Notes to Accounts of ASM Technologies Ltd.

Mar 31, 2025

m) Provisions, Contingent liabilities and
Contingent assets:

A provision is recognized when an enterprise has a
present obligation (legal or constructive) as result
of past event and it is probable that an outflow of
embodying economic benefits of resources will be
required to settle a reliably assessable obligation.
Provisions are determined based on best estimate
required to settle each obligation at each balance
sheet date. If the effect of the time value of money is
material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used, the
increase in the provision due to the passage of time
is recognised as a finance cost.

Provisions for onerous contracts, i.e. contracts
where the expected unavoidable costs of meeting
obligations under a contract exceed the economic
benefits expected to be received, are recognized
when it is probable that an outflow of resources
embodying economic benefits will be required to
settle a present obligation as a result of an obligating
event, based on a reliable estimate of such obligation.

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of

one or more uncertain future events beyond the
control of the Company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases where there is a
liability that cannot be recognized because it
cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its
existence in the financial statements. A contingent
asset is never recognised but only disclosed in the
financial statements.

n) Segment reporting policies:

Identification of segments:

Operating Segments are identified on the basis of
internal reports about components of the group
that are regularly reviewed by the chief operating
decision maker (CODM) in order to allocate resources
to the segments and to assess their performance in
accordance with Ind AS 108, Operating Segments.
Since CODM evaluates Company''s performance at
a geographic segment level, operating segment
information is accordingly given at geographic level.

o) Financial Instruments:

Financial assets and liabilities are recognized when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets
and liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added
to or deducted from the fair value measured on initial
recognition of financial asset or financial liability.

i) Cash & Cash equivalents:

The Company considers all highly liquid financial
instruments, which are readily convertible
into known amounts of cash that are subject
to an insignificant risk of change in value and
having original maturities of three months
or less from the date of purchase, to be cash
equivalents. Cash and cash equivalents consist
of balances with banks which are unrestricted
for withdrawal and usage.

ii) Financial assets at amortized cost:

Financial assets are subsequently measured at
amortized cost if these financial assets are held
within a business whose objective is to hold these
assets in order to collect contractual cash flows and
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.

iii) Financial assets at fair value through other
comprehensive income:

Financial assets are measured at fair value through
other comprehensive income if these financial
assets are held within a business 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 are solely
payments of principal and interest on the principal
amount outstanding.

iv) Financial assets at fair value through profit
or loss:

Financial assets are measured at fair value through
profit or loss unless it is measured at amortized
cost or at fair value through other comprehensive
income on initial recognition. The transaction costs
directly attributable to the acquisition of financial
assets and liabilities at fair value through profit or
loss are immediately recognized in statement of
profit and loss.

v) Financial liabilities:

Financial liabilities are subsequently carried
at amortized cost using the effective interest
method, except for contingent consideration
recognized in a business combination which is
subsequently measured at fair value through
profit or loss. 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.

vi) De-recognition 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 de¬
recognition under Ind AS 109. A financial liability
(or a part of a financial liability) is derecognized
when the obligation specified in the contract is
discharged or cancelled or expires.

vii) Fair value of financial instruments:

I n determining the fair value of its financial
instruments, the Company uses following
hierarchy and assumptions that are based on
market conditions and risks existing at each
reporting date.

Fair value hierarchy:

All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorized 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) market
prices in 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 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 as a whole) at the end of
each reporting period.

viii) Investments in subsidiary:

Investments in subsidiary is carried at cost.

p) Impairment:

i) Financial assets:

The Company assesses at each date of balance
sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through
a loss allowance. The Company recognises
lifetime expected losses for all contract assets
and / or all trade receivables that do not
constitute a financing transaction. For all other
financial assets, expected credit losses are
measured at an amount equal to the 12-month
expected credit losses or at an amount equal
to the life time expected credit losses if the
credit risk on the financial asset has increased
significantly since initial recognition.

ii) Non-financial assets:

Tangible and Intangible assets: PPE, intangible
assets and investment property with finite life
are evaluated for recoverability whenever there
is any indication that their carrying amounts
may not be recoverable. If any such indication
exists, the recoverable amount (i.e. 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. If the recoverable
amount of an asset (or CGU) is estimated to
be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its
recoverable amount. An impairment loss is
recognised in the statement of profit and loss.

q) Cashflow Statement:

Cash flows are reported using the indirect
method, whereby profit for the period is
adjusted for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past or
future operating cash receipts or payments
and item of income or expenses associated
with investing or financing cash flows. The cash
flows from operating, investing and financing
activities of the Company are segregated. The
Company considers all highly liquid investments
that are readily convertible to known amounts
of cash to be cash equivalents.

2.3 Significant accounting judgements, estimates
and assumptions:

The preparation of the Company''s financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in
future periods.

a) Judgements:

In the process of applying the Company''s accounting
policies, management has made the following
judgements, which have the most significant effect on
the amounts recognized in the financial statements:

(b) Estimates and assumptions:

The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts
of assets and liabilities within the next financial
year, are described below. The Company based its
assumptions and estimates on parameters available
when the financial statements were prepared.
Existing circumstances and assumptions about
future developments, however, may change due to
market changes or circumstances arising that are
beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

Defined benefit plans - Gratuity

The cost of the defined benefit gratuity plan and
other post-employment medical benefits and
the present value of the gratuity obligation are
determined using actuarial valuations. An actuarial
valuation involves making various assumptions that
may differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases and mortality rates. Due
to the complexities involved in the valuation and
its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for
plans operated in India, the management considers
the interest rates of government bonds

The mortality rate is based on publicly available
mortality tables. Those mortality tables tend to
change only at interval in response to demographic
changes. Future salary increases are based on
expected future inflation rates and expected salary
increase thereon.

