CES Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

i) Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive),
as a result of a past event, it is probable that an outflow of economic benefits will be required
to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, considering the risks and
uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognised as an asset, if it is virtually certain
that reimbursement will be received and the amount of the receivable can be measured
reliably.

Provisions for onerous contracts are recognised when the expected benefits to be derived
by the Group from a contract are lower than the unavoidable costs of meeting the future
obligations under the contract. Provisions for onerous contracts are measured at the present
value of lower of the expected net cost of fulfilling the contract and the expected cost of
terminating the contract.

j) Revenue (Ind-AS 115)

The Group earns revenue primarily from providing IT services, IT Enabled Services,
consulting and business solutions. The Group offers a consulting-led, cognitive powered,
integrated portfolio of IT and IT Enabled, business solutions.

Revenues from customer contracts are considered for recognition and measurement when
the contract has been approved by the parties to the contract, the parties to contract are
committed to perform their respective obligations under the contract, and the contract is
legally enforceable. Revenue is recognised as and when services are performed to customers
in an amount that reflects the consideration the Group expects to receive (the "Transaction
Price"). Revenue towards satisfaction of the performance obligation is measured at the
amount of the Transaction Price (net of variable consideration on account of discounts and

allowances) allocated to that performance obligation. To recognize revenues, the Group
applies the following five step approach:

(1) identify the contract with a customer,

(2) identify the performance obligations in the contract,

(3) determine the Transaction Price,

(4) allocate the Transaction Price to the performance obligations in the contract, and

(5) recognize revenues when a performance obligation is satisfied. When there is
uncertainty as to collectability, revenue recognition is postponed until such uncertainty is
resolved.

At contract inception, the Group assesses its promise to render services to a customer to
identify separate performance obligations. The Group applies judgement to determine
whether each service promised to a customer is capable of being distinct, and are distinct in
the context of the contract, if not, the promised services are combined and accounted as a
single performance obligation. The Group allocates the Transaction Price to separately
identifiable performance obligations based on their relative stand-alone selling price or
residual method. Stand-alone selling prices are determined based on expected cost-plus
margin approach in estimating the stand-alone selling price.

For performance obligations where control is transferred over time, revenues are recognised
by measuring progress towards completion of the performance obligation. The selection of
the method to measure progress towards completion requires judgment and is based on the
nature of the promised services to be provided. The method for recognizing revenues and
costs depends on the nature of the services rendered:

A. Time and Materials Contracts

Revenues and costs relating to time and materials contracts are recognised as the related
services are rendered.

B. Fixed-price Contracts

i) Fixed-price Development Contracts

Revenues from fixed-price development contracts, where the performance obligations are
satisfied over time, are recognised using the "percentage-of-completion" method. The

performance obligations are satisfied as and when the services are rendered since the
customer generally obtains control of the work as it progresses. Percentage of completion is
determined based on project costs incurred to date as a percentage of total estimated project
costs required to complete the project. The cost expended (or input) method has been used
to measure progress towards completion as there is a direct relationship between input and
productivity. If the Group is not able to reasonably measure the progress of completion,
revenue is recognised only to the extent of costs incurred for which recoverability is
probable. When total cost estimates exceed revenues in an arrangement, the estimated
losses are recognised in the statement of profit and loss in the period in which such losses
become probable based on the current contract estimates as an onerous contract provision.

A contract asset is a right to consideration that is conditional upon factors other than the
passage of time. Contract assets primarily relate to unbilled amounts on fixed-price
development contracts and are classified as non-financial asset as the contractual right to
consideration is dependent on completion of contractual milestones.

A contract liability is an entity''s obligation to transfer goods or services to a customer for
which the entity has received consideration (or the amount is due) from the customer.

ii) Maintenance Contracts

Revenues related to fixed-price maintenance contracts are recognised on a straight-line
basis when services are performed through an indefinite number of repetitive acts over a
specified period or ratably using percentage of completion method when the pattern of
benefits from the services rendered to the customers and the cost to fulfil the contract is not
even through the period of contract because the services are generally discrete in nature and
not repetitive. Revenue for contracts in which the invoicing is representative of the value
being delivered is recognised based on our right to invoice. If our invoicing is not consistent
with value delivered, revenues are recognised as the service is performed using the
percentage of completion method. In certain projects, a fixed quantum of service or output
units is agreed at a fixed-price for a fixed term. In such contracts, revenue is recognised with
respect to the actual output achieved till date as a percentage of total contractual output.
Any residual service unutilized by the customer is recognised as revenue on completion of
the term.

C. Others

• Any change in scope or price is considered as a contract modification. The Group
accounts for modifications to existing contracts by assessing whether the services added
are distinct and whether the pricing is at the standalone selling price. Services added
that are not distinct are accounted for on a cumulative catch-up basis, while those that
are distinct are accounted for prospectively, either as a separate contract if the additional
services are priced at the stand-alone selling price, or as a termination of the existing
contract and creation of a new contract if not priced at the stand-alone selling price.

• The Group accounts for variable considerations like, volume discounts, rebates and
pricing incentives to customers and penalties as reduction of revenue on a systematic
and rational basis over the period of the contract. The Group estimates an amount of
such variable consideration using expected value method or the single most likely
amount in a range of possible consideration depending on which method better predicts
the amount of consideration to which the Group may be entitled and when it is probable
that a significant reversal of cumulative revenue recognised will not occur when the
uncertainty associated with the variable consideration is resolved.

• Estimates of the Transaction Price and total costs or efforts are continuously monitored
over the term of the contract and are recognised in net profit in the period when these
estimates change or when the estimates are revised. Revenues and the estimated total
costs or efforts are subject to revision as the contract progresses.

• Incremental costs that relate directly to a contract and incurred in securing a contract
with a customer are recognised as an asset when the Group expects to recover these
costs.

• The Group recognizes contract fulfilment cost as an asset if those costs specifically relate
to a contract or to an anticipated contract, the costs generate or enhance resources that
will be used in satisfying performance obligations in future; and the costs are expected
to be recovered.

