2. Material Accounting Policies:

2.1 Statement of Compliance and Basis of
preparation and presentation of standalone
financial statements

The standalone financial statements are prepared and
presented in accordance with the Indian Accounting Standards
(Ind AS) as prescribed under section 133 of the Companies Act,
2013 (“the Act”), as amended, read with the Companies (Indian
Accounting Standards) Rules, 2015 as amended from time
to time and as per the requirements of Schedule III (Division
II) of the Companies Act, 2013 and guidelines issued by the
Securities and Exchange Board of India (SEBI), as applicable.

These Standalone Financial Statements have been prepared
and presented on the going concern basis and on historical cost
basis on accrual basis except for certain financial instruments
and defined benefits plans which are measured at Fair value or
amortised cost at the end of each reporting period

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 under current
market conditions, regardless of whether that price is directly
observable or estimated using another valuation technique. In

determining 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.

Accounting policies have been consistently applied.

The Standalone Balance Sheet and the Standalone
Statement of Profit and Loss, Standalone Statement of Other
Comprehensive Income, Standalone Statement of Changes in
Equity are prepared and presented in the format prescribed in
Division II of Schedule III to the Act. The Standalone Statement
of Cash Flows has been prepared and presented under indirect
method as per Ind AS 7 “Statement of Cash Flows”.

2.2 Use of estimates and judgment:

The preparation of the standalone financial statements
requires the management to make judgements, estimates
and assumptions in the application of accounting policies and
that have the most significant effect on reported amounts of
assets, liabilities, incomes and expenses, and accompanying
disclosures, and the disclosure of contingent liabilities. The
estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant.
Actual results may differ from these estimates. The estimates
and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period
in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the
revision affects both current and future periods.

Key sources of estimation of uncertainty at the date of the
standalone financial statements, which may cause a material
adjustment to the carrying amounts of assets and liabilities
within the next financial year, is in respect of impairment of
investments, useful lives of property, plant and equipment,
valuation of deferred tax assets, provisions and contingent
liabilities.

2.3 Functional and Presentation Currency:

The standalone financial statements are presented in Indian
Rupees which is the functional currency of the company, and all
values are rounded to the nearest thousands except otherwise
stated. Due to rounding off, the numbers presented throughout
the document may not add up precisely to the totals and
percentages may not precisely reflect the absolute figures.

2.4 Classification of Assets and Liabilities into
Current/Non-Current:

All assets and liabilities are classified as current or non-current
as per the Company’s normal operating cycle, and other criteria
set out in Schedule III of the Companies Act, 2013.

Operating cycle

Based on the nature of products and the time lag between the
development of the products, providing of services, and their
realization in cash and cash equivalents, the Company has
ascertained its operating cycle as twelve months as its normal
operating cycle for the purpose of classification of its Assets
and Liabilities into Current and Non-Current.

2.5 Revenue Recognition:

The Company derives revenues from Software Products,
Solutions & Services.

i. Revenues from software products, in the
form of:

a) Software licensing

b) Subscription of software as a service

c) Application maintenance service

ii. Revenue from Software services are mainly
in the form of Implementation services/
Professional services.

Revenue is recognized in the standalone statement of
profit and loss upon transfer of control of promised
products or services to customers at transaction price
i.e. an amount that reflects the consideration which
the Company expects to receive in exchange for those
services or products and excluding taxes or duties.

At contract inception, the Company assesses its promise
to transfer products or services to a customer to identify
separate performance obligations. The Company
applies judgment to determine whether each product
or service promised to a customer is capable of being
distinct, and are distinct in the context of the contract,
if not, the promised products or services are combined
and accounted as a single performance obligation. The
Company allocates the contract value to separately
identifiable performance obligations based on their
relative stand-alone selling price (mostly as reflected in the
contracts) or residual method. Standalone selling prices
are determined based on sale prices for the components
when it is regularly sold separately. In cases where the
Company is unable to determine the stand-alone selling
price, the Company uses expected cost-plus margin
approach in estimating the stand-alone selling price. For
performance obligations where control is transferred over
time, revenues are recognized by measuring progress
towards completion of the performance obligation. The
selection of the method to measure progress towards
completion requires judgment and is based on the nature
of the promised products or services to be provided. The
method for recognizing revenues depends on the nature
of the products sold / services rendered.

