Accounting Policies of Nihar Info Global Ltd. Company

Mar 31, 2024

2. Summary of material accounting policies

On 31 March 2023, the Ministry of Corporate Affairs notified Companies (Indian Accounting
Standards) Amendment Rules, 2023 amending the Companies (Indian Accounting Standards) Rules,
2015. The amendments come into force with effect from 1 April 2023, i.e., Financial Year 2023-24.
One of the major changes is in Ind AS 1 ''Preparation of Financial Statements, which requires
companies to disclose in their financial statements ''material accounting policies'' as against the
erstwhile requirement to disclose ''significant accounting policies''. The word ''significant'' is
substituted by ''material''.

Accounting policy information is expected to be material if users of an entity''s financial statements
would need it to understand other material information in the financial statements.

The Company applied the guidance available under paragraph 117B of Ind AS 1, Presentation of
Financial Statements in evaluating the material nature of the accounting policies.

The following are the material accounting policies for the Company:

2.1 Foreign Currency transactions and balances

Transactions in foreign currencies are initially recorded by the Company at their respective functional
currency spot rates at the date, the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional
currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or
translation of monetary items are recognised in the statement of profit and loss.

Non-monetary items that are measured based on historical cost in a foreign currency are translated
at the exchange rate at the date of the initial transaction.

Non-monetary items that are measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was measured.

The gain or loss arising on translation of non-monetary items measured at fair value is treated in line
with the recognition of the gain or loss on the change in fair value of the item (i.e., translation
differences on items whose fair value gain or loss is recognised in other comprehensive income
("OCI") or profit or loss are also recognised in OCI or profit or loss, respectively).

2.2 Property Plant & Equipment
Recognition and measurement

Property, Plant and Equipment are stated at cost of acquisition or construction less accumulated
depreciation and impairment loss, if any. Cost includes expenditures that are directly attributable to
the acquisition of the asset i.e., freight, duties and taxes applicable and other expenses related to
acquisition and installation. Thecost of self-constructed assets includes the cost of materials and other
costs directly attributable to bringing the asset to a working condition for its intended use. Borrowing
costs that are directly attributable to the construction or production of a qualifying asset are
capitalized as part of the cost of that asset.

Directly attributable costs include:

a. Cost of Employee Benefits arising directly from Construction or acquisition of PPE.

b. Cost of Site Preparation.

c. Initial Delivery & Handling costs.

d. Professional Fees and

e. Costs of testing whether the asset is functioning properly, after deducting the net proceeds from
selling any item produced while bringing the asset to that location and condition (such as samples
producedwhen testing equipment).

When parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items (major components) of property, plant and equipment.

Gains and losses upon disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and equipment and
are recognized net within the statement of profit and loss.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will
flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part
will be derecognized. The costs of repairs and maintenance are recognized in the statement of profit
and loss as incurred.

Items of property, plant and equipment acquired through exchange of non-monetary assets are
measured at fair value, unless the exchange transaction lacks commercial substance or the fair value of
either the asset received or asset given up is not reliably measurable, in which case the asset exchanged
is recorded at the carrying amount of the asset given up.

Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated
with the expenditure will flow to the Group and the cost of the item can be measured reliably.

Depreciation

Depreciation is recognized in the statement of profit and loss on a written down value basis over the
estimated useful lives of property, plant and equipment based on the Companies Act, 2013 ("Schedule
II"), which prescribes the useful lives for various classes of tangible assets. For assets acquired or
disposed of during the year, depreciation is provided on pro rata basis. Land is not depreciated.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted
prospectively, if appropriate.

The estimated useful lives are as follows:

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

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will
flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part
will be derecognized. The costs of repairs and maintenance are recognized in the statement of profit
and loss as incurred.

Items of stores and spares that meet the definition of Property, plant and equipment are capitalized at
cost, otherwise, such items are classified as inventories.