• Costs to obtain contract relating to upfront payments to customers are amortized to
revenue and other costs to obtain contract and costs to fulfill contract are amortized to
cost of sales over the respective contract life on a systematic basis consistent with the
percentage of services rendered to customer to which the asset relates.

• The Group assesses the timing of the delivery of services to the customer as compared
to the timing of payments to determine whether a significant financing component
exists. As a practical expedient, the Group does not assess the existence of a significant
financing component when the difference between payment and transfer of deliverables
is twelve months or less. If the difference in timing arises for reasons other than the
provision of finance to either the customer or us, no financing component is deemed to
exist.

• Unbilled receivables are classified as a financial asset where the right to consideration
is unconditional and only the passage of time is required before the payment is due.

All of the Group''s revenue is associated with contracts with customers that represent
obligations to provide consulting services for enterprise resource planning ("ERP")
implementations. Contracts containing multiple performance obligations classify those
performance obligations into separate units of accounting either as standalone or
combined units of accounting. For those performance obligations treated as a
standalone unit of accounting, revenue is generally recognized based on the method
appropriate for each standalone unit. For those performance obligations treated as a
combined unit of accounting, revenue is generally recognized as the performance
obligations are satisfied, which generally occurs when contract achievements have been
transferred to the customer.

The Group''s contracts with customers generally state the terms of the sale, including the
rates and fees of each service purchased. Accounts receivable from the Group''s customers
are invoiced weekly and generally due approximately 30 days from the date its customers
receive the invoice. The Group''s contracts include stated rates charged per hour of service
provided based on approved time sheets from clients.

The Group does not include sales and other taxes in its transaction price and thus does not
recognize these amounts as revenue.

Remaining Performance Obligations (RPO)

The Group applies the practical expedient in Ind AS 115 and does not disclose RPO for
contracts with original expected duration of one year or less, or where the right to
consideration corresponds directly with the value of performance completed. All contracts
are Statement of Work (SOW) based with terms <12 months, hence the expedient is applied.

k) Income Tax (Ind-AS 12)

Income tax comprises current and deferred tax. Income tax expense is recognised in the
statement of profit and loss except to the extent it relates to a business combination, or items
directly recognised in equity or in other comprehensive income.

a) Current Income Tax

Current income tax assets and liabilities for the current and prior periods are measured at
the amount expected to be recovered from or paid to the taxation authorities based on the
taxable income for the period. Current income tax (including Minimum Alternate Tax
(MAT)) is measured at the amount expected to be paid to the tax authorities in accordance
with the Income-Tax Act, 1961 enacted in India. The tax rates and tax laws used to compute
the current tax amounts are those that are enacted or substantively enacted as at the
reporting date and applicable for the period. Current income tax payable by overseas
branches of the Group is computed in accordance with the tax laws applicable in the
jurisdiction in which the respective branch operates. The taxes paid are generally available
for set off against the Indian income tax liability of the Group''s worldwide income. While
determining the tax provisions, the Group assesses whether each uncertain tax position is
to be considered separately or together with one or more uncertain tax positions depending
upon the nature and circumstances of each uncertain tax position. The Group offsets current
tax assets and current tax liabilities, where it has a legally enforceable right to set off the
recognised amounts and where it intends either to settle on a net basis, or to realise the asset
and liability simultaneously.

b) Deferred Income Tax

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 in these consolidated
financial statements, except when the deferred income tax arises from the initial recognition
of goodwill or an asset or liability in a transaction that is not a business combination and
affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred income tax assets are recognised to the extent 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 utilized.

Deferred income tax liabilities are recognised for all taxable temporary differences except
in respect of taxable temporary differences that is expected to reverse within the tax holiday
period, taxable temporary differences associated with investments in subsidiaries,
associates and foreign branches where the timing of the reversal of the temporary difference
can be controlled and it is probable that the temporary difference will not reverse in the
foreseeable future.

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 utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply in the period when the asset is realized or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively enacted at the reporting date.

The Group offsets deferred income tax assets and liabilities, where it has a legally
enforceable right to offset current tax assets against current tax liabilities, and they relate to
taxes levied by the same taxation authority on either the same taxable entity, or on different
taxable entities where there is a right and an intention to settle the current tax liabilities and
assets on a net basis or their tax assets and liabilities will be realized simultaneously.

Basic earnings per share is computed using the weighted average number of equity shares
outstanding during the period adjusted for treasury shares held. Diluted EPS is computed
using the weighted average number of equity and dilutive equity equivalent shares
outstanding during the period, except where the results would be anti-dilutive.

There are no dilutive potential ordinary shares or anti-dilutive instruments outstanding as
at March 31, 2025 (previous year: Nil). EPS is presented for continuing operations only, as
there are no discontinued operations.

m) Segment Reporting (Ind-AS 108)

The Chief Operating Decision Maker (CODM), being the Board of Directors, reviews the
Group''s operations as two reportable segments: IT Services and IT Enabled Services (ITES).
This is based on the nature of services, risks, returns, and internal organization/reporting
structure. The CODM reviews segment revenue, results, assets, and liabilities for resource
allocation and performance assessment.

The assets of the Group are used interchangeably between segments, and hence segment
assets and liabilities are not separately disclosed as it is not practical; however, the CODM
reviews total assets and liabilities at a consolidated level.

The Revenue and direct cost (including the payroll cost of all the employees and consultants
which can be attributed to the revenue), excepting the un-allocable costs like personnel cost
for the supporting services, depreciation, operating expenditure, interest income on
deposits, provision for contingencies and income tax, are directly attributed to the
respective segments.

The Group reports its financial statements for the geographies of India and USA, and also
for the IT and ITES segments.

n) Related Party Transactions

During the current financial year, the Group has entered some transactions, which can be
deemed as related party transactions. All these matters have been approved by the Board
and the Govt. of India, wherever necessary. All transactions are at arm''s length, with terms
equivalent to those with unrelated parties (e.g., credit period: 30-60 days; no interest or
security except where noted).

