Accounting Policies of Ampvolts Ltd. Company

Mar 31, 2025

1. Company overview

The Company was originally incorporated on 27^th March, 2000 as Quest Softech (India) Private Limited
and subsequently, pursuant to Section 31 & Section 21 read with section 44 of Companies Act, 1956
incorporated on 18^th March, 2008 as Quest Softech (India) Limited to carry on business of providing
Software and Hardware consultancy and allied services. The Company has ventured into business sales
and services related to Electric vehicle chargers and charging stations since March 2023. Name of the
Company was changed from Quest Softech (India) Limited to Ampvolts Limited from June 20, 2024.

1.1 Basis of preparation of financial statements

a) Statement of Compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind
AS) as prescribed under section 133 of the Companies Act, 2013 ("the Act"), read with rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards
(Amendment)) Rules 2016 and other provisions of the Act to the extent notified and applicable as
well as applicable guidance note and pronouncements of the Institute of Chartered Accountants of
India (ICAI).

b) Basis of Preparation and presentation

These financial statements have been prepared on the historical cost basis, except for certain assets
and liabilities which are measured at fair values at the end of each reporting period, as explained in
the accounting policies below. Historical cost is generally based on the fair value of the consideration
given in exchange for goods and services.

The statement of financial position (including statement of changes in equity) and the statement
of profit and loss are prepared and presented in the format prescribed in Division II of Schedule
III to the Companies Act, 2013. The cash flow statement has been prepared and presented as per
the requirements of Ind AS 7 "Cash Flow Statements". The disclosure requirements with respect to
items in the balance sheet and statement of profit and loss, as prescribed in Schedule III to the Act,
are presented by way of notes forming part of accounts along with the other notes required to be
disclosed under the notified Accounting Standards.

All assets and liabilities have been classified as current or non-current as per the Company''s normal
operating cycle and other criteria as set out under Ind AS and in the Schedule III to the Act. Based
on the nature of the 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.

Company''s financial statements are presented in Indian Rupees (INR), which is also its functional
currency. All amounts have been rounded off to the nearest lakhs unless otherwise indicated.

c) Key Accounting Estimates and Judgements

The preparation of financial statements requires management to make judgments, estimates and
assumptions in the application of accounting policies that affect the reported balances of Assets
and Liabilities, Disclosure relating to Contingent Liabilities as at date of financial statements and
reported statement of Income and Expense for the period presented. Management believes that the
estimates used in the preparation of the financial statements are prudent and reasonable. Estimates
& underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised prospectively.

The areas involving critical estimates or judgements pertaining to investments, useful life of
property, plant and equipment including intangible asset, current tax expense and tax provisions,
recognition of deferred tax asset and Provisions and contingent liabilities. Estimates and judgements
are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Company and that are believed
to be reasonable under the circumstances.

Impairment of Investments: The Company reviews its carrying value of investments at cost annually,
or more frequently when there is indication for impairment. If the recoverable amount is less than its
carrying amount, the impairment loss is accounted for.

Useful life of Property, Plant and Equipment including intangible asset: Residual values, useful lives
and methods of depreciation of property, plant and equipment are reviewed at each financial year
end and adjusted prospectively, if appropriate.

Taxes: The Company provides for tax considering the applicable tax regulations and based on
probable estimates.

The recognition of deferred tax assets is based on availability of sufficient taxable profits in the
Company against which such assets can be utilized.

Provisions and contingent liabilities: Provision is recognised when the Company has a present
obligation as a result of past event and it is probable that an outflow of resources will be required to
settle the obligation, in respect of which a reliable estimate can be made. Provisions and contingent
liabilities are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

d) Revenue recognition

As per Ind AS 115, Revenue from sales of Electric chargers is recognized when goods are delivered
to the Customer. Revenue from rendering of services is recognised when the performance of
agreed contractual task has been completed. Revenue from charging business is recognized as and
when charging is done by consumer. Revenue from operations is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment
and excluding taxes or duties collected on behalf of the government.

