Notes to Accounts of ASM Technologies Ltd.

Mar 31, 2023

CORPORATE SOCIAL RESPONSIBILITY:

As per Section 135 of the Act, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, promote rural and nationally recognised sports, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Act.

CAPITAL AND OTHER COMMITMENTS

Company has committed to contribute Rs.80 Million to a venture capital fund out of which Rs.42 Million has been paid so far. Amount of such capital commitment outstanding as at March 31, 2023 is Rs.38 million (As at March 31, 2022: Rs. 47 million)

Significant Clients

The Company’s 45% of revenue is derived from one customers (Previous year: 58.18% of revenue from one customers).

Product-wise Information

Company provides single service and hence no product-wise information is necessary to be given.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise of trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations to support its operations. The Company’s principal financial assets include trade and other receivables, rental and bank deposits and cash and cash equivalents, that derive directly from its operations. The Company is exposed to credit and liquidity risk. The Company’s senior management oversees the management of these risks and the Board of Director’s reviews these activities.

i. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument would fluctuate due to changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include trade payables. The Company is not exposed to price risk on the financial date.

The sensitivity analysis in the following sections relate to the positions as at March 31, 2023 and March 31, 2022.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumption has been made in calculating sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2023 and March 31, 2022.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The operations of the Company are both in India and overseas. Company has been providing services to overseas customers. Hence, the Company is currently exposed to the currency risk arising from fluctuation of these foreign currencies and Indian rupee exchange rates.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). At the end of every financial year, the Company makes an assessment whether any loss allowance has to be provided for using the lifetime Expected Credit Loss (ECL) method.

iii. Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company’s board of directors are responsible for liquidity, funding as well as settlement management.

The Company is predominantly equity financed which is evident from the capital structure table. Further, the Company has always been a net cash Company with cash and bank balances along with current financial assets which is predominantly receivables.

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Code on Social Security 2020 (“the Code”) relating employee benefits, during the employment and post employment, has received presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quanitifying the financial impact are yet to be issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.

Dividends:

i) The Board of directors of the Company have declared an interim dividend of Rs. 3/- (previous year: Rs.6/-) per equity share of Rs.10/- fully paid up share during the year ended March 31, 2023.

ii) The Board of directors of the Company have proposed final dividend of Rs.4/- (Previous Year: Rs.2.50/-) per equity share of Rs.10/- fully paid up for the year ended March 31, 2023 which is subject to approval of the members.

Additional Disclosures:

(i) Transactions and balances with companies which have been removed from register of Companies [struck off companies] as at the above reporting periods is Nil.

(ii) The Company has not traded / invested in Crypto currency.

(iii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(iv) The Company is not a declared wilful defaulter by any bank or financial Institution or other lender.

(v) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(vii) Satisfaction of charges registered with HSBC Bank is pending as on March 31, 2023 for the period exceeding 90 days.

The Board of Directors of the company has approved the merger of ASM Digital Engineering Private Limited with the company (w.e.f. 01.04.2023). The company has filed necessary documents with the National Company Law Tribunal(NCLT) and required accounting treatment will be given with effect from the date approved by NCLT.

RECENT AMENDMENTS TO STANDARDS:

Ministry of Corporate Affairs (“MCA”) notifies newstandards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of financial Statements:

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors:

This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates.

Ind AS 12 - Income Taxes:

This amendment has narrowed the scope of the initial recognition exemption so that it doesnot apply to transactions that giverise to equal and off setting temporary differences.

The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The amendments are not expected to have a material impact on the Company.

Previous year figures have been regrouped/ recasted wherever necessary to conform with current year figures.

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Mar 31, 2019

1. Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, promote rural and nationally recognized sports, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

a) Gross amount required to be spent by the Company during the year is Rs.1.46 million

b) Amount spent during the year on the following:

2. Events occurring after balance sheet date:

The Board of directors of the Company have proposed final dividend of Rs. 3 per equity share of Rs.10/- fully paid up for the year ended March 31, 2019.

