TVS Electronics Ltd. कंपली की लेखा नीति

Mar 31, 2025

b) MATERIAL SIGNIFICANT ACCOUNTING POLICIES

1) Statement of compliance

The financial statements have been prepared
in accordance with Indian Accounting
Standards (“Ind AS”) notified under the
Companies (Indian Accounting Standards)
Rules, 2015. The Ind AS are prescribed under
Section 133 of the Companies Act, 2013
(“the Act”) read with Rule 3 of Companies
(Indian Accounting Standards) Rules, 2015
and relevant amendments and rules issued
thereafter. The Financial Statements are
presented in Indian Rupees (?) and all
values are rounded to the nearest lakhs
('' 00,000),except when otherwise indicated.

2) Basis of preparation and presentation

The financial statements have been prepared
on the historical cost basis except for certain
financial instruments that are measured at fair
values at the end of each reporting period, as
explained in the accounting policies below.
Historical cost is generally based on the fair
value of the consideration given in exchange
for goods and services.

Fair value is the price that would be received
to sell an asset or paid to transfer a liability
in an orderly transaction between market
participants at the measurement date,
regardless of whether that price is directly
observable or estimated using another
valuation technique. In estimating the fair
value of an asset or a liability, the Company
takes into account the characteristics of
the asset or liability if market participants
would take those characteristics into

account when pricing the asset or liability
at the measurement date. Fair value for
measurement and/or disclosure purposes
in these financial statements is determined
on such a basis, except for share-based
payment transactions that are within the
scope of Ind AS 102, leasing transactions
that are within the scope of Ind AS 116, and
measurements that have some similarities to
fair value but are not fair value, such as net
realisable value in Ind AS 2 or value in use in
Ind AS 36.

In addition, for financial reporting purposes,
fair value measurements are categorised into
Level 1,2, or 3 based on the degree to which
the inputs to the fair value measurements are
observable and the significance of the inputs
to the fair value measurement in its entirety,
which are described as follows:

• Level 1 inputs are quoted prices
(unadjusted) in active markets for
identical assets or liabilities that the
entity can access at the measurement
date;

• Level 2 inputs are inputs, other than
quoted prices included within Level
1, that are observable for the asset or
liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs
for the asset or liability.

The principal accounting policies are set out
below.

3) Critical accounting judgements, key
sources of estimation uncertainty
and applicability of new accounting
standards

a) Use of estimates

The preparation of financial statements
in conformity with Ind AS requires
management to make certain estimates
and assumptions that affect the amounts
reported in the financial statements
and notes thereto. The management
believes that these estimates and
assumptions are reasonable and
prudent. However, future results could
differ from these estimates and the
differences between actual results and
estimates are recognised in the period in

which results are known / materialised.
Estimates and underlying assumptions
are reviewed on an ongoing basis and
any revision to accounting estimates is
recognised prospectively in the current
and future period.

This note provides an overview of the
areas that involved a higher degree
of judgement or complexity, and of
items which are more likely to be
materially adjusted due to estimates
and assumptions turning out to be
different than those originally assessed.
Detailed information about each of
these estimates and judgements is
included in the relevant notes together
with information about the basis of
calculation for each affected line item in
the financial statements.

b) Significant Estimates and
judgements

The areas involving critical estimates or
judgements are:

i) Fair valuation measurement & valuation
process

Some of the Company’s assets and
liabilities are measured at fair value
for financial reporting purposes. In
estimating the fair value of an asset or
a liability, the Company uses market-
observable data to the extent it is
available. Where Level 1 inputs are
not available, the Company engages
third party valuers, where required,
to perform the valuation. Information
about the valuation techniques and
inputs used in determining the fair value
of various assets, liabilities and share
based payments are disclosed in the
notes to the financial statements.

ii) Actuarial Valuation

The determination of Company’s
liability towards defined benefit
obligation to employees is made
through independent actuarial valuation
including determination of amounts to
be recognised in the Statement of Profit
and Loss and in other comprehensive
income. Such valuation depend

upon assumptions determined after
taking into account inflation, seniority,
promotion and other relevant factors
such as supply and demand factors in
the employment market. Information

about such valuation is provided in
notes to the financial statements.