37 Business combination of wholly owned subsidiary:

Pursuant to scheme of Arrangement filed between the Company ("Transfee Company") and its wholly owned Subsidiary

Company, ASM Digital Engineering Private Limited ("Transferor Company") in terms of provisions of Section 230 to 233 of the

Act, to merge the business of its wholly owned subsidiary with the Company (hereinafter referred to as "the Scheme") with

appointed date being April 1, 2023 and has been approved by National Company Law Tribunal (''NCLT'') in November 2024.

The Scheme has been filed with the Registrar of Companies, Karnataka on 14-12-2024.

In accordance with the provisions of the aforesaid scheme: -

a. The Scheme being a common control business combination, has been accounted for using the pooling of interests
method from the appointed date specified under the Scheme. As per Ind AS 103 - Business Combinations, common
control business combination should be accounted as per the pooling of interests method and the financial information
in the financial statements in respect of prior periods should be restated as if the business combination had occured from
the beginning of the preceeding period in the financial statements, irrespective of the actual date of the combination.
Therefore, the aforesaid accounting from the appointed date.

b. The assets and liabilities of the Transferor Company have been recognized at their existing carrying amounts.

c. No adjustments were made to reflect fair values or to recognize new assets and liabilities.

d. The identity of the reserves of the Transferor Company is preserved and appeared in the financial statements of the
Transferee Company in the same form and manner as they appeared previously.

e. The difference between the value of investments in the Transferor Company and the net assets taken over has been
adjusted in the reserves of the Transferee Company.

38 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise of trade and other payables. The main purpose of these financial
liabilities is to finance the Company''s operations to support its operations. The Company''s principal financial assets include
trade and other receivables, rental and bank deposits and cash and cash equivalents, that derive directly from its operations.
The Company is exposed to credit and liquidity risk. The Company''s senior management oversees the management of these
risks and the Board of Director''s reviews these activities.

i. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument would fluctuate due to changes
in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include trade payables. The Company
is not exposed to price risk on the financial date.

The sensitivity analysis in the following sections relate to the positions as at March 31, 2025 and March 31, 2024.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post¬
retirement obligations and provisions.

The following assumption has been made in calculating sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is
based on the financial assets and financial liabilities held at March 31, 2025 and March 31,2024.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The operations of the Company are both in India and overseas. Company has been providing
services to overseas customers. Hence, the Company is currently exposed to the currency risk arising from fluctuation
of these foreign currencies and Indian rupee exchange rates.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). At the end of
every financial year, the Company makes an assessment whether any loss allowance has to be provided for using the lifetime
Expected Credit Loss (ECL) method.

iii. Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due.

The Company is predominantly equity financed which is evident from the capital structure table. Further, the Company has always
been a net cash Company with cash and bank balances along with current financial assets which is predominantly receivables.

41 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified
by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding
Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities
identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

42 The Code on Social Security 2020 (""the Code"") relating employee benefits, during the employment and post employment,
has received presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the
Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date
from which the changes are applicable is yet to be notified and rules for quanitifying the financial impact are yet to be issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in
which the Code becomes effective and the related rules to determine the financial impact are published.

43 Dividends:

i) The Board of directors of the Company have proposed final dividend of 13 /- (Previous Year: 11/-) per equity share of
110/- fully paid up for the year ended March 31, 2025 which is subject to approval of the members in the ensuing annual
general meeting.

ii) The Board of Directors of the Company have paid an interim dividedn of Re.1/- per equity share of 110/- each fully paid
up during the year.

44 Additional Disclosures:

(i) Transactions and balances with companies which have been removed from register of Companies [struck off companies]
as at the above reporting periods is Nil.

(ii) The Company has not traded / invested in Crypto currency.

(iii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).

(iv) The Company is not a declared wilful defaulter by any bank or financial Institution or other lender.

(v) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

(vi) The Company has granted loans to related parties as follows:

45 Standards Issued but not effective:

The Ministry of Corporate affairs has notified on May 7, 2025 certain amendments to Ind AS 21 - Effect of changes in FX rates.
The company is in the process of studying the amendments and ascertaining its impact.

In Accordance with our Report Attached

for BK Ramadhyani & Co. LLP For and on behalf of Board of Directors

Chartered Accountants ASM Technologies Limited

Firm Registration
No.: 0028785/ S200021

(Vasuki HS) M R Vikram Rabindra Srikantan M Lakshminarayan Ramesh Radhakrishnan

Partner Chairman Managing Director Director Director

Membership No.: 212013 DIN- 00008241 DIN- 00024584 DIN- 00064750 DIN- 02608916

Hardik Agrawal Preeti R Narsingh Rathod Vanishree Kulkarni

Director Director Chief Financial Officer Company Secretary

DIN- 10580697 DIN- 00216818

Place: Bangalore
Date: May 18, 2025

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Mar 31, 2024

(a) Rights, preferences and restrictions attached to shares

The company has only one class of equity shares having par value of H10 per share.Each holder of equity is entitled to one vote per share.

(e) During the year 2021 - 22 the Company had a Rights issue of equity shares to its shareholders at 1:10 ratio on March 28, 2022 and closed on April 6, 2022 at a premium of H105/- per share on a call basis which is payable on application H35 per share and First & Final call of H80 per share. During the year the Company has received the first and final call amount of H80/- per share which was received on 9,74,208 shares and balance shares of 25,792 has been forfieted by the Company.

