been allotted as fully paid- up shares to the shareholders of Virat Inc.

iii. During the year ended 31 March 2012, 1,081,961 equity shares were issued to the shareholder of Kairoleaf Analytics Private Limited on account of amalgamation of Kairoleaf Analytics Private Limited with the Company.

i. Employee stock option

Terms attached to stock options granted to employees are described in Note 43 regarding employee share based payments.

* Amount disclosed under "Other current liabilities" (refer Note 11)

a. Term loan from State Bank of India carries an interest rate of Base Rate 2.20% per annum. This facility is secured by pari-passu hypothecation charge on entire receivables and stock in process (SIP) of the Company. This is also secured by the following:

- First charge on the Company''s computers and furniture and fixtures;

- Pledge of 6 lakhs equity shares of the Company held by the promoters;

- Hypothecation of the properties owned by the promoters;

- Pledge of 190,520 shares of a company purchased out of bank finance i.e. SPS Corp. USA (now merged with Aurionpro Solutions Inc. USA); and

- Pledge of 210,631 shares of Aurionpro Solutions Inc. USA.

Corporate guarantee of Aurionpro Solutions Inc. USA and personal guarantees of promoters and their relatives have also been provided.

b. Term loan from Yes Bank Limited carried an interest rate of Base rate 4.50% per annum and was repayable in quarterly installment over a tenor of 36 months with a moratorium period of 3 months. The facility was secured by exclusive charge on the fixed assets funded by Yes Bank Limited and by pledge of shares of Aurionpro Solutions Limited held by the promoters. Personal guarantees of promoters was also provided. This facility has been repaid in the current year.

c. Term loan from Reliance Capital Limited carries a foating interest rate of 15.50% per annum and is repayable in 18 equal monthly installments (EMI). The facility is secured by receivables from Reliance Capital Limited by Aurofdel Outsourcing Limited, a wholly-owned-subsidiary of the company.

d. Term loan outstanding as on 31 March 2013 from Religare Finvest Limited carried an interest rate of 18.50% per annum and was repayable in 24 equated monthly installments (EMI) of Rs. 2.50 lakhs. This facility was repaid during the year. Term loan outstanding as on 31 March 2014 carries an interest rate of 19.26% per annum and is repayable in 24 EMI of Rs. 2.12 lakhs .

e. Term loan from Tata Capital Financial Services Limited carries an interest rate of 19% per annum and is repayable in 18 EMI of Rs. 2.25 lakhs.

a. Cash credit facility from Axis Bank Limited is

repayable on demand with an interest rate of Base Rate 3.50% per annum. This facility is secured by frst charge on entire current assets of the Company both, present and future. This is also secured by second charge on entire fixed assets of the Company, both, present and future. Personal guarantee of Managing Director and other Directors of the Company have also been provided.

b. Cash credit facility from State Bank of India is repayable on demand with an interest rate of Base Rate 2.20% per annum. This facility is secured by pari-passu hypothecation charge on entire receivables and stock in process (SIP) of the Company. This is also secured by the following:

- frst charge on the Company''s Computers and furniture and fixtures;

- Pledge of 6 lakhs equity shares of the Company held by the promoters;

- Hypothecation of the properties owned by the promoters;

- Pledge of 190,520 shares of a company purchased out of bank finance i.e. SPS Corp. USA (now merged with Aurionpro Solutions Inc. USA); and

- Pledge of 210,631 shares of Aurionpro Solutions Inc. USA.

Corporate guarantee of Aurionpro Solutions Inc. USA and personal guarantees of promoters and their relatives have also been provided.

c. Bank overdraft facility from The Saraswat Co- Operative Bank Limited is repayable on demand with an interest rate of 14.50% per annum. This facility is secured by equitable mortgage of property of estwhile directors of Seeinfobiz Private Limited

d. Term loan from Bajaj Finance Limited carries an interest rate of 20% per annum and is repayable in 12 Equated Monthly Installments of Rs. 1.90 lakhs.

e. Loan from Quest Finlease Private Limited carried an interest rate of 20% per annum and was repayable on demand. This loan has been repaid during the ye a r.

f. Loans and advances from related parties are interest free and repayable on demand. Loan from Vishwanath Prabhu was repaid during the year.

g. The Company has taken ICD''s during the year which carry interest in the range of 15% to 21%. These ICD''s are repayable on demand.

h. Loan taken from erstwhile directors of Seeinfobiz Private Limited was interest free and repayable on demand. The loan was repaid during the year.