Long-lived assets, such as property and equipment and other assets are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. The recoverability of assets to be held and used
is measured by a comparison of the carrying amount of an asset to estimated undiscounted
future cash flows expected to be generated by the asset. If the carrying amount of an asset
exceeds its estimated future cash flows, an impairment charge is recognized by the amount
by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be
disposed of are reported at the lower of the carrying amount or fair value less costs to sell,
and depreciation ceases. No impairment was recognized during the year.

Goodwill is tested annually for impairment at the CGU level (IT Services and ITES).

Goodwill Impairment Testing

Goodwill is tested for impairment annually or more frequently if indicators exist. The
impairment test involves comparing the carrying amount of cash-generating units (CGUs)
containing goodwill with their recoverable amounts, determined using a value-in-use
model based on discounted cash flow projections. No impairment loss was recognized in
the current year (previous year: Nil), as the recoverable amounts exceeded the carrying
amounts.

Sensitivity Analysis

The following table illustrates the impact of changes in key assumptions on the impairment
test. A 1% increase in the discount rate or a 1% decrease in the long-term growth rate would
not result in impairment, as headroom remains sufficient.

p) Disclosures under Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act)

The Company has identified Micro, Small and Medium Enterprises (MSME) vendors based
on confirmations received and information available with the Company. The details of
dues to such enterprises as required under Section 22 of the Micro, Small and Medium
Enterprises Development Act, 2006 are as follows:

The above disclosures are based on the consolidated financial statements and ageing
analysis of trade payables. There are no disputed dues or outstanding interest under the
MSMED Act as at the reporting dates. The Company has no dues to MSME vendors
beyond the statutory period, and no interest has been accrued or paid during the year.

q) Previous Year Figures

Previous year figures have been regrouped /reclassified wherever necessary to suit the
current year''s layout.

r) Basis of Preparation and Consolidation - Disclosure on Unaudited Subsidiary Financial
Statements

The consolidated financial statements of CES Limited (the "Parent Company" or
"Company") and its subsidiaries (collectively referred to as the "Group") have been
prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section

133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, and other relevant provisions of the Act.

These consolidated financial statements include the financial information of the following
subsidiaries:

• CES USA Inc. (USA)

• CES Information Technologies Private Limited (India)

• CES Global IT Solutions Private Limited (India)

• CES Technology Services Private Limited (India)

• Other step-down subsidiaries (e.g., CES Global LLC, CES Enterprise LLC, etc., via CES
USA Inc.)

The financial statements of all subsidiaries, except as disclosed below, have been audited
by their respective independent auditors. The consolidation has been carried out based on
the audited financial statements of these entities, adjusted where necessary to align with
the Group''s accounting policies.

Specific Disclosure on CES USA Inc.:

• The financial statements of CES USA Inc., a wholly-owned subsidiary incorporated in
the USA, as at and for the year ended March 31, 2025, included in these consolidated
financial statements, have not been audited or reviewed by independent auditors. These
statements are based on management accounts prepared in accordance with US
Generally Accepted Accounting Principles (US GAAP) and have been adjusted to
comply with Ind AS for consolidation purposes.

• CES USA Inc. contributed approximately 40.61% of the Group''s consolidated revenue
and 24.90% of the Group''s consolidated net assets as at March 31, 2025.

• The unaudited financial information of CES USA Inc. is subject to potential adjustments
upon completion of the audit/review by independent accountants. Any material
adjustments arising from such audit/review could impact the consolidated financial
statements of the Group. The management does not anticipate any significant changes
based on preliminary assessments, but the final audited figures may differ.

• This disclosure is made in accordance with Ind AS 110, Consolidated Financial Statements,
to ensure transparency regarding the basis of preparation. The Company will update
the consolidated financial statements, if required, upon receipt of the audited financial
statements of CES USA Inc.

The Board of Directors and management believe that the unaudited financial information
provides a reasonable basis for consolidation, and appropriate procedures have been
undertaken to verify the accuracy and completeness of the data provided by CES USA Inc.

SIGNATURE TO NOTES 1 to 24

As per our report of even date for and on behalf of the Board of Directors of

For NG Rao & Associates, CES LIMITED

Chartered Accountants
Firm Registration No. 009399S

Kiran Parsa Mohana Rao Kancharla Rama Krishna S

Partner Director Director

Membership No. 220629 DIN: 00004288 DIN: 01825682

Place: Hyderabad Srinivas Kucherlapati Suraj Kumar Garg

Date: 30^th May 2025 Chief Financial Officer Company Secretary

---

Mar 31, 2024

(i) Provisions

Provisions are recognised when the Company has a present obligation (legal or
constructive), as a result of a past event, an outflow of economic benefits will probably be
required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.

The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, considering the risks and
uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to
be recovered from a third party, the receivable is recognised as an asset, if it is virtually
certain that reimbursement will be received, and the amount of the receivable can be
measured reliably.

Provisions for onerous contracts are recognised when the expected benefits to be derived
by the Company from a contract are lower than the unavoidable costs of meeting the
future obligations under the contract. Provisions for onerous contracts are measured at
the present value or lower than the expected net cost of fulfilling the contract and the
expected cost of terminating the contract.

(j) Revenue

The Company earns revenue primarily from providing IT services, IT Enabled Services,
consulting, and business solutions. The Company offers a consulting-led, cognitive-
powered, integrated portfolio of IT and IT Enabled business solutions.

