This note provides a list of material accounting policies
adopted in the preparation of these financial statements.
(a) Basis of preparation
(i) The standalone financial statements have been
prepared to comply in all material aspects with
Indian Accounting Standards (Ind-AS) notified
under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time
to time) under Section 133 of the Companies Act,
2013 and other provisions of the Companies Act,
2013.
These financial statements were authorised
for issue in accordance with a resolution of the
Directors on 21st May, 2026.
(ii) Historical cost convention
The financial statements have been prepared on a
historical cost basis, except for the following:
a) Investment except investments in
subsidiaries, joint ventures and associates
are carried at fair value;
(iii) Use of estimate
As required under the provisions of Ind AS for
preparation of financial statements in conformity
thereof, the management has made judgements,
estimates and assumptions that affect the
application of accounting policies, and the reported
amount of assets, liabilities, income and expenses
and disclosures. Actual results may differ from
these estimates. Estimates and underlying
assumptions are reviewed on a periodic basis.
Revisions to accounting estimates are recognized
in the period in which the estimates are revised and
in any future periods affected.
(b) Revenue from Operations
The Company recognizes revenue from contracts with
customers at transaction price, which is the fair value
of the consideration received or receivable, stated net
of tax. Revenue is recognised when its amount can
be reliably measured and it is probable that future
economic benefits will flow to the entity. Revenue from
contract centre and transaction processing services
comprises fixed fee based service contracts. Revenue
from fixed fee based service contracts is recognized on
achievement of performance milestones specified in the
customer contracts.
(c) Other Income
Income from investments and deposits etc. is accounted
for on accrual basis inclusive of related tax deducted at
source, where applicable. Interest income arising from
financial assets is accounted for using amortised cost
method.
Dividend income is recognised when the right to receive
dividend is established.
(d) Taxes
Current tax represents the amount payable based on
computation of tax as per prevailing taxation laws under
the Income Tax Act, 1961.
Provision for deferred taxation is made using liability
method on temporary difference arising between the
tax bases of assets and liabilities and their carrying
amounts in the financial statements using tax rates (and
laws) that have been enacted or substantially enacted
by the end of the reporting period and are expected to
apply when the related deferred tax asset is realised or
the deferred tax liability is settled. Deferred Tax Assets
are recognized subject to the consideration of prudence
and are periodically reviewed to reassess realization
thereof. Deferred Tax Liability or Asset will give rise to
actual tax payable or recoverable at the time of reversal
thereof.
Current and Deferred tax relating to items recognised
outside profit or loss, that is either in other comprehensive
income (OCI) or in equity, is recognised along with the
related items.
(e) Property, Plant and Equipment
Tangible assets are stated at acquisition cost, net of
accumulated depreciation and accumulated impairment
losses, if any. The cost comprises of purchase cost,
borrowing cost, if capitalised, and other directly
attributable cost of bringing the asset to its working
condition for intended use. Any trade discount and
rebate are deducted in arriving at the purchase price.
Subsequent acquisition of these assets, are stated at
cost of acquisition together with any incidental expenses
related to acquisition and appropriate borrowing costs.
An impairment loss is recognized where applicable,
when the carrying value of tangible assets of cash
generating unit exceed its market value or value in use,
whichever is higher.
NOTE-2 MATERIAL ACCOUNTING POLICIES (CONTD.)
Depreciation on Property, Plant and Equipment is
calculated on a straight-line basis using the rates
arrived at based on the useful lives estimated by
the management. The management believes that
these estimated useful life are realistic and reflect fair
approximation of the period over which the assets are
likely to be used. These useful lives are different in
some cases than those indicated in Schedule II of the
Companies Act 2013, which are disclosed below.
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.
Useful Life of Property, Plant & Equipment considered
are as follows:-
1. Freehold Land - Unlimited
2. Building & Structures - 50-99 Years
3. Leasehold Improvements - 3-5 Years
4. Computers - 3-6 Years
5. Furniture and Fixtures - 5 Years
6. Office Equipment - 3-5 Years
7. Vehicle - 5 Years
(f) Intangible Assets
Intangible assets comprising Computer Software are
expected to provide future enduring economic benefits
are stated at cost of acquisition / implementation
/ development less accumulated amortisation. An
impairment loss is recognized where applicable,
when the carrying value of intangible assets of cash
generating unit exceed its market value or value in use,
whichever is higher.
Software purchased together with the related hardware
is capitalized and depreciated at the rates applicable to
related assets.
Software product development costs are expensed as
incurred during the research phase until technological
feasibility is established. Software development
costs incurred subsequent to the achievement of
technological feasibility are capitalized and amortized
over the estimated useful life of the products as
determined by the management. This capitalization is
done only if there is an intention and ability to complete
the product, the product is likely to generate future
economic benefits, adequate resources to complete
the product are available and such expenses can be
accurately measured. Such software development costs
comprise expenditure that can be directly attributed, or
allocated on a reasonable and consistent basis, to the
development of the product.
Cost of intangible assets are amortised over its
estimated useful life based on managements’ external
or internal assessment. Management believes that the
useful lives so determined best represent the period over
which the management expects to use these assets.
