Accounting Policies of Aurum Proptech Ltd. Company

Mar 31, 2025

Note 2. Material Accounting Policies

This note provides a list of the material accounting
policies adopted in the preparation of these standalone
financial statements. These policies have been
consistently applied except where a newly issued
accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in
accounting policy hitherto in use.

Note 2.(1). Basis of preparation and presentation

(a) Statement of compliance with Ind AS

The standalone financial statements of the
Company have been prepared on accrual and
going concern basis, in accordance with Indian
Accounting Standards (Ind-AS) notified under
Section 133 of the Companies Act, 2013 (the âActâ)
read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended from time to
time and other relevant provisions of the Act.

(b) Basis of measurement

The standalone financial statements have been
prepared on a historical cost convention on accrual
basis, except for the following material items that
have been measured at fair value as required by
relevant Ind AS:-

i) Certain financial assets and liabilities
measured at fair value (refer accounting policy
2(15) on financial instruments);

ii) Share based payment transactions;and

iii) Defined benefit and other long-term employee
benefits - plan assets measured at fair value.

(c) Classification between current and non-current

All assets and liabilities have been classified
as current or non-current as per the Company''s
normal operating cycle, paragraph 66 and 69 of
Ind-AS 1 and other criteria as set out in Division II of
Schedule III to the Companies Act, 2013.

An asset is treated as current when it is:

i) Expected to be realised or intended to be sold
or consumed in normal operating cycle

ii) Held primarily for the purpose of trading

iii) Expected to be realised within twelve months
after the reporting period, or

iv) 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 other assets are classified as non-current.

A liability is treated as current when:

i) It is expected to be settled in normal operating
cycle

ii) It is held primarily for the purpose of trading

iii) I t is due to be settled within twelve months
after the reporting period, or

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

The terms of the liability that could, at the option
of the counterparty, result in its settlement by
the issue of equity instruments do not affect its
classification.

The Company classifies all other liabilities as nonÂ¬
current.

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

The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents. The
Company has identified twelve months as its
operating cycle.

(d) Presentation currency and rounding off

The financial statements are presented in
'' and all values are rounded to nearest Lakhs
('' 00,000), unless otherwise stated.

(e) Going concern

The Company has prepared the standalone financial
statements on the basis that it will continue to
operate as a going concern.

(f) Use of estimates

The preparation of standalone financial statements
in conformity with Ind AS requires the Management
to make estimate and assumptions that affect
the reported amount of assets and liabilities as
at the Balance Sheet date, reported amount of
revenue and expenses for the year and disclosures
of contingent liabilities as at the Balance Sheet
date. The estimates and assumptions used in the
accompanying standalone financial statements are
based upon the Management''s evaluation of the
relevant facts and circumstances as at the date of
the standalone financial statements. Actual results
could differ from these estimates. Estimates and
underlying assumptions are reviewed on a periodic
basis. Revisions to accounting estimates, if any,
are recognised in the year in which the estimates
are revised and in any future years if the revision
effects such periods. Also key sources of estimation
uncertainty is mentioned below:

i) Useful lives of property, plant and equipment
and intangible assets:

As described in the material accounting policy,
the Company reviews the estimated useful
lives of property, plant and equipment and

intangible assets at the end of each reporting
period.

ii) The fair value measurements and valuation
processes:

Some of the Company''s assets and liabilities
are measured at fair value for financial
reporting purposes. In estimating the fair
value of an asset or liability, the Company
uses market-observable data to the extent it is
available. Where level 1 input are not available,
the Company engages third party valuers,
where required, to perform the valuation.
Information about the valuation techniques
and inputs, used in determining the fair value
of various assets, liabilities and share based
payments are disclosed in notes to standalone
financial statements.

iii) Actuarial valuation:

The determination of Company''s liability
towards defined benefit obligation to
employees is made through independent
actuarial valuation including determination
of amounts to be recognized in the statement
of profit or loss and in other comprehensive
income. Such valuation depend upon
assumptions determined after taking into
account inflation, seniority, promotion and
other relevant factors such as supply and
demand factors in the employment market.
Information about such valuation is provided in
notes to standalone financial statements.

Note 2.(2). Property, plant and equipment

Property, plant and equipment are stated at cost
of acquisition less accumulated depreciation and
accumulated impairment losses, if any. Direct costs are
capitalized until the assets are ready for use and include
inward freight, and expenses incidental to acquisition
and installation. Subsequent expenditures related to
an item of Property, plant and equipment are added to
its book value only if they increase the future benefits
from the existing asset beyond its previously assessed

standard of performance. The carrying amount of
any component accounted for as a separate asset is
derecognised when replaced.

Depreciation methods, estimated useful lives

Depreciation on Property, plant and equipment is
provided when the assets are ready for use on the
straight line method, on a pro rata basis, over the
estimated useful lives of assets, in order to reflect the
period over which the depreciable asset is expected to
be used by the Company. Based on technical evaluation
the management estimates the useful lives of significant
items of property, plant and equipment as follows:

The leasehold improvements are depreciated over the
assets'' useful life or over the shorter of the assets useful
life and the lease term.

Based on technical evaluation, the management believes
that the useful lives as given above best represent
the period over which management expects to use
these assets. Hence the useful lives for these assets is
different from the useful lives as prescribed under Part
C of schedule II of the Companies Act, 2013.

Depreciation on addition to property, plant and
equipment is provided on pro-rata basis from the date
of acquisition.

Depreciation on sale/deduction from property, plant and
equipment is provided up to the date preceding the date
of sale, deduction as the case may be. Losses arising
from the retirement of, and gains or losses arising from
disposal of property, plant and equipment measured
as the difference between amount realised and net
carrying value which are carried at cost are recognized
in the Standalone Statement of Profit and Loss under
âOther income/Other expenses''.

Depreciation methods, useful lives and residual values
are reviewed periodically at each financial year end
and adjusted prospectively, as change in accounting
estimates.

Note 2.(3). Intangible assets and amortization

Intangible assets are recorded at the consideration
paid for acquisition of such assets and are carried at
cost of acquisition less accumulated amortization and
impairment, if any.

Intangible assets are recognized when the asset is
identifiable, is within the control of the Company,
probable that future economic benefits attributable
to the asset will flow to the Company and the cost of
the asset can be reliably measured. Expenditure on
research activities is recognized in the Standalone
Statement of Profit and Loss as incurred. Development
expenditure is capitalised only if the expenditure can be
measured reliably, the product or process is technically
and commercially feasible, future economic benefits
are probable and the Company intends to complete
development and to use or sell the asset.

The Company amortized intangible assets over their
estimated useful lives using the straight line method.
The estimated useful lives of intangible assets are as
follows:

Research costs are expensed as incurred. Software
product development costs are expensed as incurred
unless technical and commercial feasibility of the
project is demonstrated, future economic benefits are
probable, the Company has an intention and ability to
complete and use or sell the software and the costs can
be measured reliably. The costs which can be capitalized
include the cost of material, direct labour or employee
cost, professional fees paid to consultants, overhead
costs that are directly attributable to preparing the
asset for its intended use. Research and development
costs and software development costs incurred under
contractual arrangements with customers are accounted
as expenses in the Standalone Statement of Profit and
Loss.

Internally generated intangible assets (development
costs)

Expenditure on internally developed products is
capitalised if it can be demonstrated that:

(i) it is technically feasible to develop the product for it
to be sold

(ii) adequate resources are available to complete the
development

(iii) there is an intention to complete and sell the
product

(iv) the Company is able to sell the product

(v) sale of the product will generate future economic
benefits, and

(vi) expenditure on the project can be measured
reliably.

Capitalised development costs are amortized over the
periods (3-7 years) the Company expects to benefit
from selling the products developed. The amortisation
expense is included within the âdepreciation and
amortisation expense'' in the Standalone Statement of
Profit and Loss.

Development expenditure not satisfying the above
criteria and expenditure on the research phase of internal
projects are recognized in the Standalone Statement of
Profit and Loss as incurred.

Note 2.(4). Intangible assets under development

Intangibles which are not ready for intended use as on
the date of Balance Sheet are disclosed as Intangible
assets under development.

Intangible assets under development include costs
associated with the development of Software/Web
Applications for internal use and external sale. These
assets are recognized when all the following conditions
are met:

- The technical feasibility of completing the
Software/Web Applications so that it will be
available for use or sale is demonstrated.

- Management intends to complete the Software /
Web Applications and use or sell it.

- There is an ability to use or sell the Software /Web
Applications.

- It can be demonstrated how the Software /
Web Applications will generate probable future
economic benefits.

- Adequate technical, financial, and other resources
to complete the development and to use or sell the
Software/Web Applications are available.

- The expenditure attributable to the Software/Web
Applications during its development can be reliably
measured.

The costs capitalized include all directly attributable
costs necessary to create, produce, and prepare the
asset to be capable of operating in the manner intended
by management. These costs typically include:

- Salaries and wages of employees directly involved
in the development.

- Cost directly incurred for employees involved in the
development.

- Costs of materials and services consumed in
development.

- Depreciation of tools and equipment (if any) used in
development.

Subsequent to initial recognition, intangible assets under
development are carried at cost less any accumulated
impairment losses. They are tested for impairment
annually, and whenever there is an indication that the
asset may be impaired. Upon completion, these assets
are reclassified as intangible assets and are amortized
on a systematic basis over their estimated useful life
from the date they are available for use.

Note 2.(5). Impairment of non-financial assets

The Company assesses at each year end whether there
is any objective evidence that a non financial asset or
a group of non financial assets is impaired. If any such
indication exists, the Company estimates the asset''s
recoverable amount and the amount of impairment loss.

