Accounting Policies of Info-Drive Software Ltd. Company

Mar 31, 2015

A. Basis of Preparation:

The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and according to the provisions of the Companies Act, 1956.

b. Revenue Recognition:

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts. Revenues from contracts priced on time and material basis are recognised when services are rendered and related costs are incurred.

Software services: Where the outcome of a turnkey contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the Balance Sheet date, as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.

c. Fixed Assets:

Fixed assets are stated at historical cost of acquisition and improvements thereon less accumulated depreciation.

The company had paid an amount of Rs.269.82 lacs to Kashi Infotech Private Limited to acquire/take over the assets and the same has been shown under fixed assets. This is due to the fact that during the offer document for Rights Issue in July 2007 Kashi Infotech delivering healthcare business was proposed to be acquired. Kashi Infotech is stabilizing their business in health care with firm orders and the same would be firmed up in the next financial year.

d. Depreciation:

The company has revised its estimates of providing depreciation on fixed assets effective 1st April 2014. The carrying amount as on 1st April 2014 is depreciated over the revised remaining useful life. The effect relating to the period prior to 1st April 2014 is Rs.14.17 lacs, which has been shown as ''exceptional item'' for the financial year 2014-15 in the statement of profit and loss. Depreciation on fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in Part C of Schedule II of the Companies Act, 2013 and on pro- rata basis of the assets acquired during the year.

Class of asset Previous useful life Revised useful life (Years) (Years)

Plant & Equipment: 6 4

- Computers & servers 6 10

- Others

Furniture & Fittings 15 5

Office equipments 21 5

e. Investments:

Investments are classified as current or long term in accordance with Accounting Standard 13 on ''Accounting for Investments''.

* Long term investments are stated at cost to the company. The company provides for diminution in the value of long term investments other than those temporary in nature.

The value of investments in Info-Drive Software Inc. USA though diminished as on the date of balance sheet, management is confident of augmenting resources against firm orders to mitigate any further erosion and hence carried at cost.

* Current investments

Info-Drive Software LLC-JV advance - Rs 6,145.95 Lacs In case of foreign investments

- the cost is the rupee value of the foreign currency on date of balance sheet.

- the face value of the foreign investments is shown at the face value reflected in the foreign currency of that country.

f. Employee benefits:

Short term employee benefits are measured at cost. Long term employee benefits and post employment benefits such as gratuity are reviewed and provided at each balance sheet date.

g. Taxation :

Income Tax: Provision for Income Tax is made as per the applicable rules under the Income-tax Act, 1961. Income tax expense represents the sum of the tax currently payable. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or exempt in earlier years and it further excludes items that are never taxable or exempt. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax: Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profit and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred Tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystalise with reasonable certainty. However in case of deferred tax assets (representing minimum alternate tax) are recognised, if and only if there is virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred tax is recognised on adjustments to revenue reserves to the extent the adjustments are allowable as deductions in determination of taxable income and they would reverse out in future periods.

h. Secured Loans:

(i) Secured loan Working Capital (Cash Credit facility) from Axis Bank Ltd against bills receivable and book debts was closed under one time settlement (OTS). The surplus arises on account of such settlement has been appropriately dealt in the books of accounts.

(ii) Secured Loan includes outstanding dues to Indian Overseas Bank against undertakings.

i) Inventories and WIP (Projects): Rs. 85.92 Lacs (Rs.85.15 Lacs)

j) Preliminary and Issue Expenses: Expenses incurred in connection with issue of FCCB of Rs 70.25 Lacs have been amortised over a period of 5 years. Accordingly during the year an amount of Rs.14.05 lacs was written off (Previous year - Nil)

k) Segment reporting:

The company operates only in one segment viz. Information Technology.

l) Related Party Disclosures:

List of related parties where control exists and other related parties with whom the company had transactions and their relationship is as below.

Sl.No. Name of the related party Nature of relationship

1. Info-Drive Software Inc. USA

2. Info-Drive Software LLC, Dubai

3. Infodrive Enterprises Pte Ltd., Singapore

4. Info-Drive Systems Sdn Bhd, Subsidiary Companies Malaysia

5. Info-Drive Software Limited, Canada

6. Infodrive Mauritius Limited, Mauritius

Sl.No. Name of the related party Nature of relationship

Fellow Subsidiary Company

7. Technoprism LLC, USA (Subsidiary of Info-Drive Software Inc, USA)

8. Info Drive Technologies Associate Company Co., Ltd, Thailand (Associate company of Infodrive Enterprises Pte Ltd., Singapore)

9. ANL Madhavann Key Management personnel 10. Ajay K Mehtha

11. A.S.Giridhar

m) Foreign Currency Translation Reserve:

Exchange differences on account of fluctuations in foreign currency rates are treated as under:

i) Exchange difference gain/ (loss) recognised in the Statement of Profit and Loss relating to exports/services during the year.

ii) Exchange difference gain/ (loss) recognised in the Balance Sheet relating to investments as Foreign Currency Translation Reserve.

iii) As per the Accounting Standard (Integral foreign operations) issued by the Institute of Chartered Accountants of India the impact of exchange difference gain or loss has not been considered in respect of branch operations in Singapore.

n) Contingent Liabilities:

1. SBLC (stand by letter of credit) renewed in favour of Indian Overseas Bank, Singapore has been pre-maturely invoked. However corporate guarantee (CG) issued would be nullified after settlement of all dues by the subsidiary company in Singapore.