iii) Useful life of Property, Plant and
Equipment & Intangible assets

As described in the significant accounting
policies, the Company reviews the
estimated useful lives of property, plant
and equipment and intangible assets at
the end of each reporting period.

iv) Revenue Recognition

- The Company’s contracts with
customers could include promises
to render multiple services to
a customer. The Company
assesses the services promised
in a contract and identifies distinct
performance obligations in the
contract. Identification of distinct
performance obligation involves
Judgement to determine the
deliverables and the ability of the
customer to benefit independently
from such deliverables.

- Judgement is also applied to
determine the principal and agent
in the contracts with customers
based on the substance of the
arrangement read with the guidance
provided in the standard.

- The Company uses judgement to
determine standalone selling price
of a performance obligation. The
Company allocates the transaction
price to each performance
obligation on the basis of the
relative standalone selling price
of each distinct product or service
promised in the contract. Where
standalone selling price is not
observable, the Company uses
the expected cost plus margin
approach to allocate the transaction
price to each distinct performance
obligation.

- The Company exercises judgement
in determining whether the
performance obligation is satisfied
at a point in time or over a period of
time.

v) Impairment of Financial and Non¬
Financial assets

The Company assesses at each
reporting date whether there is an
indication that an asset may be
impaired. If any indication exists,
the Company estimates the asset’s
recoverable amount. An asset’s
recoverable amount is the higher of
an asset’s or Cash Generating Units
(CGU’s) fair value less costs of disposal
and its value in use. It is determined for
an individual asset, unless the asset
does not generate cash inflows that are
largely independent of those from other
assets or a group of assets. Where the
carrying amount of an asset or CGU
exceeds its recoverable amount, the
asset is considered impaired and is
written down to its recoverable amount.
The impairment provisions for Financial
Assets are based on assumptions about
risk of default and expected cash loss
rates. The Company uses judgement
in making these assumptions and
selecting the inputs to the impairment
calculation, based on Group’s past
history, existing market conditions
as well as forward-looking estimates
at the end of each reporting period.
In case of non-financial assets Company
estimates asset’s recoverable amount,
which is higher of an asset’s or Cash
Generating Units (CGU’s) fair value less
costs of disposal and its value in use.
In assessing value in use, the estimated
future cash flows are discounted to their
present value using pre-tax discount rate
that reflects current market assessments
of the time value of money and the risks
specific to the asset. In determining
fair value less costs of disposal, recent
market transactions are taken into
account, if no such transactions can
be identified, an appropriate valuation
model is used.

c) Standard Issue but not effective

On March 23, 2022 the Ministry of
Corporate Affairs (MCA) has notified
Companies (Indian Accounting
Standards) Amendment Rules 2022.
The notification has resulted into
amendments in the following existing
accounting standards which are
applicable from April 01,2022.

i. Ind AS 101 - First time adoption of
Ind AS

ii. Ind AS 103 Business Combination

iii. Ind AS 109 Financial Instrument

iv. Ind AS 16 - Property , Plant and
Equipment

v. Ind AS 37, Provisions , Contingent
Liabilities and Contingent assets

vi. Ind AS 41 Agriculture

The Company is evaluating the impact
of the above on its financial statements.

4) Revenue Recognition

The Company earns revenue primarily
from sale of electronic goods, computer
consumable and other support services.
Revenue is measured at the fair value of the
consideration received or receivable and net
of returns, allowances and rebates and goods
and services tax.

Revenue is recognised upon transfer of
control of promised products or services
to customers in an amount that reflects the
consideration which the Company expects
to receive in exchange for those products
or services. When there is uncertainty on
ultimate collectability, revenue recognition is
postponed until such uncertainty is resolved.
The amount of revenue recognised depends
on whether we act as an agent or as a
principal. Certain arrangements with our
clients are such that our responsibility is to
arrange for a third party to provide a specified
good or service to the client. In these cases
we are acting as an agent as we do not
control the relevant good or service before
it is transferred to the client. When we act
as an agent, the revenue recorded is the
net amount retained. The Company acts
as principal when we control the specified

good or service prior to transfer. When the
Company acts as a principal, the revenue
recorded is the gross amount billed.

