Accounting Policies of Laddu Gopal Online Services Ltd. Company

Mar 31, 2025

B. Significant Accounting Policies

B. 1 Basis of Preparation and Presentation

B.1.1 Statement of Compliance

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and the Companies (Indian Accounting Standards) Amendment Rules, 2016. The financial statements up to
year ended March 31, 2025 were prepared in accordance with the accounting standards notified under Companies
(Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act. Previous period figures
in the financial statements have been restated in Ind AS.

B.1.2 Basis of Measurement

The standalone financial statements have been prepared on a historical cost basis, on the accrual basis of accounting
except for certain financial assets and liabilities measured at fair value at the end of each reporting period, as
explained in relevant schedule notes.

B.1.3 Functional and presentation currency

Indian rupee is the functional and presentation currency.

B.1.4 Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make estimates,
judgments and assumptions.

These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts
of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding
the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made
and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require critical accounting estimates involving complex and subjective
judgments and the use of assumptions in these financial statements are:

- Useful lives of Property, plant and equipment

- Valuation of financial instruments

- Provisions and contingencies

- Income tax and deferred tax

- Measurement of defined employee benefit obligations

- Export Incentive

B.2 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

B.2.1 Sale of Services

Revenue from sale of services is recognized when the Company transfers all significant risks and rewards of
ownership to the buyer, while the Company retains neither continuing managerial involvement nor effective control
over the products sold.

Revenue is exclusive of excise duty and is reduced for estimated customer returns, commissions, rebates and
discounts and other similar allowances.

B.2.2 Other Operating Revenue

Other Operating Revenue comprises of income from ancillary activities incidental to the operations of the company
and is recognised when the right to receive the income is established as per the terms of contracts.

B.2.3 Dividend and Interest income

Dividend income is recognized when the right to receive payment has been established (provided that it is probable
that the economic benefits will flow to the Company and the revenue can be measured reliably).

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable (provided that it is probable that the economic benefits will flow to the Company and the revenue can be
measured reliably).

B.3 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of
those assets, until such time as the assets are substantially ready for their intended use. All other borrowing costs
are recognised in profit or loss in the period in which they are incurred.

B.4 Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax. Current and deferred tax are
recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or
directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or
directly in equity respectively.

Current tax:

Current tax is determined on taxable profits for the year chargeable to tax in accordance with the applicable tax rates
and the provisions of the Income Tax Act, 1961 including other applicable tax laws that have been enacted or
substantively enacted.

Provisions for current income taxes are presented in the balance sheet after off-setting advance taxes paid and
TDS/TCS receivables.

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT
credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance
Note issued by the Institute of Chartered Accountants of India. MAT Credit Entitlement, is classified as unused tax
credits under deferred tax by way of a credit to the statement of profit and loss.

Deferred tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent that it is probable that taxable profits will be available against
which those deductible temporary differences can be utilised. Deferred tax asset is recognised for the carry forward
of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available
against which the unused tax losses and unused tax credits can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount
of its assets and liabilities.

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Mar 31, 2024

c. SIGNIFICANT ACCOUNTING POLICIES
Fair Value

Fair Value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date, regardless of
whether that price is directly observable or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the Company takes into account the
characteristics of the asset or liability if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date.

Fair Value Measurement

Company’s accounting policies and disclosures required fair value measurement for both
financial and non-financial assets and liabilities.

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

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

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

iii. Level III - Valuation techniques for which the lowest level input that is significant to the
fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by
re-assessing categorization, based on the lowest level input that is significant to the fair value
measurement, at the end of each reporting period.

The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimising the use of unobservable inputs. External valuers are
involved for valuation of significant assets and liabilities. Involvement of external valuers is
decided upon annually by the Management. Selection criteria include market knowledge,
reputation, independence and whether professional standards are maintained. The
Management decides, after discussions with the Company’s external valuers, which valuation
techniques and inputs to use for each case.

At each reporting date, the Management analysis the movement in the value of assets and
liabilities, which are required to be re-measured or re-assessed as per the Company''s
accounting policies. For this analysis, the Management verifies the major inputs applied in
the latest valuation by agreeing the information in the valuation computation to contracts and
other relevant documents.

For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained above.

Current Versus Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/non-current
classification.

An asset or liability is treated as current if it satisfies any of the following condition:

i. the asset/liability is expected to be realised/settled in normal operating cycle;

ii. the asset is intended for sale or consumption;

iii. the asset/liability is held primarily for the purpose of trading;

iv. the asset/liability is expected to be realised/settled within twelve months after the
reporting period;

v. the asset is cash or cash equivalent unless restricted from being exchanged or used to
settle a liability for at least twelve months after the reporting period;

vi. in the case of a liability, the Company does not have an unconditional right to defer
settlement of the liability for at least twelve months after the reporting period.

All other assets and liabilities are classified as non-current. Deferred tax assets and liabilities
are classified as non-current assets and liabilities. The operating cycle is the time between the
acquisition of assets for processing and their realisation in cash and cash equivalents. The
Company has identified twelve months as its operating cycle.

Use of Estimates and Judgements

In preparing these financial statements, management has made judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses and the accompanying disclosures and disclosure of
contingent liabilities. Actual results may differ from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis and are based on historical
experience and other factors, including expectation of future events that may have a financial
impact on the Company and that are believed to be reasonable under the circumstances. The
revisions in accounting estimates and assumptions are recognized prospectively. Detailed
information about estimates and judgements is included in Note 35.

Foreign Currency Transactions

Foreign currency transactions are translated into the functional currency at the exchange rates
on the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated into the
functional currency at the exchange rate at the reporting date. Exchange difference arising on
settlement or translation of monetary items is recognized in the Statement of Profit and Loss
on net basis.

