Accounting Policies of Dion Global Solutions Ltd. Company

Mar 31, 2016

1 SIGNIFICANT ACCOUNTING POLICIES

a) BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on going concern basis and in terms of the Accounting Standards as per Companies (Accounting Standard) Rules 2006 and referred to Sections 129 & 133 of the Companies Act 2013. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization in respect of incomes. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles in India.

The financial statements are prepared on going concern basis as management is confident based on the Company’s global business plans which indicate that in future positive cash flows will be generated and the Company will be able to meet its liabilities as they fall due. The growth will be achieved, inter-alia, through increased market penetration of existing products as well as development of new products and is supported by a strong and growing pipeline.

b) USE OF ESTIMATES

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

c) REVENUE RECOGNITION

i) Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

ii) Revenue from the sale of user licenses for software applications is recognized on transfer of the title.

iii) Subscription revenue from data base products is recognized proportionately over the period of subscription.

iv) Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

v) Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

vi) Dividend Income is accounted for as income when the right to receive dividend is established.

vii) Interest and other dues are accounted on accrual basis.

viii) Revenue excludes Value added tax/sales tax and service tax.

ix) Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in trade receivable. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities.

d) TANGIBLE ASSETS

Tangible assets are stated at cost less accumulated depreciation. Cost includes duties, taxes and other expenses incidental to development / acquisition and installation.

e) INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost. In respect of internally developed software, costs include development costs directly attributable to the design and development of software.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

f) 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, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Statement of Profit and Loss to the extent the carrying amount exceeds the recoverable amount. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

g) BORROWING COSTS

Borrowing costs incurred for the acquisition of qualifying assets are recognized as part of cost of such assets when it is considered probable that they will result in future economic benefits to the Company. Other ancillary costs incurred in obtaining the borrowings which are not eligible for capitalization are amortized over the tenure of Borrowings.

h) DEPRECIATION / AMORTIZATION

Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013. Depreciation on fixed assets (other than Intangible assets) is provided based on the following useful life of the assets:-

Leasehold improvements are amortized over the lease period or 6 years whichever is earlier. In respect of assets acquired / sold during the year, depreciation is charged on pro-rata basis.

Intangible assets are amortized over a period of three to six years on a straight-line basis, commencing from the date the asset is available to the Company for its use.

Consequent to application of Part C of Schedule II of the Companies Act 2013, the management, based on an internal assessment and evaluation, has adopted the useful life prescribed in Schedule II, wherever appropriate.

i) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences resulting from the settlement of such transactions and from the restatement of such monetary assets and liabilities are recognized in the Statement of Profit and Loss.

j) INVESTMENTS

Long-term investments are valued at cost. Cost includes incidental charges incurred towards acquisition of such investments. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary in nature. Current investments are valued at lower of cost and fair value.

k) CASH & CASH EQUIVALENTS

Cash comprises cash at bank. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value.

l) STOCK BASED COMPENSATION

The Stock Options granted by the Company are accounted for as per the accounting treatment prescribed by Securities & Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the guidance note on Accounting for Stock Options issued by the Institute of Chartered Accountants of India, whereby the intrinsic value of the Options are recognized as deferred employee compensation. The deferred employee compensation is charged to Statement of Profit and Loss on a straight line basis over the vesting period of Options.

m) EMPLOYEE BENEFITS

i) Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to the Statement of Profit and Loss as incurred.

ii) Gratuity liability is a defined obligation and is wholly unfunded. The Company accounts for liability for future gratuity benefits based on an actuarial valuation.

iii) The employees of the Company are entitled to compensated absences and leave encashment as per the policy of the Company, the liability in respect of which is provided, based on an actuarial valuation

iv) Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognized immediately in the Statement of Profit and Loss as income or expenses.

v) The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by an employee is recognized during the period when the employee renders the services.

n) TAXES ON INCOME

Current tax is determined on the basis of the Income Tax Act, 1961.

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 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 a reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized, except for unabsorbed depreciation and carry forward of losses under the tax laws where deferred tax assets are recognized only to the extent that 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.

o) PROVISIONS AND CONTINGENT LIABILITIES

A provision is 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. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date.

Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation.

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty is treated as contingent and to the extent not provided for are disclosed by way of notes to the accounts.

p) ACCOUNTING FOR LEASES

Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

Assets acquired under leases where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Statement of Profit and Loss on accrual basis.

q) OPERATING CYCLE

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 products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non current classification of assets and liabilities.

r) DERIVATIVE TRANSACTIONS

The Company uses derivative financial instruments such as currency swaps to hedge its risks associated with foreign currency fluctuation relating to the underlying transactions, highly probable forecast transactions and firm commitments. The derivative contracts outstanding at the Balance Sheet date are marked to market and resulting loss, if any is provided for in the financial statements. Any profit or losses arising on cancellation of derivative instruments are recognized as income or expense for the period.

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Mar 31, 2015

A) BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on going concern basis and in terms of the Accounting Standards as per Companies (Accounting Standard) Rules 2006 and referred to Section 129 & 133 of the Companies Act 2013 of India. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realisation in respect of incomes. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles in India.

b) USE OF ESTIMATES

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

c) REVENUE RECOGNITION

i) Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

ii) Revenue from the sale of user licenses for software applications is recognized on transfer of the title.

iii) Subscription revenue from data base products is recognized proportionately over the period of subscription.

iv) Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

v) Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

vi) Dividend Income is accounted for as income when the right to receive dividend is established.

vii) Interest and other dues are accounted on accrual basis.

viii) Revenue excludes Value added tax/sales tax and service tax.

ix) Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in trade receivable. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities.

d) TANGIBLE ASSETS

Tangible assets are stated at cost less accumulated depreciation. Cost includes duties, taxes and other expenses incidental to development / acquisition and installation.

e) INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost. In respect of internally developed software, costs include development costs directly attributable to the design and development of software.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

f) 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, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Statement of Profit and Loss to the extent the carrying amount exceeds the recoverable amount. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

g) BORROWING COSTS

Borrowing costs incurred for the acquisition of qualifying assets are recognized as part of cost of such assets when it is considered probable that they will result in future economic benefits to the Company. Other ancillary costs incurred in obtaining the borrowings which are not eligible for capitalisation are amortized over the tenure of Borrowings.

h) DEPRECIATION / AMORTIZATION

Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013. Depreciation on fixed assets (other than Intangible assets) is provided based on the following useful life of the assets:-

Leasehold improvements are amortized over the lease period or 6 years whichever is earlier. In respect of assets acquired / sold during the year, depreciation is charged on pro-rata basis.

Intangible assets are amortized over a period of three to six years on a straight-line basis, commencing from the date the asset is available to the Company for its use.

Consequent to application of Part C of Schedule II of the Companies Act 2013, the management, based on an internal assessment and evaluation, has adopted the useful life prescribed in Schedule II, wherever appropriate. Also, refer note 38.

i) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences resulting from the settlement of such transactions and from the restatement of such monetary assets and liabilities are recognized in the Statement of Profit and Loss.

j) INVESTMENTS

Long-term investments are valued at cost. Cost includes incidental charges incurred towards acquisition of such investments. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary in nature. Current investments are valued at lower of cost and fair value.

k) CASH & CASH EQUIVALENTS

Cash comprises cash at bank. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value.

l) STOCK BASED COMPENSATION

The Stock Options granted by the Company are accounted for as per the accounting treatment prescribed by Securities & Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the guidance note on Accounting for Stock Options issued by the Institute of Chartered Accountants of India, whereby the intrinsic value of the Options are recognized as deferred employee compensation. The deferred employee compensation is charged to Statement of Profit and Loss on a straight line basis over the vesting period of Options.

m) EMPLOYEE BENEFITS

i) Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to the Statement of Profit and Loss as incurred.

ii) Gratuity liability is a defined obligation and is wholly unfunded. The Company accounts for liability for future gratuity benefits based on an actuarial valuation.

iii) The employees of the Company are entitled to compensated absences and leave encashment as per the policy of the Company, the liability in respect of which is provided, based on an actuarial valuation.

iv) Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognized immediately in the Statement of Profit and Loss as income or expenses.

v) The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by an employee is recognized during the period when the employee renders the services.

n) TAXES ON INCOME

Current tax is determined on the basis of the Income Tax Act, 1961.

