Accounting Policies of T. Spiritual World Ltd. Company

Mar 31, 2025

1.2 Summary of Significant Accounting Policies

a. Current versus Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in Company''s normal
operating cycle

• Held primarily for the purpose of trading

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

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

All other assets are classified as non-current.

A liability is current when it is:

• expected to be settled in Company''s normal operating cycle

• held primarily for the purpose of trading

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

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

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

b. Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured, regardless of when the payment is
being made. Revenue is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or duties
collected on behalf of the government.

Sale of Goods

Revenue from the sale of goods is recognised on transfer of significant risks and rewards of
ownership to customers based on the contract with the customers for delivery. Revenue from
the sale of goods is net of returns and allowances, trade discounts and volume rebates. The
Company collects Goods & Service Tax on behalf of the government and therefore, it is not an
economic benefit flowing to the Company and hence excluded from revenue (if any).

Rendering of Services

Revenue from services are recognized pro-rata as and when the services are rendered. The
Company collects Goods & Service Tax/ service tax (prior to 1^st July 2017) on behalf of the
government and therefore, it is not an economic benefit flowing to the Company and hence
excluded from revenue.

Interest Income

For all debt instruments measured at amortised cost, interest income is recorded using the
effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash
payments or receipts over the expected life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount of the financial asset or to the amortised cost
of a financial liability. Interest income is included in other income in the statement of profit and
loss.

Dividends

Revenue is recognised when the Company''s right to receive the payment is established, which is
generally when shareholders approve the dividend.

c. Taxes

Tax expense is the aggregate amount included in determination of profit or loss for the period
in respect of current tax & deferred tax.

Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.

Current tax relating to items recognised outside profit or loss is recognised outside profit or
loss (either in other comprehensive income or in equity). Management periodically evaluates
positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred tax is provided using the liability method on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the
reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward
of unused tax credits (MAT Credit Entitlement) and any unused tax losses. Deferred tax assets
are recognised to the extent that it is probable that taxable profit will be available against which
the deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting 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.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Deferred tax items are recognised in
correlation to the underlying transaction either in OCI or directly in equity.

d. Property, Plant and Equipment

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant
and equipment and borrowing costs for long-term construction projects if the recognition
criteria are met. When significant parts of plant and equipment are required to be replaced at
intervals, the Company depreciates them separately based on their specific useful lives.

Expenditure directly attributable to expansion projects are capitalised. Administrative, general
overheads and other indirect expenditure (including borrowing costs) incurred during the
project period which are not related to the project nor are incidental thereto, are charged to
Statement of Profit and Loss.

Depreciation on property, plant and equipment is provided under Written Down Value method
at the rates determined based on useful lives of the respective assets and residual values which
is in line with those indicated in Schedule II of The Companies Act, 2013.

The estimated useful life of the Property Plant and Equipment is given below:

Asset Group Useful life (in years)

Factory Building 30

Electrical Installation 10

Non-factory Building 60

Furniture & Fixtures 10

Plant & Equipment 8-15

Office Equipment and Vehicle 5-8

Computers 3

An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
income statement when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at the end of each financial year and adjusted prospectively, if appropriate.

e. Investment Property

Property that is held for Long Term rental yields or for capital appreciation or both and is not
occupied by Company is classified as Investment Property. Investment properties are measured
initially at cost, including transaction costs. Subsequent to initial recognition, investment
properties are stated at cost less accumulated depreciation and accumulated impairment loss, if
any.

All other repair and maintenance costs are recognised in the statement of profit or loss as
incurred.

Investment properties are derecognised either when they have been disposed off or when they
are permanently withdrawn from use and no future economic benefit is expected from their
disposal. The difference between the net disposal proceeds and the carrying amount of the
asset is recognised in the statement of profit or loss in the period of de-recognition.