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

Property, Plant & Equipment

Recognition & Measurement

All items of property, plant and equipment (PPE) are stated at cost less accumulated
depreciation and impairment if any. Cost of an item of PPE includes its purchase cost, non¬
refundable taxes and duties, directly attributable cost of bringing the item to its working
condition for its intended use and borrowing cost if the recognition criteria is met. Leasehold
land is stated at original cost value.

Subsequent costs are included in an item of PPE’s carrying value or recognized as a separate
item, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Company and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to the Statement of Profit and Loss during the reporting
period in which they are incurred.

An item of PPE or any significant part thereof is de-recognized upon disposal or when no
future economic benefits are expected from its use. Any gain or loss on de-recognition of an
item of PPE is recognized in Statement of Profit and Loss.

Depreciation on Property, Plant and Equipment’s is provided on the Written Down Value
(WDV) Method over the useful lives of assets prescribed in Schedule II of the Companies

Act, 2013. Depreciation for assets purchased/ sold during a period is provided on Pro-rata
basis.

However, there is no Property, Plant and Equipment’s in the company during the year.

Investment Property

Recognition and initial measurement

Investment property are property held to earn rentals or for capital appreciation, or both.
Investment Property are measured initially at their cost of acquisition. The cost comprises
purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost
of bringing the asset to its working condition for the intended use. Any trade discount and
rebates are deducted in arriving at the purchase price.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the company. All other repair and maintenance costs are recognized in statement
of profit and loss as incurred.

However, there is no Investment property in the company during the year.

Subsequent measurement (Depreciation and Useful Lives)

Investment property are subsequently measured at cost less accumulated depreciation and
impairment losses (Except Freehold land). Freehold land is stated at cost. Depreciation on
Investment Property is provided on the Written down value (WDV) Method, computed on the
basis of useful lives prescribed in Schedule II to the Companies Act.

The residual values, useful lives and method of depreciation are reviewed at the end of each
financial year.

Revenue Recognition

Effective April 1, 2018, Company adopted IND AS-115, Revenue from Contracts with
Customers, using the Cumulative catch-up transition method applied, the comparatives have
not been retrospectively adjusted.

Rental income

Rental income is recognized on a straight-line basis over the terms of the lease, except for
contingent rental income which is recognized when it arises and where scheduled increase in
rent compensates the lessor for expected inflationary costs. Parking income and fit out rental
income is recognized instatement of profit and loss on accrual basis.

Service receipts

Revenue is recognized as the related services are performed and revenue from the end of the
last invoicing to the reporting date is recognized as unbilled revenue. Revenue from fixed
price contracts, fixed time frame contracts, where the performance obligations are satisfied
over time and no uncertainty as to measurement or collectability of consideration, is
recognized as service receipts.

Interest income

Interest income is recorded on accrual basis using the effective interest rate (EIR) method.
Dividend income

Dividend income is recognized at the time when the right to receive is established by the
reporting date.

INVENTORIES

Items of Inventory are valued at lower of cost and estimated net realizable value. Net
realizable value is the estimated selling price in the ordinary course of business, less estimated
costs of completion and estimated costs necessary to make the sale.

The Company do not carry any business activities during the year which would have required
any inventories.

FINANCIAL INSTRUMENTS

A Financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

I. Financial Assets

Initial recognition and measurement:

The Company recognizes a financial asset in its Balance Sheet when it becomes party to the
contractual provisions of the instrument. All Financial assets are recognized initially at fair
value, plus in the case of financial assets not recorded at fair value through profit or loses
(FVTPL), transaction costs that are attributable to the acquisition of the financial asset.

Where the fair value of a financial asset at initial recognition is different from its transaction
price, the difference between the fair value and the transaction price is recognized as a gain or
loss in the Statement of Profit and Loss at initial recognition if the fair value is determined
through a quoted market price in an active market for an identical asset (i.e., level 1 input) or
through a valuation technique that uses data from observable markets (i.e., level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above,
the difference between the fair value and transaction price is deferred appropriately and
recognized as a gain or loss in the Statement of Profit and Loss only to the extent that such
gain or loss arises due to a change in factor that market participants take into account when
pricing the financial asset.

However, trade receivables that do not contain a significant Financing component are
measured at transaction price.

Subsequent measurement:

For subsequent measurement, the Company classifies a financial asset in accordance with the
below criteria:

a. The Company’s business model for managing the financial asset and

b. The contractual cash flow characteristics of the financial asset.

Based on the above criteria, the Company classifies its financial assets into the following
categories:

i. Financial assets measured at amortized cost

ii. Financial assets measured at fair value through other comprehensive income (FVTOCI)

iii. Financial assets measured at fair value through profit or loss (FVTPL)

i. Financial assets measured at amortized cost:

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

a) The Company’s business model objective for managing the financial asset is to hold
financial assets in order to collect contractual cash flows, and

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

This category applies to certain investment in debt instruments. Such Financial assets are
subsequently measured at amortized cost using the effective interest method.

Under the effective interest method, the future cash receipts are exactly discounted to the
initial recognition value using the effective interest rate. The cumulative amortization using
the effective interest method of the difference between the initial recognition amount and the
maturity amount is added to the initial recognition value (net of principal repayments, if any)
of the financial asset over the relevant period of the financial asset to arrive at the amortized
cost at each reporting date. The corresponding effect of the amortization under effective
interest method is recognized as interest income over the relevant period of the financial asset.
The same is included under other income in the statement of Profit and Loss.