Revenues from customer contracts are considered for recognition and measurement when
the contract has been approved by the parties to the contract, the parties to the contract
are committed to performing their respective obligations under the contract, and the
contract is legally enforceable. Revenue is recognised as and when services are performed
to customers in an amount that reflects the consideration the Company expects to receive
(the "Transaction Price"). Revenue towards satisfaction of the performance obligation is
measured at the amount of the Transaction Price (net of variable consideration on account
of discounts and allowances) allocated to that performance obligation. To recognise
revenues, the Company applies the following five-step approach: (1) identify the contract
with a customer, (2) identify the performance obligations in the contract, (3) determine the
Transaction Price, (4) allocate the Transaction Price to the performance obligations in the
contract, and (5) recognise revenues when a performance obligation is satisfied. When

there is uncertainty as to collectability, revenue recognition is postponed until such
uncertainty is resolved.

At contract inception, the Company assesses its promise to render services to a customer
to identify separate performance obligations. The Company applies judgement to
determine whether each service promised to a customer is capable of being distinct, and
is distinct in the context of the contract, if not, the promised services are combined and
accounted as a single performance obligation. The Company allocates the Transaction
Price to separately identifiable performance obligations based on their relative stand-alone
selling price or residual method. Stand-alone selling prices are determined based on the
expected cost-plus margin approach in estimating the stand-alone selling price.

For performance obligations where control is transferred over time, revenues are
recognised by measuring progress toward completion of the performance obligation. The
selection of the method to measure progress toward completion requires judgment and is
based on the nature of the promised services to be provided. The method for recognising
revenues and costs depends on the nature of the services rendered:

A. Time and materials contracts

Revenues and costs relating to time and materials contracts are recognised as the related
services are rendered.

B. Fixed price contracts

i) Fixed-price development contracts

Revenues from fixed-price development contracts, where the performance obligations are
satisfied over time, are recognised using the "percentage-of-completion" method. The
performance obligations are satisfied as and when the services are rendered since the
customer generally obtains control of the work as it progresses. The percentage of
completion is determined based on project costs incurred to date as a percentage of the
total estimated project costs required to complete the project. The cost expended (or input)
method has been used to measure progress toward completion as there is a direct
relationship between input and productivity. If the Company is not able to reasonably
measure the progress of completion, revenue is recognised only to the extent of costs

incurred for which recoverability is probable. When total cost estimates exceed revenues
in an arrangement, the estimated losses are recognised in the statement of profit and loss
in the period in which such losses become probable based on the current contract estimates
as an onerous contract provision.

A contract asset is a right to consideration that is conditional upon factors other than the
passage of time. Contract assets primarily relate to unbilled amounts on fixed-price
development contracts and are classified as non-financial assets as the contractual right to
consideration is dependent on the completion of contractual milestones.

A contract liability is an entity''s obligation to transfer goods or services to a customer for
which the entity has received consideration (or the amount is due) from the customer.
ii) Maintenance contracts

Revenues related to fixed-price maintenance contracts are recognised on a straight-line
basis when services are performed through an indefinite number of repetitive acts over a
specified period or ratably using a percentage of completion method when the pattern of
benefits from the services rendered to the customers and the cost to fulfill the contract is
not even through the period of contract because the services are generally discrete in
nature and not repetitive.

Revenue for contracts in which the invoicing is representative of the value being delivered
is recognized based on our right to invoice. If our invoicing is not consistent with the value
delivered, revenues are recognised as the service is performed using the percentage of
completion method. In certain projects, a fixed quantum of service or output units is
agreed upon at a fixed price for a fixed term. In such contracts, revenue is recognized
concerning the actual output achieved to date as a percentage of total contractual output.
Any residual service unutilized by the customer is recognised as revenue on completion
of the term.

C. Others

• Any change in scope or price is considered a contract modification. The Company
accounts for modifications to existing contracts by assessing whether the services added
are distinct and whether the pricing is at the standalone selling price. Services added that

are not distinct are accounted for on a cumulative catch-up basis, while those that are
distinct are accounted for prospectively, either as a separate contract if the additional
services are priced at the stand-alone selling price, or as a termination of the existing
contract and creation of a new contract if not priced at the stand-alone selling price.

• The Company accounts for variable considerations like volume discounts, rebates, and
pricing incentives to customers and penalties as a reduction of revenue on a systematic
and rational basis over the period of the contract. The Company estimates an amount of
such variable consideration using the expected value method or the single most likely
amount in a range of possible considerations depending on which method better predicts
the amount of consideration to which the Company may be entitled and when it is
probable that a significant reversal of cumulative revenue recognised will not occur when
the uncertainty associated with the variable consideration is resolved.

• Revenues are shown net of allowances/ returns, goods and services tax, and applicable
discounts.

• Estimates of the Transaction Price and total costs or efforts are continuously monitored
over the term of the contract and are recognized in net profit in the period when these
estimates change or when the estimates are revised. Revenues and the estimated total costs
or efforts are subject to revision as the contract progresses.

• Incremental costs that relate directly to a contract and incurred in securing a contract
with a customer are recognised as an asset when the Company expects to recover these
costs.

• The Company recognizes contract fulfillment cost as an asset if those costs are
specifically related to a contract or an anticipated contract, the costs generate or enhance
resources that will be used in satisfying performance obligations in the future, and the
costs are expected to be recovered.

• Costs to obtain a contract relating to upfront payments to customers are amortized to
revenue and other costs to obtain a contract and costs to fulfill a contract are amortized to
cost of sales over the respective contract life on a systematic basis consistent with the
percentage of services rendered to the customer to which the asset relates.

• The Company assesses the timing of the delivery of services to the customer as
compared to the timing of payments to determine whether a significant financing
component exists. As a practical expedient, the Company does not assess the existence of
a significant financing component when the difference between payment and transfer of
deliverables is twelve months or less. If the difference in timing arises for reasons other
than the provision of finance to either the customer or us, no financing component is
deemed to exist.

• Unbilled receivables are classified as financial assets where the right to consideration is
unconditional and only the passage of time is required before the payment is due.