Estimated useful life of Investment Property for calculation of Depreciation is taken as stated in
para (d) above.

f. Intangible Assets

Intangible assets comprise of implementation cost for software and other application software
acquired/developed for in-house use. These assets are stated at cost, 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, less accumulated amortisation and accumulated impairment
losses, if any.

g. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period
in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in
connection with the borrowing of funds. Borrowing cost also includes exchange differences to
the extent regarded as an adjustment to the borrowing costs.

h. Inventories

Inventories are valued at the lower of cost and net realisable value. Finished Goods/ Stock-In
Trade are valued at lower of cost or net realizable value. Cost comprises all costs of purchases
and other cost incurred in bringing the inventory to its present location and condition. Cost is
determined on First in First Out (FIFO) basis. Net realisable value is the estimated selling price
in the ordinary course of business, less estimated costs of completion and the estimated costs
necessary to make the sale.

i. 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

(i) Initial Recognition and Measurement

All financial assets are recognised 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. Purchase or sale 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 recognised on the settlement date, i.e., the date that
the asset is delivered to or by the Company which generally coincides with the trade date.

(ii) Subsequent Measurement

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

a. Equity instruments at fair value through profit or loss (FVTPL)

b. Debt instruments, if any, at amortised cost

c. Equity Instruments in subsidiaries

a. Equity Instruments at Fair Value through Profit or Loss (FVTPL)

All equity investments in scope of Ind AS 109 are measured at fair value except equity
investments in subsidiaries which are measured at cost as per Ind AS 27. For equity

instruments, the Company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The Company makes such
election on an instrument-by-instrument basis. The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an equity instrument as at 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, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within
equity.

Equity instruments included within the FVTPL category are measured at fair value with
all changes recognized in the statement of profit and loss.

b. Debt instruments at amortised cost

A ''debt instrument is measured at the amortised cost if both the following conditions
are met:

(a) The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows, and

(b) 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 amortisation is included in finance
income in the statement of profit or loss. The losses arising from impairment are
recognised in the profit or loss. This category generally applies to trade receivables,
cash and bank balances, loans and other financial assets of the company

c. Equity Instruments in subsidiaries

Equity investments in Subsidiaries are carried at Cost, in accordance with option
available in Ind AS 27 "Separate Financial Statements”.

(iii) De-Recognition

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised
(i.e. removed from the Company''s balance sheet) when the rights to receive cash flows
from the asset have expired.

(iv) Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss and credit risk exposure.

The Company follows ''simplified approach'' for recognition of impairment loss allowance
on trade receivables.

The application of simplified approach does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

As a practical expedient, the Company uses historically observed default rates over the
expected life of the trade receivables and is adjusted for forward-looking estimates to
determine impairment loss allowance on portfolio of its trade receivables.

Financial Liabilities

(i) Initial Recognition and Measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings or payables.

All financial liabilities are recognised 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.

(ii) Subsequent Measurement

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

After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the EIR method. Gains and losses are recognised in
profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.

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 amortisation is
included as finance costs in the statement of profit and loss.

(iii) 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.

(iv) 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.

j. Fair Value Measurement

The Company measures financial instruments, such as, quoted investments at fair value at each
balance sheet date.

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

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

(i) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or
liabilities

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

(iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements at fair value on recurring
basis the Company determines whenever transfers have occurred between levels in the hierarchy
by reassessing categorisation at the end of each reporting period and discloses the same.

k. Impairment of Non-Financial Assets:

The Company assesses, at each reporting date, whether there is an indication that an asset may
be impaired. If any indication exists, or when annual impairment testing for an asset is required,
the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the
higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value
in use. 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 class of assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.

l. Cash and Cash Equivalents

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

m. Cash Dividend to Equity Holders

The Company recognises a liability to make cash distributions to equity holders of the Company
when the distribution is authorised and the distribution is no longer at the discretion of the
Company. As per the corporate laws in India, a distribution is authorised when it is approved by
the shareholders. A corresponding amount is recognised directly in equity.

n. Earning Per Share

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

o. Retirement and other Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are
recognized in the period in which employee renders the related service and charged to the
Statement of Profit & Loss.