(f) Bonus shares issued in last five year 50,00,000 shares of H10/- each

(g) During the year the Company has issued 8,00,000 equity shares of H10/- each at a premium of H460.50 and 28,14,390 share warrants at the price of H470.50 per warrant which will be convertible into 1 equity share of H10/- each at any time on or before expiry of 18 months from the date of allotment of the warrants.

a Details of security for secured loans from banks:

i) Hypothecation charge on Receivables and other current assets of the company, further lien on SBI mutual Fund scheme "SBI Corporate bond fund -regular plan growth" and SBI mutual fund scheme "SBI short term debt fund regular plan growth and secured by personal guarantee of Managing Director.

ii) Lien on fixed deposits of the Company and charge on SBI mutual Fund scheme "SBI Corporate bond fund -regular plan growth " and on SBI mutual fund scheme "SBI short term debt fund regular plan growth and secured by personal guarantee of Managing Director.

26 Gratuity and other post-employment benefits

The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service is entitled to gratuity of 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with LIC.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the gratuity plan:

Defined contribution plan

The Company also has defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is H34.34 million (Previous Year: H39.29 million)

28 Corporate Social Responsibility:

As per Section 135 of the Act, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, promote rural and nationally recognised sports, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Act.

Terms and conditions of transactions with related parties

The sales of services to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions.

30 Capital and other commitments

Company has committed to contribute H80 Million to a venture capital fund out of which H50 Million has been paid so far. Amount of such capital commitment outstanding as at March 31, 2024 is H30 million (As at March 31, 2023: H38 million)

31 Contingent Liabilities
Particulars	As at March 31, 2024	As at March 31, 2023
Service tax claim(company filed appeal against the order)	41.85	41.85
Showcause notice received from service tax authorities	182.28	182.28
Income tax under appeal of which the Company has paid an amount of H0.60 million (as at March 31, 2023 H0.60 million)under protest	2.99	2.99
Income tax deducted at source demand under the traces software for short and non remittances of tax deduction at source - matter under examination.	0	1.32
Corporate Guarantee given in favour of R V Forms & Gears LLP and ASM Digital Engineering Private Limited for availing credit facilities.	267.41	119.18

Pursuant to Taxation Loss (Amendment) Ordinance, 2019 dated September 20, 2019, the Company intends to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 to compute income tax at the rate of 22% plus applicable surcharge and cess.

The Company is in the process of making up to date documentation in pursuance of the Transfer Pricing study relating to international transaction with Associated Enterprises for the year as required under the Income-tax Act, 1961. According to the Company and based on the advice of its counsel the Company believes that the profit margins are comparable to available market data and consequently no adjustments are required to these financial statements in respect of the same notwithstanding the draft assessment order referred above.

36 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise of trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations to support its operations. The Company''s principal financial assets include trade and other receivables, rental and bank deposits and cash and cash equivalents, that derive directly from its operations. The Company is exposed to credit and liquidity risk. The Company''s senior management oversees the management of these risks and the Board of Director''s reviews these activities.

i. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument would fluctuate due to changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include trade payables. The Company is not exposed to price risk on the financial date.

The sensitivity analysis in the following sections relate to the positions as at March 31, 2024 and March 31, 2023.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumption has been made in calculating sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2023 and March 31, 2022.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The operations of the Company are both in India and overseas. Company has been providing services to overseas customers. Hence, the Company is currently exposed to the currency risk arising from fluctuation of these foreign currencies and Indian rupee exchange rates.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). At the end of every financial year, the Company makes an assessment whether any loss allowance has to be provided for using the lifetime Expected Credit Loss (ECL) method.

iii. Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company''s board of directors are responsible for liquidity, funding as well as settlement management.

38 Capital Managament

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders and long-term and short-term borrowings. The primary objective of the Company''s capital management is to maximise the shareholder''s value.

The Company is predominantly equity financed which is evident from the capital structure table. Further, the Company has always been a net cash Company with cash and bank balances along with current financial assets which is predominantly receivables.

39 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

40 The Code on Social Security 2020 ("The Code") relating employee benefits, during the employment and post employment, has received presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are yet to be issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.

41 Dividends:

The Board of directors of the Company have proposed final dividend of H1/- (Previous Year: H4/-) per equity share of H10/- fully paid up for the year ended March 31, 2024 which is subject to approval of the members in the ensuing annual general meeting.

42 Additional Disclosures:

(i) Transactions and balances with companies which have been removed from register of Companies [struck off companies] as at the above reporting periods is Nil.

(ii) The Company has not traded / invested in Crypto currency.

(iii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(iv) The Company is not a declared wilful defaulter by any bank or financial Institution or other lender.

(v) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

---

Mar 31, 2023

CORPORATE SOCIAL RESPONSIBILITY:

As per Section 135 of the Act, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, promote rural and nationally recognised sports, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Act.

CAPITAL AND OTHER COMMITMENTS

Company has committed to contribute Rs.80 Million to a venture capital fund out of which Rs.42 Million has been paid so far. Amount of such capital commitment outstanding as at March 31, 2023 is Rs.38 million (As at March 31, 2022: Rs. 47 million)

Significant Clients

The Company’s 45% of revenue is derived from one customers (Previous year: 58.18% of revenue from one customers).

