Accounting Policies of Vedavaag Systems Ltd. Company

Mar 31, 2018

1. SIGNIFICANT ACCOUNTING POLICIES:

a. Statement of Compliance:

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind-AS) specified under Section 133 of companies Act, 2013,read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and presentation requirements of Division II of Schedule III to the Companies Act, 2013, with effect from 1^st April 2017.Previous periods have been restated to Ind-AS.

These are the Company’s first financial statements prepared in accordance with Ind AS and Ind AS 101: First time adoption of Indian Accounting Standards has been applied.

An Explanation of how the transition to Ind-AS has affected the reported Balance Sheet, Profit and Loss account and Cash flows of the Company is provided in Note 31.

b. Basis of Preparation:

The financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair value at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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 measurement date.

c. Functional and Presentation Currency:

These financial statements are presented in Indian Rupees (INR), which is the Company’s functional currency.

d. Use of Estimates and Judgement:

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, disclosures of contingent liabilities and contingent assets at the date of the financial statements and reported amounts of income and expenses during the period. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised.

e. Current and Non-Current classification:

The Company presents assets and liabilities in the balance sheet on current / non-current classification.

An asset is current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the reporting period in 31-3-2018.

- Cash or Cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All the other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period; or

- There is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period.

All the other liabilities are classified as non-current.

Deferred tax assets/liabilities are classified as non-current.

f. Property, Plant and Equipment:

Recognition and measurement

The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if:

(a) It is probable that future economic benefits associated with the item will flow to the entity; and

(b) The cost of the item can be measured reliably.

Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditure directly attributable to the acquisition of the asset. General and specific borrowing costs directly attributable to the construction of a qualifying asset are capitalized as part of the cost.

Depreciation:

The Company depreciates property, plant and equipment over the estimated useful life on a straight-line basis from the date the assets are available for use.

The estimated useful life of assets are reviewed and where appropriate are adjusted, annually.

Subsequent Cost:

Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.

g. Intangible Assets:

An intangible asset shall be recognised if, and only if:

(a) It is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and

(b) The cost of the asset can be measured reliably.

An intangible asset shall be carried at its cost less any accumulated amortisation. Intangible assets are amortized on straight line basis.

h. Investments:

Long term and unquoted current investments are stated at cost and quoted current investments at lower of cost or market value. Provision for diminution in value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

i. Inventory :

Inventories shall be measured at the lower of cost and net realisable value

Cost of Inventory is determined using the FIFO.

j. Revenue Recognition:

The company primarily derives Revenue from rendering IT and IT enabled services, System Integration/IOT Projects.

i) Revenue from time and material engagements is recognized on time proportion basis as and when the services are rendered in accordance with the terms of the contracts with customers.

ii) In case of fixed price contracts, revenue is recognized based on the milestones achieved as specified in the contracts, on proportionate completion basis.

iii) Revenue from maintenance contracts and subscription is recognized on a pro-rata basis over the period of the contract.

iv) Unbilled revenue represents revenue recognized in relation to work done on time and material projects and fixed price projects until the balance sheet date for which billing has not taken place.

v) Interest income is recognized on a time proportion basis taking into account the carrying amount and the effective interest rate. Interest income is included under the head ‘Other income’ in the statement of profit and loss.

k. Income Tax:

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to a business combination, or items directly recognized in equity or in other comprehensive income.

Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amounts are those that are enacted or substantively enacted as at the reporting date and applicable for the period. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and liability simultaneously.

Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority. Deferred tax is recognized in profit or loss except to the extent that it relates to items recognized directly in Other Comprehensive Income or equity, in which case it is recognized in Other Comprehensive Income or equity.

l. Employee Benefits:

Gratuity:

In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The gratuity fund is managed by third party funds. The Company’s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method. The Company recognizes actuarial/Remeasurement gains and losses in other comprehensive income, net of taxes.

Provident Fund:

The Company make contribution to the statutory provident fund in accordance with the Employees’ Provident Funds and Miscellaneous Provision Act, 1952 which is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which the services are rendered.

Leave Encashment:

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 end of the reporting period. The Company recognizes accumulated compensated absences based on actuarial valuation using the projected unit credit method. Non-accumulating compensated absences are recognized in the period in which the absences occur.

m. Impairment of Non-financial Assets:

The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment considering the provisions of Ind AS 36 ‘Impairment of Assets’. If any such indication exists, then the asset’s recoverable amount is estimated.

An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss.