Since numbers of employee employed by the Company for any part of the year or throughout the
year were within the prescribed threshold limit of the relevant statute relating to Employees,
hence, the provisions of Employees'' Provident Funds and Miscellaneous Provisions Act, 1952,
Payment of Bonus Act, 1965, Employees'' State Insurance Act, 1948. Payment of Gratuity Act,
1972 and all other allied Labour Acts or laws or any other rules and regulations relating to
Employees are not applicable to the Company.

The employees employed by the Company during the year under review or part of the year have
not completed continuous service period of 5 years and there is not any un-availed/unutilized
leave of any employees working with the Company at the year end. As such, they are not entitled
for Gratuity, Leave encashment and Other Retirement benefits. Accordingly, no provision is
required to be made in respect of the retirement benefits. Also, no such payment of any
retirement benefits have been made during the year

p. Segment Reporting

The Company''s operating business segments are organized and managed separately according to
the nature of products or services provided, with each segment representing a strategic business
unit that offers different products or services and serves different markets. The analysis of
geographical segments is based on the areas in which major operating divisions of the Company
operate.

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Mar 31, 2024

1.2 Summary of Significant Accounting Policies

a. Current versus Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non¬
current classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in Company''s normal
operating cycle

• Held primarily for the purpose of trading

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

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

All other assets are classified as non-current.

A liability is current when it is:

• expected to be settled in Company''s normal operating cycle

• held primarily for the purpose of trading

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

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

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

b. Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being
made. Revenue is measured at the fair value of the consideration received or receivable, taking into
account contractually defined terms of payment and excluding taxes or duties collected on behalf
of the government.

Sale of Goods

Revenue from the sale of goods is recognised on transfer of significant risks and rewards of
ownership to customers based on the contract with the customers for delivery. Revenue from the
sale of goods is net of returns and allowances, trade discounts and volume rebates. The Company
collects Goods & Service Tax on behalf of the government and therefore, it is not an economic
benefit flowing to the Company and hence excluded from revenue (if any).

Rendering of Services

Revenue from services are recognized pro-rata as and when the services are rendered. The
Company collects Goods & Service Tax/ service tax (prior to 1^st July 2017) on behalf of the
government and therefore, it is not an economic benefit flowing to the Company and hence
excluded from revenue.

Interest Income

For all debt instruments measured at amortised cost, interest income is recorded using the
effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash
payments or receipts over the expected life of the financial instrument or a shorter period, where
appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a
financial liability. Interest income is included in other income in the statement of profit and loss.

Dividends

Revenue is recognised when the Company''s right to receive the payment is established, which is
generally when shareholders approve the dividend.

c. Taxes

Tax expense is the aggregate amount included in determination of profit or loss for the period in
respect of current tax & deferred tax.

Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date.

Current tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Management periodically evaluates positions
taken in the tax returns with respect to situations in which applicable tax regulations are subject
to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred tax is provided using the liability method on temporary differences between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting
date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of
unused tax credits (MAT Credit Entitlement) and any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting 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.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Deferred tax items are recognised in
correlation to the underlying transaction either in OCI or directly in equity.

d. Property, Plant and Equipment

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment
and borrowing costs for long-term construction projects if the recognition criteria are met. When
significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives.

Expenditure directly attributable to expansion projects are capitalised. Administrative, general
overheads and other indirect expenditure (including borrowing costs) incurred during the project
period which are not related to the project nor are incidental thereto, are charged to Statement of
Profit and Loss.

Depreciation on property, plant and equipment is provided under Written Down Value method at
the rates determined based on useful lives of the respective assets and residual values which is in
line with those indicated in Schedule II of The Companies Act, 2013.

The estimated useful life of the Property Plant and Equipment is given below:

Asset Group Useful life (in years)

Factory Building 30

Electrical Installation 10

Non-factory Building 60

Furniture & Fixtures 10

Plant & Equipment 8-15

Office Equipment and Vehicle 5-8

Computers 3

An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the income
statement when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at the end of each financial year and adjusted prospectively, if appropriate.

e. Investment Property

Property that is held for Long Term rental yields or for capital appreciation or both and is not
occupied by Company is classified as Investment Property. Investment properties are measured
initially at cost, including transaction costs. Subsequent to initial recognition, investment
properties are stated at cost less accumulated depreciation and accumulated impairment loss, if
any.

