2 Material Accounting Policy Information

2.1 Statement of Compliance

These standalone financial statements have been
prepared in accordance with the Indian Accounting
Standards (referred to as "Ind AS") prescribed under
section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules as
amended from time to time.

2.2 Basis for preparation of standalone
financial statements:

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

These standalone financial statements have been
prepared on historical cost basis, except for certain
financial instruments which 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. All assets and liabilities
have been classified as current and non-current as
per the Company's normal operating cycle. Based
on the nature of services rendered to customers
and time elapsed between deployment of resources
and the realisation in cash and cash equivalents of

the consideration for such services rendered, the
Company has considered an operating cycle of
12 months.

Amounts in the standalone financial statements are
presented in Indian Rupees in lakhs rounded off up to
two decimal places as permitted by Schedule III to the
Act. Per share data are presented in Indian Rupees up
to two decimal places.

The Company maintains its accounts on accrual
basis following historical cost convention, except for
certain assets and liabilities that are measured at fair
value in accordance with Ind AS.

Fair value measurements are categorised as
below 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:

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

Level 2 inputs are inputs, other than quoted prices
included in level 1, that are observable for the assets
or liabilities, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the
valuation of assets or liabilities.

Above levels of fair value hierarchy are applied
consistently and generally, there are no transfers
between the levels of the fair value hierarchy unless
the circumstances change warranting such transfer.

2.3 Use of estimates:

The preparation of standalone financial statements
requires the management of the Company to make
significant judgement, estimates and assumptions
that affect the reported amounts of assets and
liabilities on the date of standalone financial
statements, disclosure of contingent liabilities as at the
date of the standalone financial statements, and the
reported amounts of income and expenses during the
reported period. Actual results may differ from these
estimates. Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised prospectively.

Critical accounting estimates

(i) Revenue recognition

The Company applies the percentage of
completion method in accounting for its
fixed price development contracts. Use of the
percentage of completion method requires
the Company to estimate the efforts or costs
expended to date (input method) as a proportion
of the total efforts or costs to be expended. Efforts
or costs expended have been used to measure
progress towards completion as there is a direct
relationship between input and productivity.
Provisions for estimated losses, if any, on
uncompleted contracts are recorded in the
period in which such losses become probable
based on the expected contract estimates at the
reporting date.

Judgement is also required to determine
the transaction price for the contract and to
describe the transaction price to each distinct
performance obligation. The transaction price
could be either a fixed amount of customer
consideration or variable consideration with
elements such as volume discounts, service level
credits, performance bonuses, price concessions
and incentives. The transaction price is also
adjusted for the effects of the time value of money
if the contract includes a significant financing
component. Any consideration payable to the
customer is adjusted to the transaction price,
unless it is a payment for a distinct product
or service from the customer. The estimated
amount of variable consideration is adjusted
in the transaction price only to the extent that it
is highly probable that a significant reversal in
the amount of cumulative revenue recognised
will not occur and is reassessed at the end of
each reporting period. The Company allocates
the elements of variable considerations to all the
performance obligations of the contract unless
there is observable evidence that they pertain to
one or more distinct performance obligations.

The Company exercises judgments while
determining the transaction price allocated to
performance obligations using the expected cost
plus margin approach.

(ii) Property, plant and equipment

Property, plant and equipment represent a
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 at the end
of each reporting period. 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.

(iii) Provisions

A provision is recognised when the Company has
a present obligation as a result of a 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. These
are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

(iv) Business combinations and intangible
assets

Business combinations are accounted for using
Ind AS 103. which requires the identifiable net
assets and contingent consideration to be fair
valued in order to ascertain the net fair value
of identifiable assets, liabilities and contingent
liabilities of the acquiree. Significant estimates
are required to be made in determining the value
of contingent consideration and intangible assets
and their estimated useful life. These valuations
are generally conducted by independent
valuation experts.

(v) Impairment of Goodwill

Goodwill is tested for impairment on an annual
basis and whenever there is an indication that
the recoverable amount of a cash generating
unit is less than its carrying amount based on
a number of factors including operating results,
business plans, future cash flows and economic
conditions. The recoverable amount of cash
generating units is determined based on higher
of value-in-use and fair value less cost to sell.