The amortized cost of a financial asset is also adjusted for loss allowance, if any.

ii. Financial assets measured at FVTOCI:

A Financial asset is measured at FVTOCI if both of the following conditions are met:

a) The Company’s business model objective for managing the financial asset is achieved
both by collecting contractual cash flows and selling the financial assets, and

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

This category applies to certain investments in equity instruments such financial assets are
subsequently measured at fair value at each reporting date. Fair value changes are recognized
in the Other Comprehensive Income (OCI). However, the Company recognizes interest
income and impairment losses and its reversals in the Statement of Profit and Loss.

On De-recognition of such financial assets, cumulative gain or loss previously recognized in
OCI is reclassified from equity to Statement of Profit and Loss.

iii. Financial assets measured at FVTPL:

A Financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI
as explained above. This is a residual category applied to all other investments of the Company
(Refer Note 32 for further details). Such Financial assets are subsequently measured at fair
value at each reporting date. Fair value changes are recognized in the Statement of Profit and
Loss.

A Financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is derecognized (i.e., removed from the Company’s Balance Sheet) when any
of the following occurs:

a. The contractual rights to cash flows from the financial asset expire;

b. The Company transfers its contractual rights to receive cash flows of the financial asset and
has substantially transferred all the risks and rewards of ownership of the financial asset;

c. The Company retains the contractual rights to receive cash flows but assumes a contractual
obligation to pay the cash flows without material delay to one or more recipients under a ‘pass¬
through’ arrangement (thereby substantially transferring all the risks and rewards of
ownership of the financial asset);

d. The Company neither transfers nor retains substantially all risk and rewards of ownership
and does not retain control over the financial asset.

In cases where Company has neither transferred nor retained substantially all of the risks and
rewards of the financial asset, but retains control of the financial asset, the Company continues
to recognize such financial asset to the extent of its continuing involvement in the financial
asset. In that case, the Company also recognizes an associated liability. The Financial asset
and the associated liability are measured on a basis that reflects the rights and obligations that
the Company has retained.

On De-recognition of a financial asset, (except as mentioned in ii above for financial assets
measured at FVTOCI), the difference between the carrying amount and the consideration
received is recognized in the Statement of Profit and Loss.

Impairment of financial assets:

The Company applies expected credit losses (ECL) model for measurement and recognition
of loss allowance on the following:

i) Trade receivables

ii) Financial assets measured at amortized cost (other than trade receivables)

iii) Financial assets measured at fair value through other comprehensive income (FVTOCI)

In case of trade receivables, the Company follows a simplified approach wherein an amount
equal to lifetime ECL is measured and recognized as loss allowance.

In case of other assets (listed as ii and iii above), the Company determines if there has been a
significant increase in credit risk of the financial asset since initial recognition. If the credit
risk of such assets has not increased significantly, an amount equal to 12-month ECL is
measured and recognized as loss allowance. However, if credit risk has increased
significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.

Subsequently, if the credit quality of the financial asset improves such that there is no longer
a significant increase in credit risk since initial recognition, the Company reverts to
recognizing impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the entity expects to receive (i.e., all
cash shortfalls), discounted at the original effective interest rate.

Lifetime ECL are the expected credit losses resulting from all possible default events over the
expected life of a financial asset. 12-month ECL is a portion of the lifetime ECL which results
from default events that are possible within 12 months from the reporting date.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts
determined by a range of outcomes, taking into account the time value of money and other
reasonable information available as a result of past events, current conditions and forecasts of
future economic conditions.

As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its
portfolio of trade receivables. The provision matrix is prepared based on historically observed
default rates over the expected life of trade receivables and is adjusted for forward-looking
estimates. At each reporting date, the historically observed default rates and changes in the
forward-looking estimates are updated.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as
income/ expense in the Statement of Profit and Loss under the head ‘Other expenses.

II. Financial Liabilities

Initial recognition and measurement:

The Company recognizes a financial liability in its Balance Sheet when it becomes party to
the contractual provisions of the instrument. All Financial liabilities are recognized initially
at fair value minus, in the case of financial liabilities not recorded at fair value through profit
or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial
liability.

Where the fair value of a financial liability at initial recognition is different from its transaction
price, the difference between the fair value and the transaction price is recognized as a gain or
loss in the Statement of Profit and Loss at initial recognition if the fair value is determined
through a quoted market price in an active market for an identical asset (i.e. level 1 input) or
through a valuation technique that uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above,
the difference between the fair value and transaction price is deferred appropriately and
recognized as a gain or loss in the Statement of Profit and Loss only to the extent that such
gain or loss arises due to a change in factor that market participants take into account when
pricing the financial liability.

Subsequent measurement:

All Financial liabilities of the Company are subsequently measured at amortized cost using
the effective interest method.

Under the effective interest method, the future cash payments are exactly discounted to the
initial recognition value using the effective interest rate. The cumulative amortization using
the effective interest method of the difference between the initial recognition amount and the
maturity amount is added to the initial recognition value (net of principal repayments, if any)
of the financial liability over the relevant period of the financial liability to arrive at the
amortized cost at each reporting date. The corresponding effect of the amortization under
effective interest method is recognized as interest expense over the relevant period of the
financial liability. The same is included under Finance cost in the Statement of Profit and
Loss.

De-recognition:

A Financial liability is de-recognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the De-recognition of the original
liability and the recognition of a new liability. The difference between the carrying amount of
the financial liability de-recognized and the consideration paid is recognized in the Statement
of Profit and Loss.

Impairment

Assets that have an indefinite useful life are not subject to amortization and are tested for
impairment annually and whenever there is an indication that the asset may be impaired.

Assets that are subject to depreciation and amortization are reviewed for impairment,
whenever events or changes in circumstances indicate that carrying amount may not be
recoverable. Such circumstances include, though are not limited to, significant or sustained
decline in revenues or earnings and material adverse changes in the economic environment.

