Mudunuru Ltd. कंपली की लेखा नीति

Mar 31, 2025

2. Significant accounting policies;

A summary of the significant accounting policies applied in the preparation of the financial
statements is as given below. These accounting policies have been applied consistently to all
the periods presented in the financial statements.

2.1 Ind AS 105: Non-Current Assets held for Sale or Discontinued Operations:

This standard specifies accounting for assets held for sale, and the presentation and disclosure
for discontinued operations:

(a) Assets that meet the criteria to be classified as held for sale to be measured at the lower of
carrying amount and fair value less cost to sell, and depreciation on such assets to cease; and

(b) Assets that meet the criteria to be classified as held for sale to be presented separately in the
balance sheet and the results of discontinued operations to be presented separately in the
statement of profit and loss.

2.2 Ind AS 106: Exploration for Evolution of Mineral resources:

This standard specifies the financial reporting for the exploration for evaluation of mineral resources.
In particular, this standard requires:

a. Limited improvements to existing accounting practices for exploration and evaluation of
expenditures

b. Entities that recognize exploration and evaluation of assets to assess such assets for
impairment in accordance with this standard and measure any impairment.

Disclosures that identify and explain the amounts in the entity''s financial statements arising from the
exploration for the evaluation of mineral resources and help users of those financial statements
understand the amount, timing and certainty of future cash flows from any exploration and
evaluation of assets recognized.

This Ind AS 106 not applicable, the company is in the business of Infrastructure. Hence this Ind AS
does not have any financial impact on the financial statements of the company.

2.3 Ind AS-16: Property, Plant and Equipment:

Property, Plant and Equipment are stated at cost less accumulated depreciation.

Cost of an item of property, plant and equipment comprises its purchase price, including import
duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly
attributable cost of bringing the item to its working condition for its intended use and estimated costs
of dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials
and direct labor, any other costs directly attributable to bringing the item to working condition for
its intended use, and estimated costs of dismantling and removing the item and restoring the site on
which it is located.

Property, plant and equipment which are significant to the total cost of that item of Property Plant
and Equipment and having different useful life are accounted for as separately.

Gains or losses arising from derecognition of property, plant and equipment are measured as the
difference between the net disposal proceeds and carrying amount of the asset is recognized in the
statement of profit or loss when the asset is derecognized.

Depreciation on Property Plant and Equipment is provided on Straight line method. Depreciation is
provided based on useful life as prescribed under part C of the schedule II of the Companies act,
2013.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which
asset is ready for use (disposed of).

Impairment

Property Plant and Equipment are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset''s fair value less cost of disposal and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash inflows which are largely independent of the cash inflows from other
assets or groups of assets (cash-generating units).

2.4 Impairment Assets (Ind AS 36)

The Company''s non-financial assets, other than deferred tax assets are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists, then
the asset''s recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together
into cash-generating units (CGUs). Each CGU represents the smallest group of assets that generates
cash inflows that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair
value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the CGU (or the asset).

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its estimated
recoverable amount. Impairment losses are recognized in the statement of profit and loss.
Impairment loss recognized in respect of a CGU is allocated first to reduce the carrying amount of

any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets of
the CGU (or group of CGUs) on a pro rata basis.

The books of accounts of the company doesn''t carry any impairment of assets during the reporting
period, hence this accounting standard does not have financial impact on the financial statements of
the company.

2.5 Intangible assets (Ind AS 38):

Intangible assets are amortized over the estimated useful lives and assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortization period
and the amortization method are reviewed at least at each financial year end. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied
in the asset is accounted for by changing the amortization period or method, as appropriate, and are
treated as change in accounting estimates. The amortization expense on intangible assets with finite
useful lives is recognized in profit or loss.

The books of accounts of the company carry Intangible assets worth Rs. 2,56,08,976 during the
reporting period, In the FY 2023-24, these Assets were classified under Computer & Software which
is related to In-house Developed Software as on 31.03.2024. However, this amount has been re¬
classified under Intangible Assets for the FY 2024-25.

2.6 Cash Flow Statement (Ind AS 7):

Cash flows are reported using the indirect method under Ind AS 7, whereby profit/(loss) before
extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based on the available information.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term
balances (with an original maturity of three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.

2.7 Operating Cycle:

The Company has adopted its normal operating cycle as twelve months based on the nature of
products and the time between the acquisition of assets for processing and their realization, for the
purpose of current / non-current classification of assets and liabilities.

2.8 Capital Work in Progress

The Books of Accounts of Company doesn''t carry Capital work-in-progress during the reporting
period.

2.9 Investments:

Investments are classified as Non-Current and Current investments.

Investments, which are readily realisable and are intended to be held for not more than one year
from the date on which such investments are made, are classified as current investments. All other
investments are classified as non-current investments.

Current investments are carried at lower of cost and fair value. Non-Current Investments are carried
at cost less provision for other than temporary diminution, if any, in value of such investments.