Mar 31, 2012

1.1 Basis for preparation of financial statements

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the generally accepted accounting principles in India. The financial statements comply in all material aspects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, as amended and the relevant provisions of the Companies Act, 1956. The Accounting Policies have been consistently applied by the Company and are consistent with those followed in the previous year. Accounting Policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.

1.2 Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) as on the date of financial statements and revenue and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

1.3 Revenue Recognition

a. Revenue from software development and consulting services is recognized either on time and material

basis or fixed price basis, as the case may be. Revenue on time and material contracts is recognized as & when the related services are performed. Revenue on fixed-price contracts is recognized on the percentage of completion method under which the sales value of performance, including earnings thereon, is recognized on the basis of cost incurred in respect of each contract as a proportion of total cost expected to be incurred.

b. Revenue from sale of licenses of software products and other products is recognized on transfer of title in the user license. Maintenance revenue in respect of software products is recognized as & when invoice raised on the client over the period of the underlying maintenance agreement. Revenue is recorded net of service tax & Vat.

c. Revenue from Call Center & Business Process Outsourcing Operations arise from both time based and unit price client contracts. Such revenue is recognized on completion of the related services and is billable in accordance with the specific terms of contracts with clients.

d. Dividend income is recognized when the company's right to receive dividend is established.

e. In other cases, income is recognized when there is no significant uncertainty as to determination and realization.

1.4 Fixed Assets

a. Tangible: Fixed Assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises of purchase consideration and other directly attributable cost of bringing the assets to its working condition for the intended use.

b. Intangible: Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization.

c. Capital Work-in-progress comprises outstanding advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use at the reporting date.

1.5 Depreciation / Amortization

Depreciation on fixed assets is provided on straight-line method over useful life of assets at the rates and in the manner as prescribed in Schedule XIV to the Companies Act, 1956 other than the assets mentioned hereunder. Subsequent upgrades of hardware are entirely charged off to revenue in the year of purchase. Individual assets costing upto Rs.5,000/- are fully depreciated in the year of purchase.

Depreciation/amortization on fixed assets other than Capital Work-in-progress is charged so as to write-off the cost of the assets on the following basis:

1.6 Investments

Investments are classified into long-term investments and current investments based on the management's intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investment are classified as long term investments. Long-term investments are carried at cost and provision is made to recognize any decline, other than temporary, in the value of such investments, determined separately for each investment. Current investments are carried at the lower of the cost and fair value and provision is made to recognize any decline in the carrying value. The comparison of cost and fair value is done separately in respect of each category of investments. Investments in subsidiaries are considered as long-term investments.

1.7 Accounting for Taxes on Income

Income tax is accounted for in accordance with Accounting Standard (AS)-22- "Accounting for taxes on income", notified under the Companies (Accounting Standards) Rules, 2006, as amended. Income tax comprises both current and deferred tax.

Current tax is measured on the basis of estimated tax- able income and tax credits computed in accordance with the provisions of the Income tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization.

1.8 Translation of Foreign Currency Items

Transactions in foreign currency are recorded in the reporting currency at the rate of exchange between reporting currency and foreign currency in force on the date of the transactions. Monetary assets and liabilities denominated in foreign currency are translated at the exchange rate prevalent at the Balance Sheet date, Non- monetary items are carried at cost. The resultant gain/loss is recognized in the Statement of Profit & Loss. Overseas investments are recorded at the rate of exchange in force on the date of allotment/ acquisition.

1.9 Accounting of Employee Benefits

The Company has for its employees in India, benefits such as Gratuity and Provident Fund.

Provident Fund:

The Company's contribution to the provident fund along with the employee share of provident fund de- ducted from the salary is paid into Employee Provident Fund of Government of India. The Company's contribution to EPF is charged to revenue.