A) Revenue from Software Products:

i. Software Licensing:

Software licensing revenues represent all fees earned
from granting customers licenses to use the Company’s
software, through initial licensing and or through the
purchase of additional modules. For software license
arrangements that do not require significant modification
or customization of the underlying software, revenue
is recognized on delivery of the software and when the
customer obtains a right to use such licenses.

ii. Subscription for Software as a Service:

Subscription fees for offering the hosted software as a
service are recognized as revenue ratably on straight line
basis, over the term of the subscription arrangement.

iii. Application Maintenance Services:

Fees for the application maintenance services, covering
inter alia the support of the customized software, are
recognized as revenue ratably on straight line basis, over
the term of the support arrangement.

B) Revenue from Software Services:

i. Product Support Services:

Fees for product support services, covering inter alia
improvement and upgradation of the basic Software,
whether sold separately (e.g., renewal period AMC, GST
and subscription services) or as an element of a multiple-
element arrangement, are recognized as revenue ratably
on straight line basis, over the term of the support
arrangement.

ii. Implementation / Professional Services:

Software Implementation / Professional Services
contracts are either fixed price or time based. Revenues
from fixed price contracts, where the performance
obligations are satisfied over time, are recognized using
the “percentage of completion” method. Percentage of
completion is determined based on project costs incurred
to date as a percentage of total estimated project costs
required to complete the project. The cost expended
(or input) method has been used to measure progress
towards completion as there is a direct relationship
between input and productivity. The performance
obligations are satisfied as and when the services are
rendered since the customer generally obtains control
of the work as it progresses. Where the Software is
required to be substantially customized as part of the
implementation service, the entire fee for licensing and
implementation services is considered to be a single
performance obligation and the revenue is recognized
using the percentage of completion method as the
implementation services are performed. Revenues from
implementation services in respect of hosting contracts
are to be recognized as revenue ratably over the longer

of the contract term or the estimated expected life of the
customer relationship.

When total cost estimates exceed revenues in an
arrangement, the estimated losses are recognized in the
standalone statement of profit and loss in the period in
which such losses become probable based on the current
contract estimates as a contract provision. In the case
of time and material contracts, revenue is recognized
based on billable time spent in the project, priced at the
contractual rate. Any change in scope or price is considered
as a contract modification. The Company accounts for
modifications to existing contracts by assessing whether
the services added are distinct and whether the pricing
is at the standalone selling price. Services added that
are not distinct are accounted for on a cumulative catch¬
up basis, while those that are distinct are accounted for
prospectively as a separate contract if the additional
services are priced at the standalone selling price.

Non-refundable one-time upfront fees for enablement /
application installation, consisting of standardization set¬
up, initiation or activation or user login creation services
in the case of hosting contracts, are recognized once the
customer obtains a right to access and use the Software.

C) Contract assets, liabilities and financing
arrangements:

A contract asset is a right to consideration that is
conditional upon factors other than the passage of time.
Contract assets primarily relate to unbilled amounts on
implementation / professional services contracts and
are classified as non- financial asset as the contractual
right to consideration is dependent on completion of
contractual milestones (which we refer to as unbilled
services revenue). Unbilled revenues on software
licensing are classified as a financial asset where the right
to consideration is unconditional upon passage of time
(which we refer to as unbilled licenses revenue).

A contract liability is an entity’s obligation to transfer
software products or software services to a customer
for which the entity has received consideration (or the
amount is due) from the customer (which we refer to as
unearned revenue). The Company assesses the timing
of the transfer of software products or software services
to the customer as compared to the timing of payments
to determine whether a significant financing component
exists. As a practical expedient, the

Company does not assess the existence of a significant
financing component when the difference between
payment and transfer of deliverables is a year or less. If
the difference in timing arises for reasons other than
the provision of finance to either the customer or us, no
financing component is deemed to exist.

Revenue from subsidiaries is recognised based on
transaction price which is at arm’s length.

