revision to an existing accounting standard
requires a change in the accounting policy
hitherto in use.

All amounts disclosed in the financial
statements are denominated in Indian
Rupees (“Rupees” or “I” or “INR”) and have
been rounded off to the nearest lakhs, unless
otherwise stated. Per share data is presented
without such rounding unless specified.

1.3.2. Fair Value Measurement

The Company measures certain financial
instruments (e.g. investments) at fair value at
each balance sheet date.

Fair value is the price that would be received
to sell an asset or paid to transfer a liability
in an orderly transaction between market
participants at the measurement date.

The fair value measurement is based on the
presumption that the transaction to sell the
asset or transfer the liabilities takes place
either in the principal market for the asset or
liability or in absence of principal market, in
the most advantageous market for the asset
or liability.

A fair value measurement of a non-financial
asset takes into account a market participant’s
ability to generate economic benefits by
using the asset in its highest and best use
or by selling it to another market participant
that would use the asset in its highest and
best use.

The Company uses valuation techniques
that are appropriate in the circumstances
and for which sufficient data are available
to measure fair value, maximising the use of
relevant observable inputs and minimising
the use of unobservable inputs.

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

Level 1- Quoted (Unadjusted) marked prices
in the active markets for identical assets
or liabilities

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

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

For assets and liabilities that are recognised in
the financial statements on a recurring basis,
the Company determines whether transfers
have occurred between levels in the hierarchy
by reassessing categorisation (based on the
lowest level input that is significant to the fair
value measurement as a whole) at the end of
each reporting period.

At each reporting date, the management
analyses the movements in the values 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 or its expert
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.

1.3.3. Current and Non-Current Classification

The Company presents assets and liabilities
in the Balance Sheet based on Current /Non-
Current classification.

An asset is treated as Current when it is -

• Expected to be realised or intended
to be sold or consumed in normal
operating cycle;

• Held primarily for the purpose of trading;

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

• Cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after
the reporting period.

All other assets are classified as non-current.
A liability is current when:

• It is expected to be settled in normal
operating cycle;

• It is held primarily for the purpose
of trading;

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

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

The Company classifies all other liabilities as non¬
current.

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

1.3.4. Property, Plant and Equipment

(a) Tangible Assets

Property, Plant and Equipment are stated at
cost, net of recoverable taxes, trade discounts
and rebates, less accumulated depreciation and
impairment losses, if any. The cost of an item
of Property, Plant and Equipment comprises
its purchase price, borrowing costs, including
exchange differences to the extent regarded
as an adjustment to borrowing costs, and any
costs directly attributable to bringing the asset
to its location and condition necessary for it to be
capable of operating in the manner intended by
management, including net charges on foreign
exchange contracts and adjustments arising
from exchange rate variations attributable to the
asset. Costs directly attributable to acquisition
are capitalised until the property, plant and
equipment are ready for their intended use.

Subsequent expenditure is capitalised in the
carrying amount of the asset or recognised
as a separate asset, 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. When significant parts of
an item of Property, Plant and Equipment have
different useful lives, such components are
accounted for separately. The carrying amount
of any component accounted for as a separate
asset is derecognised when replaced. All other
repairs and maintenance costs are recognised
in the Statement of Profit and Loss as and
when incurred.

Depreciation is provided using the written down
value method based on technical evaluation
done by the management and charged to
statement of profit and loss, unless such
expenditure forms part of carrying value of
another asset, as per the useful life prescribed
under schedule II of the Companies Act, 2013,
given below

Property, Plant and Equipment which are
significant to the total cost of that item of
Property, Plant and Equipment and having
different useful life are accounted separately.

Other Indirect Expenses incurred relating to
project, net of income earned during the project
development stage prior to its intended use,
are considered as pre-operative expenses and
disclosed under Capital Work-in-Progress.

The residual values, useful lives and methods of
depreciation of Property, Plant and Equipment
are reviewed at each financial year end and
adjusted prospectively, if appropriate.

Depreciation on property, plant and equipment
is provided using the Written Down Value
(WDV) method over the estimated useful lives of
the respective assets. The useful lives of assets
are based on those prescribed under Schedule
II to the Companies Act, 2013. Depreciation is
recognized in the Statement of Profit and Loss
unless it is included in the carrying amount
of another asset in accordance with the
requirements of applicable Indian Accounting
Standards. Assets individually costing ^5,000
or less are fully depreciated in the year in which
they are available for use.

Leasehold improvements are depreciated
over the period of the lease or life of the asset
whichever is less.

Intangible assets acquired separately are
initially recognized at cost. Subsequent to
initial recognition, intangible assets are carried
at cost less accumulated amortisation and
accumulated impairment losses, if any.

Intangible assets with finite useful lives are
amortised on a systematic basis over their
estimated useful lives using the Written Down
Value (WDV) method. The estimated useful lives
of the Group’s intangible assets are as follows:

Amortisation commences when the asset
is available for use, that is, when it is in the
location and condition necessary for it to be
capable of operating in the manner intended
by management. Amortisation is recognised
in the Statement of Profit and Loss unless it
is included in the carrying amount of another
asset in accordance with applicable Indian
Accounting Standards.

The useful lives, residual values and
amortisation methods of intangible assets are
reviewed at least at each reporting date and
adjusted prospectively, where appropriate.
Intangible assets are assessed for impairment
whenever there is an indication that the asset
may be impaired and impairment losses, if any,
are recognised in accordance with the Group’s
impairment policy.

Derecognition

Gains or losses arising from derecognition of a
Property, Plant and Equipment are measured
as the difference between the net disposal
proceeds and the carrying amount of the asset
and are recognised in the Statement of Profit
and Loss when the asset is derecognised.

(b) Intangible assets under Development

Cost of Property, Plant and Equipment not
ready for intended use, as on the balance sheet
date, is shown as a "Capital Work-in-Progress”.
The Capital Work-in-Progress is stated at
cost. Any expenditure in relation to survey and
investigation of the properties is carried as
Capital Work-in-Progress. Such expenditure
is either capitalized as cost of the projects on
completion of construction project or the same
is expensed in the period in which it is decided
to abandon such project. Any advance given
towards acquisition of Property, Plants and
Equipment outstanding at each balance sheet
date is disclosed as "Non - Current Assets”.

Expenditure on internally generated intangible
assets is capitalised when it is probable that
future economic benefits attributable to

the asset will flow to the Company and the
cost of the asset can be measured reliably.
Capitalised costs include directly attributable
expenses incurred in developing the asset for its
intended use.

Intangible assets under development are carried
at cost less impairment losses, if any, and are
not amortised until they are available for use.
Upon completion, the asset is transferred to
the appropriate category of intangible assets
and amortised over its estimated useful life.
Intangible assets under development are tested
for impairment annually and whenever there is
an indication of impairment.

(c) Intangible Assets

Intangible Assets are stated at cost of acquisition
net of recoverable taxes, trade discount and
rebates less accumulated amortisation/
depletion and impairment losses, if any. Such
cost includes purchase price, borrowing costs,
and any cost directly attributable to bringing the
asset to its working condition for the intended
use, net charges on foreign exchange contracts
and adjustments arising from exchange rate
variations attributable to the Intangible Assets.

Subsequent costs are included in the asset’s
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with
the item will flow to the entity and the cost can
be measured reliably.

Amortization

The amortization expenses on Intangible
assets with the finite lives are recognized in the
Statement of Profit and Loss. The Company’s
intangible assets comprises assets with finite
useful life which are amortised on a straight¬
line basis over the period of their expected
useful life.

The amortization period and the amortization
method for an intangible asset with finite useful
life is reviewed at each financial year end and
adjusted prospectively, if appropriate.

Derecognition

Gains or losses arising from derecognition
of an Intangible Asset are measured as the
difference between the net disposal proceeds
and the carrying amount of the asset and are
recognised in the Statement of Profit and Loss
when the asset is derecognised.