Advances paid towards the acquisition of property, plant and equipment outstanding at each reporting
date is disclosed as capital advances under other assets. The cost of property, plant and equipment not
ready to use before such date are disclosed under capital work-in-progress.

2.3 Intangible assets

Acquired computer software is capitalized on the basis of the costs incurred to acquire and bring to use
the specific software. The Intangible assets that are acquired by the Company and that have finite useful
lives are measured at cost less accumulated amortization and accumulated impairment losses.

Amortization

Amortization is recognized in the statement of profit and loss on a written down value basis over the
estimated useful lives of intangible assets or on any other basis that reflects the pattern in which the
asset''s future economic benefit are expected to be consumed by the entity. Intangible assets that are not
available for use are amortized from the date they are available for use. The estimated useful lives are as
follows:

The amortization period and the amortization method for intangible assets with a finite useful life are
reviewed at each reporting date.

2.4 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.
a. Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition of the
financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are recognized on the
trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Debt instruments at amortised cost

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost, if both of the following conditions are met: (i)
The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows; and (ii) Contractual terms of the asset give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR Amortization is
included in finance income in the statement of profit and loss. The losses arising from impairment are
recognised in the statement of profit and loss. This category generally applies to trade and other
receivables.

Debt instrument at FVTOCI

A ''debt instrument'' is classified as FVTOCI, if both of the following criteria are met: (i) The objective of
the business model is achieved both by collecting contractual cash flows and selling the financial assets;
and (ii) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognized in OCI. However, the Company
recognizes interest income, impairment losses and foreign exchange gain or loss in the statement of
profit and loss.

On de-recognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from
the equity to statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument is

reported as interest income using the EIR method.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the
criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. Debt instruments
included within the FVTPL category are measured at fair value with all changes recognized in the
statement of profit and loss.

Equity Instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are
held for trading are classified as FVTPL. If the Company decides to classify an equity instrument as
FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI.
There is no recycling of the amounts from OCI to statement of profit and loss. Equity instruments
included within the FVTPL category are measured at fair value with all changes recognized in the
statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognized (i.e., removed from the Company''s balance sheet) when:

a. The rights to receive cash flows from the asset have expired, or

b. The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
''pass-through'' arrangement; and either (a) the Company has transferred substantially all the risks
and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a
pass- through arrangement, it evaluates if and to what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the
asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to
the extent of the Company''s continuing involvement. In that case, the Company also recognizes an
associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Company has retained.

Impairment of trade receivables

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss on the trade receivables or any contractual right to receive cash or
another financial asset that result from transactions that are within the scope of Ind AS 18. Expected
credit loss model takes into consideration the present value of all the cash shortfalls over the expected life of
a financial instrument. In simple terms, it is weighted average of credit losses with the respective risks of
default occurring as weights. The credit loss is the difference between all contractual cash flows that are
due to an entity as per the contract and all the contractual cash flows that the entity expects to receive,
discounted to the effective interest rate. The Standard presumes that entities would suffer credit loss
even if the entity expects to be paid in full but later than when contractually due. In other words, it
simply focuses on DELAYS in collection of receivables.

For the purpose of identifying the days of delay, the Company took into consideration the weighted
average number of delays taking into consideration the date of billing, the credit period and the
collection days.

b. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value i.e., loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Company
that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.
Separated embedded derivatives are also classified as held for trading, unless they are designated as
effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the
statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied.
For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are
recognized in OCI. These gains/ loss are not subsequently transferred to the statement of profit and
loss.

However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair
value of such liability are recognised in the statement of profit and loss.

Loans and borrowings

Borrowings is the category most relevant to the Company. After initial recognition, interest-bearing
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are

recognised in the statement of profit and loss when the liabilities are derecognised as well as through
the EIR amortization process. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR Amortization is
included as finance costs in the statement of profit and loss.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expired. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the de-recognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the statement of
profit and loss.