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

n. Earnings per Share:

Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Group by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Group by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

Basic and diluted earnings per equity share are also computed using the earnings amounts excluding the movements in regulatory deferral account balances.

o. Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

p. Critical accounting judgements and key source of estimation uncertainty:

The preparation of financial statements requires management to make judgments, estimates and assumptions that may impact the application of accounting policies and the reported value of assets, liabilities, income, expenses and related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. The estimates and management’s judgments are based on previous experience and other factors considered reasonable and prudent in the circumstances. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

In order to enhance understanding of the financial statements, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is as under:

1. Useful life of property, plant and equipment:

The estimated useful life of property, plant and equipment is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

Useful life of the assets of the group is as per the schedule II of the Companies Act, 2013. The Group reviews at the end of each reporting date the useful life of property, plant and equipment.

2. Recoverable amount of property, plant and equipment:

The recoverable amount of plant and equipment is based on estimates and assumptions regarding in particular the expected market outlook and future cash flows associated with the power plants. Any changes in these assumptions may have a material impact on the measurement of the recoverable amount and could result in impairment.

3. Post-employment benefit plans:

Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the inflation rate. The Group considers that the assumptions used to measure its obligations are appropriate and documented.However,any changes in these assumptions may have material impact on the resulting calculations.

4. Assets held for sale

Significant judgment is required to apply the accounting of non-current assets held for sale under Ind AS 105 “Non-Current Assets held for sale and discontinued Operations”. In assessing the applicability, management has exercised judgment to evaluate the availability of the asset for immediate sale, management’s commitment for the sale and probability of sale within one year to conclude if their carrying amount will be recovered principally through a sale transaction rather than through continuing use.

5. Provisions and contingencies:

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

6. Impairment of Investments:

Investments in Subsidiaries are reviewed for impairment, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such circumstances include, though are not limited to, significant or sustained decline in revenues or earnings and material adverse changes in the economic environment.

Impairment test is performed at entity level. An impairment loss is recognised whenever the carrying amount of Investment exceeds its recoverable amount.

The recoverable amount is the greater of its fair value less costs to sell and value in use. To calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market rates and the risks specific to the asset. The calculation involves use of significant estimates and assumptions which include turnover and gross margin, growth rate and net margin used to calculate projected future cash flows, discount rate and long term growth rate.

q. Recent accounting pronouncements:

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration on March 28, 2018, the Ministry of Corporate Affairs(‘the MCA’) notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

The amendment will come into force from April 1, 2018.The Company has evaluated the effect of this on the financial statements and the impact is not material.

Ind AS 115, Revenue from Contract with Customers: On March 28, 2018, the MCA notified the Ind AS 115. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8, Accounting policies, Changes in Accounting Estimates and Errors.

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)

The effective date for adoption of Ind AS 115 is financial period beginning on or after April 1, 2018.

The company will adopt the standard on April 1, 2018 by using the cumulative catch up transition method and accordingly, comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insufficient.

r. Financial Instruments:

As per Ind AS 109, Financial Instruments, all financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Financial assets are subsequently measured at amortized cost, fair value through profit or loss or fair value through other comprehensive income as the case may be.

On account of adoption of Ind AS 109, the group uses Expected Credit Loss(ECL) model to assess the impairment loss or gain. The group uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors, credit ratings and the Group’s historical experience for customers. The adoption of ECL model did not have a material impact on the financial statements.

Fair value of financial instrument:

In determining the fair value of financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value and such value may never actually be realized.

For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

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Mar 31, 2016

Significant Accounting policies:

1. Basis of Accounting a) The financial statements have been prepared under the

Historical convention and in accordance with applicable

Accounting Standards issued by the Institute of Chartered Accountants of India and relevent presentational requirements of the Companies Act., 1956.

b) Accounting policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets Fixed Assets are stated at cost including related incidental expenditure.

3. Capital Work in Progress Advance paid towards acquisition of Fixed Assets and the cost of Assets not put to use before the yearend are disclosed under this head.

4. Depreciation Depreciation on fixed assets has been provided on Straight

Line method and Depreciation is provided on pro-rata basis as per Schedule VI of Companies Act, 1956.

Effective 1st April2014,the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciation at the rates prescribed in Schedule XIV of the Companies Act,1956.

Depreciation on additions to assets or on sale/discernment of assets, is calculated prorate from the month of such addition or up to the month of such sale/discernment as the case may be.

5. Revenue Recognition Revenue from technical services is recognised on a prorate basis over the period in which services are rendered.

6. Inventory Inventories are valued at cost or net realisable value whichever is lower.

7. Misc. Expenditure Preliminary expenses are amortised over a period of 5(Five) years.

8. Provision for Taxation Provision is made for Income Tax annually based on the tax liability computed after considering tax allowances and exemptions.

9. Foreign Exchange Policy Fixed Assets and Long Term Liabilities are accounted at the rates prevailing on the dates of transactions Current Assets and Current Liabilities are accounted at Rates prevailing on the date of the Balance Sheet.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of Exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that approximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the Rates prevailing on the date of receipt.