3. Recent Accounting Pronouncements:

Ind AS 116 Leases was notified by MCA on March 30, 2019 and it replaces Ind AS 17 Leases, including appendices thereto. Ind AS 116 is effective for annual periods beginning on or after April 1, 2019. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for lessees - leases of ‘low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

Lessees will be also required to premeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.

Lessor accounting under Ind AS 116 is substantially unchanged from today’s accounting under Ind AS 17. Lessors will continue to classify all leases using the same classification principle as in Ind AS 17 and distinguish between two types of leases: operating and finance leases.

The Company intends to adopt these standards from April 1, 2019. As the Company does not have any material leases, therefore the adoption of this standard is not likely to have a material impact in its Financial Statements.

4. Previous year figures have been regrouped/ recanted wherever necessary to conform with current year figures.

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Mar 31, 2018

1. CORPORATE INFORMATION

ASM Technologies Limited. (“the Company), established in 1992, is a pioneer in providing world Class Consulting Services in the areas of Engineering Services and Product Engineering Services with successful Offshore Development & Support centres in India and overseas for its global clientele. The shares of the Company are listed in Bombay Stock Exchange.

2.1 Recent accounting pronouncements

Standards issued but not yet effective

Through a Notification dated 28th March 2018, the Ministry of Corporate Affairs has indicated 1st April 2018 as the effective date for the implementation of Ind AS 115- Revenue from Contracts with Customers. In addition, limited amendments have been made to some other Ind AS standards (Ind AS’s 2, 12, 21, 28 and 40).

The company is in the process of assessing the impact of the introduction of Ind AS 115- Revenue from Contracts with Customers and the limited amendments to the other Ind AS Standards. The impact, if any, will be disclosed in the financial statements for the year ended March 31, 2019.

3. First-time adoption of Ind AS

These financial statements of the Company for the year ended March 31, 2018 have been prepared in accordance with Ind AS. For the purpose of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 - “First time adoption of Indian Accounting Standard”, with April 1, 2016 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 2.1 have been applied in preparing the standalone financial statements for the year ended March 31, 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance Sheet, Statement of Profit and Loss, is set out in Note 3.2 to 3.5. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in note 3.1.

3.1 Exemptions availed on first time adoption of Ind AS 101

(i) Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its PPE as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and Ind AS 40 Investment Property.

Accordingly, the Company has elected to measure all of its PPE, investment property and intangible assets at their Previous GAAP carrying value.

(ii) Ind AS 27 requires investments in subsidiaries to be recorded at cost or in accordance with Ind AS 109 in its separate financial statements. However, Ind AS 101 provides an option to measure that investment at one of the following amounts in case the Company decides to measure such investment at cost:

a. Cost as per Ind AS 27 or

b. Deemed cost, which is:

i. Fair value at the entity’s date of transition to Ind AS

ii. Previous GAAP carrying amount at that date

The Company has elected to measure its investments in subsidiaries using deemed cost at the previous GAAP carrying amount as at the date of transition to Ind AS.

3.2 Exceptions applied:

a) Ind AS 101 requires an entity estimates in accordance with Ind ASs at the date of transition to Ind AS to be in consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies), unless there is objective evidence that those estimates were in error.

The Company’s estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required.

- Impairment of financial asset based on expected credit loss model.

b) Ind AS 101 requires a first time adopter to apply the de-recognition provision of Ind AS 109 prospectively for transitions occurring on or after the date of transition to Ind AS.

The Company has applied de-recognition of Ind AS 109 prospectively from the date of transition to Ind AS.

Notes:

1. Under Ind AS, financial assets and financial liabilities designated at fair value through profit and loss (FVTPL) are fair valued at each reporting date with changes in fair value being recognized in the statement of profit and loss. Under previous GAAP, they were measured at cost. Accordingly, adjustments have been made to interest-free lease deposits of long-term nature by restating the same by recognising them initially at fair value and subsequently at amortised cost. Thereby, interest income on deposits have been recognised using effective interest method under "Other income" and rental expense recognised on the straight line method over the period.