An impairment loss is calculated as the difference
between an asset''s carrying amount and recoverable

amount. Losses are recognized in Standalone Statement
of Profit and Loss and reflected in an allowance account.
When the Company considers that there are no realistic
prospects of recovery of the asset, the relevant amounts
are written off. If the amount of impairment loss
subsequently decreases and the decrease can be related
objectively to an event occurring after the impairment
was recognized, then the previously recognized
impairment loss is reversed through Standalone
Statement of Profit and Loss.

The recoverable amount of an asset or cash-generating
unit (as defined below) is the greater of its value in use
and its fair value less costs to sell. In assessing value in
use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that
reflects current market assessments of the time value of
money and the risks specific to the asset. For the purpose
of impairment testing, assets are grouped together into
the smallest group of assets that generates cash in
flows from continuing use that are largely independent
of the cash inflows of other assets or groups of assets
(the âcash-generating unitâ).

Note 2.(6). Leases

Company as a lessee:

The Company''s lease asset classes primarily consist
of leases for office premises. The Company assesses
whether a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether: (i) the contract involves the use of an
identified asset (ii) the Company has substantially all of
the economic benefits from use of the asset through the
period of the lease and (iii) the Company has the right to
direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset (âROUâ) and a
corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term
of twelve months or less (short-term leases) and low
value leases. For these short-term and low value leases,

the Company recognizes the lease payments as an
operating expense on a straight-line basis over the term
of the lease.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

Certain lease arrangements includes the options to
extend or terminate the lease before the end of the lease
term. ROU assets and lease liabilities includes these
options when it is reasonably certain that they will be
exercised.

The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
lease term. The lease liability is initially measured
at amortized cost at the present value of the future
lease payments. Lease liabilities are remeasured with
a corresponding adjustment to the related right of use
asset if the Company changes its assessment if whether
it will exercise an extension or a termination option.

Company as a lessor:

At the inception of the lease the Company classifies
each of its leases as either an operating lease or a
finance lease. The Company recognizes lease payments
received under operating leases as income on a straightÂ¬
line basis over the lease term. In case of a finance lease,
finance income is recognized over the lease term based
on a pattern reflecting a constant periodic rate of return
on the lessor''s net investment in the lease.

Note 2.(7). Employee benefits

(a) Short-term obligations

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees is recognized in
the year during which the employee rendered the

services. These benefits comprise salaries, wages

and performance incentives.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

The Company has defined contribution plans
for post employment benefits in the form of
provident fund, employees'' state insurance,
labour welfare fund, pension fund (NPS)
and superannuation fund in India which are
administered through Government of India
and/or Life Insurance Corporation of India
(LIC).

(ii) Defined benefit Plan

Gratuity: The Company has defined benefit
plans for post employment benefits in
the form of gratuity for its employees in
India. The gratuity scheme of the Company
is administered through Life Insurance
Corporation of India (LIC). The cost of the
defined benefit gratuity plan and the present
value of the gratuity obligation are determined
using actuarial valuations. Actuarial gains
and losses are recognized immediately in the
Other Comprehensive Income (OCI) as income
or expense (net of taxes).

An actuarial valuation involves making various
assumptions that may differ from actual
developments in the future. These include
the determination of the discount rate; future
salary increases and mortality rates. Due to the
complexities involved in the valuation and its
long-term nature, a defined benefit obligation
is highly sensitive to changes in these
assumptions. All assumptions are reviewed at
each reporting date.

The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate for plans operated in India, the
management considers the interest rates of
government bonds where remaining maturity
of such bond correspond to expected term of
defined benefit obligation.

The mortality rate is based on publicly available
mortality tables. Those mortality tables tend

to change only at interval in response to
demographic changes. Future salary increases
and gratuity increases are based on expected
future inflation rates.

(c) Share based payments

Stock options granted to employees of the Company
and its subsidiaries (direct and step down) under
the stock option scheme covered by Securities and
Exchange Board of India (Share based employee
benefits) Regulations, 2014 are accounted using
the fair value method. Under the equity settled
share-based payment, the fair value on the grant
date of the award given to employees is recognized
in the Standalone Statement of Profit and Loss with
a corresponding increase in equity over the vesting
period.

The fair value of the options at the grant date is
calculated by an independent valuer basis âBlack
Scholes model''. At the end of each reporting period,
apart from the non-market vesting condition, the
expense is reviewed and adjusted to reflect changes
to the level of options expected to vest. When the
options are exercised, the Company issues fresh
equity shares. The fair value of options granted to
the employees of its subsidiaries are accounted as
âInvestment in subsidiariesâ on a graded vesting
basis over the vesting period of the option.

Note 2.(8). Foreign currency transactions

i) Functional and presentation currency: Items
included in the standalone financial statements
are measured using the currency of the primary
economic environment in which the entity operates
(âthe functional currency''). The standalone financial
statements are presented in Indian rupee (''), which
is the Company''s functional and presentation
currency.

ii) Foreign currency transactions and balances:

a) On initial recognition, all foreign currency
transactions are recorded by applying to
the foreign currency amount the exchange
rate between the functional currency and
the foreign currency at the date of the
transaction. Gains/losses arising out of
fluctuation in foreign exchange rates between
the transaction date and settlement date are

recognized in the Standalone Statement of
Profit and Loss.

b) Monetary assets and liabilities denominated
in foreign currencies are translated at the
functional currency spot rates of exchange
at the reporting date and the exchange
differences are recognized in the Standalone
Statement of Profit and Loss.

c) Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the dates of the initial transactions. NonÂ¬
monetary items measured at fair value in a
foreign currency are translated using the
exchange rates at the date when the fair value
is determined. The gain or loss arising on
translation of non-monetary items measured at
fair value is treated in line with the recognition
of the gain or loss on the change in fair value of
the item (i.e., translation differences on items
whose fair value gain or loss is recognized in
OCI or profit or loss are also recognized in OCI
or profit or loss, respectively).

Note 2.(9). Fair value measurement

The Company measures financial instruments, such as,
investments at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset
or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability
accessible to the Company.

All assets and liabilities for which fair value is measured
or disclosed in the standalone financial statements are
categorized within the fair value hierarchy, described as
follows, based on the lowest level input that is significant
to the fair value measurement as a whole:

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

- Level 2 â Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable

- Level 3 â Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable

The management determines the policies and
procedures for both recurring fair value measurement
and disclosure. For the purpose of fair value disclosures,
the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and
risks of the asset or liability and the level of the fair value
hierarchy as explained above.

Note 2.(10). Revenue from contracts with customers

Revenue from contracts with customers is recognized
when control of the services are transferred
(performance obligation), to the customer at an amount
that reflects the consideration, to which the Company
expects to be entitled in exchange for those goods or
services.

Revenue 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.
The Company has concluded that it is the principal in its
revenue arrangements since it is the primary obligor in
the revenue arrangements as it has pricing latitude and
is also exposed to credit risks.

Rental income receivable under operating lease is
recognized on straight-line basis over the term of lease,
except where alternative basis is more representative
of pattern of benefit to be derived from leased asset.
leased incentive granted are recognized as integral part
of total rental income to be received. Contingent rental
are recognized as income in accounting period in which
they are earned.

Income from Information technology services
is recognized on rendering of services based on
agreements / arrangements with the concerned parties
over the period of time.

Revenues recognized in excess of invoicing are
classified as contract assets (which is classified as
unbilled revenue) while invoicing in excess of revenues
are classified as contract liabilities (which is classified
as unearned revenues).

2.(11). Other Income

Dividend income from investments is recognized when
the right to receive payment is established.

Interest income is recorded using the effective interest
rate (EIR). EIR is the rate that exactly discounts the
estimated future cash payments or receipts over the
expected life of the financial instrument.

2.(12). Taxes

The income tax expense or credit for the period is the tax
payable on the current period''s taxable income based
on the applicable income tax rate adjusted by changes
in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.

(a) Current income tax

Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and establishes provisions where
appropriate.

Current tax assets and liabilities are offset when
there is a legally enforceable right to offset the
recognized amount and there is an intention to
settle the asset and liability on a net basis.

(b) Deferred tax

Deferred income tax is recognized using the
balance sheet approach. Deferred income tax
assets and liabilities are recognized for deductible
and taxable temporary differences arising between
the tax base of assets and liabilities and their
carrying amount, except when the deferred income
tax arises from initial recognition of Goodwill or
from the initial recognition of an asset or liability
in a transaction that is not a business combination
and affects neither accounting nor taxable profit or
loss at the time of the transaction.

Deferred income tax assets are recognized to the
extent that it is probable that taxable profit will be

available against which the deductible temporary
differences and the carry forward of unused tax
credits and unused tax losses can be utilised.

The carrying amount of deferred income tax assets
is reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred income tax asset to be
utilised. Deferred tax assets and liabilities are
measured using substantively enacted tax rates
expected to apply to taxable income in the years in
which the temporary differences are expected to be
received or settled.

Deferred tax liabilities are not recognized for
temporary differences between the carrying
amount and tax bases of investments in subsidiaries
where the Company is able to control the timing of
the reversal of the temporary differences and it is
probable that the differences will not reverse in the
foreseeable future.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to set off assets
against liabilities representing the current tax and
where the deferred tax assets and liabilities relate
to taxes on income levied by the same governing
taxation laws.

Mar 31, 2024

2 SUMMARY OF MATERIAL ACCOUNTING POLICIES

2.1 Basis of preparation and presentation

(a) Statement of Compliance with Ind AS

The standalone financial statements of the Company have been prepared on accrual and going concern basis, in accordance with Indian Accounting Standards (Ind-AS) notified under Section 133 of the Companies Act, 2013 (the âActâ) read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act.

