i. Statement of Compliance

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Companies Act, 2013 (the Act) read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, and other accounting principles generally accepted in India.

ii. Basis of Preparation of Financial Statements

These standalone financial statements have been prepared in Indian Rupee which is the functional currency of the
Company.

The standalone financial statements have been prepared on the historical cost basis except for certain financial
instruments that are measured at fair value or amortised cost at the end of each reporting period, as explained in
the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
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, regardless of whether that price is directly
observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability,
the Company takes into account the characteristics of the asset or liability if market participants would take those
characteristics into account when pricing the asset or liability at the measurement date. Fair value for
measurement or disclosure purposes in these financial statements is determined on such a basis, except for share -
based payment transactions that are within the scope of Ind AS 102 Share based payments, leasing transactions
that are within the scope of Ind AS 116 Leases, and measurements that have some similarities to fair value but
are not fair value, such as net realizable value in Ind AS 2 Inventories or value in use in Ind AS 36 Impairment of
Assets.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based
on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs
to the fair value measurement in its entirety,

Which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the assets or liability

iii. Use of Estimates and Judgments

The preparation of Standalone financial statements in conformity with Ind AS requires the management to make
judgments, estimates and assumptions that affect the reported amounts of income, expenses, assets and liabilities
and the accompanying disclosures, and the disclosure of contingent liabilities, at the end of the reporting year.

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

The preparation of the standalone financial statements in conformity with the recognition and measurement
principles of the Ind AS requires management of the company to make estimates, judgments and assumptions.
These estimates, judgments and assumptions affect the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the standalone
financial statements and reported amounts of revenues and expenses during the year. Application of accounting
policies that require critical accounting estimates involving complex and subjective judgments and the use of
assumptions in these standalone financial statements have been disclosed below. Accounting estimates could
change from year to year. Although these estimates are based on management’s best knowledge of current events
and actions, uncertainty about the assumptions and estimates could result in the outcome requiring material
adjustment to the carrying amount of assets and liabilities.

Contingent liabilities

The Company uses material judgements to assess contingent liabilities. Contingent liabilities are disclosed when
there is a possible obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent
assets are neither recognised nor disclosed in the standalone financial statements.

Control and significant influence

Whether the Company, through voting rights and potential voting rights attached to shares held, or by way of
shareholders agreements or other factors, has the ability to direct the relevant activities of the subsidiaries, or
jointly direct the relevant activities of its joint ventures or exercise significant influence over associates.

Property, plant and equipment and other intangible assets

Property, plant and equipment and other intangible assets represent a material proportion of the asset base of the
Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s
expected useful life and the expected residual value at the end of its life. The useful lives and residual values of
Company’s assets are determined by management at the time the asset is acquired and reviewed periodically,
including at each financial year end. The lives are based on historical experience with similar assets as well as
anticipation of future events, which may impact their life, such as changes in technology.

Fair value measurements and valuation processes

In estimating the fair value of an asset or liability, the Company uses market-observable data to the extent it is
available. Where level 1 input is not available, the Company engages third party qualified values to perform the
valuation. The management works closely with qualified external values to establish the appropriate valuation
techniques and inputs to the model.

Defined benefit obligations

The cost of the defined benefits that includes gratuity and compensated absences and the present value of the
defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial
valuation involves making various assumptions that may differ from actual developments in the future. These
include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each reporting date.

Impairment testing of investments

Key assumptions related to weighted average cost of capital (WACC) and long-term growth rates.

Classification of Leases.

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the
lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease
term as the non-cancellable period of a lease, together with both periods covered by an options to extend the
lease if the Company is reasonably certain to exercise that options; and periods covered by an option to terminate
the lease if the Company is reasonably certain not to exercise that options. In assessing whether the company is
reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it
considers all relevant facts and circumstances that crate an economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease
term if there is a change in the non-cancellable period of a lease. The discount rate is generally based on the
incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar
characteristics.

Impairment of Goodwill

Goodwill is tested for impairment on an annual basis. The Company estimate the value in use of the cash
generating unit (CGU) based on the future cash flows after considering current economic conditions and trends,
estimated future operating results and growth rate and anticipated future economic and regulatory conditions.
The estimated cash flows are developed using internal forecasts.