In- Warranty Service

In respect of In-warranty service contracts,
where performance obligation is satisfied at
a point of time when the service is extended
to the customer on behalf of the brand,
revenue is recognised net of payments made
to the brand after considering the rights and
obligation of both the Company and the brand
in specific to these contracts.

Out of Warranty Service
In respect of Out of warranty service
contracts, where performance obligation is
satisfied at a point of time when the control of
the goods sold is passed on to the customer
and the service is received by the customer
as per the terms and conditions stipulated
by the brand, revenue is recognised net of
payments made to the brand after considering
the rights and obligation of both the Company
and the brand in specific to these contracts.
Service Contracts

In respect of service contracts, where
performance obligation is satisfied over the
period of time when the service is received by
the customer as per the terms and conditions
stipulated by the brand, transaction price
which is the amount charged to customer
is recognised on a time proportion basis
over the period of time when the customer
receives and accepts the service.

Sale of Goods

In respect of Sale of goods, where
performance obligation is satisfied at a point
of time when the control of the goods sold
is passed on to the customer, revenue is
recognised for the transaction price which is
the invoice value charged to the customer.
Sale of Goods- Institutions
In respect of contracts with institutional
customer where goods are sold with
additional warranty period, performance
obligation is satisfied at a point of time when
the control of the goods sold is passed on
to the customer for sale of goods and for
the extended warranty service performance
obligation is satisfied over the period of time
when that particular service is received by
the customer.

Both sale of goods and extended warranty
service qualify to be separate performance
obligation within the definition of the standard
and the transaction price is allocated between
the performance obligations proportionate
to the standalone selling prices of the
components.

In respect of sale of goods, revenue is
recognised at the point in time when the
control is transferred for the value allocated
and in respect of extended warranty service
revenue is recognised on a time proportion
basis over the period of time when the
customer receives and accepts the service.
Extended Warranty Service

In respect of extended warranty service
contracts, where performance obligation
is satisfied over the period of time at the
transaction price which is the amount
charged to customer is recognised on a
time proportion basis over the period of time
when the customer receives and accepts the
service.

5) Property, Plant and Equipment

Land and building held for use in the
production or for administrative purposes,
are stated in the balance sheet at cost less
accumulated depreciation and accumulated
impairment losses. Free hold land is not
depreciated.

Properties in the course of construction
for production, supply or administrative
purposes are carried at cost, less any
recognised impairment loss. Cost includes
professional fees and, for qualifying assets,
borrowing costs capitalised in accordance
with the Company’s accounting policy. Such
properties are classified to the appropriate
categories of property, plant and equipment
when completed and ready for intended use.
Depreciation of these assets, on the same
basis as other property assets, commences
when the assets are ready for their intended
use.

Depreciation is recognised so as to write
off the cost of assets (other than freehold
land and properties under construction)

less their residual values over their useful
lives, using the straight-line method. The
estimated useful lives, residual values and
depreciation method are reviewed at the end
of each reporting period, with the effect of
any changes in estimate accounted for on a
prospective basis.

The estimate useful life adopted by the
Company are as follows:

Based on technical evaluation, the
Management believes that the useful lives,
as given above, best represent the period
over which the Management expects to use
these assets. Hence, the useful lives for
these assets is different from the useful lives
as prescribed under Part C of Schedule II of
the Companies Act 2013.

Capital work-in-progress: Projects under
which plant, property and equipment are not
yet ready for their intended use are carried at
cost, comprising direct cost, related incidental
expenses and attributable interest.

An item of property, plant and equipment
is derecognised upon disposal or when no
future economic benefits are expected to
arise from the continued use of the asset.
Any gain or loss arising on the disposal or
retirement of an item of property, plant and
equipment is determined as the difference
between the sales proceeds and the carrying
amount of the asset and is recognised in
profit or loss.