2. The appeal filed by the company with the Commissioner of Income-tax, Appeals III in respect of the disallowance of claim under section 35D (issue expenses) of Rs.4,50,296/- for the assessment year 2004-2005 has not been disposed off as yet; However, there is no demand of tax.

3. The company has preferred an appeal before the Income Tax Appellate Tribunal (ITAT) for the demands raised on account of TDS on

international transactions by CIT (A) for AY 2010-11 Rs.33,44,226 and for AY 2011-12 of Rs.1,65,15,087 respectively. No provision

has been made for this contingency on demands as the company is confident of winning the appeal.

4. The company has filed appeal with the Commissioner of Income-tax, Appeals (II) in respect of the assessment year 2010-11 for Rs. 3,18,73,620/- which arose on account of denial of deduction u/s.10B and u/s 115JB for section 80HHC of the Income Tax Act 1961 . In view of confident of winning the appeal no provision has been made in the books of account.

5. The company has filed appeal with the Commissioner of Income-tax, Appeals (II) in respect of the assessment year 2009-10 for Rs. 3,18,78,250/- which arose on account of denial of deduction u/s.10B and u/s 115JB for section 80HHC of the Income Tax Act 1961 . In view of confident of winning the appeal no provision has been made in the books of account.

o) Due to SSI''s:

As at 31st March 2015 the company has no outstanding dues to Micro Enterprises, Small Enterprises and Small Scale Industrial Undertakings.

a. Foreign Currency Transactions:

Monetary current assets and current liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the exchange rates prevailing at the date of balance sheet.

Rs. lacs

2015 2014

Earnings in Foreign Currency Nil 34.06

Expenditure in Foreign Currency Nil 2.62

Investment in Foreign Currency Nil Nil

b. Unclaimed Dividend

For the earlier three financial years the total unclaimed dividends amounted to Rs.7,61,713/-comprising of Rs.277,734/- (2007-2008), Rs 236,194/- (2008-2009) and Rs.2,47,785/- (2009-2010) respectively.

c. Confirmations from Trade Receivables , Payables, Loans and Advances

Confirmation of balances from Trade Receivables, Payables and loans and advances are yet to be received in some cases though the company has sent letters for confirmation by them. The balances adopted are as appearing in the books of accounts of the Company.

d. Advance received for services:

The company had received an advance of Rs.4,00,12,568/- to provide services to a company called M/s. Persian Dam Keshte Aria located in Tehran, Iran. However, while remitting the advance by the remitter the swift message for the advance was wrongly mentioned as ''Feed Corn Purchase''. RBI approval was accorded in the month of June 2014 for refund of advance remittance received from the above said company in Iran and the company is taking steps to remit the amount as early as possible.

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Mar 31, 2014

A. Basis of Preparation:

The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and according to the provisions of the Companies Act, 1956.

b. Evenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts. Revenues from contracts priced on time and material basis are recognised when services are rendered and related costs are incurred.

Software services: Where the outcome of a turnkey contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the Balance Sheet date, as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.

c. Fixed Assets

Fixed assets are stated at historical cost of acquisition and improvements thereon less accumulated depreciation.

The company had paid an amount of Rs.269.82 lacs to Kashi Infotech Private Limited to acquire/take over the assets and the same has been shown under fixed assets. This is due to the fact that during the offer document for Rights Issue in July 2007 Kashi Infotech delivering healthcare business was proposed to be acquired. Kashi Infotech is stabilizing their business in health care with firm orders and the same would be firmed up in the next financial year.

d. Depreciation

Depreciation on fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956 and on pro-rata basis of the assets acquired during the year.

e. Investments

Investments are classified as current or long term in accordance with Accounting Standard 13 on ''Accounting for Investments''.

* Long term investments are stated at cost to the company. The company provides for diminution in the value of long term investments other than those temporary in nature.

The value of investments in Info-Drive Software Inc. USA though diminished as on the date of balance sheet, management is confident of augmenting resources against firm orders to mitigate any further erosion and hence carried at cost.

* Current investments

Info-Drive Software Inc. USA, : Rs.Nil (Rs.1,01,42,693/- )

In case of foreign investments

- the cost is the rupee value of the foreign currency on date of balance sheet.