Reclassification of financial assets and liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no re-classification is made for financial assets which are equity instruments and
financial liabilities. For financial assets which are debt instruments, a re-classification is made only if
there is a change in the business model for managing those assets. A change in the business model
occurs when the Company either begins or ceases to perform an activity that is significant to its
operations. If the Company reclassifies financial assets, it applies the re-classification prospectively
from the re-classification date, which is the first day of the immediately next reporting period
following the change in business model. The Company does not restate any previously recognised
gains, losses (including impairment gains or losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet,
if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

2.5 Investment in subsidiaries

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

2.6 Cash & Cash Equivalents

Cash and bank balances comprise of cash balance in hand, in current accounts with banks, demand
deposit, short-term deposits, Margin Money deposits and unclaimed dividend accounts. For this
purpose, "short-term" means investments having maturity of three months or less from the date of
investment. Bank overdrafts that are repayable on demand and form an integral part of our cash
management are included as a component of cash and cash equivalents for the purpose of the
statement of cash flows. The Margin money deposits, balance in dividend accounts which are not due
and unclaimed dividend balances shall be disclosed as restricted cash balances.

2.7 Inventories

Inventories consists of Finished goods. Inventories are carried at lower of cost and net realisable value.
Cost of finished goods produced includes direct material and labour cost and a proportion of overheads.

2.8 Impairment of non-financial assets

The carrying amounts of the Company''s non-financial assets, other than inventories and deferred tax
assets are reviewed at each reporting date to determine whether there is any indication of impairment.

If any such indication exists, then the asset''s recoverable amount is estimated. For goodwill and intangible
assets that have indefinite lives or that are not yet available for use, an impairment test is performed
each year at March 31.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in
use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset or the cash-generating unit. For the purpose
of impairment testing, assets are grouped together into the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflow of other assets or groups of
assets (the "cash-generating unit").

An impairment loss is recognized in the statement of profit and loss if the estimated recoverable amount
of an asset or its cash-generating unit is lower than its carrying amount. Impairment losses recognized in
respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill
allocated to the units and then to reduce the carrying amount of the other assets in the unit on a pro¬
rata basis.

Reversal of impairment of Assets

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognized in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
asset''s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized.

2.9 Employee Benefits

Short term employee benefits

A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave
and sick leave in the period the related service is rendered at the undiscounted amount of the benefits
expected to be paid in exchange for that service. Liabilities recognized in respect of short-term employee
benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for
the related service

Defined Contribution Plan

The company''s contribution to superannuation fund, considered as defined contribution plans are
charged as an expense in the Statement of Profit and Loss based on the amount of contribution required
to be made and when services are rendered by the employees.

Defined Benefit Plans

For defined retirement benefit plans, the cost of providing benefits is determined using the projected
unit credit method, with actuarial valuations being carried out at the end of each annual reporting
period. Re measurement, comprising actuarial gains and losses, the effect of the changes to the asset
ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in
the balance sheet with a charge or credit recognized in other comprehensive income in the period in
which they occur. Re measurement recognized in other comprehensive income is reflected immediately
in retained earnings and is not reclassified to profit or loss. Past service cost is recognized in profit or
loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the
beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized
as follows:

• Service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and Settlements);

• Net interest expense or income; and

• Re measurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item
''Employee benefits expense''. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognized in the Balance Sheet represents the actual deficit or
surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to
the present value of any economic benefits available in the form reductions in future contributions to
the plans.

Termination benefits

Termination benefits are recognized as an expense when the Company is demonstrably committed,
without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment
before the normal retirement date, or to provide termination benefits as a result of an offer made to
encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as
an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that
the offer will be accepted, and the number of acceptances can be estimated reliably.

Other long-term employee benefits

Other Long-term employee benefit comprise of Leave encashment which is provided for based on the
actuarial valuation carried out as at the end of the year.