The Books of Accounts of Company doesn''t carry any Investments during the reporting period.

2.10 Effects of changes in foreign Rates (Ind AS 21):

Foreign currency transactions are recorded at the exchange rates prevailing on the dates when the
relevant transactions took place. Exchange difference arising on settled foreign currency transactions
during the year and translation of assets and liabilities at the yearend are recognized in the statement
of profit and loss.

In respect of Forward contracts entered into to hedge risks associated with foreign currency
fluctuation on its assets and liabilities, the premium or discount at the inception of the contract is
amortized as income or expense over the period of contract. Any profit or loss arising on the
cancellation or renewal of forward contracts is recognized as income or expense in the period in
which such cancellation or renewal is made.

The company has not entered any foreign exchange transactions during the reporting period; hence
this accounting standard does not have financial impact on the financial statements.

2.11 Borrowing Costs (Ind AS 23):

Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for the intended use or sale.

Investment income earned on temporary investment of specific borrowings pending their
expenditure on qualifying assets is recognized in statement of profit and loss.

Discounts or premiums and expenses on the issue of debt securities are amortized over the term of
related securities are included within borrowing costs. Premiums payable on early redemptions of
debt securities, in lieu of future costs, are recognized as borrowing costs.

All other borrowing costs are recognized as expenses in the period in which it is incurred.

2.12 Revenue Recognition (Ind AS 18-Revenues):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:

a) Sales Revenue is recognized on dispatch to customers as per the terms of the order. Gross sales are
net of returns and applicable trade discounts and excluding GST billed to the customers.

b) Subsidy from Government is recognized when such subsidy has been earned by the company and it
is reasonably certain that the ultimate collection will be made.

c) 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.

d) All other incomes are recognized based on the communications held with the parties and based on
the certainty of the incomes.

2.13 Accounting for Government Grants and Disclosure of Government Assistance (Ind AS 20):
Government grants:

Government grants are not recognized until there is reasonable assurance that the Company
will comply with the conditions attached to them and that the grants will be received.
Government grants are recognized in the Statement of Profit and Loss on a systematic basis
over the years in which the Company recognizes as expenses the related costs for which the
grants are intended to compensate or when performance obligations are me.

Government grants, whose primary condition is that the Company should purchase,
construct or otherwise acquire non-current assets and nonmonetary grants are recognized and
disclosed as ''deferred income'' under non-current liability in the Balance Sheet and
transferred to the Statement of Profit and Loss on a systematic and rational basis over the
useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and effect of this
favorable interest is treated as a government grant. The loan or assistance is initially
recognized at fair value and the government grant is measured as the difference between
proceeds received and the fair value of the loan based on prevailing market interest rates and
recognized to the income statement immediately on fulfillment of the performance

obligations. The loan is subsequently measured as per the accounting policy applicable to
financial liabilities.

The company has not received any Government Grants during the reporting period, hence this
accounting standard does not have financial impact on the financial statements.

• Cost of Material excludes duties and taxes which are subsequently recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the time of dispatch from
Factories.

• Based on the information provided the difference between physical verification and
valuation of the of inventories are charged to the profit and loss account.

2.15 Trade Receivables - Doubtful debts:

Provision has not made in the Accounts for Debts/Advances which is in the opinion of Management,
no provision has been recognized in the Profit and Loss Account for the year ended 31.03.2025

2.16 Retirement and other Employee Benefits:

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has
no obligation, other than contribution payable to the provident fund. The Company recognizes
contribution payable to the provident fund scheme as expenditure, when an employee renders
related service.

The Company has not conducted an actuarial valuation of the gratuity liability at the end of the
reporting period, as required under Ind AS 19. The standard mandates that the defined benefit
obligation be measured using the projected unit credit method, based on actuarial assumptions, at
each reporting date.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short
term employee benefit. The Company measures the expected cost of such absences as the additional
amount that it expects to pay as a result of the unused entitlement that has accumulated at the
reporting date.

It has been noted that the Company follows a compensation policy under which all employee
benefits, including leave, are structured within the total Cost to Company (CTC). The Company does
not permit leave encashment either during the period of service or upon separation, and unavailed

leave lapses as per the Company’s leave policy. Accordingly, no separate provision for leave
encashment has been made in the financial statements.

2.17 Ind AS 116- Leases

The Company assesses whether a contract is or contains a lease at the inception of the contract. A
contract is classified as a lease if it conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.

a) As a Lessee

The Company applies the single lease accounting model for all leases, except for:

Short-term leases (lease term of 12 months or less), and
Leases of low-value assets (such as small office equipment)

For these exempted leases, the Company recognises lease payments as an expense on a straight-line
basis over the lease term.

For all other leases, the Company recognises a right-of-use (ROU) asset and a corresponding lease
liability at the lease commencement date.

The ROU asset is initially measured at cost and subsequently depreciated on a straight-line basis over
the shorter of the lease term or useful life of the asset. It is also adjusted for impairment losses, if
any.