The goodwill impairment test is performed at
the level of the cash-generating units which are
benefiting from the synergy of acquisitions unit
or Company's cash-generating units and which
represents the lowest level at which goodwill is
monitored for internal management purposes.
Market related information and estimates are
used to determine the recoverable amount. Key
assumptions on which management has based
its determination of recoverable amount include
estimated long term growth rates, weighted
average cost of capital and estimated operating
margins. Cash flow projections take into account
past experience and represent management's
best estimate about future developments.

(vi) Defined benefit plans and compensated
absences

The cost of the defined benefit plans,
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.

(vii) Expected credit losses on financial assets

The impairment provisions of financial assets
are based on assumptions about risk of default
and expected timing of collection. The Company
uses judgment in making these assumptions
and selecting the inputs to the impairment
calculation, based on the Company's past
history, customer's creditworthiness, existing
market conditions as well as forward looking
estimates at the end of each reporting period.

(viii) Other estimates

The share based compensation expense is
determined based on the Company's estimate
of equity instruments that will eventually vest.

2.4 Property, Plant & Equipment
Recognition and measurement

Property, plant & equipment and intangible assets
are stated at cost less accumulated depreciation/
amortisation and net of impairment. Cost of an item
of PPE comprises its purchase price, including import
duties and non-refundable purchase taxes, after
deducting trade discounts and rebates, any directly
attributable costs of bringing the item to its working
condition for its intended use and estimated cost of
dismantling and removing the item and restoring the
site on which it is located. Subsequent expenditure
relating to PPE 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.

The cost of property, plant and equipment not ready /
available for use as at each reporting date is disclosed
under capital work in progress.

Depreciation

Depreciable amount for assets is the cost of an asset,
less its estimated residual value. Depreciation on PPE
(including assets taken on lease), other than freehold
land, is charged based on the straight line method
on the estimated useful life as prescribed in schedule
II to the Companies Act, 2013 except in respect of
the certain categories of assets, where the life of the
assets has been assessed based on internal technical
estimate, considering the nature of the asset and
estimated usage of the asset, the operating conditions
of the asset, past history of replacement, anticipated
technological changes.

The estimated useful life of intangible assets
(software) is 3 to 5 years and these are amortised on
a straight line basis. Project specific intangible assets
are amortised over their estimated useful life on a
straight line basis or over the period of the license/
project period, whichever is lower.

The estimated useful life and residual values of PPE
and intangible assets are reviewed at the end of each
reporting period.

Assets acquired under leasehold improvements are
amortized over the shorter of estimated useful life of
the asset or the related lease term.

Intellectual Property Rights ('IPR') comprise right to use
for licensed software. The Company has recognised
the IPR based on consideration paid. Subsequent to
initial recognition, the intangible asset is measured
at cost, less any accumulated amortization and
accumulated impairment losses. The IPR's are
amortised over their estimated useful life of the asset
on a straight line basis.

An item of Property, PPE and intangible asset is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of PPE and
intangible assets is determined as the difference
between the sales proceeds and the carrying amount
of the asset and is recognised in Statement of profit
or loss.

2.5 Leases

At inception of the contract, the Company determines
whether the contract is a lease or contains a lease
arrangement. 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.

The Company recognises right-of-use asset
representing its right to use the underlying asset for
the lease term at the lease commencement date.
The cost of the right-of-use asset (ROU) measured
at inception shall comprise of the amount of the
initial measurement of the lease liability adjusted
for any lease payments made at or before the
commencement date less any lease incentives
received, plus any initial direct costs incurred and
an estimate of costs to be incurred by the lessee in

dismantling and removing the underlying asset or
restoring the underlying asset or site on which it is
located. The ROU assets is subsequently measured at
cost less any accumulated depreciation, accumulated
impairment losses, if any and adjusted for any
remeasurement of the lease liability. The ROU assets
is depreciated using the straight-line method from
the commencement date over the shorter of lease
term or useful life of ROU asset. The estimated useful
lives of ROU assets are determined on the same basis
as those of PPE. ROU assets are tested for impairment
whenever there is any indication that their carrying
amounts may not be recoverable. Impairment loss,
if any, is recognised in the standalone statement of
profit and loss.

