Accounting Policies of GVP Infotech Ltd. Company

Mar 31, 2025

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(iii) The Company has only one class of Equity Shares having a par value of INR 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend, which is approved by Board of Directors.

Notes forming part of the Statement of Change in Equity

(iv) The description of the nature and purpose of each reserve within other equity is as follows:

(a) "Capital reseve: The Company has not transferred any amount to the Capital reserves for the year ended 31st March, 2025

(b) Capital redemption reserve:The Company has not transferred any amount to the Capital redemption reserves for the year ended 31st March, 2025

(c) Securities premium account: Securities premium account represents the premium received on issue of shares over and above the face value of equity shares. The account is available for utilisation in accordance with the provisions of the Companies Act, 2013.

(d) General Reserve: The Company has not transferred any amount to the reserves for the year ended 31st March, 2025

(e) Retained earnings: During the financial year Retained earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders.

14 Status of Implementation of Approved Resolution Plan passed by the Hon’ble NCLT

14.1 The resolution plan was duly implemented by the company and the company has also filed the closure report before the Hon''ble NCLT, New Delhi Bench, the clsoure report was taken on record by the Hon''ble NCLT, New Delhi bench on 18th November 2022

14.2 Arbitration notice served to RUDSICO, local self-government Department to invoke Arbitration as on 06.03.2023 for non-payment and termination of “Smart Rajasthan” contract for Rs. 35.28 Cr. Presently the matter is pending before Hon''ble High court of Jaipur for appointmenotf Arbitrator as per the terms of contract.

14.3 The Company filed application U/S 9 of Insolvency & Bankruptcy Code, 2016 against Linkwell Telesystems Pvt Itd for O/S amount of Rs 7.90 Crore which was rejected by Hon''ble NCLT, Hyderabad Bench. Appeal against the order of Hon''ble NCLT has been filed and the same is pending before Hon''ble NCLAT

14.4 The Company has initiated the arbitration proceeding for claim of ?. 395 Crores ( appx) against Minosha India Limited (Formerly Knowns as RICOH India Limited) for various project executed joinlty. Sole Arbitrator is appointed and the matter is pending before Hon''ble Arbitrator.

15 Contingent Liabilities Contingent Liabilities (not provided for) in respect of:
Sr. No.	Particulars	Current Year
1.	Estimated amount of contracts remaining to be executed on capital account (net of advances)	Nil
2.	Outstanding Bank Guarantees / LC	Nil
3.	Claims against the Company not acknowledged as debts	Nil

16 Fair Value ofAssets and Liabilities

In the opinion of the company and to the best of their knowledge and belief, the value of realization of current assets, loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet except as shown doubtful and provision for all known liabilities, expenses and income have been made in the accounts unless stated otherwise in the notes.

17 Disclosures relating to "Employee Benefits":

a. Defined contribution plans

The Company''s employee provident fund scheme is a defined contribution plans. A sum of Rs. 4,73,693/- (Previous Year Rs. 1,37,732/- ) has been recognized as an expense in relation to the scheme and shown under Employee Benefit Expenses in the Statement of Profit and Loss.

b. Defined Benefit plans:

The Company has no defined benefit plans to make provisions for employee benefits in accordance with the Ind AS 24 "Employee Benefits".

19 Segment Reporting:

The Company is mainly engaged in IT goods & IT Services and paymnet aggregation buisness. These, in context of Indian Accounting Standard on Segment Reporting, as specified in the Companies (Accounting Standard) Rules, 2014, are considered to constitute one single primary segment. Hence, segment reporting is not required.

20 The Company have office premises on Rent basis. Lease Rents charged to Statement of Profit & Loss ? 20,98,414 /- (Previous Year ? 17,71,000/-). Since the leave & license are cancellable in nature, other disclosures as required by Ind AS-116 are not applicable

21 The Company has written off certain old tender deposits given as Ernest Money Deposits against various contracts which were terminated due to Insolvency and also written off certain old receivables which are no more recoverable.

*Note: Arbitration proceedings in respect of certain receivables are pending on the balance sheet date. Therefore, though the claim of the company are not admitted by the other party, the same have been considered good and effect in the accounts would be given on receipt of Abritral award or as management decide.

28 Relationship with struck off Companies

During the Year The Company has not entered any transactions with companies which are struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

29 Compliance with number of layer of Companies

During the Year The Company has not made any investment in any company and therefore, conditions specified under clause (87) of Section 2 of The Companies Act, 2013 with the Companies (Restriction on number of layers) Rules, 2017 are not applicable in the year under consideration.