The lease liability is initially measured at the present value of future lease payments, discounted using
the Company''s incremental borrowing rate. Subsequently, it is measured at amortized cost using the
effective interest method.

Lease liabilities are re-measured when there is a change in future lease payments arising from a
change in an index or rate or a reassessment of the lease term. The corresponding adjustment is
made to the carrying amount of the ROU asset.

b) Lease Term

The lease term includes the non-cancellable period of the lease and any periods covered by an option
to extend or terminate the lease, if the Company is reasonably certain to exercise or not exercise
those options.

c) Disclosure

The Company has applied the exemption available under Ind AS 116 for leases of low-value assets
and leases with lease terms of 12 months or less.

These provisions are not applicable to the company therefore, such lease payments are not
recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease
term.

2.18 Insurance Claims:

Insurance Claims are accounted for on the basis of claims admitted/expected to be admitted and to
the extent that the amount recoverable can be measured reliably and it is reasonable to expect
ultimate collection.

2.19 Earnings per Share (Ind AS 33):

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
Partly paid equity shares are treated as a fraction of an equity share to the extent that they are
entitled to participate in dividends relative to a fully paid equity share during the reporting period.
The weighted average number of equity shares outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation
of shares) that have changed the number of equity shares outstanding, without a corresponding
change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during
the period are adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2024

1.1 Basis for Preparation of Financial Statements:

a) Compliance with Indian Accounting Standards (Ind As)

The Standalone financial statements have been prepared in accordance with Indian
Accounting Standards (Ind As) as per the Companies (Indian Accounting Standards) Rules,
2015 notified under section 133 of the Companies Act, 2013.

The standalone financial statements have been prepared on the historical cost basis except for
certain instruments which are measured at fair values at the end of each reporting period, as
explained in the accounting policies below.

Accordingly, the Company has prepared these Standalone Financial Statements which
comprise the Balance Sheet as at 31 March, 2024, the Statement of Profit and Loss for the
year ended 31 March 2024, the Statement of Cash Flows for the year ended 31 March 2024,
and the Statement of Changes in Equity for the year ended as on that date, and accounting
policies and other explanatory information (together hereinafter referred to as ''Standalone
Financial Statements'' or ''financial statements'' ).

These financial statements are approved by the Board of Directors on -30/05/2024.

b) Basis of Preparation of financial statements

The separate financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) under historical cost convention on accrual basis except the assets and
liabilities which have been measured at Fair Values.

• Financial instruments - measured at fairvalue;

• Assets held for sale - measured at fair value less cost of sale;

• Plan assets under defined benefit plans - measured at fair value

• Employee share-based payments - measured at fair value

• Biological assets - measured at fair value

• In addition, the carrying values of recognized assets and liabilities, designated
as hedged items in fair value hedges that would otherwise be carried at cost, are
adjusted to record changes in the fair values attributable to the risks that are being
hedged in effective hedge relationship.

Current and Non-Current Classification:

The Company presents assets and liabilities in the balance sheet based on current / non¬
current classification.

An asset is classified as current when it satisfies any of the following criteria:

• Expected to be realised, or is intended to be sold or consumed, the Company'' s
normal operating cycle.

• held primarily for the purpose of trading;

• It is expected to be realised within twelve months after the reporting date; or

• It is cash or cash equivalent unless restricted from being exchanged or used to settle
a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

An asset is classified as current when it satisfies any of the following criteria:

• It is expected to be settled in the Company'' s normal operating cycle;

• It is held primarily for the purpose of being traded

• It is due to be settled within 12 months after the reporting date; or the Company does
not have an unconditional right to defer settlement of the liability for at least 12
months after the reporting date.

• Terms of a liability that could, at the option of the counterparty, result in its settlement
by the issue of equity instruments do not affect its classification

All other liabilities are classified as non-current,

c) Use of estimates and judgment

The preparation of the financial statements in conformity with Ind AS, management has made
judgments, estimates and assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates.

This note provides an overview of the areas where there is a higher degree of
judgment or complexity. Detailed information about each of these estimates and
judgments is included in relevant notes together with information about
the basis of calculation.

The areas involving critical estimates or judgments are:

d. Standards issued but not effective (based on Exposure drafts available as on
date)

The amendments are proposed to be effective for reporting periods beginning
on or after 1 April 2021.
i).Issue of Ind AS 117 - Insurance Contracts:

Ind AS 117 supersedes Ind AS 104 Insurance contracts. It establishes the
principles for the recognition, measurement, presentation and disclosure of
insurance contracts within the scope of the standard. Under the Ind AS 117
model, insurance contract liabilities will be calculated as the present value of
future insurance cash flows with a provision for risk.

Application of this standard is not expected to have any significant impact on the
Company'' s financial statements.