Product-wise Information

Company provides single service and hence no product-wise information is necessary to be given.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise of trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations to support its operations. The Company’s principal financial assets include trade and other receivables, rental and bank deposits and cash and cash equivalents, that derive directly from its operations. The Company is exposed to credit and liquidity risk. The Company’s senior management oversees the management of these risks and the Board of Director’s reviews these activities.

i. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument would fluctuate due to changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include trade payables. The Company is not exposed to price risk on the financial date.

The sensitivity analysis in the following sections relate to the positions as at March 31, 2023 and March 31, 2022.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumption has been made in calculating sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2023 and March 31, 2022.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The operations of the Company are both in India and overseas. Company has been providing services to overseas customers. Hence, the Company is currently exposed to the currency risk arising from fluctuation of these foreign currencies and Indian rupee exchange rates.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). At the end of every financial year, the Company makes an assessment whether any loss allowance has to be provided for using the lifetime Expected Credit Loss (ECL) method.

iii. Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company’s board of directors are responsible for liquidity, funding as well as settlement management.

The Company is predominantly equity financed which is evident from the capital structure table. Further, the Company has always been a net cash Company with cash and bank balances along with current financial assets which is predominantly receivables.

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Code on Social Security 2020 (“the Code”) relating employee benefits, during the employment and post employment, has received presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quanitifying the financial impact are yet to be issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.

Dividends:

i) The Board of directors of the Company have declared an interim dividend of Rs. 3/- (previous year: Rs.6/-) per equity share of Rs.10/- fully paid up share during the year ended March 31, 2023.

ii) The Board of directors of the Company have proposed final dividend of Rs.4/- (Previous Year: Rs.2.50/-) per equity share of Rs.10/- fully paid up for the year ended March 31, 2023 which is subject to approval of the members.

Additional Disclosures:

(i) Transactions and balances with companies which have been removed from register of Companies [struck off companies] as at the above reporting periods is Nil.

(ii) The Company has not traded / invested in Crypto currency.

(iii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(iv) The Company is not a declared wilful defaulter by any bank or financial Institution or other lender.

(v) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(vii) Satisfaction of charges registered with HSBC Bank is pending as on March 31, 2023 for the period exceeding 90 days.

The Board of Directors of the company has approved the merger of ASM Digital Engineering Private Limited with the company (w.e.f. 01.04.2023). The company has filed necessary documents with the National Company Law Tribunal(NCLT) and required accounting treatment will be given with effect from the date approved by NCLT.

RECENT AMENDMENTS TO STANDARDS:

Ministry of Corporate Affairs (“MCA”) notifies newstandards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of financial Statements:

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors:

This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates.

Ind AS 12 - Income Taxes:

This amendment has narrowed the scope of the initial recognition exemption so that it doesnot apply to transactions that giverise to equal and off setting temporary differences.

The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The amendments are not expected to have a material impact on the Company.

Previous year figures have been regrouped/ recasted wherever necessary to conform with current year figures.

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Mar 31, 2019

1. Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, promote rural and nationally recognized sports, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

a) Gross amount required to be spent by the Company during the year is Rs.1.46 million

b) Amount spent during the year on the following:

2. Events occurring after balance sheet date:

The Board of directors of the Company have proposed final dividend of Rs. 3 per equity share of Rs.10/- fully paid up for the year ended March 31, 2019.

3. Recent Accounting Pronouncements:

Ind AS 116 Leases was notified by MCA on March 30, 2019 and it replaces Ind AS 17 Leases, including appendices thereto. Ind AS 116 is effective for annual periods beginning on or after April 1, 2019. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for lessees - leases of ‘low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

Lessees will be also required to premeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.

Lessor accounting under Ind AS 116 is substantially unchanged from today’s accounting under Ind AS 17. Lessors will continue to classify all leases using the same classification principle as in Ind AS 17 and distinguish between two types of leases: operating and finance leases.

The Company intends to adopt these standards from April 1, 2019. As the Company does not have any material leases, therefore the adoption of this standard is not likely to have a material impact in its Financial Statements.

4. Previous year figures have been regrouped/ recanted wherever necessary to conform with current year figures.

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Mar 31, 2018

1. CORPORATE INFORMATION

ASM Technologies Limited. (“the Company), established in 1992, is a pioneer in providing world Class Consulting Services in the areas of Engineering Services and Product Engineering Services with successful Offshore Development & Support centres in India and overseas for its global clientele. The shares of the Company are listed in Bombay Stock Exchange.

2.1 Recent accounting pronouncements

Standards issued but not yet effective

Through a Notification dated 28th March 2018, the Ministry of Corporate Affairs has indicated 1st April 2018 as the effective date for the implementation of Ind AS 115- Revenue from Contracts with Customers. In addition, limited amendments have been made to some other Ind AS standards (Ind AS’s 2, 12, 21, 28 and 40).

The company is in the process of assessing the impact of the introduction of Ind AS 115- Revenue from Contracts with Customers and the limited amendments to the other Ind AS Standards. The impact, if any, will be disclosed in the financial statements for the year ended March 31, 2019.

3. First-time adoption of Ind AS

These financial statements of the Company for the year ended March 31, 2018 have been prepared in accordance with Ind AS. For the purpose of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 - “First time adoption of Indian Accounting Standard”, with April 1, 2016 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 2.1 have been applied in preparing the standalone financial statements for the year ended March 31, 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance Sheet, Statement of Profit and Loss, is set out in Note 3.2 to 3.5. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in note 3.1.

3.1 Exemptions availed on first time adoption of Ind AS 101

(i) Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its PPE as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and Ind AS 40 Investment Property.