- the face value of the foreign investments is shown at the face value reflected in the foreign currency of that country.

f. Employee benefits

Short term employee benefits are measured at cost. Long term employee benefits and post employment benefits such as gratuity are reviewed and provided at each balance sheet date.

g. Taxation

Income Tax: Provision for Income Tax is made as per the applicable rules under the Income-tax Act, 1961. Income tax expense represents the sum of the tax currently payable. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or exempt in earlier years and it further excludes items that are never taxable or exempt. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax: Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profit and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred Tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystalise with reasonable certainty. However in case of deferred tax assets (representing minimum alternate tax) are recognised, if and only if there is virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred tax is recognised on adjustments to revenue reserves to the extent the adjustments are allowable as deductions in determination of taxable income and they would reverse out in future periods.

h. Secured Loans

(i) Secured loan includes Working Capital (Cash Credit facility) from Axis Bank Ltd against bills receivable and book debts. Axis Bank has preferred legal action on recovery of overdue of Rs. 403.78 lacs (upto 30th Sept 2013) through DRT (Debt Recovery Tribunal) with interest till date of settlement. The company has disputed the claim and also insertion of mark-to-market (MTM) by Axis Bank Ltd and is awaiting decision by DRT and hence no interest provisions have been made from 1st October to the date of Balance Sheet.

(ii) Secured Loan includes outstanding dues to Indian Overseas Bank against undertakings.

i. Inventories and WIP (Projects): Rs. 85.15 Lacs (Previous year Nil)

j. Preliminary and Issue Expenses: Nil

k. Segment reporting:

The company operates only in one segment viz. Information Technology.

l. Related Party Disclosures:

List of related parties where control exists and other related parties with whom the company had transactions and their relationship.

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Mar 31, 2013

A. Basis of Preparation:

The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and according to the provisions of the Companies Act, 1956.

b. Revenue Recognition:

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts. Revenues from contracts priced on time and material basis are recognised when services are rendered and related costs are incurred.

Software services: Where the outcome of a turnkey contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the Balance Sheet date, as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.

c. Fixed Assets:

Fixed assets are stated at historical cost of acquisition and improvements thereon less accumulated depreciation.

The company had paid an amount of Rs.269.82 lacs to Kashi Infotech Private Limited to acquire/take over the assets and the same has been shown under fixed assets. This is due to the fact that during the offer document for Rights Issue in July 2007 Kashi Infotech delivering healthcare business was proposed to be acquired. Kashi Infotech is stabilizing their business in health care with firm orders and the same would be firmed up in the next financial year.

d. Depreciation:

Depreciation on fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956 and on pro-rata basis of the assets acquired during the year.

e. Investments:

Investments are classified as current or long term in accordance with Accounting Standard 13 on Accounting for Investments''.

- Long term investments are stated at cost to the company. The company provides for diminution in the value of long term investments other than those temporary in nature.

The value of investments in Info-Drive Software Inc. USA though diminished as on the date of balance sheet, management is confident of augmenting resources against firm orders to mitigate any further erosion and hence carried at cost.

- Current investments

Info-Drive Software Inc. USA, : Rs.1,01,42,693/- (Previous year Rs.Nil) In case of foreign investments

- the cost is the rupee value of the foreign currency on date of balance sheet.

- the face value of the foreign investments is shown at the face value refected in the foreign currency of that country.

f. Employee benefts:

Short term employee benefits are measured at cost. Long term employee benefits and post employment benefits such as gratuity are reviewed and provided at each balance sheet date.

g. Taxation :

Income Tax: Provision for Income Tax is made as per the applicable rules under the Income-tax Act, 1961. Income tax expense represents the sum of the tax currently payable. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or exempt in earlier years and it further excludes items that are never taxable or exempt. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax: Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profit and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred Tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystalise with reasonable certainty. However in case of deferred tax assets (representing minimum alternate tax) are recognised, if and only if there is virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred tax is recognised on adjustments to revenue reserves to the extent the adjustments are allowable as deductions in determination of taxable income and they would reverse out in future periods.

h) Secured Loans:

a. Secured loan from Kotak Mahindra Prime Limited is secured by hypothecation of Volkswagen car.

b. Secured loans include Working Capital (Cash Credit facility) from Axis Bank Ltd against bills receivable.

c. Secured loans include Overdraft from Indian Overseas Bank against fixed deposits. i) Inventories and wIP: Nil

j) Preliminary and Issue Expenses: Nil k) Segment reporting:

The company operates only in one segment viz. Information Technology.

l) Related Party Disclosures:

List of related parties where control exists and other related parties with whom the company had transactions and their relationship is as below.

m) Foreign Currency Translation Reserve:

Exchange differences on account of fuctuations in foreign currency rates are treated as under:

i) Exchange difference gain/ (loss) recognised in the Statement of Profit and Loss relating to exports/services during the year.