Amendments to existing Standards

Ministry of Corporate Affairs has carried out amendments of the following
accounting standards:

1. Ind AS 103 - Business Combination - nil

2. Ind AS 1, Presentation of Financial Statements and Ind AS 8, Accounting

Policies, Changes in Accounting Estimates and Errors

3. Ind AS 40 - Investment Property - nil

The Company is in the process of evaluating the impact of the new

amendments issued but not yet effective.

e. Estimation of uncertainties relating to the global health pandemic

from COVID-19 (COVID-19):

In assessing the recoverability of assets including trade receivables, unbilled receivables
and investments, the Company has considered internal and external information up to the
date of approval of these standalone financial statements including credit reports and
economic forecasts. The Company has performed sensitivity analysis on the assumptions
used and based on current indicators of future economic conditions, the Company
expects to recover the carrying amount of these assets. The eventual outcome of impact
of the global health pandemic COVID-19 may be different from those estimated as on the
date of approval of these standalone financial statements.

1.2. Ind AS 105: Non-Current Assets held for Sale or Discontinued

Operations:

This standard specifies accounting for assets held for sale, and the presentation

and disclosure for discontinued operations:

(a) Assets that meet the criteria to be classified as held for sale to be measured at
the lower of carrying amount and fair value less cost to sell, and depreciation
on such assets to cease; and

(b) Assets that meet the criteria to be classified as held for sale to be presented
separately in the balance sheet and the results of discontinued operations to
be presented separately in the statement of profit and loss.

1.3 Ind AS 106: Exploration for Evolution of Mineral resources:

This standard specifies the financial reporting for the exploration for evaluation of mineral
resources. In particular, this standard requires:

a. Limited improvements to existing accounting practices for exploration and evaluation of
expenditures

b. Entities that recognize exploration and evaluation of assets to assess such assets for
impairment in accordance with this standard and measure any impairment.

Disclosures that identify and explain the amounts in the entity'' s financial statements arising
from the exploration for the evaluation of mineral resources and help users of those financial
statements understand the amount, timing and certainty of future cash flows from any
exploration and evaluation of assets recognized.

This Ind AS 106 not applicable, the company is in the business of Software Services. Hence this
Ind AS does not have any financial impact on the financial statements of the company.

1.4 Ind AS-16; Property. Plant and Equipment;

Property, Plant and Equipment are stated at cost less accumulated depreciation.

Cost of an item of property, plant and equipment comprises its purchase price, including
import duties and non-refundable purchase taxes, after deducting trade discounts and rebates,
any directly attributable cost of bringing the item to its working condition for its intended use
and estimated costs of dismantling and removing the item and restoring the site on which it
is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of
materials and direct labor, any other costs directly attributable to bringing the item to working
condition for its intended use, and estimated costs of dismantling and removing the item and
restoring the site on which it is located.

Property, plant and equipment which are significant to the total cost of that item of Property
Plant and Equipment and having different useful life are accounted for as separately.

Gains or losses arising from derecognition of property, plant and equipment are measured as
the difference between the net disposal proceeds and carrying amount of the asset is
recognized in the statement of profit or loss when the asset is derecognized.

Depreciation on Property Plant and Equipment is provided on Straight line method.
Depreciation is provided based on useful life as prescribed under part C of the schedule II of
the Companies act, 2013.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date
on which asset is ready for use (disposed of).

Impairment

Property Plant and Equipment are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amount may not be recoverable. An impairment loss
is recognised for the amount by which the asset'' s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset'' s fair value less cost of disposal
and value in use. For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash inflows which are largely independent of
the cash inflows from other assets or groups of assets (cash-generating units).

1.5 Impairment Assets (Ind AS 36)

The Company'' s non-financial assets, other than deferred tax assets are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset'' s recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped
together into cash-generating units (CGUs). Each CGU represents the smallest group of assets
that generates cash inflows that are largely independent of the cash inflows of other assets or
CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and
its fair value less costs to sell. Value in use is based on the estimated future cash flows,
discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the CGU (or the asset).

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its
estimated recoverable amount. Impairment losses are recognised in the statement of profit
and loss. Impairment loss recognised in respect of a CGU is allocated first to reduce the
carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying
amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.

The books of accounts of the company doesn'' t carry any impairment of assets during the
reporting period, hence this accounting standard does not have financial impact on the
financial statements of the company

1.6 Intangible assets (Ind AS 38):

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible
assets are amortized over their estimated useful life on straight line basis.

Subsequent costs are included in assets carrying amount or recognized 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.

The residual Values, useful lives and methods of depreciation of Property Plant and Equipment
are reviewed at each Financial year end and adjusted prospectively, if appropriate.

Gains or losses arising from derecognition of Intangible asset are measured as the difference
between the net disposal proceeds and carrying amount of the asset is recognized in the
statement of profit or loss when the asset is derecognised.

The books of accounts of the company doesn'' t carry any Intangible assets during the
reporting period, hence this accounting standard does not have financial impact on the
financial statements of the company.