2. Under Previous GAAP, rental expenses to be recognised on straight-line basis by equalising the rental payments payable over non-cancellable lease period as against incremental mode of actual payment agreed upon. However, as per Ind AS, equalising the rental expenses over the non-cancellable period of lease is not required if the increment contracted for is for compensating general inflation in cost of maintaining the property of the lessor. Accordingly, rent equalisation reserve earlier recognised for equalising rent has been reversed.

3. Under Previous GAAP, there was no specific accounting standard for investment property. Accounting standard on investments in general required to recognise the investment at cost and recognise dimunition in value which is not temporary. However, as per Ind AS provides specific standard on Investment property which requires recognition of investment property at cost less depreciation. Accordingly, depreciaition is charged on investment property.

4. Under Ind AS, all financial instruments are to be initially recognised at fair value and subsequent measurement shall be either at amortised cost or FVTPL or FVTOCI depending on the nature of instrument. Accordingly, borrowings, which are financial liabilities are intially recognised at fair value. Upfront processing charges collected by bank on disbursement is thereby deducted from the loan amount and recognised over the period of borrowing using effective interest rate method as interest cost.

5. Under Ind AS, actuarial gains/losses on actuarial valuation of defined benefit obligation are to be recognised under Other Comprehensive Income (OCI) as against Previous GAAP where it was recognised in statement of profit or loss.

6. Under Previous GAAP, dividend proposed in a board meeting subsequent to close of financial year is an adjustable event and to be recognised in the year to which it relates to. However, under Ind AS, proposed dividend is not an adjustable event and is to be recognised in the year in which the same is approved.

Defined contribution plan

The Company also has defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs. 23.42 million (For 2016-17 Rs. 21.43 million)

4. Leases

Operating lease: Company as lessee

The Company has operating leases that are non-cancellable for specified periods under arrangements. Rental expense included in the statement of profit and loss for the year ended March 31, 2018 amounts to Rs.15.17 million (March 31, 2017: Rs.12.37 million).

Future minimum lease rentals payable under non-cancellable operating lease agreements as at March 31, 2018, March 31, 2017 and April 1, 2016 are as follows:

5. Related Party Disclosures

i) Names of related parties and related party relationship

Name of entity Relationship

Pinnacle Talent Inc, USA Wholly owned subsidiary

Advanced Synergic Pte Ltd, Singapore Wholly owned subsidiary

ESR Associates Inc, USA Step-down subsdiary

IDS Systems LLP Associate Company

IDS Systems Pvt Ltd Company in which directors are interested

ii) Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

6. Capital and other commitments

(a) Company has committed to contribute Rs.30 milion to a venture capital fund out of which Rs.9 million has been paid so far. Amount of such capital committment outstanding as at March 31, 2018 is Rs.21 million. (March 31, 2017: Rs. Nil and April 1, 2016: Rs. Nil)

(b) For commitments relating to lease arrangements, refer note 25.

7. Based on the information available with the Company, there are no vendors who are registered as Micro and Small Enterprises under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act) as at March 31, 2018, March 31, 2017 and as at April 1, 2016.

8. Segment reporting

The Company belives that assets and liabilities used in the business are not identified to any of the reportable segments, as these are used interchangeably between segments. Accordingly the same has not been provided

Significant Clients

The Company’s 90% of revenue is derived from three customers (Previous year: 93% of revenue from three customers).

Product-wise Information

Company provides single service and hence no product-wise information is necessary to be given.

Non-current operating assets:

Company does not hold any non-current operating assets outside India (which is the entity’s country of domicile).

9. Income taxes

The major components of income tax expense for the years ended March 31, 2018 and March 31, 2017 are:

10. Financial risk management objectives and policies

The Company’s principal financial liabilities comprise of trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations to support its operations. The Company’s principal financial assets include trade and other receivables, rental and bank deposits and cash and cash equivalents, that derive directly from its operations.

The Company is exposed to credit and liquidity risk. The Company’s senior management oversees the management of these risks and the Board of Director’s reviews these activities.

i. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument would fluctuate due to changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include trade payables. The Company is not exposed to price risk on the financial date.

