Accounting Policies of Megri Soft Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies

2.1. Basis of Preparation of Financial Statements— This note provides a list of the
significant accounting policies adopted in preparing these financial statements. These
policies have been consistently applied except where a newly issued accounting standard
is initially adopted or a revision to an existing accounting standard requires a change in
accounting policy hitherto in use.

2.1.1. Compliance with Ind AS - These standalone financial statements are prepared in
accordance with the provisions of the Companies Act, 2013 (''''the Act''''), guidelines
issued by the Securities and Exchange Board of India (SEBI) and Indian Accounting
Standard (Ind AS) under the historical cost convention on accrual basis except for
certain financial instruments which are measured at fair values, defined benefit
liability/(asset) which is recognized at the present value of defined benefit
obligation less fair value of plan assets. The Ind AS are prescribed under Section
133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and relevant amendment rules issued thereafter.

Accounting policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use. The material
accounting policy information used in preparation of the audited standalone
interim financial statements have been discussed in the respective notes.

The financial statements are presented in Indian Rupees, and all amounts
disclosed in the financial statements and notes are expressed in thousands,
rounded to the nearest thousand, in accordance with the requirements of Schedule
III of the Companies Act, 2013.

2.1.2. Presentation of financial statements

The financial statements (including balance sheet, statement of profit and loss and
the statement of changes in equity) are prepared and presented in accordance
with the format prescribed in Division II of Schedule III to the Companies Act,
2013, as amended from time to time. The statement of cash flows has been
prepared using the indirect method. The disclosure requirements with respect to
items in the balance sheet and statement of profit and loss, as prescribed in
Schedule III to the Act, are presented by way of notes forming part of the financial
statements along with the other notes required to be disclosed under the notified
Accounting Standards.

2.1.3. Operating cycle for current and non-current classification

The Company identifies assets/liabilities as current if the same are
receivable/payable within twelve months,s else the same are considered as
non-current

2.1.4. Use of Estimates and Judgments

Preparation of financial statements in conformity with Indian Accounting
Standards (Ind AS) requires the management of the Company to make estimates
and assumptions that affect the income and expense reported for the period and
assets, liabilities and disclosures reported as of the date of the financial
statements. Examples of such estimates include useful lives of tangible and
intangible assets, allowance for expected credit loss, future obligations in respect
of retirement benefit plans, considering the extension period for the determination
of lease term, etc. Actual results could vary from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimates are revised, and by
giving prospective impact in the standalone financial statements.

2.1.5. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to
the existing standards under Companies (Indian Accounting Standards) Rules as
issued from time to time. For the year ended March 31, 2025, MCA has notified Ind
AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The
Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statement.

2.2. Property, plant and equipment - Property, plant and equipment are stated at historical
cost less depreciation. Historical cost includes expenditure that is directly attributable to
the acquisition of the items. Subsequent costs are included in the asset''s carrying amount
or recognized as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company 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 profit or loss during the reporting period in which they are incurred.
Depreciation is provided pro-rata on the straight line method over the estimated useful
lives of assets, based on internal assessment and independent technical evaluation done
by the Management.

Gains and losses on disposals are determined by comparing net disposal proceeds with
the carrying amount of the asset. These are included in profit or loss within other income.

2.3. Intangible Assets - Intangible assets are stated at cost less accumulated amortization and
impairment, wherever applicable. Intangible assets are amortized over their respective
individual estimated useful lives on a straight-line basis from the date they are available
for use. The estimated useful life of an identifiable asset is based on a number of factors,
including the effects of obsolescence, demand, competition and other economic factors
(such as the stability of the industry and known technological advances), and the level of
maintenance expenditures required to obtain the expected future cash flow from the asset.
The research costs are expensed as incurred. The development costs, which can be
capitalized, include the cost of material, direct labour and overhead costs that are directly
attributable to preparing the asset for its intended use. Amortization methods and useful
lives are reviewed periodically including at each financial year''s end.