(k) Income tax

Income tax comprises current and deferred tax. Income tax expense is recognised in the
statement of profit and loss except to the extent it relates to a business combination, or
items directly recognised in equity or other comprehensive income.
a) Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at
the amount expected to be recovered from or paid to the taxation authorities based on the
taxable income for the period. Current income tax(including Minimum Alternate Tax
(MAT)) is measured at the amount expected to be paid to the tax authorities by the
Income-Tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the
current tax amounts are those that are enacted or substantively enacted as of the reporting
date and applicable for the period. Current income tax payable by overseas branches of
the Company is computed by the tax laws applicable in the jurisdiction in which the
respective branch operates. The taxes paid are generally available for set off against the
Indian income tax liability of the Company''s worldwide income. While determining the
tax provisions, the Company assesses whether each uncertain tax position is to be
considered separately or together with one or more uncertain tax positions depending
upon the nature and circumstances of each uncertain tax position. The Company offsets
current tax assets and current tax liabilities, where it has a legally enforceable right to set

off the recognised amounts and where it intends either to settle on a net basis or to realize
the assets and liability simultaneously.
b) Deferred income tax

Deferred income tax is recognized using the balance sheet approach. Deferred income tax
assets and liabilities are recognized for deductible and taxable temporary differences
arising between the tax base of assets and liabilities and their carrying amount in these
standalone financial statements, except when the deferred income tax arises from the
initial recognition of goodwill or an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profits or loss at the time of the
transaction.

Deferred income tax assets are recognized to the extent 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 utilized.

Deferred income tax liabilities are recognized for all taxable temporary differences except
in respect of taxable temporary differences that are expected to reverse within the tax
holiday period, taxable temporary differences associated with investments in subsidiaries,
associates, and foreign branches where the timing of the reversal of the temporary
difference can be controlled and, probably, the temporary difference will not reverse in
the foreseeable future.

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 utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected
to apply in the period when the asset is realized or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively enacted at the reporting date.

The Company offsets deferred income tax assets and liabilities, where it has a legally
enforceable right to offset current tax assets against current tax liabilities, and they relate
to taxes levied by the same taxation authority on either the same taxable entity or on
different taxable entities where there is a right and an intention to settle the current tax

liabilities and assets on a net basis or their tax assets and liabilities will be realized
simultaneously.

(l) Earnings per share

Basic earnings per share are computed using the weighted average number of equity
shares outstanding during the period adjusted for treasury shares held.

(m) Segment Accounting Policies

(a) Segment Assets and Liabilities:

The assets of the Company are used interchangeably between segments, and hence the
assets and liabilities of the Company are currently treated as inseparable.

(b) Segment Revenue and Expense:

The Revenue and direct cost (including the payroll cost of all the employees and
consultants which can be attributed to the revenue), excepting the un-allocable costs like
personnel cost for the supporting services, depreciation, operating expenditure, interest
income on deposits, provision for contingencies and income tax, are directly attributed to
the respective segments.

The company reports its financial statements for the geographies of India and the USA,
and also for the IT and ITES segments.

27. The Companies operations relate to providing IT Services in two primary business
segments viz. IT Services and IT Enabled Services (ITES). The Company considers

the business segment as the Primary Segment and Geographical Segment based on
the location of the customers as the Secondary Segment.

The accounting principles consistently used in the preparation of the financial
statements are also consistently applied to record income and expenditure in
individual segments. Income and direct expenses for segments are categorized
based on items that are individually identifiable to that segment, while the
remainder of costs are apportioned on an appropriate basis. Certain expenses are
not specifically allocable to individual segments as underlying services are used
interchangeably. The Company therefore believes that it is not practical to provide
segment disclosures relating to such expenses and accordingly, such expenses are
separately disclosed as unallocable and directly charged against total income.

The assets of the Company are used interchangeably between segments, and the
management believes that it is currently not practical to provide segment
disclosures relating to total assets and liabilities since meaningful segregation is not
possible.

29. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the
applicability threshold needs to spend at least 2% of its average net profit for the
immediately preceding three financial years on corporate social responsibility
(CSR) activities. The areas for CSR activities are eradication of hunger and
malnutrition, promoting education, art and culture, health care, destitute care and
rehabilitation, environment sustainability, disaster relief, COVID-19 relief, and
rural development projects. A CSR committee has been formed by the company as
per the Act. The funds were primarily allocated to a corpus and utilized throughout

30. There are no Micro and Small Enterprises, to whom the Company owes dues,
which are outstanding for more than 45 days as at 31st March 2024 (previous year
Nil). This information as required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the extent the
status of such parties identified on the basis of information available with the

Company There has been no impact on the operations and financial position of the
company on account of the outbreak of the COVID-19 pandemic and consequential
lock-down restrictions imposed by the Government.

31. During the financial year 2023-24 there are no transactions with struck-off
companies under section 248 or 560 of the Companies Act, 2013.

32. The Company has complied with the no. of layers prescribed under clause (87) of
Section 02 of the act read with the Companies (Restriction on the number of layers)
Rules, 2017.

33. There is no Scheme of Arrangements that has been approved in terms of sections
230 to 237 of the Companies Act, 2013.

34. There are no transactions that are not recorded in the books of account to be
surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, of 1961.

35. The Company has not traded or invested in Cryptocurrency or Virtual Currency
during the financial year.

36. No charges or satisfaction are yet to be registered with the Registrar of Companies
beyond the statutory period.

37. The company has not advanced/loans/invested or received funds (either
borrowed funds or share premium or any other sources or kind of funds to any
other persons or entities, including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary
shall directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

38. In the opinion of the management, the current assets, loans, and advances shall
realize the value as shown in the balance sheet, if realized in the normal course of
business.