Accounting policies have been consistently applied to all the years presented unless otherwise stated

(b) Basis of measurement

The standalone financial statements have been prepared on a historical cost convention on accrual basis, except for the following

material items that have been measured at fair value as required by relevant Ind AS:-

i) Certain financial assets and liabilities measured at fair value (refer accounting policy 2.14 on financial instruments)

ii) Share based payment transactions

iii) Defined benefit and other long-term employee benefits

(c) Classification between Current and Noncurrent

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle, paragraph 66 and 69 of Ind-AS 1 and other criteria as set out in Division II of Schedule III to the Companies Act, 2013.

An asset is treated as current when it is:

i) Expected to be realised or intended to be sold or consumed in normal operating cycle

ii) Held primarily for the purpose of trading

iii) Expected to be realised within twelve months after the reporting period, or

iv) 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 other assets are classified as non-current. A liability is treated as current when:

i) It is expected to be settled in normal operating cycle

ii) It is held primarily for the purpose of trading

iii) It is due to be settled within twelve months after the reporting period, or

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

The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

(d) Presentation currency and rounding off The financial statements are presented in '' and all values are rounded to nearest Lakhs ('' 00,000), except when otherwise indicated.

(e) Going concern

The Company has prepared the standalone financial statements on the basis that it will continue to operate as a going concern

(f) Use of estimates

The preparation of standalone financial statements in conformity with Ind AS requires the Management to make estimate and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses for the year and disclosures of contingent liabilities as at the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon the Management''s evaluation of the relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates, if any, are recognized in the year in which the estimates are revised and in any future years if the revision effects such periods. Also key sources of estimation uncertainty is mentioned below:

i) Useful lives of property, plant and equipment and intangible assets:

As described in the material accounting policy, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

ii) The fair value measurements and valuation processes:

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or liability, the Company uses market-observable data to the extent it is available. Where level 1 input are not available, the Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs, used in determining the fair value of various assets, liabilities and share based payments are disclosed in notes to standalone financial statements.

iii) Actuarial valuation:

The determination of Company''s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognized in the statement of profit or loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to standalone financial statements.

2.2 Property, plant and equipment

and include inward freight, and expenses incidental to acquisition and installation. Subsequent expenditures related to an item of Property, plant and equipment are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Depreciation methods, estimated useful lives

Depreciation on Property, plant and equipment is provided when the assets are ready for use on the straight line method, on a pro rata basis, over the estimated useful lives of assets, in order to reflect the period over which the depreciable asset is expected to be used by the Company. Based on technical evaluation the management estimates the useful lives of significant items of property, plant and equipment as follows:

Based on technical evaluation, the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence the useful lives for these assets is different from the useful lives as prescribed under Part C of schedule II of the Companies Act, 2013.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition.

Depreciation on sale/deduction from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case may be. Losses arising from the retirement of, and gains or losses arising from disposal of Property, plant and equipment measured as the difference between amount realized and net carrying value which are carried at cost are recognized in the Statement

of Profit and Loss. under âOther Income/Other Expenses''.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted prospectively, as change in accounting estimates.

2.3 Intangible assets and amortization

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost of acquisition less accumulated amortization and impairment, if any.

Intangible assets are recognized when the asset is identifiable, is within the control of the Company, probable that future economic benefits attributable to the asset will flow to the Company and the cost of the asset can be reliably measured. Expenditure on research activities is recognized in the statement of profit and loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Company intends to complete development and to use or sell the asset.

The Company amortized intangible assets over their estimated useful lives using the straight line method. The estimated useful lives of intangible assets are as follows:

Intangible assets Useful Economic Life

Computer Software 3 - 7 years

Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labor or employee cost, professional fees paid to consultants, overhead costs that are directly attributable to preparing the asset for its intended use. Research and development costs and software development costs incurred under contractual arrangements with customers are accounted as expenses in the Statement of Profit and Loss.

Internally generated intangible assets (development costs) Expenditure on internally developed products is capitalised if it can be demonstrated that:

(i) it is technically feasible to develop the product for it to be sold

(ii) adequate resources are available to complete the development

(iii) there is an intention to complete and sell the product

(iv) the Company is able to sell the product

(v) sale of the product will generate future economic benefits, and

(vi) expenditure on the project can be measured reliably.

Capitalised development costs are amortized over the periods (3- 7 years) the Company expects to benefit from selling the products developed. The amortization expense is included within the âdepreciation and amortization expense'' in the standalone statement of profit and loss.

Development expenditure not satisfying the above criteria and expenditure on the research phase of internal projects are recognized in the standalone statement of profit and loss as incurred.

2.4 Intangible Assets Under Development as follows:

Intangibles which are not ready for intended use as on the date of Balance sheet are disclosed as Intangible assets under development.

Intangible assets under development include costs associated with the development of software for internal use and external sale. These assets are recognized when all the following conditions are met:

- The technical feasibility of completing the software so that it will be available for use or sale is demonstrated.

- Management intends to complete the software and use or sell it.

- There is an ability to use or sell the software.

- I t can be demonstrated how the software will generate probable future economic benefits.

- Adequate technical, financial, and other resources to complete the development and to use or sell the software are available.

- The expenditure attributable to the software during its development can be reliably measured.

The costs capitalized include all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management. These costs typically include:

- Salaries and wages of employees directly involved in the development.

- Costs of materials and services consumed in development.

- Depreciation of tools and equipment (if any) used in development.

Subsequent to initial recognition, intangible assets under development are carried at cost less any accumulated impairment losses. They are tested for impairment annually, and whenever there is an indication that the asset may be impaired. Upon completion, these assets are reclassified as intangible assets and are amortized on a systematic basis over their estimated useful life from the date they are available for use.

2.5 Impairment of non-financial assets

The Company assesses at each year end whether there is any objective evidence that a non financial asset or a group of non financial assets is impaired. If any such indication exists, the Company estimates the asset''s recoverable amount and the amount of impairment loss.

An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognized in Statement of Profit and Loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and

the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through Statement of Profit and Loss.

The recoverable amount of an asset or cashgenerating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash in flows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the âcash-generating unitâ).

2.6 Leases

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term. In case of a finance lease, finance income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net investment in the lease.

Company as a lessee

The Company''s lease asset classes primarily consist of leases for office premises. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (âROUâ) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (shortterm leases) and low value leases. For these shortterm and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

2.7 Employee benefits

(a) Short-term obligations

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees is recognized in the year during which the employee rendered the services. These benefits comprise salaries, wages and performance incentives.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

The Company has defined contribution plans for post employment benefits in the form of provident fund, employees'' state insurance, labour welfare fund, pension fund (NPS) and superannuation fund in India which are administered through Government of India and/or Life Insurance Corporation of India (LIC).

(ii) Defined benefit Plan

are recognized immediately in the Other Comprehensive Income (OCI) as income or expense (net of taxes).

An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its longterm nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

(c) Share based payments

Stock options granted to employees of the Company and its subsidiaries (direct and step down) under the stock option scheme covered by Securities and Exchange Board of India (Share based employee benefits) Regulations, 2014 are accounted using the fair value method. Under the equity settled share-based payment, the fair value on the grant date of the award given to employees is recognized int the statement of profit and loss with a corresponding increase in equity over the vesting period.

The fair value of the options at the grant date is calculated by an independent valuer basis

âBlack Scholes model''. At the end of each reporting period, apart from the non-market vesting condition, the expense is reviewed and adjusted to reflect changes to the level of options expected to vest. When the options are exercised, the Company issues fresh equity shares.The fair value of options granted to the employees of its subsidiaries are accounted as â"Investment in subsidiariesââââ on a graded vesting basis over the vesting period of the option.

2.8 Foreign currency transactions

i) Functional and presentation currency: Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (âthe functional currencyâ). The financial statements are presented in Indian rupee (''), which is the Companyâs functional and presentation currency.

ii) Foreign currency transactions and balances:

a) On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction. Gains/losses arising out of fluctuation in foreign exchange rates between the transaction date and settlement date are recognized in the profit and loss.

b) Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date and the exchange differences are recognized in the profit and loss

c) Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Nonmonetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition

of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively).

2.9 Fair value measurement

The Company measures financial instruments, such as, investments at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability accessible to the Company.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

â¢ Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities

â¢ Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

â¢ Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

The management determines the policies and procedures for both recurring fair value measurement and disclosure. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or

liability and the level of the fair value hierarchy as explained above.

2.10 Revenue from contracts with customers

Revenue from operations is recognized when control of the goods or services are transferred (performance obligation), to the customer at an amount that reflects the consideration, to which the Company expects to be entitled in exchange for those goods or services.

Revenue 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. The Company has concluded that it is the principal in its revenue arrangements since it is the primary obligor in the revenue arrangements as it has pricing latitude and is also exposed to credit risks.

The Board of Directors of the Company in its meeting held on May 15, 2019 has approved to include in the main objects clause of Memorandum of Association of the Company, the business of leasing of immovable and movable properties of all kinds. Accordingly, Company has shown its income from rent as revenue from operations.

Rental income receivable under operating lease is recognized on straight-line basis over the term of lease, except where alternative basis is more representative of pattern of benefit to be derived from leased asset. leased incentive granted are recognized as integral part of total rental income to be received. Contingent rental are recognized as income in accounting period in which they are earned.

Income from Information technology services is recognized on rendering of services based on agreements / arrangements with the concerned parties.