An impairment loss is recognized whenever the carrying amount of an asset or its cash
generating unit (CGU) exceeds its recoverable amount. The recoverable amount of an asset is
the greater of its fair value less cost to sell and value in use. To calculate value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market rates and the risk specific to the asset. For an asset that does not
generate largely independent cash inflows, the recoverable amount is determined for the CGU
to which the asset belongs. Fair value less cost to sell is the best estimate of the amount
obtainable from the sale of an asset in an arm’s length transaction between knowledgeable,
willing parties, less the cost of disposal.

Impairment losses, if any, are recognized in the Statement of Profit and Loss and included in
depreciation and amortization expense. Impairment losses are reversed in the Statement of
Profit and Loss only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined if no impairment loss had previously been
recognized.

Income Tax

Income Tax comprises current and deferred tax and is recognized in Statement of Profit and
Loss except to the extent that it relates to an item recognized in other comprehensive income
or directly in equity. In this case, the tax is also recognized in other comprehensive income or
in equity as the case may be.

I. Current Tax

Current tax comprises the expected tax payable on the taxable income for the year and any
adjustments to the tax payable in respect of previous years. It is measured using tax rates and
tax laws enacted or substantively enacted by the reporting date.

II. Deferred Tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the corresponding amounts used
for taxation purposes. Deferred tax asset is also recognized in respect of carried forward tax
losses and unused tax credits.

Deferred Tax assets are recognized only when it is probable that future taxable amounts will
be available to utilize those temporary differences, carried forward tax losses and unused tax
credits.

Deferred Tax is measured at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled, based on the tax laws that have been enacted or
substantively enacted by the reporting date.

The Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a
net basis, or to realize the asset and settle the liability simultaneously. In case of deferred tax
assets and deferred tax liabilities, the same are offset if the Company has a legally enforceable
right to set off corresponding current tax assets against current tax liabilities and the deferred
tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority
on the Company.

Employee Benefits
I. Defined contribution plan

Provident Fund, a defined contribution plan, is a post-employment benefit plan under
which the Company pays contributions into a separate entity and has no legal or
constructive obligation to pay further amounts. The Company recognizes the

contributions payable towards the provident fund as an expense in the Statement of
Profit and Loss in the periods during which the related services are rendered by
employees.

II. Defined benefit plan

A defined benefit plan is a post-employment benefit plan other than a defined
contribution plan. The Company has unfunded Gratuity liability towards this which is
provided on the basis of actuarial valuation made by an external valuer at the end of
each financial year using the projected unit credit method and is contributed to the
Gratuity Fund formed by the company.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset
ceiling (if any, excluding interest) are immediately recognized in the balance sheet
with corresponding debit or credit to Other Equity through OCI. Re-measurements are
not classified to profit or loss in subsequent periods.

Net interest and changes in the present value of defined benefit obligation resulting
from plan amendments or curtailments are recognized in profit or loss.

III. Other long term employee benefits

The liabilities for earned leave are measured and provided on the basis of actuarial
valuation made by an external valuer at the end of each financial year using the
projected unit credit method. Re-measurement gains or losses are recognized in
Statement of Profit and Loss in the period in which they arise.

Borrowing Costs

Borrowing costs consists of interest and other costs incurred in connection with the
borrowing of funds. Borrowing costs attributable to the acquisition or construction of
a qualifying asset that necessarily takes a substantial period of time to get ready for its
intended use are capitalized as part of the cost of the asset. Income earned on the
temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowings costs eligible for capitalization. All other
borrowing costs are expensed in the period in which they are incurred. Transaction
costs in respect of long-term borrowings are amortized over the tenor of respective
loans using effective interest method. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to the borrowing costs.

Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss before OCI for
the year attributable to equity shareholders by the weighted average number of equity
shares outstanding during the period.

Diluted earnings per share adjusts the figures used in determination of basic earnings
per share to take into account the post tax effect of finance costs associated with
dilutive potential equity shares and the weighted average number of additional equity
shares that would have been outstanding assuming the issue of all dilutive potential
equity shares.

Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and
short-term deposits with remaining maturity of 12 months or less, which are subject to
an insignificant risk of change in value.

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Mar 31, 2015

1. BASIS OF PREPARATION

These Financial Statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention, as applicable to going concern, 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 and the provisions of the Act (to extent notified) and guidelines issued by Securities and Exchange Board of India (SEBI). The accounting policies have been consistently applied by the Company and are consistent with those used in previous year.

a) USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumptions that affect the re- ported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the Financial Statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

b) FIXED ASSETS

Fixed Assets are stated at their original cost of acquisition or construction less accumulated depreciation (except land) and impairment loss if any. Cost comprises of purchase price and all expenses directly attributable to the acquisition or construction of the asset. Capital Work-in-Progress are capitalized as and when they are ready for use or put to use whichever is earlier. Till such time expenses incurred related to project and prior to commencement of project, including borrowing costs are capitalized under Capital Work-in-Progress.

c) DEPRECIATION /AMORTIZATION

Depreciation on tangible assets is provided on the Written down Value (WDV) Method over the useful lives of as- sets prescribed in Schedule II of the Companies Act, 2013. Depreciation for assets purchased/ sold during a period is provided on Pro-rata basis. Intangible assets are amortized over the respective individual estimated useful lives on Straight Line Method (SLM) basis, commencing from the date the asset is available to the Company for its use. Amortization has not been provided on the leasehold land.

d) INVENTORIES

Items of Inventory are valued at lower of cost or estimated realizable value. The valuation of inventories is made as per the requirements of Accounting Standard – 2, "Valuation of Inventories", prescribed under the Companies (Ac- counting Standards) Rules, 2006.

e) INVESTMENTS

Long Term Investments are stated at cost as per the requirements of Accounting Standard – 13, "Accounting for Investments", prescribed under the Companies (Accounting Standards) Rules, 2006. Decline in the value of long- term investments is recognized, if considered other than temporary.