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 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 a reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized, except for unabsorbed depreciation and carry forward of losses under the tax laws where deferred tax assets are recognized only to the extent that 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.

o) PROVISIONS AND CONTINGENT LIABILITIES

A provision is 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. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date.

Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation.

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty is treated as contingent and to the extent not provided for are disclosed by way of notes to the accounts.

p) ACCOUNTING FOR LEASES

Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

Assets acquired under leases where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Statement of Profit and Loss on accrual basis.

q) OPERATING CYCLE

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 products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non current classification of assets and liabilities.

r) DERIVATIVE TRANSACTIONS

The Company uses derivative financial instruments such as currency swaps to hedge its risks associated with foreign currency fluctuation relating to the underlying transactions, highly probable forecast transactions and firm commitments. The derivative contracts outstanding at the Balance Sheet date are marked to market and resulting loss, if any is provided for in the financial statements. Any profit or losses arising on cancellation of derivative instruments are recognized as income or expense for the period.

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Mar 31, 2014

A) BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on going concern basis and in terms of the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 in compliance with Section 211(3C) of the Companies Act, 1956 read with General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realisation in respect of incomes. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles in India.

b) USE OF ESTIMATES

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

c) REVENUE RECOGNITION

i) Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

ii) Revenue from the sale of user licenses for software applications is recognized on transfer of the title.

iii) Subscription revenue from data base products is recognized proportionately over the period of subscription.

iv) Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

v) Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

vi) Dividend Income is accounted for as income when the right to receive dividend is established.

vii) Interest and other dues are accounted on accrual basis.

viii) Revenue excludes Value added tax/sales tax and service tax.

ix) Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in trade receivable. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities.

d) TANGIBLE ASSETS

Tangible assets are stated at cost less accumulated depreciation. Cost includes duties, taxes and other expenses incidental to development / acquisition and installation.

e) INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost. In respect of internally developed software, costs include development costs directly attributable to the design and development of software.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

f) 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, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Statement of Profit and Loss to the extent the carrying amount exceeds the recoverable amount. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

g) BORROWING COSTS

Borrowing costs incurred for the acquisition of qualifying assets are recognized as part of cost of such assets when it is considered probable that they will result in future economic benefits to the Company. Other ancillary costs incurred in obtaining the borrowings which are not eligible for capitalisation are amortized over the tenure of Borrowings.

h) DEPRECIATION / AMORTIZATION

Depreciation on fixed assets (other than Intangible assets) is provided on straight line method as per the following rates:

Leasehold improvements are amortized over the lease period or 6 years whichever is earlier. In respect of assets acquired / sold during the year, depreciation is charged on pro-rata basis.

Intangible assets are amortized over a period of three to six years on a straight-line basis, commencing from the date the asset is available to the Company for its use.

Fixed assets individually costing up to Rs. 5,000 are depreciated at the rate of 100% on purchase.

i) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences resulting from the settlement of such transactions and from the restatement of such monetary assets and liabilities are recognized in the Statement of Profit and Loss.

j) INVESTMENTS

Long-term investments are valued at cost. Cost includes incidental charges incurred towards acquisition of such investments. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary in nature. Current investments are valued at lower of cost and fair value.

k) CASH & CASH EQUIVALENTS

Cash comprises cash at bank. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value.

l) STOCK BASED COMPENSATION

The Stock Options granted by the Company are accounted for as per the accounting treatment prescribed by Securities & Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the guidance note on Accounting for Stock Options issued by the Institute of Chartered Accountants of India, whereby the intrinsic value of the Options are recognized as deferred employee compensation. The deferred employee compensation is charged to Statement of Profit and Loss on a straight line basis over the vesting period of Options.

m) EMPLOYEE BENEFITS

i) Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to the Statement of Profit and Loss as incurred. ii) Gratuity liability is a defined obligation and is wholly unfunded. The Company accounts for liability for future gratuity benefits based on an actuarial valuation.

iii) The employees of the Company are entitled to compensated absences and leave encashment as per the policy of the Company, the liability in respect of which is provided, based on an actuarial valuation.

iv) Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognized immediately in the Statement of Profit and Loss as income or expenses.

v) The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by an employee is recognized during the period when the employee renders the services.

n) TAXES ON INCOME

Current tax is determined on the basis of the Income Tax Act, 1961.

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 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 a reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized, except for unabsorbed depreciation and carry forward of losses under the tax laws where deferred tax assets are recognized only to the extent that 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.

o) PROVISIONS AND CONTINGENT LIABILITIES

A provision is 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. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date.

Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation.

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty is treated as contingent and to the extent not provided for are disclosed by way of notes to the accounts.

p) ACCOUNTING FOR LEASES

Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

Assets acquired under leases where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Statement of Profit and Loss on accrual basis.

q) OPERATING CYCLE

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 VI to the Companies Act,1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non current classification of assets and liabilities.

2.1 Pursuant to the Order dated December 20, 2012 of the Hon''ble High Court of Delhi, on March 11, 2013, the Board of Directors of the Company issued 3,22,27,406 Equity Shares of Rs. 10/- each fully paid-up in place of 6,44,54,811 Equity Shares of Rs. 10/- each fully paid-up, consequent to reduction and consolidation of equity share capital of the Company, to the Shareholders of the Company as on the Record Date i.e. March 1, 2013.

2.2 The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital as under:

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is entitled to one vote per share. The Company declares and pays dividend in Indian Rupee. The dividend proposed by the Board of the Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31 March 2014 the amount per share recognized as distribution to equity holders was Rs. Nil (31 March 2013 Rs. Nil). The total dividend appropriation for the year ended 31 March 2014 amounts to Rs. Nil (31 March 2013 Rs. Nil) including Corporate Dividend Tax of Rs. Nil (31 March 2013 Rs. Nil). In the event of the liquidation of the company, the holder of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion of the number of the equity shares held by the equity share holders.

On 28 September 2011, the Company has allotted 1,00,00,000 fully paid up Non-Convertible Cumulative Redeemable Preference Shares ("Preference Shares") of Rs. 10 each at a premium of Rs. 190 per share aggregating Rs. 200 Crores. The entire Preference Shares shall be redeemed, in one or more tranches, at any time within 20 years from the date of allotment at the amount equivalent to the sale proceeds of the Shares held in Dion Global Investment Shares Trust, subject to compliance with provisions of applicable enactments. The Preference Shares shall carry right to receive dividend not exceeding 1% p.a. on the face value of the shares subject to applicable provisions of the Income-tax Act, 1961. In the event of winding up, holders of preference shares shall be entitled to preferential right of redemption of the amount paid up and accumulated dividend thereon. The accumulated dividend on Preference Shares till March 31, 2014 is Rs. 25,06,849.

* Consequent to the merger of Satyam Computers Services Limited ("Satyam") into Tech Mahindra Limited, the name of Satyam stands substituted with Tech Mahindra Limited.

2.4 The particulars of shares reserved for issue under options are as under:

The Shareholders of the Company had approved the Dion Global Employee Stock Option Scheme – 2011 ("Scheme") on March 18, 2011.

Every two options entitle the holder to exercise the right to apply for and seek allotment of one equity share of Rs. 10/- each.

Particulars of options granted and lapsed under the scheme are as below: Options Outstanding as at the start of the year 139,281

Options granted during the year –

Options exercised during the year –

Options cancelled during the year –

Options outstanding as at the year end 139,281

Employee Share-Based Cost is accounted for by the Company based on intrinsic value method and since on both the grant dates the market price is lower than exercise price hence no cost have been recognized by the Company.

Loss of the company would have been higher by Rs. 2,908,397 (Previous year Rs. 2,908,397) if accounting was done based on fair value of stock option instead of intrinsic value of stock option.

There is no impact on earning per share due to intrinsic value method as Company has incurred a loss during the year ( Refer note 30). 2.5 Other Disclosures:

Out of above fully paid up equity shares of Rs. 10/- each, 4,111,842 equity shares were issued to Dion Global Investment Shares Trust (sole beneficiary of which is Dion Global Solutions Limited - Refer Interest in Beneficiary Trust in Note 14). The Equity Shares were issued to the Trust, without any payment being made, pursuant to a Scheme of Arrangement as sanctioned by the Hon''ble High Court of Delhi vide its order dated 28 July 2010.