1.3.5. Impairment of Non-Financial Assets
- Property, Plant and Equipment and
Intangible Assets

The Company assesses at each reporting date
as to whether there is any indication that any
Property, Plant and Equipment and Intangible
Assets or group of Assets, called Cash
Generating Units (CGU) may be impaired. If
any such indication exists, the recoverable
amount of an asset or CGU is estimated
to determine the extent of impairment, if
any. When it is not possible to estimate the
recoverable amount of an individual asset, the
Company estimates the recoverable amount
of the CGU to which the asset belongs.

An impairment loss is recognised in the
Statement of Profit and Loss to the extent,
asset’s carrying amount exceeds its
recoverable amount. The recoverable amount
is higher of an asset’s fair value less cost
of disposal and value in use. Value in use is
based on the estimated future cash flows,
discounted to their present value using pre¬
tax discount rate that reflects current market
assessments of the time value of money and
risk specific to the assets.

The impairment loss recognised in prior
accounting period is reversed if there
has been a change in the estimate of
recoverable amount.

There are no losses from impairment of assets
to be recognized in the financial statements.

1.3.6. Lease

(a) The Company as a Lessee

The Company’s lease asset classes
primarily consist of leases for office
premises. The Company assesses whether
a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease
if the contract conveys the right to control
the use of an identified asset for a period
of time in exchange for consideration. To
assess whether a contract conveys the
right to control the use of an identified
asset, the Company assesses whether:

(i) the contract involves the use of an
identified asset;

(ii) the Company has substantially all
of the economic benefits from use of

the asset through the period of the
lease and

(iii) the Company has the right to direct
the use of the asset.

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

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

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

Right-of-use assets are depreciated from
the commencement date on a straight-line
basis over the shorter of the lease term
and useful life of the underlying asset.
Right of use assets are evaluated for
recoverability whenever events or changes
in circumstances indicate that their
carrying amounts may not be recoverable.
For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the
fair value less cost to sell and the value-in¬
use) is determined on an individual asset
basis unless the asset does not generate
cash flows that are largely independent of
those from other assets. In such cases, the
recoverable amount is determined for the
Cash Generating Unit (CGU) to which the
asset belongs.

The lease liability is initially measured
at amortized cost at the present value
of the future lease payments. The lease
payments are discounted using the

interest rate implicit in the lease or,
if not readily determinable, using the
incremental borrowing rates in the country
of domicile of these leases. Lease liabilities
are remeasured with a corresponding
adjustment to the related right of use asset
if the Company changes its assessment if
whether it will exercise an extension or a
termination option.

Lease liability and ROU asset have been
separately presented in the standalone
balance sheet and lease payments have
been classified as financing cash flows.

(b) The Company as a Lessor

Leases for which the Company is a lessor is
classified as a finance or operating lease.
Whenever the terms of the lease transfer
substantially all the risks and rewards
of ownership to the lessee, the contract
is classified as a finance lease. All other
leases are classified as operating leases.

For operating leases, rental income is
recognized on a straight-line basis over the
term of the relevant lease.

1.3.7. Investment Properties

Items of investment properties are measured
at cost less accumulated depreciation/
amortization and accumulated impairment
losses. Cost includes expenditure that is
directly attributable to bringing the asset to
the location and condition necessary for its
intended use. Depreciation on investment
property is calculated using the straight¬
line method to write down the cost of
property and equipment to their residual
values over their estimated useful lives in
the manner prescribed in Schedule II of the
Act. Subsequent expenditure is capitalised
to the asset’s carrying amount only when it
is probable that future economic benefits
associated with the expenditure will flow
to the group and the cost of the item can be
measured reliably.

1.3.8. Borrowing Costs

Borrowing costs include exchange differences
arising from foreign currency borrowings to
the extent they are regarded as an adjustment
to the interest cost. Borrowing costs that
are directly attributable to the acquisition
or construction of qualifying assets are

extent that the pre-payment will lead
to a reduction in future payment or a
cash refund.

(ii) Defined Benefit Plans

Gratuity Scheme: The Company
pays gratuity to the employees
who have completed five years
of service with the Company
at the time of resignation/
superannuation. The gratuity
is paid @ 15 days basic salary
and dearness allowances for
every completed year of service
as per the New Wage code. The
liability in respect of gratuity and
other post-employment benefits
is calculated using the Projected
Unit Credit Method and spread
over the period during which the
benefit is expected to be derived
from employees’ services.

Remeasurement gains and losses
arising from adjustments and
changes in actuarial assumptions
are recognised in the period
in which they occur in Other
Comprehensive Income.

(iii) Other Long - Term Employee Benefits

Entitlement to annual leave is
recognized when they accrue
to employees.

1.3.10.Revenue Recognition

Revenue is recognised upon transfer of control
of promised services to customers in an
amount that reflects the consideration which
the company expects to receive in exchange
for those services. Revenues from customer
contracts are considered for recognition and
measurement when the contract has been
approved by the parties to the contract,
the parties to the contract are committed
to perform their respective obligations,
each party’s rights and obligations and the
payment terms can be identified, the contract
has commercial substance and it is probable
that the entity will collect the consideration
to which it is entitled to in exchange for
the services that will be transferred to
the customer.

The company assesses the services
promised in a contract and identifies distinct
performance obligations in the contract.

Revenue is measured based on the
consideration specified in a contract with a
customer and excludes amounts collected
on behalf of third parties. The company’s
contracts may include variable consideration
including rebates, volume discounts and
penalties. The Company includes variable
consideration as part of transaction price
when there is a basis to reasonably estimate
the amount of the variable consideration and
when it is probable that a significant reversal
of cumulative revenue recognized will not
occur when the uncertainty associated with
the variable consideration is resolved.

The Company allocates the transaction price
to each distinct performance obligation
based on the relative standalone selling
price. Revenue from contracts which are
on time and material basis are recognized
when services are rendered, and related
costs are incurred. Revenue from fixed-
price contracts where the performance
obligations are satisfied over time and where
there is no uncertainty as to measurement or
collectability of consideration, is recognized
as per the percentage-of-completion
method. Use of the percentage of completion
method requires the Company to estimate
the efforts or cost expended to date (input
method) as a proportion of the total efforts
or costs to be expended. The cost & efforts
expended (or input) method has been used
to measure progress towards completion
as there is a direct relationship between
input and productivity. Estimates of total
costs or efforts are continuously monitored
over the term of the contracts and are
recognized in the net profit prospectively in
the period when these estimates change or
when the estimates are revised. Provisions
for estimated losses, if any, on incomplete
contracts are recorded in the period in which
such losses become probable based on
the estimated efforts or costs to complete
the contract.

Unbilled revenue represents the Company’s
right to consideration for goods or services
transferred to customers for which billing
has not been completed as at the reporting
date. Unbilled revenue is recognized when
the Company has satisfied its performance
obligations and the amount of revenue can
be measured reliably in accordance with the
terms of the underlying contracts.

Unbilled revenue is measured based on the
value of services rendered or performance
obligations satisfied up to the reporting date,
less amounts invoiced, and is disclosed as
a contract asset. Amounts are reclassified
to trade receivables when the right to
consideration becomes unconditional.