Interest Income

I nterest Income from a Financial Assets is recognised on a time proportion basis using effective
interest rate method.

Dividend Income

Dividend Income is recognised when the Company''s right to receive the amount has been established.

e) Property, Plant and Equipment

Property plant and equipment (PPE) are stated at cost less accumulated depreciation and impairment
losses if any. Cost includes expenditure directly attributable to the acquisition of the asset and cost
incurred for bringing the asset to its present location and condition for its intended use.

On transition to Ind AS, the Company has elected the option of fair value as deemed cost for buildings
and factory buildings as on the date of transition. Other Tangible Assets are restated retrospectively.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognised in
the Statement of Profit and Loss.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet
are disclosed as "Capital work-in-progress" and are stated at cost.

Depreciation is provided on a pro-rata basis on the straight line method based on estimated useful
life prescribed under Schedule II to the Companies Act, 2013.

Residual Value of all the Assets have been considered as NIL.

f) Intangible assets

Separately purchased intangible assets are initially measured at cost. Subsequently, intangible
assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if
any. Intangible assets are amortised on a straight- line basis over the period of their expected useful
lives. The amortisation period and the amortisation method for intangible assets is reviewed at each
financial year end and adjusted prospectively, if appropriate.

g) Income Taxes

Income tax expense for the year comprises of current tax and deferred tax. Income Tax is recognised
in Statement of Profit and Loss, except to the extent that it relates to items recognised in the
comprehensive income or in equity in which case, the tax is also recognised in other comprehensive
income or equity.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using
applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous
years. Management periodically evaluates positions taken in tax return with respect to situations
in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.

Deferred tax is recognised in respect of temporary differences between the carrying amount
of assets and liabilities for financial reporting purposes and the corresponding tax base used for
computation of taxable Income.

A deferred tax liability is recognised based on the expected manner of realisation or settlement of
the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, by the
end of the reporting period. Deferred tax assets are recognised only to the extent that it is probable
that future taxable profits will be available against which the asset can be utilised. Deferred tax
assets are reviewed at each reporting date and reduced to the extent that it is no longer probable
that the related tax benefit will be realised.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in OCI or in equity).

MAT (Minimum Alternate Tax) is recognized as an asset only when and to the extent it is probable
evidence that the Company will pay normal income tax and will be able to utilize such credit during
the specified period. 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.

h) 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 year is recognized in the Statement of Profit and Loss.

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 in the year in which they arise.

Non-monetary foreign currency items are carried at cost.

i) Employee benefits

Short-term employee benefits

Employee benefits payable wholly within twelve months of availing employee service are classified
as short-term employee benefits. This benefit includes salaries and wages bonus and ex- gratia and
compensated absences. 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 employees benefits -

Defined contribution plans - 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 plans - The Company pays gratuity to the employees who have completed five
years of service with the Company at the time of resignation/ superannuation. The gratuity is paid
@15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972.
The liability in respect of gratuity and other post-employment benefits is calculated using the
Projected Unit Credit Method and spread over the period during which the benefit is expected to
be derived from employees'' services. Remeasurement gains and losses arising from adjustments
and changes in actuarial assumptions are recognised in the period in which they occur in Other
Comprehensive Income.

j) Earnings per share (EPS)

In determining Earnings per Share, the Company considers net profit after tax and includes post tax
effect of any exceptional item. Number of shares used in computing basic earnings per share is the
weighted average number of the shares outstanding during the period. Dilutive earning per share
is computed and disclosed after adjusting effect of all dilutive potential equity shares, if any except
when result will be anti - dilutive. Dilutive potential equity Shares are deemed converted as at the
beginning of the period, unless issued at a later date.

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Mar 31, 2024

1. Company overview

The Company was originally incorporated on 27th March, 2000 as Quest Softech (India) Private Limited and subsequently, pursuant to Section 31 & Section 21 read with section 44 of Companies Act, 1956 incorporated on 18^th March, 2008 as Quest Softech (India) Limited to carry on business of providing Software and Hardware consultancy and allied services. The Company has ventured into business sales and services related to Electric vehicle chargers and charging stations since March 2023.

