2. Significant accounting policies:

2.1 Statement of Compliance:

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

2.2 Basis for preparation of financial statements

These financial statements are presented in Indian rupees ("INR") which is also the Company's functional
currency. All amounts have been reported in Indian Rupees, except for share and earnings per share data,
unless otherwise stated. The financial statements of the Company have been prepared under the historical
cost convention, on the basis of a going concern, with revenue recognized and expenses accounted on their
accrual, including provisions / adjustments for committed obligations and amounts, determined as payable or
receivable during the year.

2.3 Use of Estimates and Judgment:

The preparation of financial statements requires management to make judgments, estimates and assumptions,
as described below, that affect the reported amounts and the disclosures. The Company based its assump¬
tions and estimates on parameters available when the financial statements were prepared and reviewed at
each Balance Sheet date. Uncertainty about these assumptions and estimates could result in outcomes that
may require a material adjustment to the reported amounts and disclosures.

2.4 Cash and cash equivalents

Cash comprises cash on hand and fixed deposits with banks. Cash equivalents are short term, highly liquid
investments that are readily convertible into known amounts of cash and which are subject to insignificant risk
of changes in value.

2.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from operating, investing and financing activities of the Company
are segregated based on the available information.

2.6 Property, plant and equipment:

Fixed assets are capitalized at acquisition cost inclusive of freight, installation cost and other incidental ex¬
penses incurred during the year.

2.7 Depreciation and amortisation

Depreciation has been provided on the straight-line method at the rates and in the manner prescribed in
Schedule II of the Companies Act, 2013.

2.8 Revenue Recognition:

Income from services

Revenues from software related services are accounted for on the basis of services rendered, as per terms
of contract.

2.9 Other Income

Interest income is recognized on time proportion basis.

Gain / Loss on sale of Investments in Mutual Funds is accounted as and when Mutual Funds are sold.

2.10 Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction.
Exchange differences arising on settlement of short-term foreign currency monetary assets are recognized as
income or expense in the statement of Profit and Loss account. Monetary assets and liabilities denominated in
foreign currency are translated at the rates of exchange at the balance sheet date and resultant gain or loss is
recognized in the statement of Profit and Loss account.

2.11 Government Grants:

Government grants available to the company are recognized when there is a reasonable assurance that the
conditions attached to the grant will be complied with and reasonably certain that grants will be received.

2.12 Investments:

Investments in Mutual Funds are classified into Non-current assets in financial assets under Investments. All
Mutual Fund Investments are measured at fair value, with value changes recognized in Statement of Profit and
Loss under "Other Comprehensive Income".

2.13 Employee Benefits:

Defined contribution plans:

Contributions in respect of Employees Provident Fund and Pension Fund are made to a fund administered and
managed by the Government of India and are charged as incurred on accrual basis.

Defined benefit plans:

The Company also provides for other employee benefits in the form of gratuity. The Company's Contributions to
Gratuity scheme are determined by actuarial valuation and have been made to an approved Fund and the same
is charged as expenditure to Profit & Loss account. The gratuity fund is managed by the Life Insurance
Corporation of India (LIC).

Long-term employee benefits

The Company also provides to eligible employee benefits in the form of Leave Encashment. The Company's
Contributions are determined by actuarial valuation and have been made to an approved Fund and the same is
charged as expenditure to Statement of Profit & Loss account. The Leave encashment fund is managed by the
Life Insurance Corporation of India (LIC).

Short-term employee benefits:

The undiscounted amount of short-term employee benefits i.e performance incentive expected to be paid in
exchange for the services rendered by employee are recognized during the year when employees render the
service.

2.14 Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the
cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for
intended use. All other borrowing costs are charged to revenue.

2.15 Earnings per share:

The earnings considered in ascertaining the company's EPS comprises the net profit / loss after tax (and include
the post-tax effect of any extraordinary items). The number of shares used in computing Basic EPS is the
weighted average number of shares outstanding during the year. The number of shares used in computing
Diluted EPS comprises of weighted average shares considered for deriving Basic EPS, and also the weighted
average number of equity shares which could have been issued on the conversion of all dilutive potential equity
shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have
been issued at a later date.

2.16 Impairment of Assets:

In accordance with Ind AS 36, the company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. An asset is treated as impaired when the carrying cost exceeded its
recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an
asset is identified as impaired. The impairment loss recognized in a prior accounting period is reversed if there
has been a change in the estimate of recoverable amount.