The company presents revenue net of
discounts, indirect taxes and value-added
taxes in its statement of profit and loss
Contracts assets are recognised when there
is excess of revenue earned over billings on
contracts. Contract assets are classified as
unbilled revenue when there is unconditional
right to receive cash, and only passage of
time is required, as per contractual terms.
Contract liability ("Unearned revenue”) arises
when there are billing in excess of revenue.

i) Export Incentives

Export incentive revenues are
recognized when the right to receive
the credit is established and there is no
significant uncertainty regarding the
ultimate collection.

ii) Interest Income

Interest income on a financial asset at
amortised cost is recognised on a time
proportion basis taking into account the
amount outstanding and the effective
interest rate (‘EIR’). The EIR is the rate
that exactly discounts estimated future
cash flows of the financial assets through
the expected life of the financial asset or,
where appropriate, a shorter period, to
the net carrying amount of the financial
instrument. The internal rate of return on
financial assets after netting off the fees
received and cost incurred approximates
the effective interest rate method of return
for the financial asset. The future cash
flows are estimated taking into account all
the contractual terms of the instrument.

iii) Dividend Income

Dividend income is recognized in the
Statement of profit and loss on the date that
the Company’s right to receive payment is

established, it is probable that the economic
benefits associated with the dividend
will flow to the entity and the amount of
dividend can be reliably measured. This is
generally when the shareholders approve
the dividend.

iv) Other Income

Other items of income are accounted as
and when the right to receive arises and
it is probable that the economic benefits
will flow to the Company and the amount
of income can be measured reliably. Such
income is recognized on a time proportion
or contractual basis, as applicable, and is
recorded in the Statement of Profit and Loss
in the period in which it is earned. Where
there is significant uncertainty regarding
ultimate collection, recognition of such
income is deferred until the uncertainty is
resolved or the income is realized.

v) Surplus/(Loss) on disposal of Property,
Plants and Equipment/Investments

Surplus or loss on disposal of property,
plants and equipment or investment is
recorded on transfers of title from the
Company, and is determined as the
difference between the sales price and
carrying value of the property, plants
and equipment or investments and other
incidental expenses.

vi) Insurance Claim

Claim receivable on account of insurance
is accounted for to the extent the
Company is reasonably certain of their
ultimate collections.

vii) Income from Sale of Products

Revenue from the sale of products is
recognised when control of the products is
transferred to the customer, which generally
occurs upon delivery and acceptance of the
products, in accordance with the terms of
the contract. Revenue is measured at the
transaction price net of discounts, rebates,
returns, goods and services tax (GST) and
other similar levies collected on behalf of
third parties.

1.3.11. Foreign Currency Transactions and
Translation

Transactions in foreign currencies are
recorded at the exchange rate prevailing
on the date of transaction. Monetary assets
and liabilities denominated in foreign
currencies are translated at the functional
currency closing rates of exchange at
the reporting date. Exchange differences
arising on settlement or translation
of monetary items are recognised in
Statement of Profit and Loss except to the
extent of exchange differences which are
regarded as an adjustment to interest costs
on foreign currency borrowings that are
directly attributable to the acquisition or
construction of qualifying assets which are
capitalised as cost of assets.

Non-monetary items that are measured in
terms of historical cost in a foreign currency
are recorded using the exchange rates at the
date of the transaction. Non-monetary items
measured at fair value in a foreign currency
are translated using the exchange rates at
the date when the fair value was measured.
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 recognised in
Other Comprehensive Income or Statement
of Profit and Loss are also recognised in
Other Comprehensive Income or Statement
of Profit and Loss, respectively).

1.3.12. Financial Instruments - Financial Assets

(a) Initial Recognition and Measurement

All Financial Assets are initially recognised
at fair value. Transaction costs that are
directly attributable to the acquisition
or issue of Financial Assets, which are
not at Fair Value Through Profit or Loss,
are adjusted to the fair value on initial
recognition. Purchase and sale of Financial
Assets are recognised using trade
date accounting.

(b) Subsequent Measurement

a) Financial Assets measured at
Amortised Cost (AC)

A Financial Asset is measured at
Amortised Cost if it is held within a

business model whose objective is
to hold the asset in order to collect
contractual cash flows and the
contractual terms of the Financial
Asset give rise to cash flows on
specified dates that represent solely
payments of principal and interest on
the principal amount outstanding.

b) Financial Assets measured at Fair
Value Through Other Comprehensive
Income (FVTOCI)

A Financial Asset is measured at
FVTOCI if it is held within a business
model whose objective is achieved
by both collecting contractual cash
flows and selling Financial Assets and
the contractual terms of the Financial
Asset give rise on specified dates
to cash flows that represents solely
payments of principal and interest on
the principal amount outstanding.

c) Financial Assets measured at Fair
Value Through Profit or Loss (FVTPL)

A Financial Asset which is not
classified in any of the above
categories is measured at FVTPL.
Financial assets are reclassified
subsequent to their recognition, if the
Company changes its business model
for managing those financial assets.
Changes in business model are made
and applied prospectively from the
reclassification date which is the first
day of immediately next reporting
period following the changes in
business model in accordance with
principles laid down under Ind AS 109
- Financial Instruments.

(c) Investments

Investments are classified in to Current or
Non-Current Investments. Investments
that are readily realizable and intended to
be held for not more than a year from the
date of acquisition are classified as Current
Investments. All other Investments are
classified as Non - Current Investments.
However, that part of Non - Current
Investments which are expected to be
realized within twelve months from the
Balance Sheet date is also presented under
"Current Investments” under "Current
portion of Non-Current Investments” in

consonance with Current/Non-Current
classification of Schedule - III of the Act.

All the equity investment which covered
under the scope of Ind AS 109, "Financial
Instruments” is measured at the fair value.
Investment in Mutual Fund is measured at
fair value through profit and loss (FVTPL).
Trading Instruments are measured at fair
value through profit and loss (FVTPL).

(d) Investment in Subsidiaries, Associates
and Joint Ventures

The Company has accounted for its
investments in Subsidiaries, associates
and joint venture at cost less impairment
loss (if any).

(e) Impairment of Financial Assets

In accordance with Ind AS 109, the
Company uses ‘Expected Credit Loss’
(ECL) model, for evaluating impairment
of Financial Assets other than those
measured at Fair Value Through Profit and
Loss (FVTPL).

1.3.13. Financial Instruments - Financial
Liabilities

(a) Initial Recognition and Measurement

All Financial Liabilities are recognised
at fair value and in case of borrowings,
net of directly attributable cost.
Fees of recurring nature are directly
recognised in the Statement of Profit
and Loss as finance cost.

(b) Subsequent Measurement

Financial Liabilities are carried at
amortised cost using the effective
interest method. For trade and other
payables maturing within one year
from the balance sheet date, the
carrying amounts approximate fair
value due to the short maturity of
these instruments.

1.3.14. Share-based payments

The Company operates equity-settled
share-based payment arrangements
under its Employee Stock Option Scheme
("ESOS”), whereby employees are granted
options to subscribe to equity shares of
the Company subject to the satisfaction of
specified vesting conditions.

The fair value of options granted is
determined at the grant date and
recognized as an employee benefits
expense, with a corresponding increase
in equity, over the vesting period. The
total expense is determined by reference
to the grant date fair value of the options
granted and excludes the impact of non¬
vesting conditions.

The expense is recognized over the period
during which the employees become
unconditionally entitled to the options. At
each reporting date, the Company revises
its estimates of the number of options
expected to vest based on the assessment
of service and other non-market vesting
conditions. The impact of any revision
to the original estimates is recognized in
the Statement of Profit and Loss, with a
corresponding adjustment to equity.

Upon exercise of the options, the proceeds
received, together with the amount
previously recognized in the share-based
payment reserve relating to those options,
are transferred to share capital and
securities premium, as applicable.

1.3.15. Derecognition of Financial Instruments

The Company derecognises a Financial
Asset when the contractual rights to the
cash flows from the Financial Asset expire
or it transfers the Financial Asset and the
transfer qualifies for derecognition under
Ind AS 109. A Financial liability (or a part
of a financial liability) is derecognised
from the Company’s Balance Sheet when
the obligation specified in the contract is
discharged or cancelled or expires.

1.3.16. Financial Instruments - Offsetting

Financial Assets and Financial Liabilities are
offset and the net amount is presented in
the balance sheet when, and only when, the
Company has a legally enforceable right to
set off the amount and it intends, either to
settle them on a net basis or to realise the
asset and settle the liability simultaneously.