Accordingly, the Company has elected to measure all of its PPE, investment property and intangible assets at their Previous GAAP carrying value.

(ii) Ind AS 27 requires investments in subsidiaries to be recorded at cost or in accordance with Ind AS 109 in its separate financial statements. However, Ind AS 101 provides an option to measure that investment at one of the following amounts in case the Company decides to measure such investment at cost:

a. Cost as per Ind AS 27 or

b. Deemed cost, which is:

i. Fair value at the entity’s date of transition to Ind AS

ii. Previous GAAP carrying amount at that date

The Company has elected to measure its investments in subsidiaries using deemed cost at the previous GAAP carrying amount as at the date of transition to Ind AS.

3.2 Exceptions applied:

a) Ind AS 101 requires an entity estimates in accordance with Ind ASs at the date of transition to Ind AS to be in consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies), unless there is objective evidence that those estimates were in error.

The Company’s estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required.

- Impairment of financial asset based on expected credit loss model.

b) Ind AS 101 requires a first time adopter to apply the de-recognition provision of Ind AS 109 prospectively for transitions occurring on or after the date of transition to Ind AS.

The Company has applied de-recognition of Ind AS 109 prospectively from the date of transition to Ind AS.

Notes:

1. Under Ind AS, financial assets and financial liabilities designated at fair value through profit and loss (FVTPL) are fair valued at each reporting date with changes in fair value being recognized in the statement of profit and loss. Under previous GAAP, they were measured at cost. Accordingly, adjustments have been made to interest-free lease deposits of long-term nature by restating the same by recognising them initially at fair value and subsequently at amortised cost. Thereby, interest income on deposits have been recognised using effective interest method under "Other income" and rental expense recognised on the straight line method over the period.

2. Under Previous GAAP, rental expenses to be recognised on straight-line basis by equalising the rental payments payable over non-cancellable lease period as against incremental mode of actual payment agreed upon. However, as per Ind AS, equalising the rental expenses over the non-cancellable period of lease is not required if the increment contracted for is for compensating general inflation in cost of maintaining the property of the lessor. Accordingly, rent equalisation reserve earlier recognised for equalising rent has been reversed.

3. Under Previous GAAP, there was no specific accounting standard for investment property. Accounting standard on investments in general required to recognise the investment at cost and recognise dimunition in value which is not temporary. However, as per Ind AS provides specific standard on Investment property which requires recognition of investment property at cost less depreciation. Accordingly, depreciaition is charged on investment property.

4. Under Ind AS, all financial instruments are to be initially recognised at fair value and subsequent measurement shall be either at amortised cost or FVTPL or FVTOCI depending on the nature of instrument. Accordingly, borrowings, which are financial liabilities are intially recognised at fair value. Upfront processing charges collected by bank on disbursement is thereby deducted from the loan amount and recognised over the period of borrowing using effective interest rate method as interest cost.

5. Under Ind AS, actuarial gains/losses on actuarial valuation of defined benefit obligation are to be recognised under Other Comprehensive Income (OCI) as against Previous GAAP where it was recognised in statement of profit or loss.

6. Under Previous GAAP, dividend proposed in a board meeting subsequent to close of financial year is an adjustable event and to be recognised in the year to which it relates to. However, under Ind AS, proposed dividend is not an adjustable event and is to be recognised in the year in which the same is approved.

Defined contribution plan

The Company also has defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs. 23.42 million (For 2016-17 Rs. 21.43 million)

4. Leases

Operating lease: Company as lessee

The Company has operating leases that are non-cancellable for specified periods under arrangements. Rental expense included in the statement of profit and loss for the year ended March 31, 2018 amounts to Rs.15.17 million (March 31, 2017: Rs.12.37 million).

Future minimum lease rentals payable under non-cancellable operating lease agreements as at March 31, 2018, March 31, 2017 and April 1, 2016 are as follows:

5. Related Party Disclosures

i) Names of related parties and related party relationship

Name of entity Relationship

Pinnacle Talent Inc, USA Wholly owned subsidiary

Advanced Synergic Pte Ltd, Singapore Wholly owned subsidiary

ESR Associates Inc, USA Step-down subsdiary

IDS Systems LLP Associate Company

IDS Systems Pvt Ltd Company in which directors are interested

ii) Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

6. Capital and other commitments

(a) Company has committed to contribute Rs.30 milion to a venture capital fund out of which Rs.9 million has been paid so far. Amount of such capital committment outstanding as at March 31, 2018 is Rs.21 million. (March 31, 2017: Rs. Nil and April 1, 2016: Rs. Nil)

(b) For commitments relating to lease arrangements, refer note 25.

7. Based on the information available with the Company, there are no vendors who are registered as Micro and Small Enterprises under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act) as at March 31, 2018, March 31, 2017 and as at April 1, 2016.

8. Segment reporting

The Company belives that assets and liabilities used in the business are not identified to any of the reportable segments, as these are used interchangeably between segments. Accordingly the same has not been provided

Significant Clients

The Company’s 90% of revenue is derived from three customers (Previous year: 93% of revenue from three customers).

Product-wise Information

Company provides single service and hence no product-wise information is necessary to be given.

Non-current operating assets:

Company does not hold any non-current operating assets outside India (which is the entity’s country of domicile).

9. Income taxes

The major components of income tax expense for the years ended March 31, 2018 and March 31, 2017 are:

10. Financial risk management objectives and policies

The Company’s principal financial liabilities comprise of trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations to support its operations. The Company’s principal financial assets include trade and other receivables, rental and bank deposits and cash and cash equivalents, that derive directly from its operations.