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Mar 31, 2013

A) BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on going concern basis and in terms of the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 in compliance with Section 211(3C) of the Companies Act, 1956. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realisation in respect of incomes. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles in India.

b) USE OF ESTIMATES

The presentation of financial statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which results are known / materialized.

c) REVENUE RECOGNITION

i) Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

ii) Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license.

iii) Subscription revenue from data base products is recognized proportionately over the period of subscription.

iv) Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

v) Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

vi) Dividend Income is accounted for as income when the right to receive dividend is established.

vii) Interest and other dues are accounted on accrual basis.

viii) Revenue excludes Value added tax/sales tax and service tax.

ix) Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in trade accounts receivable. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities.

d) TANGIBLE ASSETS

Fixed assets are stated at cost less accumulated depreciation. Cost includes duties, taxes and other expenses incidental to development / acquisition and installation.

e) INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost. In respect of internally developed software, costs include development costs directly attributable to the design and development of software.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

f) 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, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Statement of Profit and Loss to the extent the carrying amount exceeds the recoverable amount. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

g) BORROWING COSTS

Borrowing costs incurred for the acquisition of qualifying assets are recognized as part of cost of such assets when it is considered probable that they will result in future economic benefits to the Company. Other ancillary costs incurred in obtaining the borrowings which are not eligible for capitalisation are amortized over the tenure of Borrowings.

h) DEPRECIATION / AMORTIZATION

Depreciation on fixed assets (other than Intangible) is provided on straight line method as per the following rates:

Leasehold improvements are amortized over the lease period or 6 years whichever is earlier. In respect of assets acquired / sold during the year, depreciation is charged on pro-rata basis.

Intangible assets are amortized over a period of three to six years on a straight-line basis, commencing from the date the asset is available to the company for its use.

Fixed assets individually costing up to Rs. 5,000 are depreciated at the rate of 100% on purchase.

i) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences resulting from the settlement of such transactions and from the restatement of such monetary assets and liabilities are recognized in the Statement of Profit and Loss.

j) INVESTMENTS

Long-term investments are valued at cost. Cost includes incidental charges incurred towards acquisition of such investments. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary in nature. Current investments are valued at lower of cost and fair value.

k) CASH & CASH EQUIVALENTS

Cash comprises cash at bank. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value.

l) STOCK BASED COMPENSATION

The Stock Options granted by the Company are accounted for as per the accounting treatment prescribed by Securities & Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the guidance note on Accounting for Stock Options issued by the Institute of Chartered Accountants of India, whereby the intrinsic value of the Options are recognized as deferred employee compensation. The deferred employee compensation is charged to Statement of Profit and Loss on a straight line basis over the vesting period of Options.

m) EMPLOYEE BENEFITS

i) Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to profit and loss account as incurred.

ii) Gratuity liability is a defined obligation and is wholly unfunded. The company accounts for liability for future gratuity benefits based on an actuarial valuation.

iii) The employees of the company are entitled to compensated absences and leave encashment as per the policy of the company, the liability in respect of which is provided, based on an actuarial valuation.

iv) Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognized immediately in the statement of profit and loss as income or expenses.

v) The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by an employee is recognized during the period when the employee renders the services.

n) TAXES ON INCOME

Current tax is determined on the basis of the Income Tax Act, 1961.

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 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 a reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized, except for unabsorbed depreciation and carry forward of losses under the tax laws where deferred tax assets are recognized only to the extent that 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.

o) PROVISIONS AND CONTINGENT LIABILITIES

A Provision is 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. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date.

Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation.

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty is treated as contingent and to the extent not provided for are disclosed by way of notes to the accounts.

p) ACCOUNTING FOR LEASES

Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

Assets acquired under leases where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Statement of Profit and Loss on accrual basis.

q) OPERATING CYCLE

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 VI to the Companies Act,1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non current classification of assets and liabilities.

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Mar 31, 2012

A) BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on going concern basis and in terms of the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 in compliance with Section 211(3C) of the Companies Act, 1956. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realisation in respect of incomes. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles in India.

The Company has prepared its financial statements in accordance with Schedule VI as inserted by Notification- S.O. 447(E), dated 28.2.2011 (As amended by Notification No F.NO. 2/6/2008-CL-V, Dated 30.3.2011). The Schedule does not impact recognition and measurement principle followed for the preparation of financial statement for accounting in subsidiaries companies. However it has necessitated significant changes in the presentation of and disclosures in financial statements. The Company has reclassified its previous year figures to confirm to the classification as per the aforesaid Schedule.

b) USE OF ESTIMATES

The presentation of Financial Statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which results are known / materialized.

c) REVENUE RECOGNITION

i) Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

ii) Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license.

iii) Subscription revenue from data base products is recognized proportionately over the period of subscription.

iv) Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

v) Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

vi) Dividend Income is accounted for as income when the right to receive dividend is established.

vii) Interest and other dues are accounted on accrual basis.

viii) Revenue excludes Value added tax/sales tax and service tax.

ix) Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in trade accounts receivable. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities.

d) FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. Cost includes duties, taxes and other expenses incidental to development / acquisition and installation. In respect of internally developed software, costs include development costs directly attributable to the design and development of software.

e) BORROWING COSTS

Borrowing costs incurred for the acquisition of qualifying assets are recognized as part of cost of such assets when it is considered probable that they will result in future economic benefits to the Company. While other borrowing costs are expensed in the period in which they are incurred.

f) STOCK IN TRADE

Stock in trades are valued at lower of Cost or Realizable Value.

g) INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

h) DEPRECIATION / AMORTIZATION

Depreciation on fixed assets (other than Intangible) is provided on straight line method as per the following rates:

Leasehold improvements are amortized over the lease period or 6 years whichever is earlier. In respect of assets acquired / sold during the year, depreciation is charged on pro-rata basis.

Intangible assets are amortized over a period of three to six years on a straight-line basis, commencing from the date the asset is available to the company for its use.

Fixed assets individually costing up to Rs.5,000 are depreciated at the rate of 100% on purchase.

i) FOREIGN CURRENCY TRANSACTIONS

Long-term investments are valued at cost. Cost includes incidental charges incurred towards acquisition of such investments. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary in nature. Current investments are valued at lower of cost and fair value.

j) INVESTMENTS

Long-term investments are valued at cost. Cost includes incidental charges incurred towards acquisition of such investments. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary in nature. Current investments are valued at lower of cost and fair value.

k) STOCK BASED COMPENSATION

The Stock Options granted by the Company are accounted for as per the accounting treatment prescribed by Employee Stock Option Scheme and Employee Stock Purchase Guidelines, 1999 and the guidance note on

Accounting for Stock Options issued by the Institute of Chartered Accountants of India, whereby the intrinsic value of the Options are recognized as deferred employee compensation. The deferred employee compensation is charged to Profit and Loss Account on a straight line basis over the vesting period of Options.

l) EMPLOYEE BENEFITS

i) Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to profit and loss account as incurred.

ii) Gratuity liability is a defined obligation and is wholly unfunded. The company accounts for liability for future gratuity benefits based on an actuarial valuation.

iii) The employees of the company are entitled to compensated absences and leave encashment as per the policy of the company, the liability in respect of which is provided, based on an actuarial valuation.

iv) Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognized immediately in the profit and loss account as income or expenses.

v) The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by an employee is recognized during the period when the employee renders the services.

m) TAXES ON INCOME

Current tax is determined on the basis of the Income Tax Act, 1961.

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 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 a reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized, except for unabsorbed depreciation and carry forward of losses under the tax laws where deferred tax assets are recognized only to the extent that 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.

n) PROVISIONS AND CONTINGENT LIABILITIES

A Provision is 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. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date.

Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation.