Revenues recognized in excess of invoicing are classified as contract assets (which is classified as unbilled revenue) while invoicing in excess of revenues are classified as contract liabilities (which is classified as unearned revenues).

2.11 Other Income

Dividend income from investments is recognized when the right to receive payment is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and the applicable rate of interest. Income from current investments are recognized periodically based on fair value through profit and loss (FVTPL) as on reporting date. Retained gains/ (losses) are recognized on the date on which these investments are sold.

2.12 Taxes

(a) Current income tax

Current income tax relating to items is recognized outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid. Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amount and there is an intention to settle the asset and liability on a net basis.

(b) Deferred tax

when the deferred income tax arises from initial recognition of Goodwill or from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing the current tax and where the deferred tax assets and liabilities relate to taxes on income levied by the same governing taxation laws.

Mar 31, 2023

1 GENERAL CORPORATE INFORMATION

Aurum PropTech Limited (formerly known as Majesco Limited) (âCompanyâ) is a public limited company domiciled in India and is listed on the BsE Limited (BsE) and National stock exchange of India Limited (NsE). the Company is in the business of software development for the real estate and other services relating to real estate. Up till September 21,2020, the Company had a subsidiary in the usA and other stepdown subsidiaries in various geographies, including one in India. the subsidiaries were in the business of providing core software solutions for property and casualty (âp&Câ) and life and annuity (âL&Aâ) insurance providers, allowing them to manage policy administration, claims management and billing function.

Currently the Company is operating directly and through its subsidiaries it has newly formed or acquired in India and abroad.

the Board of Directors approved the standalone financial statements for the year ended March 31, 2023 and authorized for issue on April 27, 2023.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES2.1 Basis of preparation and presentation(a) Statement of Compliance with Ind AS

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting standards (Ind As) as prescribed under section 133 of the Companies Act ,2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

(b) Basis of measurement

The standalone financial statements have been prepared on a historical cost convention on accrual basis, except for the following material items that have been measured at fair value as required by relevant Ind AS:-

i) Certain financial assets and liabilities measured at fair value (refer accounting policy 2.14 on financial instruments)

ii) share based payment transactions

iii) Defined benefit and other long-term employee benefits

All assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the rendering of service and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current and noncurrent classification of assets and liabilities.

The preparation of standalone financial statements in conformity with Ind AS requires the Management to make estimate and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses for the year and disclosures of contingent liabilities as at the Balance sheet date. the estimates and assumptions used in the accompanying financial statements are based upon the Management''s evaluation of the relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates, if any, are recognised in the year in which the estimates are revised and in any future years if the revision effects such periods. Also key sources of estimation uncertainty is mentioned below:

i) useful lives of property, plant and equipment and intangible assets:

As described in the significant accounting policy, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

ii) The fair value measurements and valuation processes:

some of the Company''s assets and liabilities are measured at fair value for

financial reporting purposes. In estimating the fair value of an asset or liability, the Company uses market-observable data to the extent it is available. Where level 1 input are not available, the Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs, used in determining the fair value of various assets, liabilities and share based payments are disclosed in notes to standalone financial statements.

iii) Actuarial valuation:

The determination of Company''s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognized in the statement of profit or loss and in other comprehensive income. such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to standalone financial statements.

2.2 Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition less accumulated depreciation and accumulated impairment losses, if any. Direct costs are capitalized until the assets are ready for use and include inward freight, and expenses incidental to acquisition and installation. Subsequent expenditures related to an item of Property, plant and equipment are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Depreciation methods, estimated useful lives

is expected to be used by the Company. Based on technical evaluation the management estimates the useful lives of significant items of property, plant and equipment as follows:

Property, plant and equipment	useful Life
Buildings	28 years
Computers	2 years
Plant and equipment	2 - 5 years
Furniture and fixtures	5 years
Vehicles	5 years
Office equipment	2 - 5 years
Leasehold land	Lease term ranging from 95-99 years

Based on technical evaluation, the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence the useful lives for these assets is different from the useful lives as prescribed under part C of schedule II of the Companies Act, 2013.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted prospectively, as change in accounting estimates.

2.3 Intangible assets and amortization

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost of acquisition less accumulated amortization and impairment, if any.

The Company amortized intangible assets over their estimated useful lives using the straight line method. The estimated useful lives of intangible assets are as follows:

Intangible assets	useful Life
Computer software	1 - 7 years

Research costs are expensed as incurred. software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. the costs which can be capitalized include the cost of material, direct labor, professional fees paid to consultants, overhead costs that are directly attributable to preparing the asset for its intended use. Research and development costs and software development costs incurred under contractual arrangements with customers are accounted as expenses in the Statement of Profit and Loss.

2.4 Impairment of non-financial assets

At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, management estimates the recoverable amount. Recoverable amount is higher of an asset''s net selling price and value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit and Loss statement to the extent carrying amount exceeds recoverable amount. Assessment is also done at each Balance sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exists or may have decreased.

2.5 Leases Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net investment in the lease.

Company as a lessee

the Company''s lease asset classes primarily consist of leases for office premises. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (âRouâ) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (shortterm leases) and low value leases. For these shortterm and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Lease liability and Rou asset have been separately presented in the Balance sheet and lease payments have been classified as financing cash flows.

2.6 Employee benefits

(a) Short-term obligations

the undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees is recognized in the year during which the employee rendered the services. These benefits comprise compensated absences such as paid annual leave and performance incentives.

(b) Other long-term employee benefit obligations(i) Defined contribution plan

The Company has defined contribution plans for post employment benefits in the form of provident fund, employees'' state insurance, labour welfare fund, pension fund (Nps) and superannuation fund in India which are administered through Government of India and/or Life Insurance Corporation of India (LIC).

(ii) Defined benefit plans

Gratuity: The Company has defined benefit plans for post employment benefits in the form of gratuity for its employees in India. The gratuity scheme of the Company is administered through Life Insurance Corporation of India (LIC). Liability for defined benefit plans is provided on the basis of actuarial valuations, as at the Balance Sheet date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the projected unit credit method. Actuarial gains and losses are recognized immediately in the other Comprehensive Income (oCI) as income or expense (net of taxes).

Compensated absences: The employees of the Company are also entitled for other long-term benefit in the form of compensated absences as per the policy of the Company. Leave encashment vests with employees on an annual basis for leave balance above the upper limit as per the Company''s policy. At the time of retirement, death while in employment or on termination of employment leave encashment vests equivalent to salary payable for number of days of accumulated leave balance subject to an upper limit as per the Company''s policy. Liability for such benefit is provided on the basis of actuarial valuation, as at the Balance Sheet date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the projected unit credit method. Actuarial gains and losses are recognized immediately in the Profit and Loss statement as income or expense.

stock options granted to employees of the Company and its subsidiaries (direct and step down) under the stock option scheme covered by securities and Exchange Board of India

(Share based employee benefits) Regulations, 2014 are accounted using the fair value method. The fair value of options granted to its employees is recognized in the statement of profit and loss on a graded vesting basis over the vesting period of the option. The fair value of options granted to the employees of its subsidiaries are accounted as âInvestment in subsidiariesâ on a graded vesting basis over the vesting period of the option.

2.7 Foreign currency transactionsi) Functional and presentation currency: the

standalone financial statements are prepared in Indian Rupees. the Indian Rupee is the functional currency of the Company.

ii) Foreign currency transactions and balances:

translation of foreign currency into Indian Rupees has been carried out as under:

a) Both monetary and non-monetary foreign currency assets and liabilities including contingent liabilities are translated at closing exchange rates as at the Balance sheet date.

b) Income and expenditure of transactions are translated at the rate on the date of transaction.

c) All resulting exchange differences on translation are taken directly to the Statement of Profit and Loss.

2.8 Fair value measurement

The Company measures financial instruments, such as, investments at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. the fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

? In the principal market for the asset or liability, or

? In the absence of a principal market, in the most

advantageous market for the asset or liability accessible to the Company.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

? Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities

? Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

? Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

the management determines the policies and procedures for both recurring fair value measurement and disclosure. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.9 Revenue recognition

the Board of Directors of the Company in its meeting held on May 15, 2019 has approved to include in the main objects clause of Memorandum of Association of the Company, the business of leasing of immovable and movable properties of all kinds. Accordingly, Company has shown its income from rent as revenue from operations.

2.10 Other Income

dividend income from investments is recognized when the right to receive payment is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and the applicable rate of interest. Income from current investments are recognised periodically based on fair value through profit and loss (FVTPL) as on reporting date. retained gains/ (losses) are recognized on the date on which these investments are sold.

2.11 Taxes

tax expense for the year comprises of current tax and deferred tax. Current tax is measured by the amount of tax expected to be paid to the taxation authorities on the taxable profits after considering tax allowances and exemptions and using applicable tax rates and laws.

(a) Current income tax

Current income tax relating to items recognised outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(b) Deferred tax

âdeferred income tax is recognised using the balance sheet approach. deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

deferred income tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

Minimum Alternative tax (Mat) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount of the MAT credit asset is written down to the extent their is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing the current tax and where the deferred tax assets and liabilities relate to taxes on income levied by the same governing taxation laws.

2.12 Provisions and contingent liabilities

A provision is recognized 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. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pretax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control

of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the standalone financial statements.

A contingent liability recognized in a business combination is initially measured at its fair value. Subsequently, it is measured at the higher of the amount that would be recognized in accordance with the requirements for provisions above or the amount initially recognized less, when appropriate, cumulative amortisation recognized in accordance with the requirements for revenue recognition.

2.13 Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

2.14 Financial instruments

All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than financial assets recorded at fair value through profit or loss) are included in the fair value of the financial assets. Purchase or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trade) are recognized on trade date. While, loans and borrowings and payables are recognised net of directly attributable transaction costs.