All other repair and maintenance costs are recognised in the statement of profit or loss as incurred.

Investment properties are derecognised either when they have been disposed off or when they are
permanently withdrawn from use and no future economic benefit is expected from their disposal.
The difference between the net disposal proceeds and the carrying amount of the asset is
recognised in the statement of profit or loss in the period of de-recognition.

Estimated useful life of Investment Property for calculation of Depreciation is taken as stated in
para (d) above.

f. Intangible Assets

Intangible assets comprise of implementation cost for software and other application software
acquired/ developed for in-house use. These assets are stated at cost, 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, less accumulated amortisation and accumulated impairment losses, if
any.

g. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised
as part of the cost of the asset. All other borrowing costs are expensed in the period in which they
occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with
the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded
as an adjustment to the borrowing costs.

h. Inventories

Inventories are valued at the lower of cost and net realisable value. Finished Goods/ Stock-In Trade
are valued at lower of cost or net realizable value. Cost comprises all costs of purchases and other
cost incurred in bringing the inventory to its present location and condition. Cost is determined on
First in First Out (FIFO) basis. Net realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and the estimated costs necessary to make
the sale.

i. 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

(i) Initial Recognition and Measurement

All financial assets are recognised 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. Purchase or sale 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 recognised on the settlement date, i.e., the date that the asset is
delivered to or by the Company which generally coincides with the trade date.

(ii) Subsequent Measurement

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

a. Equity instruments at fair value through profit or loss (FVTPL)

b. Debt instruments, if any, at amortised cost

c. Equity Instruments in subsidiaries

a. Equity Instruments at Fair Value through Profit or Loss (FVTPL)

All equity investments in scope of Ind AS 109 are measured at fair value except equity
investments in subsidiaries which are measured at cost as per Ind AS 27. For equity
instruments, the Company may make an irrevocable election to present in other

comprehensive income subsequent changes in the fair value. The Company makes such
election on an instrument-by-instrument basis. The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an equity instrument as at 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, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within
equity.

Equity instruments included within the FVTPL category are measured at fair value with
all changes recognized in the statement of profit and loss.

b. Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions
are met:

(a) The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows, and

(b) 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 amortisation is included in finance income in the
statement of profit or loss. The losses arising from impairment are recognised in the
profit or loss. This category generally applies to trade receivables, cash and bank
balances, loans and other financial assets of the company

c. Equity Instruments in subsidiaries

Equity investments in Subsidiaries are carried at Cost, in accordance with option
available in Ind AS 27 “Separate Financial Statements”.

(iii) De-Recognition

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised
(i.e. removed from the Company''s balance sheet) when the rights to receive cash flows from
the asset have expired.

(iv) Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss and credit risk exposure.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on
trade receivables.

The application of simplified approach does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

As a practical expedient, the Company uses historically observed default rates over the
expected life of the trade receivables and is adjusted for forward-looking estimates to
determine impairment loss allowance on portfolio of its trade receivables.

Financial Liabilities

(i) Initial Recognition and Measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings or payables.

All financial liabilities are recognised 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.

(ii) Subsequent Measurement

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

After initial recognition, interest-bearing loans and borrowings are subsequently measured
at amortised cost using the EIR method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the EIR amortisation process.

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 amortisation is included as
finance costs in the statement of profit and loss.

(iii) 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.

(iv) 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.

j. Fair Value Measurement

The Company measures financial instruments, such as, quoted investments at fair value at each
balance sheet date.