2.4. Impairment of non-financial assets -

Assessment is done at each balance sheet date as to whether there is any indication that
an asset may be impaired. If any such indication exists or when annual impairment testing
for an asset is required, an estimate of the recoverable amount of the
asset/cash-generating unit is made. The recoverable amount is higher of an asset''s or
cash-generating unit''s fair value less costs of disposal and its value in use. Value in use is
the present value of estimated future cash flows expected to arise from the continuing use
of an asset and from its disposal at the end of its useful life. For the purpose of assessing
impairment, the recoverable amount is determined for an individual asset unless the asset
does not generate cash inflows that are largely independent of those from other assets or
groups of assets. The smallest identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from other assets or
groups of assets is considered as a cash generating unit (CGU). An asset or CGU whose
carrying value exceeds its recoverable amount is considered impaired and is written down
to its recoverable amount. Assessment is also done at each balance sheet for possible
reversal of an impairment loss recognized for an asset in prior accounting periods.

2.5. Foreign currency translations

2.5.1. Functional and presentation currency -Items included in the financial
statements of the Company are measured using the currency of the primary
economic environment in which the Company operates (''the functional currency’)
i.e., Indian Rupee (INR) which is its presentation currency as well.

2.5.2. Initial recognition - On initial recognition, all foreign currency transactions are
recorded by applying to the foreign currency amount the spot exchange rate
between the functional currency and the foreign currency at the date of the
transaction.

2.5.3. Subsequent recognition - As at the reporting date, foreign currency monetary
items are translated using the closing rate and non-monetary items that are
measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the initial transaction. Exchange gains and losses
arising on the settlement of monetary items or on translating monetary items at
rates different from those at which they were translated on initial recognition
during the year or in previous financial statements are recognised in profit or loss
in the year in which they arise.

2.5.4. Translation of foreign operations- The financial statements of foreign
operations are translated using the principles and procedures mentioned above
since these businesses are carried on as if it is an extension of the Company’s
operations.

2.6. Revenue Recognition

2.6.1. Revenue is recognised upon transfer of control of promised services to customers
in an amount that reflects the consideration we expect to receive in exchange for
those services.

2.6.2. Dividend income is recognized as and when the right to receive is established.
Interest on Bank fixed deposits is recognized on an accrual basis on certificates of
interest issued by banks.

2.6.3. Export benefits and other benefits are accounted for on an accrual basis. Export
entitlements are recognized as a reduction from material consumption when the
right to receive credit is established in respect of the exports made and when
there is no significant uncertainty regarding the ultimate collection of the
relevant export proceeds.

2.7. Income tax

2.7.1. 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 for each
jurisdiction adjusted by changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.

2.7.2. The current income tax is calculated on the basis of the tax rates and the tax laws
enacted or substantively enacted at the reporting date. Management periodically
evaluates positions taken in tax returns with respect to situations in which
applicable tax regulations are subject to interpretation. It establishes provisions or
makes reversals of provisions made in earlier years, where appropriate, on the
basis of amounts expected to be paid to / received from the tax authorities.

2.7.3. Deferred tax is recognized for all the temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial
statements, subject to the consideration of prudence in respect of deferred tax
assets. Deferred tax assets are recognized and carried forward only if it is probable
that sufficient future taxable amounts will be available against which such deferred
tax assets can be realised. Deferred tax assets and liabilities are measured using
the tax rates and tax laws that have been enacted or substantively 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. The
carrying amount of deferred tax assets are reviewed at each Balance Sheet date
and reduced to the extent that it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are

recognised to the extent that it has become probable that future taxable profits will
allow the deferred tax asset to be recovered.

2.7.4. Deferred tax liabilities are not recognised for temporary differences between the
carrying amount and tax bases of investments in subsidiaries, associates and
interest in joint arrangements where the company is able to control the timing of
the reversal of the temporary differences, and it is probable that the differences
will not reverse in the foreseeable future.

2.7.5. Deferred tax assets are not recognised for temporary differences between the
carrying amount and tax bases of investments in subsidiaries, associates and
interest in joint arrangements where it is not probable that the differences will
reverse in the foreseeable future and taxable profit will not be available against
which the temporary difference can be utilised.

2.7.6. Current and deferred tax is recognised in profit or loss, except to the extent that it
relates to items recognised in other comprehensive income or directly in equity. In
this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.

