All e Technologies Ltd. कंपली की लेखा नीति

Mar 31, 2025

2 Significant accounting policies

The Financial statements have been prepared using
the significant accounting policies and measurement
bases summarized below:

2.1 Basis of accounting and preparation of
financial statements

T he financial statements of the Company have been
prepared on Going Concern basis in accordance with
the accounting principles generally accepted in India.
Further, the financial statements have been prepared
on historical cost convention on the accrual basis.

GAAP comprises mandatory Accounting Standards
as prescribed under section 133 of the Companies
Act 2013(''Act '') read with rule 7 of the Companies
(Accounts) Rules, 2014, the provisions of the Act (to
the extent notified).

The financial statements are presented in Indian
Rupees (?) which is also the functional currency of
the Company."

2.2 Use of estimates

The preparation of the financial statements in
conformity with Indian GAAP requires the Management
to make estimates and assumptions considered in the
reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and
expenses during the year.

The Management believes that the estimates used in
preparation of the financial statements are prudent
and reasonable. Future results could differ due to
these estimates and the differences between the
actual results and the estimates are recognized in the
periods in which the results are known / materialize.

2.3 Revenue recognition

Revenue from Business Solutions & IT related
Services:

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.

Revenue is recognized upon transfer of control
of promised products or services ("performance
obligations”) to customers in an amount that reflects
the consideration the Company has received or
expects to receive in exchange for these products
or services ("transaction price”). When there is
uncertainty as to collectability, revenue recognition is
postponed until such uncertainty is resolved.

Revenue that has been received during the year but
related services have not been rendered, the same has
been classified as "unearned revenue" under current
liabilities. The said revenue shall be recognized as and
when the related services will be rendered.

Tevenue with respect to fixed price contracts where
performance obligation is transferred over time and
where there is no uncertainty as to measurability
or collection of consideration is recognized in
accordance with the completion of milestones defined
in customer contracts or based on proportionate
performance method. In case of short term contracts,
such revenue is recognised using completed contract
method.

2.4 Interest income

Interest income is recognized on a time proportion
basis taking into account the amount outstanding and
the applicable interest rate. Interest income is included
under the head "other income” in the statement of
profit and loss.

2.5 Other Income

Other income is recognized on accrual basis.

2.6 (i) Property, Plant and Equipments

T roperty, Plant and Equipment are carried at cost
less accumulated depreciation / amortisation and
impairment losses, if any. The cost of Property, Plant
and Equipment comprises its purchase price net of
any trade discounts and rebates, any import duties
and other taxes (other than those subsequently

recoverable from the tax authorities), any directly
attributable expenditure on making the asset ready
for its intended use, other incidental expenses.

(ii) Depreciation

D epreciation on Property, Plant and Equipment has
been provided on the written down value method
as per the useful life prescribed in Schedule II to the
Companies Act, 2013 ( i. e 1. Plant and Machinery -15
Years, 2. Furniture and Fixtures - 10 Years, 3. Office
Equipments- 5 Years, 4. Electrical Installation- 10
Years, 5. Computer or Data Processing Equipments-
3 Years, 6. Vehicles- 8 Years, 7 Intangible Assets- 5
Years).

D he useful life of Property, Plant and Equipments are
reviewed by the management at each financial year-
end and revised, if appropriate. In case of a revision,
the unamortized depreciable amount is charged over
the revised remaining useful life.

D roperty, Plant and Equipment are eliminated from the
financial statements on disposal or when no further
benefits are expected from their use and disposal.

2.7 (i) Intangible Assets

I ntangible Assets are stated at cost of acquisition net
of recoverable taxes, trade discount and rebates less
accumulated amortisation/depletion and impairment
losses, if any. Such cost includes purchase price,
borrowing costs, and any cost directly attributable
to bringing the asset to its working condition for
the intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate
variations attributable to the Intangible Assets.

I ntangible assets that are acquired/developed by
the Company i.e. Software/Business Solutions/
Modules are measured initially at cost. After initial
recognition, intangible assets are carried at cost less
any accumulated amortization and impairment loss, if
any. Subsequent expenditure is capitalized only when
it increases the future economic benefits from the
specific asset to which it relates.