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty is treated as contingent and to the extent not provided for are disclosed by way of notes to the accounts.

o) 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, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit and Loss Account to the extent the carrying amount exceeds the recoverable amount. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

p) ACCOUNTING FOR LEASES

Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

Assets acquired under leases where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Profit and Loss Account on accrual basis.

q) OPERATING CYCLE

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 VI to the Companies Act,1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

---

Mar 31, 2011

A) BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting to comply in all material aspects with the applicable accounting principles in India, the applicable Accounting Standards notified under section 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

b) USE OF ESTIMATES

The presentation of Financial Statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which results are known / materialized.

c) REVENUE RECOGNITION

1. Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

2. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license.

3. Subscription revenue from data base products is recognized proportionately over the period of subscription.

4. Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

5. Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

6. Dividend Income is accounted for as income when the right to receive dividend is established.

7. Interest and other dues are accounted on accrual basis.

8. Revenue excludes Value added tax/sales tax and service tax.

9. Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in trade accounts receivable. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities.

d) FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. Cost includes duties, taxes and other expenses incidental to development / acquisition and installation. In respect of internally developed software, costs include development costs directly attributable to the design and development of software.

e) BORROWING COSTS

Borrowing costs incurred for the acquisition of qualifying assets are recognized as part of cost of such assets when it is considered probable that they will result in future economic benefits to the Company. While other borrowing costs are expensed in the period in which they are incurred.

f) STOCK IN TRADE

Stock in trades are valued at lower of Cost or Realizable Value.

g) INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

Leasehold improvements are amortized over the lease period or 6 years whichever is earlier. In respect of assets acquired / sold during the year, depreciation is charged on pro-rata basis.

Intangible assets are amortized over a period of three to six years on a straight-line basis, commencing from the date the asset is available to the company for its use.

Fixed assets individually costing up to Rs. 5,000 are depreciated at the rate of 100% on purchase.

i) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences resulting from the settlement of such transactions and from the restatement of such monetary assets and liabilities are recognized in the Profit and Loss Account.

j) INVESTMENTS

Long-term investments are valued at cost. Cost includes incidental charges incurred towards acquisition of such investments. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary in nature. Current investments are valued at lower of cost and fair value.

k) STOCK BASED COMPENSATION

The Stock Options granted by the Company are accounted for as per the accounting treatment prescribed by Employee Stock Option Scheme and Employee Stock Purchase Guidelines, 1999 and the guidance note on Accounting for Stock Options issued by the Institute of Chartered Accountants of India, whereby the intrinsic value of the Options are recognized as deferred employee compensation. The deferred employee compensation is charged to Profit and Loss Account on a straight line basis over the vesting period of Options.

l) EMPLOYEE BENEFITS

1. Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to profit and loss account as incurred.

2. Gratuity liability is a defined obligation and is wholly unfunded. The company accounts for liability for future gratuity benefits based on an actuarial valuation.

3. The employees of the company are entitled to compensated absences and leave encashment as per the policy of the company, the liability in respect of which is provided, based on an actuarial valuation.

4. Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognized immediately in the profit and loss account as income or expenses.

5. The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by an employee is recognized during the period when the employee renders the services.

m) TAXES ON INCOME

Current tax is determined on the basis of the Income Tax Act, 1961.

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 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 a reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized, except for unabsorbed depreciation and carry forward of losses under the tax laws where deferred tax assets are recognized only to the extent that 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.

n) PROVISIONS AND CONTINGENT LIABILITIES

A Provision is 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. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date.

Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation.

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty is treated as contingent and to the extent not provided for are disclosed by way of notes to the accounts.

o) 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, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit and Loss Account to the extent the carrying amount exceeds the recoverable amount. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

p) ACCOUNTING FOR LEASES

Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

Assets acquired under leases where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Profit and Loss Account on accrual basis.

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Mar 31, 2010

A) BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting to comply in all material aspects with the applicable accounting principles in India, the applicable Accounting Standards notified under section 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

b) USE OF ESTIMATES

The presentation of Financial Statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which results are known/materialized.

c) REVENUE RECOGNITION

1. Revenue from fixed price service contracts is recognized in proportion to the degree of completion of service by reference to and based on milestones/acts performed as specified in the contracts and in case of time and material service contracts, it is recognized on the basis of hours completed and material used.

2. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license.

3. Subscription revenue from data base products is recognized proportionately over the period of subscription.

4. Revenue from annual maintenance contracts is recognized proportionately over the period in which services are rendered.

5. Revenue from Software Consultancy and Support Services is recognized based on proportionate completion method as per specific agreements with the customers.

6. Dividend Income is accounted for as income when the right to receive dividend is established.

7. Interest and other dues are accounted on accrual basis.

8. Revenue excludes Value added tax/sales tax and service tax.

9. Revenue in excess of billings on service contracts is recorded as unbilled receivables and is included in trade accounts receivable. Billings in excess of revenue that is recognized on service contracts are recorded as deferred revenue until the above revenue recognition criteria are met and are included in current liabilities.

d) FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. Cost includes duties, taxes and other expenses incidental to development/acquisition and installation. In respect of internally developed software, costs include development costs directly attributable to the design and development of software.

e) BORROWING COSTS

Borrowing costs incurred for the acquisition of qualifying assets are recognized as part of cost of such assets when it is considered probable that they will result in future economic benefits to the Company. While other borrowing costs are expensed in the period in which they are incurred.

f) STOCK IN TRADE

Stock in trade are valued at lower of Cost or Realizable Value.

g) INTANGIBLE ASSETS

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at their acquisition cost and in case of assets acquired on merger, at their carrying values.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

h) DEPRECIATION/AMORTIZATION

Fixed Assets (other than leasehold land and intangible assets) are depreciated on the Straight Line Method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Leasehold improvements are amortized over the lease period or 6 years whichever is earlier. In respect of assets acquired/sold during the year, depreciation is charged on pro-rata basis.

Asset Class Depreciation Rate

Plant & Machinery 4.75%

Computer System 16.21%

Furniture & Fixtures 6.33%

Vehicles 9.50%

Intangible assets are amortized over a period of three to six years on a straight-line basis, commencing from the date the asset is available to the company for its use.

Fixed assets individually costing upto Rs. 5,000 are depreciated at the rate of 100% on purchase.

i) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences resulting from the settlement of such transactions and from the restatement of such monetary assets and liabilities are recognized in the Profit and Loss Account.

j) INVESTMENTS

Long-term investments are valued at cost. Cost includes incidental charges incurred towards acquisition of such investments. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary in nature. Current investments are valued at lower of cost and fair value.

k) STOCK BASED COMPENSATION

The Company measures the compensation cost relating to employee stock options using the intrinsic value method. The compensation cost is amortised over the vesting period of the option.

I) EMPLOYEE BENEFITS

1. Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to profit and loss account as incurred.

2. Gratuity liability is a defined obligation and is wholly unfunded. The company accounts for liability for future gratuity benefits based on an actuarial valuation.

3. The employees of the company are entitled to compensated absences and leave encashment as per the policy of the company, the liability in respect of which is provided, based on an actuarial valuation.

4. Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognized immediately in the profit and loss account as income or expenses.

5. The undiscounted amount of short - term employee benefits expected to be paid in exchange for services rendered by an employee is recognized during the period when the employee renders the services.

m) TAXES ON INCOME

Current tax is determined on the basis of the Income Tax Act, 1961.

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 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 a reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized, except for unabsorbed depreciation and carry forward of losses under the tax laws where deferred tax assets are recognized only to the extent that 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.

n) PROVISIONS AND CONTINGENT LIABILITIES

A Provision is 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. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date.

Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation. When the Company expects a provision to be reimbursed, the reimbursement is recognized as a separate asset, only when such reimbursement is virtually certain.

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty is treated as contingent and to the extent not provided for are disclosed by way of notes to the accounts.

o) IMPAIRMENT OF FIXED 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, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit and Loss Account to the extent the carrying amount exceeds the recoverable amount. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

p) ACCOUNTING FOR LEASES

Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

Assets acquired under leases where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Profit and Loss Account on accrual basis.

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Mar 31, 2009

A) BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles. The Company follows prudential norms for income recognition and provisioning for non performing assets.

b) USE OF ESTIMATES

The presentation of Financial Statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which results are known / materialized.

c) REVENUE RECOGNITION

1. Revenue from sale o f IT Products is recognized where persuasive evidence of an arrangement exists, the product has been delivered, the sales price is fixed or determinable and collectability is reasonably assured.