Current Investments are stated at lower of cost or market value.

f) PROVISION FOR RETIREMENT BENEFITS

i) Periodical contributions made to the concerned authorities towards Provident Fund and ESI are charged to Revenue on accrual basis.

ii) The Company operates three defined benefit plans for its employees, viz. Gratuity, Leave Encashment (Earned Leave) and Leave Encashment (Sick Leave). As per the requirements of Accounting Standard – 15, "Employee Benefits", prescribed under the Companies (Accounting Standards) Rules, 2006, the costs of providing benefits under these plans are determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for the all (three) defined benefit plans are recognized in full in the period in which they occur in the Statement of Profit and Loss. The liability under all three defined benefit plans is unfunded.

g) TAXATION

Income tax comprises current tax and deferred tax. Current tax is the amount of tax payable as determined in accordance with the provisions of the Income Tax Act, 1961. As per the requirements of Accounting Standard – 22, "Accounting for Taxes on Income", prescribed under the Companies (Accounting Standards) Rules, 2006, deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date.

Minimum Alternative Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The Company recognizes MAT Credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which company recognizes MAT credit as an asset in accordance with "Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961", the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement".

h) EXPENSES

The Company has charged all expenses on accrual basis of accounting.

i) INCOME

The Company has recognized all incomes on accrual basis of accounting as per the requirements of Accounting Standard - 9, "Revenue Recognition", prescribed under the Companies (Accounting Standards) Rules, 2006.

Interest Income on late payment of dues by customers is recognized on actual receipt basis.

j) DERIVATIVE CONTRACTS

For transactions in derivative contracts, the company has adopted Guidance Note on Accounting for Derivative Contracts (2015) issued by Institute of Chartered Accountants of India. Accordingly, as on the balance sheet date derivative contracts have been valued at fair value derived by taking the market value of respective derivatives at the concerned stock exchanges where the derivative contracts are outstanding. Gains and/or losses arising on the above basis have been recognized in the Statement of Profit & Loss.

k) FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

l) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying value of asset exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identifed as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable value.

m) BORROWING COSTS

Borrowing costs that are attributable to the acquisition and/ or construction of a qualifying asset are capitalized as part of the cost of such asset and other borrowing costs are recognized as an expense in the period in which they are incurred. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

n) LEASE

Assets given under operating leases are included under fixed assets. Lease income is recognized in the Statement of Profit and Loss on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the Statement of Profit and Loss. Initial Direct Costs are charged to the Statement of Profit and Loss in period in which the same are incurred.

o) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company not acknowledged as debts are treated as contingent liabilities. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. In respect of statutory dues disputed and contested by the Company, Contingent Liabilities are provided for and disclosed as per original demand without taking into account any interest or penalty that may accrue thereafter. Contingent Liabilities are not recognized but are disclosed in the notes. Contin- gent Assets are neither recognized nor disclosed in the financial statements.

p) INTANGIBLE ASSETS

According to Accounting Standard - 26 on "Intangible Assets" prescribed under the Companies (Accounting Standards) Rules, 2006, in case of an expenditure incurred by the Company which may provide future economic benefits to the Company, however out of which, no intangible asset or other asset is acquired or created that can be recognized, the expenditure is recognized as an expense as and when it is incurred.

q) CASH FLOW STATEMENT

Cash Flows are reported using the indirect method as set out in the Accounting Standard - 3 on "Cash Flow Statement" prescribed under the Companies (Accounting Standards) Rules, 2006, whereby net profit before tax is adjusted for the effects of the transactions of non-cash nature and any deferrals or accruals of the past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

r) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents for the purpose of "Cash Flow Statement" comprise cash at bank and in hand and de- posits with bank with an original maturity of three months or less.

s) EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted number of equity shares outstanding during the period.

For the purpose of calculating of diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted number of equity shares outstanding during the period are adjusted for the effects of all potentially dilutive equity shares.

Defined Benefit Plans

The Company operates three defined benefit plans, viz., Gratuity, Leave Encashment (Earned Leave) and Leave Encashment (Sick Leave) for its employees. Under Gratuity Plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The liability is unfunded.

Under Leave Encashment (Earned Leave) Plan, every employee who has completed at least one year of service is eligible to get 15 earned leaves. The liability is unfunded.

Under Leave Encashment (Sick Leave) Plan, every employee who has completed at least three months of service is eligible to get 6 sick leaves on proportionate basis in a year. The liability is unfunded.

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Mar 31, 2014

A) USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Difference between the actual results and estimates are reflected in the Financial Statements for the period in which the results are known/ materialized.

b) FIXED ASSETS

Fixed Assets are stated at their original cost of acquisition or construction less accumulated depreciation (except land) and impairment loss if any. Cost comprises of purchase price and all expenses directly attributable to the acquisition or construction of the asset. Capital Work-in-Progress are capitalized as and when they are ready for use or put to use whichever is earlier. Till such time expenses incurred related to project and prior to commencement of project, including financing costs are capitalized under Capital Work-in-Progress, which also includes material at site.

c) DEPRECIATION / AMORTIZATION

i) Depreciation has been provided on the value capitalized on the assets actually put to use during the current year, as per the Written down Value (WDV) Method at rates prescribed in Schedule XIV of the Companies Act, 1956.