(ii) Amortization

Amortization method and useful life of assets are
reviewed at each reporting date. If the useful life of an
asset is estimated to be significantly different from
the previous estimates, the amortization period is
changed accordingly. If there has been a significant
change in the expected pattern of economic benefits

from the asset, the amortization method is changed
to reflect the changed pattern.

2.8 Impairment of Assets

The carrying values of assets / cash generating
units at each balance sheet date are reviewed for
impairment if any indication of impairment exists.
If the carrying amount of the assets exceed the
estimated recoverable amount, an impairment is
recognised for such excess amount. The impairment
loss is recognised as an expense in the Statement of
Profit and Loss. The recoverable amount is the greater
of the net selling price and their value in use. Value
in use is arrived at by discounting the future cash
flows to their present value based on an appropriate
discount factor.

When there is indication that an impairment loss
recognised for an asset (other than a revalued asset)
in earlier accounting periods no longer exists or may
have decreased, such reversal of impairment loss is
recognised in the Statement of Profit and Loss, to
the extent the amount was previously charged to the
Statement of Profit and Loss.

2.9 Foreign Currency transactions and
translations

Transactions in foreign currencies entered into by
the Company are accounted at the exchange rates
prevailing on the date of the transaction or at rates
that closely approximate the rate at the date of the
transaction.

Foreign currency monetary items (other than
derivative contracts) of the Company, outstanding
at the balance sheet date are restated at the year-
end rates. Non-monetary items of the Company are
carried at historical cost.

Exchange differences arising on settlement /
restatement of foreign currency monetary assets and
liabilities of the Company are recognised as income or
expense in the Statement of Profit and Loss.

2.10 Employee Benefits

1) Short Term Employee Benefits

D ll benefits payable to employees wholly within twelve
months of rendering the service are classified as short
term employee benefits. Benefits such as salaries,
wages, short term compensated absences, the
expected cost of bonus, ex-gratia, or any other short-

term employee benefits are recognized in the period
in which the employee renders the related service.

2) Post Employment Benefits

(i) Defined contribution plans

The Company has opted for defined contribution
plan provident fund scheme run by the Government.
The contribution paid/payable under the scheme is
recognized during the period in which the employee
renders the related service.

(ii) Defined benefit plans

The employees'' have gratuity scheme in accordance
with the Payment of Gratuity Act, 1972 and is a defined
benefit plan. The present value of the obligation under
such defined benefit plans is determined based on
actuarial valuation carried as at Balance Sheet
date using the Projected Unit Credit Method which
recognises each period of service as giving rise to
additional unit of employee benefit entitlement and
measures each unit separately to build up the final
obligation.

The obligation is measured at the present value of the
estimated future cash flows. The discount rates used
for determining the present value of the obligation
under defined benefit plans, is based on the market
yields on Government securities as at the balance
sheet date having maturity periods approximating to
the terms of related obligations. Actuarial gain and
losses are recognized immediately in the profit & loss
account.

3) Long Term Employee Benefits

T he obligation for long term employee benefits such
as long term compensated absences is recognized
in the same manner as in the case of defined benefit
plans as mentioned in note above."

iii) Share Based Payment - Employee Stock Option
Scheme (''ESOP'')

Expenses pertaining to ESOPs are recognised on
time-proportion basis from grant date to vesting date
on completion of specified service conditions set out
in the company''s ESOP policy.

The difference between Exercise Price and the Fair
Value/Market Price of the equity shares on the grant
date is recognised as an expense in the profit and loss
account on time-proportion basis.

2.11 Investments

Investments that are readily realizable and are
intended to be held for not more than one year from
the balance sheet date are classified as current
investments and are stated at lower of cost and fair
market value. All other investments are classified as
long term investments.

Tong term investments are stated at cost of
acquisition. Provision, if any, is made to recognise a
decline other than a temporary , in the value of long
term investments.

2.12 Leases

(i) Operating Leases

Tease arrangements where the risks and rewards
incidental to ownership of an asset substantially vest
with the lessor are recognised as operating leases.
Lease rentals under operating leases are recognised in
the Statement of Profit and Loss over the lease term.