For the purpose of subsequent measurement, financial instruments of the Company are classified in the following categories: non derivative financial assets comprising amortized cost, debt instruments at fair value through other comprehensive income (FVTOCI), equity instruments at FVTOCI or fair value through profit and loss account (FVTPL) and non derivative financial liabilities at amortised cost or

fvtpl.

The classification of financial instruments depends on the objective of the business model for which it is held. Management determines the classification of its financial instruments at initial recognition.

a) Non-derivative financial assets(i) Financial assets at amortized cost

A financial asset is measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (sppI) on the principal amount outstanding.

They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as noncurrent assets. Financial assets are measured initially at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment loss.

Amortised cost are represented by trade receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non-current assets.

(ii) Debt instruments at FVTOCI

A debt instrument is measured at fair value through other comprehensive income if both of the following conditions are met:

(a) the objective of the business model is achieved by both collecting contractual cash flows and selling financial assets and

(b) the asset''s contractual cash flow represent sppI

debt instruments included within FVTOCI category are measured initially as well as at each reporting period at fair value plus transaction costs. Fair value movements are recognized in other comprehensive

income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain/(loss) in statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in oCI is reclassified from equity to profit and loss. Interest earned is recognised under the effective interest rate (EIR) model.

(iii) Equity instruments at FVTOCI

All equity instruments are measured at fair value. Equity instruments held for trading is classified as FVTPL. For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in oCI. The Company makes such election on an instrument-by-instrument basis.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividend are recognized in OCI which is not subsequently recycled to statement of profit and loss.

(iv) Financial assets at FVTPL

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL.

In addition the Company may elect to designate the financial asset, which otherwise meets amortised cost or FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency. The Company has not designated any financial asset as FVTpL. Financial assets included within the FVTpL category are measured at fair values with all changes in the statement of profit and loss.

b) Non-derivative financial liabilities(i) Financial liabilities at amortized cost

Financial liabilities at amortised cost represented by borrowings, trade and other payables are initially recognized at fair value, and subsequently carried

at amortized cost using the effective interest rate method.

(ii) Financial liabilities at FVTPL

Financial liabilities at FVTPL represented by contingent consideration are measured at fair value with all changes recognised in the statement of profit and loss.

c) Investment in subsidiaries

Investment in subsidiaries are carried at cost plus additional fair value of Esop granted to employees of subsidiaries net of impairment, if any.

2.15 Contributed equity

Equity shares are classified as equity share capital.

Incremental costs directly attributable to the issue of new shares are shown in other equity under securities premium as a deduction, net of tax, from the proceeds.

2.16 Earnings per share

Basic earnings per share (Eps) are calculated by dividing the net profit / (loss) after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by adjusting the number of shares used for basic Eps with the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The diluted potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued at fair value i.e. average market value of outstanding shares.

the number of shares and potentially dilutive shares are adjusted for share splits and bonus shares, as appropriate. In calculating diluted earnings per share, the effects of anti dilutive potential equity shares are ignored. Potential equity shares are anti-dilutive when their conversion to equity shares would increase earnings per share or decrease loss per share.

2.17 Assets classified as held for sale

The Company classifies non-current assets (or disposal group) as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use.

The criteria for held for sale classification is regarded met only when the assets (or disposal group) is available for immediate sale in its present condition, subject only to terms that are usual and customary for sale of such assets (or disposal group), its sale is highly probable; and it will genuinely be sold, not

abandoned. the Company treats sale of the asset (or disposal group) to be highly probable when:

? the appropriate level of management is committed to a plan to sell the asset (or disposal group),

? An active programmed to locate a buyer and complete the plan has been initiated (if applicable),

? the asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value,

? The sale is expected to qualify for recognition as a completed sale within one year from the date of classification , and

? Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Non-current assets (or disposal group) held for sale are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities (or disposal group) classified as held for sale are presented separately in the Balance sheet.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

2.18 Rounding off amounts

All amounts disclosed in standalone financial statements and notes have been rounded off to the nearest Lakhs as permitted in schedule III of the Act, unless otherwise stated.

3 recent accounting pronouncements

The Ministry of Corporate Affairs has vide notification dated March 23, 2022 notified Companies (Indian Accounting Standards) Amendment Rules, 2022 which amends certain accounting standards, and are effective April 1, 2022.

â¢ Proceeds before intended use of property, plant and equipment- Ind AS 16, Property, Plant and Equipment

â¢ Onerous Contracts - Cost of fulfilling a contract- Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets

â¢ References to the conceptual framework- Ind AS 103, Business combinations

â¢ Fees included in the 10% test for derecognition of financial liabilities- Ind AS 109, Financial Instruments

these amendments are not expected to have a material impact on the group in the current or future reporting periods and on foreseeable future transactions.

Mar 31, 2018

1 General Corporate Information

Majesco Limited is public limited company domiciled in India and is listed on the BSE Limited (BSE) and National Stock Exchange of India Limited (NSE). The Company is a provider of core platforms and technology solutions in Insurance (Life, Pensions and General). The Company operates through its software development center at Mahape and has a subsidiary in USA. The Company has 8 step down subsidiaries including one development center in India all of which operate in the same business.

The financial statements were approved for issue by the Board of Directors on 14 May, 2018.

2 Summary of Significant Accounting policies

2.1 Basis of preparation and presentation

(a) Statement of Compliance with Ind AS

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended and Companies (Indian Accounting Standards) Amendment Rules, 2016. For all periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules,2014 (Indian GAAP). These financial statements for the year ended 31 March 2018 are the first financial statements of the Company prepared in accordance with Ind AS. The date of transition to Ind AS is 1 April

2016. Details of the exceptions and optional exemptions availed by the Company and principal adjustments along with related reconciliations are detailed in note no 4.

(b) Basis of measurement

The financial statements have been prepared on a historical cost convention on accrual basis, except for the following material items that have been measured at fair value as required by relevant Ind AS:-

i) Certain financial assets and liabilities measured at fair value (refer accounting policy 2.16 on financial instruments)

ii) Share based payment transactions

iii) Derivative financial instruments

iv) Defined benefit and other long-term employee benefits

The preparation of financial statements in conformity with Ind AS requires the Management to make estimate and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses for the year and disclosures of contingent liabilities as at the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon the Management''s evaluation of the relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates, if any, are recognized in the year in which the estimates are revised and in any future years if the revision effects such periods. Also key sources of estimation uncertainty is mentioned below:

i) Useful lives of property, plant and equipment and intangible assets:

As described in the significant accounting policy, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

ii) The fair value measurements and valuation processes:

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or liability, the Company uses market-observable data to the extent it is available. Where level 1 input are not available, the Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs, used in determining the fair value of various assets, liabilities and share based payments are disclosed in notes to financial statements.

iii) Actuarial valuation:

The determination of Company''s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognized in the statement of profit or loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to financial statements.

2.2 Property, plant and equipment

The Company has elected to continue with the carrying value for all of its property, plant and equipment as recognized 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 original cost and written down value.

Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets measured as the difference between amount realized and net carrying value which are carried at cost are recognized in the Profit and Loss Statement.

Depreciation methods, estimated useful lives

Depreciation on tangible assets is provided when the assets are ready for use on the straight line method, on a pro rata basis, over the estimated useful lives of assets, in order to reflect the period over which the depreciable asset is expected to be used by the Company. The management estimates the useful lives for the other fixed assets as follows:

Based on technical evaluation, the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence the useful lives for these assets is different from the useful lives as prescribed under Part C of schedule II of the Companies Act, 2013.

The leasehold property on which the investment property at Mahape is situated is included in fixed assets and amortized over the lease period.

Depreciation on sale/deduction from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement of Profit and Loss under ''Other Income/Other Expenses''.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted prospectively, as change in accounting estimates.

2.3 Investment properties

The Company has elected to continue with the carrying value for all of its Investment property as recognized 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 original cost.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The Company depreciates building component of investment property over 28 years from the date of original capitalization. The Company, based on technical assessment made by technical expert and management estimate, depreciates the building over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

The leasehold property on which the investment property at Mahape is situated is included in Fixed Assets and amortized over the lease period.

The fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer.

Investment properties are derecognized either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in the statement of profit or loss as exceptional items in the period of derecognition, if the amount is significant.

2.4 Intangible assets and amortization

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost of acquisition less accumulated amortization and impairment, if any.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its all intangible assets recognized as on date of transition measured as per the Indian GAAP and use that carrying value as the deemed original cost of the intangible assets.

The Company amortized intangible assets over their estimated useful lives using the straight line method. The estimated useful lives of intangible assets are as follows:

Intangible assets Useful Life

Computer Software l-3years

Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labor, overhead costs that are directly attributable to preparing the asset for its intended use. Research and development costs and software development costs incurred under contractual arrangements with customers are accounted as expenses in the Statement of Profit and Loss.

2.5 Impairment of non-financial assets

At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, management estimates the recoverable amount. Recoverable amount is higher of an asset''s net selling price and value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of the its useful life. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit and Loss Statement to the extent carrying amount exceeds recoverable amount. Assessment is also done at each Balance sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exists or may have decreased.

2.6 Leases As a lessee

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as a lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lesser) are charged to Statement of Profit and Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the less orâs expected inflationary cost increases.

Also initial direct cost incurred in operating lease such as commissions, legal fees and internal costs is recognized immediately in the Statement of Profit and Loss.

Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. Such assets are disclosed as leased assets under tangible assets and are depreciated in accordance with the Company''s depreciation policy described in note 2.2. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Statement of Profit and Loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

2.7 Employee benefits

(a) Short-term obligations

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

The Company has defined contribution plans for post employment benefits in the form of provident fund, employees'' state insurance, labour welfare fund, pension fund (NPS) and superannuation fund in India which are administered through Government of India and/or Life Insurance Corporation of India (LIC).

(ii) Defined benefit plans

GratuityiThe Company has defined benefit plans for post employment benefits in the form of gratuity for its employees in India. The gratuity scheme of the Company is administered through Life Insurance Corporation of India (LIC). Liability for defined benefit plans is provided on the basis of actuarial valuations, as at the Balance Sheet date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the projected unit credit method. Actuarial gains and losses are recognized immediately in the Other Comprehensive Income (OCI) as income or expense (net of taxes).

Compensated absences: The employees of the Company are also entitled for other long-term benefit in the form of compensated absences as per the policy of the Company. Leave encashment vests to employees on an annual basis for leave balance above the upper limit as per the Company''s policy. At the time of retirement, death while in employment or on termination of employment leave encashment vests equivalent to salary payable for number of days of accumulated leave balance subject to an upper limit as per the Company''s policy. Liability for such benefit is provided on the basis of actuarial valuations, as at the Balance Sheet date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the projected unit credit method. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss as income or expense.

Stock options granted to employees of the Company and its subsidiaries (direct and indirect) under the stock option scheme covered by Securities and Exchange Board of India ( Share based employee benefits) Regulations, 2014 are accounted using the fair value method. The fair value of options granted to its employees is recognized in the statement of profit and loss on a graded vesting basis over the vesting period of the option. The fair value of options granted to the employees of its subsidiaries are accounted as "Investment in subsidiaries" on a graded vesting basis over the vesting period of the option.

2.8 Foreign currency transactions

The financial statements are prepared in Indian Rupees. The Indian Rupee is the functional currency of the Company. Translation of foreign currency into Indian Rupees has been carried out as under:

a) Both monetary and non-monetary foreign currency assets and liabilities including contingent liabilities are translated at closing exchange rates as at the Balance Sheet date.

b) Income and expenditure of transactions are translated at the rate on the date of transaction.

c) All resulting exchange differences on translation are taken directly to the Statement of Profit and Loss.

2.9 Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability accessible to the Company.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

- Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

- Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

The management determines the policies and procedures for both recurring fair value measurement. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.10 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed as finance cost. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

2.11 Revenue recognition

"The Company derives revenues primarily from information technology services. Revenue is recognized in accordance with the terms of the contracts with customers as the service is performed by the proportionate completion method and when it is reasonably certain that the ultimate collection will be made. Revenues on time and material contracts are recognized when services are rendered and related costs are incurred. Revenues on fixed price, fixed time bound contracts are recognized over the life of the contract measured by the proportion that contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs. The cumulative impact of any revision in estimates of the percentage of work completed is reflected in the period in which the change becomes known. Provisions for estimated losses on such contracts are made during the period in which a loss becomes probable and can be reasonably estimated. When the uncertainty, relating to the collectability arises subsequent to the rendering of the service, a separate provision is made to reflect the uncertainty and the amount of revenue originally recorded is not adjusted.

Revenues from maintenance contracts are recognized on a straight line basis over the period of the contract.

Revenues from sale of software and hardware are recognized upon delivery of products to the customer, when the significant risks and rewards of ownership are transferred to the buyer and the ultimate collection is reasonably certain."

Unbilled revenue included in ''Other current financial assets'', represents amounts in respect of services performed in accordance with contract terms, not yet billed to customers at the year end. Unearned revenue included in ''Other current liabilities'' represents amounts received/billed in excess of the value of work performed in accordance with the terms of the contracts with customers.

2.12 Other Income

Dividend income from investments is recognized when the right to receive payment is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and the applicable rate of interest. Rental income is recognized on a straight line basis over the term of the lease as per the terms of the base contract or such other systematic method as considered appropriate. Income from current investments are recognized periodically based on fare value through profit and loss as on reporting date. Retained gains/losses are recognized on the date on which these investments are sold.

2.13 Taxes

(a) Current income tax

Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(b) Deferred tax

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and tax laws enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets in respect of unabsorbed depreciation or carry forward losses are recognized only to the extent it is probable and supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax assets is reviewed at each balance sheet date for any write down or reversal, as considered appropriate.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the foreseeable future. Such asset is reviewed at each balance sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the foreseeable future.

Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amount and there is an intention to settle the asset and liability on a net basis.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets and liabilities.

2.14 Provisions and contingent liabilities

Provisions are recognized when the Company has a present legal obligation as a result of past events, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. When no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation. Where the Company expects a provision to be reimbursed, the reimbursement is recognized as a separate asset, only when such reimbursement is virtually certain.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage oftime is recognized as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

2.15 Cash and cash equivalents

Cash and cash equivalents comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above.

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effect of transactions of a noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associate with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

2.16 Financial instruments

All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than financial assets recorded at fair value through profit or loss) are included in the fair value of the financial assets. Purchase or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trade) are recognized on trade date. While, loans and borrowings and payables are recognized net of directly attributable transaction costs.

For the purpose of subsequent measurement, financial instruments of the Company are classified in the following categories: non derivative financial assets comprising amortized cost, debt instruments at fair value through other comprehensive income (FVTOCI), equity instruments at FVTOCI or fair value through profit and loss account (FVTPL), non derivative financial liabilities at amortized cost or FVTPL and derivative financial instruments (under the category of financial assets or financial liabilities) at FVTOCI

a) Non-derivative financial assets

(i) Financial assets at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment loss.

Amortized cost are represented by trade receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non-current assets.

(ii) Debtinstrumentsat FVTOCI:

A debt instrument is measured at fair value through other comprehensive income if both of the following conditions are met:

(a) the objective of the business model is achieved by both collecting contractual cash flows and selling financial assets and

(b) the asset''s contractual cash flow represent SPPI

Debt instruments included within FVTOCI category are measured initially as well as at each reporting period at fair value plus transaction costs. Fair value movements are recognized in other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain/(loss) in statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from equity to profit and loss. Interest earned is recognized under the effective interest rate (EIR) model.

(iii) EquityinstrumentsatFVTOCI:

All equity instruments are measured at fair value. Equity instruments held for trading is classified as FVTPL. For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI. The Company makes such election on an instrument-by-instrument basis.

(iv) FinancialassetsatFVTPL:

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorization as at amortised cost or as FVTOCI, is classified as FVTPL.

In addition the Company may elect to designate the financial asset, which otherwise meets amortized cost or FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency. The Company has not designated any financial asset as FVTPL. Financial assets included within the FVTPL category are measured at fair values with all changes in the statement of profit and loss.

b) Non-derivative financial liabilities

(i) Financial liabilities at amortized cost

Financial liabilities at amortized cost represented by borrowings, trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest rate method.

(ii) Financial liabilities at FVTPL

Financial liabilities at FVTPL represented by contingent consideration are measured at fair value with all changes recognized in the statement of profit and loss.

Investment in subsidiaries are carried at cost plus additional fair value of ESOP granted to employees of subsidiaries net of impairment, if any.

2.17 Contributed equity

Equity shares are classified as equity share capital.

Incremental costs directly attributable to the issue of new shares are shown in other equity under securities premium as a deduction, net of tax, from the proceeds.

2.18 Earnings per share

Basic earnings per share (EPS) are calculated by dividing the net (loss) / profit after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by adjusting the number of shares used for basic EPS with the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The diluted potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued at fair value i.e. average market value of outstanding shares.

The number of shares and potentially dilutive shares are adjusted for share splits and bonus shares, as appropriate. In calculating diluted earnings per share, the effects of anti dilutive potential equity shares are ignored. Potential equity shares are anti-dilutive when their conversion to equity shares would increase earnings per share or decrease loss per share.

2.19 Rounding off amounts

All amounts disclosed in financial statements and notes have been rounded off to the nearest lakhs as permitted in Schedule III of the Act, unless otherwise stated.

3 Standards (including amendments) issued, that are effective from 1 April 2018. Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On 28 March, 2018, Ministry of Corporate Affairs ("MCA") has 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 1 April 2018. The Company has evaluated the effect of this on the financial statements and the impact is likely to be not material.

Ind AS 115- Revenue from contract with customers:

On 28 March, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. 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 periods beginning on or after 1 April 2018.

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

4 First-time adoption of Ind-AS

These financial statements are the first set of Ind AS financial statements prepared by the Company. Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ending on 31 March 2018, together with the comparative year data as at and for the year ended 31 March 2017, as described in the significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2016, being the Company''s date of transition to Ind AS. The principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017 are explained herein below.

4.1 Exemptions availed on first time adoption of Ind AS

Ind AS 101, First-time Adoption of Indian Accounting Standards, allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has accordingly applied the following exemptions.

(a) Deemed cost

Since there is no change in the functional currency, the Company has elected to continue with carrying value for all of its property, plant and equipment as recognized in its Indian GAAP financial statements as its deemed cost at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38, Intangible Assets and investment properties. Accordingly the management has elected to measure all of its property, plant and equipment, investment properties and intangible assets at their Indian GAAP carrying value for original cost and written down value.

(b) Fair value measurement of financial assets or financial liabilities at initial recognition

In the measurement of financial instruments at fair value, Ind AS 101 provides an optional exemption for the measurement of day one gains or losses. Under the optional exemption, the criteria for recognition of gains or losses subsequent to initial recognition of a financial asset or liability need only be applied prospectively from the transition date

4.2 Mandatory exemption on first-time adoption of Ind AS

(a) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with Indian GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

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

(i) Impairment of financial assets based on expected credit loss model.