ii) Depreciation is calculated on pro-rata basis from the date of acquisition and/or capitalization, as may be applicable.

iii) Assets individually costing Rs. 5,000/- (Rupees Five Thousand only) or less are fully depreciated in the year of purchase.

iv) Amortization has not been provided on the leasehold land.

d) INVENTORIES

Inventories are valued as under:

Stores and Spares - At lower of cost or estimated realizable value

Stock of Software - At lower of costor estimated realizable value

The valuation of inventories are made as per the requirements of Accounting Standard - 2, "Valuation of Inventories", prescribed under the Companies (Accounting Standards) Rules, 2006.

e) INVESTMENTS

Long Term Investments are stated at cost as per the requirements of Accounting Standard -13, "Accounting for Investments", prescribed under the Companies (Accounting Standards) Rules, 2006. Decline in the value of long-term investments is recognized, if considered other than temporary.

Current Investments are stated at lower of cost or market value.

f) PROVISION FOR RETIREMENT BENEFITS

i) Periodical contributions made to the concerned authorities towards Provident Fund and ESI are charged to Revenue on accrual basis,

ii) The Company operates three defined benefit plans for its employees, viz. Gratuity, Leave Encashment (Earned Leave) and Leave Encashment (Sick Leave). As per the requirements of Accounting Standard - 15, "Employee Benefits", prescribed under the Companies (Accounting Standards) Rules, 2006, the costs of providing benefits under these plans are determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for the all (three) defined benefit plans are recognized in full in the period in which they occur in the Statement of profit and loss. The liability under all three defined benefit plans is unfunded.

g) TAXATION

Income tax comprises current tax and deferred tax. Current tax is the amount of tax payable as determined in accordance with the provisions of the Income Tax Act, 1961. As per the requirements of Accounting Standard -22, "Accounting for Taxes on Income", prescribed under the Companies (Accounting Standards) Rules, 2006, deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date.

Minimum Alternative Tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT Credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which company recognizes MAT credit as an asset in accordance with "Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961", the said asset is created by way of credit to the statement of profit and loss and shown as " MAT Credit Entitlement".

h) EXPENSES

The Company has charged all expenses on accrual basis of accounting.

i) INCOME

The Company has recognized all incomes on accrual basis of accounting as per the requirements of Accounting Standard - 9, "Revenue Recognition", prescribed under the Companies (Accounting Standards) Rules, 2006.

j) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rates prevailing on the dates of the transactions.

k) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The Impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable value.

I) BORROWING COSTS

Borrowing cost that is attributable to the acquisition or construction of a qualifying asset is capitalized as part of the cost of such asset and other borrowing costs are recognized as an expense in the period in which they are incurred. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

m) LEASE

Assets given under operating leases are included in fixed assets. Lease income is recognized in the Statement of Profit and Loss on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of profit and loss.

n) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Depending upon the facts of each case and after due evaluation of legal aspect, claims against the Company not acknowledged as debts are treated as contingent liabilities. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. In respect of statutory dues disputed and contested by the Company, Contingent Liabilities are provided for and disclosed as per original demand without taking into account any interest or penalty that may accrue thereafter. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements,

o) INTANGIBLE ASSETS

According to Accounting Standard -26 on "Intangible Assets" prescribed under the Companies (Accounting Standards) Rules, 2006, in case of an expenditure incurred by the Company which may provide future economic benefits to the Company, however out of which, no intangible asset or other asset is acquired or created that can be recognized, the expenditure is recognized as an expense as and when it is incurred.

p) CASH FLOW STATEMENT

Cash Flows are reported using the indirect method as set out in the Accounting Standard - 3 on "Cash Flow Statement" prescribed under the Companies (Accounting Standards) Rules, 2006, whereby net profit before tax is adjusted for the effects of the transactions of non-cash nature and any deferrals or accruals of the past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

q) CASHAND CASH EQUIVALENTS

Cash and Cash Equivalents for the purpose of "Cash Flow Statement" comprise cash at bank and in hand and deposits with bank with an original maturity of three months or less.

r) EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted number of equity shares outstanding during the period.

For the purpose of calculating of diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted number of equity shares outstanding during the period are adjusted for the effects of all potential dilutive equity shares.

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Mar 31, 2013

A) USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Difference between the actual results and estimates are reflected in the Financial Statements for the period in which the results are known / materialized.

b) FIXED ASSETS

Fixed Assets are stated at their original cost of acquisition or construction less accumulated depreciation (except land) and impairment loss if any. Cost comprises of purchase price and all expenses directly attributable to the acquisition or construction of the asset. Capital Work-in-Progress are capitalized as and when they are ready for use or put to use whichever is earlier. Till such time expenses incurred related to project and prior to commencement of project, including financing costs are capitalized under Capital Work-in-Progress, which also includes material at site.

c) DEPRECIATION /AMORTIZATION

i) Depreciation has been provided on the value capitalized on the assets actually put to use during the current year, as per the Written down Value (WDV) Method at rates prescribed in Schedule XIV of the Companies Act, 1956.

ii) Depreciation is calculated on pro-rata basis from the date of acquisition and/or capitalization, as may be applicable.

iii) Assets individually costing Rs. 5,000/- (Rupees Five Thousand only) or less are fully depreciated in the year of purchase.

iv) Amortization has not been provided on the leasehold land.

d) INVENTORIES

Inventories have been valued as under:

Stores and Spares - At lower of cost or estimated realizable value

Stock of Software - At lower of cost or estimated realizable value

The valuation of inventories has been made as per the requirements of Accounting Standard – 2, "Valuation of Inventories", prescribed under the Companies (Accounting Standards) Rules, 2006.