ii) Exchange difference gain/ (loss) recognised in the Balance Sheet relating to investments as Foreign Currency Translation Reserve.

iii) As per Accounting Standard 11 (Integral foreign operations) issued by the Institute of Chartered Accountants of India the impact of exchange difference gain or loss has not been considered in respect of branch operations in Singapore.

p) Contingent Liabilities:

1. Stand By Letter of Credit (SBLC)/Bank Guarantee (BG) is issued by Axis Bank favouring EFG Bank AG, Singapore, in favour of the beneficiary being Info-Drive Software Pte. Ltd., (Presently name changed to Infodrive Enterprise Pte Limited with effect from April 2013) wholly owned subsidiary in Singapore amounting to Rs.1570 lakhs (USD 3 Mio) against fully secured cash margin deposits with Axis Bank Rs.1570 lakhs for a period of one year ending 22.02.2013. On 22 March 2013, the EFG Bank AG, has prematurely invoked the SBLC despite renewal done by Axis Bank up to February 2014 resulting in reduction of fixed deposits with the banks.

2. Stand By Letter of Credit (SBLC)/Corporate Guarantee (CG) is issued favouring Indian Overseas Bank, Singapore, in favour of the beneficiary being Info-Drive Software Pte. Ltd., (presently name changed to Infodrive Enterprises Pte Limited with effect from April 2013) wholly owned subsidiary in Singapore amounting up to Rs. 2,709 lakhs (SGD 5.925 Mio) against secured cash margin deposits with Indian Overseas Bank up to Rs.725 lakhs (SGD 1.8 Mio) for a period of one year ending 10.11.2013 and 28.11.2013 respectively.

3. The appeal filed by the company with the Commissioner of Income-tax, Appeals III in respect of the disallowance of claim under section 35D (issue expenses) of Rs.4,50,296/- for the assessment year 2004-2005 has not been disposed off as yet; However, there is no demand of tax.

4. The company has filed appeal with the Commissioner of Income-tax, Appeals IV in respect of the demand on account of TDS on international transactions raised by the department for the assessment year 2010 -11 of Rs. 33,44,226/- and for the assessment year 2011-12 of Rs.1,65,15,087/- respectively. No provision has been made for this contingency due to the Hon''ble High Court of Madras granting an interim injection in favour of the company restraining the department with further proceedings on the demands and the company is confident of winning the appeals.

5. The company has filed appeal with the Commissioner of Income-tax, Appeals (II) in respect of the assessment year 2010-11 for Rs. 3,01,84,966/- which arose on account of denial of deduction u/s.10B and u/s 115JB for section 80HHC of the Income Tax Act 1961 . No provision has been made in the books of accounts.

q. Due to SSI''s:

As at 31st March 2013 the company has no outstanding dues to Micro Enterprises, Small Enterprises and Small Scale Industrial Undertakings.

s. unclaimed Dividend

For the past three financial years the total unclaimed dividends amounted to Rs.7,61,713/-comprising of Rs.277,734/- (2007-2008), Rs 236,194/- (2008-2009) and Rs.2,47,785/- (2009-2010) respectively.

t. Confrmations from Trade Receivables , Payables, Loans and Advances

Confirmation of balances from Trade Receivables, Payables and loans and advances are yet to be received in some cases though the company has sent letters for confirmation by them. The balances adopted are as appearing in the books of accounts of the Company.

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Mar 31, 2012

A. Basis of Preparation

The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and according to the provisions of the Companies Act, 1956.

b. Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts. Revenues from contracts priced on time and material basis are recognised when services are rendered and related costs are incurred.

Software Services: Where the outcome of a turnkey contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the Balance Sheet date, as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.

c. Fixed Assets

Fixed assets are stated at historical cost of acquisition and improvements thereon less accumulated depreciation.

d. Depreciation

Depreciation on fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956 and on pro-rata basis of the assets acquired during the year.

e. Investments

Investments are classified as current or long term in accordance with Accounting Standard 13 on 'Accounting for Investments'.

- Long term investments are stated at cost to the company. The company provides for diminution in the value of long term investments other than those temporary in nature.

The value of investments in Info-Drive Software Inc. USA though diminished as on the date of balance sheet, management is confident of augmenting resources against firm orders to mitigate any further erosion and hence carried at cost.

- Current Investments:

Infodrive Mauritius Limited, Mauritius: Nil (Previous year Rs. 44,40,000/-)

Info-Drive Software Pte Limited, Singapore: Rs. 2,59,25,239/- (Previous year Rs. Nil)

In case of foreign investments:

- the cost is the rupee value of the foreign currency on date of balance sheet.