The Company measures the lease liability at the
present value of the lease payments that are not
paid at the commencement date of the lease. The
lease payments are discounted using the interest
rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined,
the Company uses incremental borrowing rate. For
leases with reasonably similar characteristics, the
Company, on a lease by lease basis, may adopt
either the incremental borrowing rate specific to
the lease or the incremental borrowing rate for the
portfolio as a whole. The lease payments shall include
fixed payments, variable lease payments, residual
value guarantees, exercise price of a purchase
option where the Company is reasonably certain to
exercise that option and payments of penalties for
terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease.
The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to
reflect the lease payments made and remeasuring
the carrying amount to reflect any reassessment or
lease modifications or to reflect revised in-substance
fixed lease payments.

The Company recognises the amount of the
remeasurement of lease liability as an adjustment
to the ROU asset. Where the carrying amount of the
ROU asset is reduced to zero and there is a further
reduction in the measurement of the lease liability, the
Company recognises any remaining amount of the
re-measurement in standalone statement of profit
and loss.

The Company has elected not to apply the
requirements of Ind AS 116 to short-term leases of all
assets that have a lease term of 12 months or less and
leases for which the underlying asset is of low value.
The lease payments associated with these leases are
recognized as an expense.

2.6 Business combinations

Business combinations are accounted for using
the purchase (acquisition) method. The cost of an
acquisition is measured as the fair value of the assets
transferred, liabilities incurred or assumed and equity
instruments issued at the date of exchange by the
Company. Identifiable assets acquired and liabilities
and contingent liabilities assumed in a business
combination are measured initially at fair value at
the date of acquisition. Transaction costs incurred in
connection with a business acquisition are expenses
as incurred.

When the consideration transferred by the Company
in a business combination includes assets or
liabilities resulting from a contingent arrangement,
the contingent consideration is measured at its
acquisition date fair value and included as part
of the consideration transferred in a business
combination. Contingent consideration that is
classified as an asset or liability is remeasured at
subsequent reporting dates in accordance with IND
AS 109 Financial Instruments or IND AS 37 Provisions,
Contingent Liabilities and Contingent Assets, with
the corresponding gain or loss being recognised in
standalone statement of profit or loss.

2.7 Goodwill and intangible assets

Goodwill represents the cost of acquired business as
established at the date of acquisition of the business
in excess of the acquirer's interest in the net fair value
of the identifiable assets, liabilities and contingent
liabilities less accumulated impairment losses, if any.
Goodwill is tested for impairment annually or when
events or circumstances indicate that the implied fair
value of goodwill is less than its carrying amount.

Intangible assets acquired separately are measured
at cost of acquisition. Intangible assets acquired in a
business combination are measured at fair value as
at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less accumulated
amortization and impairment losses, if any.

2.8 Impairment of assets

(i) Financial assets

The Company applies the expected credit
loss model for recognizing impairment loss on
financial assets

Expected credit loss is the difference between the
contractual cash flows and the cash flows that
the entity expects to receive discounted using
effective interest rate.

Loss allowances for trade receivables are
measured at an amount equal to lifetime
expected credit losses. Lifetime expected credit
losses are the expected credit losses that
result from all possible default events over the
expected life of a financial instrument. Lifetime
expected credit loss is computed based on a
provision matrix which takes in to the account
historical credit loss experience adjusted for
forward looking information. For other financial
assets, expected credit loss is measured at the
amount equal to twelve months expected credit
loss unless there has been a significant increase
in credit risk from initial recognition, in which
case those are measured at lifetime expected
credit loss.

(ii) Non-financial assets

Property, plant and equipment and intangible
assets with finite life are evaluated for
recoverability whenever there is any indication
that their carrying amounts may not be
recoverable. If any such indication exists, the
recoverable amount (i.e. higher of the fair
value less cost to sell and the value-in-use) is
determined on an individual asset basis unless
the asset does not generate cash flows that
are largely independent of those from other
assets. In such cases, the recoverable amount is
determined for the Cash Generating Unit (CGU)
to which the asset belongs.