1.7 Cash Flow Statement (Ind AS 7):

Cash flows are reported using the indirect method under Ind AS 7, whereby profit/(loss) before
extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and
any deferrals or accruals of past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are segregated based on the
available information.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short¬
term balances (with an original maturity of three months or less from the date of acquisition),
highly liquid investments that are readily convertible into known amounts of cash and which
are subject to insignificant risk of changes in value.

1.8 Operating Cycle:

The Company has adopted its normal operating cycle as twelve months based on the nature
of products and the time between the acquisition of assets for processing and their realization,
for the purpose of current / non-current classification of assets and liabilities.

1.9 Capital Work In Progress

Capital Work in Progress (CWIP) includes Civil Works in Progress, Plant & Equipment under
erection and Preoperative Expenditure pending allocation on the assets to be
acquired/commissioned, capitalized. It also includes payments made to towards technical
know-how fee and for other General Administrative Expenses incurred for bringing the asset
into existence.

1.10 Investments:

Investments are classified as Non-Current and Current investments.

Investments, which are readily realisable and are intended to be held for not more than one
year from the date on which such investments are made, are classified as current investments.
All other investments are classified as non-current investments.

Current investments are carried at lower of cost and fair value. Non-Current Investments are
carried at cost less provision for other than temporary diminution, if any, in value of such
investments.

1.11 Effects of changes in Foreign Rates (Ind AS 21):

Foreign currency transactions are recorded at the exchange rates prevailing on the dates when
the relevant transactions took place. Exchange difference arising on settled foreign currency
transactions during the year and translation of assets and liabilities at the yearend are
recognized in the statement of profit and loss.

In respect of Forward contracts entered into to hedge risks associated with foreign currency
fluctuation on its assets and liabilities, the premium or discount at the inception of the contract
is amortized as income or expense over the period of contract. Any profit or loss arising on
the cancellation or renewal of forward contracts is recognized as income or expense in the
period in which such cancellation or renewal is made.

The company has not entered any foreign exchange transactions during the reporting period,
hence this accounting standard does not have financial impact on the financial statements.

1.12 Borrowing Costs (Ind AS 23):

Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are added to the cost of those assets, until such time as
the assets are substantially ready for the intended use or sale.

Investment income earned on temporary investment of specific borrowings pending their
expenditure on qualifying assets is recognised in statement of profit and loss.

Discounts or premiums and expenses on the issue of debt securities are amortised over the
term of related securities are included within borrowing costs. Premiums payable on early
redemptions of debt securities, in lieu of future costs, are recognised as borrowing costs.

All other borrowing costs are recognised as expenses in the period in which it is incurred.

1.13 Revenue Recognition (Ind AS 18):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognized:

a) Sales Revenue is recognized on dispatch to customers as per the terms of the order. Gross
sales are net of returns and applicable trade discounts and excluding GST billed to the
customers.

b) Subsidy from Government is recognized when such subsidy has been earned by the
company and it is reasonably certain that the ultimate collection will be made.

c) 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.

d) All other incomes are recognized based on the communications held with the parties and
based on the certainty of the incomes.

1.14 Accounting for Government Grants and Disclosure of Government Assistance (Ind AS
20):

Government grants:

Government grants are not recognised until there is reasonable assurance that
the Company will comply with the conditions attached to them and that the
grants will be received.

Government grants are recognised in the Statement of Profit and Loss on a
systematic basis over the years in which the Company recognises as expenses the
related costs for which the grants are intended to compensate or when
performance obligations are me.

Government grants, whose primary condition is that the Company should
purchase, construct or otherwise acquire non-current assets and nonmonetary
grants are recognised and disclosed as ''deferred income'' under non-current
liability in the Balance Sheet and transferred to the Statement of Profit and Loss
on a systematic and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and effect of
this favourable interest is treated as a government grant. The loan or assistance
is initially recognised at fair value and the government grant is measured as the
difference between proceeds received and the fair value of the loan based on
prevailing market interest rates and recognised to the income statement
immediately on fulfillment of the performance obligations. The loan is
subsequently measured as per the accounting policy applicable to financial
liabilities.

1.15 Inventories (Ind AS 2):

Inventories are assets:

a. Held for sale in the ordinary course of business;

b. In the process of production for such sale;

c. In the form of materials or supplies to be consumed in the production process or in the
rendering of services

Net Realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.

Inventories at the year-end are valued as under:

Raw Materials, Packing Material, At Cost as per First in First out Method
Components, Consumables and Stores (FIFO).

& Spares

Work In Progress and Finished goods At lower of net realizable value and Cost

of Materials plus Cost of Conversion and
other costs incurred in bringing them to
the present location and condition.

• Cost of Material excludes duties and taxes which are subsequently recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the time of dispatch from
Factories.

• Based on the information provided the difference between physical verification and valuation
of the of inventories are charged to the profit and loss account.

1.16 Trade Receivables - Doubtful debts:

A Trade receivable represents the company'' s right to an amount of consideration that is
unconditional.