Liabilities recognized in respect of other long-term employee benefits are measured at the present
value of the estimated future cash outflows expected to be made by the Company in respect of
services provided by employees up to the reporting date

Compensated absences

The Company''s current policies permit certain categories of its employees to accumulate and carry
forward a portion of their unutilised compensated absences and utilise them in future periods or
receive cash in lieu thereof in accordance with the terms of such policies. The Company measures the
expected cost of accumulating compensated absences as the additional amount that the Company
incurs as a result of the unused entitlement that has accumulated at the reporting date. Such
measurement is based on actuarial valuation as at the reporting date carried out by a qualified
actuary.

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Mar 31, 2015

Overview Company

Nihar Info Global Limited was incorporated on 12th January 1995 as a Public Limited Company. Company is engaged in the business of Software and e-Commerce. It is listed on Bombay Stock Exchange. The company undertakes development and/or trade in sale, import or exports of computer software and carry out on the business of Research and development, designing, manufacturing, trading and deal in all type of computer software and hardware and render consultancy services in the field of software development and turnkey projects and solutions.

1.1 Basis of accounting and preparation of financial statements

The financial statements have been prepared and presented in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by the Central Government of India under Section 133 of the Companies Act, 2013, other pronouncements of Institute of Chartered Accountants of India, the provisions of Companies Act, 2013.The financial statements are presented in Indian rupees.

1.2 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Current-non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) It is expected to be realized in, or is intended for sale or consumption in the Company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realized within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

A liability is classifies as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Operating Cycle

Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

1.4 Fixed Assets and Depreciation

Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets comprises of the purchase price, taxes, duties, freight and any other directly attributable costs of bringing the assets to their working condition for their intended use. Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Depreciation on fixed assets is provided on straight line method, at the rates based on the useful life of the fixed assets as estimated by the Management or at the rates prescribed under Schedule II to the Companies Act, 2013 whichever is higher.

1.5 Revenue Recognition

i) Income from software related services is accounted for on the basis of services rendered and billed to the clients on acceptance and/or on the basis of man days/man hours spent as per the terms of the contract with the clients. Income from software products is recognized on the basis of the sale of the clients.

ii) Income from software training is accounted on accrual basis.

iii) Revenue from Annual Maintenance Contracts (AMC) is recognized on a pro rata basis over the period in which such services are rendered.

iv) Interest income on term deposits is recognized during the time proportion method, based on interest rates implicit in the transaction.

1.6 Expenditure

Expenses are accounted on accrual basis and the provisions are made for all expected losses and liabilities.

1.7 Investment

Long term investment is carried at cost, and provision is made to recognize any decline other than temporary, in the value of such investment.

1.8 Retirement benefits

Provision for accrued gratuity liability is provided on actual basis which is not actuarial valuation.

2.0 Income Taxes

Income tax expense comprises current tax and deferred tax charge or credit. Income tax expense is recognized in the Statement of Profit and Loss.

Current Tax

The current charge for the income taxes is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred Taxes

Deferred tax charge or benefit reflects the tax effects of timing differences between accounting income and taxable income, which originate during the year but reverse after the tax holiday period. The deferred tax charge or benefit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written-down or written-up to reflect the amount that is reasonably / virtually certain to be realized. The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at after setting off deferred tax assets and liabilities where the Company has a legally enforceable right to set-off assets against liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.

2.1 Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

2.2 Provisions and Contingent Liabilities

Provision:

The Company recognizes a provision when there is a present obligation as a result of past events that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimate of the obligation. A disclosure for a contingent liability is 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 or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

2.3 As Stipulated in AS-28, the company has assessed potential of economic benefits of its business limits, and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful life in the usual course of its business. There is no impairment indication to the company and accordingly the management is of the view that no impairment provision is called for in these accounts.

2.7 The company has gone for scheme of arrangement under section 391 and 394 read with sections 100 to 103 and 78 of the Companies Act,1956.The company has received the order vide MCA no 700 of 2013 dated 13th March, 2014 from the High Court of Andhra Pradesh approving the scheme of arrangement. The scheme provides for conversion of unsecured loans of Rs.2,67,52,700/- into Equity and reduction of share capital. The effect of above order is implemented in the books of account on 02 May 2014.