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

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

(i) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets

or liabilities

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

(iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the
fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements at fair value on recurring
basis the Company determines whenever transfers have occurred between levels in the hierarchy
by reassessing categorisation at the end of each reporting period and discloses the same.

k. Impairment of Non-Financial Assets:

The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of
an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use.
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 class of assets. When the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.

l. Cash and Cash Equivalents

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

m. Cash Dividend to Equity Holders

The Company recognises a liability to make cash distributions to equity holders of the Company
when the distribution is authorised and the distribution is no longer at the discretion of the
Company. As per the corporate laws in India, a distribution is authorised when it is approved by
the shareholders. A corresponding amount is recognised directly in equity.

n. Earning Per Share

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

o. Retirement and other Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are
recognized in the period in which employee renders the related service and charged to the
Statement of Profit & Loss.

Since numbers of employee employed by the Company for any part of the year or throughout the
year were within the prescribed threshold limit of the relevant statute relating to Employees,
hence, the provisions of Employees'' Provident Funds and Miscellaneous Provisions Act, 1952,
Payment of Bonus Act, 1965, Employees'' State Insurance Act, 1948. Payment of Gratuity Act, 1972
and all other allied Labour Acts or laws or any other rules and regulations relating to Employees
are not applicable to the Company.

The employees employed by the Company during the year under review or part of the year have
not completed continuous service period of 5 years and there is not any un-availed/unutilized
leave of any employees working with the Company at the year end. As such, they are not entitled
for Gratuity, Leave encashment and Other Retirement benefits. Accordingly, no provision is
required to be made in respect of the retirement benefits. Also, no such payment of any retirement
benefits have been made during the year

p. Segment Reporting

The Company''s operating business segments are organized and managed separately according to
the nature of products or services provided, with each segment representing a strategic business
unit that offers different products or services and serves different markets. The analysis of
geographical segments is based on the areas in which major operating divisions of the Company
operate.

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Mar 31, 2014

1. Accounting System:

a) Financial statements are prepared in accordance with the generally accepted accounting principles including mandatory applicable accounting standards in India and relevant presentational requirement of the Companies Act, 1956, under historical cost convention, on accrual basis and ongoing concern concept, unless otherwise stated.

b) All Expenses, Revenue from Operations and Other Income are accounted for on Accrual basis.

2. Use of Estimates:

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

3. Inventories:

Finished Goods / Stock-In Trade are valued at lower of cost or net realizable value. Cost comprises all costs of purchases and other cost incurred in bringing the inventory to its present location and condition. Cost is determined on First in First out basis.

4. Tangible Fixed Assets and Depreciation on Tangible Fixed Assets:

a) Fixed Assets are stated at cost less accumulated depreciation and impairment in value, if any.

b) Costs comprised acquisition price or construction cost and other attributable costs, if any for bringing the assets to its intended use.

c) Depreciation on Fixed Assets is provided block-wise on written down value method (WDV) on prorata basis as per rates prescribed in Schedule XIV to the Companies Act, 1956, with respect to the month of addition.

5. Investments:

a) Long Term Investments are valued at Cost. Provision for diminution in the value of Long Term Investments is made only if such a decline is, in the opinion of management, other than temporary.

b) Current Investments are carried at lower of cost and fair value.

6. Provision for Current and Deferred Tax:

Tax expense comprises Current tax and Deferred tax.

a) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of Income Tax Act, 1961, after considering allowances and exemptions.

b) 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 in future and the resultant asset can be measured reliably.

c) Deferred tax resulting from "timing difference" between taxable and accounting income for the reporting year that originate in one year and are capable of reversal in one or more subsequent years, is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.

d) Deferred tax assets are recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

7. EMPLOYEE BENEFITS:

a) All employee benefits falling due wholly within twelve months of rendering the service are recognized in the period in which employee renders the related service and charged to the Statement of Profit & Loss.

b) None of the employees employed by the Company during the year under review, have completed Continuous service period of 5 years and there is not any un-availed leave of any employees working with the company at the year end. Accordingly, no provision is required to be made in respect of Gratuity, Leave encashment and Other Retirement benefits. Also No such payment of any retirement benefits have been made during the year.

8. Impairment of assets:

a) An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets.

b) An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

c) In the opinion of the management, there is no impairment of assets as on Balance Sheet date.