The Company is exposed to credit and liquidity risk. The Company’s senior management oversees the management of these risks and the Board of Director’s reviews these activities.

i. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument would fluctuate due to changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include trade payables. The Company is not exposed to price risk on the financial date.

The sensitivity analysis in the following sections relate to the positions as at March 31, 2018 and March 31, 2017.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other postretirement obligations and provisions.

The following assumption has been made in calculating sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

a. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The operations of the Company are both in India and overseas. Company has been providing services to overseas customers. Hence, the Company is currently exposed to the currency risk arising from fluctuation of these foreign currencies and Indian rupee exchange rates.

The following table presents foreign currency risk for the below financial liabilities:

b. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations. The Company’s borrowings are primarily a mix of short-term working capital facilities and long-term borrowings.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). At the end of every financial year, the Company makes an assessment whether any loss allowance has to be provided for using the lifetime Expected Credit Loss (ECL) method.

ii. Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company’s board of directors are responsible for liquidity, funding as well as settlement management.

The table below provides details regarding the contractual maturities of significant financial liabilities

Fair Value Hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within 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 assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents fair value hierarchy of assets and liabilities as at March 31, 2018

11. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders and long-term and short-term borrowings.

The primary objective of the Company’s capital management is to maximise the shareholder’s value.

The Company is predominantly equity financed which is evident from the capital structure table. Further, the Company has always been a net cash Company with cash and bank balances along with current financial assets which is predominantly receivables.

12. Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, promote rural and nationally recognised sports, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.a) Gross amount required to be spent by the Company during the year is Rs.1.89 millions

b) Amount spent during the year on the following:

13. Events occurring after balance sheet date:

The Board of directors of the Company have recommended dividend of Rs. 2.50 per equity share of Rs. 10/fully paid up for the year ended March 31, 2018.

14. Approval of Financial Statements:

The financial statements were approved for the issue by the board of directors on May 24, 2018

15. Previous year figures have been regrouped/ recasted wherever necessary to confirm with current year figures.

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Mar 31, 2017

1 DISCONTINUING OPERATIONS

During the previous financial year Company has transferred its Enterprise Application business to Subsidiary of Alten SA, France, for a consideration of Rs.18.49 Crores. Amount received towards sale of business has been shown as profit from discontinuance of business after deducting the direct cost of sale.

2 SEGMENT REPORTING (AS 17)

In accordance with the Accounting Standard -17 (AS -17) “Segment Reporting” which became mandatory for reporting from 1st April 2001, the Company states that it is in the business of software development and IT related services, The Company’s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

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Mar 31, 2015

1. CORPORATE INFORMATION

ASM Technologies Limited., established in 1992, is a pioneer in providing world Class Consulting Services in Enterprise Solutions for the Packaged ERP Products and in Enterprise Product Development for SMB Segment and in Technology Solutions covering Embedded Systems and System Software to its Global Clientele.

ASM offers a broad spectrum of enterprise services such as configuration, implementation, customization, end-user training and documentation, Post Implementation Support & Maintenance across leading commercial off-the-shelf products like SAP, Oracle Applications, PeopleSoft, JDEdwards and Microsoft Enterprise products. ASM has been providing consulting Services (Product Engineering, Development, Product Support, Porting, Testing and Test Automation) to its Global Clientele in the Embedded Software and System Software space.

ASM has been running ODCs both in India and Overseas successfully for its International Clients providing cost effective Onsite, Offsite and Offshore Services through a team of experienced Engineers and Consultants with extensive technical and Domain expertise, which reinforces its ability to provide solutions to Client needs.

A. Following is the list of related parties

1. Wholly owned subsidiaries

a. Pinnacle Talent Inc, USA

b. Advanced Synergic Pte Ltd, Singapore

2. Step down subsidiaries

a. Abacus Business Solutions Inc, USA

b. ESR Associates Inc, USA

3. Associate company : IDS Systems Pvt Ltd

4. Directors : ASM Technologies Ltd

Mr. M R Vikram, Mr. Rabindra Srikantan, Prof. B S Sonde and Mr. Shekar Viswanathan

5. Key management personnel : Mr. N Krishnan, Mr. Pramod, Mr. Kumar Vaibhav, Ms. Vani, Ms. P N Lakshmi, Mr. SLN Murthy, Mr. Srinivasa Murthy Seshadri

(Rs. in lakhs) 6 CONTINGENT LIABILITIES As at March 31 2015 2014

Corporate guarantee given to Indian Bank, Singapore 2,425 2,164 (on behalf of wholly owned subsidiary, Advanced Synergic Pte Ltd)

Corporate guarantee given to State Bank of India, San Jose, USA 438 358 (on behalf of step down subsidiary, Abacus Business Solutions Inc)

Service Tax claim (Company filed appeal against the order) 159 -

7 Previous year's figures have been recast/regrouped wherever necessary to confirm to the current year's clasifications/presentation

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Mar 31, 2014

1. RELATED PARTY TRANSACTIONS (AS 18) A Following is the list of related parties.

1. Wholly Owned Subsidiaries :

a. Pinnacle Talent Inc, USA

b. Advanced Synergic Pte Ltd., Singapore.