2.8 Letters have been issued to parties for confirmation of balances (including Investments) with the request to confirm or send comment by the stipulated date failing which balance as indicated in the letter would be taken as confirmed. Confirmation letters have not been received. However, no adverse communication received from any party till date.

2.9 Earnings per share (EPS)

Basic earnings per share ('EPS') is computed by dividing the net profit/(loss) after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date.

2.10 The Company has entered into rent agreement for office premises. The rentals of Rs. 2,72,283/- of which Rs 1,80,000 were charged in the statement of Profit and Loss. These agreements are cancellable in nature.

2.11 Previous year's figures have been regrouped/rearranged to conform to those of the current year.

(i) The remote e-voting period begins on 26th September, 2015 at 10.00 A.M. and ends on 29th September, 2015 at 5.00 P.M. During this period shareholders' of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date 19th September, 2015, may cast their vote electronically. The remote e-voting module shall be disabled by CDSL for voting thereafter.

(ii) The shareholders should log on to the e-voting website www.evotingindia.com.

(iii) Click on Shareholders.

(iv) Now Enter your User ID

a. For CDSL: 16 digits beneficiary ID,

b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,

c. Members holding shares in Physical Form should enter Folio Number registered with the Company.

(v) Next enter the Image Verification as displayed and Click on Login.

(vi) If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier voting of any company, then your existing password is to be used.

(viii) After entering these details appropriately, click on "SUBMIT" tab.

(ix) Members holding shares in physical form will then directly reach the Company selection screen. However, members holding shares in demat form will now reach 'Password Creation' menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for remote e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

(x) For Members holding shares in physical form, the details can be used only for remote e-voting on the resolutions contained in this Notice.

(xi) Click on the EVSN for the relevant Nihar Info Global Ltd. on which you choose to vote.

(xii) On the voting page, you will see "RESOLUTION DESCRIPTION" and against the same the option "YES/NO" for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.

(xiii) Click on the "RESOLUTIONS FILE LINK" if you wish to view the entire Resolution details.

(xiv) After selecting the resolution you have decided to vote on, click on " SUBMIT". A confirmation box will be displayed. If you wish to confirm your vote, click on "OK", else to change your vote, click on "CANCEL" and accordingly modify your vote.

(xv) Once you "CONFIRM" your vote on the resolution, you will not be allowed to modify your vote.

(xvi) You can also take out print of the voting done by you by clicking on "Click here to print" option on the Voting page.

(xvii) If Demat account holder has forgotten the same password then Enter the User ID and the image verification code and click on Forgot Password & enter the details as prompted by the system.

(xviii)Note for Non – Individual Shareholders and Custodians

- Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are required to log on to www.evotingindia.com and register themselves as Corporate.

- A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to [e-mail].

- After receiving the login details a compliance user should be created using the admin login and password. The Compliance user would be able to link the account(s) for which they wish to vote on.

- The list of accounts should be mailed to [e-mail] and on approval of the accounts they would be able to cast their vote.

- A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.

In case you have any queries or issues regarding remote e-voting, you may refer the Frequently Asked Questions ("FAQs") and e-voting manual available at www.evotingindia.com, under help section or write an email to [e-mail]

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Mar 31, 2014

1.1 Basis of Preparation

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, and the provisions of the Companies Act, 1956, to the extent applicable. These financial statements have been prepared to comply in all aspects with the accounting standards notified under section 211(3C) (which continues to be applicable in terms of circular 15/2013 dated September 13,2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,2013) and other relevant provisions of the Companies Act,1956. These financial statements have been prepared and presented in Indian rupees.

1.2 Use of Estimates

The preparation of the financial statements in conformity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses for the year. Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.3 Fixed Assets and Depreciation

Fixed assets are stated at the cost of acquisition or construction less accumulated depreciation. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets. Subsequent expenditure related to an item of tangible assets are added back to its book value only if they increase the future benefits from the existing assets beyond its previously assessed standard of performance.