9. Provisions, Contingent Liabilities and Contingent Assets:

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

b) In the opinion of the management, there are no contingent liabilities as on Balance Sheet date and nor any events occurred after the Balance Sheet date that affects the financial position of the Company.

10. During the financial year 2013-14, there are not any transactions with any suppliers /parties who are covered under ''The Micro Small and Medium Enterprises Development Act, 2006''.

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Mar 31, 2013

1. ACCOUNTING SYSTEM :

a) Financial statements are prepared in accordance with the generally accepted accounting principles including mandatory applicable accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006 and relevant presentational requirement / provisions of the Companies Act 1956, under historical cost convention, on accrual basis and ongoing concern concept, unless otherwise stated.

The Accounting policies adopted during the current year, in the preparation of these financial statements, are consistent with that of the previous year.

b) All Expenses, Revenue from Operations and Other Income are accounted for on Accrual basis.

2. USE OF ESTIMATES :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. INVENTORIES :

a) Finished Goods /Stock-In Trade are valued at lower of cost or net realizable value. Cost comprises all costs of purchases and other cost incurred in bringing the inventory to its present location and condition. Cost is determined on First in First out basis.

b) Work in Progress (Software Projects Under Development) is valued at Cost, which comprises Materials, Labour and appropriate Development Overheads upto the stage/s of completion and Cost is determined on First in First out basis.

4. TANGIBLE FIXED ASSETS AND DEPRECIATION ON TANGIBLE FIXED ASSETS :

a) Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment in value, if any.

b) Costs comprised acquisition price or construction cost and other attributable costs, if any for bringing the assets to their working condition for intended use.

c) Depreciation on Fixed Assets is provided block-wise on written down value method (WDV) on prorata basis as per rates prescribed in Schedule XIV to the Companies Act, 1956, with respect to the month of addition.

5. INVESTMENTS :

a) Long Term Investments are valued at Cost. Provision for diminution in the value of Long Term Investments is made only if such a decline is, in the opinion of management, other than temporary.

b) Current Investments are carried at lower of cost and fair value.

6. PROVISION FOR CURRENT AND DEFERRED TAX :

Tax expense comprises Current tax and Deferred tax.

a) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of Income Tax Act, 1961, after considering allowance and exemptions.

b) 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 in future and the resultant asset can be measured reliably.

c) Deferred tax resulting from "timing difference" between taxable and accounting income for the reporting year that originate in one year and are capable of reversal in one or more subsequent years, is accounted for using the tax rates and laws that are enacted as on the balance sheet date.

d) Deferred tax assets are recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

7. RETIREMENT BENEFITS :

During the year under review, none of the employees have completed Continuous service period of 5 years and there is not any un-availed leave of any employees working with the company. Accordingly, no provision is required to be made in respect of Gratuity, Leave encashment and other Retirement benefits.

8. IMPAIRMENT OF ASSETS :

a) An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets.

b) An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

c) In the opinion of the management, there is no impairment of assets as on Balance Sheet date.

9. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

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

b) In the opinion of the management, there are no contingent liabilities as on Balance Sheet date and nor any events occurred after the Balance Sheet date that affects the financial position of the Company.

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Mar 31, 2012

1. Accounting System:

a) Financial statements are prepared in accordance with the generally accepted accounting principles including mandatory applicable accounting standards in India and relevant presentational requirement of the Companies Act 1956, under historical cost convention, on accrual basis and ongoing concern concept, unless otherwise stated.

b) All Expenses, Revenue from Operations and Other Income are accounted for on Accrual basis.

2. Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Inventories:

a) Finished Goods/Stock-In Trade are valued at lower of cost or net realizable value. Cost comprises all costs of purchases and other cost incurred in bringing the inventory to its present location and condition. Cost is determined on First in First out basis.

b) Work in Progress is valued at Cost, which comprises Materials, Labour and Development Overheads.