30 Proceedings against the Company under Prohibition of Benami Property Transactions Act, 1988

There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property T ransactions Act, 1988 and rules made thereunder31 Details of Benami Property held

The Company does not held any benami property as mentioned under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

32 Wilful Defaulter

The Company has not been declared wilful defaulter by any Bank or Financial institution or any other lender.

33 Undisclosed Income

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

34 "Registration of charges or satisfaction with Registrar of Companies

"The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

35 Details of Crypto Currency or Virtual Currency

The Company has neither traded nor invested in crypto currency or virtual currency during the financial year.

36 Previous year figures are regrouped or reclassified or rearranged as necessary.

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Mar 31, 2024

Data Not Available

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Mar 31, 2022

CORPORATE INFORMATION:

Fourth Dimension Solutions Limited (the Company) is a CMII level 5 information technology (IT) infrastructure, technical support services and operations outsourcing company. The company engaged in designing, developing, deploying, and delivering IT infrastructure and services. The Company provides range of information technology and consultancy services, including infrastructure services, end user IT support, IT asset life cycle and integrated solutions. Apart from this the Company also carry out the turnkey projects of Computers, digitization of documents, data entry services and operate data and information processing centers

A. SIGNIFICANT ACCOUNTINGPOLICIES

(a) Basis of Preparation:

These financial statements are prepared and presented in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (‘the Act’) (to the extent notified and applicable) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Indian Accounting Standards (Ind AS) are prescribed under section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, Companies (Indian Accounting Standards) Amendment Rules,2016.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(b) Use of Estimates:

The preparation of the financial statements, in conformity with Ind AS requires the Management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of date of the financial statements and the reported amount of revenues and expenses during the reported period. The actual results could differ from these estimates. Any revision to such accounting estimates will be recognized in the accounting period in which such revision takes place and if material, their effects are disclosed in the notes to the financial statements.

(c) Revenue Recognition

i) Sales: Sales comprise sale of services and goods.

Revenue from sale of services is recognized:

(a) As and when services are rendered and are net of service tax &GST

(b) Revenue from turnkey proj ects of Computers, digitization of documents, data entry services and operate data and information processing centres is recognized on accrual basis as per terms of agreements.

Revenue from sale of goods is recognized:

(a) When all the significant risks and rewards of ownership are transferred to the buyer

and the Company retains no effective control of the goods transferred to a degree usually associated with the ownership; and

(b) Nosignificantuncertaintyexistsregardingtheamountoftheconsiderationthatwillbede rivedfromthe sale of goods.

(c) Provisionismadeforthenon-sellablereturnsofgoodsfromthecustomersestimatedonthebasis ofhistoricaldataofsuchreturns.Suchprovisionfornon-sellablesalesreturnsisreducedfromsales for the year.

ii) Interest:

Interestincomeisrecognizedonatimeproportionbasistakingintoaccounttheamountoutsta

ndingand the rate applicable.

iii) Rent:

Rental income is recognized when the right to receive the payment is established.

(d) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

The Company depreciates property, plant and equipment over their estimated useful lives using the Written down Value method. The estimated useful lives of assets are as follows:

Property, plant and equipment	Estimated Useful Lives
Plant and machinery	15 years
Office Equipment	5 years
Computer Equipment	3 years
Furniture and fixtures	10 years
Vehicles	8 years

Subsequent expenditures relating to property, plant and equipment are capitalized only when it probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in net profit in the statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the statement of profit and loss

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

(e) Depreciation and amortization

Depreciation on tangible fixed assets has been provided on Written down value method at the rates prescribed under Part C of Schedule Il of the Companies Act, 2013. Intangible fixed assets stated at cost less accumulated amount of amortization.

(f) Investments

Long term investments are stated at cost. Provision is made to recognize a decline, other than temporary, in the value of long term investments.

(g) Inventories

Inventories of Traded Goods are valued at lower of cost and net realisable value. Cost is determined on First in First Out (FIFO) basis. Cost of work-in-progress and finished goods include labour and manufacturing overheads, where applicable. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(h) Segment Reporting

The Company is mainly engaged in IT goods and IT Services. These, in context of Indian Accounting Standard on Segment Reporting, as specified in the Companies (Accounting Standard) Rules, 2014, are considered to constitute one single primary segment. Hence, segment reporting is not required.