6) Intangible assets

a. Intangible assets acquired separately
Intangible assets with finite useful lives
that are acquired separately are carried
at cost less accumulated amortisation
and accumulated impairment losses.

Amortisation is recognised on a straight¬
line basis over their estimated useful
lives. The estimated useful life and
amortisation method are reviewed at
the end of each reporting period, with
the effect of any changes in estimate
being accounted for on a prospective
basis. Intangible assets with indefinite
useful lives that are acquired separately
are carried at cost less accumulated
impairment losses.

b. Derecognition of intangible assets

An intangible asset is derecognised on
disposal, or when no future economic
benefits are expected from use or
disposal. Gains or losses arising from
derecognition of an intangible asset,
measured as the difference between the
net disposal proceeds and the carrying
amount of the asset, are recognised
in profit or loss when the asset is
derecognised.

c. Useful lives of intangible assets
Estimated useful lives of the intangible
assets are as follows:

7) Impairment of Tangible and Intangible assets
At the end of each reporting period, the
Company reviews the carrying amounts of its
tangible and intangible assets to determine
whether there is any indication that those
assets have suffered an impairment loss. If
any such indication exists, the recoverable
amount of the asset is estimated in order
to determine the extent of the impairment
loss (if any). When it is not possible to
estimate the recoverable amount of an
individual asset, the Company estimates the
recoverable amount of the cash-generating
unit to which the asset belongs. When a
reasonable and consistent basis of allocation
can be identified, corporate assets are also
allocated to individual cash-generating
units, or otherwise they are allocated to the
smallest group of cash-generating units for
which a reasonable and consistent allocation
basis can be identified.

Intangible assets with indefinite useful lives
and intangible assets not yet available for use
are tested for impairment at least annually,
and whenever there is an indication that the
asset may be impaired.

Recoverable amount is the higher of fair
value less costs of disposal and value in
use. In assessing value in use, the estimated
future cash flows are 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 asset for which the estimates of future
cash flows have not been adjusted.

If the recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than
its carrying amount, the carrying amount of
the asset (or cash-generating unit) is reduced
to its recoverable amount. An impairment loss
is recognised immediately in profit or loss.
When an impairment loss subsequently
reverses, the carrying amount of the asset
(or a cash-generating unit) is increased
to the revised estimate of its recoverable
amount, but so that the increased carrying
amount does not exceed the carrying amount
that would have been determined had no
impairment loss been recognised for the
asset (or cash-generating unit) in prior years.
A reversal of an impairment loss is recognised
immediately in profit or loss.

8) Inventories

Inventories are stated at lower of cost or net
realisable value. The cost is calculated on
weighted average method. Cost comprises
expenditure incurred in normal course of
business in brining such inventory to its
present location and condition and includes
where applicable, appropriate overheads
based on the normal level of activity.

Net realisable value is the estimated selling
price less estimated cost for completion of
sale.

Obsolete, slow moving and defective
inventories are identified from time to time
and where necessary, a provision is made for
such inventories.

9) Employee benefits

(i) Short term Employee Benefits

A liability is recognised for benefits
accruing to employees in respect of
wages and salaries in the period the
related service is rendered.

Liabilities recognised in respect of short¬
term employee benefits are measured at
the undiscounted amount of the benefits
expected to be paid in exchange for the
related service.

Liabilities recognised in respect of
other long-term employee benefits are
measured at the present value of the
estimated future cash outflows expected
to be made by the Company in respect
of services provided by employees up to
the reporting date.

(ii) Retirement benefit costs and
termination benefits

Payments to defined contribution
retirement benefit plans are recognised
as an expense when employees have
rendered service entitling them to the
contributions.

For defined benefit retirement benefit
plans, the cost of providing benefits is
determined using the projected unit
credit method, with actuarial valuations
being carried out at the end of each
annual reporting period.