(ii) Investments in mutual funds

(iii) Effective interest rate used in calculation of security deposit.

(b) Derecognition of financial assets and financial liabilities

A first-time adopter should apply the derecognition requirements in Ind AS 109, Financial Instruments, prospectively to transactions occurring on or after the date of transition. Therefore, if a first-time adopter derecognized non-derivative financial assets or no derivative financial liabilities under its Indian GAAP as a result of a transaction that occurred before the date of transition, it should not recognize those financial assets and liabilities under Ind AS (unless they qualify for recognition as a result of a later transaction or event). A first-time adopter that wants to apply the derecognition requirements in Ind AS 109, Financial Instruments, retrospectively from a date of the entity''s choosing may only do so, provided that the information needed to apply Ind AS 109, Financial Instruments, to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognize provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

(c) Classification and measurement of financial assets

Ind AS 101, First-time Adoption of Indian Accounting Standards, requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

(g) Notes to first-time adoption

(i) Security deposit

Under the previous GAAP, interest-free security deposit (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial liabilities are required to be recognized at fair value. Accordingly the Company has fair valued the security deposit received. Difference between the fair value and transaction value of the security deposit has been recognized as noncurrent deferred lease liability. The profit for the year ended 31 March 2017 and retained earnings as on 1 April 2016 has been increased by 28 and 25, respectively due to accrual of rental income. Accrual of rental income in statement profit or loss is offset by the notional interest expense of 27 during the year ended 31 March 2017 and in retained earnings by 20 as on 1 April 2016 with corresponding decrease in noncurrent financial liabilities. Consequently the amount of security deposit as on 31 March 2017 has decreased by 93 (1 April 2016:121) and deferred lease liability as on 31 March 2017 has increased by 89 (1 April 2016 :117). The tax impact on the transaction during the financial year ended 31 March 2017 is charge of 1 (1 April 2016 :1).

(ii) Employee stock option plan (ESOP)

The Company has granted employee stock options to its employees and also to employees of its direct and indirect subsidiaries. As per the demerger scheme of Mastek Limited (Refer note 48) employees of Mastek Limited who were having options of Mastek on date of demerger were granted equal number of options of the Company. These options are mostly granted at the market price on the date of grant. As per the SEBI guidelines, the excess of market price of the underlying equity shares as of the date of the grant of the options over the exercise price of the option were recognized and amortized on a straight line basis over the vesting period in the previous GAAP. On the date of transition to Ind-AS i.e. 1 April 2016, the Company did a fair valuation of all the unvested options as on that date and debited Retained earnings by 214 and 30 on account of options relating to employees of Mastek limited and the Company respectively with a credit to the employee stock option outstanding account. The fair value of the unvested options relating to the employees of its subsidiaries and step down subsidiaries amounting to 677 was debited to Investment in subsidiary account with the corresponding credit to the Employee stock options outstanding account.

For the year ended 31 March 2017, the fair value of the options both vested and unvested granted to the employees of the Company, amounting to 118 was charged to the employee benefit expense with a corresponding credit to Employee stock options outstanding account.

For the year ended 31 March 2017, the fair value of the options both vested and unvested granted to the employees of its subsidiaries and indirect subsidiaries amounting to 685 was debited to the Investment in subsidiary account with the corresponding credit to Employee stock options outstanding account.

(iii) Gain/(loss) net recognized on mutual funds

Under the previous GAAP the Investments in mutual funds were carried at cost or market value whichever was lower. Under Ind AS the Company has considered the investments at market value and recognized other income of 41 for the year ended 31 March 2017 with corresponding increase in financial assets investments. As on 1 April 2016, gain of 2 was recognized in retained earnings. The tax impact of the transaction during the year is charge of 13.

(iv) Defined benefit liabilities

Both under Indian GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to Statement of Profit and Loss. Under Ind AS, re-measurements comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus the employee benefit cost for the year ended 31 March 2017 is reduced by 18 and re-measurement gains/ losses on defined benefit plans of the corresponding amount has been recognized in the OCI, net overtaxes.

(v) Deferred tax

Indian GAAP requires assessment of virtual certainty in case of losses for recognizing deferred tax asset, but under Ind AS deferred tax assets are recognized for all deductible temporary differences and unused tax losses if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. The deferred tax impact arising from the above adjustments have been carried out.

(vi) Other comprehensive income

The concept of Other Comprehensive Income (OCI) did not exist under Indian GAAP.

(vii) Statement of cash flows

No material impact on transition from Indian GAAP to Ind AS on the statement of cash flows.

(viii) Designation and carrying amount of a previously recognized financial asset

Designation of a previously recognized financial asset as a financial asset and financial liabilities measured at fair value through profit or loss as at 1 April 2016 and disclosure of its fair value at the date of designation and their classification and carrying amounts in the previous financial statements.

Profit arising from investment properties before indirect expenses _⁸⁰¹ _767

(a) The Company had two investment properties, one at Mahape and other at Pune at the beginning of financial year 2017-18. The Pune property has been sold off during the financial year and recognized gain of 1,063 as an exceptional item (Refer note 35).

(b) The Mahape property has been given on rent to one of its step down subsidiary company, Majesco Software and Solutions India Private Ltd based on a rental agreement to the extent of 90% approximately. MIDC transfer and registration in Company''s name is pending as on 31 March 2018. This portion of the building rented out is treated as investment property and the value of the leasehold land on which the building is constructed is continued in fixed assets. Any sale or lease of this property will require approval of MIDC. During the year ended 31 March 2018 and 31 March 2017, the Company has earned rental income of 870 and 868 respectively from the property. (Refer note 40 (c)(i))

(c) The fair value of the whole Mahape property and leasehold land as on 31 March 2018 is 10,377 as certified byan independent valuer.

39 Employee Stock Option Scheme

(a) Nature and extent of employee stock option scheme that existed during the year:

Plan I

The company introduced the employee stock option scheme as a part of the scheme of arrangement, approved by the Hon''ble High Court of Gujarat and Hon''ble High Court of Bombay (Refer note 48). On the date of demerger all employees of Mastek who were having options of Mastek Limited were granted equal number of options of the Company.

The Company introduced the scheme for granting up to 8,000,000 stock options to the employees, each option representing one equity share of the Company. The exercise price is to be determined by the Nomination and Remuneration Committee ("Committee") and such price may be the face value of the share from time to time or may be the market price or any other price as may be decided by the Committee and will be governed by the Securities and Exchange Board of India (SEBI) (Share based employee benefits) Regulations, 2014. The first vesting of the stock options shall happen only on completion of one year from the date of grant and the options are exercisable within seven years from the date of vesting.

The Company has granted employee stock options to its employees and also to employees of its direct and indirect subsidiaries. As per the demerger scheme of Mastek (Refer note 48) employees of Mastek Limited who are having options of Mastek on date of demerger were granted equal number of options of the Company. These options are mostly granted at the market price on the date of grant. As per the SEBI guidelines, the excess of market price of the underlying equity shares as of the date of the grant of the options over the exercise price of the option were recognized and amortized on a straight line basis over the vesting period in the previous GAAP. On the date of transition to Ind-AS i.e. 1 April 2016, the Company carried out a fair valuation of all the unvested options as on that date and debited Retained earnings by 214 and 30 on account of options relating to employees of Mastek Limited and the Company respectively with a credit to the employee stock option outstanding account considering the same as equivalent to cost of employee stock option granted by Mastek Limited to employees of Majesco Group as per the said scheme of demerger since the management of the Company does not expect a separate recovery of the same amount from Mastek Limited or recovery from the Company by Mastek Limited. Accordingly no further adjustments for fair value have been made in respect of the options granted to Mastek employees.

The fair value of the unvested options relating to the employees of its subsidiaries and step down subsidiaries amounting to 677 was debited to investment in subsidiary account with the corresponding credit to the employee stock options outstanding account.

For the year ended 31 March 2018 and 31 March 2017 the fair value of the options both vested and unvested options granted to the employees of the Company was determined and the incremental amount of 144 and 119 respectively were charged to the employee benefit expense with a corresponding credit to employee stock options outstanding account.

For the year ended 31 March 2018 and 31 March 2017 similar amount relating to employees of its subsidiaries and step down subsidiaries amounting to 450 and 685 net of recoveries respectively was debited to the investment in subsidiary account with the corresponding credit to employee stock options outstanding account. In addition during the year ended 31 March 2017 intrinsic value of the options both vested and unvested granted to employees of Mastek Limited amounting to 16 was recovered from them.

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during the year

The fair value of each option is estimated on the date of grant using the Black Scholes model. The following tables list the inputs used on the date of grant for the years ended:

Mar 31, 2017

1 Company overview :

Majesco Limited is a public limited company domiciled in India and is listed on the BSE Limited (BSE) and National Stock Exchange of India Limited (NSE). The Company is a provider of core platforms and technology solutions in Insurance (Life, Pensions and General). The company operates through its software development centre at Mahape and has a subsidiary in USA.

2 Significant accounting policies:

2.1 Basis of preparation

These financial statements have been prepared in accordance with generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013. All 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 services and the time between the acquisition of assets / inputs for processing and their realization in cash and cash equivalents, the Company has ascertained its normal operating cycle as 12 months for the purpose of classification of assets and liabilities as current / non current.

2.2 Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires that the management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates.