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.

(iii) Goodwill

Goodwill is initially measured at cost, being the
excess of the aggregate of the consideration
transferred, amount of non-controlling interest
in the acquired entity, and the acquisition
date fair value of any previous equity interest
in the acquired entity, over the fair value
of the Company's share of net identifiable
assets acquired.

If those amounts are less than the fair value of the
net identifiable assets of the business acquired,
the difference after reassessment, is recognized
as capital reserve.

After initial recognition, goodwill is tested for
impairment on an annual basis by comparing
carrying value with recoverable amount, which is
higher of fair value less disposal cost and value-
in-use. the Company estimates 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. The discount
rate used for the CGU's represent the weighted
average cost of capital based on the historical
market returns of comparable companies.

2.9 Inventories
Raw material:

Raw material are valued at lower of cost or net
realizable value. Cost is determined on weighted
average method.

Finished goods:

Finished goods are valued at the lower of the cost or
net realisable value. Cost is determined on weighted
average method.

Projects in progress / Work in progress:

Hardware equipment and other items are carried
at the lower of cost and net realisable value. Cost is
determined on a specific identification basis. Cost
includes material cost, freight and other incidental
expenses incurred in bringing the inventory to the
present location / condition.

2.10 Revenue recognition

The Company derives revenues primarily from
information technology services comprising software
development, consulting and related services.

The Company's contracts with customers include
promises to transfer multiple products and services
to a customer. Revenues from customer contracts
are considered for recognition and measurement
when the contract has been approved, in writing,
by the parties to the contract, the parties to the
contract are committed to perform their respective
obligations under the contract, and the contract
is legally enforceable. The Company assesses the
services promised in a contract and identifies distinct
performance obligations in the contract. Identification
of distinct performance obligations to determine the
deliverables and the ability of the customer to benefit
independently from such deliverables, and allocation
of transaction price to these distinct performance
obligations involves significant judgment.

Revenue is recognised to depict the transfer of control
of promised goods er services to customers, upon the
satisfaction of performance obligations under the
contract in an amount that reflects consideration to
which the company expects to be entitled in exchange
of those goods and services.

To recognise revenues, the company apply the
following five step approach Viz., (1) Identify the
Contract with customer) (2) Identify the performance
obligations in the contract; (3) determine the
transaction price; (4) reallocate the transaction
price to the performance obligation in the contact;
and (5) recognise the revenue when a performance
obligation is satisfied.

(i) Revenue from time and material and job
contracts is recognised on the basis of time
spent, efforts expended.

(ii) In respect of other fixed-price contracts, revenue
is recognised using percentage-of-completion
method ('POC method') of accounting with
contract costs incurred determining the degree
of completion of the performance obligation. The
contract costs used in computing the revenues
include cost of fulfilling warranty obligations.

(iii) Revenue from the sale of distinct internally
developed software and manufactured systems
and third party software is recognised upfront
at the point in time when the system / software
is delivered to the customer. In cases where
implementation and / or customisation services
rendered significantly modifies or customises
the software, these services and software
are accounted for as a single performance
obligation and revenue is recognised over time
on a POC method.

(iv) Revenue is measured based on the transaction
price, which is the consideration, adjusted
for volume discounts, service level credits,
performance bonus, price concessions and
incentives, if any, as specified in the contract
with the customer. Revenue also excludes taxes
collected from customers.

(v) License agreements that require payment
of license fees contain a single performance
obligation that represents ongoing access to a
portfolio of intellectual property over the license
term since such agreements provide the licensee
the right to access a portfolio of intellectual
property that exists at inception of the license
agreement and to updates and new intellectual
property that is added to the licensed portfolio
during the term of the agreement that are highly
interdependent or interrelated. Since we expect
to expend efforts to develop and transfer updates
to our licensed portfolio on an even or specified
timeline basis, license fees are recognized as
revenues on a straight-line or milestone basis
over the estimated period of benefit of the license
to the licensee.