The liability for Gratuity is ascertained as at the end of
the financial year, based on the actuarial valuation by
an independent external actuary as at the reporting date
using the “projected unit credit method”

The discounted rates used for determining the present
value are based on the market yields on Government
bonds as at the reporting date. Actuarial gains and losses
are recognized in other comprehensive income, net of
taxes, for the period in which they occur. Past service cost
both vested and unvested is recognised as an expense at
the earlier of (a) when the plan amendment or curtailment
occurs; and (b) when the entity recognises related
restructuring cost or termination benefits. The Company
recognises gains and losses on the curtailment or
settlement of a defined benefit plan when the curtailment
or settlement occurs.

3. Other Long Term Employee Benefit Obligations:

The employees are eligible for leave as per leave policy
of the company. The un-utilised leave can be carried
forward and utilised during the course of employment. No
encashment is allowed of unutilised leave. The obligation
for the leave encashment is recognised based on an
independent actuarial valuation at the reporting date.
The expense is recognised in the standalone statement of
profit and loss at the present value of the amount payable
determined based on actuarial valuation using “projected
unit credit method”.

The obligation is measured at the present value of
estimated future cash flows.

The rate used to discount defined benefit obligation is
determined by reference to market yields at the reporting
date on Indian Government Bonds for the estimated term
of obligations.

2.8 Share based payment arrangements:

Stock options granted to employees of the Company and its
subsidiaries under the stock option schemes approved by
the shareholders of the Company are accounted as per the
treatment prescribed by the relevant Ind AS and as required
by the Securities and Exchange Board of India (Share Based
Employee Benefits) Regulations, 2014.

Equity-settled share-based payments to employees are
measured by reference to the fair value of the equity instruments.

The fair value determined at the grant date of the equity-settled
share-based payments, is charged to Standalone Statement of
Profit and Loss on the straight-line basis over the vesting period
of the option, based on the Company’s estimate of equity
instruments that will eventually vest, with a corresponding
increase in equity. The employee stock option outstanding
account is shown net of unamortised deferred employee
compensation expenses.

The fair value of the option being stock option granted for
purchase could be exchanged between knowledgeable, willing

parties in an arm’s length transaction is recognised as deferred
employee compensation with a credit to share options
outstanding account.

The fair value has been calculated using the Black Scholes
Option Pricing model.

2.9 Property, Plant and Equipment

The expenditure incurred for acquisition or development of
Property, Plant & Equipment is recognised as asset if, and only
if 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.

Property, Plant & Equipment are stated at cost less accumulated
depreciation and accumulated impairment losses/allowances,
if any.

The initial cost of Property, Plant & Equipment comprises its
purchase price, non-refundable purchase taxes and any costs
directly attributable to bringing the asset into the location and
condition necessary for it to be capable of operating in the
manner intended by management.

Subsequent costs are included in the Property, Plant &
Equipment’s carrying amount or recognised 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 item can be measured reliably. The carrying amount
of any component accounted for as separate asset is recognised
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.

The carrying amount of an item of Property, Plant & Equipment
is derecognised upon disposal or when no future economic
benefit is expected to arise from its continued use. Any gain or
loss arising on the de-recognition of an item of Property, Plant
& Equipment is determined as the difference between the net
disposal proceeds and the carrying amount of the item and is
recognised in Statement of Profit and Loss.

If significant parts of an item of Property, Plant & Equipment
have different useful lives, then they are accounted for as
separate items of Property, Plant & Equipment.

If the recoverable amount of an asset (or CGU) is estimated to be
less than its carrying amount, the carrying amount of the asset
(or CGU) is reduced to its recoverable amount. An impairment
loss is recognised in the statement of profit and loss.

Depreciation method, Estimated useful lives and
residual value

Depreciation on Property, Plant & Equipment is the systematic
allocation of the depreciable amount over its estimated useful
lives and is provided on a straight-line basis from the date
the same are available for use. Useful life of Property, Plant &
Equipment is in accordance with the useful lives prescribed in
Schedule II of the Companies Act, 2013 (as amended).

Pursuant to the adoption of Ind AS, the Company has not
revised its estimate useful life of property, plant & equipment
and they continue to remain the same basis the table given
below:

Depreciation on Property, Plant & Equipment acquired/
disposed-off during the year is provided on pro-rata basis with
reference to the date of acquisition/disposal.

Items of Property, Plant & Equipment having cost of C 5,000 or
less are depreciated fully in the year of purchase/capitalisation.