2. Revenue from sales of shares & securities are recognised on the date of sale of such shares & securities.

3. Revenue from IT Services is recognised either on time and material basis or fixed price basis or based on certain measurable criteria as per relevant agreements. Maintenance revenue in respect of products is deferred and recognized ratably over the term of the agreement.

4. Lease rentals shows old recoveries from the defaulting parties and the same is accounted on the receipts basis.

5. Dividend Income is accounted for as income when the right to receive dividend is established.

6. Interest and other dues are accounted on accrual basis except in respect of Non- Performing Assets, Income against which is recognized on cash basis.

7. Revenue excludes Value added tax/sales tax and service tax.

d) FIXED ASSETS

Fixed assets are stated at cost inclusive of incidental expenses, less accumulated depreciation.

e) STOCK IN TRADE

1. Trading Stocks of Shares & Securities are valued at lower of Cost or Realisable Value.

2. Stocks of IT Products are valued at lower of Cost or Realisable Value. Cost is computed on `Weighted Average Method'.

f) INTANGIBLE ASSETS

Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated depreciation and accumulated impairment losses, if any. Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

g) DEPRECIATION

1. Immovable assets at the leased premises including civil works, electrical items are capitalized as lease improvement and are accordingly being amortized over the primary period of lease subject to maximum of 6 years.

2. Depreciation on fixed assets are provided on straight line method as per the rates prescribed under Schedule XIV of the Companies Act, 1956.

3. Depreciation on additions/ deletions to fixed assets is provided on pro-rata basis from/up to the date the asset is put to use/ discarded.

4. Assets costing not more than Rs.5,000 are fully depreciated in the year of acquisition.

h) INVESTMENTS

Investments are classified into long term investments and current investments. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are accounted at cost and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market / fair value, whichever is lower.

i) EMPLOYEE BENEFITS

1. Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to profit and loss account as incurred.

2. Gratuity liability is a defined obligation and is wholly unfunded. The company accounts for liability for future gratuity benefits based on an actuarial valuation.

3. The employees of the company are entitled to compensate absences and leave encashment as per the policy of the company, the liability in respect of which is provided, based on an actuarial valuation.

4. Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognised immediately in the profit and loss account as income or expenses.

5. The undiscounted amount of short - term employee benefits expected to be paid in exchange for services rendered by an employee is recognised during the period when the employee renders the services.

j) TAXES ON INCOME

1. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

2. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax asset, on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

k) FRINGE BENEFIT TAX

The Fringe Benefit Tax has been calculated and accounted for in accordance with the provisions of the Income Tax Act, 1961 of India and the Guidance note on Accounting for Fringe Benefits Tax issued by the Institute of Chartered Accountants of India.

l) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

m) IMPAIRMENT OF FIXED ASSETS

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

n) BORROWING COST

Borrowing costs are accounted for as expense in the period in which they are incurred and they are related to.

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Mar 31, 2008

A) BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles. The Company follows prudential norms for income recognition and provisioning for non performing assets.

b) USE OF ESTIMATES

The presentation of Financial Statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which results are known / materialized.

c) REVENUE RECOGNITION

1. Revenue from sale of IT Products is recognised where persuasive evidence of an arrangement exists, the product has been delivered, the sales price is fixed or determinable and collectability is reasonably assured.

2. Revenue from sales of shares & securities are recognised on the date of sale of such shares & securities.

3. Revenue from IT Services is recognised either on time and material basis or fixed price basis or based on certain measurable criteria as per relevant agreements. Maintenance revenue in respect of products is deferred and recognised ratably over the term of the agreement.

4. Lease rentals shows old recoveries from the defaulting parties and the same is accounted on the receipts basis.

5. Dividend Income is accounted for as income when the right to receive dividend is established.

6. Interest and other dues are accounted on accrual basis except in respect of Non- Performing Assets, Income against which is recognised on cash basis.

7. Revenue excludes Value added tax/sales tax and service tax.

d) FIXED ASSETS

Fixed assets are stated at cost inclusive of incidental expenses, less accumulated depreciation.

e) STOCK IN TRADE

1. Trading Stocks of Shares & Securities are valued at lower of Cost or Realisable Value.

2. Stocks of IT Products are valued at lower of Cost or Realisable Value. Cost is computed on Weighted Average Method.

INTANGIBLE ASSETS

Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated depreciation and accumulated impairment losses, if any.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

g) DEPRECIATION

1. Immovable assets at the leased premises including civil works, electrical items are capitalized as lease improvement and are accordingly being amortized over the primary period of lease subject to maximum of 6 years.

2. Depreciation on fixed assets are provided on straight line method as per the rates prescribed under Schedule XIV of the Companies Act, 1956.

3. Depreciation on additions/deletions to fixed assets is provided on pro-rata basis from/up to the date the asset is put to use/ discarded.

4. Assets costing not more than Rs.5,000 are fully depreciated in the year of acquisition.

h) INVESTMENTS

Investments are classified into long term investments and current investments. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are accounted at cost and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market / fair value, whichever is lower.

i) EMPLOYEE BENEFITS

1. Provident fund is a defined contribution scheme and the contributions as required by the statute are charged to profit and loss account as incurred.

2. Gratuity liability is a defined obligation and is wholly unfunded. The company accounts for liability for future gratuity benefits based on an actuarial valuation.

3. The employees of the company are entitled to compensate absences and leave encashment as per the policy of the company, the liability in respect of which is provided, based on an actuarial valuation.

4. Actuarial gains and losses comprise experience adjustments and the effects of changes in the actuarial assumptions and are recognised immediately in the profit and loss account as income or expenses.

5. The undiscounted amount of short-term employee benefits expected to be paid in exchange for services rendered by an employee is recognised during the period when the employee renders the services.

j) TAXES ON INCOME

1. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

2. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax asset, on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

k) FRINGE BENEFIT TAX

The Fringe Benefit Tax has been calculated and accounted for in accordance with the provisions of the Income Tax Act, 1961 of India and the Guidance note on Accounting for Fringe Benefits Tax issued by the Institute of Chartered Accountants of India.

l) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

m) IMPAIRMENT OF FIXED ASSETS

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

n) BORROWING COST

Borrowing costs are accounted for as expense in the period in which they are incurred and they are related to.

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Mar 31, 2007

A) BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles. The Company follows prudential norms for income recognition and provisioning for non performing assets.

b) USE OF ESTIMATES

The presentation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which results are known / materialized.

c) REVENUE RECOGNITION

1. Revenue from sale of IT Products is recognized where persuasive evidence of an arrangement exists, the product has been delivered, the sales price is fixed or determinable and collectibility is reasonably assured. Revenue from IT Products sales are shown net of sales tax.

2. Revenue from sales of shares & securities are recognised on the date of sale of such shares & securities.

3. Revenue from IT Services is recognised either on time and material basis or fixed price basis or based on certain measurable criteria as per relevant agreements. Maintenance revenue in respect of products is deferred and recognized ratably .over the term of the agreement.

4. Lease rentals shows recovery from the defaulting parties and the same is accounted on the receipts basis.

5. Dividend Income is accounted for as income when the right to receive dividend is established.

6. Interest and other dues are accounted on accrual basis except in respect of Non- Performing Assets, Income against which is recognized on cash basis.

7. Revenue excludes service tax.

d) FIXED ASSETS

Fixed assets are stated at cost inclusive of incidental expenses, less accumulated depreciation.

e) STOCK IN TRADE

1. Trading Stocks of Shares & Securities are valued at lower of Cost or Realisable Value.

2. Stocks of IT Products are valued at lower of Cost or Realisable Value. Cost is computed on Weighted Average Method.

f) INTANGIBLE ASSETS

Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated depreciation and accumulated impairment losses, if any.

Computer software which is not an integral part of the related hardware is classified as an intangible asset and is being amortized over the estimated useful life.

g) DEPRECIATION

1. Immovable assets at the leased premises including civil works, electrical items are capitalized as lease improvement and are accordingly being amortized over the primary period of lease subject to maximum of 5 years.

2. Depreciation on fixed assets are provided on straight line method as per the rates prescribed under Schedule XIV of the Companies Act, 1956.

