[B] MATERIAL ACCOUNTING POLICIES:

a) Basis of Preparation:

(i) Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting
Standards (hereinafter referred to as the 'Ind AS') as notified by Ministry of Corporate Affairs
pursuant to Section 133 of the Companies Act, 2013 ('Act') read with of the Companies (Indian
Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

a. certain financial assets and liabilities that are measured at fair value or amortized cost;

b. defined benefit plans - plan assets are measured at fair value;

c. Share Based Payments

(iii) Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company's
normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

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
realization in cash and cash equivalents. The Company has identified twelve months as its
operating cycle.

(iv) Functional currency

The financial statements are presented in Indian rupee (INR), which is Company's functional and
presentation currency.

(V) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest
lakh as per the requirement of Schedule III, unless otherwise stated.

b) Key accounting estimates and judgements

The estimates and judgements used in the preparation of the financial statements are continuously
evaluated by the Company and are based on historical experience and various other assumptions
and factors (including expectations of future events) that the Company believes to be reasonable
under the existing circumstances. Differences between actual results and estimates are recognized in
the period in which the results are known/ materialized.

The said estimates are based on the facts and events, that existed as at the reporting date, or
that occurred after that date but provide additional evidence about conditions existing as at the
reporting date.

(i) Useful lives of property, plant and equipment :-

Useful lives and residual values of Property, plant and equipment represent a material portion
of the Company's asset base. The periodic charge of depreciation is derived after estimating
useful life of an asset and expected residual value at the end of its useful life. The useful lives
and residual values of assets are estimated by the management at the time the asset is acquired
and reviewed periodically, including at each financial year end. The lives are based on various
external and internal factors including historical experience, relative efficiency and operating
costs and change in technology.

(ii) Provision for income tax and valuation of deferred tax assets

The Company's tax jurisdiction is India. Significant judgments are involved in determining the
provision for income taxes including amounts to be recovered or paid for uncertain tax positions.
Management judgment is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits.

(iii) Employee benefit obligations :-

Defined benefit obligations are measured at fair value for financial reporting purposes. Fair value
determined by actuary is based on actuarial assumptions. Management judgement is required
to determine such actuarial assumptions. Such assumptions are reviewed annually using the
best information available with the Management.

(iv) Provisions and contingent liabilities :-

A provision is recognized when the Company has a present obligation as a result of past event
and it is probable that an outflow of resources will be required to settle the obligation, in
respect of which a reliable estimate can be made. Provisions (excluding retirement benefits and
compensated absences) are not discounted to its present value and are determined based on
best estimate required to settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities
are not recognized in the financial statements. A contingent asset is neither recognized nor
disclosed in the financial statements.

(V) Fair value Measurement :-

In measuring the fair value of certain assets and liabilities for financial reporting purpose, the
Company uses market observable data to the extent available. Where such Level 1 inputs are
not available, the Company establish appropriate valuation techniques and inputs to the model.
The inputs to these models are taken from observable markets where possible, but where this
is not feasible, a degree of judgment is required in establishing fair values. Judgments include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments.

c) Fair value measurement

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. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

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

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.

Level 3: Input that is significant to the value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the
company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

The Company's management determines the policies and procedures for both recurring fair value
measurement and for non-recurring measurement.

External valuers are involved for valuation of significant assets. Involvement of external valuers is
decided upon annually by the management after discussion with and approval by the Board of
directors. Selection criteria include market knowledge, reputation, independence and whether
professional standards are maintained. The management decides, after discussions with the
Company's external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the management analyses the movements in the values of assets and liabilities
which are required to be re-measured or re-assessed as per the Company's accounting policies. For
this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the
information in the valuation computation to contracts and other relevant documents.

The management, in conjunction with the Company's external valuers, also compares the change
in the fair value of each asset and liability with relevant external sources to determine whether the
change is reasonable on yearly basis.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities
on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair
value hierarchy, as explained above.

d) Property, Plant & Equipment:

Freehold lands are carried at cost. Property, plant and equipment are stated at cost, net of recoverable
taxes, less depreciation and impairment losses, if any. Such cost includes purchase price, borrowing
cost and other cost directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Company and the cost of the item can be measured reliably. The carrying amount of any
component accounted for as a separate asset is derecognized when replaced. All other repairs and
maintenance are charged to the Statement of Profit and Loss during the reporting period in which
they are incurred.

All expenditure incurred towards fixed assets including expenditure incurred during construction /
new projects are accumulated and shown as capital work in progress and not depreciated until such
assets are ready for commercial use.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on Written Down Value Method on the basis of Useful Life prescribed in
Schedule II to the Companies Act, 2013.

The Company depreciates its property, plant and equipment over the useful life in the manner
prescribed in Schedule II to the Act, and management believe that useful life of assets are same as
those prescribed in Schedule II to the Act.

