2. Material Accounting Policies
(a) Statement of Compliance
The Standalone 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.
(b) Basis of Preparation
These Standalone Financial statements have been prepared in Indian Rupee (?) which is the Functional Currency
of the Company. All amounts have been reported in Indian Rupees in Lacs, except for share and earnings per share
data, unless otherwise stated.
These Standalone financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS),
under historical cost convention on accrual 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. 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 twelve months.
Accounting policies have been consistently applied except where a newly-issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
As the year-end figures are taken from the source and rounded to the nearest digits, the figures reported for the
previous quarters might not always add up to the year-end figures reported in this statement.
The statement of cash flows has been prepared under indirect method.
(c) Use of Estimates And Judgements:
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind
AS requires the management of the Company to make estimates and assumptions that affect the reported balances
of assets and liabilities, disclosures of contingent liabilities as at the date of the financial statements and the
reported amounts of income and expense for the periods presented. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised prospectively.
i) Income tax expense comprises current tax expense and the net change in the Deferred Tax Asset or Liability
during the year. The major tax jurisdiction for the Company is India. Current and deferred taxes are recognised in
statement of profit and loss, except when they relate to items that are recognised in other comprehensive income
or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive
income or directly in equity, respectively.
ii) Current income taxes: The company recognizes tax liabilities based upon self-assessment as per the tax laws.
When the final tax outcome of these matters is different from the amounts that were initially recognised, such
differences will impact the income tax and deferred tax provisions in the period in which such final determination
is made.
iii) Deferred Income taxes: Deferred income tax is recognised using the balance sheet approach. Deferred income
tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the
tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and affects neither
accounting nor taxable profit or loss at the time of the transaction. Deferred income tax assets are recognised
to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences and the carry forward of unused tax credits and unused tax losses can be utilised. The carrying
amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
to be utilised. Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to
apply to taxable income in the years in which the temporary differences are expected to be received or settled.
iv) Useful Life of property, plant and equipment The Company reviews the useful life of property, plant and
equipment at the end of each reporting period. This reassessment may result in change in depreciation expense
in future periods.
(d) 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.
The Company's revenues are derived from sale of services and recognized as per IND AS 115.
? Sale of Services:
Service income is recognized as and when the underlying services are performed. There was no change in the
point of recognition of revenue upon adoption of Ind AS 115. Upfront non-refundable payments received under
these arrangements continue to be deferred and are recognized over the expected period that related services
are to be performed.
? 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.
(e) Cost Recognition
Cost and expenses are recognised when incurred and have been classified according to their nature. The costs of the
Company are broadly categorised into employee benefit expenses, Depreciation & Amortisation expense, Finance
Cost and Administrative & Other operating expenses. Employee benefit expenses include Salaries including bonus,
incentives and allowances, contributions to provident and other funds and staff welfare expenses. Administrative
and Other Operating expenses include Onsite Server Rentals, Power & Fuel, Fees to external consultants, facility
expenses, travel expenses, etc.
(f) Foreign Currency
Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign
currency denominated monetary assets and liabilities are retranslated at the exchange rate prevailing on the balance
sheet date and exchange gains and losses arising on settlement and restatement are recognised in the statement of
profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies
are not retranslated.
(g) 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.
The Company derecognises a financial asset only 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 entity. The Company derecognises financial liabilities when, and only when, the Company's obligations are
discharged, cancelled or have expired.
(h) Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand and Deposits.
Cash and Cash Equivalents includes as at 31st Mar 2025 and 31st Mar 2024 restricted cash and bank balances of
H215.02 lakhs and H952.36 lakhs respectively. These restrictions are primarily on account of bank balance held as
marginal money deposit against guarantees.
Bank borrowings for working capital not considered as a part of Cash and Cash Equivalents.
Financial Assets at amortised cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
whose objective is to hold these assets to collect contractual cash flows and the contractual terms of the financial
assets 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 through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if these financial assets are held
within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are
solely payments of principal and interest on the principal amount outstanding and selling financial assets.
Financial assets at fair value through profit or loss
Financial assets are measured at fair value through profit or loss unless they are measured at amortised cost or at
fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to
the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in
statement of profit and loss.
Financial Liabilities
Financial liabilities are measured at amortised cost using the effective interest method.
Equity instruments
An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting all
of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received net of direct
issue cost.
|