1. Corporate information
The company is a public limited company incorporated under Companies Act, 1956 and domiciled in
India bearing CIN: L01119TG1992PLC082816 and having registered Sy.No.115, Hanumanji Colony, Brig
Sayeed Road, Bowenpally, Secunderabad, Telangana, 500009, India. Its shares are listed on the BSE
Limited. The Company is engaged in the business of IT & ITES services.
2. Implementation of Ind As
All applicable Ind AS have been applied consistently and retrospectively wherever required. The
resulting difference between the carrying amounts of the assets and liabilities in the standalone
financial statements under both Ind AS and Indian GAAP as of the transition date have been recognized
directly in equity at the transition date.
3. Basis of Preparation and Significant Accounting Policies
3.1 (a) Basis of preparation of financial statements and measurement.
The standalone financial statement has been prepared in accordance with Indian Accounting
Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016 and other relevant provisions
of the Act.
These financial statements have been prepared to comply in all material respects with the
Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and
the relevant provisions of the Companies Act, 1956/2013 read together with paragraph 7 of the
Companies (Accounts) Rules, 2014 (Indian GAAP). The financial statements have been prepared
under the historical cost convention on an accrual basis and going concern basis. The accounting
policies that have been consistently applied by the company are consistent with thoseused in the
previous year.
(b) Functional and Presentation Currency
The Financial Statements are prepared in Indian Rupees (“INR”) which is the Company’s Functional
Currency for its Operations. All Financial Information presented in INR has been rounded to the
nearest ‘lakhs’, unless stated otherwise.
3.2 Use of estimates
The preparation of Financial Statements in conformity with the Ind AS requires the Management
to make estimates, judgements, and assumptions that affect the reported amounts of revenue,
expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting
period.
Although these estimates are based on the management’s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the outcome requiring a material
adjustment to the carrying amounts of assets or liabilities in future periods.
3.3 Significant Accounting Policies
(a) Revenue Recognition
i. Revenue is recognized when the significant risks and rewards of ownership have been
transferred to the customers. Revenue is measured net of returns, trade discounts and volume
rebates. The timing of the transfer of risks and rewards varies depending on the individual
terms of the sales agreement.
ii. Revenues from contracts priced on a time and material basis are recognized when services
are rendered and related costs are incurred.
iii. Revenues from turnkey contracts, which are generally time bound fixed price contracts, are
recognised over the life of the contract using the proportionate completion method, with
contract costs determining the degree of completion. Foreseeable losses on such contracts are
recognised when probable.
iv. Revenues from maintenance contracts are recognised pro-rata over the period of the contract.
v. Revenue from sale of goods will be recognized when the delivery of goods has happened, and
ownership is transferred to buyer.
vi. Interest income is recognized on the accrual basis using transactional interest rates.
(b) Property, Plant and Equipment (PPE)
i. All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.
ii. Recognition and measurement: Normally Property, plant and equipment are measured at
cost less accumulated depreciation and impairment losses, if any. Cost includes expenditures
directly attributable to the acquisition of the asset. The Company has elected to apply the
optional exemption to use this previous GAAP value as deemed cost on 1 April 2017, the date
of transition.
iii. Depreciation has not been provided on straight line method based on life assigned to each
asset in accordance with Schedule II of the Companies Act 2013.
(c) Borrowing cost
Borrowing costs attributable to the acquisition/construction of qualifying assets are capitalized and
form part of the cost of the qualifying assets. A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended use. All other borrowing costs are charged
to revenue as an expense.
(d) Income Tax
Current Tax is determined as the amount of tax payable in respect of taxable income for the period.
Deferred Tax is recognized, on timing differences, being the difference between taxable Income
and accounting Income that originates in one period and are capable of reversal in oneor more
subsequent periods. Deferred Tax assets are recognized subject to the consideration of
prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance
sheet date are applied.
(e) Inventories
Inventories are measured at lower of cost and net realizable value after providing for obsolescence,
if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including
manufacturing overheads incurred in bringing them to their respective present location and
condition. Cost of raw materials, work-in- progress, packing materials, trading and other products
are determined on first-in-first-out basis.
(f) Deferred Revenue Expenditure
Expenditure incurred on advertisement and other expenses for promotion of new products and
recruitment of key personnel is amortized over a period of five years, having due regard to the
nature of expenses and the benefit that may be derived there from. Expenditure on routine product
advertisement and personnel recruitment is expensed off to profit & loss account in the year in
which it is incurred.
(g) Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in
hand and short-term deposits with banks with an original maturity of three months or less.
(h) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated.
(i) Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost. Gains and losses are recognised in profit and loss when the liabilities are
derecognized. This category generally applies to interest-bearing loans and borrowings.
(j) Foreign currency transactions
Transactions arising in foreign currency during the year are recorded at average rates closely
approximating those ruling at the transaction dates. Current Assets and Current Liabilities,
denominated in foreign currency, are translated at the exchange rate prevalent at the date of
the Balance Sheet. Exchange differences arising on foreign currency transactions/translations
are recognized as income or expense in the Profit & Loss Account, except those relating to the
acquisition of fixed assets, which are adjusted against the cost of the assets.
(k) Leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of
the leased item, are classified as operating leases. Operating lease payments are recognized as
an expense in the Statement of Profit and Loss on a Straight - line basis over the lease term.
(l) Employee benefits
All Employee Benefits payable for rendering the service such as Salaries, Wages etc. and the
expected cost of ex-gratia are recognised in the period in which the employee renders the related
service. A Liability is recognised for the amount expected to be paid when there is a present legal
or constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.
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