(vi) Contracts assets are recognised when there
is excess of revenue earned over billings on
contracts. Contract assets are classified as
unbilled revenue when there is unconditional
right to receive cash, and only passage of time
is required, as per contractual terms.

(vii) Contract liability (unearned revenue) is
recognised when there is billings in excess
of revenues.

(viii) The amount recognized as a warranty provision is
based on the estimated costs that the company
expects to incur to fulfil its warranty obligations.

The provision is measured at its best estimate,
which considers factors such as historical
warranty claims, repair or replacement costs, and
the experience of similar products. If the warranty
costs are expected to be incurred beyond one
year, the provision may be discounted to reflect
the time value of money.

Other Income
Interest income

Interest income from a financial asset is recognized
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, 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.

Other items of income are accounted as and when the
right to receive such income arises and it is probable
that the economic benefits will flow to the Company
and the amount of income can be measured reliably.

2.11 Exceptional items

An item of income or expense which by its size, type or
incidence requires disclosure in order to improve an
understanding of the performance of the Company is
treated as an exceptional item and disclosed as such
in the financial statements.

2.12 Foreign currency transactions

I n preparing the Standalone Financial Statements
of the Company, transactions in currencies other
than the Company's functional currency (foreign
currencies) are recognised at the rates of exchange
prevailing at the dates of the transactions. At the end of
each reporting period, monetary items denominated
in foreign currencies are retranslated at the rates
prevailing at that date. Non-monetary items that
are measured in terms of historical cost in a foreign
currency are not retranslated. Exchange differences
on monetary items are recognised in statement of
profit or loss in the period in which they arise.

2.13 Financial instruments

Financial assets and liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instruments.

Financial assets and liabilities are initially measured
at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial
assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair
value measured on initial recognition of financial
asset or financial liability. Transaction costs directly
attributable to the acquisition of financial assets or
financial liabilities at fair value through profit or loss
are recognised in profit or loss.

(i) Non-derivative financial instruments:

Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into
known amounts of cash and that are subject to
an insignificant risk of change in value and having
original maturities of three months or less from
the date of purchase, to be cash equivalents.

Financial assets at amortised cost

Financial assets are subsequently measured at
amortised cost using the effective interest rate
method less impairment losses, if these financial
assets are held within a business model whose
objective is to hold these assets in order to collect
contractual cash flows and the contractual terms
of the financial asset give rise on specified dates
to cash flows that are solely payments of principal
and interest on the principal amount outstanding.

Financial assets at fair value

Financial assets not measured at amortised
cost are carried at fair value through profit or
loss (FVTPL) on initial recognition, unless the
Company irrevocably elects on initial recognition
to present subsequent changes in fair value in
'other comprehensive income', for investment in
equity instruments which are not held for trading.

The Company, on initial application of IND AS 109
Financial Instruments has made an irrevocable
election to present in 'other comprehensive
income', subsequent changes in fair value of
equity instruments not held for trading.

Financial asset at FVTPL, are measured at fair
values at the end of each reporting period, with
any gains or losses arising on remeasurement
recognised in profit or loss.

Investment in subsidiaries

I nvestment in subsidiaries is carried at cost
less impairment as per Ind AS 27 Separate
Financial Statements.

Financial liabilities

Financial liabilities are subsequently carried
at amortised cost using the effective interest
rate method or at FVTPL. For financial liabilities
carried at amortised cost, the carrying amounts
approximate fair values due to the short term
maturities of these instruments. Financial
liabilities are classified as at FVTPL when the
financial liability is either contingent consideration
recognised in a business combination, or is held
for trading or it is designated as FVTPL. Financial
liabilities at FVTPL are stated at fair value, with
any gains or losses arising on remeasurement
recognised in profit and loss.

(ii) Derecognition of financial instruments

The Company derecognises a financial asset
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards
of ownership of the asset to another party. If
the Company retains substantially all the risk
and rewards of transferred financial assets, the
Company continues to recognize the financial
asset and also recognizes the borrowing for the
proceeds received.

The Company derecognises financial liabilities
when, and only when, the Company's obligation
are discharged, cancelled or have expired.