2. Step down Subsidiaries :

a. ESR Associates Inc, USA

b. Abacus Business Solutions Inc.,USA

3. Associate Company : IDS Systems Pvt Ltd

4. Directors : ASM Technologies Limited

Mr. M R Vikram, Mr. Rabindra Srikantan, Prof. B S Sonde and Mr. Shekar Viswanathan

5. Key Management Personnel : Mr. N Krishnan, Mr.Pramod, Mr. Kumar Vaibhav, Ms. Anitha Singan,

Ms. Vani, Mr.Basavaraja A M, Ms. P N Lakshmi

2. SEGMENT REPORTING (AS 17)

In accordance with the Accounting Standard - 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company''s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues

(Rs. in lakhs)

for the year ended March 31, 3. CONTINGENT LIABILITIES 2014 2013

Corporate Guarantee given to Indian Bank, Singapore 2,163.78 2,163.78

(On behalf of wholly owned subsidiary, Advanced Synergic Pte Ltd.)

Corporate Guarantee given to State Bank of India, San Jose. USA 358.09 358.09

Total 2,521.87 2,521.87

4. Previous year''s figures have been recast / regrouped wherever necessary to conform to the current year''s classifications/presentation

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Mar 31, 2013

1.1. The accounts of the company have been prepared using the accrual method based on the historical cost convention.

1.2. Income: Sales include sale of software and Software services. Revenue from sale of software is recognized wherever the sale has been completed with the passing of the title and billed to the clients as per the specific contracts. Revenue from sale of software services is recognized on the basis of percentage of completion method. Miscellaneous income mainly consists of reimbursement of expenses and the same is accounted on accrual basis.

1.3. Expenditure: Expenses are accounted on accrual basis and provision for known liabilities or loss made in the same year.

1.4. Fixed Assets: Fixed Assets are stated at cost of acquisition less accumulated depreciation. Capital-work-in progress comprises outstanding advances paid to acquire fixed assets and cost of fixed assets that are not yet ready for their intended use at the reporting date. Goodwill arising on consolidation or acquisition is not amortized but is tested for impairment.

1.5. Depreciation: Depreciation is provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation for the assets purchased/sold during the year is proportionately charged. Individual assets acquired for less than Rs. 5,000/- are entirely depreciated in the year of acquisition.

1.6. Gratuity Benefit payable to employees of the company as provided in the books of accounts is based on Actuarial Valuation. Table below shows present value of defined benefit obligation:

1.7. Foreign currency transactions: In case of sales made to clients outside India, income is accounted on the basis of the exchange rate prevailing at the end of the previous month of sale. Adjustments are made for any change in sales proceeds on conversion into Indian currency upon actual receipt. Expenditure in foreign currency is accounted at the conversion rate prevailing at the end of the previous month of expenditure is incurred. Debtors and Creditors are stated at exchange rate prevailing on the date of Balance Sheet.

Note: The company has filed application with Central Government seeking approval for re-appointment and Increase in remuneration payable to Managing Director from Rs.31.44 Lakhs to Rs.60.00 Lakhs plus 1% of the Net Profits of the Company with effect from 1.4.2011. After the approval from the Central Government differential amount will be paid as arrears in the year of approval.

2.1 Earnings per share

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.

2.2 Segment Reporting - (AS - 17)

In accordance with the Accounting Standard - 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company''s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

2.3 Previous year''s figures have been recast / regrouped wherever necessary to conform to the current year''s classifications/ presentation.

The accompanying consolidated financial statements include the accounts of ASM Technologies Limited and its following wholly owned Subsidiaries:-

1. Pinnacle Talent Inc, USA

2. Advanced Synergic Pte Ltd, Singapore

And

Step down subsidiary:-

1. ESR Associates Inc, USA,

2. Abacus Business Solutions, Inc.

2.4 Related Party Transactions – (AS – 18)

The Company had transactions with the following related parties.

1. Subsidiaries: Pinnacle Talent Inc, USA & Advanced Synergic Pte Ltd, Singapore.

2. Step down Subsidiary: ESR Associates Inc & Abacus Business Solutions, Inc.

3. Associate Company: IDS Systems Pvt Ltd

4. Directors: ASM Technologies Limited

Mr. M R Vikram, Mr. Rabindra Srikantan, Prof. B S Sonde and Mr. Shekar Viswanathan

5. Directors: Advanced Synergic Pte Ltd

Mr. Venkataramaiyer Sivaramakrishnan and Mr. Rabindra Srikantan

6. Key Management Personnel: Mr. Sundar Ramanathan, Mr. N Krishnan, Mr. Shalabh Singh, Mr. Pramod, Mr. Kumar Vaibhav, Ms. Anitha Singan, Ms. Vani, Mr. Basavaraja A M, Ms. P N Lakshmi, Mr. John Seitz, Mr. Jay Belur, Mr. Dharmesh Parikh, Mr. David Joffe and Mr. Alex Marzano,

Note: The company has filed an application with Central Government seeking approval for re-appointment and Increase in remuneration pay able to Managing Director from Rs. 31.44 Lakhs to Rs. 60.00 Lakhs plus 1 % of the Net Profits of the Company with effect from 1.4.2011. After the approval from the Central Government differential amount will be paid as arrears in the year of approval.

2.5 EARNINGS PER SHARE

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the period.

2.6 SEGMENT REPORTING - (AS - 17)

In accordance with the Accounting Standard - 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company''s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

2.7 Previous year''s figures have been recast / regrouped wherever necessary to conform to the current year''s classifications/ presentation..

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Mar 31, 2012

1.1 Related Party Transactions - (AS - 18)

The Company had transactions with the following related parties.