- the face value of the foreign investments is shown at the face value reflected in the foreign currency of that country.

f. Employee Benefits

Short term employee benefits are measured at cost. Long term employee benefits and post employment benefits such as gratuity are reviewed and provided at each balance sheet date.

g. Taxation

Income Tax: Provision for Income Tax is made as per the applicable rules under the Income-tax Act, 1961. Income tax expense represents the sum of the tax currently payable. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or exempt in earlier years and it further excludes items that are never taxable or exempt. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred Tax: Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profit and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred Tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystalise with reasonable certainty. However in case of deferred tax assets (representing minimum alternate tax) are recognised, if and only if there is virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred tax is recognised on adjustments to revenue reserves to the extent the adjustments are allowable as deductions in determination of taxable income and they would reverse out in future periods.

h. Secured Loans

a. Secured loans include Term Loan and Vehicle Hire-Purchase loan from Union Bank of India which are secured by hypothecation to the bank by way of first charge on all computers, un-interrupted power supply equipments, vehicles and the term loan is further secured by a third party guarantee.

b. Secured loan from Kotak Mahindra Prime Limited is secured by hypothecation of Volkswagen car.

c. Secured loans include Working Capital (Cash Credit facility) from Axis Bank Ltd against bills receivable.

d. Secured loans include Overdraft from Indian Overseas Bank against fixed deposits.

i. Inventories and WIP: Nil j. Preliminary and Issue Expenses: Nil k. Segment Reporting

The company operates only in one segment viz. Information Technology.

l. Related Party Disclosures

List of related parties where control exists and other related parties with whom the company had transactions and their relationship is as below:

m. Foreign Currency Translation Reserve

Exchange differences on account of fluctuations in foreign currency rates are treated as under:

i) Exchange difference gain/(loss) recognised in the Statement of Profit and Loss relating to exports/services during the year.

ii) Exchange difference gain/(loss) recognised in the Balance Sheet relating to investments as Foreign Currency Translation Reserve.

iii) As per Accounting Standard 11 (Integral foreign operations) issued by the Institute of Chartered Accountants of India the impact of exchange difference gain or loss has not been considered in respect of branch operations in Singapore.

p. Contingent Liabilities

1. Stand By Letter of Credit (SBLC)/Bank Guarantee (BG) is issued by Axis Bank favouring EFG Bank AG, Singapore, in favour of the beneficiary being Info-Drive Software Pte. Ltd., wholly owned subsidiary in Singapore amounting to Rs. 1570 lakhs (USD 3 Mio) against fully secured cash margin deposits with Axis Bank Rs. 1570 lakhs for a period of one year ending 22.02.2013 (Previous year - Rs. 1370 Lakhs).

2. Stand By Letter of Credit (SBLC)/Corporate Guarantee (CG) is issued favouring Indian Overseas Bank, Singapore, in favour of the beneficiary being Info-Drive Software Pte Ltd., wholly owned subsidiary in Singapore amounting up to Rs. 2397 lakhs (SGD 5.925 Mio) against secured cash margin deposits with Indian Overseas Bank up to Rs. 748 lakhs (SGD 1.85 Mio) for a period of one year ending 10.11.2012 and 28.11.2012 respectively.

3. The appeal filed by the company with the Commissioner of Income-tax, Appeals III in respect of the disallowance of claim under section 35D (issue expenses) of Rs. 4,50,296/- for the assessment year 2004-2005 has not been disposed off as yet; However, there is no demand of tax.

4. The company has filed appeal with the Commissioner of Income-tax, Appeals IV in respect of the demand on account of TDS on international transactions raised by the department for the assessment year 2010-11 of Rs. 33,44,226/- and for the assessment year 2011-12 of Rs. 1,65,15,087/- respectively. No provision has been made for this contingency due to the Hon'ble High Court of Madras granting an interim injunction in favour of the company restraining the department with further proceedings on the demands and the company is confident of winning the appeals.

q. Due to SSI's

As at March 31, 2012 the company has no outstanding dues to Micro Enterprises, Small Enterprises and Small Scale Industrial

Undertakings.

r. Foreign Currency Transactions

Monetary current assets and current liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the exchange rates prevailing at the date of balance sheet.

s. Unclaimed Dividend

For the past three financial years the total unclaimed dividends amounted to Rs. 7,99,413/- comprising of Rs. 277,734/- (2007- 2008), Rs. 236,194/- (2008-2009) and Rs. 2,85,485/- (2009-2010) respectively.

t. Confirmations from Sundry Debtors, Creditors, Loans and Advances

Confirmation of balances from Sundry Debtors, Creditors and loans and advances are yet to be received in some cases though the company has sent letters for confirmation by them. The balances adopted are as appearing in the books of accounts of the Company.

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Mar 31, 2011

GENERAL INFORMATION

info-Drive Software Limited (the Company) is a juristic person incorporated under the Companies Act, 1956. The address of its Registered Office and principal place of business is Buhari Buildings, No.3, Moores Road, Chennai - 600 006. The principal activities of the Company are development of computer software, business process outsourcing (BPO), hardware and software consultancy services. The Company is a software exporter registered under Software Technology Parks of India (STPI).