3. Depreciation on additions/ deletions to fixed assets is provided on pro-rata basis from/upto the date the asset is put to use/ discarded.

4. Assets costing less than Rs.5,000 are fully depreciated in the year of acquisition. h) INVESTMENTS

Investments are classified into long term investments and current investments. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments, long term investments are accounted at cost and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market / fair value, whichever is lower.

I) RETIREMENT BENEFITS

1., Companys contributions to Provident Fund and Employees State Insurance Schemes are charged against revenue.

2. Provision for Gratuity and Leave Encashment liability to the employees is made on the basis of actuarial valuation.

J) TAXES ON INCOME .

1. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

2. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax asset, on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

k) FRINGE BENEFIT TAX

The Fringe Benefit Tax has been calculated and accounted for in accordance with the provisions of the Income Tax Act, 1961 of India and the Guidance note on Accounting for Fringe Benefits Tax issued by the Institute of Chartered Accountants of India.

I) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

m) IMPAIRMENT OF FIXED ASSETS

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

n) BORROWING COST

Borrowing costs are accounted for as expense in the period in which they are incurred and they are related to.

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Mar 31, 2005

1. Significant Accounting Policies :

a. The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles. The Company follows prudential norms for income recognition and provisioning for non-performing assets as prescribed by Reserve Bank of India nor Non-Banking Finance Companies.

b. Revenue Recognition

- Interest and other dues are accounted on accrual basis except in respect of Non-Performing Assets, Income against which is recognised on cash basis.

- Lease Rental are recognised in instalments as accrued over the period of Lease.

- Income from Sale of Investments are included in earnings on average cost basis.

c. Preliminary Expenses is amortised over a period of 10 years.

d. Retirement Benefits

- The monthly contributions towards Provident Fund and Employees' State Insurance Schemes are charged against revenue.

- Provision for liability in respect of gratuity to employees is accounted on the basis of Actuarial Valuation.

- Provision for liability in respect of leave encashment benefits are made based on Company Policy.

- Contribution to Super Annuation Fund is being made as per the scheme of the Company.

e. Fixed Assets are stated at cost less accumulated depreciation.

f. Depreciation

- Leased Assets are depreciated by a method derived from the guidance note on `Accounting for leases' issued by the Institute of Chartered Accountants of India. under which cost of the asset is depreciated over the primary lease period. This method determines the principal recovery based on the interest rate implicit in the transaction. The principal recovery or the depreciation as per Schedule XIV (Straight Line Method) whichever is higher, is provided as depreciation.

- Owned Assets are depreciated on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Assets costing upto Rs. 5000/- are fully depreciated in the year of purchase.

g. Investments and Stock in Trade

- Investments (long term) are stated at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of investments wherever applicable.

- Trading Stocks of Shares & Securities are valued at lower of Cost or Realisable Value,

h. Stock on Hire Purchase is valued at Agreement Value less amount received/receivable.

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Mar 31, 2004

1. Significant Accounting Policies :

a. The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles. The Company follows prudential norms for income recognition and provisioning for non-performing assets as prescribed by Reserve Bank of India for Non-Banking Finance Companies.

b. Revenue Recognition

- Interest and other dues are accounted on accrual basis except in respect of Non-Performing Assets, Income against which is recognised on cash basis.

- Lease Rental are recognised in instalments as accrued over the period of Lease.

- Income from Sale of investments are included in earnings on average cost basis.

c. Preliminary Expenses is amortised over a period of 10 years.

d. Retirement Benefits

- The monthly contributions towards Provident Fund and Employees' State Insurance Schemes are charged against revenue.

- Provision for liability in respect of gratuity to employees is accounted on the basis of Actuarial | Valuation.

- Provision for liability in respect of leave encashment Benefits are made based on Company Policy.

- Contribution to Super Annuation Fund is being made as per the scheme of the Company. e. Fixed Assets are stated at cost less accumulated depreciation. t. Depreciation

- Leased Assets are depreciated by a method derived from the guidance note on `Accounting for leases' issued by the Institute of Chartered Accountants of India, under which cost of the asset is depreciated over the primary lease period. This method determines the principal recovery based on the interest rate implicit in the transaction. The principal recovery or the depreciation as per Schedule XIV (Straight Line Method) whichever is higher, is provided as depreciation.

- Owned Assets are depreciated on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Assets of costing upto Rs. 5000/- are fully depreciated in the year of purchase.

g. Investments and Stock in Trade

- Investments (long term) are stated at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of investments wherever applicable.

- Trading Stocks of Shares & Securities are valued at lower of Cost or Realisable Value.

h. Stock on Hire Purchase is valued at Agreement Value less amount received/receivable.

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Mar 31, 2003

1. SIGNIFICANT ACCOUNTING POLICIES: A. ACCOUNTING CONVENTION

The accounts are prepared in accordance with generally accepted accounting principles and as per guidelines issued by Reserve Bank of India wherever applicable. The Company follows the accrual method of accounting and historical cost convention and accounts are prepared on a going concern basis.

B. REVENUE RECOGNITION

a) Interest and other dues are accounted on accrual basis except In respect of Non-Performing Assets, income against which Is recognised on cash basis.

b) Dividend income is recognised on cash basis.

c) Lease Rentals are recognised as per the terms and conditions of the agreements.

d) Income from sale of investments are included in earnings on average cost basis.

e) Management fee, credit syndication & income from other financial services Is recognised on cash basis.

C. Preliminary expenses is amortised over a period of 10 years.

D. RETIREMENT BENEFITS

a) The monthly contributions towards Provident Fund and Employees State Insurance Schemes are charged against revenue.

b) Liability in respect of gratuity to employees is accounted on the basis of actuarial Valuation.

c) Contribution to Super Annuation Fund is being made as per the scheme of the Company.

E. FIXED ASSETS

Fixed assets are stated at cost less depreciation.

P. DEPRECIATION

Leased Assets are depreciated by a method derived from the guidance note on Accounting for leases issued by the Institute of Chartered Accountants of India, under which cost of the asset is depreciated over the primary lease period. This method determines the principal recovery based on the Interest rate implicit In the transaction. The principal recovery or the depreciation as per Schedule XIV (Straight line method) whichever is higher, is provided as depreciation. Other Assets are depreciated on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Assets costing upto Rs.5,000 are fully depreciated in the year of purchase.

G. INVESTMENTS & STOCK IN TRADE

a) The securities acquired with the intention of short term holding are considered as stock in trade and shown as current assets. Other securities acquired with the intention of long term holding are considered as Long Term Investments.

b) The securities held as stock in trade under current assets are valued at cost or market value whichever is lower.

c) Long Term Investments are shown in the Balance Sheet at cost. In case of unquoted investments,

provision for diminution in value of investments is made, If such diminution Is of a permanent nature in the opinion of the management.

H. CURRENT ASSETS

Stock on Hire Purchase is valued at Agreement value less amount received/receivable.

I. RBI PRUDENTIAL NORMS & PROVISION IN RESPECT OF NON PERFORMING ASSETS

The Company adheres to the directions of the Reserve Bank of India on Prudential Norms of Income recognition, Provisioning for bad and doubtful debts etc. Issued from time to time. Accordingly, the Company has not accrued Income In respect of Non Performing Assets and has made provisions In respect of the said assets in accordance with those guidelines. As the Net Worth of the Company has been fully eroded as on 31st March, 2003, the Company has not been able to meet with the requirement of Capital Adequacy and concentration of credit/Investment.

J. DEFERRED TAX

The Company has unabsorbed depreciation and carry forward losses under the Income Tax Act.1961. In the absence of virtual certainty of future taxable income, deferred tax assets/liabilities are not recognized In the accounts.

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Mar 31, 2002

1. SIGNIFICANT ACCOUNTING POLICIES :

A. ACCOUNTING CONVENTION

The accounts are prepared in accordance with generally accepted accounting principles and as per guidelines issued by Reserve Bank of India wherever applicable. The Company follows the accrual method of accounting and historical cost convention.

B. REVENUE RECOGNITION

a). Interest and other dues are accounted on accrual basis except in respect of Non Performing Assets, income against which is recognised on cash basis.

b) Dividend income is recognised on cash basis.

c) Lease Rentals are recognised as per the terms and conditions of the agreements.

d) Income from sale of investments are included in earnings on average cost basis.

e) Management fee, credit syndication & income from other financial services is recognised on cash basis.