1.3.17. Taxes on Income

The income tax expense or credit for the
period is the tax payable on the current
period’s taxable income based on the
applicable income tax rate adjusted by

changes in deferred tax assets and liabilities
attributable to temporary differences and to
unused tax losses. Current and deferred tax
is recognized in Statement of profit and loss,
except to the extent that it relates to items
recognized in other comprehensive income
or directly in equity. In this case, the tax is
also recognized in other comprehensive
income or directly in equity, respectively.

(a) Current Tax

Current tax is measured at the amount
of tax expected to be payable on
the taxable income for the year as
determined in accordance with the
provisions of the Income Tax Act,
1961. Current tax assets and current
tax liabilities are off set when there is
a legally enforceable right to set off
the recognized amounts and there is
an intention to settle the asset and the
liability on a net basis.

(b) Deferred Tax

Deferred tax is provided in full, using
the liability method, on temporary
differences arising between the tax
bases of assets and liabilities and
their carrying amounts in the financial
statements. However, deferred tax
liabilities are not recognized if they
arise from the initial recognition of
goodwill. Deferred tax is determined
using tax rates (and laws) that have
been enacted or substantially enacted
by the end of the reporting period
and are expected to apply when the
related deferred income tax asset is
realized or the deferred income tax
liability is settled.

Deferred tax assets are recognized for
all deductible temporary differences
and unused tax losses only if it is
probable that future taxable amounts
will be available to utilize those
temporary differences and losses.

Deferred tax assets and liabilities are offset
when there is a legally enforceable right to
offset current tax assets and liabilities and
when the deferred tax balances relate to
the same taxation authority.

1.3.18. Segment Reporting

Based on the nature of its business and
the manner in which the Chief Operating
Decision Maker (CODM) reviews the
Company’s operations and allocates
resources, the Company operates in a
single operating segment. Accordingly, the
disclosure requirements of Ind AS 108 -
Operating Segments are not applicable to
the Company.

1.3.19. Earnings per Share

Basic earnings per share is calculated
by dividing the net profit for the period
(excluding other comprehensive income)
attributable to equity share-holders of the
Company by the weighted average number
of equity shares outstanding during the
financial year, adjusted for bonus element
in equity shares issued during the year.

Diluted earnings per share is computed
by dividing the net profit for the period
attributable to equity shareholders by
the weighted average number of shares
outstanding during the period as adjusted
for the effects of all diluted potential equity
shares except where the results are anti¬
dilutive.

nSSEH Significant Accounting Policies

1.1 Company Overview:

Network People Services Technologies Ltd. (''the
Company’) is a limited Company domiciled and
incorporated in India. The registered office of the
Company is located at Office No. 427/428/429, A Wing,
NSIL, Lodha Supremus II Road No 22, Wagle Industrial
Estate, Thane, Maharashtra-400604.

The Company carry on the business of software
designing, data processing, warehousing, and
consultancy services, development, customization,
implementation, testing, maintenance, and
benchmarking of computer software and IT solutions,
including import, export, sale, distribution, licensing,
hosting, and support services.

1.2 General Information & Statement of Compliance with
Ind AS:

These financial statements are the separate financial
statements of the Company (also called as standalone
financial statements) prepared in accordance with
Indian Accounting Standard ("Ind AS") notified under
the Companies Act, 2013 ("the Act") read with Rule
3 of the Companies (Indian Accounting Standards)
Rules,2015, as amended.

1.3 Significant Accounting Policies:

1.3.1. Basis of Preparation and Presentation

The Financial Statements have been prepared
on the historical cost basis except for following
assets and liabilities which have been measured
at fair value amount:

(a) Certain Financial Assets and Liabilities
(including derivative instruments if any), and

(b) Defined Benefit Plans - Plan Assets.

The financial statements of the Company
have been prepared to comply with the Indian
Accounting standards (''Ind AS’), including the
rules notified under the relevant provisions of the
Companies Act, 2013.

Upto the year end 31 March, 2024, the Company
has prepared its financial statements in
accordance with the requirement of Indian
Generally Accepted Accounting Principles (GAAP),
which includes Standards notified under the
Companies (Accounting Standards) Rules, 2006
and considered as "Previous GAAP".

The Company has adopted Ind AS with effect from
01 April, 2023, with comparatives being restated.
Accordingly, the impact of transition has been

provided in the Opening Reserves as at 01 April,
2022. The figures for the previous period have been
restated, regrouped and reclassified wherever
required to comply with the requirement of Ind AS
and Schedule III. These financial statements are
the Company’s first Ind AS standalone financial
statements. The Company’s Financial Statements
are presented in Indian Rupees, which is also its
functional currency.

1.3.2. Fair Value Measurement

Some of the Company’s accounting policies
and disclosures require the measurement of fair
values, for both financial and non-financial assets
and liabilities.

The Company has an established control
framework with respect to the measurement of
fair values. This includes a financial reporting
team that has overall responsibility for overseeing
all significant fair value measurements, including
Level 3 fair values.

The financial reporting team regularly reviews
significant unobservable inputs and valuation
adjustments. If third party information, such as
pricing services, is used to measure fair values,
then the financial reporting team assesses
the evidence obtained from the third parties to
support the conclusion that these valuations meet
the requirements of Ind AS, including the level in
the fair value hierarchy in which the valuations
should be classified.

Fair values are categorized into different levels in
a fair value hierarchy based on the inputs used in
the valuation techniques as follows.

Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included
in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices).

Level 3: inputs for the asset or liability that are not
based on observable market data (unobservable
inputs).

When measuring the fair value of an asset or a liability,
the Company uses observable market data as far as
possible. If the inputs used to measure the fair value
of an asset or a liability fall into different levels of the
fair value hierarchy, then the fair value measurement
is categorized in its entirety in the same level of the
fair value hierarchy as the lowest level input that is
significant to the entire measurement.

The Company recognizes transfers between
levels of the fair value hierarchy at the end of the
reporting period during which the change has
occurred.

1.3.3. Current and Non-Current Classification

The Company presents assets and liabilities in
the Balance Sheet based on Current/Non- Current
classification.

An asset is treated as Current when it is -

- Expected to be realized or intended to be sold
or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months
after the reporting period, or

- Cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating
cycle;

- It is held primarily for the purpose of trading;

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

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

The Company classifies all other liabilities as non¬
current.

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

1.3.4. Property, Plant and Equipment

(a) Tangible Assets

Property, Plant and Equipment are stated at
cost, net of recoverable taxes, trade discount
and rebates less accumulated depreciation
and impairment losses, if any. Such cost
includes purchase price, borrowing cost
and any cost directly attributable to bringing
the assets to its working condition for
its intended use, net charges on foreign
exchange contracts and adjustments arising
from exchange rate variations attributable to
the assets.

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 entity and the
cost can be measured reliably.

Property, Plant and Equipment which are
significant to the total cost of that item of
Property, Plant and Equipment and having
different useful life are accounted separately.
Other Indirect Expenses incurred relating
to project, net of income earned during
the project development stage prior to its
intended use, are considered as pre-operative
expenses and disclosed under Capital Work-
in-Progress.

The residual values, useful lives and methods
of depreciation of Property, Plant and
Equipment are reviewed at each financial
year end and adjusted prospectively, if
appropriate.

Derecognition

Gains or losses arising from derecognition
of a Property, Plant and Equipment are
measured as the difference between the net
disposal proceeds and the carrying amount
of the asset and are recognized in the
Statement of Profit and Loss when the asset
is derecognized.