2.7.7. Deferred tax assets and liabilities are offset if a legally enforceable right exists to
set off current tax assets and liabilities and the deferred tax balances relate to the
same taxable authority. Current tax assets and liabilities are offset where the entity
has a legally enforceable right to offset and intends either to settle on a net basis or
to realize the asset and settle the liability simultaneously.

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Mar 31, 2024

2. Significant Accounting Policies

2.1. Basis of Preparation of Financial Statements - This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in accounting policy hitherto in use.

2.1.1. Compliance with Ind AS - These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (''the Act'') [Companies (Indian Accounting Standards) Rules, 2015, as amended by notification dated March 31, 2016] and other relevant provisions of the Act.

All assets and liabilities have been classified as current or non-current as per the Company’s operating cycle and other criteria set out in the Schedule III (Division II) to the Companies Act, 2013. Based on the nature of services and the time between the rendering of service and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current and noncurrent classification of assets and liabilities.

The financial statements are presented in Indian Rupees and all amounts disclosed in the financial statements and notes have been rounded off upto two decimal points to the nearest Thousands (as per the requirement of Schedule III), unless otherwise stated.

2.1.2. Historical Cost Convention- The Financial statements have been prepared on a historical cost basis, except for the following:

• Certain financial assets and liabilities (including derivative instruments) which are measured at fair value / amortised cost;

• Defined benefit plans-plan assets measured at fair value; and

• Share based payments

2.1.3. Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, as below.

Ind AS 16 - Property Plant and Equipment - The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognized in the profit or loss but deducted from the directly attributable costs considered as part of the cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022. The Company has evaluated the amendment and there is no impact on its standalone financial statements.

Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets - The amendment specifies that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract*. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labor, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022, although early adoption is permitted. The Company has evaluated the amendment and there is no impact on its standalone financial statements.

2.2. Property, plant and equipment - Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company 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 profit or loss during the reporting period, in which they are incurred. Depreciation is provided on a pro-rata basis on the straight line method over the estimated useful lives of assets, based on internal assessment and independent technical evaluation done by the Management.

Gains and losses on disposals are determined by comparing net disposal proceeds with the carrying amount of the asset. These are included in profit or loss within other income.

2.3. Intangible Assets - Intangible assets are stated at cost less accumulated amortization and impairment, wherever applicable. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis from the date they are available for use. The estimated useful life of an identifiable asset is based on a number of factors, including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flow from the asset. The research costs are expensed as incurred. The development costs, which can be capitalized, include the cost of material, direct labour and overhead costs that are directly attributable to preparing the asset for its intended use. Amortization methods and useful lives are reviewed periodically including at each financial year''s end.

2.4. Impairment of non-financial assets -

Assessment is done at each balance sheet date as to whether there is any indication that an asset may be impaired. If any such indication exists or when annual impairment testing for an asset is required, an estimate of the recoverable amount of the asset/cash-generating unit is made. The recoverable amount is higher of an asset''s or cash-generating unit''s fair value less costs of disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. For the purpose of assessing impairment, the recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. The smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit (CGU). An asset or CGU whose carrying value exceeds its recoverable amount is considered impaired and is written down to its recoverable amount. Assessment is also done at each balance sheet for possible reversal of an impairment loss recognized for an asset in prior accounting periods.

2.5. Foreign currency translations

2.5.1. Functional and presentation currency -Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (‘the functional currency’) i.e., Indian Rupee (INR) which is its presentation currency as well.

2.5.2. Initial recognition - On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

2.5.3. Subsequent recognition - As at the reporting date, foreign currency monetary items are translated using the closing rate and non-monetaiy items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction. Exchange gains and losses arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the year or in previous financial statements are recognised in profit or loss in the year in which they arise.

2.5.4. Translation of foreign operations- The financial statements of foreign operations are translated using the principles and procedures mentioned above since these businesses are carried on as if it is an extension of the Company''s operations.

2.6. Revenue Recognition

2.6.1. Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration we expect to receive in exchange for those services.

2.6.2. Dividend income is recognized as and when the right to receive is established. Interest on Bank fixed deposits is recognized on an accrual basis on certificates of interest issued by banks.