The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period,
with the effect of any change in estimate is accounted for on a
prospective basis.

Intangible Assets

Intangible assets are recognised only if it is probable that the
future economic benefits that are attributable to that asset will
flow to the Company and the cost of the item can be measured
reliably. Intangible assets are stated at cost less accumulated
amortisation and accumulated impairment losses, if any.
Directly attributable costs, that are capitalised as part of
the software development include employee costs and an
appropriate portion of relevant overheads or expenses.

Expenditure incurred on development is capitalised if such
expenditure leads to creation of any intangible asset, otherwise,

such expenditure is charged to the Standalone Statement of
Profit and Loss.

Intangible Assets under Development

Intangible assets under development are stated at cost less
accumulated impairment losses, if any.

Expenses incurred on in-house development of courseware and
products are shown as Intangible asset under development till
the asset is ready to use. Their technical feasibility and ability to
generate future economic benefits is established in accordance
with the requirements of Ind AS 38, “Intangible Assets”.

Amortisation

Amortization is recognised over their respective individual
estimated useful lives on a straight-line basis, from the date
they are available for use, as under:

The estimated useful life and amortisation method are
reviewed at the end of each reporting period, with the effect of
any change in estimate being accounted for on a prospective
basis.

Software development costs

Research costs are expensed as incurred. Software development
expenditures on product / platform are recognised as intangible
assets when the Company can demonstrate:

• The technical feasibility of completing the intangible
asset so that the asset will be available for use or sale

• Its intention to complete and its ability and intention to
use or sell the asset

• How the asset will generate future economic benefits

• The availability of resources to complete the asset

• The ability to measure reliably the expenditure during
development.

Following initial recognition of the development expenditure
as an asset, the asset is carried at cost less any accumulated
amortization and accumulated impairment losses, if any.
Amortization of these assets begins from the year, following
the year in which such development costs are incurred.
Amortization expense is recognised in the standalone
statement of profit and loss unless such expenditure forms
part of carrying value of another asset. Costs incurred in the
development of the product, together with repository of new
business components, upon completion of the development
phase, have been classified and grouped as “Product software”
under intangible assets. The costs which can be capitalized
include direct labour, license costs and overhead costs that are
directly attributable for the development of the intangible asset
for its intended use.

2.10 Leases

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

Company as a lessee

The Company applies a single recognition and measurement
approach for all leases, except for short term leases and leases
of low- value assets. The Company recognizes lease liabilities to
make lease payments and right-of-use assets representing the
right to use the underlying assets.

As a Lessee

The Company’s leased assets consist of leases for office
buildings and computers. At inception of a contract, the
Company assesses whether a contract is, or contains, a lease.
A contract is or contains, a lease if the contract conveys the
right to control the use of an identified asset for a period of time
in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the
Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has the right to obtain substantially all of
the economic benefits from use of the asset throughout
the period of use; and

(iii) the Company has the right to direct the use of the asset.

The Company recognises a right-of-use asset and a lease
liability at the lease commencement date. The right-of-use asset
is initially measured at cost, which comprises the initial amount
of the lease liability adjusted for any lease payments made at
or before the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received. They are
subsequently measured at cost less accumulated depreciation
and impairment losses.

The right-of-use asset is subsequently depreciated using the
straight-line method from the commencement date to the
earlier of the end of the useful life of the right-of-use asset or the
end of the lease term. The estimated useful lives of right-of-use
assets are determined on the same basis as those of Property,
Plant and Equipment. In addition, the right-of-use asset are
tested for impairment whenever there is any indication that
their carrying amounts may not be recoverable. Impairment
loss if any, is recognised in Statement of profit and loss.

The lease liability is initially measured at the present value of
the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the Company’s
incremental borrowing rate. Generally, the Company uses its
incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease
liability comprise the following:

• Fixed payments, including in-substance fixed payments.

• Variable lease payments that depend on an index or a
rate, initially measured using the index or rate as at the
commencement date;

• Amounts expected to be payable under a residual value
guarantee; and

• The exercise price under a purchase option that the
company is reasonably certain to exercise, lease
payments in an optional renewal period if the company
is reasonably certain to exercise an extension option,
and penalties for early termination of a lease unless the
company is reasonably certain not to terminate early.