(b) Capital Work-in-Progress and Capital
Advances

Cost of Property, Plant and Equipment not
ready for intended use, as on the balance
sheet date, is shown as a "Capital Work-in¬
Progress". The Capital Work-in-Progress is
stated at cost. Any expenditure in relation to
survey and investigation of the properties is
carried as Capital Work-in-Progress. Such
expenditure is either capitalized as cost of
the projects on completion of construction
project or the same is expensed in the period
in which it is decided to abandon such project.
Any advance given towards acquisition of
Property, Plants and Equipment outstanding
at each balance sheet date is disclosed as
"Other Current Assets".

(c) Intangible Assets

Intangible Assets are stated at cost of
acquisition net of recoverable taxes, trade
discount and rebates less accumulated
amortization/depletion and impairment

losses, if any. Such cost includes purchase
price, borrowing costs, and any cost directly
attributable to bringing the asset to its
working condition for the intended use, net
charges on foreign exchange contracts
and adjustments arising from exchange
rate variations attributable to the Intangible
Assets.

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 entity and the
cost can be measured reliably.

Amortization

The amortization expenses on Intangible
assets with the finite lives are recognized
in the Statement of Profit and Loss. The
Company’s intangible assets comprises
assets with finite useful life which are
amortized on a straight-line basis over the
period of their expected useful life.

The amortization period and the amortization
method for an intangible asset with finite
useful life is reviewed at each financial
year end and adjusted prospectively, if
appropriate.

Derecognition

Gains or losses arising from derecognition
of an Intangible Asset are measured as the
difference between the net disposal proceeds
and the carrying amount of the asset and are
recognized in the Statement of Profit and
Loss when the asset is derecognized.

1.3.5. Impairment of Non-Financial Assets - Property,
Plant and Equipment and Intangible Assets

The Company assesses at each reporting date
as to whether there is any indication that any
Property, Plant and Equipment and Intangible
Assets or group of Assets, called Cash Generating
Units (CGU) may be impaired. If any such
indication exists, the recoverable amount of an
asset or CGU is estimated to determine the extent
of impairment, if any. When it is not possible to
estimate the recoverable amount of an individual
asset, the Company estimates the recoverable
amount of the CGU to which the asset belongs.

An impairment loss is recognized in the Statement
of Profit and Loss to the extent, asset’s carrying
amount exceeds its recoverable amount. The
recoverable amount is higher of an asset’s fair
value less cost of disposal and value in use. Value
in use is based on the estimated future cash
flows, discounted to their present value using
pre-tax discount rate that reflects current market
assessments of the time value of money and risk
specific to the assets.

The impairment loss recognized in prior
accounting period is reversed if there has been a
change in the estimate of recoverable amount.
There are no losses from impairment of assets to
be recognized in the financial statements.

1.3.6. Lease

(a) The Company as a Lessee

The Company, as a lessee, recognizes a
right- of-use asset and a lease liability for
its leasing arrangements, if the contract
conveys the right to control the use of an
identified asset.

The contract conveys the right to control the
use of an identified asset, if it involves the
use of an identified asset and the Company
has substantially all of the economic benefits
from use of the asset and has right to direct
the use of the identified asset. The cost of
the right-of- use asset shall comprise of the
amount of the initial measurement of the
lease liability adjusted for any lease payments
made at or before the commencement date
plus any initial direct costs incurred. The right-
of-use assets is subsequently measured
at cost less any accumulated depreciation,
accumulated impairment losses, if any,
and adjusted for any remeasurement of the
lease liability. The right-of-use assets are
depreciated using the straight-line method
from the commencement date over the
shorter of lease term or useful life of right-of-
use asset.

The Company measures the lease liability at
the present value of the lease payments that
are not paid at the commencement date of
the lease. The lease payments are discounted
using the interest rate implicit in the lease,
if that rate can be readily determined. If
that rate cannot be readily determined, the
Company uses incremental borrowing rate.

(b) The Company as a Lessor

Leases for which the Company is a lessor
is classified as a finance or operating lease.
Whenever the terms of the lease transfer
substantially all the risks and rewards of
ownership to the lessee, the contract is
classified as a finance lease. All other leases
are classified as operating leases.

For operating leases, rental income is
recognized on a straight-line basis over the
term of the relevant lease.

1.3.7. Investment Properties

Items of investment properties are measured at
cost less accumulated depreciation/amortization
and accumulated impairment losses. Cost
includes expenditure that is directly attributable
to bringing the asset to the location and condition
necessary for its intended use. Investment
properties are depreciated on straight line method
on pro-rata basis at the rates specified therein.
Subsequent expenditure including cost of major
overhaul and inspection is recognized as an
increase in the carrying amount of the asset
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.

1.3.8. Borrowing Costs

Borrowing costs include exchange differences
arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the
interest cost. Borrowing costs that are directly
attributable to the acquisition or construction of
qualifying assets are capitalized as part of the
cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get
ready for its intended use.

Interest income earned on the temporary
investment of specific borrowings pending their
expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalization.

All other borrowing costs are charged to the
Statement of Profit and Loss for the period for
which they are incurred.

1.3.9. Employee Benefits

(A) Short-Term Employee Benefits

The undiscounted amount of short-term
employee benefits expected to be paid

in exchange for the services rendered by
employees are recognized as an expense
during the period when the employees render
the services.

(B) Post-Employment Benefits

(i) Defined Contribution Plans

The Company recognizes contribution
payable to the provident fund scheme
as an expense, when an employee
renders the related service. If the
contribution payable to the scheme
for service received before the balance
sheet date exceeds the contribution
already paid, the deficit payable to the
scheme is recognized as a liability. If the
contribution already paid exceeds the
contribution due for services received
before the balance sheet date, then
excess is recognized as an asset to the
extent that the pre-payment will lead to
a reduction in future payment or a cash
refund.

(ii) Defined Benefit Plans

(a) Gratuity Scheme: The Company
pays gratuity to the employees
who have completed five years
of service with the Company
at the time of resignation/
superannuation. The gratuity is
paid @ 15 days basic salary and
dearness allowances for every
completed year of service as per
the Payment of Gratuity Act, 1972.
The liability in respect of gratuity
and other post-employment
benefits is calculated using the
Projected Unit Credit Method and
spread over the period during
which the benefit is expected to be
derived from employees’ services.

Remeasurement gains and losses
arising from adjustments and
changes in actuarial assumptions
are recognized in the period
in which they occur in Other
Comprehensive Income.

(iii) Other Long - Term Employee Benefits
Entitlement to annual leave is recognized
when they accrue to employees.

1.3.10.Revenue Recognition

Revenue is recognized upon transfer of control
of promised services to customers in an
amount that reflects the consideration which the
Company expects to receive in exchange for those
services. Revenues from customer contracts are
considered for recognition and measurement
when the contract has been approved by the
parties to the contract, the parties to the contract
are committed to perform their respective
obligations, each party’s rights and obligations and
the payment terms can be identified, the contract
has commercial substance and it is probable that
the entity will collect the consideration to which it
is entitled to in exchange for the services that will
be transferred to the customer.

The Company assesses the services promised
in a contract and identifies distinct performance
obligations in the contract.

Revenue is measured based on the consideration
specified in a contract with a customer and
excludes amounts collected on behalf of third
parties. The Company’s contracts may include
variable consideration including rebates, volume
discounts and penalties. The Company includes
variable consideration as part of transaction price
when there is a basis to reasonably estimate
the amount of the variable consideration and
when it is probable that a significant reversal of
cumulative revenue recognized will not occur
when the uncertainty associated with the variable
consideration is resolved.

The Company allocates the transaction price to
each distinct performance obligation based on
the relative standalone selling price. Revenue
from contracts which are on time and material
basis are recognized when services are rendered,
and related costs are incurred. Revenue from
fixed-price contracts where the performance
obligations are satisfied over time and where
there is no uncertainty as to measurement or
collectability of consideration, is recognized as
per the percentage-of-completion method. Use of
the percentage of completion method requires the
Company to estimate the efforts or cost expended
to date (input method) as a proportion of the
total efforts or costs to be expended. The cost
& efforts expended (or input) method has been
used to measure progress towards completion
as there is a direct relationship between input
and productivity. Estimates of total costs or

efforts are continuously monitored over the
term of the contracts and are recognized in the
net profit prospectively in the period when these
estimates change or when the estimates are
revised. Provisions for estimated losses, if any, on
incomplete contracts are recorded in the period
in which such losses become probable based on
the estimated efforts or costs to complete the
contract.