Valuation of deferred tax

The tax jurisdiction for the company is India. Material judgments are involved in determining the provision for
income taxes, including amount expected to be paid. The ultimate realization of deferred tax assets is dependent
upon the generation of future taxable profits during the year in which those temporary differences and tax loss
carry-forwards become deductible. The company considers the expected reversal of deferred tax liabilities and
projected future taxable income in making this assessment.

The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if
estimates of future taxable income during the carry-forward year are reduced.

iv. Revenue Recognition

a. The company derives revenue primarily from providing e-Governance services, IT Enabled Services, from
sale of e-Governance products and Other Services on accrual basis.

b. To recognise revenues, the Company applies the following five step approach as mentioned in Ind AS 115:
(1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3)
determine the Transaction Price, (4) allocate the Transaction Price to the performance obligations in the
contract, and (5) recognise revenues when a performance obligation is satisfied.

c. Revenue is recognised upon transfer of control of promised products or services to customers in an amount
that reflects the consideration the Company expects to receive, i.e., the “Transaction Price”, (net of variable
consideration on account of discounts and allowances) in exchange of those products or services. The
Company recognises revenue in the period in which it satisfies its performance obligation by transferring
promised goods or services to the customer.

d. The Company recognises revenue when the significant terms of the arrangement are enforceable, services
have been delivered and the collectability is reasonably assured. When there is uncertainty as to
collectability, revenue recognition is postponed until such uncertainty is resolved.

e. The Company presents revenue net of Goods & Service T ax in its Statement of Profit & Loss.

v. Property plant and equipment

Property plant and equipment are stated at cost; less accumulate depreciation (other than freehold land) and
impairment loss, if any.

Depreciation is provided for property, plant & equipment so as to expense the cost over their estimated useful
lives as per Written down Value Method based on a technical evaluation. The estimated useful lives and residual
value are reviewed at the end of each reporting period, with the effects of any change in estimate accounted for
on a prospective basis.

The estimated useful lives are as mentioned below:-

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance Sheet date is
classified as capital advances under other non-current assets and the cost of assets not ready to use before such
date are disclosed under ‘Capital work-in-progress’. Subsequent expenditure relating to property, plant and
equipment is capitalized only when it is probable that future economic benefits associated with these will flow to
the company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in
the statement of profit and loss when incurred.

vi. Intangible assets

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized
over their respective individual estimated useful lives on Straight Line Method basis, commencing from the date
the asset is available to the company, further amortization is done on a pro rata basis i.e. form the date on which
the intangible asset is acquired. Amortization methods and useful lives are reviewed periodically including at
each financial year end.

Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their
estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated
impairment losses. Distribution network rights and non-compete fees represents amounts paid to local cable
operators/distributors to acquire rights over a particular area for a specified period of time. Other intangible
assets include software.

Derecognition of Intangible Assets

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or
disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of the asset, and are recognised in profit or loss when the
asset is derecognized

vii. Impairment of tangible and intangible assets

At each reporting date, the company reviews the carrying amounts of its tangible and intangible assets, to
determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of
the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately,
unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a
revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset in prior years. A reversal of an impairment loss is recognised as income immediately, unless the relevant
asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a
revaluation increase.

viii. Inventories

Inventories are valued at lower of Cost or Net realizable value as per the requirements of Ind AS - 2 "Valuation of
Inventory"

ix. Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as
reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible
in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax
rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
Financial Statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are
generally recognised for all deductible temporary differences, carry forward tax losses and allowances to the
extent that it is probable that future taxable profits will be available against which those deductible temporary
differences, carry forward tax losses and allowances can be utilised. Deferred tax liabilities and assets are
measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset
realised, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.
The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.

Current and deferred tax are recognised as an expense or income in profit or loss, except when they relate to
items credited or debited outside profit or loss (either in other comprehensive income or directly in equity), in
which case the tax is also recognised outside profit or loss (either in other comprehensive income or directly in
equity, respectively).