Gratuity Plan:

The Company's Gratuity benefit scheme is a defined benefit plan. The company's net obligation in respect of the Gratuity benefit scheme is provided based on the actuarial valuation carried out at the end of each financial year on projected unit credit method.

Actuarial gains and losses are recognized immediately in the Statement of Profit & Loss.

1.10 Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires outflow of resources, which can be reliably estimated. Provisions are determined based on the best estimate of the outflow of the economic benefits required to settle the obligation at the reporting date. Disclosures for a contingent liability is made, without a provision in books, when there is an obligation that may, but probably will not, require outflow of resources. However, when there is an obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed.

1.11 Impairment of Assets

Fixed Assets are reviewed for impairment whenever events or changes in circumstances warrant that the carrying amount of an asset may not be recoverable.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated current realizable value. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds estimated current realizable value of the asset.

1.12 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale or those assets that are not ready for their intended use or sale when acquired. All other borrowing costs are charged to revenue in the period in which they are incurred.

1.13 Operating Lease

Lease arrangement where the risk and rewards incidental to ownership of an asset substantially vest with lessor, are recognized as operating lease. Lease rentals under operating leases are recognized in the profit & loss on a straight - line basis over the period of lease.

1.14 Shares Issue Expenses

Share issue expenses are written off in the years in which incurred.

1.15 Work-in-progress

Work in progress is valued at cost based on the technical evaluation of the projects by the management.

1.16 Earning Per Share

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the period. Diluted earnings per share is computed by dividing the net profit after tax by the sum of the weighted average number of equity shares and dilutive potential equity shares outstanding at the year end.

1.17 Cash and cash equivalents

Cash and cash equivalents for the purpose of cash flow statement on balance sheet date comprise cash at bank and on hand and short term investments with an original maturity of three months or less.


Mar 31, 2011

I. Basis for preparation of financial statements

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the generally accepted accounting principles in India. The financial statements comply in all material aspects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The Accounting Policies have been consistently applied by the company and are consistent with those used in the previous year. Accounting Policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the company.

2 Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) as on the date of financial statements and revenue and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

3. Revenue Recognition

Revenue from software development and consulting services is recognized either on time and material basis or fixed price basis, as the case may be. Revenue on time and material contracts is recognized as & when the related services are performed. Revenue on fixed-price contracts is recognized on the percentage of completion method under which the sales value of performance, including earnings thereon, is recognized on the basis of cost incurred in respect of each contract as a proportion of total cost expected to be incurred.

Revenue from sale of licenses of software products and other products is recognized on transfer of title in the user license. Maintenance revenue in respect of software products is recognized as & when invoice raised on the client over the period of the underlying maintenance agreement. Revenue is recorded net of service tax & Vat.

Revenue from Call Center & Business Process Outsourcing Operations arise from both time based and unit price client contracts. Such revenue is recognized on completion of the related services and is billable in accordance with the specific terms of contracts with clients.

Dividend income is recognized when the company's right to receive dividend is established.

In other cases, income is recognized when there is no significant uncertainty as to determination and realization.

4. Fixed Assets

Tangible: Fixed Assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises of purchase consideration and other directly attributable cost of bringing the assets to its working condition for the intended use.

Intangible: Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization.

Capital Work in Progress comprises outstanding advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use at the reporting date.

5. Depreciation / Amortization

Depreciation on fixed assets is provided on straight-line method over useful life of assets at the rates and in the manner as prescribed in Schedule XIV to the Companies Act, 1956. Software Products are amortized over a period of Five years as considered appropriate by the management. Leasehold improvements are amortized over primary period of lease. Subsequent upgrades of hardware are entirely charged off to revenue in the year of purchase.

Individual assets costing up to Rs. 5000/- are fully depreciated in the year of purchase.

6. Investments

Investments are classified into long-term investments and current investments based on the management's intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investment are classified as long term investments. Long-term investments are carried at cost and provision is made to recognize any decline, other than temporary, in the value of such investments, determined separately for each investment. Current investments are carried at the lower of the cost and fair value and provision is made to recognize any decline in the carrying value. The comparison of cost and fair value is done separately in respect of each category of investments.