Net Foreign Exchange difference on Foreign Currency Transactions is recognised in the Profit and Loss account during the year.

10. Retirment Benefits Contributions to Provident and Superannuation Funds are recognised as expense when incurred.

Liability for gratuity and encashble leave are actuarially determined at the Balance Sheet date.

11. Deferred Tax Liability/Asset To provide and recognise deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

12. Impairment of assets The carrying amount of assets are reviewed at each Balance Sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.

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Mar 31, 2015

1. Basis of Accounting:

a) The financial statements have been prepared under the Historical convention and in accordance with applicable Accounting Standards issued by the Institute of Chartered Accountants of India and relevent presentational requirements of the Companies Act., 1956.

b) Accounting policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets:

Fixed Assets are stated at cost including related incidental expenditure.

3. Capital Work in Progress

Advance paid towards acquisition of Fixed Assets and the cost of Assets not put to use before the year end are disclosed under this head.

4 Depreciation

Depreciation on fixed assets has been provided on Straight Line method and Depreciation is provided on pro-rata basis as per Schedule VI of Companies Act, 1956.

Effective 1st April2014,the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciation at the rates prescribed in Schedule XIV of the Companies Act,1956.

Depreciation on additions to assets or on sale/discardment of assets, is calculated prorata from the month of such addition or upto the month of such sale/discardment as the case may be.

5 Revenue Recognition

Revenue from technical services is recognised on a prorata basis over the period in which services are rendered.

6 Inventory

Inventories are valued at cost or net realisable value whichever is lower.

7 Misc.Expenditure

Preliminary expenses are amortised over a period of 5(Five) years

8 Provision for Taxation

Provision is made for Income Tax annually based on the tax liability computed after considering tax allowances and exemptions.

9 Foreign Exchange Policy

Fixed Assets and Long Term Liabilties are accounted at the rates prevailing on the dates of transactions Current Assets and Current Liabilities are accounted at Rates prevaling on the date of the Balance Sheet.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of Exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that approximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the Rates prevailing on the date of receipt.

Net Foreign Exchange difference on Foreign Currency Transactions is recognised in the Profit and Loss account during the year.

10 Retirement Benefits

Contributions to Provident and Superanuation Funds are recognised as expense when incurred.

Liability for gratuity and encashble leave are actuarially determined at the Balance Sheet date.

11 Deferred Tax Liability/Asset

To provide and recognise deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

12 Impairment of assets

The carrying amount of assets are reviewed at each Balance Sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.

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Mar 31, 2014

1. Basis of Accounting:

a) The financial statements have been prepared under the Historical convention and in accordance with applicable Accounting Standards issued by the Institute of Chartered Accountants of India and relevent presentational requirements of the Companies Act., 1956.

b) Accounting policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets:

Fixed Assets are stated at cost including related incidental expenditure.

3. Capital Work in Progress

Advance paid towards acquisitioin of Fixed Assets and the cost of Assets not put to use before the year end are disclosed under this head.

4 Depreciatiion

Depreciation on fixed assets has been provided on Straight Line method and Depreciation is provided on pro-rata basis as per Schedule VI of Companies Act, 1956.

5 Revenue Recognition

Revenue from technical services is recognised on a prorata basis over the period in which services are rendered.

6 Inventory

Inventories are valued at cost or net realisable value whichever is lower.

7 Misc.Expenditure

Preliminary expenses are amortised over a period of 5 (Five) years.

8 Provision for Taxation

Provision is made for Income Tax annually based on the tax liability computed after considering tax allowances and exemptions.

9 Foreign Exchange Policy

Fixed Assets and Long Term Liabilties are accounted at the rates prevailing on the dates of transactions Current Assets and Current Liabilities are accounted at Rate prevaling on the date of the Balance Sheets.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of Exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that aproximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the Rates prevailing on the date of receipt.

Net Foreign Exchange difference on Foreign Currency Transactions is recognised in the Profit and Loss account during the year.

10 Retirment Benefits

Contributions to Provident and Superanuation Funds are recognised as expense when incurred.

Liability for gratuity and encashble leave are actuarially determined at the Balance Sheet date.

11 Deferred Tax Liability/Asset

To provide and recognise deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

12 Impairment of assets

The carrying amount of assets are reviewed at each Balance Sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.

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Mar 31, 2013

1. Basis of Accounting: a) The financial statements have been prepared under the Historical convention and in accordance with applicable Accounting Standards issued by the Institute of Chartered Accountants of India and relevent presentational requirements of the Companies Act., 1956.

b) Accounting policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets: Fixed Assets are stated at cost including related incidental expenditure.

3. Capital Work in Progress Advance paid towards acquisitioin of Fixed Assets and the cost of Assets not put to use before the year end are disclosed under this head.