SIGNIFICANT ACCOUNTING POLICIES

a . Basis of Preparation

The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and according to the provisions of the Companies Act, 1956.

b . Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts. Revenues from contracts priced on time and materia basis are recognised when services are rendered and related costs are incurred.

Software Services: Where the outcome of a turnkey contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the Balance Sheet date, as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.

c . Fixed Assets

Fixed assets are stated at historical cost of acquisition and improvements thereon less accumulated depreciation.

d . Depreciation

Depreciation on fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956 and on pro-rata basis of the assets acquired during the year.

e . Investments

investments are classified as current or long term in accordance with Accounting Standard 13 on Accounting for Investments'.

- Long term investments are stated at cost to the company. The company provides for diminution in the value of long term investments other than those temporary in nature.

The value ovf investments in Info-Drive Software Inc. USA though diminished as on the date of balance sheet, management is confident of augmenting resources against firm orders to mitigate any further erosion and hence carried at cost.

The value of investments in Info-Drive Software Pte Ltd has also diminished; however, as the entity has not begun any commercial operations during the year under review and as the management is confident of firm orders in the current year the same has also been valued at cost.

- Current investments

info-Drive Software Inc., USA : Nil (Previous year Rs. 9,93,877/-) infodrive Mauritius Limited, Mauritius: Rs. 44,40,000/- (Previous year Nil).

- In case of foreign investments

- the cost is the rupee value of the foreign currency on date of balance sheet.

- the face value of the foreign investments is shown at the face value refected in the foreign currency of that country.

f . Employee Benefits

Short term employee benefits are measured at cost. Long term employee benefits and post employment benefits such as gratuity are reviewed and provided at each balance sheet date.

g . Taxation

Income Tax: The Company is entitled to tax exemption u/s 10A of the Income Tax Act, 1961 and Provision for Income Tax is made based on the available exemption under the said section. Income tax expense represents the sum of the tax currently payable. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or exempt in earlier years and it further excludes items that are never taxable or exempt. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Provision for tax has been adequately made for the year under review.

Deferred Tax: Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financia statements and the corresponding tax bases used in computation of taxable profit and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable proftis will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred Tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystalise with reasonable certainty. However in case of deferred tax assets (representing minimum alternate tax) are recognised, if and only if there is virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred tax is recognised on adjustments to revenue reserves to the extent the adjustments are allowable as deductions in determination of taxable income and they would reverse out in future periods.

h . Secured Loans

a. Secured loans include Term Loan and Vehicle Hire-Purchase loan from Union Bank of India which are secured by hypothecation to the bank by way of first charge on all computers, un-interrupted power supply equipments, vehicles and the term loan is further secured by a third party guarantee.

b. Secured loan from Kotak Mahindra Prime Limited is secured by hypothecation of Volkswagen car.

c. Secured loans include Working Capital (Cash Credit facility) from Axis Bank Ltd. against bills receivable.

i . Inventories and WIP

inventories and WIP (unbilled services) are stated at lower of cost and net realisable value. Cost comprises direct costs and those overheads that have been incurred in bringing the inventories and WIP to their present condition. Net realisable value represents the estimated realisation less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

The company holds CD's amounting to Rs. 15.23 lakhs as part of inventories which is undergoing up-gradation; the company proposes to release a newer version and consequently the written down value (impaired value) as stated could be realised, in the normal course of business.

j . Preliminary and Issue Expenses

The company during the year successfully completed a QIB issue of Rs. 39,62,83,250/- and incurred an expenditure of Rs. 23,55,226/- in connection with this issue and the same has been adjusted against share premium. Further the preliminary expenses of Rs. 49,69,013/- was also fully written off to share premium account.

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Mar 31, 2010

A. Basis of Preparation

The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and according to the provisions of the Companies Act, 1956.

b. Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts. Revenues from contracts priced on time and material basis are recognised when services are rendered and related costs are incurred.

Software services: Where the outcome of a turnkey contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the Balance Sheet date, as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.

c. Fixed Assets

Fixed assets are stated at historical cost of acquisition and improvements thereon less accumulated depreciation.

d. Depreciation

Depreciation on fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956 and on pro-rata basis of the assets acquired during the year.

e. Investments

Investments are classified as current or long term in accordance with Accounting Standard 13 on `Accounting for Investments'.

- Long term investments are stated at cost to the company. The company provides for diminution in the value of long term investments other than those temporary in nature.