39. Balances of accounts receivable, payables & loans, and advances are subject to
confirmation/reconciliation.

* The company does not have any borrowings and lease liabilities
^A Current year Profit from subsidiaries is decreased for the year, hence ROI was
decreased

41. Previous year figures have been regrouped / reclassified wherever necessary to suit
the current year''s layout.

SIGNATURES TO NOTES 1 To 42

As per our report of even date For and on behalf of the Board of

Directors of

For NG Rao & Associates, CES LIMITED

Chartered Accountants

Firm Registration No. 009399S

Kiran Parsa Mohana Rao Kancharla Rama Krishna S

Partner Director Director

Membership No. 220629 DIN: 00004288 DIN:01825682

Place: Hyderabad Srinivas Kucherlapati Suraj Kumar Garg

Date: 30^th May 2024 Chief Financial Officer Company Secretary

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Jun 30, 2014

1. Related Party Transactions:

During the period July 2013 to June 2014, the Company has entered into some transactions, which can be deemed as related party transactions. All these matters have been approved by the Board and the Govt. of India, wherever necessary.

2. Since the current year is the first year of consolidation, the company has not presented the comparative consolidated figures for the previous year ended 30th June, 2013, which has been provided in AS-21.

3. The post acquisition loss of Rs. 27,24,919 attributable to minority share holders of CES Information Technologies Private Limited has been adjusted against the post acquisition reserves of the Company. When the said subsidiary reports profits in the subsequent years, all such profits are allocated to the Company until the Minority share of losses currently absorbed has been recovered.

4. There are no dues to SSI units outstanding for more than 30 days.

5. The balances receivable from debtors and payable to creditors at the year-end are subject to confirmation from the respective debtors and creditors.

6. The Company has circulated letters to its suppliers seeking information about their status as mentioned in the Micro Small and Medium Enterprise Development Act, 2006. Since the information from the suppliers has not been received, the provisioning of the interest and disclosure requirement under Schedule VI to the Companies Act, 1956 could not be complied with.

7. The Company has established an overseas branch in USA during the last quarter of current financial year to provide IT Services & IT Enabled Services (ITES) to its esteemed customers. While preparing the financial statements of the company for the year, all the transactions of the overseas branch are also included in the financial statements of the company.

8. The Companies operations predominantly relate to providing IT Services in two primary business segments viz. IT Services and IT Enabled Services (ITES). The Company considers the business segment as the Primary Segment and Geographical Segment based on the location of the customers as the Secondary Segment.

The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual segments as underlying services are used interchangeably. The Company therefore believes that it is not practical to provide segment disclosures relating to such expenses and accordingly such expenses are separately disclosed as unallocable and directly charged against total income.

The assets of the Company are used interchangeably between segments, and the management believes that it is currently not practical to provide segment disclosures relating to total assets and liabilities since a meaningful segregation is not possible.

9. The figures have been rounded off to the nearest rupee.

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Jun 30, 2013

1. There are no dues to SSI units outstanding for more than 30 days.

2. The balances receivable from debtors and payable to creditors at the year-end are subject to confirmation from the respective debtors and creditors.

3. Related Party Transactions:

During the period July 2012 to June 2013, the Company has entered into some transactions, which can be deemed as related party transactions. All these matters have been approved by the Board and the Govt. of India, wherever necessary.

4. The Company is engaged in Software Development, IT Services and IT Enabled Services. The production and sale of such software and services cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and the information as required under Paragraphs 3 and 4C of Part II of Schedule VI to the Companies Act, 1956.

M/s. CES Private Limited (Formerly known as Computech Enterprise Solutions Private Limited) was incorporated in the year 2001. The company is a leading IT Services and Software Development firm providing the highest quality IT Services and solutions at low cost to broad array of public and private sector clients around the world. CES including its investments by way of shares in other bodies corporate other than the customized software development business were proposed to be transferred to and vested in CES LIMITED (Formerly Known as Serve All Enterprise Solutions Limited) on a going concern basis with effect from 1st June, 2010.

CES LIMITED (Formerly Known as Serve All Enterprise Solutions Limited) has received the principle approval from the Bombay Stock Exchange on 20th May, 2011.

In terms of the Scheme of Arrangement (The Scheme) between M/s. CES Private Limited and CES LIMITED (Formerly Known as Serve All Enterprise Solutions Limited) and their respective Shareholders, the company submitted Company Petition No.215 of 2011 connected with Application No.1524 of 2011as per the Companies Act, 1956 (1 of 1956) Under Sections 391 and 394 before the Honorable High Court at Andhra Pradesh.

The Scheme was approved by the Shareholders of the Company (CES LIMITED (Formerly Known as Serve All Enterprise Solutions Limited)) in the Extra Ordinary General Meeting held on 5th November, 2011 which was convened by the Honorable High Court of Andhra Pradesh.

This scheme is presented under Section 391 to 394 and other applicable provisions of the Companies Act, 1956 for the transfer and merger of Business division of CES Private Limited with CES LIMITED (Formerly Known as Serve All Enterprise Solutions Limited). For the transfer and vesting of Business division of CES Private Limited, CES LIMITED (Formerly Known as Serve All Enterprise Solutions Limited) allot One equity Share of Face value of Rs.10/- each fully paid up and 29 Share Warrants to be converted into Equity Shares of Rs.10/- each fully paid up in proportion to 60, 00,000 equity shares of Rs.10/- each held by every member of CES Private Limited.

This scheme between CES Private Limited and CES LIMITED (Formerly Known as Serve All Enterprise Solutions Limited) with effect from 1st June 2010 has been approved by the Hon''ble court of Andhra Pradesh vide its order dated 21st January 2013.

5. In terms of the Scheme of Amalgamation (The Scheme) between M/s. Decatrend Technologies Private Limited (the Transferor) and CES LIMITED (Formerly Known as Serve All Enterprise Solutions Limited) (the Transferee), the transferor company has submitted Company Petition No.182 of 2013 connected with Application No.815 of 2013 as per the Companies Act, 1956 (1 of 1956) Under Sections 391 and 394 before the Honorable High Court at Andhra Pradesh.

This scheme is presented under Section 391 to 394 and other applicable provisions of the Companies Act, 1956 for amalgamation of Transferor Company with the transferee and as the entire Share Capital of the Transferor Company is held by the Transferee Company and its nominees, no shares are of the transferee company shall be allotted in lieu or exchange of its holding in the transferor company and the investment made in the transferor company by way of the share capital by the transferee company shall stand cancelled and accordingly shall stand extinguished without any further application, act or deed or thing to be done by any person.