The Company presents revenue net of discounts,
indirect taxes and value-added taxes in its
statement of profit and loss Contracts assets
are recognized when there is excess of revenue
earned over billings on contracts. Contract assets
are classified as unbilled revenue when there
is unconditional right to receive cash, and only
passage of time is required, as per contractual
terms. Contract liability ("Unearned revenue")
arises when there are billing in excess of revenue.

i) Export Incentives

Export incentive revenues are recognized
when the right to receive the credit is
established and there is no significant
uncertainty regarding the ultimate collection.

ii) Interest Income

Interest Income from a Financial Assets
is recognized using effective interest rate
method.

iii) Dividend Income

Dividend Income is recognized when the
Company’s right to receive the amount has
been established.

iv) Other Income

Other items of income are accounted as
and when the right to receive arises and it is
probable that the economic benefits will flow
to the Company and the amount of income
can be measured reliably.

v) Surplus/(Loss) on disposal of Property,
Plants and Equipment/Investments
Surplus or loss on disposal of property, plants
and equipment or investment is recorded on
transfers of title from the Company, and is
determined as the difference between the
sales price and carrying value of the property,
plants and equipment or investments and
other incidental expenses.

vi) Rental Income

Rental income arising from operating lease

on investments properties is accounted for
on a straight - line basis over the lease term
except the case where the incremental lease
reflects inflationary effect and rental income
is accounted in such case by actual rent for
the period.

vii) Insurance Claim

Claim receivable on account of insurance
is accounted for to the extent the Company
is reasonably certain of their ultimate
collections.

Other Income

Revenue from other income is recognized when
the payment of that related income is received or
credited.

I.3.H. Foreign Currency Transactions and Translation

Transactions in foreign currencies are recorded
at the exchange rate prevailing on the date of
transaction. Monetary assets and liabilities
denominated in foreign currencies are translated at
the functional currency closing rates of exchange
at the reporting date. Exchange differences arising
on settlement or translation of monetary items are
recognized in Statement of Profit and Loss except
to the extent of exchange differences which are
regarded as an adjustment to interest costs on
foreign currency borrowings that are directly
attributable to the acquisition or construction of
qualifying assets which are capitalized as cost of
assets.

Non-monetary items that are measured in terms
of historical cost in a foreign currency are recorded
using the exchange rates at the date of the
transaction. Non-monetary items measured at fair
value in a foreign currency are translated using the
exchange rates at the date when the fair value was
measured. 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 Other Comprehensive
Income or Statement of Profit and Loss are also
recognized in Other Comprehensive Income or
Statement of Profit and Loss, respectively).

1.3.12.Government Grants and Subsidies

Grants in the nature of subsidies which are non¬
refundable are recognized as income where there
is reasonable assurance that the Company wi ll
comply with all the necessary conditions attached

to them. Income from grants is recognized on a
systematic basis over periods in which the related
costs that are intended to be compensated by
such grants are recognized.

Refundable government grants are accounted in
accordance with the recognition and measurement
principle of Ind AS 109, "Financial Instruments".
It is recognized as income when there is a
reasonable assurance that the Company will
comply with all necessary conditions attached to
the grants. Income from such benefit is recognized
on a systematic basis over the period of the grants
during which the Company recognizes interest
expense corresponding to such grants.

1.3.13. Financial Instruments - Financial Assets

(A) Initial Recognition and Measurement

All Financial Assets are initially recognized at
fair value. Transaction costs that are directly
attributable to the acquisition or issue of
Financial Assets, which are not at Fair Value
Through Profit or Loss, are adjusted to the
fair value on initial recognition. Purchase and
sale of Financial Assets are recognized using
trade date accounting.

(B) Subsequent Measurement

a) Financial Assets measured at Amortized
Cost (AC)

A Financial Asset is measured at
Amortized Cost if it is held within a
business model whose objective is
to hold the asset in order to collect
contractual cash flows and the
contractual terms of the Financial Asset
give rise to cash flows on specified
dates that represent solely payments
of principal and interest on the principal
amount outstanding.

b) Financial Assets measured at Fair Value
Through Other Comprehensive Income
(FVTOCI)

A Financial Asset is measured at
FVTOCI if it is held within a business
model whose objective is achieved by
both collecting contractual cash flows
and selling Financial Assets and the
contractual terms of the Financial Asset
give rise on specified dates to cash
flows that represents solely payments
of principal and interest on the principal
amount outstanding.

Further, the Company, through an
irrevocable election at initial recognition,
has measured certain investments
in equity instruments at FVTOCI. The
Company has made such election on
an instrument-by-instrument basis.
These equity instruments are neither
held for trading nor are contingent
consideration recognized under a
business combination. Pursuant to
such irrevocable election, subsequent
changes in the fair value of such equity
instruments are recognized in OCI.
However, the Company recognizes
dividend income from such instruments
in the Statement of Profit and Loss.

c) Financial Assets measured at Fair Value
Through Profit or Loss (FVTPL)

A Financial Asset which is not classified
in any of the above categories is
measured at FVTPL. Financial assets
are reclassified subsequent to their
recognition, if the Company changes
its business model for managing those
financial assets. Changes in business
model are made and applied prospectively
from the reclassification date which
is the first day of immediately next
reporting period following the changes
in business model in accordance with
principles laid down under Ind AS 109 -
Financial Instruments.

(C) Investments

Investments are classified in to Current or
Non-Current Investments. Investments
that are readily realizable and intended to
be held for not more than a year from the
date of acquisition are classified as Current
Investments. All other Investments are
classified as Non - Current Investments.
However, that part of Non - Current
Investments which are expected to be
realized within twelve months from the
Balance Sheet date is also presented under
"Current Investments" under "Current portion
of Non-Current Investments" in consonance
with Current/Non-Current classification of
Schedule - III of the Act.

All the equity investment which covered
under the scope of Ind AS 109, "Financial
Instruments" is measured at the fair value.

Investment in Mutual Fund is measured at
fair value through profit and loss (FVTPL).
Trading Instruments are measured at fair
value through profit and loss (FVTPL).

(D) Investment in Subsidiaries, Associates and
Joint Ventures

The Company has accounted for its
investments in Subsidiaries, associates and
joint venture at cost less impairment loss (if
any).

(E) Impairment of Financial Assets

In accordance with Ind AS 109, the Company
uses ''Expected Credit Loss’ (ECL) model, for
evaluating impairment of Financial Assets
other than those measured at Fair Value
Through Profit and Loss (FVTPL).

1.3.14. Financial Instruments - Financial Liabilities

(A) Initial Recognition and Measurement

All Financial Liabilities are recognized at fair
value and in case of borrowings, net of directly
attributable cost. Fees of recurring nature are
directly recognized in the Statement of Profit
and Loss as finance cost.

(B) Subsequent Measurement

Financial Liabilities are carried at amortized
cost using the effective interest method. For
trade and other payables maturing within
one year from the balance sheet date, the
carrying amounts approximate fair value due
to the short maturity of these instruments.

1.3.15. Derivative Financial Instruments and Hedge
Accounting

The Company enters into derivative contracts
in the nature of forward currency contracts with
external parties to hedge its foreign currency risks
relating to foreign currency denominated financial
assets measured at amortized cost. If risk found
significant.

The Company formally establishes a hedge
relationship between such forward currency
contracts (''hedging instrument’) and recognized
financial assets (''hedged item’) through a formal
documentation at the inception of the hedge
relationship in line with the Company’s Risk
Management objective and strategy.