(i) Foreign Currency Transactions

(i) Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the currency and the foreign currency at the date of the transaction.

(ii) Conversion

At the year-end, monetary items denominated in foreign currencies are converted into rupee equivalents at the exchange rates prevailing on the date of transactions.

(iii) Exchange Differences

All exchange differences arising on settlement / conversion of foreign currency transactions are included in the Statement of Profit & Loss.

(j) Employee Benefits

(i) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the Statement of Profit & Loss in the period in which the employee renders the related services.

(ii) Long-term Employee Benefits

(a) Defined Contribution plan

The Company deposits the contributions for provident fund to the appropriate government authorities and these contributions are recognized in the Statement of Profit and Loss in the financial year to which they relate.

(b) Defined benefit plan

The Company''s gratuity scheme is a defined benefit plan. The present value of the obligation under such defined plan is determined based on actuarial valuation carried by an independent actuary, using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final Obligation. The obligation in measured at the present value of the estimated future cash flow. The discount rates used for determining the present value of the obligation under defined benefit plans, is based

on the market yields on Government securities as at the balance sheet date. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss.

(iii) Other long-term employee benefits

Entitlements to annual leave are recognized when they accrue to employees. Leave entitlements can be availed while in service or encashed at the time of retirement/termination of employment, subject to a restriction on the maximum number of accumulation. The Company determines the liability for such accumulated leave entitlements on the basis of actuarial valuation carried out by an independent actuary at the year end.

(k) Taxes on Income

Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income.

Tax expense (tax saving) is the aggregate of current tax and deferred tax:

(i) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

(ii) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current income tax provision.

(l) Earnings Per Share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

(m) Impairment of Assets

Impairment loss (if any) is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s Fair Value less costs to disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

(n) Provision and Contingent Liabilities

Provision is recognized (for liabilities that can be measured by using a substantial degree of estimation) when:

(i) the Company has a present obligation as a result of a past event;

(ii) a probable outflow of resources embodying economic benefits is expected to settle the obligation; and

(iii) the amount of the obligation can be reliably estimated.

Contingent liability is disclosed in case there is:

(i) Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or one or more uncertain future events not wholly within the control of the enterprise; or

(ii) a present obligation arising from past events but is not recognized

(a) when it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(b) a reliable estimate of the amount of the obligation cannot be made.

(o) Cash and cash Equivalents

Cash comprises cash in hand, Bank Balances and Cheques in Hand. Cash Equivalents are shortterm highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

(p) Cash Flow Statements

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

(q) Leases

Lease in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight line basis over the lease term.

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Mar 31, 2018

A. Significant Accounting Policies

(a) Basis of Preparation:

These financial statements are prepared and presented in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (‘the Act’) (to the extent notified and applicable) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Indian Accounting Standards (Ind AS) are prescribed under section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, Companies (Indian Accounting Standards) Amendment Rules, 2016.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(b) Use of Estimates:

The preparation of the financial statements, in conformity with Ind AS requires the Management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of date of the financial statements and the reported amount of revenues and expenses during the reported period. The actual results could differ from these estimates. Any revision to such accounting estimates will be recognised in the accounting period in which such revision takes place and if material, their effects are disclosed in the notes to the financial statements.

(c) Revenue Recognition

i) Sales: Sales comprise sale of services and goods.

Revenue from sale of services is recognized:

(a) As and when services are rendered and are net of service tax & GST

(b) Revenue from turnkey projects of Computers, digitization of documents, data entry services and operate data and information processing centers is recognized on accrual basis as per terms of agreements.

Revenue from sale of goods is recognized:

(a) When all the significant risks and rewards of ownership are transferred to the buyer and the Company retains no effective control of the goods transferred to a degree usually associated with the ownership; and

(b) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

(c) Provision is made for the non-sellable returns of goods from the customers estimated on the basis of historical data of such returns. Such provision for non sellable sales returns is reduced from sales for the year.

ii) Interest:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

iii) Rent :

Rental income is recognized when the right to receive the payment is established

(d) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

The Company depreciates property, plant and equipment over their estimated useful lives using the Written down Value method. The estimated useful lives of assets are as follows:

Subsequent expenditures relating to property, plant and equipment are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in net profit in the Statement of Profit and Loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss.