4 Depreciatiion Depreciation on fixed assets has been provided on Straight Line

method and Depreciation is provided on pro-rata basis as per Schedule VI of Companies Act, 1956.

5 Revenue Recognition Revenue from technical services is recognised on a prorata basis over the period in which services are rendered.

6 Inventory Inventories are valued at cost or net realisable value whichever is lower.

7 Misc.Expenditure Preliminary expenses are amortised over a period of 5(Five) years

8 Provision for Taxation Provision is made for Income Tax annually based on the tax liability computed after considering tax allowances and exemptions.

9 Foreign Exchange Policy Fixed Assets and Long Term Liabilties are accounted at the rates

prevailing on the dates of transactions Current Assets and Current Liabilities are accounted at Rate prevaling on the date of the Balance Sheets.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of Exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that aproximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the Rates prevailing on the date of receipt.

Net Foreign Exchange difference on Foreign Currency Transactions is recognised in the Profit and Loss account during the year.

10 Retirment Benefits Contributions to Provident and Superanuation Funds are recognised as expense when incurred.

Liability for gratuity and encashble leave are actuarially determined at the Balance Sheet date.

11 Deferred Tax Liability/Asset To provide and recognise deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

12 Impairment of assets The carrying amount of assets are reviewed at each Balance Sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.

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Mar 31, 2012

1. Basis of Accounting:

a) The financial statements have been prepared under the Historical convention and in accordance with applicable. Accounting Standards issued by the Institute of Chartered Accountants of India and relevent presentational requirements of the Companies Act., 1956.

b) Accounting policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets: Fixed Assets are stated at cost including related incidental

expenditure.

3. Capital Work in Progress: Advances paid towards acquisitioin of Fixed Assets and

the cost of Assets not put to use before the year end are disclosed under capital working progress.

4 Depreciatiion: Depreciation on fixed assets has been provided on Straight

Line method.

5 Revenue Recognition Revenue from technical services is recognised on a prorata

basis over the period in which services are rendered.

6 Inventory Inventories are valued at cost or net realisable value

whichever is lower.

7 Misc.Expenditure Preliminary expenses are amortised over a period of

5(Five) years

8 Provision for Taxation Provision is made for Income Tax annually based on the

tax liability computed after considering tax allowances and exemptions.

9 Foreign Currency Transactions Fixed Assets and Long Term Liabilties are accounted at

the rates prevailing on the dates of transactions Current Assets and Current Liabilities are accounted at Rate prevaling on the date ofthe Balance Sheets.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of Exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that aproximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the Rates prevailing on the date of receipt.

Net Foreign Exchange difference on Foreign Currency Transactions is recognised in the Profit and Loss account during the year.

10 Retirement Benefits Contributions to Provident and Superanuation Funds are

recognised as expense when incurred.

11 Deferred Tax Liability/Asset To provide and recognise deferred tax on timing differences

between taxable income and accounting income subject to consideration of prudence.

12 Impairment of assets The carrying amount of assets are reviewed at each

Balance Sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.

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Mar 31, 2010

1. Basis of Accounting

a) The financial statements have been prepared under the Historical Cost convention and in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant presentational requirements of the Companies Act, 1956.

b) Accounting Policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets

Fixed assets are stated at cost including related incidental expenditure.

3. Capital work in progress

Advance paid towards acquisition of fixed assets and the cost of assets not put to use before the year end are disclosed under this head.

4. Depreciation

Depreciation on fixed assets has been provided on Straight Line method and depreciation is provided on pro-rata basis as per Schedule VI of Companies Act, 1956.

5. Revenue Recognition

Revenue from technical services is recognised on a prorata basis over the period in which services are rendered.

Income is recognised fully in case of supply and maintenance contracts where delivery is complete.

6. Inventory

Inventories are valued at cost or net realisable value whichever is lower.

7. Misc. Expenditure

Preliminary expenses and Public issue expenses are amortised over a period of 10 years.

8. Provision for taxation

Provision is made for income tax annually based on the tax liability computed after considering tax allowances and exemptions.

9. Foreign Exchange Policy

Fixed Assets and Long Term Liabilities are accounted at the rates prevailing on the date of transactions. Current assets and current liabilities are accounted at rate prevailing on the date of Balance Sheet.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that approximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the rates prevailing on the date of receipt

Net foreign exchange difference on foreign currency transactions is recognised in the profit & loss account during the year.

10. Retirement Benefits

Contributions to Provident and Superannuation Funds are recognised as expense when incurred.

Liability for gratuity and encashable leave are actuarially determined at the Balance sheet date.

11. Deferred Tax Liability/Asset

To provide and recognise deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

12. Impairment of assets

The carrying amount of assets are reviewed at each Balance sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.