The sensitivity analysis in the following sections relate to the positions as at March 31, 2018 and March 31, 2017.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other postretirement obligations and provisions.

The following assumption has been made in calculating sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

a. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The operations of the Company are both in India and overseas. Company has been providing services to overseas customers. Hence, the Company is currently exposed to the currency risk arising from fluctuation of these foreign currencies and Indian rupee exchange rates.

The following table presents foreign currency risk for the below financial liabilities:

b. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations. The Company’s borrowings are primarily a mix of short-term working capital facilities and long-term borrowings.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). At the end of every financial year, the Company makes an assessment whether any loss allowance has to be provided for using the lifetime Expected Credit Loss (ECL) method.

ii. Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company’s board of directors are responsible for liquidity, funding as well as settlement management.

The table below provides details regarding the contractual maturities of significant financial liabilities

Fair Value Hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents fair value hierarchy of assets and liabilities as at March 31, 2018

11. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders and long-term and short-term borrowings.

The primary objective of the Company’s capital management is to maximise the shareholder’s value.

The Company is predominantly equity financed which is evident from the capital structure table. Further, the Company has always been a net cash Company with cash and bank balances along with current financial assets which is predominantly receivables.

12. Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, promote rural and nationally recognised sports, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.a) Gross amount required to be spent by the Company during the year is Rs.1.89 millions

b) Amount spent during the year on the following:

13. Events occurring after balance sheet date:

The Board of directors of the Company have recommended dividend of Rs. 2.50 per equity share of Rs. 10/fully paid up for the year ended March 31, 2018.

14. Approval of Financial Statements:

The financial statements were approved for the issue by the board of directors on May 24, 2018

15. Previous year figures have been regrouped/ recasted wherever necessary to confirm with current year figures.

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Mar 31, 2017

1 DISCONTINUING OPERATIONS

During the previous financial year Company has transferred its Enterprise Application business to Subsidiary of Alten SA, France, for a consideration of Rs.18.49 Crores. Amount received towards sale of business has been shown as profit from discontinuance of business after deducting the direct cost of sale.

2 SEGMENT REPORTING (AS 17)

In accordance with the Accounting Standard -17 (AS -17) “Segment Reporting” which became mandatory for reporting from 1st April 2001, the Company states that it is in the business of software development and IT related services, The Company’s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

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Mar 31, 2015

1. CORPORATE INFORMATION

ASM Technologies Limited., established in 1992, is a pioneer in providing world Class Consulting Services in Enterprise Solutions for the Packaged ERP Products and in Enterprise Product Development for SMB Segment and in Technology Solutions covering Embedded Systems and System Software to its Global Clientele.

ASM offers a broad spectrum of enterprise services such as configuration, implementation, customization, end-user training and documentation, Post Implementation Support & Maintenance across leading commercial off-the-shelf products like SAP, Oracle Applications, PeopleSoft, JDEdwards and Microsoft Enterprise products. ASM has been providing consulting Services (Product Engineering, Development, Product Support, Porting, Testing and Test Automation) to its Global Clientele in the Embedded Software and System Software space.

ASM has been running ODCs both in India and Overseas successfully for its International Clients providing cost effective Onsite, Offsite and Offshore Services through a team of experienced Engineers and Consultants with extensive technical and Domain expertise, which reinforces its ability to provide solutions to Client needs.