Depreciation on fixed assets is provided using the straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation is calculated on a pro-rata basis from the date of installation till the date the assets are sold or otherwise disposed of. Individual assets costing less than Rs.5, 000 are depreciated in full in the year of acquisition.

1.4 Revenue Recognition

i) Income from software related services is accounted for on the basis of services rendered and billed to the clients on acceptance and/or on the basis of man days/ man hours spent as per the terms of the contract with the clients. Income from software products is recognized on the basis of the sale of the clients.

ii) Income from software training is accounted on accrual basis.

iii) Revenue from Annual Maintenance Contracts (AMC) is recognized on a pro rata basis over the period in which such services are rendered.

iv) Interest income on term deposits is recognized during the time proportion method, based on interest rates implicit in the transaction.

1.5 Expenditure

Expenses are accounted on accrual basis and the provisions are made for all expected losses and liabilities.

1.6 Investment

Long term investment is carried at cost, and provision is made to recognize any decline other than temporary, in the value of such investment.

1.7 Retirement benefits

Provision for accrued gratuity liability is provided on actualbasis.

1.8 Deferred Taxes

Deferred tax charge or benefit reflects the tax effects of timing differences between accounting income and taxable income, which originate during the year but reverse after the tax holiday period.The deferred tax charge or benefit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written-down or written-up to reflect the amount that is reasonably / virtually certain to be realized. The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at after setting off deferred tax assets and liabilities where the Company has a legally enforceable right to set-off assets against liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.

1.9 Foreign Exchange Transactions

i) Foreign currency transactions arising during the year are recorded as per the prescribed foreign exchange rates prevailing on the date of the transaction.

ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are stated at the contact rates and / or at the transaction rote.

1.10 Earnings per Share

In determining earning per share, the company considers the net profits after tax and includes the post -tax effect of any extraordinary items. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the year.

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Mar 31, 2012

A. Basis of Preparation

The financial Statements have been prepared under the historical cost convention on accrual basis to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

b. Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting policies requires estimates and assumptions to be made that affect the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the results are known /materialized.

2. Fixed Assets and depreciation

i) Fixed assets are stated at cost less accumulated depreciation. Cost includes freight, duties (net of MODVAT), taxes and any attributable cost of bringing the asset to its working condition for its intended use.

ii) Depreciation on Fixed Assets is provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

3. Revenue Recognition

i) Income from software related services is accounted for on the basis of services rendered and billed to the clients on acceptance and/or on the basis of man days/ man hours spent as per the terms of the contract with the clients. Income from software products is recognized on the basis of the sale to the clients.

ii) Income from software training is accounted on accrual basis.

iii) Revenue from Annual Maintenance Contracts (AMC) is recognized on a pro rata basis over the period in which such services are rendered.

iv) Interest income on term deposits is recognized using the time proportion method, based on interest rates implicit in the transaction.

v) During the year the Company has Written Off Rs.16,95,396/- towards Bad debts.

4. Expenditure

Expenses are accounted on Accrual basis and the provisions are made for all expected losses and liabilities.

5. Investments:

Long-term investments are carried at cost, and provision is made to recognize any decline, other than temporary, in the value of such investment.

6. Retirement Benefits

Provision for accured gratuity liability is provided on accturial basis, leave encashment is provided on cash basis.

7. Deferred Taxes

Deferred tax is provided, on all temporary differences at the Balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or subsequently enacted at the Balance sheet date.

8. Foreign Exchange Transactions

i) Foreign currency transactions arising during the year are recorded as per the prescribed foreign exchange rates prevailing on the date of transaction.

ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are stated at contract rates and / or at the transaction rate.

9. Earning per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post - tax effect of any extra-ordinary items. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the year.

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Mar 31, 2011

A. Basis of Preparation

The financial Statements have been prepared under the historical cost convention on accrual basis to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

b. Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting policies requires estimates and assumptions to be made that affect the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the results are known /materialized.