Gains and losses on disposals are determined by comparing proceeds with carrying amount.

These are included in the Statement of Profit and Loss.

e) Intangible Assets

Intangible assets are stated at acquisition cost net of tax/ duty credits availed, if any, and net of
accumulated amortization. Gains or losses arising from the retirement or disposal of an intangible
asset are determined as the difference between the net disposal proceeds and the carrying amount of
the asset and recognized as income or expense in the profit or Loss. Intangible assets are amortized
on the straight line method over period of their useful life other than goodwill.

Research and Development Costs

Research costs are expensed as incurred. Development costs are expensed as incurred unless
technical and commercial feasibility of the project is demonstrated, future economic benefits are
probable, availability of resources to complete the asset is established, the Company has intention
and ability to complete and use the asset and the costs are reliably measured, in which case such
expenditure is capitalised. The amount capitalised comprises expenditure that can be directly
attributed or allocated on a reasonable and consistent basis for creating, producing and making the
asset ready for its intended use.

f) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes
cash on hand, cash at bank, deposits held at call with financial institutions, other short-term highly
liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.

g) Inventories:

Items of inventories and Projects in Progress are valued at lower of cost or net realizable value except
waste which is valued at estimated net realizable value.

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. Obsolete, slow-moving and
defective inventories are identified by management and wherever necessary, provision is created for
such inventories.

h) Financial Instruments - initial recognition and subsequent measurement :

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

i. Financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

• Those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss), and

• Those measured at amortized cost.

The classification depends on the entity's business model for managing the financial assets
and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss
or other comprehensive income. For investments in debt instruments, this will depend on
the business model in which the investment is held. For investments in equity instruments,
this will depend on whether the Company has made an irrevocable election at the time
of initial recognition to account for the equity investment at fair value through other
comprehensive income.

The Company reclassifies debt investments when and only when its business model for
managing those assets changes.

(ii) Recognition

Regular way purchases and sales of financial assets are recognized on trade-date, being the
date on which the Company commits to purchase or sale the financial asset.

(iii) Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case
of a financial asset not at fair value through profit or loss, transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction costs of financial assets
carried at fair value through profit or loss are expensed in Statement of profit and loss.

Financial assets with embedded derivatives are considered in their entirety when determining
whether their cash flows are solely payment of principal and interest.

Debt instruments

Subsequent measurement of debt instruments depends on the Company's business model
for managing the asset and the cash flow characteristics of the asset. The Company classifies
its debt instruments as follows:

• Amortized cost: Assets that are held for collection of contractual cash flows where
those cash flows represent solely payments of principal and interest are measured at
amortized cost. A gain or loss on a debt investment that is subsequently measured at
amortized cost and is not part of a hedging relationship is recognized in profit or loss
when the asset is derecognized or impaired. Interest income from these financial assets
is included in other income using the effective interest rate method.

Equity instruments

The Company subsequently measures equity investment at fair value. The Company's
Management elects to present fair value gains and losses on equity investments in other
comprehensive income on an instrument by instrument basis.

Equity investment in subsidiaries, associates and joint venture are carried at historical cost
as per the accounting policy choice given by Ind As 27.

(iv) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated
with its assets carried at amortized cost. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected lifetime losses to be recognized from initial
recognition of the receivables.

(v) Derecognition of financial assets

A financial asset is derecognized only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• retains the contractual rights to receive the cash flows of the financial asset, but assumes
a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the
financial asset is derecognized. Where the entity has not transferred substantially all risks
and rewards of ownership of the financial asset, the financial asset is not derecognized.
Where the entity has neither transferred a financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the financial asset is derecognized if the
Company has not retained control of the financial asset. Where the Company retains control
of the financial asset, the asset is continued to be recognized to the extent of continuing
involvement in the financial asset.

ii. 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, payables, 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.

(ii) Subsequent measurement of financial liabilities

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

• Financial liabilities at fair value through profit or loss or

• Financial liabilities at amortized cost

(iii) Derecognition

The company de-recognizes a financial liability when its contractual obligations are
discharged or cancelled, or expire. The company also de-recognizes a financial liability
when its terms are modified and the cash flows under the modified terms are substantially
different. In this case, a new financial liability based on the modified terms is recognized at
fair value. The difference between the carrying amount of the financial liability extinguished
and the new financial liability with modified terms is recognized in profit or 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 recognized amounts
and there is an intention to settle on a net basis, to realize the assets and settle the liabilities
simultaneously.

i) Segment Reporting:

The Company operates in a single segment and in line with Ind AS - 108 - "Operating Segments", the
operation of the company fall under "IT & IT enabled Services" business which is considered to be
the only reportable business segment. The activities carried out by the associate are not reviewed
separately and the criteria for identifying operating segments are not met hence Segment Reporting
is not applicable in respect of the Associate Company.

j) 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 capitalized
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.