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

(e) Depreciation and amortization

Depreciation on tangible fixed assets has been provided on Written down value method at the rates prescribed under Part C of Schedule II of the Companies Act, 2013. Intangible fixed assets stated at cost less accumulated amount of amortization.

(f) Investments

Long term investments are stated at cost. Provision is made to recognize a decline, other than temporary, in the value of long term investments.

(g) Inventories

Inventories of Traded Goods are valued at lower of cost and net realisable value. Cost is determined on First in First Out (FIFO) basis. Cost of work-in-progress and finished goods include labour and manufacturing overheads, where applicable. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(h) Segment Reporting

The Company is mainly engaged in IT goods and IT Services. These, in context of Indian Accounting Standard on Segment Reporting, as specified in the Companies (Accounting Standard) Rules, 2014, are considered to constitute one single primary segment. Hence, segment reporting is not required.

(i) Foreign Currency Transactions

(i) Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the currency and the foreign currency at the date of the transaction.

(ii) Conversion

At the year-end, monetary items denominated in foreign currencies are converted into rupee equivalents at the exchange rates prevailing on the date of transactions.

(iii) Exchange Differences

All exchange differences arising on settlement / conversion of foreign currency transactions are included in the Statement of Profit & Loss.

(j) Employee Benefits

(i) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the Statement of Profit & Loss in the period in which the employee renders the related services.

(ii) Long-term Employee Benefits

(a) Defined contribution plan

The Company deposits the contributions for provident fund to the appropriate government authorities and these contributions are recognized in the Statement of Profit and Loss in the financial year to which they relate.

(b) Defined benefit plan

The Company’s gratuity scheme is a defined benefit plan. The present value of the obligation under such defined plan is determined based on actuarial valuation carried by an independent actuary, using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final Obligation. The obligation is measured at the present value of the estimated future cash flow. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss.

(iii) Other long-term employee benefits

Entitlements to annual leave are recognized when they accrue to employees. Leave entitlements can be availed while in service or en-cashed at the time of retirement/termination of employment, subject to a restriction on the maximum number of accumulation. The Company determines the liability for such accumulated leave entitlements on the basis of actuarial valuation carried out by an independent actuary at the year end.

(k) Taxes on Income

Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income.

Tax expense (tax saving) is the aggregate of current tax and deferred tax

(i) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

(ii) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current income tax provision.

(l) Earning Per Share

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

(m) Impairment of Assets

Impairment loss (if any) is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset’s Fair Value less costs to disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

(n) Provision and Contingent Liabilities

Provision is recognized (for liabilities that can be measured by using a substantial degree of estimation) when:

(i) the company has a present obligation as a result of a past event;

(ii) a probable outflow of resources embodying economic benefits is expected to settle the obligation; and

(iii) the amount of the obligation can be reliably estimated Contingent liability is disclosed in case there is:

(i) Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or one or more uncertain future events not wholly within the control of the enterprise; or

(ii) a present obligation arising from past events but is not recognized

(a) when it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(b) a reliable estimate of the amount of the obligation cannot be made.

(o) Cash and cash Equivalents

Cash comprises cash in hand, Bank Balances and Cheques in Hand. Cash Equivalents are short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

(p) Cash Flow Statements

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

(q) Leases

Lease in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight line basis over the lease term.

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Mar 31, 2016

CORPORATE INFORMATION:

Fourth Dimension Solutions Limited is CMII level 5 information technology (IT) infrastructure, technical support services and operations outsourcing company. The Company is engaged in designing, developing, deploying, and delivering IT infrastructure and services. The Company provides range of information technology and consultancy services, including infrastructure services, end user IT support, IT asset life cycle and integrated solutions. Apart from this the Company also carry out the turnkey projects of Computers , digitization of documents, data entry services and operate data and information processing censers. The Company has also started merchant trading of IT and electronic products like tablets, LED TV, mobile phone etc.

A. Significant Accounting Policies (a) Basis of Preparation:

These financial statements are prepared and presented in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified and applicable). Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(b) Use of Estimates:

The preparation of the financial statements, in conformity with the generally accepted accounting principal, require estimates and assumptions to be made that affect the reported amounts of assets and liabilities as of date of the financial statements and the reported amount of revenues and expenses during the reported period. The actual results could differ from these estimates. Any revision to such accounting estimates will be recognised in the accounting period in which such revision takes place.

(c) Revenue Recognition

i) Sales: Sales comprise sale of services and goods.