The lease liability is subsequently measured at amortised cost
using the effective interest method. It is remeasured when there
is a change in future lease payments arising from a change in
an index or rate, if there is a change in the Company’s estimate
of the amount expected to be payable under a residual value

guarantee, or if the Company changes its assessment of
whether it will exercise a purchase, extension or termination
option.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount
of the right-of-use asset or is recorded in profit or loss if the
carrying amount of the right-of-use asset has been reduced to
zero.

Short-term leases and leases of low-value assets:

The Company has elected not to recognise right-to-use assets
and lease liabilities for short-term lease that have a lease
term of 12 months or less and leases of low-value assets. The
Company recognises the lease payments associated with these
leases as an operating expense as per the terms of the lease.

Lease liability and ROU asset have been separately presented in
the Balance Sheet and lease payments have been classified as
financing cash flows.

2.11 Borrowing Costs:

Borrowing cost includes interest expense, amortisation of
discounts, ancillary costs incurred in connection with borrowing
of funds and exchange difference, arising from foreign currency
borrowings to the extent they are regarded as an adjustment to
the interest cost.

Borrowing costs that are directly attributable to the acquisition,
development or production of a qualifying asset are capitalised
as part of cost of that asset, till such time the asset is ready for
the intended use. All other borrowing costs are recognized as
an expense in the period which are incurred and are charged to
the Statement of Profit & Loss.

The exchange differences arising from the foreign currency
borrowings to the extent that they are regarded as an
adjustment to interest costs, are regrouped from foreign
exchange differences to finance costs.

2.12 Derivative Contracts and Accounting:

The Company enters into forward contracts to hedge the foreign
currency risk of firm commitments and highly probable forecast
transactions. Derivatives are initially recognised at fair value
at the date the derivative contracts are entered into and are
subsequently remeasured to their fair value at the end of each
reporting period. The resulting gain or loss is recognised in the
Statement of Profit and Loss immediately unless the derivative
is designated and effective as a hedging instrument, in which
event the timing of the recognition in the Statement of Profit
and Loss depends on the nature of the hedging relationship
and the nature of the hedged item. The Company does not hold
financial instruments for speculative purpose.

Hedge Accounting -

• The Company designates certain hedging instruments
in respect of foreign currency risk as cash flow hedges.
At the inception of the hedge relationship, the Company

documents the relationship between the hedging
instrument and the hedged item, along with its risk
management objectives and its strategy for undertaking
various hedge transactions. Furthermore, at the inception
of the hedge and on an ongoing basis, the Company
documents whether the hedging instrument is highly
effective in offsetting changes in fair values or cash flows
of the hedged item attributable to the hedged risk

• The effective portion of changes in the fair value of the
designated portion of derivatives that qualify as cash flow
hedges is recognized in other comprehensive income and
accumulated under the heading of cash flow hedging
reserve. The gain or loss relating to the ineffective portion
is recognized immediately in the statement of profit and
loss.

• Amounts previously recognised in other comprehensive
income and accumulated in equity relating to effective
portion are reclassified to the Statement of Profit and Loss
in the periods when the hedged item affects profit or loss.
However, when the hedged forecast transaction results in
the recognition of a non-financial asset or a non-financial
liability, such gains and losses are transferred from equity
and included in the initial measurement of the cost of the
non-financial asset or non-financial liability.

• Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised, or
when it no longer qualifies for hedge accounting. Any gain
or loss recognised in other comprehensive income and
accumulated in equity at that time remains in equity and
is recognised when the forecast transaction is ultimately
recognised in the statement of profit and loss. When
a forecast transaction is no longer expected to occur,
the gain or loss accumulated in equity is recognized
immediately in the statement of profit and loss.

2.13 Cash and cash equivalents:

Cash and cash equivalents in the Balance Sheet comprises
of cash at banks and on hand and short-term deposits with
an original maturity of three months or less, highly liquid
investments that are readily convertible into known amounts of
cash and are subject to an insignificant risk of changes in value.