The useful life is reviewed at the end of each reporting
period for any changes in the estimates of useful life and,
accordingly, the asset is amortized over the remaining
useful life. Useful life is considered in between 3-6 years.
(g) Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet
comprise cash at banks, on hand and deposits with
original maturity of 3 months or less.
For the purpose of presentation in the Cash Flow
Statement, cash and cash equivalents consist of
balances as defined above.
(h) Financial Assets
The financial assets are classified in the following
categories:
1. Financial assets measured at amortised cost,
2. Financial assets measured at fair value through
profit and loss,
3. Financial assets measured at fair value through
Other Comprehensive Income and,
4. Equity Instruments
The classification of financial assets depends on the
Company's business model for managing financial
assets and the contractual terms of the cash flow.
Initial Recognition:
At initial recognition, the financial assets are measured
at its fair value plus transaction costs that are directly
attributable to the acquisition of the financial asset.
Financial Assets measured at Amortised Cost
Assets that are held for collection of contractual cash
flows and where those cash flows represent solely
payments of principal and interest are measured at
amortised cost. After initial measurement, such financial
assets are subsequently measured at amortised cost
using the effective interest rate method. The losses
arising from impairment are recognised in the Statement
of Profit and Loss.
Financial Instruments measured at Fair Value through
Profit and Loss (FVTPL)
Financial instruments included within fair value through
profit and loss category are measured initially as well as
at each reporting period at fair value plus transaction
costs as applicable. Fair value movements are recorded
NOTE-2 MATERIAL ACCOUNTING POLICIES (CONTD.)
in Statement of Profit and Loss. Investments in mutual
funds are measured at fair value through profit and loss.
Financial Instruments measured at Fair Value through
Other Comprehensive Income (FVTOCI)
Financial instruments included within fair value through
other comprehensive income category are measured
initially as well as at each reporting period at fair
value plus transaction costs as applicable. Fair value
movements are recorded under Other Comprehensive
Income (OCI).
Equity Instruments
Equity investments in scope of Ind AS 109 are measured
at fair value.
At initial recognition, the Company make an irrevocable
election to present in other comprehensive income
subsequent changes in the fair value. If the Company
decides to classify an equity instrument as at FVTOCI,
then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI.
Investment in Subsidiaries, Associates and Joint
Ventures are carried at cost less provision for impairment
loss, if any.
Investments are tested for impairment whenever events
or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is
recognized for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
Impairment of Financial Assets
The Company assesses on a forward looking basis
the expected credit losses associated with its assets
carried at amortised cost. The impairment methodology
applied depends on whether there has been a significant
increase in credit risk.
For trade receivables the simplified approach of
expected lifetime losses has been recognised from
initial recognition of the receivables as required by Ind
AS 109 Financial Instruments.
(i) Financial Liabilities
Financial liabilities are measured at amortised cost
using the effective interest rate method.
For trade and other payables maturing within one year
from the balance sheet date, the carrying amount
approximates fair value to short-term maturity of
these instruments.
A financial liability (or a part of financial liability) is
de-recognised from Company's balance sheet when
obligation specified in the contract is discharged or
cancelled or expired.
(j) Employee Benefits
Short- term employee benefit obligations are measured
on an undiscounted basis and are expensed as the
related service is provided. A liability is recognised for
the amount expected to be paid e.g., under short-term
cash bonus, if the Company has a present legal or
constructive obligation to pay this amount as a result of
past service provided by the employee, and the amount
of obligation can be estimated reliably.
Contributions to Provident Fund are accounted for on
accrual basis.
The Company, as per its schemes, extend employee
benefits current and/or post retirement, which
are accounted for on accrual basis and includes
actuarial valuation as at the Balance Sheet date in
respect of gratuity, leave encashment and certain
other retiral benefits, to the extent applicable, made
by independent actuary.
Re-measurements, comprising of actuarial gains and
losses, excluding amounts included in net interest on the
net defined benefit liability, are recognized immediately
in Other Comprehensive Income in the period in which
they occur.
Re-measurements are not reclassified to profit or loss
in subsequent periods. Net interest is calculated by
applying the discount rate to the net defined benefit
liability or asset. The Company recognizes the following
changes in the net defined benefit obligation as an
expense in the Statement of Profit and Loss:
(i) Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and
(ii) Net interest expense or income.
The current and non-current bifurcation has been done
as per the Actuarial report.
(k) Earnings per Share
(i) Basic earnings per Share
Basic earnings per share is calculated by dividing:
a) The profit attributable to owners of the
Company
b) by the weighted average number of equity
shares to be issued during the financial year,
adjusted for bonus elements in equity shares
issued during the year.
(ii) Diluted earnings per Share
Diluted earnings per share adjusts the figures used
in their determination of basic earnings per share
to take into account:
a) the after income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and
b) the weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of all
dilutive potential equity shares.
(l) Leases
As a Lessee:
At the date of commencement of the lease, the
Company recognises a right-of -use asset (""ROU"") and
a corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term of 12
months or less (short term lease) and low value assets.
For these, the Company recognises the lease payments
as an operating expense on a straight-line basis over
the term of the lease.
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