Revenue from sale of services is recognized:

(a) As and when services are rendered and are net of service tax,

(b) Revenue from turnkey projects of Computers, digitization of documents, data entry services and operate data and information processing censers is recognized on accrual basis as per terms of agreements.

Revenue from sale of goods is recognized:

(a) When all the significant risks and rewards of ownership are transferred to the buyer and the Company retains no effective control of the goods transferred to a degree usually associated with the ownership; and

(b) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

(c) Provision is made for the non-sellable returns of goods from the customers estimated on the basis of historical data of such returns. Such provision for non sellable sales returns is reduced from sales for the year.

ii) Interest:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

iii) Investments :

Profit on sale of investment is recorded on transfer of title from the Company and is determined as the difference between the sale price and carrying value of the investment.

iv) Rent :

Rental income is recognized when the right to receive the payment is established

(d) Fixed Assets

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

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

Capital work-in-progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.

(e) Depreciation and amortization

Depreciation on tangible fixed assets has been provided on Written down value method at the rates prescribed under Part C of Schedule II of the Companies Act, 2013 Intangible fixed assets stated at cost less accumulated amount of amortization.

(f) Investments

Long term investments are stated at cost. Provision is made to recognize a decline, other than temporary, in the value of long term investments.

(g) Inventories

Inventories of fixed assets are valued at lower of cost and net realisable value. Cost is determined on moving weighted average basis. Cost of work-in-progress and finished goods include labour and manufacturing overheads, where applicable. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Quoted Equity Shares are stated at cost.

(h) Segment Reporting

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company. Further, inter-segment revenue have been accounted for based on the transaction price agreed to between segments which is primarily market based. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities for the segment.

(i) Foreign Currency Transactions

(i) Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the currency and the foreign currency at the date of the transaction.

(ii) Conversion

At the year-end, monetary items denominated in foreign currencies are converted into rupee equivalents at the exchange rates prevailing on the date of transactions.

(iii) Exchange Differences

All exchange differences arising on settlement / conversion of foreign currency transactions are included in the Statement of Profit & Loss.

(j) Employee Benefits

(i) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the Statement of Profit & Loss in the period in which the employee renders the related services.

(ii) Long-term Employee Benefits

(a) Defined contribution plan

The Company deposits the contributions for provident fund to the appropriate Government authorities and these contributions are recognized in the Statement of Profit and Loss in the financial year to which they relate.

(b) Defined benefit plan

The Company’s gratuity scheme is a defined benefit plan. The present value of The obligation under such defined plan is determined based on actuarial valuation carried by an independent actuary, using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final Obligation. The obligation in measured at the present value of the estimated future cash flow. The discount rates used for determining the Present value of the obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss.

(iii) Other long-term employee benefits

Entitlements to annual leave are recognized when they accrue to employees. Leave entitlements can be availed while in service or en-cashed at the time of retirement/termination of employment, subject to a restriction on the maximum number of accumulation. The Company determines the liability for such accumulated leave entitlements on the basis of actuarial valuation carried out by an independent actuary at the year end.

(k) Taxes on Income

Tax expense (tax saving) is the aggregate of current tax and deferred tax

(i) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

(ii) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current Income tax provision.

(l) Earnings Per Share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

(m) Impairment of Assets

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from is disposal at the end of its useful life.

(n) Provision and Contingent Liabilities

Provision is recognized (for liabilities that can be measured by using a substantial degree of estimation) when:

(i) the company has a present obligation as a result of a past event;

(ii) a probable outflow of resources embodying economic benefits is expected to settle the obligation; and

(iii) the amount of the obligation can be reliably estimated Contingent liability is disclosed in case there is:

(i) Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or one or more uncertain future events not wholly within the control of the enterprise; or

(ii) a present obligation arising past events but is not recognized

(a) when it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(b) a reliable estimate of the amount of the obligation cannot be made.

(o) Cash and cash Equivalents

Cash comprises cash in hand and demand deposits with banks. Cash Equivalents are short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

(p) Cash Flow Statements

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

(q) Leases

Lease in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss over the period of the lease.

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Mar 31, 2015

FOR THE YEAR ENDED ON 31ST MARCH, 2015

24. Corporate Information:

The Company is engaged in the Business of trading & Services of IT Products. Apart from this the Company also carry out the turnkey projects of Computers , digitization of documents, data entry services and operate data and information processing centers

25. Basis of Preparation:

These financial statements are prepared and presented in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules,2014, the provisions of the Act (to the extent notified and applicable).