Provision is made in the Accounts for Debts/Advances which is in the opinion of Management
are Considered doubtful of Recovery.

1.17 Retirement and other Employee Benefits:

Retirement benefit in the form of provident fund is a defined contribution scheme. The
Company has no obligation, other than contribution payable to the provident fund. The
Company recognizes contribution payable to the provident fund scheme as expenditure, when
an employee renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing the benefits under
this plan is determined on the basis of actuarial valuation at each year-end. Actuarial valuation
is carried out for this plan using the projected unit credit method. Actuarial gains and losses
for defined benefits plan is recognized in full in the period in which they occur in the statement
of profit and loss.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as
short term employee benefit. The Company measures the expected cost of such absences as

the additional amount that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months,
as long-term employee benefit for measurement purposes. Such long-term compensated
absences are provided for based on the actuarial valuation using the projected unit credit
method at the year-end. Actuarial gains/losses are immediately taken to the statement of
profit and loss and are not deferred. The Company presents the leave as a current liability in
the balance sheet, to the extent it does not have an unconditional right to defer its settlement
for 12 months after the reporting date.

1.18 Ind AS 17- Leases

A Lease is classified as a Finance Lease if it transfers substantially all the risks and rewards
incidental to ownership. A lease is classified as an operating lease if it does not transfer
substantially all the risks and rewards incidental to ownership.

Finance charges in respect of finance lease obligations are recognized as finance costs in the
statement of profit and loss. In respect of operating leases for premises, which are cancellable
/ renewable by mutual consent on agreed terms, the aggregate lease rents payable are
charged as rent in the Statement of Profit and Loss.

1.19 Insurance Claims:

Insurance Claims are accounted for on the basis of claims admitted/expected to be admitted
and to the extent that the amount recoverable can be measured reliably and it is reasonable
to expect ultimate collection.

1.20 Earnings per Share (Ind AS 33):

Basic earnings per share are calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period. Partly paid equity shares are treated as a fraction of an equity
share to the extent that they are entitled to participate in dividends relative to a fully paid
equity share during the reporting period. The weighted average number of equity shares
outstanding during the period is adjusted for events such as bonus issue, bonus element in a
rights issue, share split, and reverse share split (consolidation of shares) that have changed the
number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding
during the period are adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2016

Company Overview

MUDUNURU LIMITED (Formally Known as Green Field Agri Ventures Limited) is a technology-enabled IT solutions company, foreseeing future needs & exigencies, delivering excellent products of high quality and reliability with unflinching commitment and having emphatic global market presence. MUDUNURU LIMITED (Formally Known as Green Field Agri Ventures Limited) specialized in agri related software and hardware solutions, with proven reputation for delivering high quality solutions to a broad spectrum of industry vertical s.

1. Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the 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 (’the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014.

Management evaluates all recently issued or revised accounting standards on an ongoing basis. The financial statements are prepared under the historical cost convention. Recognition of income and expenses, accrual bas is of accounting is to allowed.

2. Use of Estimate#

The preparation of financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and Liabilities and disclosures relating to coming assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and in tangible assets.

Management periodically assessed using external and internal sources whether there is an indication that an asset maybe impaired. Contingencies arc recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Actual results could differ from those estimates.

3. Revenue Recognition

Revenues from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred

Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognized over the life of the contract using the proportionate completion method, with contract costs detaining the degree of completion.

Revenues from sale of software licenses are recognized upon delivery.

Revenues from maintenance contracts are recognized pro-rata over the period of the contract.

In respect of Business Process Outsourcing (BPO) services, revenue on time and material and unit priced contracts is recognized as the related services, rendered, whereas revenue from fixed price contracts is recognized as per the proportionate completion method with contract cost determining the degree of the completion.

4. Expenditure

Expenses are accounted on accrual basis and provisions are made to all known losses and liabilities.

5. Fixed Assets, intangible assets and capital work-in-progress

Fixed Assets are stated at cost, less accumulated depreciation. All direct costs are capitalized until fixed assets are ready for use including taxes, duties, freight and other incidental expenses relating to acquisition and installation. Capital work-in-progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the balance sheet date. Intangible assets are recorded at the consideration paid for acquisition.

6. Deprecation and amortization

Depreciation on fixed assets has been provided on straight-line method based on useful life of asset specified in Schedule II of the Companies Act, 2013 on pro-rata basis.

7. Income tax

Income taxes are computed using the tax effect accounting method, in accordance with the Accounting Standard (AS 22) "Accounting for Taxes on Income" which includes current taxes and deferred taxes. Deferred income taxes reflect the impact if current year timing differences between taxable income and accounting income for the year and the relevant of timing difference of earlier years. Deferred tax asset and liabilities are measured at the tax rates that are expected to apply to the period when the asset / liability is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will lie available against which such deferred tax assets can be realized.

8, Employee Benefits

Liability for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) 15 (revised) ''Employee Benefits * issued by the Institute of Chartered Accountants of India.