Defined benefit costs are categorised as
follows:

• Service cost (including current
service cost, past service cost,
as well as gains and losses on
curtailments and settlements);

• net interest expense or income;
and

• Remeasurement

The Company presents the first two
components of defined benefit costs in
profit or loss in the line item ‘Employee
benefits expense’.

Past service cost is recognised in
profit or loss in the period of a plan
amendment.

Net interest is calculated by applying
the discount rate at the beginning of the
period to the net defined benefit liability
or asset.

Remeasurement, comprising actuarial
gains and losses, the effect of the
changes to the asset ceiling (if applicable)
and the return on plan assets (excluding
net interest), is reflected immediately in
the balance sheet with a charge or credit
recognised in other comprehensive
income in the period in which they occur.
Remeasurement recognised in other
comprehensive income is reflected
immediately in retained earnings and is
not reclassified to profit or loss.

Curtailment gains and losses are
accounted for as past service costs. The
retirement benefit obligation recognised
in the balance sheet represents
the actual deficit or surplus in the
Company’s defined benefit plans. Any
surplus resulting from this calculation
is limited to the present value of any
economic benefits available in the form
of refunds from the plans or reductions
in future contributions to the plans.

Contributions paid/payable to defined
contribution plans comprising of
Superannuation (under a scheme of
Life Insurance Corporation of India) and
Provident Funds for certain employees
covered under the respective Schemes
are recognised in the Statement of Profit
and Loss each year.

A liability for a termination benefit is
recognised at the earlier of when the
entity can no longer withdraw the offer
of the termination benefit and when
the entity recognises any related
restructuring costs.

Gratuity for employees is covered under
a Scheme of Life Insurance Corporation
of India (LIC) and contributions in
respect of such scheme are recognised
in the Statement of Profit and Loss. The
liability as at the Balance Sheet date

is provided for based on the actuarial
valuation carried out as at the end of the
year.

10) Taxes on income

Tax expense comprises of current and
deferred taxes.

Current tax:

The current tax payable is based on the
taxable profit for the year. Taxable profit
differs from Profit before tax as reported in the
statement of profit and loss account because
of items of income or expenditure that are
taxable or deductible in other years and
items that are never taxable or deductible.
Company computes current tax using tax
rate that have been enacted by the end of the
reporting period.

Deferred Tax:

Deferred tax is recognised on temporary
differences between the carrying amounts
of assets and liabilities in the financial
statements and the corresponding tax
bases used in the computation of taxable
profit. Deferred tax liabilities are generally
recognised for all taxable temporary
differences. Deferred tax assets are generally
recognised for all deductible temporary
differences to the extent that it is probable
that taxable profits will be available against
which those deductible temporary differences
can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary
difference arises from the initial recognition
(other than in a business combination) of
assets and liabilities in a transaction that
affects neither the taxable profit nor the
accounting profit.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period
and reduced to the extent that it is no longer
probable that sufficient taxable profits will be
available to allow all or part of the asset to be
recovered.

Deferred tax liabilities and assets are
measured at the tax rates that are expected
to apply in the period in which the liability is
settled or the asset realised, based on tax
rates (and tax laws) that have been enacted
or substantively enacted by the end of the
reporting period.

The measurement of deferred tax liabilities
and assets reflects the tax consequences
that would follow from the manner in which
the Company expects, at the end of the
reporting period, to recover or settle the
carrying amount of its assets and liabilities.

Current and deferred tax for the year:

Current and deferred tax are recognised
in profit or loss account, except when they
relate to items that are recognised in other
comprehensive income or directly in equity
respectively

---

Mar 31, 2024

1. NOTES FORMING PART OF THE FINANCIAL

STATEMENTS

a) Brief description of the Company

TVS Electronics Limited (‘the Company’) is a public limited company incorporated and domiciled in India whose shares are publicly traded. The registered office is located at Greenways Towers, 2nd Floor, No.119, St. Mary’s Road, Abhiramapuram, Chennai - 600 018 The Company manufactures and sells Point of sale devices, Printers, Keyboards, etc. besides providing service for various Original Equipment Manufacturers via delivery models like exclusive service centers, multi brand service centers, Onsite support, repair centers and factories.

b) Material Accounting Policies

1) Basis of preparation

The financial statements have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015. The Ind AS are prescribed under Section 133 of the Companies Act, 2013 (“the Act”) read with Rule 3 of Companies (Indian Accounting Standards) Rules, 2015 and relevant amendments and rules issued thereafter. The Financial Statements are presented in Indian Rupees (?) and all values are rounded to the nearest lakhs ('' 00,000),except when otherwise indicated.