A. Following is the list of related parties

1. Wholly owned subsidiaries

a. Pinnacle Talent Inc, USA

b. Advanced Synergic Pte Ltd, Singapore

2. Step down subsidiaries

a. Abacus Business Solutions Inc, USA

b. ESR Associates Inc, USA

3. Associate company : IDS Systems Pvt Ltd

4. Directors : ASM Technologies Ltd

Mr. M R Vikram, Mr. Rabindra Srikantan, Prof. B S Sonde and Mr. Shekar Viswanathan

5. Key management personnel : Mr. N Krishnan, Mr. Pramod, Mr. Kumar Vaibhav, Ms. Vani, Ms. P N Lakshmi, Mr. SLN Murthy, Mr. Srinivasa Murthy Seshadri

(Rs. in lakhs) 6 CONTINGENT LIABILITIES As at March 31 2015 2014

Corporate guarantee given to Indian Bank, Singapore 2,425 2,164 (on behalf of wholly owned subsidiary, Advanced Synergic Pte Ltd)

Corporate guarantee given to State Bank of India, San Jose, USA 438 358 (on behalf of step down subsidiary, Abacus Business Solutions Inc)

Service Tax claim (Company filed appeal against the order) 159 -

7 Previous year's figures have been recast/regrouped wherever necessary to confirm to the current year's clasifications/presentation

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Mar 31, 2014

1. RELATED PARTY TRANSACTIONS (AS 18) A Following is the list of related parties.

1. Wholly Owned Subsidiaries :

a. Pinnacle Talent Inc, USA

b. Advanced Synergic Pte Ltd., Singapore.

2. Step down Subsidiaries :

a. ESR Associates Inc, USA

b. Abacus Business Solutions Inc.,USA

3. Associate Company : IDS Systems Pvt Ltd

4. Directors : ASM Technologies Limited

Mr. M R Vikram, Mr. Rabindra Srikantan, Prof. B S Sonde and Mr. Shekar Viswanathan

5. Key Management Personnel : Mr. N Krishnan, Mr.Pramod, Mr. Kumar Vaibhav, Ms. Anitha Singan,

Ms. Vani, Mr.Basavaraja A M, Ms. P N Lakshmi

2. SEGMENT REPORTING (AS 17)

In accordance with the Accounting Standard - 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company''s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues

(Rs. in lakhs)

for the year ended March 31, 3. CONTINGENT LIABILITIES 2014 2013

Corporate Guarantee given to Indian Bank, Singapore 2,163.78 2,163.78

(On behalf of wholly owned subsidiary, Advanced Synergic Pte Ltd.)

Corporate Guarantee given to State Bank of India, San Jose. USA 358.09 358.09

Total 2,521.87 2,521.87

4. Previous year''s figures have been recast / regrouped wherever necessary to conform to the current year''s classifications/presentation

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Mar 31, 2013

1.1. The accounts of the company have been prepared using the accrual method based on the historical cost convention.

1.2. Income: Sales include sale of software and Software services. Revenue from sale of software is recognized wherever the sale has been completed with the passing of the title and billed to the clients as per the specific contracts. Revenue from sale of software services is recognized on the basis of percentage of completion method. Miscellaneous income mainly consists of reimbursement of expenses and the same is accounted on accrual basis.

1.3. Expenditure: Expenses are accounted on accrual basis and provision for known liabilities or loss made in the same year.

1.4. Fixed Assets: Fixed Assets are stated at cost of acquisition less accumulated depreciation. Capital-work-in progress comprises outstanding advances paid to acquire fixed assets and cost of fixed assets that are not yet ready for their intended use at the reporting date. Goodwill arising on consolidation or acquisition is not amortized but is tested for impairment.

1.5. Depreciation: Depreciation is provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation for the assets purchased/sold during the year is proportionately charged. Individual assets acquired for less than Rs. 5,000/- are entirely depreciated in the year of acquisition.

1.6. Gratuity Benefit payable to employees of the company as provided in the books of accounts is based on Actuarial Valuation. Table below shows present value of defined benefit obligation:

1.7. Foreign currency transactions: In case of sales made to clients outside India, income is accounted on the basis of the exchange rate prevailing at the end of the previous month of sale. Adjustments are made for any change in sales proceeds on conversion into Indian currency upon actual receipt. Expenditure in foreign currency is accounted at the conversion rate prevailing at the end of the previous month of expenditure is incurred. Debtors and Creditors are stated at exchange rate prevailing on the date of Balance Sheet.