2.3 Tangible assets and depreciation

Tangible assets are stated at cost of acquisition less accumulated depreciation and accumulated impairment losses, if any. Direct costs are capitalized until the assets are ready for use and include inward freight, duties, taxes and expenses incidental to acquisition and installation. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets which are carried at cost are recognized in the Profit and Loss Statement. Depreciation on tangible assets is provided on the straight line method, on a pro rata basis, over the estimated useful life of the assets. Based on the technical evaluation the Management estimates the useful life for the fixed assets as follows:-

2.4 Intangible assets and amortization

Intangible assets are stated at cost of acquisition less accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on a straight line method over their estimated economic lives as follows:

Expenditure on research is recognized as an expense when it is incurred. Development costs of products are also charged to the Profit and Loss Statement unless all the criteria for capitalization as set out in paragraph 44 of AS 26 - ''Intangible Assets'' have been met by the Company.

2.5 Impairment of assets

At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, management estimates the recoverable amount. Recoverable amount is higher of an asset''s net selling price and value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of the its useful life. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit and Loss Statement to the extent carrying amount exceeds recoverable amount. Assessment is also done at each

Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or many have decreased.

2.6 Investments

Investments that are readily realizable and are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments. Current investments are carried at cost or fair value, whichever is lower. Non-current investments are carried at cost. However, provision for other than temporary decline in value is made to recognize a decline, other than temporary, in the value of non-current investments, such reduction being determined and made for each investment individually. Investment property: Investment in buildings that are not intended to be occupied substantially for use by, or in the operations of, the Company, have been classified as investment property. Investment properties are carried at cost less accumulated depreciation up to March 31, 2017 being the date on which demerger was given effect to and accumulated impairment losses, if any.

2.7 Foreign currency transactions and translation

Foreign currency transactions of the Company and of its integral foreign branch are accounted at the exchange rates prevailing on the date of the transaction or at an average rate that approximates the actual rate at the date of the transaction. Monetary assets and liabilities are translated at the rate prevailing on the Balance Sheet date whereas non-monetary assets and liabilities are translated at the rate prevailing on the date of the transaction. Gains and losses resulting from the settlement of foreign currency monetary items and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the Profit and Loss Statement. In the case of forward exchange contracts which are open on the Balance Sheet date and are backed by receivables, the premium or discount arising at the inception of such a forward exchange contract is amortized as expense or income over the life of the contract. The exchange difference on such contracts is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between a) the foreign currency amount of the contract translated at the exchange rate at the reporting date or the settlement date where the transaction is settled during the reporting period, and b) the same foreign currency amount translated at the latter of the date of inception of the forward exchange contract and the last reporting date. The exchange difference so computed on such contracts is recognized in the Profit and Loss Statement. Any profit or loss arising on cancellation or renewal of such forward exchange contracts is recognized as income or expense for the year.

2.8 Derivative instruments and hedge accounting

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The Company designates these hedging instruments as cash flow hedges.

The use of hedging instruments is governed by the policies of the Company which are approved by its Board of Directors.

The Company has adopted hedge accounting as per the Accounting Standard (AS) 30, "Financial Instruments: Recognition and Measurement" issued by the Institute of Chartered Accountants of India to the extent the adoption does not contradict with existing Accounting Standards and other authoritative pronouncements of the Company Law and other regulatory requirements. In respect of forward contracts that are designated as effective cash flow hedges, the gain or loss from the effective portion of the hedge is recorded and reported directly in reserves (under the Hedging reserve account) and is reclassified into the Profit and Loss Statement upon the occurrence of the hedged transactions.

Hedging instruments are initially measured at fair value, and are remeasured at subsequent reporting dates. Changes in the fair value of these derivatives that are designated and effective as hedges of future cash flows are recognized directly in the hedging reserve and the ineffective portion is recognized immediately in the Profit and Loss Statement.

In respect of foreign exchange forward contract covered under Accounting Standard (AS) 11, "The Effects of Changes in Foreign Exchange Rates ", the premium or discount arising at the inception of the contract is amortized as expense or income over the life of the contract. Gains/losses on settlement of transaction arising on cancellation or renewal of such a forward exchange contract are recognized as income or expense for the year.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. At that time for forecasted transactions, any cumulative gain or loss on the hedging instrument recognized in shareholders'' funds is retained there until the forecasted transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in hedging reserve is transferred to the Profit and Loss Statement for the year.

2.9 Employee benefits

i) Long term employee benefits Defined contribution plan

Employee benefits in the form of provident fund, family pension fund, superannuation fund and labour welfare fund, which are administered through Government of India and /or Life Insurance Corporation of India are considered as defined contribution plans and the contributions are charged to the Profit and Loss Statement of the year when the contributions to the respective funds are due.

Defined benefit plan

The Company has defined benefit plans for post employment benefits in the form of gratuity for its employees in India. The gratuity scheme of the Company is administered through Life Insurance Corporation of India (LIC). Liability for defined benefit plans is provided on the basis of actuarial valuations, as at the Balance Sheet date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the projected unit credit method. Actuarial gains and losses are recognized immediately in the Profit and Loss Statement as income or expense.

(ii) Other long-term employee benefits

Long term compensated absences and pension benefits are provided on the basis of an actuarial valuation as at the Balance Sheet date. Actuarial gains and losses comprising of experience adjustments and the effects of changes in actuarial assumptions are recognized in the Profit and Loss Statement for the year as income or expense.

(iii) Short-term employee benefits

(iv) Termination benefits

Termination benefits, in the nature of voluntary retirement benefits or those arising from restructuring, are recognized in the Profit and Loss Statement when the Company has a present obligation as a result of past event, when a reliable estimate can be made of the amount of the obligation and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations.

2.10 Revenue recognition

The Company derives revenues primarily from information technology services. Revenue is recognized in accordance with the terms of the contracts with customers as the service is performed by the proportionate completion method and when it is reasonably certain that the ultimate collection will be made. Revenues on time and material contracts are recognized when services are rendered and related costs are incurred. Revenues on fixed price, fixed time bound contracts are recognized over the life of the contract measured by the proportion that contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs. The cumulative impact of any revision in estimates of the percentage of work completed is reflected in the period in which the change becomes known. Provisions for estimated losses on such contracts are made during the period in which a loss becomes probable and can be reasonably estimated. When the uncertainty, relating to the collectability arises subsequent to the rendering of the service, a separate provision is made to reflect the uncertainty and the amount of revenue originally recorded is not adjusted. Revenues from maintenance contracts are recognized on a straight line basis over the period of the contract. Revenues from sale of software and hardware are recognized upon delivery of products to the customer, when the significant risks and rewards of ownership are transferred to the buyer and the ultimate collection is reasonably certain.

Unbilled revenue included in ''Other current assets'', represents amounts in respect of services performed in accordance with contract terms, not yet billed to customers at the year end. Unearned revenue included in ''Other current liabilities'' represents amounts received/billed in excess of the value of work performed in accordance with the terms of the contracts with customers.

2.11 Other income

2.12 Leases

Assets taken on leases which transfer substantially all the risks and rewards incidental to ownership of the assets to the lessee i.e. finance leases, in terms of provisions of Accounting Standard (AS) 19-''Leases'', are capitalized. The assets acquired under finance leases are capitalized at the lower of the fair value at the inception of the lease and the present value of minimum lease payments and a liability is created for an equivalent amount. Such assets are disclosed as leased assets under tangible assets and are depreciated in accordance with the Company''s depreciation policy described in note 2.3. Each lease rental paid on the finance lease is allocated between the liability and interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period. Other leases are classified as operating leases and rental payments in respect of such leases are charged to the Profit and Loss Statement on a straight line basis over the lease term or such other systematic method as considered appropriate.

2.13 Earnings per share

Basic earnings per share (EPS) are calculated by dividing the net loss / profit after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by adjusting the number of shares used for basic EPS with the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The diluted potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued at fair value i.e. average market value of outstanding shares. The number of shares and potentially dilutive shares are adjusted for share splits and bonus shares, as appropriate. In calculating diluted earnings per share, the effects of anti dilutive potential equity shares are ignored. Potential equity shares are anti-dilutive when on conversion to equity shares would increase earnings per share or decrease loss per share.

2.14 Income taxes

Tax expense for the year comprises of current tax and deferred tax. Current tax is measured by the amount of tax expected to be paid to the taxation authorities on the taxable profits after considering tax allowances and exemptions and using applicable tax rates and laws. Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and tax laws enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets in respect of unabsorbed depreciation or carry forward losses are recognized only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date for any write down or reversal, as considered appropriate. Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period. Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amount and there is an intention to settle the asset and liability on a net basis. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing the current tax and where the deferred tax assets and liabilities relate to taxes on income levied by the same governing taxation laws.

2.15 Accounting for employee stock options

Stock options granted to employees of Majesco Limited and its subsidiaries under the stock option schemes covered by Securities and Exchange Board of India (Share based employee benefits) Regulations, 2014 are accounted using the intrinsic value method prescribed in the guidance note on Employees Share Based Payments issued by The Institute of Chartered Accountants of India. The intrinsic value of the option being excess of market value of the underlying share immediately prior to date of grant over its exercise price is considered as deferred employee compensation. The expense on deferred employee compensation is recognized in Profit and Loss Statement on straight line basis over the vesting period of the option. The options that lapse are reversed by a credit to expense, equal to the amortized portion of value of lapsed portion.

2.16 Provisions and contingent liabilities

Provisions are recognized when the Company has a present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. A disclosure for a contingent liability is made where there is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from the past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation. Where the Company expects a provision to be reimbursed, the reimbursement is recognized as a separate asset, only when such reimbursement is virtually certain.

2.17 Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks and other short term highly liquid investments with original maturities of three months or less.

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