2. Fixed Assets and depreciation

i) Fixed assets are stated at cost less accumulated depreciation. Cost includes freight, duties (net of MODVAT), taxes and any attributable cost of bringing the asset to its working condition for its intended use.

ii) Depreciation on Fixed Assets is provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

3. Revenue Recognition

i) Income from software related services is accounted for on the basis of services rendered and billed to the clients on acceptance and/or on the basis of man days/ man hours spent as per the terms of the contract with the clients. Income from software products is recognized on the basis of the sale to the clients.

ii) Income from software training is accounted on accrual basis.

iii) Revenue from Annual Maintenance Contracts (AMC) is recognized on a pro rata basis over the period in which such services are rendered.

iv) Interest income on term deposits is recognized using the time proportion method, based on interest rates implicit in the transaction.

4. Expenditure

Expenses are accounted on Accrual basis and the provisions are made for all expected losses and liabilities.

5. Investments:

Long-term investments are carried at cost, and provision is made to recognize any decline, Other than temporary, in the value of such investment.

6. Retirement Benefits

Provision for accured gratuity liability is provided on accturial basis, leave encashment is provided on cash basis

7. Deferred Taxes

Deferred tax is provided, on all temporary differences at the Balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or subsequently enacted at the Balance sheet date.

8. Foreign Exchange Transactions

i) Foreign currency transactions arising during the year are recorded at per the prescribed foreign exchange rates prevailing on the date of transaction.

ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are stated at contract rates and / or at the transaction rate.

9. Earning per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post – tax effect of any extra-ordinary items. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the year.

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Mar 31, 2010

A. Basis of Preparation :

The financial Statements have been prepared under the historical cost convention on accrual basis to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

b. Use of Estimates :

The presentation of financial statements in conformity with the generally accepted accounting policies requires estimates and assumptions to be made that affect the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which in results are known/materialized.

2. Fixed Assets and depreciation :

i) Fixed assets are stated at cost less accumulated depreciation. Cost includes freight, duties (net of MODVAT), taxes and any attributable cost of bringing the asset to its working condition for its intended use.

ii) Depreciation on fixed Assets is provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

3. Revenue Recognition :

i) Income from software related services is accounted for on the basis of services rendered and billed to the clients on acceptance and/or on the basis of man days man hours spent as per the terms of the contract with the clients. Income from software products is recognized on the basis of the sale to the clients.

ii) Interest income on funds deployed is accounted for on the basis of applicable interest rates using the time proportion method.

iii) Income from software training is accounted on accrual basis. iv) Revenue from Annual Maintenance Contracts (AMC) is recognized on a pro rata basis over the period in which such services are rendered.

iv) Interest income on term deposits is recogni2ed using the time proportion method, based on interest rates implicit in the transaction.

4. Expenditure:

Expenses are accounted on Accrual basis and the provisions are made for all expected losses and liabilities.

5. Investments:

Long-term investments are carried at cost, and provision is made to recognize any decline, Other than temporary, in the value of such investment.

6. Miscellaneous Expenditure :

i) Website Builder expenses are written off over a period of five years, the product development is completed and put to commercial use and the first year i.e., 2007.08. Rs.9.54 Lacs have been written off and the similar amount thereafter every year.

7. Retirement Benefits :

Companys contribution to PE is charged to P & L account. Provision for accrued gratuity liability in respect of future payments to employees who have put in qualifying services. Provision for accrued gratuity liability is provided for only employees who have put in qualifying services. Leave encashment is provided as per prevailing companys policy on encashment of leave.

8. Deferred Taxes:

Deferred tax is provided, on all temporary differences at the Balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or subsequently enacted at the Balance sheet date.

9. Foreign Exchange Transactions :

i) Foreign currency transactions arising during the year are recorded at per the prescribed foreign exchange rates prevailing on the date of transaction.

ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are stated at contract rates and / or at the transaction rate.

10. Earning per Share :

In determining earnings per share, the Company considers the net profit after tax and includes the post - tax effect of any extra-ordinary items. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the year.