2) Basis of measurement

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants

would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

The principal accounting policies are set out below.

3) Critical accounting judgements, key sources of estimation uncertainty and applicability of new accounting standards

a) Use of estimates

The preparation of financial statements in conformity with Ind AS requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. The management believes that these estimates and assumptions are reasonable and prudent. However, future results could differ from these estimates and the differences between actual results and estimates are recognised in the period

in which results are known/materialised.

Estimates and underlying assumptions are reviewed on an ongoing basis and any revision to accounting estimates is recognised prospectively in the current and future period.

This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in the relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

b) Significant Estimates and judgements

The areas involving critical estimates or judgments are:

i) Fair valuation measurement & valuation process

Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs used in determining the fair value of various assets, liabilities and share based payments are disclosed in the notes to the financial statements.

ii) Actuarial Valuation

The determination of Company’s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements.

iii) Useful life of Property, Plant and Equipment & Intangible assets As described in the material accounting policies, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

iv) Revenue Recognition

- The Company’s contracts with customers could include promises to render multiple services to a customer. The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligation involves Judgement to determine the deliverables and the ability of the customer to benefit independently from such deliverables.

- Judgement is also applied to determine the principal and agent in the contracts with customers based on the substance of the arrangement read with the guidance provided in the standard.

- The Company uses judgement to determine standalone selling price of a performance obligation. The Company allocates the transaction price to each performance obligation on the basis of the relative standalone selling price of each distinct product or service promised in the contract. Where standalone selling price is not observable, the Company uses the expected cost plus margin approach to allocate the transaction price to each distinct performance obligation.

- The Company exercises judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time.

v) Impairment of Financial and NonFinancial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash Generating Units (CGU’s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or a group of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The impairment provisions for Financial Assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Group’s past history, existing market conditions as well as forward-looking estimates at the end of each reporting period. In case of non-financial assets Company estimates asset’s recoverable amount, which is higher of an asset’s or Cash Generating Units (CGU’s) fair value less costs of disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate valuation model is used.

4) Revenue Recognition

The Company earns revenue primarily from sale of electronic goods, computer consumable and other support services. Revenue is measured at the fair value of the consideration received or receivable and net of returns, allowances and rebates and goods and services tax.

“Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services. When there is uncertainty on ultimate collectability, revenue recognition is postponed until such uncertainty is resolved. The amount of revenue recognised depends on whether we act as an agent or as a principal. Certain arrangements with our clients are such that our responsibility is to arrange for a third party to provide a specified good or service to the client. In these cases we are acting as an agent as we do not control the relevant good or service before it is transferred to the client. When we act as an agent, the revenue recorded is the net amount retained. The Company acts as principal when we control the specified good or service prior to transfer. When the Company acts as a principal, the revenue recorded is the gross amount billed.

In- Warranty Service

In respect of In-warranty service contracts, where performance obligation is satisfied at a point of time when the service is extended to the customer on behalf of the brand, revenue is recognised net of payments made to the brand after considering the rights and obligation of both the Company and the brand in specific to these contracts.

Out of Warranty Service

In respect of Out of warranty service contracts, where performance obligation is satisfied at a point of time when the control of the goods sold is passed on to the customer and the service is received by the customer as per the terms and conditions stipulated by the brand, revenue is recognised net of payments made to the brand after considering the rights and obligation of both the Company and the brand in specific to these contracts.

