a. Basis of Presentation of Financial Statements

i. The financial statements have been prepared in accordance with generally accepted accounting
principles in India (Indian GAAP). The Company has prepared these financial statements to comply in
all material respects with the accounting standards prescribed under Section 133 of the Companies Act,
2013 (‘Act’) and other provisions of the Act (to the extent notified). The financial statements have been
prepared under the historical cost convention, in accordance with the generally accepted accounting
principles. The Company follows the mercantile systems of accounting and recognizes income and
expenditure on an accrual basis except stated otherwise.

ii. The preparation of the financial statements in conformity with the Indian GAAP requires the

Management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of
operations during the reporting periods. These estimates are based upon the Management’s best
knowledge of current events and actions. Actual results could differ from these estimates.

b. Use of estimates

The preparation of financial statements in conformity with Indian GAAP 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. Although, these
estimates are based upon management’s best knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcomes requiring a material adjustment to the
carrying amount of assets & liabilities in future period.

c. Property Plant and Equipment:

i. Tangible Assets

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if
any. Cost includes expenses directly attributable to the acquisition and installation of the asset until it is
ready for its intended use.

Depreciation is provided based on the estimated useful lives of the assets, as determined by the
management in accordance with Schedule II of the Companies Act, 2013, using the following methods:

Straight Line Method (SLM):

Office Equipment — 5 years
Computers — 3 years
Motor Cars — 5 years

Written Down Value (WDV) Method:

Furniture and Fixtures — 10 years
Plant and Machinery — 15 years

The useful lives of assets are reviewed at each reporting date and adjusted, if appropriate, to reflect current
estimates.

ii. Intangible Assets (including Intangible under development)

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are
amortized over their respective individual estimated useful lives on a straight-line basis, from the date
that they are available for use. The estimated useful life of an identifiable intangible asset is based on a
number of factors including the effects of obsolescence, demand, competition, and other economic
factors (such as the stability of the industry, and known technological advances), and the level of
maintenance expenditures required to obtain the expected future cash flows from the asset.
Amortization methods and useful lives are reviewed periodically including at each financial year end.
Research costs are expensed as incurred.

Internally generated intangible assets

An internally generated intangible asset arising from development is recognized if, and only if, all the
followings have been demonstrated:

^ The technical feasibility of completing the intangible assets so that it will be available for use or
sale;

^ The intention to complete the intangible asset and use or sell it;

^ The ability to use or sell the intangible asset;

^ How the intangible asset will generate probable future economic benefits;

^ The availability of adequate technical, financial and other resources to complete the development
and to use or sell the intangible asset and

^ The ability to measure reliably the expenditure attributable to the intangible asset during the
development.

Internally generated intangible assets comprise of Core Technology and Product Designs and
Development.

The amount initially recognized for Core Technology is the sum of expenditure incurred towards
salaries of the concerned employees connected towards development of the said Core Technology
and have been attributed to respective Core Technology based upon management judgements from
the date when the intangible asset first meets the recognition criteria listed above.

The amount initially recognized for Product Designs and Development is the sum of expenditure
incurred towards salaries of the concerned employees connected towards development of the said
Product Designs and development attributed to respective Product Designs and Development based
upon management judgements, amount of direct expenditure incurred towards development of the
components of the designs by the vendors and other expenses incurred from the date when the
intangible asset first meets the recognition criteria listed above.

The estimated useful lives of intangible assets are as follows:

Core technology 6 Years

Product designs and development 3 Years

d. Investments:

Non-Current investments are stated at cost. Provision for diminution in the value of Non-Current
Investments is made only if such a decline is other than temporary.

e. Inventories:

Items of inventories are valued at lower of cost and net realizable value. Cost is ascertained on weighted
average basis. Such costs include material cost and other costs incurred in bringing the goods to their
present location and condition. Goods in transit are valued at cost, which represents the costs incurred up
to the stage at which the goods are in transit.

f. Foreign Currency Transactions

i. Initial recognition:

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the standard exchange rate determined at the transaction date.

ii Conversion:

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting
date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign
currency, are reported using the exchange rate at the date of the transaction. Non-monetary items,
which are measured at fair value or other similar valuation denominated in a foreign currency, are
translated using the exchange rate at the date when such value was determined.

iii. Exchange differences:

The Company accounts for exchange differences arising on translation/ settlement of foreign
currency monetary items as below:

^ Exchange differences arising on long-term foreign currency monetary items related to acquisition
of a fixed asset are capitalized and depreciated over the remaining useful life of the asset.

All other exchange differences are recognized as income or as expenses in the period in which they arise.

g. Revenue Recognition:

^ Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and it can be reliably measured.

^ Revenue from domestic sales is recognized on dispatch, which coincides with transfer of
significant risks and rewards to customers and stated net of taxes and returns, as applicable.
Revenue from exports is recognized when the significant risks and rewards of ownership of goods
have been passed to customers.

^ Revenue for fixed-price contracts is recognized using percentage-of-completion method and the
same is arrived in proportion of completed performance obligations which bears to total
performance obligations. The Company uses estimate to arrive at the cost to completion after
considering fair estimates of goods and services to be procured/consumed for completion of the
contract. Unearned revenue represents billings in excess of revenues. Costs incurred in relation to
unearned revenue are considered as a part of inventory.

^ Income from other services rendered is recognized on due dates of the relevant contracts and is
exclusive of tax, wherever recovered.

h. Employee Benefits

^ The company accounts for salaries on accrual basis. There are no other obligations for the

company to the contribution payable as provident funds. But the company provides HRA as per
guidelines under prescribed rules.

^ The Company have provided for its Gratuity obligation from current year. The present value of
the obligation of gratuity is determined based on an actuarial valuation conducted by an
independent actuary, using the projected unit credit method. Actuarial gains and losses on such
valuation are recognized immediately in the Statement of Profit and Loss.

i. Research and development:

All Research cost are expenditure for the year incurred. However, research and development costs are
capitalized once the “asset” being developed has met requirements of technical and commercial feasibility
to signal that the intangible Development likely to either be brought to market or sold.

j. Earnings per Share:

The basic earnings per share is computed by dividing the net profit or loss attributable to equity
shareholders (after deducting attributable taxes) 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 for the period attributable to equity shareholders (after deducting attributable taxes) and the weighted
average number of equity shares outstanding during the year are adjusted for effects of all dilutive potential
equity shares, except where the results are anti-dilutive. The number of shares and potentially dilutive equity
shares are adjusted for share splits and bonus shares issued including for changes effected prior to the
approval of the financial statements by the Board of Directors.

k. Accounting for Taxes:

Current Tax:

Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per
the applicable provisions of the Income Tax Act, 1961.

Deferred Tax:

Deferred tax liabilities are recognized for all taxable temporary difference Deferred tax assets are
recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognized to the extent that it is probable that that taxable profit will be
available against which the deductible temporary differences, and carry forward of unused tax credit and
unused tax losses can be utilized.