This scheme of amalgamation between M/s. Decatrend Technologies Private Limited which is 100% wholly owned subsidiary to CES LIMITED (Formerly Known as Serve All Enterprise Solutions Limited) has been approved by the Hon''ble High Court of Andhra Pradesh vide its order dated 8th October 2013 with effect from 1st of April 2012.

6. The Company has circulated letters to its suppliers seeking information about their status as mentioned in the Micro Small and Medium Enterprise Development Act, 2006. Since the information from the suppliers has not been received, the provisioning of the interest and disclosure requirement under Schedule VI to the Companies Act, 1956 could not be complied with.

7. The Companies operations predominantly relate to providing IT Services in two primary business segments viz. IT Services and IT Enabled Services. The Company considers the business segment as the Primary Segment and Geographical Segment based on the location of the customers as the Secondary Segment.

The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual segments as underlying services are used interchangeably. The Company therefore believes that it is not practical to provide segment disclosures relating to such expenses and accordingly such expenses are separately disclosed as un allocable and directly charged against total income.

The assets of the Company are used interchangeably between segments, and the management believes that it is currently not practical to provide segment disclosures relating to total assets and liabilities since a meaningful segregation is not possible.

8. Previous year''s figures have been regrouped wherever necessary.

9. The figures have been rounded off to the nearest rupee.

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Jun 30, 2012

1. Company overview

Serve All Enterprise Solutions Limited (The "Company") is an Information Technology (IT) and Information Technology Enabled Services (ITES) provider, dedicated to serving the midsize market of global enterprises.

- M/s. CES Private Limited (Formerly known as Computech Enterprise Solutions Private Limited) was incorporated in the year 2001. The company is a leading IT Services and Software Development firm providing the highest quality IT Services and solutions at low cost to broad array of public and private sector clients around the world. CES including its investments by way of shares in other bodies corporate other than the customized software development business were proposed to be transferred to and vested in SERVE ALL ENTERPRISE SOLUTIONS LIMITED on a going concern basis with effect from 1st June, 2010.

- SERVE ALL ENTERPRISE SOLUTIONS LIMITED has received the principle approval from the Bombay Stock Exchange on 20 th May, 2011.

In terms of the Scheme of Arrangement (The Scheme) between M/s. CES Private Limited and M/s. Serve All Enterprise Solutions Limited and their respective Shareholders, the company submitted Company Petition No.215 of 2011 connected with Application No.1524 of 2011as per the Companies Act, 1956 (1 of 1956) Under Sections 391 and 394 before the Honorable High Court at Andhra Pradesh.

The Scheme was approved by the Share holders of the Company (Serve All Enterprise Solutions Limited) in the Extra Ordinary General Meeting held on 5th November, 2011 which was convened by the Honorable High Court of Andhra Pradesh.

This scheme is presented under Section 391 to 394 and other applicable provisions of the Companies Act, 1956 for the transfer and merger of Business division of CES Private Limited with Serve All Enterprise Solutions Limited. For the transfer and vesting of Business division of CES Private Limited, Serve All Enterprise Solutions Limited allot One equity Share of Face value of Rs.10/- each fully paid up and 29 Share Warrants to be converted into Equity Shares of Rs.10/- each fully paid up in proportion to 60, 00,000 equity shares of Rs.10/- each held by every member of CES Private Limited.

This scheme between CES Private Limited and Serveall Enterprise Solutions Limited with effect from 1st June 2010 has been approved by the Hon''ble court of Andhra Pradesh vide its order dated 21st January 2013 and accordingly the effect of the scheme has been considered in the books of accounts.

The balances receivable from debtors and payable to creditors at the year end are subject to confirmation from the respective debtors and creditors.

- The Company is engaged in Software Development, IT Services and IT Enabled Services. The production and sale of such software and services cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and the information as required under Paragraphs 3 and 4C of Part II of Schedule VI to the Companies Act, 1956.

- Related Party Transactions

During the financial year 2012 -13 the Company has entered into some transactions, which can be deemed as related party transactions. All these matters have been approved by the Board and the Govt. of India, wherever necessary.

- The Company has circulated letters to its suppliers seeking information about their status as mentioned in the Micro Small and Medium Enterprise Development Act, 2006. Since the information from the suppliers has not been received, the provisionising of the interest and disclosure requirement under Schedule VI to the Companies Act, 1956 could not be complied with.

- The Companies operations predominantly relate to providing IT Services in two primary business segments viz. IT Services and IT Enabled Services. The Company considers the business segment as the Primary Segment and Geographical Segment based on the location of the customers as the Secondary Segment.

The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual segments as underlying services are used interchangeably. The Company therefore believes that it is not practical to provide segment disclosures relating to such expenses and accordingly such expenses are separately disclosed as un allocable and directly charged against total income.

The assets of the Company are used interchangeably between segments, and the management believes that it is currently not practical to provide segment disclosures relating to total assets and liabilities since a meaningful segregation is not possible.

- Previous year''s figures have been regrouped wherever necessary. The previous year figures are after considering the effect of the scheme of arrangement.

- The figures have been rounded off to the nearest rupee.

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Jun 30, 2011

1. Particulars of employees in accordance with Sub-section (2A) of Section 217 of the Companies Act, 1956 read with Companies (Particulars of Employees) Rule 1975. NIL

2. M/s. CES Private Limited (Formerly known as Computes Enterprise Solutions Private Limited) was incorporated in the year 2001. The Company is a leading IT services and software development firm providing the highest quality IT services and solutions at low cost to broad array of public and private sector clients around the world. CES including its investments by way of shares in other bodies corporate other than the customised software development business were proposed to be transferred to and vested in SERVE ALL ENTERPRISE SOLUTIONS LIMITED on a going concern basis with effect from 1st July, 2010

SERVE ALL ENTERPRISE SOLUTIONS LIMITED has received the in principle approval for the scheme of arrangement, from Bombay Stock Exchange on 20th May 2011.