2.6.3. Export benefits and other benefits are accounted for on an accrual basis. Export entitlements are recognized as a reduction from material consumption when the right to receive credit is established in respect of the exports made and when there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

2.7. Income tax

2.7.1. 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 for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

2.7.2. The current income tax is calculated on the basis of the tax rates and the tax laws enacted or substantively enacted at the reporting date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation. It establishes provisions or makes reversals of provisions made in earlier years, where appropriate, on the basis of amounts expected to be paid to / received from the tax authorities.

2.7.3. Deferred tax is recognized for all the temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognized and carried forward only if it is probable that sufficient future taxable amounts will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively 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. The carrying amount of deferred tax assets are reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

2.7.4. Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, associates and interest in joint arrangements where the company is able to control the timing of the reversal of the temporary differences, and it is probable that the differences will not reverse in the foreseeable future.

2.7.5. Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, associates and interest in joint arrangements where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilised.

2.7.6. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

2.7.7. Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax assets and liabilities and the deferred tax balances relate to the same taxable authority. Current tax assets and liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

2.8. Provisions

2.8.1. Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

2.8.2. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

2.8.3. If the effect of the time value of money is material, provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects the risks specific to the liability. The increase in the provision due to the passage of time is recognized as a financial cost

2.8.4. The company has adopted the following accounting policy for making provisions in respect of income-tax cases under appeal: "In respect of disputed income-tax

demand, where the company is in appeal, provision for tax is made when the matter is finally decided."

2.9. Trade and other payables

These amounts represent liabilities for goods and services provided prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

2.10. Earnings Per Share (EPS)

2.10.1. Basic earnings per share is calculated by dividing

2.10.1.1. the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year

2.10.2. Diluted earnings per share

2.10.2.1. Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account - the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential instruments into equity shares.

2.11. Critical estimates and judgements

2.11.1. The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS that requires management to make accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies. The estimates and assumptions used in the accompanying financial statements are based upon Management''s evaluation of the relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these estimates. Key sources of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment of non-current investments and have been discussed below. Key source of estimation of uncertainty in respect of current tax expense and payable, employee benefits and fair value of unlisted subsidiary entities have been discussed in their respective policies.

2.12. Employee Retirement Benefits

2.12.1. Short term employee benefits - All employee benefits payable/available within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages and bonuses etc., are recognised in the statement of profit and loss in the period in which the employee renders the related service.

2.12.2. Post-employment benefits

Defined contribution plans - Retirement benefits in the form of a provident fund is a defined contribution scheme. The company has no obligation, other than the contribution payable to the provident fund. Payments to defined contribution plans are recognised as an expense when employees have rendered service entitling them to the contributions.

Defined benefit plans - Gratuity

The company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity payment plan provides for a lump sum payment to the vested employees at retirement, death, incapacitation while in employment or on termination of employment of an amount based on the respective employee''s salary and tenure of employment. Vesting occurs upon the completion of five years of service.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method. Re-measurements comprising of actuarial gains and losses are recognised in other comprehensive income which are not reclassified to profit or loss in the subsequent periods

2.12.3. Bonus Plans - The Company recognises a liability and an expense for bonuses. The Company recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

2.12.4. Long - term employee benefits -Leave Encashment The liability of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date Using the projected unit credit method.

2.13. Segment Reporting

The Company has primarily one business segment of IT/ITES service and accordingly there is no separate reportable segment as per Ind AS -108 ‘ Operating Segments’ specified under section 133 of the Companies Act, 2013.

2.14. Cash and Cash equivalents

Cash and cash equivalent in the balance sheet comprise cash on hand, the amount at banks and other short-term deposits with an original maturity of three months or less that are readily convertible to a known amount of cash and, which are subject to an insignificant risk of changes in value.

2.15. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments.

2.15.1. Initial Recognition and measurement - On initial recognition, all the financial assets and liabilities are recognized at its fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability except financial asset or financial liability measured at fair value through profit or loss ("FVTPL"). Transaction costs of financial assets and liabilities carried at fair value through the Profit and Loss are immediately recognized in the Statement of Profit and Loss.

2.15.2. Subsequent measurement

2.15.2.1. Financial assets carried at amortised cost - A financial asset is subsequently 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 on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

2.15.2.2. Financial assets at fair value through other comprehensive income (FVTOCI) - A financial asset is subsequently measured at fair value through other comprehensive income 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 are solely payments of principal and interest on the principal amount outstanding.