1.1 Basis of preparation of financial statements

a) Statement of Compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under section 133 of the Companies Act, 2013 (“the Act”), read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards (Amendment)) Rules 2016 and other provisions of the Act to the extent notified and applicable as well as applicable guidance note and pronouncements of the Institute of Chartered Accountants of India (ICAI).

b) Basis of Preparation and presentation

These financial statements have been prepared on the historical cost basis, except for certain assets and liabilities which are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The statement of financial position (including statement of changes in equity) and the statement of profit and loss are prepared and presented in the format prescribed in Division II of Schedule III to the Companies Act, 2013. The cash flow statement has been prepared and presented as per the requirements of Ind AS 7 “Cash Flow Statements”. The disclosure requirements with respect to items in the balance sheet and statement of profit and loss, as prescribed in Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria as set out under Ind AS and in the Schedule III to the Act. Based on the nature of the 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.

Company''s financial statements are presented in Indian Rupees (INR), which is also its functional currency. All amounts have been rounded off to the nearest lakhs unless otherwise indicated.

c) Key Accounting Estimates and Judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported balances of Assets and Liabilities, Disclosure relating to Contingent Liabilities as at date of financial statements and reported statement of Income and Expense for the period presented. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Estimates & underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

The areas involving critical estimates or judgments pertaining to investments, useful life of property, plant and equipment including intangible asset, current tax expense and tax provisions, recognition of deferred tax asset and Provisions and contingent liabilities. Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Impairment of Investments: The Company reviews its carrying value of investments at cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

Useful life of Property, Plant and Equipment including intangible asset: Residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Taxes: The Company provides for tax considering the applicable tax regulations and based on probable estimates.

The recognition of deferred tax assets is based on availability of sufficient taxable profits in the Company against which such assets can be utilized.

Provisions and contingent liabilities: Provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions and contingent liabilities are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

d) Revenue recognition

As per Ind AS 115, Revenue from sales of Electric chargers is recognised when goods are delivered to the Customer. Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed. Revenue from charging business is recognised as and when charging is done by consumer. Revenue from operations is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

Interest Income

Interest Income from a Financial Assets is recognised on a time proportion basis using effective interest rate method.

Dividend Income

Dividend Income is recognised when the Company''s right to receive the amount has been established.

e) Property, Plant and Equipment

Property plant and equipment (PPE) are stated at cost less accumulated depreciation and impairment losses if any. Cost includes expenditure directly attributable to the acquisition of the asset and cost incurred for bringing the asset to its present location and condition for its intended use.

On transition to Ind AS, the Company has elected the option of fair value as deemed cost for buildings and factory buildings as on the date of transition. Other Tangible Assets are restated retrospectively.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognised in the Statement of Profit and Loss.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital work-in-progress” and are stated at cost.

Depreciation is provided on a pro-rata basis on the straight line method based on estimated useful life prescribed under Schedule II to the Companies Act, 2013.

Residual Value of all the Assets have been considered as NIL.

f) Intangible assets

Separately purchased intangible assets are initially measured at cost. Subsequently, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any. Intangible assets are amortised on a straight- line basis over the period of their expected useful lives. The amortisation period and the amortisation method for intangible assets is reviewed at each financial year end and adjusted prospectively, if appropriate.

g) Income Taxes

Income tax expense for the year comprises of current tax and deferred tax. Income Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity in which case, the tax is also recognised in other comprehensive income or equity.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years. Management periodically evaluates positions taken in tax return with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding tax base used for computation of taxable Income.

A deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in equity).

MAT (Minimum Alternate Tax) is recognised as an asset only when and to the extent it is probable evidence that the Company will pay normal income tax and will be able to utilize such credit during the specified period. 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.

h) 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 year is recognised in the Statement of Profit and Loss.

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 recognised in the Statement of Profit and Loss in the year in which they arise.