C. AMORTISATION OF EXPENSES

- Preliminary expenses : Over a period of 10 years.

D. RETIREMENT BENEFITS

a) The monthly contributions towards Provident Fund and Employees State Insurance Schemes are charged against revenue.

b) Liability in respect of gratuity to employees is accounted on the basis of actuarial Valuation.

c) Contribution to Super Annuation Fund is being made as per the scheme of the Company.

E. FIXED ASSETS

Fixed assets are stated at cost less depreciation.

F. DEPRECIATION

Leased Assets are depreciated by a method derived from the guidance note on `Accounting for leases issued by the Institute of Chartered Accountants of India, under which cost of the asset is depreciated over the primary lease period. This method determines the principal recovery based on the interest rate implicit in the transaction. The principal recovery or the depreciation as per Schedule XIV (Straight line method) whichever is higher, is provided as depreciation.

Other Assets are depreciated on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Assets costing upto Rs.5,000 are fully depreciated in the year of purchase.

G. INVESTMENTS & STOCK IN TRADE

a) The securities acquired with the intention of short term holding & trading positions are considered as stock in trade and shown as current assets. Other securities acquired with the intention of long term holding are considered as Long Term Investments.

b) The securities held as stock in trade under current assets are valued at cost or market value whichever is lower.

c) Long Term Investments are shown in the Balance Sheet at cost. In case of unquoted investments, provision for diminution in value of investments is made, if such diminution is of a permanent nature in the opinion of the management.

H. CURRENT ASSETS

Stock on Hire Purchase is valued at Agreement value less amount received/receivable.

I. RBI PRUDENTIAL NORMS & PROVISION IN RESPECT OF NON PERFORMING ASSETS

The company adheres to the directions of the Reserve Bank of India on Prudential Norms of Income recognition, Provisioning for bad and doubtful debts etc. issued from time to time. Accordingly, the company has not accrued Income in respect of Non Performing Assets and has made provisions in respect of the said assets in accordance with those guidelines. As the Net Worth of the Company has been fully eroded as on 31st March, 2002, the Company has not been able to meet with the requirement of Capital Adequacy and concentration of credit/investment.

J. DEFERRED TAX

The Company has unabsorbed depreciation and carry forward losses under the Income Tax Act, 1961. In the absence of virtual certainty of future taxable income, deferred tax assets/liabilities are not recognized in the accounts.

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Mar 31, 2001

A. ACCOUNTING CONVENTION

The accounts are prepared in accordance with generally accepted accounting principles and as per guidelines issued by Reserve Bank of India wherever applicable. The Company follows the accrual method of accounting and historical cost convention.

b. REVENUE RECOGNITION

a) Interest and other dues are accounted on accrual basis except in respect of Non Performing Assets, income against which is recognised on cash basis.

b) Dividend income is recognised on cash basis.

c) Lease Rentals are recognised as per the terms and conditions of the agreements.

d) Income from sale of investments are included in earnings on average cost basis.

e) Management fee, credit syndication & income from other financial services is recognised on cash basis. c. AMORTISATION OF EXPENSES

Preliminary expenses : Over a period of 10 years.

d. RETIREMENT BENEFITS

a) The monthly contributions towards Provident Fund and Employee's State Insurance Schemes are charged against revenue.

b) Liability in respect of gratuity to employees is accounted on the basis of actuarial Valuation.

c) Contribution to Super Annuation Fund is being made as per the scheme of the Company.

e. FIXED ASSETS

Fixed assets are stated at cost less depreciation.

f. DEPRECIATION

Leased Assets are depreciated by a method derived from the guidance note on 'Accounting for leases' issued by the Institute of Chartered Accountants of India, under which cost of the asset is depreciated | over the primary lease period. This method determines the principal recovery based on the interest rate implicit in the transaction. The principal recovery or the depreciation as per Schedule XIV (Straight line method) whichever is higher, is provided as depreciation.

Other Assets are depreciated on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Assets costing upto Rs.5,000 are fully depreciated in the year of purchase.

g. INVESTMENTS & STOCK IN TRADE

a) The securities acquired with the intention of short term holding & trading positions are considered as stock in trade and shown as current assets. Other securities acquired with the intention of long term holding are considered as Long Term Investments.

b) The securities held as stock in trade under current assets are valued at cost or market value whichever is lower.

c) Long Term Investments are shown in the Balance Sheet at cost. In case of quoted investments, provision for diminution in value of investments is made, if such diminution is of a permanent nature in the opinion of the management.

h. CURRENT ASSETS

Stock on Hire Purchase is valued at Agreement value less amount received/receivable.

i. RBI PRUDENTIAL NORMS & PROVISION IN RESPECT OF NON PERFORMING ASSETS

The company adheres to the directions of the Reserve Bank of India on Prudential Norms of Income recognition, Provisioning for bad and doubtful debts etc. issued from time to time. Accordingly, the company has not accrued Income in respect of Non Performing Assets and has made provisions in respect of the said assets in accordance with those guidelines.

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Mar 31, 2000

1. SIGNIFICANT ACCOUNTING POLICIES :

a. ACCOUNTING CONVENTION :

The accounts are prepared in accordance with generally accepted accounting principles and as per guidelines issued by Reserve Bank of India wherever applicable. The Company follows the accrual method of accounting and historical cost convention.

b. REVENUE RECOGNITION :

a) Interest and other dues are accounted on accrual basis except in respect of Non Performing Assets, income against which is recognised on cash basis.

b) Dividend income is recognised on cash basis.

c) Lease Rentals are recognised as per the terms and conditions of the agreements.

d) Income from sale of investments are included in earnings on average cost basis.

e) Management fee, credit syndication & income from other financial services is recognised on cash basis.

c. AMORTISATION OF EXPENSES :

- Equity/Preference Capital issue : Over a period of 5 years.

- Preliminary expenses : Over a period of 10 years.

- Debenture issue expenses : Over the tenor of the instrument.

- Fixed Deposit Mobilisation : Over the period of deposits. expenses

d. Contribution to Provident Fund, Superannuation and Gratuity payments are accounted for on cash basis.

e. FIXED ASSETS

Fixed assets are stated at cost less depreciation.

f. DEPRECIATION

Leased Assets are depreciated by a method derived from the guidance note on `Accounting for leases' issued by the Institute of Chartered Accountants of India, under which cost of the asset is depreciated over the primary lease period. This method determines the principal recovery based on the interest rate implicit in the transaction. The principal recovery or the depreciation as per Schedule XIV (Straight line method) whichever is higher, is provided as depreciation.

Other Assets are depreciated on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Assets costing upto Rs.5,000 are fully depreciated in the year of purchase.

g. INVESTMENTS & STOCK IN TRADE

a) The securities acquired with the intention of short term holding & trading positions are considered as stock in trade and shown as current assets. Other securities acquired with the intention of long term holding are considered as Long Term Investments.

b) The securities held as stock in trade under current assets are valued at cost or market value whichever is lower.

c) Long Term Investments are shown in the Balance Sheet at cost. In case of quoted investments, provision for diminution in value of investments is made, if such diminution is of a permanent nature in the opinion of the management.

h. CURRENT ASSETS :

Stock on Hire Purchase is valued at Agreement value less amount received/receivable.

i. RBI PRUDENTIAL NORMS :

The company adheres to the prudential norms prescribed by the Reserve Bank of India as amended from time to time for Non-Banking Finance Companies.

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Mar 31, 1999

A. ACCOUNTING CONVENTION

The financial statements have been prepared on historical cost basis of accounting. The company adopts accrual system of accounting unless stated otherwise.

B. INCOME

Lease Rentals : Recognised as per the terms and conditions of the agreement.

Bills Discounting : Accounted on Cash basis.

Dividends : Accounted on cash basis.

Investments : Accounted on the basis of date of transaction.

Management Fee : Recognised on execution of the agreements.

Others : Accounted on accrual basis.

C. AMORTISATION OF EXPENSES

Equity/Preference Capital issue : Over a period of 5 years.

Preliminary expenses : Over a period of 10 years.