(ii) Finance Leases

The lower of the fair value of the assets and present
value of the minimum lease rentals is capitalised as
Fixed Assets with corresponding amount disclosed
as lease liability. The principal component in the lease
rental is adjusted against the lease liability and the
interest component is charged to Profit and Loss
Statement.

2.13 Earnings per share

Basic earnings per share is computed by dividing the
profit / (loss) after tax (including the post tax effect of
extraordinary items, if any) by the weighted average
number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the
profit / (loss) after tax (including the post tax effect of
extraordinary items, if any) as adjusted for dividend,
interest and other charges of expense or income
relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered
for deriving basic earnings per share and the weighted
average number of equity shares which could have
been issued on the conversion of all dilutive potential
equity shares.

2.14 Taxes on income

Current tax is the amount of tax payable on the taxable
income for the year as determined in accordance with
the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being
the differences between the taxable income and the
accounting income that originate in one period and
are capable of reversal in one or more subsequent
periods.

Deferred tax is measured using the tax rates and the
tax laws enacted or substantially enacted as at the
reporting date. Deferred tax liabilities are recognized
for all timing differences. Deferred tax assets in
respect of unabsorbed depreciation and carry forward
of losses are recognized only if there is virtual certainty
that there will be sufficient future taxable income

available to realize such assets. Deferred tax assets
are recognized for timing differences of other items
only to the extent that reasonable certainty exists
that sufficient future taxable income will be available
against which these can be realized. Deferred tax
assets and liabilities are offset if such items relate
to taxes on income levied by the same governing tax
laws and the Company has a legally enforceable right
for such set off. Deferred tax assets are reviewed at
each Balance Sheet date for their reliability.

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Mar 31, 2024

2. Significant accounting policies

The Financial statements have been prepared using the significant accounting policies and measurement bases summarized below:

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared on Going Concern basis in accordance with the accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values.

GAAP comprises mandatory Accounting Standards as prescribed under section 133 of the Companies Act 2013(''Act '') read with rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or revision to an existing Accounting Standard requires a change in the accounting policy hitherto in use in India (Indian GAAP).

The financial statements are presented in Indian Rupees (?) which is also the functional currency of the Company.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year.

The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.3 Revenue recognition

Revenue from Business Solutions & IT related Services:

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.

Revenue is recognized upon transfer of control of promised products or services

(“performance obligations”) to customers in an amount that reflects the consideration the Company has received or expects to receive in exchange for these products or services

(“transaction price”). When there is

uncertainty as to collectability, revenue

recognition is postponed until such uncertainty is resolved.

Revenue that has been received during the year but related services have not been rendered, the same has been classified as "unearned revenue" under current liabilities. The said revenue shall be recognized as and when the related services will be rendered.

''Revenue with respect to fixed price contracts where performance obligation is transferred over time and where there is no uncertainty as to measurability or collection of consideration is recognized in accordance with the completion of milestones defined in customer contracts or based on proportionate performance method. In case of short term contracts, such revenue is recognised using completed contract method. Revenue with respect to fixed price contracts where performance obligation is transferred over time and where there is no uncertainty as to measurability or collection of consideration is recognized in accordance with the completion of milestones defined in customer contracts or based on proportionate performance method. In case of short term contracts, such revenue is recognised using completed contract method.

2.4 Interest income

''Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “other income” in the statement of profit and loss.

2.5 Other Income

Other income is recognized on accrual basis.

2.6 a) Property, Plant and Equipment and Depreciation

(i) Property, Plant and Equipments

Property, Plant and Equipment are carried at cost less accumulated depreciation / amortisation and impairment losses, if any. The cost of Property, Plant and Equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses.

(ii) Depreciation

''Depreciation on Property, Plant and Equipment has been provided on the written down value method as per the useful life prescribed in Schedule II to the Companies Act, 2013. The useful life of Property, Plant and Equipments are reviewed by the management at each financial year-end and revised, if appropriate. In case of a revision, the unamortized depreciable amount is charged over the revised remaining useful life. Property, Plant and Equipment are eliminated from the financial statements on disposal or when no further benefits are expected from their use and disposal.