The hedge relationship so designated is accounted
for in accordance with the accounting principles
prescribed for a cash flow hedge under Ind AS
109, ''Financial Instruments’.

Recognition and measurement of cash flow
hedge:

The Company strictly uses foreign currency
forward contracts to hedge its risks associated
with foreign currency fluctuations relating to
certain forecasted transactions. As per Ind AS 109
- Financial Instruments, foreign currency forward
contracts are initially measured at fair value and
are re-measured at subsequent reporting dates.
Changes in the fair value of these derivatives
that are designated and effective as hedges of
future cash flows are recognized in hedge reserve
(under reserves and surplus) through other
comprehensive income and the ineffective portion
is recognized immediately in the statement of
profit and loss.

The accumulated gains/losses on the derivatives
accounted in hedge reserve are transferred to the
statement of profit and loss in the same period in
which gains/losses on the underlying item hedged
are recognized in the statement of profit and loss.

Derecognition:

Hedge accounting is discontinued when
the hedging instrument expires or is sold,
terminated, or exercised, or no longer qualifies
for hedge accounting. When hedge accounting
is discontinued for a cash flow hedge, the net
gain or loss will remain in hedge reserve and
be reclassified to the statement of profit and
loss in the same period or periods during which
the formerly hedged transaction is reported in
the statement of profit and loss. If a hedged
transaction is no longer expected to occur, the
net cumulative gains/losses recognized in hedge
reserve is transferred to the statement of profit
and loss.

Fair Value Hedge:

The Company designates derivative contracts
or non-derivative Financial Assets/Liabilities as
hedging instruments to mitigate the risk of change
in fair value of hedged item due to movement
in interest rates, foreign exchange rates and
commodity prices.

Changes in the fair value of hedging instruments
and hedged items that are designated and qualify
as fair value hedges are recorded in the Statement
of Profit and Loss. If the hedging relationship no
longer meets the criteria for hedge accounting, the
adjustment to the carrying amount of a hedged
item for which the effective interest method is

used is amortized to Statement of Profit and Loss
over the period of maturity.

1.3.16. Derecognition of Financial Instruments

The Company derecognizes a Financial Asset
when the contractual rights to the cash flows
from the Financial Asset expire or it transfers
the Financial Asset and the transfer qualifies for
derecognition under Ind AS 109. A Financial liability
(or a part of a financial liability) is derecognized
from the Company’s Balance Sheet when the
obligation specified in the contract is discharged
or canceled or expires.

1.3.17. Financial Instruments - Offsetting

Financial Assets and Financial Liabilities are offset
and the net amount is presented in the balance
sheet when, and only when, the Company has
a legally enforceable right to set off the amount
and it intends, either to settle them on a net
basis or to realize the asset and settle the liability
simultaneously.

1.3.18. Taxes on Income

The tax expenses for the period comprises of
current tax and deferred income tax. Tax is
recognized in Statement of Profit and Loss, except
to the extent that it relates to items recognized in
the Other Comprehensive Income. In which case,
the tax is also recognized in Other Comprehensive
Income.

(a) Current Tax

Current tax assets and liabilities are measured
at the amount expected to be recovered from
or paid to the Income Tax authorities, based
on tax rates and laws that are enacted at the
Balance sheet date.

(b) Deferred Tax

Deferred tax is recognized 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 assets are recognized to the
extent it is probable that taxable profit will
be available against which the deductible
temporary differences, and the carry forward
of unused tax losses can be utilized. 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 realized, based on tax rates (and tax

laws) that have been enacted or substantively
enacted by the end of the reporting period.
The carrying amount of Deferred tax liabilities
and assets are reviewed at the end of each
reporting period.

Presentation

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.

1.3.19.Segment Reporting

(a) The generally accepted accounting principles
used in the preparation of the financial
statements are applied to record revenue and
expenditure in individual segments.

(b) Expenses that are directly identifiable to
segments are considered for determining the
segment result. Expenses which relate to the
Company as a whole and are not allocable
to segments are included under unallocated
corporate expenses.

(c) Segment assets and liabilities include those
directly identifiable with the respective
segments. Unallocated corporate assets and
liabilities represent the assets and liabilities
that relate to the Company as a whole and
not allocable to any segment.

(d) Looking to the nature of company segment
reporting is not applicable.

1.3.20.Earnings per Share

Basic earnings per share is calculated by dividing
the net profit after tax by the weighted average
number of equity shares outstanding during the
year adjusted for bonus element in equity share.
Diluted earnings per share adjusts the figures
used in determination of basic earnings per share
to take into account the conversion of all dilutive
potential equity shares. Dilutive potential equity
shares are deemed converted as at the beginning
of the period unless issued at a later date.

Note 1 - SIGNIFICANT ACCOUNTING POLICIES:

1.1) Basis of preparation of financial statements

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable.

1.2) Use of Estimates

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumption that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period.

Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Where no reliable estimate can be made, a disclosure is made as contingent liability. Actual results could differ from those estimates. The differences if any will be dealt accordingly in subsequent years.

1.3) Property, Plant and Equipment

a. Tangible Assets

Property, plant and equipment are stated at historical cost less accumulated depreciation, and accumulated impairment loss, if any. Historical cost comprises of the purchase price including duties and non-refundable taxes, borrowing cost if capitalization criteria are met, directly attributable expenses incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner intended by management And initial estimate of decommissioning, restoring and similar liabilities.

Subsequent costs related to an item of property, plant and equipment are 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 and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are recognized in statement of profit and loss during the reporting period when they are incurred.

An item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gains or losses arising from derecognition are measured as the difference between the net disposal

proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

b. Intangible Assets

Intangible assets include software / application which are developed and are measured on the basis of cost incurred for its development. The cost of intangible assets in our business combination is the capitalized value of the cost incurred to develop the asset till it is put to use. Such costs include salary of professional personnel hired, project expenses, research costs, etc. Following initial recognition, intangible assets are carried at cost less any accumulated amortization.

An item of intangible asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gains or losses arising from derecognition are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

Subsequent costs related to intangible assets are recognised as a separate asset, 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.

c. Intangible Assets under development

Intangible Assets under development include software/ application under development net off accumulated impairment loss, if any, as at the Balance sheet date. Directly attributable expenditure incurred on project under development are shown under CWIP. At the point when an asset is capable of operating in the manner intended by management, the Intangible assets under development is transferred to the appropriate category of Intangible assets.

Fixed Assets are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its present condition for intended use.

1.4) Depreciation

a. Depreciation of Tangible assets :

Property, plant and equipment individually costing Rs. 5,000 or less are depreciated at 100% in the year in which such assets are ready to use.

Depreciation is calculated using the Written down value method over their estimated useful lives. The estimates of useful lives of tangible assets are as follows:

(b) Long Term Employee Benefits

(i) Defined Contribution Plan:

Provident Fund and Group Insurance Scheme:

Employees of the company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Both the employee and the employer make monthly contributions to the plan at a predetermined rate (presently 12%) of the employees'' basic salary or Rs 1800/-. These contributions are made to the fund administered and managed by the Government of India.

(ii) Defined Benefit Plan:

Leave Encashment: The Company has provided for the liability at year end on the basis of valuation report received by the valuer .

Gratuity: The Company provides for gratuity obligations through a defined retirement plan (''the Gratuity Plan'') covering all eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment based on respective employee salary and years of employment with the Company. The Company provides for the Gratuity Plan based on projection valuations in accordance with Accounting Standard 15 (Revised), "Employee Benefits".

1.7) Borrowing Cost

Borrowing Cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of Borrowings. General and specific borrowing costs directly attributable to the acquisition/ construction 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 the assets are substantially ready for their intended use. All other borrowing costs are recognized as an expense in Statement of Profit and Loss in the period in which they are incurred.