- Current investments Info-Drive Software Inc.,USA : Rs.9,93,877/- (Nil)

- In case of foreign investments the cost is the rupee value of the foreign currency on date of balance sheet. the face value of the foreign investments is shown at the face value reflected in the foreign currency of that country.

f. Employee benefits

Short term employee benefits are measured at cost. Long term employee benefits and post employment benefits such as gratuity are reviewed and provided at each balance sheet date.

g. Taxation

Income Tax: The Company is entitled to tax exemption U/s.10A of the Income Tax Act, 1961 and the Provision for Income Tax is made based on the available exemption under the said section. Income tax expense represents the sum of the tax currently payable. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or exempt in other years and it further excludes items that are never taxable or exempt. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred Tax: Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profit and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred Tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystalise with reasonable certainty. However in case of deferred tax assets (representing minimum alternate tax) are recognised, if and only if there is virtual certainty that three would be adequate future taxable income against which such deferred tax assets can be realised. Deferred tax is recognised on adjustments to revenue reserves to the extent the adjustments are allowable as deductions in determination of taxable income and they would reverse out in future periods.

h) Secured Loans

a. Secured loans include Term loan and vehicle hire-purchase loan from Union Bank of India which are secured by hypothecation to the bank by way of first charge on all computers, un-interrupted power supply equipments, vehicles and the term loan is further secured by a third party guarantee.

b. Secured loans include Working Capital (Cash Credit facility) from Axis Bank Ltd against bills receivable/foreign bills discounting.

i) Inventories

Inventories are stated at lower of cost and net realisable value. Cost comprises direct costs and those overheads that have been incurred in bringing the inventories to their present condition. Net realizable value represents the estimated realisation less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

j) Segment reporting

The company operates only in one segment viz. Information Technology.

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Mar 31, 2009

A. Basis of Preparation

The financial statements are prepared under the historical cost convention under accrual method of accounting anc as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and according to the provisions of the Companies Act, 1956.

b. Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts.

Revenues from contracts priced on time and material basis are recognised when services are rendered and relatec costs are incurred.

Software Services: Where the outcome of a turnkey contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the Balance Sheet date, as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion

c. Fixed Assets

Fixed assets are stated at historical cost of acquisition and improvements thereon iess accumulated depreciation.

d. Depreciation

Depreciation on fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956 and on pro-rata basis ot the assets acquired during the year.

e. Investments

Investments are classified as current or long term in accordance with Accounting Standard 13 on Accounting for Investments.

Long term investments are stated at cost to the Company. The Company provides for diminution in the value of long term investments other than those temporary in nature Current investments -Nil. In case of foreign investments: the cost is the rupee value of the foreign currency on date of balance sheet.the face value of the foreign investments is shown at the face value reflected in the foreign currency of that country.

f. Employee benefits

Short term employee benefits are measured at cost. Long term employee benefits and post employment benefits such as gratuity are reviewed and provided at each balance sheet date.

g. Taxation

Income Tax: The Company is entitled to tax exemption U/s.lOA of the Income Tax Act, 1961 and the provision for Income Tax is made based on the available exemption under the said section. Income tax expense represents the sum of the tax currently payable. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or exempt in other years and it further excludes items that are never taxable or exempt. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax: Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profit and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow aII or part of the asset to be recovered.

Deferred Tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystalise with reasonable certainty. However in case of deferred tax assets (representing minimum alternate tax) are recognised if and only if there Is virtual certainty that three would be adeguate future taxable income against which such deferred tax assets can be realised. Deferred tax is recognised on adjustments to revenue reserves to the extent the adjustments are allowable as deductions in determination of taxable income and they would reverse out in future periods.

Fringe Benefit Tax: Fringe Benefit Tax (FBT) is provided in respect of benefits to employees as defined under section 115WB. FBT payable under the provisions of 115WC of the Income Tax Act 1961 is in accordance with the guidance note on Accounting for Fringe Benefits Tax issued by the Institute of Chartered Accountants of India regarded as an additional income tax and considered in determination of profits for the year.

h. Secured Loans

Secured loans include Term loan and vehicle hire-purchase loan from Union Bank of India which are secured by hypothecation to the bank by way of first charge on all computers, un-interrupted power supply equipments, vehicles and the term loan is further secured by a third party guarantee.

i. Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct costs and those overheads that have been incurred in bringing the inventories to their present condition Net realizable value represents the estimated realisation less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

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Mar 31, 2008

I. Basis of Preparation: The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and according to the provisions of the Companies Act, 1956.

ii. Fixed Assets: Fixed assets are stated at historical cost of acquisition and improvements thereon less accumulated depreciation.

iii. Depreciation: Depreciation on fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956 and on pro-rata basis of the asserts acquired during the year.

iv. Revenue recognition: Revenues from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred.

Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognized over the life of the contract using the proportionate completion method with contract costs determining the degree of completion.

v. Investments: Investments are classified as current or long term in accordance with Accounting Standard 13 on Accounting for Investments.

i) Long term investments are stated at cost to the company. The company provides for diminution in the value of long term investments other than those temporary in nature.

ii) Current investments - Nil

iii) In case of foreign investments

1) the cost is the rupee value of the foreign currency on date of investments.