Non-monetary foreign currency items are carried at cost.

i) Employee benefits Short-term employee benefits

Employee benefits payable wholly within twelve months of availing employee service are classified as short-term employee benefits. This benefit includes salaries and wages bonus and ex- gratia and compensated absences. 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 employees benefits -

Defined contribution plans - 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 plans - The Company pays gratuity to the employees who have completed five years of service with the Company at the time of resignation/ superannuation. The gratuity is paid @15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972. The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees'' services. Remeasurement gains and losses arising from adjustments and changes in actuarial assumptions are recognised in the period in which they occur in Other Comprehensive Income.

j) Earnings per share (EPS)

In determining Earnings per Share, the Company considers net profit after tax and includes post tax effect of any exceptional item. Number of shares used in computing basic earnings per share is the weighted average number of the shares outstanding during the period. Dilutive earning per share is computed and disclosed after adjusting effect of all dilutive potential equity shares, if any except when result will be anti -dilutive. Dilutive potential equity Shares are deemed converted as at the beginning of the period, unless issued at a later date.

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Mar 31, 2015

A. Background

The Company was originally incorporated on 27th March, 2000 as Quest Softech (India) Private Limited and subsequently pursuant to section 31/21 read with section 44 of Companies Act, 1956 incorporated on 18th March, 2008 as Quest Softech (India) Limited to carry on business of providing Software and Hardware consultancy and allied services.

b. Basis of Preparation

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with accounting principles generally accepted in India. The Financial Statements comply in all material aspects with the Accounting Standards notified under the Companies (Accounting Standards) Amendment Rules, 2011 and the relevant provisions of the Companies Act, 2013.

Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.

The preparation of the financial statements in conformity with generally accepted accounting principles 'GAAP' requires management to make estimates & assumptions that affect the reported amount of assets, liabilities, revenues & expenses and disclosure of contingent liabilities on the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as on the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future years.

All the assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing & their realisation in cash & cash equivalents, the company had ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

c. Use of Estimates

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income 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 differfrom these estimates.

d. Revenue Recognition:

Revenue from Financial Services rendered is recognised as per terms of the Contract.

Other Income

In other cases, income and expenses are recognized when there is no significant uncertainty as to determination and realization and on accrual basis.

e. Fixed Assets & Depreciation

Fixed Assets are stated at cost of acquisition, or construction inclusive of expenses incidental thereto less accumulated depreciation and impairment loss, ifany.

Effective from April 01,2014, the Company has charged Depreciation based on the revised remaining useful life of the Assets as per the requirements of Schedule II of the Companies Act, 2013.

f. Impairment of Assets

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

g. Intangible Assets

Intangible assets are stated at cost of acquisition, including any cost attributable for bringing the same to its working condition, less amortization overestimated useful life. Software License is amortized on straight line basis over five years.

h. Investments

Current investments are carried at lower of cost and fair value and long term investments are carried at cost. However, provision is made to recognize decline other than temporary in the carrying amount of long term investments. Unquoted investments in the units of mutual funds in the nature of current investments are valued at the net asset value declared by mutual funds in respect of each particular scheme.

i. Transactions in Foreign Currency

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the dates of transaction. All receivables/payables are translated at year end rate and differences therein are accounted in exchange rate gain/loss account. All Cash/Bank balance (monetary items) in foreign currency are translated at year end rates and difference therein are accounted in exchange rate gain/ loss account.

j. Employee Benefits

Company has only one employee employed during the year under audit. Hence Provident Fund and otheremployee benefits are not applicable.

k. Income Tax

Income tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year). Provision for Income Tax is recognised on an annual basis under the taxes payable method, based on the estimated tax liability computed after taking credit for allowances and exemptions in accordance with Income Tax Act, 1961.

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in 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 realization of such assets. Deferred tax assets are reviewed as at each balance sheet date for appropriateness of their carrying value at each balance sheet date.

l. Segment Reporting

The Company is engaged in the business of providing Software and Hardware related consultancy services. Accordingly, there are no separate reportable segments, as per the Accounting Standard on 'Segment Reporting' (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies (Accounting Standards) Amendment Rules, 2011.

m. Earnings Per Share

The basic earnings per share is computed by dividing the net profit/loss attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares.

n. Provisions and Contingencies

Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognized nordisclosed.