2.7 (i) Intangible Fixed Assets

Intangible assets that are

acquired/developed by the Company i.e. Software/Business Solutions/Modules are measured initially at cost. After initial recognition, intangible assets are carried at cost less any accumulated amortization and impairment loss, if any. Subsequent expenditure is capitalized only when it increases the future economic benefits from the specific asset to which it relates. ''Product development costs are recognized as intangible assets, when feasibility has been established, the Company has committed technical, financial and other resources to complete the development and it is probable that the asset will generate probable future economic benefits.

(ii) Amortization

''Amortization method and useful lives are reviewed at each reporting date. If the useful life of an asset is estimated to be significantly different from the previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern.

2.8 Impairment of Assets

''The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment if any indication of impairment exists. If the carrying amount of the assets exceed the estimated recoverable

amount, an impairment is recognised for such excess amount. The impairment loss is recognised as an expense in the Statement of Profit and Loss. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor.

''When there is indication that an impairment loss recognised for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, to the extent the amount was previously charged to the Statement of Profit and Loss.

2.9 Foreign Currency transactions and translations

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Foreign currency monetary items (other than derivative contracts) of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost.

Exchange differences arising on settlement / restatement of foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

2.10 Employee Benefits

1) Short Term Employee Benefits

''All benefits payable to employees wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences, the expected cost of bonus, ex-gratia, or any other short-term employee benefits are recognized in the period in which the employee renders the related service.

2) Post Employment Benefits

(i) Defined contribution plans

The Company''s state governed provident fund scheme is defined contribution plans. The contribution paid/payable under the scheme is recognized during the period in which the employee renders the related service.

(ii) Defined benefit plans

The employees'' have gratuity scheme in accordance with the Payment of Gratuity Act, 1972 and is a defined benefit plan. The present value of the obligation under such defined benefit plans is determined based on actuarial valuation carried as at Balance Sheet date using the Projected Unit Credit Method which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date having maturity periods approximating to the terms of related obligations. Actuarial gain and losses are recognized immediately in the profit & loss account.

3) Long Term Employee Benefits

The obligation for long term employee benefits such as long term compensated absences is recognized in the same manner as in the case of defined benefit plans as mentioned in note above.

iii) Share Based Payment - Employee Stock Option Scheme (''ESOP'')

Expenses pertaining to ESOPs are recognised on time-proportion basis from grant date to vesting date on completion of specified service conditions set out in the company''s ESOP policy.

The difference between Exercise Price and the Fair Value/Market Price of the equity shares on the grant date is recognised as an expense in the profit and loss account on time-proportion basis.

2.11 Investments

Investments that are readily realizable and are intended to be held for not more than one year from the balance sheet date are classified as current investments and are stated at lower of cost and fair market value. All other investments are classified as long term investments.

Long term investments are stated at cost of acquisition. Provision, if any, is made to recognise a decline other than a temporary , in the value of long term investments.

2.12 Leases

(i) Operating Leases

''Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss over the lease term.

(ii) Finance Leases

The lower of the fair value of the assets and present value of the minimum lease rentals is capitalised as Fixed Assets with corresponding amount disclosed as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to Profit and Loss Statement.

2.13 Earnings per share

''Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges of expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

2.14 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing

differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized.

Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability.

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Mar 31, 2023

1 Corporate information

All e Technologies Limited is a leading provider of Business Solutions to Growth Companies. Streamlining and automating core business processes with ‘Product Based'' solutions built with Microsoft Dynamics ERP, CRM developing ‘Custom Built'' solutions for client specific applications and providing IT Services for all stages of software development and maintenance.

Place of Business:-

(i) UU-14, Vishakha Enclave, Pitampura, Delhi-110034 “

(ii) A-1, Sector-58, NOIDA, Gautam Buddha Nagar, Uttar Pradesh, 201301

2 Significant accounting policies

The Financial statements have been prepared using the significant accounting policies and measurement bases summarized below:

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared on Going Concern basis in accordance with the accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values.

GAAP comprises mandatory Accounting Standards as prescribed under section 133 of the Companies Act 2013(‘Act ‘) read with rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or revision to an existing Accounting Standard requires a change in the accounting policy hitherto in use in India (Indian GAAP).

