2. MATERIAL ACCOUNTING POLICIES

2.1 Status of Compliance:

The financial statements of the Company have been
prepared in accordance with Indian Accounting
Standards (Ind AS) prescribed under Section 133
of the Companies Act 2013, read with Companies
(Indian Accounting Standard) Rules, 2015 as amended
from time to time.

The financial statements have been prepared on
accrual and going concern basis. The accounting
policies are applied consistently to all the periods
presented in the financial statements except where a
newly issued Ind AS is initially adopted or a revision to
an existing accounting standard required a change in
the accounting policy hitherto in use.

The Board of Directors approved the financial
statements for the year ended March 31, 2026 and
authorised for issue on May 13, 2026. The financial
statements once approved by the Board of directors
needs to be adopted by the shareholders at the
annual general meeting of the Company. The Board
of directors can withdraw and re-issue the financial
statements so adopted only in specific cases such
as non-compliance with the applicable accounting
standards, with the approval of Tribunal, after following
the appropriate procedure as per Companies Act,
2013.

2.2 Basis of preparation

The financial statements have been prepared under
the historical cost convention on accrual basis except

for the following assets and liabilities which have been
measured at fair value or revalued amount:

- Financial instruments

- Defined benefit plans and other long-term
employee benefits

- Share based payments

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 and/
or disclosure purposes in these financial statements
is determined on such a basis, except for 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 realisable
value in Ind AS 2 - Inventories or value in use in Ind AS
36 - Impairment of Assets.

2.3 Functional and Presentation Currency

These financial statements are presented in Indian
National Rupee ('?'), which is the Company's
functional currency. All amounts have been rounded
to the nearest lakhs (' 00,000), except when otherwise
indicated.

2.4 Summary of material accounting policies

The material accounting policies applied by the
Company in the preparation of its financial statements
are listed below. Such accounting policies have been
applied consistently to all the periods presented in
these financial statements, unless otherwise indicated.

A. Current and non-current classification

The Company segregates assets and liabilities
into current and non-current categories
for presentation in the balance sheet after
considering its normal operating cycle and other
criteria set out in Ind AS 1, "Presentation of
Financial Statements". For this purpose, current
assets and liabilities include the current portion
of non-current assets and liabilities respectively.
Deferred tax assets and liabilities are always
classified as non-current.

The operating cycle is the time between the
acquisition of assets for processing and their

realisation in cash and cash equivalents. Based
on the time involved 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 for
determining current and non-current classification
of assets and liabilities in the balance sheet.

B. Revenue from contract with customers

Sale of software/hardware (customised
bundled solution) and software services

Revenue on time-and-material contracts are
recognized as the related services are performed
and revenue from the end of the last billing to the
balance sheet date, which has not been billed, is
recognized as unbilled revenues. Revenue from
fixed-price, fixed-time frame contracts, where
there is no uncertainty as to measurement or
collectability of consideration, is recognized
as per the percentage-of-completion method.
When there is uncertainty as to measurement
or ultimate collectability, revenue recognition
is postponed until such uncertainty is resolved.
Efforts or costs expended have been used
to measure progress towards completion as
there is a direct relationship between input and
productivity. Maintenance revenue is recognized
rateably over the term of the underlying
maintenance arrangement.

Advances received for services and products are
reported as client deposits until all conditions for
revenue recognition are met.

Sale from services

Revenue from value added services are
recognized as per arrangement with the
customers at the end of each month/period in
which the services are rendered.

Interest income

Interest income from a financial asset is
recognised when it is probable that the
economic benefits will flow to the Company and
the amount of income can be measured reliably.
Interest income is accrued on a time basis, by
reference to the principal outstanding and at the
effective interest rate applicable, which is the
rate that exactly discounts estimated future cash
receipts through the expected life of the financial
asset to that asset's net carrying amount on initial
recognition.

Dividends

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

Rental income

Rental income arising from operating leases
on investment properties and leasehold
improvements is accounted for on a straight-line
basis over the lease terms unless the payments by
the lessee are structured to increase in line with
expected general inflation to compensate for
the lessor's expected inflationary cost increases.
Rental income is included in other income in the
statement of profit or loss.

C. Taxes

Tax expense comprises current tax expense and
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 at the reporting date.

Current tax, relating to items recognised outside
the statement of profit or loss, is recognised
directly either in other comprehensive income
or in equity in correlation to the underlying
transaction. 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.

Current tax assets is offset against current tax
liabilities if, and only if, a legally enforceable
right exists to set off the recognised amounts
and there is an intention either to settle on a net
basis, or to realise the asset and settle the liability
simultaneously.

Deferred tax

Deferred tax is provided using the balance sheet
approach on temporary differences between the
tax base of assets and liabilities and their carrying
amounts for financial reporting purposes at the
reporting date.

Deferred tax liabilities are recognised for all taxable

temporary differences, except:

- When the deferred tax liability arises from the
initial recognition of goodwill or an asset or
liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss and does not give rise to equal
taxable and deductible temporary differences;

- In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures, when
the timing of the reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse in
the foreseeable future.

Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits 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 value of deferred tax assets is reviewed
at the end of each reporting period and reduced
to the extent that it is no longer probable that
sufficient taxable profits will be available to allow
all or part of the 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
the statement of profit or loss, is recognised
directly either in other comprehensive income
or in equity in correlation to the underlying
transaction.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities
and the deferred tax relate to the same taxable
entity and the same taxation authority.

D. Property, plant and equipment (PPE)

Items of property, plant and equipment are
stated at cost, net of accumulated depreciation
and accumulated impairment losses, if any. Costs
directly attributable to acquisition are capitalized

until the property, plant and equipment are ready
for use, as intended by management.

Depreciation is calculated on cost of PPE
less their estimated residual values over their
estimated useful lives using straight line method
and is recognised in Statement of Profit and loss.
The estimated useful lives of items of PPE are as
follows:

The Company, based on assessment made,
depreciates certain items of property, plant and
equipment over estimated useful lives which
are different from the useful life prescribed in
Schedule II to the Companies Act, 2013. The
management believes that these estimated useful
lives are realistic and reflect fair approximation of
the period over which the assets are likely to be
used.

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 derecognition
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
cost and related accumulated depreciation are
eliminated from the financial statements upon
sale or retirement of the asset and the resultant
gains or losses are recognized in the statement
of profit and loss. Assets to be disposed off are
reported at the lower of the carrying value or the
fair value less cost to sell.

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

E. Investment properties

Investment property comprises land or a building
or part of a building or both that is held to
earn rentals or for capital appreciation or both.
Property held under a lease is classified as
investment property when it is held to earn rentals
or for capital appreciation or both. It does not
include property held use in the production or
supply of goods or services or for administrative
purposes, nor it includes property held for sale in
the ordinary course of business.

More specifically, investment property includes
land held for long-term capital appreciation as
well as land held for a currently undetermined
future use. Investment property also includes (a)
building owned by the Company and leased out
under operating lease(s) and (b) a vacant building
that is being held to be leased out under an
operating lease (or leases).

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.

The cost includes the cost of replacing parts
and borrowing costs for long-term construction
projects if the recognition criteria are met. When
significant parts of the investment property
are required to be replaced at intervals, the
Company depreciates them separately based
on their specific useful lives. All other repair and
maintenance costs are recognised in profit or loss
as incurred.

The Company depreciates building component
of investment property over 60 years from the
date of original purchase. Furniture & fixture and
office equipment, which form part of investment
property are depreciated at useful life mentioned
in para D.

The Company depreciates building (on leasehold
land) component of investment property over the
leasehold period of land.

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 statement of profit and
loss in the period of derecognition.

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

F. Investment in subsidiaries and associates

Investment in subsidiaries and associates
are measured usually at cost. Subsequent to
initial recognition, investment in subsidiaries,
associates and joint ventures are stated at cost
less impairment loss, if any.

Investment in subsidiaries and associates are
derecognized when they are sold or transferred.
The difference between the net proceeds on
sales and the carrying amount of the asset is
recognized in statement of profit and loss in the
year of derecognition.

G. Borrowing costs

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. All
borrowing costs are expensed in the period in
which they occur.

H. Leases

The Company assesses if a contract is or contains
a lease at inception of the contract. A contract is,
or contains, a lease if the contract conveys the
right to control the use of an identified asset for a
period time in exchange for consideration.

Company as a lessee

The Company recognises a right-of-use asset
and a corresponding lease liability with respect
to all lease arrangements in which it is the lessee,
except for short-term leases (defined as leases
with a lease term of 12 months or less). For
these leases, the Company recognises the lease
payments as an operating expense on a straight¬
line basis over the lease term, unless another
systematic basis is more representative of the
time pattern in which economic benefits from
the leased assets are consumed. Contingent and
variable rentals are recognized as expense in the
periods in which they are incurred.

Right-of-use assets

The Company recognises right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).

Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease
payments made at or before the commencement
date less any lease incentives received. Right-
of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the
estimated useful lives of the assets, as follows:

- Building 3 years

Lease Liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured at
the present value of lease payments to be made
over the lease term.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate
at the lease commencement date because the
interest rate implicit in the lease is not readily
determinable. After the commencement date, the
amount of lease liabilities is increased to reflect
the accretion of interest and reduced for the
lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there
is a modification, a change in the lease term,
a change in the lease payments (e.g., changes
to future payments resulting from a change in
an index or rate used to determine such lease
payments) or a change in the assessment of an
option to purchase the underlying asset.

I. Impairment of non-financial assets

Impairment loss, if any, is provided to the extent,
the carrying amount of assets or cash generating
units exceed their recoverable amount.
Recoverable amount is higher of an asset's net
selling price and its value in use. Value in use is
the present value of estimated future cash flows
expected to arise from the continuing use of an
asset or cash generating unit and from its disposal
at the end of its useful life. Impairment losses
recognised in prior years are reversed when
there is an indication that the impairment losses
recognised no longer exist or have decreased.
Such reversals are recognised as an increase in
carrying amounts of assets to the extent that it
does not exceed the carrying amounts that would
have been determined (net of amortization or
depreciation) had no impairment loss been
recognised in previous years.