1. Wholly Owned Subsidiaries:

1. Pinnacle Talent Inc, USA

2. Advanced Synergic Pte Ltd, Singapore

2. Step down subsidiary :-

1. ESR Associates Inc, USA,

2. Abacus Business Solutions, Inc.

3. IDS Systems Private Limited

4. Directors: Mr. M R Vikram, Mr. Rabindra Srikantan, Dr. R P Shenoy, Prof. B S Sonde and Mr. Shekar Viswanathan

5. Key Management Personnel Mr. N Krishnan, Mr. T S Shanbhogue, Mr. Pramod Rao, Ms. Anitha Singan, Mr. Kumar Vaibhav, Ms. Vani, Mr. Balaji Padmakumar, Mr. Vasant Bhat and Ms. P N Lakshmi.

Note: The company has applied to Central Government for Increase in Remuneration of Managing Director from Rs.31.44 Lakhs per annum to Rs.60.00 Lakhs per annum with effect from 8.11.2011. After the approval from the central Government differential amount will be paid as arrears in the year of approval.

1.2 EARNINGS PER SHARE

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.

1.3 CAPITAL COMMITMENT

The estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) is Rs. 22.84 Lakhs.

1.4 SEGMENT REPORTING - (AS - 17)

In accordance with the Accounting Standard - 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company's primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

Rs. In Lakhs

Particulars 31.03.2012 31.03.2011

1.5 CONTINGENT LIABILITY

Corporate Guarantee given to Indian Bank, Singapore 1,900.91 1,900.91 (on behalf of wholly owned subsidiary, Advanced Synergic Pte Ltd)

Corporate Guarantee given to State Bank of India, Chicago - 178.88 (on behalf of wholly owned subsidiary, Pinnacle Talent Inc)

Corporate Guarantee given to State Bank of India, San Jose 358.09 - (on behalf of step down subsidiary, Abacus Business Solutions Inc.)

1.6 Previous year's figures have been recast / regrouped wherever necessary to conform to the current year's classifications / presentation.

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Mar 31, 2011

1. Paisas are rounded off to the nearest rupee.

2. The operations of the company are to develop software and software services, which cannot be expressed in terms of units/ quantity.

Hence it is not possible to give the quantitative information as required by the Schedule VI of the Companies Act, 1956.

3. Deferred Taxes

In accordance with the Accounting Standard – 22 (AS-22) "Accounting for Taxes on Income" which became mandatory for reporting from 1st April 2001, the tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations.

4. Related Party Transactions - (AS - 18)

The Company had transactions with the following related parties.

Wholly Owned Subsidiaries:

1. Pinnacle Talent Inc, USA

2. Advanced Synergic Pte Ltd, Singapore USA

And

Step down subsidiary :-

1. ESR Associates Inc, USA,

2. Abacus Business Solutions, Inc. USA

IDS Systems Private Limited

Directors: Mr. M R Vikram, Mr. Rabindra Srikantan, Dr. R P Shenoy and

Prof. B S Sonde,

Key Management Personnel Mr. N Krishnan, Mr. T S Shanbhogue, Mr. Harisimha, Mr. Pramod, Ms. Anitha Singan, Ms. Vani, Mr. Balaji Padmakumar, Mr. Vasant Bhat and Ms. P N Lakshmi.

5. Earnings per share

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.

6. Capital Commitment

The estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) is Rs. 51.81 Lakhs.

7. Segment Reporting - (AS - 17)

In accordance with the Accounting Standard – 17 (AS-17) "Segment Reporting" which became mandatory for reporting from 1st April 2001, the company states that it is in the business of software development and I T related services. The Company’s primary reporting segment is geographical as the revenues in non-software related areas are not more than 10% of the gross revenues.

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Mar 31, 2010

1. The companys contribution to the Gratuity has been provided based on the calculation as per actuarial valuation.

2. Foreign currency transactions: In case of sales made to clients outside India, income is accounted on the basis of the exchange rate prevailing at the end of the previous month of sale. Adjustments are made for any change in sales proceeds on conversion into Indian currency upon actual receipt. Expenditure in foreign currency is accounted at the conversion rate prevailing at the end of the previous month of expenditure is incurred. Debtors and Creditors are stated at exchange rate prevailing on the date of Balance Sheet.

3. Previous year figures have been regrouped I rearranged wherever necessary.

4. The operations of the company are to develop software and software services, which cannot be expressed in terms of units/quantity.I it is not possible to give the quantitative information as required by the Schedule VI of the Companies Act, 1956.

5. Income Tax includes Rs. 20,23,118/-paid for theearlier years.

6. Deferred Taxes

In accordance with the Accounting Standard - 22 (AS-22) "Accounting for Taxes on Income" which became mandatory for rep< from 1st April 2001, the tax effect is calculated on the accumulated timing differences at the end of an accounting period bas prevailing enacted regulations.

7. Related Party Transactions - (AS - 18)

The Company had transactions with the following related parties.

Wholly Owned Subsidiaries: Pinnacle Talent Inc, USA & Advanced Synergic Pte Ltd, Singapore.

IDS Systems Private Limited

Directors: Mr. M R Vikram, Mr. Rabindra Srikantan, Dr. R P Shenoy, Prof. B S Sonde,

Key Management Personnel Mr. N Krishnan, Mr. T S Shanbhogue, Mr. Harisimha, Mr. Pramod, Ms. Anitha Singan, Ms.

Mr. Balaji Padmakumar Mr. M S Rajesha and Ms. P N Lakshmi.

8. Earnings per share

In accordance with the Accounting Standard 20 (AS-20) "Earning per share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.