e) INVESTMENTS

Long Term Investments are stated at cost as per the requirements of Accounting Standard – 13, "Accounting for Investments", prescribed under the Companies (Accounting Standards) Rules, 2006. Decline in the value of long-term investments is recognized, if considered other than temporary. Current Investments are stated at lower of cost or market value.

f) PROVISION FOR RETIREMENT BENEFITS

i) Periodical contributions made to the concerned authorities towards Provident Fund and ESI are charged to Revenue on accrual basis.

ii) The Company operates three defined benefit plans for its employees, viz. Gratuity, Leave Encashment (Earned Leave) and Leave Encashment (Sick Leave). As per the requirements of Accounting Standard – 15, "Employee Benefits", prescribed under the Companies (Accounting Standards) Rules, 2006, the costs of providing benefits under these plans are determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for all the three defined benefit plans are recognized in full in the period in which they occur in the Statement of profit and loss. The liability under all three defined benefit plans is unfunded.

g) TAXATION

Income tax comprises current tax and deferred tax. Current tax is the amount of tax payable as determined in accordance with the provisions of the Income Tax Act, 1961. As per the requirements of Accounting Standard – 22, "Accounting for Taxes on Income", prescribed under the Companies (Accounting Standards) Rules, 2006, deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date. Minimum Alternative Tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT Credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which company recognizes MAT credit as an asset in accordance with "Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961", the said asset is created by way of credit to the statement of profit and loss and shown as " MAT Credit".

h) EXPENSES

The Company has charged all expenses on accrual basis of accounting.

i) INCOME

The Company has recognized all incomes on accrual basis of accounting as per the requirements of Accounting Standard – 9, "Revenue Recognition", prescribed under the Companies (Accounting Standards) Rules, 2006.

j) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rates prevailing on the dates of the transactions.

k) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The Impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable value.

l) BORROWING COSTS

Borrowing cost that is attributable to the acquisition or construction of a qualifying asset is capitalized as part of the cost of such asset and other borrowing costs are recognized as an expense in the period in which they are incurred. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

m) LEASE

Assets given under operating leases are included in fixed assets. Lease income is recognized in the Statement of Profit and Loss on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of profit and loss.

n) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

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

o) INTANGIBLE ASSETS

According to Accounting Standard – 26 on "Intangible Assets" prescribed under the Companies (Accounting Standards) Rules, 2006, in case of an expenditure incurred by the Company which may provide future economic benefits to the Company, however out of which, no intangible asset or other asset is acquired or created that can be recognized, the expenditure is recognized as an expense as and when it is incurred.

p) CASH FLOW STATEMENT

Cash Flows are reported using the indirect method as set out in the Accounting Standard - 3 on "Cash Flow Statement" prescribed under the Companies (Accounting Standards) Rules, 2006, whereby net profit before tax is adjusted for the effects of the transactions of non-cash nature and any deferrals or accruals of the past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

q) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents for the purpose of "Cash Flow Statement" comprise cash at bank and in hand and deposits with bank with an original maturity of three months or less.

r) EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted number of equity shares outstanding during the period. For the purpose of calculating of diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted number of equity shares outstanding during the period are adjusted for the effects of all potential dilutive equity shares.

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Mar 31, 2012

A) USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Difference between the actual results and estimates are reflected in the Financial Statements for the period in which the results are known / materialized.

b) FIXED ASSETS

Fixed Assets are stated at their original cost of acquisition or construction less accumulated depreciation (except land) and subsequent improvements thereto. Cost comprises of purchase price and all expenses directly attributable to the acquisition or construction of the asset. Expenses incurred related to project and prior to commencement of business, including financing costs are capitalized under Capital Work-in-Progress, which also includes material at site.

c) DEPRECIATION /AMORTIZATION

i) Depreciation has been provided on the value capitalized on the assets actually put to use during the current year, as per the Written down Value (WDV) Method at rates prescribed in Schedule XIV of the Companies Act, 1956.

ii) Depreciation is calculated on pro-rata basis from the date of acquisition and/or capitalization, as may be applicable.

iii) Assets costing individually Rs. 5,000/- (Rupees Five Thousand only) or less are depreciated fully in the year of purchase.

iv) Amortization has not been provided on the leasehold land.

d) INVENTORIES

Inventories have been valued as under:

Diesel - At lower of cost or estimated realizable value

Stock of Software - At lower of cost or estimated realizable value

The valuation of inventories has been made as per the requirements of Accounting Standard-2, "Valuation of Inventories", prescribed under the Companies (Accounting Standards) Rules, 2006.

e) INVESTMENTS

Long Term Investments are stated at cost as per the requirements of Accounting Standard – 13, "Accounting for Investments", prescribed under the Companies (Accounting Standards) Rules, 2006. Provision for diminution in the value of long-term investment is not made as the decline in the value of Investment is considered temporary by the management.

f) PROVISION FOR RETIREMENT BENEFITS

i) Periodical contributions made to the concerned authorities towards Provident Fund and ESI are charged to Revenue on accrual basis.

ii) The Company operates three defined benefit plans for its employees, viz. Gratuity, Leave Encashment (Earned Leave) and Leave Encashment (Sick Leave). As per the requirements of Accounting Standard – 15, "Employee Benefits", prescribed under the Companies (Accounting Standards) Rules, 2006, the costs of providing benefits under these plans are determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for the all (three) defined benefit plans are recognized in full in the period in which they occur in the Statement of profit and loss. The liability under all three defined plans is unfunded.