1.8) Transactions in Foreign Exchange

Transaction dominated in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Assets and Labilities denominated in foreign currency are converted at the exchange rate prevailing as at the balance sheet date. Exchange differences other than those relating to acquisition of fixed assets are recognized in the statement of profit and loss. Exchange differences relating to purchase of fixed assets are adjusted to the carrying cost of fixed assets.

The company is dealing in Foreign Exchange. During the year company had export is Nill (Previous Year:-Nil)

1.9) Segment Reporting

(a) The generally accepted accounting principles used in the preparation of the financial statements are applied to record revenue and expenditure in individual segments.

(b) Expenses that are directly identifiable to segments are considered for determining the segment result. Expenses which relate to the Company as a whole and are not allocable to segments are included under unallocated corporate expenses.

(c) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocated corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.

(d) Looking to the nature of company segment reporting is not applicable.

1.10) Operating Leases- As Lessee

Lease rentals in respect of assets taken on "Operating Lease" are charged to Profit and Loss Account on a straight line basis over the lease term.

1) Not Later than one year , Rent Rs. 90,760.00/-

2) Later than one year but not later than five years, , No Lease

3) Later than five years. No Lease

1.11) Earnings per Share

In determining earning per share, the Company considers the net profit / (loss) after tax and includes the post-tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

1.12) Taxation

a. Income tax

Provision for Current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws.

b. Deferred tax

Deferred taxation is provided using the liability method in respect of the taxation effect originating from all material timing differences between the accounting and tax treatment of income and expenditure, which are expected with reasonable probability to reverse in subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using

the tax rates that have been enacted or substantively enacted by the balance sheet date.

1.13) Impairment of assets

Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired.

SIGNIFICANT ACCOUNTING POLICIES

1.1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

These financial statements have been prepared to comply in all material aspects with applicable
accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of
the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the
provisions of the Act (to the extent notified) and other accounting principles generally accepted in
India, to the extent applicable.

1.2) USE OF ESTIMATES:

The preparation of the financial statements in conformity with GAAP requires the management to
make estimates and assumption that affect the reported balances of assets and liabilities and
disclosures relating to contingent assets and liabilities as at the date of the financial
statements and reported amounts of income and expenses during the period.

Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be
reasonably estimated. Where no reliable estimate can be made, a disclosure is made as contingent
liability. Actual results could differ from those estimates. The differences if any will be dealt
accordingly in subsequent years.

1.3) PROPERTY, PLANT AND EQUIPMENT:

(a) Tangible Assets

Property, plant and equipment are stated at historical cost less accumulated depreciation, and
accumulated impairment loss, if any. Historical cost comprises of the purchase price including
duties and nondrefundable taxes, borrowing cost if capitalization criteria are met, directly
attributable expenses incurred to bring the asset to the location and condition necessary for it to
be capable of being operated in the manner intended by management and initial estimate of
decommissioning, restoring and similar liabilities.

Subsequent costs related to an item of property, plant and equipment are 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 and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is derecognized when
replaced. All other repairs and maintenance are recognized in statement of profit and loss during
the reporting period when they are incurred.

An item of property, plant and equipment is derecognized on disposal or when no future
economic benefits are expected from its use or disposal. The gains or losses arising from
derecognition are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of profit and loss when the asset is
derecognized.

The estimated useful life of the intangible assets, amortisation method and the amortisation period
are reviewed at the end of each financial year and the amortisation period is revised to reflect the
changed pattern, if any.

Amortisation of the asset begins when development is complete and the asset is available for use.
It is amortised over the period of expected future benefit. Amortisation expense is recognised in the
statement of profit and loss unless such expenditure forms part of carrying value of another asset.
During the period of development, the asset is tested for impairment annually.

1.5) REVENUE RECOGNITION:

(a) Revenue from services: Revenue is recognized based on contractual terms and upon
rendering of services as per terms of agreement.

(b) Interest Income: Interest income is recognized using the timeDproportion method, based on
rates implicit in the transaction.

(c) Other income: Other income is recognized based on the contractual obligations on accrual basis.

1.6) EMPLOYEE BENEFITS:

(a) Short Term Employee Benefits

Short term employee benefits are recognized in the period during which the services have
been rendered.

(b) Long Term Employee Benefits

i) Defined Contribution Plan:

Provident Fund and Group Insurance Scheme: Employees of the company are entitled to
receive benefits under the Provident Fund, which is a defined contribution plan. Both the
employee and the employer make monthly contributions to the plan at a predetermined rate
(presently 12%) of the employees'' basic salary or Rs 1800/-. These contributions are made to the
fund administered and managed by the Government of India.

ii) Defined Benefit Plan:

Leave Encashment: The Company has provided for the liability at year end on the basis of
valuation report received by the valuer.

Gratuity: The Company provides for gratuity obligations through a defined retirement plan (''the
Gratuity Plan'') covering all eligible employees. The Gratuity Plan provides a lump sum
payment to vested employees at retirement or termination of employment based on respective
employee salary and years of employment with the Company. The Company provides for the
Gratuity Plan based on projection valuations in accordance with Accounting Standard 15 (Revised),
"Employee Benefits".

1.7) BORROWING COST:

Borrowing Cost includes interest and amortization of ancillary costs incurred in connection
with the arrangement of Borrowings. General and specific borrowing costs directly attributable
to the acquisition/ construction 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 the assets are substantially ready for their intended use. All other borrowing
costs are recognized as an expense in Statement of Profit and Loss in the period in which they are
incurred.

1.8) TRANSACTIONS IN FOREIGN EXCHANGE

Transaction dominated in foreign currency are recorded at the exchange rate prevailing on the date
of transaction. Assets and Labilities denominated in foreign currency are converted at the exchange
rate prevailing as at the balance sheet date. Exchange differences other than those relating to
acquisition of fixed assets are recognized in the statement of profit and loss. Exchange differences
relating to purchase of fixed assets are adjusted to the carrying cost of fixed assets.

The company is dealing in Foreign Exchange. During the year company had export is Nill (Previous
Year:- 11,158,440).

1.9) SEGMENT REPORTING

(a) The generally accepted accounting principles used in the preparation of the financial statements are
applied to record revenue and expenditure in individual segments.

(b) Expenses that are directly identifiable to segments are considered for determining the
segment result. Expenses which relate to the Company as a whole and are not allocable to segments
are included under unallocated corporate expenses.

(c) Segment assets and liabilities include those directly identifiable with the respective segments.
Unallocated corporate assets and liabilities represent the assets and liabilities that relate to the
Company as a whole and not allocable to any segment.

(d) Looking to the nature of company segment reporting is not applicable.

1.10) OPERATING LEASES- as Lessee

Lease rentals in respect of assets taken on "Operating Lease" are charged to Profit and Loss Account
on a straight line basis over the lease term.

1) Not Later than one year, Rent Rs. 1,74,990/-

2) Later than one year but not later than five years, No Lease

3) Later than five years. No Lease

1.10) EARNINGS PER SHARE

In determining earning per share, the Company considers the net profit / (loss) after tax and includes
the postDtax effect of any extraordinary items. The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding during the period.

1.12) TAXATION

(a) Income tax

Provision for Current tax is made based on the liability computed in accordance with the relevant
tax rates and tax laws.

(b) Deferred tax

Deferred taxation is provided using the liability method in respect of the taxation effect originating
from all material timing differences between the accounting and tax treatment of income and
expenditure, which are expected with reasonable probability to reverse in subsequent
periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets
are recognized using the tax rates that have been enacted or substantively enacted by the balance
sheet date.

1.13) IMPAIRMENT OF ASSETS

Management periodically assesses using, external and internal sources, whether there is an
indication that an asset may be impaired. An asset is impaired when the carrying amount of the asset
exceeds its recoverable amount. An impairment loss is charged to Profit and Loss Account in the year
in which an asset is identified as impaired.