Debenture issue expenses : Over the tenor of the instrument.

Public Deposit Mobilisation expenses : Over the period of deposits.

D. Contribution to Provident Fund Trust, Superannuation fund and Gratuity payments are accounted for on cash basis.

E. FIXED ASSETS

Fixed assets are stated at cost less depreciation.

F. DEPRECIATION

Leased Assets are depreciated by a method derived from the guidance note on 'Accounting for leases' issued by the Institute of Chartered Accountants of India, under which cost of the asset is depreciated over the primary lease period. This method determines the principal recovery based on the interest rate implicit in the transaction. The principal recovery or the depreciation as per Schedule XIV (Straight line method) whichever is higher, is provided as depreciation.

Other Assets are depreciated on Straight Line method in accordance with Schedule XIV to the Companies Act, 1956. Assets costing upto Rs.5,000 are fully depreciated in the year of purchase.

G. INVESTMENTS

Investments are stated at Cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of investments.

H. CURRENT ASSETS

Stock on Hire Purchase is valued at Agreement value less amount received/receivable.

I. PRUDENTIAL NORMS

The company adheres to the prudential norms prescribed by the Reserve Bank of India as amended from time to time for Non-Banking Finance Companies.

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Dec 31, 1997

1. ACCOUNTING CONVENTION :

The financial statements are prepared under the historical cost convention, in accordance with applicable mandatory accounting standards. The company follows accrual system of accounting, unless stated otherwise. 2. INCOME :

i. Lease Rentals : Recognised as per the terms and conditions of the agreement.

ii. Hire Purchase : Recognised on declining balance method based on rates implicit in transactions.

iii. Bills discounting : Accounted on Cash basis.

iv. Dividends : Accounted on Cash basis.

v. Investments : Accounted on the basis of contracts entered into.

vi. Merchant Banking

a. Fund Base : Accounted on Accrual Basis.

b. Non-Fund Base : Accounted on Cash basis.

vii. Management Fee : Recognised on execution of the agreements.

viii. Others : Accounted on accrual basis.

3. AMORTISATION OF EXPENSES :

i. Equity/Preference Capital issue expenses : Over a period of 5 years.

ii. Preliminary expenses : Over a period of 10 years.

iii. Debenture issue expenses : Over the tenor of the instrument.

iv. Fixed Deposit Mobilisation expenses : Over a period of 3 years.

4. Contribution to Provident Fund Trust, Superannuation fund and Gratuity payments are accounted for, on cash basis.

5. FIXED ASSETS :

Fixed assets are stated at cost less depreciation.

6. DEPRECIATION :

i. Leased Assets are depreciated by a method derived from the guidance note on 'Accounting for leases' issued by the Institute of Chartered Accountants of India, under which cost of the asset is depreciated over the primary lease period. This method determines the principal recovery based on the interest rate implicit in the transaction. The principal recovery or the depreciation as per Schedule XIV (Straight line method) whichever is higher, is provided as depreciation.

ii. Other Assets are depreciated on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Assets costing upto Rs. 5,000 are fully depreciated in the year of purchase.

7. INVESTMENTS :

Investments are stated at Cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of investments.

8. CURRENT ASSETS :

Stock on Hire Purchase is valued at Agreement value less amount Received /Receivable.

9. PRUDENTIAL NORMS :

The company adheres to the prudential norms prescribed by the Reserve Bank of India (as amended till 31.12.97) for Non-Banking Finance Companies.

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Dec 31, 1996

A.ACCOUNTING CONVENTION:

The financial statements are prepared under the historical cost convention, in accordance with applicable mandatory accounting standards.

The company follows accrual system of accounting unless stated otherwise.

b.INCOME:

- Lease Rentals : Recognised as per the terms and conditions of the agreement.

- Hire Purchase : Recognised on declining balance method based on rates implicit in transactions.

- Bills discounting : Accounted on Cash basis.

- Dividens : Accounted on cash basis.

- Investments : Accounted on the basis of contracts entered into.

- Merchant Banking - Fund Base : Accounted on Accrual Basis. - Non-fund Base : Accounted on Cash basis.

- Management Fee : Recognised on execution of the agreements.

- Others : Accounted on accrual basis.

c. AMORTISATION OF EXPENSES:

- Equity/Preference Capital issue expenses : Over a period of 5 years

- Preliminary expenses : Over a period of 10 years.

- Debenture issue expenses : Over the tenor of the instrument. - Fixed Deposit Mobilisation expenses : Over a period of 3 years.

d. Contribution to Provident Fund Trust, Superannuation fund and Gratuity payments are accounted for, on cash basis.

e. Fixed Assets

Fixed assets are stated at cost less depreciation.

f. Depreciation

- Leased Assets are depreciated by a method derived from the guidance note on 'Accounting for leases' issued by the Institute of Chartered Accountants of India, under which cost of the asset is depreciated over the primary lease period. This method determines the principal recovery based on the interest rate implicit in the transacton. The principal recovery or the depreciation as per Schedule XIV (Straight line method) whichever is higher, is provided as depreciation.

- Other Assets are depreciated on straight line method in accordance with Schedule XIV to the Companies Act, 1956. Assets costing upto Rs. 5,000 are fully depreciated in the year of purchase.

g. Investments

Investments are stated at Cost. However provision for diminution is made to recognise a decline, other than temporary, in the value of investments.

h. Current Assets:

Stock on Hire Purchase is valued at Agreement value less amount Received/Receivable.

i. Prudential Norms

The company follows prudential norms relating to Capital adequacy, Asset Classification, provisioning and income recognition on non-performing assets prescribed by the Reserve Bank of India for Non-Banking Finance Companies.

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Jun 30, 1995

The financial statements are prepared under the historical cost convention, in accordance with applicable mandatory accounting standards and relevant presentational requirements of the Companies Act, 1956.

II. INCOME A. Hire purchase income

i) Income from hire purchase is recognised on declining balance method based on rates implicit in transactions.

ii) Hire purchase management fees are recognised as income on execution of related agreements.

B. Lease income

i) Lease rental income is accrued as per terms and conditions of agreements entered into with the lessees.

ii) Management fees relating to lease agreements are treated as income on execution of related agreements.

C. Bills discounting income

i) Income on bills discounted during the year is accounted for on accrual basis.

D. In respect of other heads of income, the Company follows the practice of accounting for such income on accrual basis.

E. Dividend income is accounted for on receipt basis.

III FIXED ASSETS

Fixed assets are stated at cost of acquisition less accumulated depreciation, Cost of acquisition is inclusive of freight, duties taxes and other incidental expenses.

IV. DEPRECIATION

A. Leased Fixed assets

Leased assets are depreciated by a method derived from the guidance note on `Accounting for Leases', issued by the Institute of Chartered Accountants of India under which 100% of the cost of the asset is depreciated over the primary lease period, As per this method, the interest rate implicit in the lease is calculated for each of the leases to arrive at the amount of principal recovery during the primary lease period. The principal recovery or the depreciation as per Schedule XIV straight line method, whichever is higher, is being provided as depreciation.

The depreciation in excess of the minimum depreciation prescribed in Schedule XIV to the Companies Act, 1956 under the straight line method is charged as special lease depreciation.

B. Owned fixed assets

i) Depreciation has been provided on the straight line method in accordance with schedule XIV to the Companies ACt, 1956.

ii) Assets costing upto Rs.5000 each are fully depreciated in the year of purchase.

V. Investments are valued at cost.

VI Stock in trade of shares, debentures, units and other securities are valued at lower of cost or market price. The cost is ascertained on the basis of annual weighted average purchase price.

VII INCOME-TAX

Income-tax is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income-tax Act, 1961.

VIII. RETIREMENT BENEFITS

The Company has various schemes of retirement benefits such as provident fund and superannuation fund recognised by the Income-tax authorities and the Company's contributions to these funds are charged against revenue for the year.

IX WRITE OFF OF MISCELLANEOUS EXPENDITURE

i) Preliminary expenses will be amortised over ten years starting from the first period ending on June 30, 1995.

ii) Expenses for Public Issues of Equity and Preference shares incurred by the Company during the current period will amortised over a period of five years and proportionate expenses have been written off during the current period.