Note: The company has filed application with Central Government seeking approval for re-appointment and Increase in remuneration payable to Managing Director from Rs.31.44 Lakhs to Rs.60.00 Lakhs plus 1% of the Net Profits of the Company with effect from 1.4.2011. After the approval from the Central Government differential amount will be paid as arrears in the year of approval.

2.1 Earnings per share

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.

2.2 Segment Reporting - (AS - 17)

In accordance with the Accounting Standard - 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company''s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

2.3 Previous year''s figures have been recast / regrouped wherever necessary to conform to the current year''s classifications/ presentation.

The accompanying consolidated financial statements include the accounts of ASM Technologies Limited and its following wholly owned Subsidiaries:-

1. Pinnacle Talent Inc, USA

2. Advanced Synergic Pte Ltd, Singapore

And

Step down subsidiary:-

1. ESR Associates Inc, USA,

2. Abacus Business Solutions, Inc.

2.4 Related Party Transactions – (AS – 18)

The Company had transactions with the following related parties.

1. Subsidiaries: Pinnacle Talent Inc, USA & Advanced Synergic Pte Ltd, Singapore.

2. Step down Subsidiary: ESR Associates Inc & Abacus Business Solutions, Inc.

3. Associate Company: IDS Systems Pvt Ltd

4. Directors: ASM Technologies Limited

Mr. M R Vikram, Mr. Rabindra Srikantan, Prof. B S Sonde and Mr. Shekar Viswanathan

5. Directors: Advanced Synergic Pte Ltd

Mr. Venkataramaiyer Sivaramakrishnan and Mr. Rabindra Srikantan

6. Key Management Personnel: Mr. Sundar Ramanathan, Mr. N Krishnan, Mr. Shalabh Singh, Mr. Pramod, Mr. Kumar Vaibhav, Ms. Anitha Singan, Ms. Vani, Mr. Basavaraja A M, Ms. P N Lakshmi, Mr. John Seitz, Mr. Jay Belur, Mr. Dharmesh Parikh, Mr. David Joffe and Mr. Alex Marzano,

Note: The company has filed an application with Central Government seeking approval for re-appointment and Increase in remuneration pay able to Managing Director from Rs. 31.44 Lakhs to Rs. 60.00 Lakhs plus 1 % of the Net Profits of the Company with effect from 1.4.2011. After the approval from the Central Government differential amount will be paid as arrears in the year of approval.

2.5 EARNINGS PER SHARE

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the period.

2.6 SEGMENT REPORTING - (AS - 17)

In accordance with the Accounting Standard - 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company''s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

2.7 Previous year''s figures have been recast / regrouped wherever necessary to conform to the current year''s classifications/ presentation..

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Mar 31, 2012

1.1 Related Party Transactions - (AS - 18)

The Company had transactions with the following related parties.

1. Wholly Owned Subsidiaries:

1. Pinnacle Talent Inc, USA

2. Advanced Synergic Pte Ltd, Singapore

2. Step down subsidiary :-

1. ESR Associates Inc, USA,

2. Abacus Business Solutions, Inc.

3. IDS Systems Private Limited

4. Directors: Mr. M R Vikram, Mr. Rabindra Srikantan, Dr. R P Shenoy, Prof. B S Sonde and Mr. Shekar Viswanathan

5. Key Management Personnel Mr. N Krishnan, Mr. T S Shanbhogue, Mr. Pramod Rao, Ms. Anitha Singan, Mr. Kumar Vaibhav, Ms. Vani, Mr. Balaji Padmakumar, Mr. Vasant Bhat and Ms. P N Lakshmi.

Note: The company has applied to Central Government for Increase in Remuneration of Managing Director from Rs.31.44 Lakhs per annum to Rs.60.00 Lakhs per annum with effect from 8.11.2011. After the approval from the central Government differential amount will be paid as arrears in the year of approval.

1.2 EARNINGS PER SHARE

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.

1.3 CAPITAL COMMITMENT

The estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) is Rs. 22.84 Lakhs.