In terms of the Scheme of Arrangement between M/s. CES Private Limited and M/s. Serve All Enterprise Solutions Limited and their Respective Share Holders, the Company submitted COMPANY PETITION NO. 215 OF 2011 CONNECTED WITH COMPANY APPLICATION NO. 1524 OF 2011 as per the Companies Act, 1956 (1 of 1956) Under Sections 391 and 394 before the Hon'ble High Court at Andhra Pradesh.

The Scheme was approved by the shareholders of the Company (Serve All Enterprise Solutions Limited) in the Extra Ordinary General Meeting held on 5th November, 2011 which was convened by Hon'ble High Court of Andhra Pradesh.

In this connection the Company applied for extension of Annual General Meeting which was approved by Registrar of Companies, Andhra Pradesh till 31st March 2012 vide their letter date 7th December 2011. Due to pending approval of the Hon'ble High Court of Andhra Pradesh, the Board of Directors decided to proceed as per the records.

Pending approval of the Hon'ble High Court of Andhra Pradesh, the effect of transfer of certain investments, loans, advances and assets has not been given effect in the books of account of Serve All Enterprises Solutions Limited.

3. The Company is engaged in the Software Development, IT Services and IT Enabled Services. The production and sale of such software and services cannot be expressed in any generic unit. .Hence, it is not possible to give the quantitative details of sales and the information as required under Paragraphs 3 and 4C of Part II of Schedule VI to the Companies Act, 1956.

4. The balances receivable from debtors and payable to creditors at the year end are subject to confirmation from the respective debtors and creditors.

5. Related Party Transactions

During the financial year 2010 -11 the Company has entered into some transactions, which can be deemed as related party transactions. All these matters have been approved by the Board and the Govt, of India, wherever necessary.

6. Realised gains & loss in foreign exchange transactions are recognised in Profit & Loss Account. During the year realized Gain on foreign exchange fluctuation is Rs.760,365/-

7. The Company has circulated letters to its suppliers seeking information about their status as mentioned in the Micro Small and Medium Enterprise Development Act, 2006. Since the information from the suppliers has not been received, the provision sing of the interest and disclosure requirement under Schedule VI to the Companies Act, 1956 could not be complied with.

8. The Company has debited the gratuity amount of Rs. 1,802,240/- (Previous Year 2,545,519/- )to the Profit and Loss Account as per AS - 15 on actuarial basis.

9. The Companies operations predominantly relate to providing IT Services in two primary business segments viz. IT Services and IT Enabled Services. The Company considers the business segment as the Primary Segment and Geographical Segment based on the location of the customers as the Secondary Segment.

The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual segments as underlying services are used interchangeably. The Company therefore believes that it is not practical to provide segment disclosures relating to such expenses and accordingly such expenses are separately disclosed as unallocable and directly charged against total income.

The assets of the Company are used interchangeably between segments, and the management believes that it is currently not practical to provide segment disclosures relating to total assets and liabilities since a meaningful segregation is not possible.

BUSINESS SEGMENTS:

Profit and Loss Statements for the year ended 30th June,11 IT Services IT Enabled Services Total

total paired income tax during the year. The deferred income tax provision for the current year amounts to Rs. 694,101/- towards deferred income tax liability. (Previous year Rs 293,085/-)

10. Previous years figures have been regrouped wherever necessary.

11. The figures have been rounded off to the nearest rupee.

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Jun 30, 2009

1 Particulars of Employees in accordance with Sub-section (2A) of Section 217 of the Companies Act, 1956 read with Companies (Particulars of Employees) Rule 1975. ML

2. The Company is engaged in the development of Computer Software, IT Services and IT enabled services. The production and sale of such software and services cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and the information as required under Paragraphs 3 and 4C of Part II of Schedule VI to the Companies Act, 1956.

3. There are no dues to SSI units outstanding for more than 30days.

4. No confirmations were obtained from debtors/ creditors as to the balance receivable from/ payable to them as at year end.

5. Related Party Transactions

During the financial year 2008 -09, the Company has entered into some transactions, which can be deemed as related party transactions.

S. No. Name of the Related Party Nature of Relation

1 CESUSA Inc. Common Directors

2 Computech Corporation Common Directors

3 CES Private Limited Common Directors

6. "Realized gains & loss in foreign exchange transactions are recognized in Profit & Loss Account. During the year realized loss on foreign exchange fluctuation is Rs.25,67,607/-

7. The Company has circulated letters to its suppliers seeking information about their status as mentioned in the Micro Small and Medium Enterprise development Act 2006. Since the information from the suppliers has not been received, the provisioning of the interest and disclosure requirements under Schedule VI to the Companies Act, 1956 could not be complied with.

8. The Company has debited the gratuity amount of Rs.6, 55,311/- to Profit and Loss Account as per AS-15 on actuarial basis.

9. The Companys operations predominantly relate to providing IT services in two primary business segments viz. IT Services and IT Enabled Services. The Company considers the business segment as the primary segment and geographical segment based on the location of customers as the secondary segment.

The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual segments as the underlying services are used interchangeably. The Company therefore believes that it is not practical to provide segment disclosures relating to such expenses and accordingly such expenses are separately disclosed as unallocable and directly charged against total income.

The assets of the Company are used interchangeably between segments, and_ the management believes that it is currently not practical to provide segment disclosures relating to total assets and liabilities since a meaningful segregation is not possible.

10. In accordance with Accounting Standard 22 (AS 22) issued by the ICAI, the Company has accounted for deferred income tax during the year. The deferred income tax provision for the current year amounts to Rs. 1, 88,366/- towards deferred income tax liability. (Previous year Rs : 18, 343/- towards deferred income tax Asset.)

11. Previous years figures have been regrouped wherever necessary.

12. The figures have been rounded off to the nearest rupee.