2.15.2.3. Financial assets at fair value through profit or loss (FVTPL) - A

financial asset is measured at fair value through profit and loss unless it is measured at amortized cost or at fair value through other comprehensive income.

2.15.2.4. Investments in subsidiaries - The Company has adopted to measure investments in subsidiaries at a cost in accordance with Ind AS 27 and the carrying amount as per previous GAAP at the date of transition has been considered as deemed cost in accordance with Ind AS 101.

2.15.2.5. Financial Liabilities - Financial liabilities are classified, at initial recognition, as loans and borrowings, payables, as appropriate. The Company’s financial liabilities include trade and other payables. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to short term maturity of these instruments.

2.15.3. Derecognition of financial instruments - A financial asset is derecognized 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 is derecognized when the obligation specified in the contract is discharged or canceled or expired.

2.15.4. Fair value measurement of financial instruments - The fair value of financial instruments is determined using the 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. Based on the three level fair value hierarchy, the methods used to determine the fair value of financial assets and liabilities include quoted market price, discounted cash flow analysis and valuation certified by the external valuer. In case of financial instruments where the carrying amount approximates fair value due to the short maturity of those instruments, carrying amount is considered as fair value.

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Mar 31, 2015

2.1 Basis of Preparation of Financial Statements

These financial statements have been prepared to comply with Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under the relevant provisions of the Companies Act 2013.

These Financial Statements are prepared on accrual basis under historical cost convention. These Financial Statements are presented in Indian Rupees rounded off to the nearest Rupees.

2.2 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and reported amount of revenue and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known.

2.3 Fixed Assets

a. Tangible Assets

Tangible Assets are stated at cost of acquisition along with related taxes, duties and incidental expenses related to these assets, net of accumulated depreciation and accumulated impairment, if any.

b. Intangible Assets

Intangible Assets are stated at their cost of acquisition, net of accumulated amortisation and accumulated impairment, if any. Projects whose technical & commercial feasibility is demonstrated, future economic benefits are probable, the company has an intention and ability to complete and use or sell the asset, and cost can be measured reliably, are shown as Intangible Assets under Development.

c. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

d. Gain/losses arising from disposal of fixed assets are recognised in the Statement of Profit and Loss.

2.4 Depreciation & Amortization

Tangible Assets - Depreciation on tangible assets is provided on the straight-line method over the useful life of the assets as prescribed in the Schedule II to the Companies Act 2013 except in respect of the following assets:

Client Computer - 5 years*

Intangible assets are amortised over their respective individual estimated useful lives on straight line basis, commencing from the date asset is available for use to the company.

Computer Software - 6 Years*

Web Properties - 10 Years*

(*Note: for this based on internal assessment and independent technical evaluation carried out by external valuer, the management believes that the useful life as given above best represents the period over which management expects to use the assets.)

2.5 Impairment

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

2.6 Foreign Currency Transactions

a. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate as at the date of transaction.

b. Any income or expenses on account of exchange differences either on settlement or translation/restatement is recognised in the Profit and Loss statement .

2.7 Income Taxes

Tax expense comprises of current tax & deferred tax. Income taxes are accrued in the same period that the related revenue and expenses arise. A provision is made for income tax, based on the tax liability computed, after considering tax allowances and exemptions. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant asset can be measured reliably.

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified,and thereafter a deferred tax asset or liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount of timing difference. Deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized. Deferred tax assets, other than in situation of unabsorbed depreciation and carried forward business losses, are recognized only if there is reasonable certainty that they will be realized. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each reporting date. Deferred tax assets and liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority.

2.8 Investments

Current Investments, if any, are stated at cost or fair market value, whichever is lower. Non current investments are stated at cost. Provision for diminution in the value of N on current investments is made, only if a decline is other than temporary.

2.9 Provisions & Contingent Liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability.

A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

2.10 Revenue Recognition

The company's revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue and costs, if applicable, can be measured reliably. Revenue is recognized in the Statement of Profit & Loss as follows:

* Revenue from services rendered is recognized as the service is performed.

* Revenue from the sale of Software products is recognized when the sale is completed with the passing of title.