4. Tangible Fixed Assets and Depreciation on Tangible Fixed Assets:

a) Fixed Assets are stated at cost less accumulated depreciation and impairment in value, if any.

b) Costs comprised acquisition price or construction cost and other attributable costs, if any for bringing the assets to its intended use.

c) Depreciation on Fixed Assets is provided block-wise on written down value method (WDV) on prorata basis as per rates prescribed in Schedule XIV to the Companies Act, 1956, with respect to the month of addition.

5. Investments:

a) Long Term Investments are valued at Cost. Provision for diminution in the value of Long Term Investments is made only if such a decline is, in the opinion of management, other than temporary.

b) Current Investments are carried at lower of cost and fair value.

6. Provision for Current and Deferred Tax:

Tax expense comprises current tax and deferred tax.

a) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of Income Tax Act, 1961.

b) Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.

c) Deferred tax assets are recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

7. Retirement Benefits:

During the year under review, none of the employees have completed Continuous service period of 5 years and there is not any no un-availed leave of any employees working with the company. Accordingly, no provision is required to be made in respect of Gratuity, Leave encashment and Other Retirement benefits.

8. Impairment of assets:

a) An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets.

b) An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

c) In the opinion of the management, there is no impairment of assets as on Balance Sheet date.

9. Provisions, Contingent Liabilities and Contingent Assets:

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

b) In the opinion of the management, there are no contingent liabilities as on Balance Sheet date and nor any events occurred after the Balance Sheet date that affects the financial position of the Company.

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Mar 31, 2011

1 a) The accounts of the Company are prepared on historical cost basis and on the accounting principle of a going concern.

a) The Company recognizes income on accrual basis income from Software Sale, Software Consultancy and Software System Services is recognized up on completion of the job.

c) In respect of other heads of income, the company follows the practice of accounting of such income on accrual basis.

2. a) Closing stock of software project / products under development as certified by company's technical expert and that of consumable has been valued at cost.

b) Finished goods i.e. Software Packages are valued at lower of cost or net realisable value.

3. a) Fixed Assets are stated at cost, which includes expenditure on installation / construction and preoperative expenses wherever applicable.

b) Depreciation on Fixed Assets is provided block-wise on written down value method as per rates prescribed in Schedule XIV to the Companies Act, 1956.

4. There has been no foreign exchange income or outflow during the year.

5. Investments are valued at cost.

6. Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

7. Provision for Deferred Tax is made using the liability method at the current rate of taxation on all timing difference & the extent that it is probable that a liability or assets will crystallize.

8. Retirement Benefits : Gratuity, Leave Encashment and other retirement benefits are accounted for on cash basis.

9. Impairment of assets : An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets.

An impairment loss is recognized as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

10. Provisions, Contingent Liabilities and Contingent Assets :

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

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Mar 31, 2010

1 a) The accounts of the Company are prepared on historical cost basis and on the accounting principle of a going concern.

a) The Company recognizes income on accrual basis income from Software Sale, Software Consultancy and Software System Services is recognized up on completion ofthejob.

c) In respect of other heads of income, the company follows the practice of accounting of such income on accrual basis.

2. a) Closing stock of software project / products under development as certified by companys technical expert and that of consumable has been valued at cost.

b) Finished goods i.e. Software Packages are valued at lower of cost or net realisable value.

3. a) Fixed Assets are stated at cost, which includes expenditure on installation / construction and preoperative expenses wherever applicable.

b) Depreciation on Fixed Assets is provided block-wise on written down value method as per rates prescribed in Schedule XIV to the Companies Act, 1956.

4. There has been no foreign exchange income or outflow during the year.

5. Investments are valued at cost.

6. Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

7. Provision for Deferred Tax is made using the liability method at the current rate of taxation on all timing difference & the extent that it is probable that a liability or assets will crystallize.

8. Retirement Benefits:

Gratuity, Leave Encashment and other retirement benefits are accounted for on cash basis.

9. Impairment of assets :

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets.

An impairment loss is recognized as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

10. Provisions, Contingent Liabilities and Contingent Assets :

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