g) TAXATION

Income tax comprises current tax and deferred tax. Current tax is the amount of tax payable as determined in accordance with the provisions of the Income Tax Act, 1961. As per the requirements of Accounting Standard – 22, "Accounting for Taxes on Income", prescribed under the Companies (Accounting Standards) Rules, 2006, deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date. Minimum Alternative Tax (MAT) paid in a year is charged to the Statement of profit and loss as current tax. The Company recognizes MAT Credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which company recognizes MAT credit as an asset in accordance with "Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Ta x Act, 1961", the said asset is created by way of credit to the statement of profit and loss and shown as " MAT Credit".

h) EXPENSES

The Company has charged all expenses on accrual basis of accounting.

i) INCOME

The Company has recognized all incomes on accrual basis of accounting as per the requirements of Accounting Standard – 9, "Revenue Recognition", prescribed under the Companies (Accounting Standards) Rules, 2006.

j) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rates prevailing on the dates of the transactions.

k) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit & Loss in the year in which an asset is identified as impaired. The Impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable value.

l) BORROWING COSTS

Borrowing cost that is attributable to the acquisition or construction of a qualifying asset is capitalized as part of the cost of such asset and other borrowing costs are recognized as an expense in the period in which they are incurred. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

m) LEASE

Assets given under operating leases are included in fixed assets. Lease income is recognized in the Statement of Profit & Loss on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the Statement of profit & loss.

n) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

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

o) INTANGIBLE ASSETS

According to Accounting Standard – 26 on "Intangible Assets" prescribed under the Companies (Accounting Standards) Rules, 2006, in case of an expenditure incurred by the Company which may provide future economic benefits to the Company, however out of which, no intangible asset or other asset is acquired or created that can be recognized, the expenditure is recognized as an expense as and when it is incurred.

p) CASH FLOW STATEMENT

Cash Flows are reported using the indirect method as set out in the Accounting Standard - 3 on "Cash Flow Statement" prescribed under the Companies (Accounting Standards) Rules, 2006, whereby net profit before tax is adjusted for the effects of the transactions of non-cash nature and any deferrals or accruals of the past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

q) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents for the purpose of "Cash Flow Statement" comprise cash at bank and in hand and deposits with bank with an original maturity of three months or less.

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Mar 31, 2011

A) ACCOUNTING CONVENTION

The financial statements have been prepared under the historical cost convention, as applicable to a going concern and in accordance with generally accepted accounting principles in India, mandatory accounting standards and provisions of the Companies Act, 1956.

b) USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

c) FIXED ASSETS

Fixed Assets are stated at their original cost of acquisition or construction less accumulated depreciation (except land) and subsequent improvements thereto. Cost comprises of purchase price and all expenses directly attributable to the acquisition or construction of the asset. Expenses incurred related to project and prior to commencement of business, including financing costs are capitalized under Capital Work-in-Progress Account, which also includes material at site.

d) DEPRECIATION /AMORTIZATION

i) Depreciation has been provided on the value capitalized on the assets actually put to use during the current year, as per the Written Down Value Method at rates prescribed in Schedule XIV of the Companies Act, 1956.

ii) Depreciation is calculated on pro-rata basis from the date of acquisition and/or capitalization, as may be applicable.

iii) Assets costing individually Rs. 5,000/- (Rupees Five Thousand only) or less are depreciated fully in the year of purchase.

iv) Amortization has not been provided on the leasehold land.

e) INVENTORIES

Inventories have been valued as under:

Diesel - At lower of cost or estimated realizable value

Stock of Software - At lower of cost or estimated realizable value

The valuation of inventories has been made as per the requirements of Accounting Standard - 2, "Valuation of Inventories", prescribed under the Companies (Accounting Standards) Rules, 2006.

f) INVESTMENTS

Long Term Investments are stated at cost as per the requirements of Accounting Standard - 13, "Accounting for Investments", prescribed under the Companies (Accounting Standards) Rules, 2006. Provision for diminution in the value of long-term investment is not made as the decline in the value of Investment is considered temporary by the management.

g) PROVISION FOR RETIREMENT BENEFITS

i) Periodical contributions made to the concerned authorities towards Provident Fund and ESI are charged to Revenue on accrual basis.

ii) Long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of long term benefits are charged to the Profit and Loss account. The liability is unfunded.

h) TAXATION

Income tax comprises current tax and deferred tax. Current tax is the amount of tax payable as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date.

i) EXPENSES

The Company has charged all expenses on accrual basis of accounting.

j) INCOME

The Company has recognized all incomes on accrual basis of accounting as per the requirements of Accounting Standard - 9, "Revenue Recognition", prescribed under the Companies (Accounting Standards) Rules, 2006.

k) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rates prevailing on the dates of the transactions.

l) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Profit & Loss Account in the year in which an asset is identified as impaired.

m) BORROWING COSTS

Borrowing cost that is attributable to the acquisition or construction of a qualifying asset is capitalised as part of the cost of such asset and other borrowing costs are recognized as an expense in the period in which they are incurred. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

n) LEASE

Assets given under operating leases are included in fixed assets. Lease income is recognized in the Profit & Loss Account on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the profit & loss account.

o) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

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

p) INTANGIBLE ASSETS

According to Accounting Standard - 26 on "Intangible Assets" prescribed under the Companies (Accounting Standards) Rules, 2006, in case of an expenditure incurred by the Company which may provide future economic benefits to the Company, however out of which, no intangible asset or other asset is acquired or created which can be recognized, the expenditure is recognized as an expense as and when it is incurred.

q) CASH FLOW STATEMENT

Cash Flows are reported using the indirect method as set out in the Accounting Standard - 3 on "Cash Flow Statement" prescribed under the Companies (Accounting Standards) Rules, 2006, whereby net profit before tax is adjusted for the effects of the transactions of non cash nature and any deferrals or accruals of the past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.