* Incomes from domain registration, web hosting, set-up and configuration charges are recognized on activation of customer account.

* Revenue from software and web development contracts are recognized on the completion of development work.

* Interest income is recognised on accrual basis.

2.11 Earning Per Share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

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Mar 31, 2014

The significant accounting policies adopted in the preparation of this financial report are set out below and are consistent with those of the previous year unless otherwise stated.

1.1 Basis of Presentation :

The financial statements are prepared under the historical cost convention, in accordance with Indian Generally Accepted Accounting Principles ("GAAP") on the accrual basis. GAAP comprises mandatory accounting standards issued by the Institute or Chartered Accountants of India ("lCAl") and the provisions of the Companies Act, 1956, These accounting policies have been consistently applied for except primary market brokerage which is accounted on cash basis All assets and liabilities have been classified as current or non-current as per the company''s operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956.

1.2 Fixed Assets:

Fixed Assets are stated at cost of acquisition including any attributable cost to bring the assets to their working condition, less depredation which is provided using the straight-line method based on useful lives as estimated by the management. Intangible assets are stated, at their cost of acquisition. Profit/Loss on disposal of fixed assets is recognised In the Statement of Profit and Loss.

1.3 Depreciation:

Depreciation on assets for own use is provided on straight-line method on pro-rata basis at the rates prescribed in Schedule XIV to the Act. No depreciation charged on Assets not put in to use during the year. The assets which have been used by the company for tunning its revenue operations have been charged to the revenue account and the depreciation on rest of the assets used for development of portals is being capitalized.

1.4 Valuation of stock-in-trade :

Stock-in-Trade is valued at cost or market value whichever is lower

1.5 Revenue Recognition :

The company''s revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue and costs, if applicable, can be measured reliably. Revenue is recognized in the Income Statement as follows:

(i) Revenue from services rendered is recognized as the service is performed.

(ii) Revenue from the sale of Software products is recognized when the sale is completed with the passing of title.

(iii) Incomes from domain registration, web hosting, set-up and configuration charges are recognized on activation of customer account.

(iv) Revenue from software and web development contracts are period on the completion of development work.

1.6 Investments ;

Long term investments are stated at cost. Provision for diminution in long term investments is made, if it is permanent. Short term investments if any are stated at cost or fair market value whichever is lower. Sale and Purchase of investment is accounted on gross basis and shown in profit and loss account.

1.7 Capital work in progress;

The company is in process developing certain web portals/vortals and the expenditure on the same is being treated as Capital Work in progress like expenditure in the nature of salaries, travel expenses, internet expenses, server maintenance expenses etc. The expenditure on completion of the project (web portals), will be treated as intangible assets as the company expects to derive benefits of the same in the coming future years.

1.8 Foreign Exchange :

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time in a month. Any income or expense on account of exchange rates prevailing at the time in a month. Any income or expense on account of exchange differences either on settlement or on translation of transaction other than those relating to fixed assets is recignized in the Profit and Loss in the foreign fluctuation account. Closing foreign balances are recognised at the prevailing market rate at the end of the day 31st March and difference if any is charged to foreign fluctuations.

1.9 Taxation:

Tax expense comprises of current tax and deferred tax, Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevalling in the respective jurisdictions. Current tax assets and crrent tax liabilities are offset when them 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, Deferred tax reflects the effect of temporary timing differences between the assets and liablilities recognized for financial reporting purposes and the amounts that are recognized for current tax purposes.

Deferred tax assets are recognized and carried forward only to the extent there is a reasonable/virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

1.10 Provisions and Contingencies :

The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that will probably not require outflow of resources or where a reliable estimate of the obligation cannot be made.

1.11 Earnings per Share :

The earnings considered in ascertaining the Company''s earnings per share comprise the net profit or loss for the year attributable to the equity shareholders. Earnings per share is computed using the weighted average number of shares outstanding during the year.

1.12 Use of Estimates :

The preparation of financial statements in conformity with accounting principles generally accepted in India requires the Management to make estimates and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses for the year and disclosures of contingent liabilities as at the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon Management''s evaluation of the relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these estimates.

1.13 Terms/Rights attached to equly share

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pay dividend in Indian rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportion to their shareholding.