2) the face value of the foreign investments is shown at the face value reflected in the foreign currency of that country.

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Mar 31, 2007

1. ACCOUNTING POLICIES:

i. The accounts are prepared in accordance with normally accepted accounting policies.

ii. The company follows mercantile system of accounting

iii. Fixed assets are stated at historical cost of acquisition and improvements thereon.

iv. Depreciation:

Depreciation on fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956.

v. Income and Expenditure are accounted on accrual basis.

vi. No provision for depreciation has been made on the assets goodwill and software packages.

vii. Stock is valued at cost or market value which ever is lower.

3. There are no employees who have put in the minimum requisite service to become eligible for gratuity.

4. The provisions of Employees State Insurance Act are not applicable to the company

5. Sundry creditors do not includes any dues to SSIs.

6. An amount of Rs.20,000/- is provided towards Fringe Benefit Tax for the current year.

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Mar 31, 2005

Schedules forming part of the balance sheet as at 31st march 2605 and the profit and loss account for the period ended on that date.

ACCOUNTING POLICIES

1. The accounts are prepared inaccordance with normally accepted accounting policies.

2. The company follows mercantile system of accounting.

3. Fixed Assets are stated at the historical cost of acquisition and improvements thereon.

4. Incomes and Expenses are accounted on accrual basis.

5. No provision for depreciation has been made on the assets good will and software packages.

6. Preliminary expenses and issue expenses are being amortised over a period of ten years.

7. Stock is valued at cost or marked price whichever is lower.

8. Quantitative information

Opening Production Sales Closing Stock

Software-CD 1,465 - - 1,465

Software-DVDs - 134 130 4

9. Foreign Currency transactions: This year(Rs) Last year(Rs)

Earnings in Foreign Currency 19,069 Nil

Expenditure in Foreign Currency Nil Nil

10. As there is no manpower is employed during the period under review the question of provision for gratuity and leave encashment does not arise.

11. The provisions of Employee State Insurance Act are not applicable to the Company.

12. Depreciation: Depreciation of fixed assets have been provided on Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956.

13. Sundry Creditors do not include any dues to SSIs

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Mar 31, 2003

ACCOUNTING POLICIES

1. The accounts are prepared inaccordance with normally accepted accounting policies.

2. The company follows mercantile system of accounting.

3. Fixed Assets are stated at the historical cost of acquisition and improvements thereon.

4. Incomes and Expenses are accounted on accrual basis.

5. No provision for depreciation has been made on the assets good will and software packages.

6. Preliminary expenses and issue expenses are being amortised over a period of ten years.

7. Stock is valued at cost or marked price whichever is lower.

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Mar 31, 2002

1. The accounts are prepared in accordance with normally accepted accounting policies.

2. The company follows mercantile system of accounting.

3. Fixed Assets are stated at the historical cost of acquisition and improvements thereon.

4. Incomes and Expenses are accounted on accrual basis.

5. No provision for depreciation has been made on the assets good will and software packages.

6. Preliminary expenses and issue expenses are being amortised over a period of ten years.

7. Stock is valued at cost or marked price whichever is lower.

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Jun 30, 1999

ACCOUNTING POLICIES

1. The accounts are prepared in accordance with normally accepted accounting policy.

2. The Company follows mercantile system of accounting.

3. Fixed Assets are stated at the historical cost of acquisition and improvements.

4. Incomes are accounted on accrual basis.

5. Expenses are accounted on Accrual basis.

6. The assets other than goodwill and software packages are depreciated on straight line method at the rates specified in Schedule XIV of the companies Act, 1956. Depreciation on additions made during the year is worked out on pro rata basis.

7. Preliminary expenses and issue expenses are being amortised over a period of ten years.

8. Stock is valued at cost or market price whichever is lower.

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Jun 30, 1996

1. The accounts are prepared in accordance with normally accepted accounting policies.

2. The company follows mercantile system of accounting.

3. Fixed assets are stated at the historical cost of acquisition and improvements thereon.

4. Incomes are accounted at the point of accrual or receipt basis whichever is earlier.

5. Expenses are accounted on accrual basis.

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Mar 31, 1995

(i) The accounts are prepared in accordance with normally accepted accounting policies.

(ii) The Company follows mercantile system of accounting.

(iii) Fixed assets are stated at the historical cost of acquisition and improvements thereto.

(iv) Incomes are accounted at the point of accrual or receipt basis which ever is earlier.

(v) Expenses are accounted on accrual basis.

(vi) Software packages, Software development charges and goodwill are not depreciated. Other assets are depreciated on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on additions made during the year is worked out on prorota basis.

(vii) Preliminary expenses are being amortised over a period of ten years.

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Mar 31, 1994

Not Available