25(b). Summary of Significant Accounting Policies

i) USE OF ESTIMATES:

The preparation of the financial statements, in conformity with the generally accepted accounting principal, require estimates and assumptions to be made that affect the reported amount of assets and liabilities as of date of the financial statements and the reported amount of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which results materialize.

ii) REVENUE RECOGNITION:

i) Sales: Sales comprise sale of services and goods.

Revenue from sale of services (from turnkey projects of Computers, digitization of documents, data entry services and operate data and information processing centers) is recognized on accrual basis as per terms of agreements.

Revenue from sale of goods is recognized:

i) When all the significant risks and rewards of ownership are transferred to the buyer and the Company retains no effective control of the goods transferred to a degree usually associated with the ownership; and

ii) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

ii) Interest:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

iii) Rent:

Rental income is recognized when the right to receive the payment is established.

iii) TANGIBLE FIXED ASSETS:

Fixed Assets are stated in the Balance Sheet at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

iv) INTANGIBLE FIXED ASSETS:

Intangible assets are stated at cost less accumulated amount of amortization.

v) DEPRECIATION:

a) Depreciation on tangible fixed assets has been provided on straight-line method at the rates prescribed under Part C of Schedule II of the Companies Act, 2013

b) Intangible fixed assets are amortized on straight-line method over their estimated useful life.

vi) CHANGE IN ACCOUNTING POLICY:

The company has changed the accounting policy of providing depreciation from written down value (W.D.V.) method to straight-line method at the rates prescribed under Part C of Schedule II of the Companies Act, 2013. There is no material effect due to change in accounting policy.

vii) INVESTMENTS:

Long term investments are stated at cost. Provision is made to recognize a decline, other than temporary, in the value of long term investments. The company has made investment in Thumbspeed Tech Solutions Pvt. Ltd during the year.

viii) INVENTORIES: Inventories are valued on the following basis:

Finished Goods: at lower of cost or net realizable value, whichever is lower.

Quoted Equity Shares: at cost

ix) SEGMENT INFORMATION:

Segment information is prepared in conformity with the accounting policies adopted for preparing and presenting the financial statements of the enterprise as a whole.

x) FOREIGN CURRENCY TRANSLATION:

a) Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the currency and the foreign currency at the date of the transaction.

b) Conversion

At the year-end, monetary items denominated in foreign currencies are converted into rupee equivalents at the year-end exchange rates.

c) Exchange Differences

All exchange differences arising on settlement / conversion of foreign currency transactions are included in the Statement of Profit & Loss.

xi) RETIREMENT BENEFITS:

a) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus, etc., are recognized in the Statement of Profit & Loss in the period in which the employee renders the related services.

b) Post employment benefit

Defined contribution plan

The Company deposits the contributions for provident fund to the appropriate government authorities and these contributions are recognized in the Statement of Profit and Loss in the financial year to which they relate.

Defined benefit plan

The Company''s gratuity scheme is a defined benefit plan. The present value of the obligation under such defined plan is determined based on actuarial valuation carried out by an independent actuary, using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation in measured at the present value of the estimated future cash flow. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss.

c) Other long-term employee benefits

Entitlements to annual leave are recognized when they accrue to employees. Leave entitlements can be availed while in service or en-cashed at the time of retirement/termination of employment, subject to a restriction on the maximum number of accumulation. The Company determines the liability for such accumulated leave entitlements on the basis of actuarial valuation carried out by an independent actuary at the year end.

xii) TAXATION:

Tax expense (tax saving) is the aggregate of current tax and deferred

i) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

ii) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current income tax provision

xiii) EARNING PER SHARE:

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

xiv) IMPAIRMENT OF ASSETS:

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from is disposal at the end of its useful life.

xv) PROVISION AND CONTINGENT LIABILITIES:

i) Provision is recognized ( for liabilities that can be measured by using a substantial degree of estimation ) when:

a) the company has a present obligation as a result of a past event;

b) a probable outflow of resources embodying economic benefits is expected to settle the obligation; and

c) the amount of the obligation can be reliably estimated

ii) Contingent liability is disclosed in case there is:

a) Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise; or

b) A present obligation arising past events but is not recognized

1. When it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation; or

2. A reliable estimate of the amount of the obligation cannot be made.