2.14 Income Tax

Income tax comprises current tax expense and the net change in
the deferred tax asset or liability during the year. It is recognised
in the Statement of Profit and Loss except to the extent that
it relates to a business combination or to an item recognised
directly in equity or in other comprehensive income.

i. Current Tax

Current tax comprises the expected tax payable or receivable
on the taxable income or loss for the year and any adjustment
to the tax payable or receivable in respect of previous years.
The amount of current tax reflects the best estimate of the
tax amount expected to be paid or received after considering
the uncertainty, if any, related to income taxes. It is measured
using tax rates (and tax laws) enacted or substantively enacted

by the reporting date in each of the applicable jurisdictions.
Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax
regulation is subject to interpretation and considers whether it
is probable that a taxation authority will accept an uncertain tax
treatment. The Company measures its tax balances either based
on the most likely amount or the expected value, depending on
which method provides a better prediction of the resolution of
the uncertainty.

Current tax assets and current tax liabilities are offset only
if there is a legally enforceable right to set off the recognised
amounts, and it is intended to realize the asset and settle the
liability on a net basis or simultaneously.

ii. Deferred Tax

Deferred tax is recognised on temporary differences between
the carrying amounts of assets and liabilities in the Company’s
financial statements and the corresponding tax bases used
in the computation of taxable profit. Deferred tax is also
recognised in respect of carried forward tax losses and tax
credits. Deferred tax is not recognised for:

- temporary differences arising on the initial recognition of
assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor
taxable profit or loss at the time of the transaction;

- temporary differences related to investments in
subsidiaries, associates and joint arrangements to the
extent that the Company is able to control the timing of
the reversal of the temporary differences and it is probable
that they will not reverse in the foreseeable future; and

- taxable temporary differences arising on the initial
recognition of goodwill.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply to the period when the asset
is realised, or the liability is settled based on tax rates (and tax
laws) that have been enacted or substantively enacted by the
end of the reporting period. The measurement of deferred tax
liabilities and assets reflects the tax consequences that would
follow from the manner in which the Company expects, at the
end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities. Deferred tax liabilities are
generally recognised for all taxable temporary differences.
The company recognises deferred tax assets only when it is
probable that taxable profits will be available against which the
deductible temporary differences can be utilised.

iii. Minimum Alternate Tax (MAT):

MAT is recognised as an asset only when and to the extent
there is convincing evidence that the Company will pay
normal income tax during the specified period. In the year
in which the MAT credit becomes eligible to be recognised,
it is credited to the Standalone Statement of Profit and
Loss and is considered as (MAT Credit Entitlement).
The Company reviews the same at each reporting date
and writes down the carrying amount of MAT Credit

Entitlement to the extent there is no longer convincing
evidence to the effect that the Company will pay normal
Income Tax during the specified period. Minimum
Alternate Tax (MAT) Credit are in the form of unused tax
credits that are carried forward by the Company for a
specified period of time, hence, it is presented as Deferred
Tax Asset.

215 GST Input Tax Credit

Goods and Service tax Input tax credit is accounted in the books
in the period in which supply of goods or service received is
accounted and when there is no uncertainty in availing/utilizing
the credits. The Input tax Credit was claimed in respect of
eligible expenses and shall be adjusted against the GST payable
as per the provisions of the applicable GST Act. The unutilised
input credit under the GST provisions as on the reporting date
was disclosed as other current asset in the Balance Sheet.

2.16 Foreign Currency Transactions:

• Transactions denominated in foreign currencies are
recognised at the exchange rates prevailing on the date
of the transactions. As at reporting date, monetary
assets and liabilities designated in foreign currency are
translated at the closing exchange rate. Foreign currency
non-monetary items measured at fair value on initial
recognition are translated at the prevailing exchange
rate as at the date of initial transactions foreign currency
nonmonetary items measured in terms of historical cost
are not translated at the reporting date.

• Exchange difference arising on settlement or translation
of foreign currency monetary items are recognized as
income or expense in the year in which they arise except
for exchange differences on foreign currency borrowings
relating to assets (tangible/ intangible) under construction
for future productive use, which are included in the cost
of those assets when they are regarded as an adjustment
to interest costs on those foreign currency borrowings;
and exchange differences on transactions entered into
in order to hedge certain foreign currency risks. Revenue,
expense and cash-flow items denominated in foreign
currencies are translated into the relevant functional
currencies using the exchange rate in effect on the date of
the transaction.

• Foreign currency gain/loss are reported on a net basis