(iii) Financial guarantee contracts

Financial guarantee contracts issued by the
Company are initially measured at fair value
and subsequently measured at the higher of
the amount of loss allowance determined in
accordance with impairment requirements of
Ind AS 109; and the amount initially recognised
less, when appropriate, the cumulative amount
of income recognised in accordance with the
principles of Ind AS 115.

2.14 Employee benefits

a Defined benefit plans

For defined benefit plans, the cost of providing
benefits is determined using the Projected
Unit Credit Method, with actuarial valuations
being carried out at each balance sheet date.
Remeasurement, comprising actuarial gains
and losses, the effect of the changes to the asset
ceiling and the return on plan assets (excluding
interest), is reflected immediately in the balance
sheet with a charge or credit recognised in other
comprehensive income in the period in which
they occur. The gratuity plan provides for a lump
sum payment to employees at retirement, death,
incapacitation or termination of the employment
based on the respective employee's last drawn
salary and the tenure of the employment.

b Defined contribution plans

Provident fund and ESIC: The Company's
contributions to defined contribution plans are
charged to the statement of profit and loss
as and when the services are received from
the employees.

c Compensated absences:

The Company provides for compensated
absences and long term service awards subject
to Company's rules. The employees are entitled
to accumulate leave subject to certain limits,
for future encashment or availment. The liability
is accrued based on the number of days of
unavailed leave at each Balance Sheet date
and the awards are accrued based on number
years of service of an employee. It is measured
at the balance sheet date on the basis of an
independent actuarial valuation using the
Projected Unit Credit method.

Actuarial gains and losses are recognised in full
in the Standalone statement of profit and loss in
the period in which they occur.

d Other short-term employee benefits /
bonus

Other short-term employee benefits such as
bonus overseas social security contributions and
performance incentives expected to be paid in
exchange for services rendered by employees,
are recognised in the statement of profit and loss
during the period when the employee renders
the service.

2.15 Government Grants

Government grants are not recognised until there is
reasonable assurance that the Company will comply
with the conditions attached to them and that the
grants will be received.

Government grants related to assets are deducted
from the cost of the asset until it is ready for its
intended use, and the capitalised amount, net of
the grant, is depreciated over the asset's useful life.
Grants intended to compensate for specific expenses
are recognised in the statement of profit and loss over
the periods in which the related costs are incurred,
either as a reduction from those costs or presented as
other income, depending on the nature of the grant.

Government grants that are receivable as
compensation for expenses or losses already incurred
or for the purpose of giving immediate financial
support to the Company with no future related costs
are recognised in profit or loss in the period in which
they become receivable.

2.16 Taxation

I ncome tax expense represents the sum of the tax
currently payable and deferred tax.

Current tax

Current tax is determined as the amount of tax
payable in respect of taxable income for the year as
determined in accordance with the applicable tax
rates and the provisions of the Income-tax Act, 1961.

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 to the extent that it is probable that
taxable profits will be available against which those
deductible temporary differences can be utilized. Such
deferred tax assets and liabilities are not recognised
if the temporary difference arises from the initial
recognition (other than in a business combination)
of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.

The 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 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 realized,
based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period.

2.17 Employee stock option plans:

Equity instruments granted are measured by
reference to the fair value of the instrument at the
date of grant. The equity instruments generally vest
in a graded manner over the vesting period. The fair
value determined at the grant date is expensed over
the vesting period of the respective tranches of such
grants (accelerated amortization). The share based
compensation expense is determined based on the
Company's estimate of equity instruments that will
eventually vest.

The expense is recognized in the Standalone
statement of profit and loss with a corresponding
increase to the 'share option outstanding account',
which is a component of equity.

2.18 Earnings per share

Basic earnings per share ("EPS") is calculated by
dividing the net profit for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period.
The weighted average number of equity shares
outstanding during the period are adjusted for any
bonus shares issued during the period.

For calculating diluted earnings per share, the
net profit for the period attributable to equity
shareholders and the weighted average number of
shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.
The dilutive potential equity shares are adjusted for
the proceeds receivable had the equity shares been
actually issued at fair value(i.e. the average market
value of the outstanding equity shares).