7. Accounting for Taxes on Income

Income tax is accounted for in accordance with Accounting Standard (AS)-22- "Accounting for taxes on income", notified under the Companies (Accounting Standards) Rules 2006. Income tax comprises both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization.

8. Translation of Foreign Currency Items

Transactions in foreign currency are recorded in the reporting currency at the rate of exchange between reporting currency and foreign currency in force on the date of the transactions. Monetary assets and liabilities denominated in foreign currency are translated at the exchange rate prevalent at the Balance Sheet date, Non- monetary items are carried at cost. The resultant gain/loss is recognized in the Profit & Loss Account. Overseas investments are recorded at the rate of exchange in force on the date of allotment/ acquisition.

9. Accounting of Employee Benefits

The Company has for its employees in India, benefits such as Gratuity and Provident Fund.

Provident Fund:

The Company's contribution to the provident fund along with the employee share of provident fund deducted from the salary is paid into Employee Provident Fund of Government of India. The Company's contribution to EPF is charged to revenue.

Gratuity Plan:

The Company's Gratuity benefit scheme is a defined benefit plan. The company's net obligation in respect of the Gratuity benefit scheme is provided based on the actuarial valuation made at the end of each financial year on projected unit credit method.

Actuarial gains and losses are recognized immediately in the Profit & Loss Account.

10. Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires outflow of resources, which can be reliably estimated. Provisions are determined based on the best estimate of the outflow of the economic benefits required to settle the obligation at the reporting date. Disclosures for a contingent liability is made, without a provision in books, when there is an obligation that may, but probably will not, require outflow of resources. However, when there is an obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed.

11. Impairment of Assets

The Company assesses at each balance sheet date, whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. The recoverable amount is the greater of the assets net selling price and value in use. After the impairment, assets are depreciated/ amortized on the revised carrying amount over its remaining useful life.

12. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale or those assets that are not ready for their intended use or sale when acquired. All other borrowing costs are charged to revenue in the period in which they are incurred.

13. Operating lease

Lease arrangement where the risk and rewards incidental to ownership of an assets substantially vest with lessor, are recognized as operating lease. Lease rentals under operating leases are recognized in the profit & loss on a straight line basis over the period of lease.

14. Shares Issue Expenses

Share issue expenses are written off in the years in which incurred.

15. Work-in-progress:

Work in progress is valued at cost based on the technical evaluation of the projects by the management.

16. Earning Per Share:

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net Profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at the fair value, which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as at beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues, including for changes effected prior to the approval of the consolidated financial statements by the Board of Directors.

17. Cash and cash equivalents

Cash and cash equivalents for the purpose of cash flow statement on balance sheet date comprise cash at bank and on hand and short term investments with an original maturity of three months or less.




Mar 31, 2010

1. Method of Accounting

The financial statements are prepared under historical cost convention and in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956 read with the Companies (Accounting Standards) Rules, 2006 (Accounting Standards Rules).

2. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principal requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosures of an item or information in the financial statements have been made relying on these estimates to a greater extent.

3. Revenue Recognition

Revenue from software development and consulting services is recognized either on time and material basis or fixed price basis, as the case may be. Revenue on time and material contracts is recognized as and when the related services are performed. Revenue on fixed-price contracts is recognized on the percentage of completion method under which the sales value of performance, including earnings thereon, is recognized on the basis of cost incurred in respect of each contract as a proportion of total cost expected to be incurred.

Revenue from sale of licenses of software products and other products is recognized on delivery/ installation, as the case maybe. Maintenance revenue in respect of software products is recognized as and when invoice raised on the client over the period of the underlying maintenance agreement. Revenue is recorded net service tax & Vat.

Revenue from Call center & Business process Outsourcing Operations arised from both time based and unit price client contracts. Such revenue is recognized on completion of the related services and is billable in accordance with the specific terms of contracts with clients.

4. Fixed Assets

Tangible: Fixed Assets are stated at cost, which comprises of purchase consideration and other directly attributable cost of bringing the assets to its working condition for the intended use.