1.4 SEGMENT REPORTING - (AS - 17)

In accordance with the Accounting Standard - 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company's primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

Rs. In Lakhs

Particulars 31.03.2012 31.03.2011

1.5 CONTINGENT LIABILITY

Corporate Guarantee given to Indian Bank, Singapore 1,900.91 1,900.91 (on behalf of wholly owned subsidiary, Advanced Synergic Pte Ltd)

Corporate Guarantee given to State Bank of India, Chicago - 178.88 (on behalf of wholly owned subsidiary, Pinnacle Talent Inc)

Corporate Guarantee given to State Bank of India, San Jose 358.09 - (on behalf of step down subsidiary, Abacus Business Solutions Inc.)

1.6 Previous year's figures have been recast / regrouped wherever necessary to conform to the current year's classifications / presentation.

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Mar 31, 2011

1. Paisas are rounded off to the nearest rupee.

2. The operations of the company are to develop software and software services, which cannot be expressed in terms of units/ quantity.

Hence it is not possible to give the quantitative information as required by the Schedule VI of the Companies Act, 1956.

3. Deferred Taxes

In accordance with the Accounting Standard – 22 (AS-22) "Accounting for Taxes on Income" which became mandatory for reporting from 1st April 2001, the tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations.

4. Related Party Transactions - (AS - 18)

The Company had transactions with the following related parties.

Wholly Owned Subsidiaries:

1. Pinnacle Talent Inc, USA

2. Advanced Synergic Pte Ltd, Singapore USA

And

Step down subsidiary :-

1. ESR Associates Inc, USA,

2. Abacus Business Solutions, Inc. USA

IDS Systems Private Limited

Directors: Mr. M R Vikram, Mr. Rabindra Srikantan, Dr. R P Shenoy and

Prof. B S Sonde,

Key Management Personnel Mr. N Krishnan, Mr. T S Shanbhogue, Mr. Harisimha, Mr. Pramod, Ms. Anitha Singan, Ms. Vani, Mr. Balaji Padmakumar, Mr. Vasant Bhat and Ms. P N Lakshmi.

5. Earnings per share

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.

6. Capital Commitment

The estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) is Rs. 51.81 Lakhs.

7. Segment Reporting - (AS - 17)

In accordance with the Accounting Standard – 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company’s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

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Mar 31, 2010

1. The companys contribution to the Gratuity has been provided based on the calculation as per actuarial valuation.

2. Foreign currency transactions: In case of sales made to clients outside India, income is accounted on the basis of the exchange rate prevailing at the end of the previous month of sale. Adjustments are made for any change in sales proceeds on conversion into Indian currency upon actual receipt. Expenditure in foreign currency is accounted at the conversion rate prevailing at the end of the previous month of expenditure is incurred. Debtors and Creditors are stated at exchange rate prevailing on the date of Balance Sheet.

3. Previous year figures have been regrouped I rearranged wherever necessary.

4. The operations of the company are to develop software and software services, which cannot be expressed in terms of units/quantity.I it is not possible to give the quantitative information as required by the Schedule VI of the Companies Act, 1956.

5. Income Tax includes Rs. 20,23,118/-paid for theearlier years.

6. Deferred Taxes

In accordance with the Accounting Standard - 22 (AS-22) "Accounting for Taxes on Income" which became mandatory for rep< from 1st April 2001, the tax effect is calculated on the accumulated timing differences at the end of an accounting period bas prevailing enacted regulations.

7. Related Party Transactions - (AS - 18)

The Company had transactions with the following related parties.

Wholly Owned Subsidiaries: Pinnacle Talent Inc, USA & Advanced Synergic Pte Ltd, Singapore.

IDS Systems Private Limited

Directors: Mr. M R Vikram, Mr. Rabindra Srikantan, Dr. R P Shenoy, Prof. B S Sonde,

Key Management Personnel Mr. N Krishnan, Mr. T S Shanbhogue, Mr. Harisimha, Mr. Pramod, Ms. Anitha Singan, Ms.

Mr. Balaji Padmakumar Mr. M S Rajesha and Ms. P N Lakshmi.

8. Earnings per share

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.