The financial statements are presented in Indian Rupees (|) which is also the functional currency of the Company.”

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year.

The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these

estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.3 Revenue recognition Sale of product

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers.

Sales exclude Goods and Service Tax. GST is a consumption-based or destination-based tax, which implies that all tax components are levied at the point of supply. Hence, the state that will collect taxes will be decided by the place of consumption. “

income from services

The Company recognizes revenue from Software Implementation & support services mostly on time and material basis as and when invoices are raised in accordance with agreement with customers.

Revenues from fixed priced contracts are recognized when services are rendered and related costs are incurred.

2.4 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established. Any other income is accounted on receipt basis.

2.5 a) Property, Plant and Equipment and Depreciation

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date.

Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future economic benefits from such asset beyond its previously assessed standard of performance.

Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realizable value and are disclosed separately in the Balance Sheet.

Depreciation has been provided on the written down value over the useful life of the Asset prescribed in Schedule II of Companies Act 2013. Depreciation for the Asset purchased/sold during the period is proportionately charged.

The management has a policy of depreciating assets up to 5% of their salvage value.

b) intangible Assets and Depreciation

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less accumulated amortisation/depletion and impairment losses, if any. Such cost includes purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Intangible Assets.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

Other Indirect Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are considered as preoperative expenses and disclosed under Intangible Assets Under Development.

Gains or losses arising from derecognition of an Intangible Asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised. The Company''s intangible assets comprises assets with finite useful life which are amortised on written down value basis over the period of their expected useful life.

2.6 Foreign Currency transactions and translations initial recognition

Transactions in foreign currencies entered by the Company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at the Balance Sheet date

Foreign currency monetary items (other than derivative contracts) of the Company and its net investment in nonintegral foreign operations outstanding at the Balance Sheet date are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items), are translated at the exchange rate prevailing on the Balance Sheet date. Nonmonetary items are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the Company and its integral foreign operations are recognized as income or expense in the Statement of Profit and Loss.

The exchange differences on restatement / settlement of loans to non-integral foreign operations that are considered as net investment in such operations are accumulated in a “’’Foreign currency translation reserve”” until disposal / recovery of the net investment.

The exchange differences arising on restatement / settlement of long-term foreign currency monetary items are capitalized as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortized on settlement / over the maturity period of such items if such items do not relate to acquisition of depreciable fixed assets.

The unamortized balance is carried in the Balance Sheet as “Foreign currency monetary item translation difference account” net of the tax effect thereon.”

2.7 Employee Benefits

Employee benefits includes Provident Fund, , Gratuity Fund, Compensated absences (i.e. Leave Encashment), Long Service Awards and Post-Employment Medical Benefits.

i) Defined contribution plans

The Company''s contribution towards Provident Fund is considered as Defined Contribution Plan and are charged is an expense as it falls due based on the amount of contribution required to be made.

ii) Defined benefit plans

For Defined Benefit Plans in the form of Gratuity Fund and Post-Employment Medical Benefits, the cost of providing benefit is determined using the Projected Unit Credit Method, with Actuarial Valuations being carried out at the end of each Balance Sheet Date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they occur.

Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortized on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognized in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, as reduced by the fair value of scheme assets.

Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes."

iii) Share Based Payment - Employee Stock Option Scheme (‘ESOP’)

The fair value of options granted under employee stock option plan is recognised as an employee benefits expense with a corresponding increase in Share Option Oustanding Account under Reserves & Surplus. The total amount to be expensed is determined by referening to the fair value of options. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. Upon exercise of share options, the proceeds received are allocated to share capital up to the par value of the shares issued with any excess being recorded as share premium.

2.8 Investments

Investments are stated at cost. Fair Value of investments which are listed on any recognised stock exchange are mentioned for information purpose only.

2.9 Leases

In respect of Operating lease, Lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

2.10 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend,

interest and other charges of expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

2.11 Borrowing costs

Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan.

Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset is added to the cost of the assets.

Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

2.12 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty

exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability. “

2.13 Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events 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. Provisions (excluding retirement

benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes to accounts.

2.14 Current / non-current classification:

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set-out in the Act. Deferred tax assets and liabilities are classified as non-current assets and noncurrent liabilities, as the case may be.