Contribution to Provident Fund (a defined contribution plan) made to Regional Provident Fund Commissioner is recognized as expenses.

S. Foreign currency transactions

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognized in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise''s net investments in a non-integral foreign operation are accumulated in a foreign currency Translation reserve.

10. Inventories

Inventories are valued at cost on FIFO basis.

11. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on 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 not recognized in the financial statements. A contingent asset neither is neither recognized nor disclosed in the financial statements.

12. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.

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Mar 31, 2015

1. Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the 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 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014.

Management evaluates all recently issued or revised accounting standards on an ongoing basis. The financial statements are prepared under the historical cost convention. Recognition of income and expenses, accrual basis of accounting isfollowed.

2. Use of Estimates

The preparation of financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets.

Management periodically assessed using external and internal sources whether there is an indication that an asset may be impaired. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Actual results could differ from those estimates.

3. Revenue Recognition

Revenues from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred.

Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognized over the life of the contract using the proportionate completion method, with contract costs determining the degree of completion.

Revenues from sale of software licenses are recognized upon delivery.

Revenues from maintenance contracts are recognized pro-rata over the period of the contract.

In respect of Business Process Outsourcing (BPO) services, revenue on time and material and unit priced contractsis recognized as the related services, rendered, whereas revenue from fixed price contracts is recognized as per the proportionate completion method with contract cost determining the degree of completion.

4. Expenditure

Expenses are accounted on accrual basis and provisions are made for all known losses and liabilities.

5. Fixed Assets, intangible assets and capital work-in-progress

Fixed Assets are stated at cost, less accumulated depreciation. All direct costs are capitalized until fixed assets are ready for use including taxes, duties, freight and other incidental expenses relating to acquisition and installation. Capital work-in-progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the balance sheet date. Intangible assets are recorded at the consideration paid for acquisition.

6. Depreciation and amortization

Depreciation on fixed assets has been provided on straight-line method based on useful life of asset specified in Schedule II of the Companies Act, 2013 on pro-rata basis.

7. Incometax

Income taxes are computed using the tax effect accounting method, in accordance with the Accounting Standard (AS 22) "Accounting for Taxes on Income" which includes current taxes and deferred taxes. Deferred income taxes reflect the impact if current year timing differences between taxable income and accounting income for the year and the relevant of timing difference of earlier years. Deferred tax asset and liabilities are measured at the tax rates that are expected to apply to the period when the asset / liability is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

8. Employee Benefits

Liability for employee benefits, both shortterm and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) 15 (revised) "Employee Benefits" issued by the Institute of Chartered Accountants of India.

Contribution to Provident Fund (a defined contribution plan) made to Regional Provident Fund Commissioner is recognized as expenses.

9. Foreign currency transactions

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non- integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognized in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise's net investments in a non- integral foreign operation are accumulated in a foreign currency translation reserve.

10. Inventories

Inventories are valued at cost on FIFO basis.

11. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that anoutflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions(excluding retirement benefits) are not discounted to its present value and are determined based on best estimate requiredto settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect thecurrent best estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset is neitherrecognized nordisclosed inthefinancial statements.

12. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from thedate of purchase, to be cash equivalents.

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Mar 31, 2014

1. Basis of preparation of financial statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) (which continues to be applicable in terms of General circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013) and other relevant provisions of the Companies Act, 1956.

Management evaluates all recently issued or revised accounting standards on an ongoing basis. The financial statements are prepared under the historical cost convention. Recognition of income and expenses, accrual basis of accounting is followed.

2. Use of Estimates

The preparation of financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets.

Management periodically assessed using external and internal sources whether there is an indication that an asset may be impaired. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Actual results could differ from those estimates.

3. Revenue Recognition

Revenues from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred.

Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognised over the life of the contract using the proportionate completion method, with contract costs determining the degree of completion.

Revenues from sale of software licences are recognised upon delivery.

Revenues from maintenance contracts are recognised pro-rata over the period of the contract.

In respect of Business Process Outsourcing (BPO) services, revenue on time and material and unit priced contracts is recognized as the related services, rendered, whereas revenue from fixed price contracts is recognized as per the proportionate completion method with contract cost determining the degree of completion.

4. Expenditure

Expenses are accounted on accrual basis and provisions are made for all known losses and liabilities.

5. Fixed Assets, intangible assets and capital work-in-progress

Fixed Assets are stated at cost, less accumulated depreciation. All direct costs are capitalized until fixed assets are ready for use including taxes, duties, freight and other incidental expenses relating to acquisition and installation. Capital work-in-progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the balance sheet date. Intangible assets are recorded at the consideration paid for acquisition.

6. Depreciation and amortization

Depreciation on fixed assets is applied on straight-line method, prorata for the period of usage, in accordance with the rates prescribed under schedule XIV of the Companies Act, 1956.