Intangible: Costs that are directly associated with identifiable and unique software products controlled by the Company, whether developed in-house or acquired, and have probable economic benefits exceeding the cost beyond one year are recognized as software products.

Capital Work in Progress comprises outstanding advances paid to acquire Fixed assets and the cost of fixed assets that are not yet ready for their intended use at the reporting date.

5. Depreciation /Amortization

Software Products are amortized over a period of Five years as considered appropriate by the management. Leasehold improvements are amortized over primary period of lease. Depreciation on other fixed assets is provided on straight-line method over useful life of assets at the rates and in the manner as prescribed in Schedule XIV to the Companies Act, 1956. Subsequent upgrades of hardware are entirely charged off to revenue in the yearof purchase.

6. Investments

Investments are classified into long-term investments and current investments based on the managements intention at the time of purchase. Long-term investments are carried at cost and provision is made to recognize any decline, other than temporary, in the value of such investments, determined separately for each investment. Current investments are carried at the lower of the cost and fair value and provision is made to recognize any decline in the carrying value. The comparison of cost and fair value is done separately in respect of each category of investments.

7. AccountingforTaxes on Income

Provision for current income tax is made on the basis of the estimated taxable income for the current accounting period in accordance with the Income - tax Act, 1961.

Provision for fringe benefit tax is made on the basis of expenses incurred on employees/ other expenses as prescribed under the Income Tax Act, 1961.

Deferred tax resulting from timing differences between accounting and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual/ reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. Where there is Unabsorbed Depreciation or carryforward loss under tax laws, Deferred Tax Asset are recognized only if there is virtual certainty of realization of Assets.

8. Translation of Foreign Currency Items

Transactions in foreign currency are recorded at the rate of exchange in force on the date of the transactions. Monetary assets and liabilities denominated in foreign currency are translated at the exchange rate prevalent at the date of the Balance Sheet, Non Monetary items are carried at cost. The resultant gain/loss are recognized in the Profit & Loss Account. Overseas investments are recorded at the rate of exchange in force on the date of allotment/acquisition.

9. Accounting of Employee Benefits

The Company has for its employees in India, benefits such as Gratuity and Provident Fund.

Provident Fund:

The Companys contribution to the provident fund along with the employee share of provident fund deducted from the salary is paid into Employee Provident Fund of Government of India. The Companys contribution to EPF is charged to revenue.

Gratuity Plan:

The Companys Gratuity benefit scheme is a defined benefit plan. The company net obligation in respect of the Gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior period that benefit is discounted to determine its present value and the fair value of any plan assets is deducted.

The present value of the obligation under such defined benefit plan is determined based on the actuarial valuation using the projected unit credit method.

The Obligation is measured at the present value of the estimated future cash flows. The discount rated used for the determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the Balance sheet date.

Actuarial gains and losses are recognized immediately in the Profit & Loss Account.

10. Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires outflow of resources, which can be reliably estimated. Disclosures for a contingent liability is made, without a provision in

books, when there is an obligation that may, but probably will not, require outflow of resources.

11. Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

12. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale or those assets that are not ready for their intended use or sale when acquired. All other borrowing costs are charged to revenue in the period in which they are incurred.

13. Operating lease

Lease arrangement where the risk and rewards incidental to ownership of an assets substantially vest with lessor, are recognized as operating lease. Lease rentals under operating leases are recognized in the profit & loss over the period of lease.

14. Preliminary & Shares Issue Expenses

Preliminary expenses and share issue expenses are written off in the years in which incurred.

15. Work in progress:

Work in progress is valued at cost plus indirect expenses allocated.The allocation of indirect expenses is based on the technical evaluation of the projects by the management.

16. Earning Per Share:

Basic Earning per Share are Computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earnings per Share is computed by dividing the net Profit after tax by the weighted average number of equity shares considered for deriving basic earnings per Share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The diluted potential equity Shares are adjusted for the proceeds receivable had the shares been actually issued at the fair value, which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as at beginning of the period, unless issued at a laterdate. Dilutive potential equity shares are determined independently foreach period presented.

The numberof shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented forany share splits and bonus shares issues, including for changes effected prior to the approval of the consolidated financial statement by the Board of Directors.

 
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