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Mar 31, 2014

A. General Information

The Company was originally incorporated on 27th March,2000 as Quest Softech (India) Private Limited and subsequently pursuant to section 31/21 read with section 44 of Companies Act, 1956 incorporated on 18th March,2008 as Quest Softech (India) Limited to carry on business of providing Software and Hardware, consultancy and allied services.

b. Basis of preparation of Financial statements

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with accounting principles generally accepted in India. The Financial Statements comply in all material aspects with the Accounting Standards notified under the Companies (Accounting Standards) Amendment Rules, 2011. the relevant provisions of the Companies Act, 1956, read with the General Circular 15/2013 dated 13th September,2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act,2013

Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company,

All the assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing & their realisation in cash & cash equivalents, the company had ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

c. Use of Estimates

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and (he reported income 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,

d. Revenue Recognition

Revenue from Financial Services rendered is recognised as per terms of the Contract.

Other Income

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

e. Fixed Assets

Fixed Assets are stated at cost of acquisition, or construction inclusive of exp incidental thereto less accumulated depreciation and impairment loss, if any.

f. Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and ir manner prescribed in Schedule XIV to the Companies Act, 1956.Depreciation on assets whose cost individually does not exceed upto 5,000/- is f provided in the year of purchase.

g. Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds th recoverable amounts. Recoverable amount is the higher of an asset's net selling price at its value in use. Value in use is the present value of estimated future cash Hows expected arise from the continuing use of the asset and from its disposal at the end of its useful lift Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

h. Intangible Assets

Intangible assets are stated at cost of acquisition, including any cost attributable for bringing the same to its working condition, less amortization over estimated useful life. Software License is amortized on straight line basis over five years.

i. Investments

Current investments are carried at lower of cost and fair value and long term investments are carried at cost. However, provision is made to recognize decline other than temporary in the carrying amount of long term investments. Unquoted investments in the units of mutual funds in the nature of current investments are valued at the net asset value declared by mutual funds in respect of each particular scheme.

j. Employee Benefits

Company has only one employee employed during the year under audit. Hence Provident Fund and other employee benefits are not applicable

k. Income Tax

Taxes on income are accounted for in accordance with Accounting Standard (AS)-22"Accounting for taxes on income", notified under the Companies (Accounting Standards) Amendment Rules, 2011. 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 lax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized, only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

l. Segment Reporting:

The Company is engaged in the business of providing Software and Hardware related consultancy services. Accordingly, there are no separate reportable segments, as per the Accounting Standard on 'Segment Reporting' (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies (Accounting Standards) Amendment Rules, 2011.

m. Provisions and Contingencies

Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

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Mar 31, 2010

1. Basis of Accounting

The financial statements have been prepared on accrual basis following the historical cost convention in accordance with the Accounting Standards referred to in section 211 (3C) and other requirements of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the results and estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition

(i) Revenue from sale of products is recognized when the risk and reward of ownership of the product is passed on to the customers, which is generally on delivery / installation of software products. Sales are stated as net of Sales tax.

(ii) Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exists.

4 Fixed Assets

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.

5. Depreciation

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. Subsequent upgrades of hardware are entirely charged off to revenue in the year of purchase.

6. Inventories

Cost of inventories comprises all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition. Inventories are valued at Cost or Net Realizable Value, whichever is less.

7. Accounting for Taxes on Income and Deferred Tax

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 carry forward loss under tax laws, Deferred Tax Asset are recognized only if there is virtual certainty of realization of Assets.

8. Foreign Exchange Transactions

Transactions in foreign currency are generally recorded at the exchange rate prevailing on the date of transaction. Monitory items denominated in foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate ruling at that date. Exchange differences on foreign exchange transactions are recognized in the profit and loss account.

9. 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.

10. Provisions and Contingencies

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. Investments

Investments are classified into long-term investments and current investments based on the management''s 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.

12. Accounting of Employee Benefits

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