7. Income tax

Income taxes are computed using the tax effect accounting method, in accordance with the Accounting Standard (AS 22) "Accounting for Taxes on Income" which includes current taxes and deferred taxes. Deferred income taxes reflect the impact if current year timing differences between taxable income and accounting income for the year and the relevant of timing difference of earlier years. Deferred tax asset and liabilities are measured at the tax rates that are expected to apply to the period when the asset / liability is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

8. Employee Benefits

Liability for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) 15 (revised) "Employee Benefits " issued by the Institute of Chartered Accountants of India.

Contribution to Provident Fund (a defined contribution plan) made to Regional Provident Fund Commissioner is recognized as expenses.

9. Foreign currency transactions

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognized in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise''s net investments in a non-integral foreign operation are accumulated in a foreign currency translation reserve.

10. Inventories

Raw materials, sub-assemblies and components are carried at the lower of cost and net realizable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realizable value. Stores and spare parts are carried at lower of cost and net realizable value. Finished goods produced or purchased by the Company are carried at lower of cost and net realizable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.

11. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on 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 not recognized in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.

12. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.

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Mar 31, 2011

1. BASIS OF ACCOUNTING:

The financial statements have been prepared by following the going concern concept on historical cost convention on an accrual basis and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred in Section 211(3C) of the Companies Act, 1956, of India (the "Act").

2.FIXED ASSETS:

Fixed asset are stated at cost less depreciation. All direct costs are capitalized until fixed assets are ready for use including taxes, duties, freight and other incidental expenses relating to acquisition and installation. Depreciation on the fixed assets is provided on Written down value method as per the rates and on the manner prescribed on schedule XIV to the companies Act, 1956.

3.INVESTMENTS:

Current investments are carried at lower of cost or fair value. Long term investments are stated at cost after deducting provisions made for diminution other than temporary.

REVENUE RECOGNITIONS:

The revenue has been recognized on the accrual basis. Revenues from the sale of products for software applications are recognized on transfer of products to the users.

6. EXPENSES:

Expenses are accounted on accrual basis and provisions are made for all known losses and liabilities.

7.TAXES ON INCOME:

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period in which related revenue and expenses arise.

Deferred tax is recognized on timing difference being the difference between taxable incomes and 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 tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable/virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

8.EARNINGS PER SHARE

In determining earnings per share, the company considers the net profit after tax expense. The number of shares used in computing basic earnings per share is the weighted average shares outstanding during the period.

9.CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

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Mar 31, 2010

I. The financial statements have been prepared by following the going concern concept on historical cost convention on an accrual basis and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred in Section 211(3C) of the Companies Act, 1956, of India (the "Act").

ii. Revenue Recognition:

Revenues from time bound fixed price contracts, are recognised over the life of the contract using the proportionate completion method, with contract costs determining the degree of completion. Revenues from annual maintenance contracts are recognized proportionately over the period in which services are rendered. Revenues from the sale of products for software applications are recognized on transfer of the products to the users.

iii. Fixed Assets, Intangible Asset and Depreciation:

Fixed assets are stated at cost of acquisition less accumulated depreciation.

Depreciation on fixed assets is being provided for on Straight Line Method at the rates specified in schedule XIV of the companies Act, 1956. Depreciation on additions during the year has been provided for on a pro rata basis.

iv. Investments:

Current investments are carried at lower of cost or fair value. Long term investments are stated at cost after deducting provisions made for dimininution other than temporary.

v. Foreign Currency Transactions:

The transactions in foreign currency are recorded at the exchange rates prevailing on the date of transaction. All the foreign currency assets and liabilities (except those towards fixed assets) are translated at the year end exchange rate and the related exchange gain/loss is recognised in profit and loss account.

vi. Taxes on Income:

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period in which related revenue and expenses arise.

Deferred tax is recognised on timing difference being the difference between taxable income and 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 tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable/virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

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Mar 31, 2009

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

(i) The accounts are prepared on Historical cost basis and on accounting principles of a going concern.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2. REVENUE RECOGNITION

Revenue is realized on time-and-material basis and billed to clients as per the terms of specific contracts. Revenue from software development on time and material basis is recognized based on software developed and billed to clients as per the terms of specific contracts. Revenue from sale of special import licenses is recognized when the licenses are actually sold.

3. OTHER INCOME:

Interest income if any is accounted on accrued basis.

4. INVESTMENTS : Valued at Cost

5. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation.

6. DEPRECIATION:

Depreciation on fixed assets has been provided on W.D.V. method in the accounts as per the provisions.

7. ACCOUNTING FOR DEFERRED TAX LIABILITY/ASSETS

Taxation deferred as a result of timing difference, between the accounting & taxable profits, is accounted for on the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallise. Deferred tax asset is recognised only to the extent there is reasonable certainty of realisation in future. Deferred tax assets are reviewed, as at each balance sheet date, to reassess realisation. The revision in this accounting policy is incorporated consequent to the issuance of mandatory Accounting Standard 22 by the Institute Of Chartered Accountants Of India.