Service Contracts

In respect of service contracts, where performance obligation is satisfied over the period of time when the service is received by the customer as per the terms and conditions stipulated by the brand, transaction price which is the amount charged to customer is recognised on a time proportion basis over the period of time when the customer receives and accepts the service.

Sale of Goods

In respect of Sale of goods, where performance obligation is satisfied at a point of time when the control of the goods sold is passed on to the customer, revenue is recognised for the transaction price which is the invoice value charged to the customer.

Sale of Goods- Institutions In respect of contracts with institutional customer where goods are sold with additional warranty period, performance obligation is satisfied at a point of time when the control of the goods sold is passed on to the customer for sale of goods and for the extended warranty service performance obligation is satisfied over the period of time when that particular service is received by the customer.

Both sale of goods and extended warranty service qualify to be separate performance obligation within the definition of the standard and the transaction price is allocated between the performance obligations proportionate to the standalone selling prices of the components.

In respect of sale of goods, revenue is recognised at the point in time when the control is transferred for the value allocated and in respect of extended warranty service revenue is recognised on a time proportion basis over the period of time when the customer receives and accepts the service. Extended Warranty Service

In respect of extended warranty service contracts, where performance obligation is satisfied over the period of time at the transaction price which is the amount charged to customer is recognised on a time proportion basis over the period of time when the customer receives and accepts the service.

5) Property, Plant and Equipment

Land and building held for use in the production or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses. Free hold land is not depreciated.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company’s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

The estimate useful life adopted by the Company are as follows:

Asset	Useful life
Building	1 to 30 Years
Plant & Machinery	1 to 15 Years
Furniture & Fittings	1 to 10 Years
Office Equipments (including computers & servers)	1 to 6 Years
Vehicles	1 to 10 Years
Leasehold improvements	over primary period of lease

Based on technical evaluation, the Management believes that the useful lives, as given above, best represent the period over which the Management expects to use

these assets. Hence, the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

Capital work-in-progress: Projects under which plant, property and equipment are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

6) Intangible assets

a. Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straightline basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

b. Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.

c. Useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

Intangible asset	Useful life
Computer softwares	2 years
Business Rights	Indefinite

7) Impairment of Tangible and Intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are 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 asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cashgenerating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced

to its recoverable amount. An impairment loss is recognised immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

8) Inventories

Inventories are stated at lower of cost or net realisable value. The cost is calculated on weighted average method. Cost comprises expenditure incurred in normal course of business in brining such inventory to its present location and condition and includes where applicable, appropriate overheads based on the normal level of activity.

Net realisable value is the estimated selling price less estimated cost for completion of sale.

Obsolete, slow moving and defective inventories are identified from time to time and where necessary, a provision is made for such inventories.

9) Employee benefits

(i) Short term Employee Benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered.

Liabilities recognised in respect of shortterm employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

(ii) Retirement benefit costs and termination benefits

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period.

Defined benefit costs are categorised as follows:

• Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

• net interest expense or income; and

• Remeasurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item ‘Employee benefits expense’.

Past service cost is recognised in profit or loss in the period of a plan amendment.

Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss.

Curtailment gains and losses are accounted for as past service costs. The

retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

Contributions paid/payable to defined contribution plans comprising of Superannuation (under a scheme of Life Insurance Corporation of India) and Provident Funds for certain employees covered under the respective Schemes are recognised in the Statement of Profit and Loss each year.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

Gratuity for employees is covered under a Scheme of Life Insurance Corporation of India (LIC) and contributions in respect of such scheme are recognised in the Statement of Profit and Loss. The liability as at the Balance Sheet date is provided for based on the actuarial valuation carried out as at the end of the year.

10) Taxes on income

Tax expense comprises of current and deferred taxes.

Current tax:

The current tax payable is based on the taxable profit for the year. Taxable profit differs from Profit before tax as reported in the statement of profit and loss account because of items of income or expenditure that are taxable or deductible in other years and items that are never taxable or deductible. Company computes current tax using tax rate that have been enacted by the end of the reporting period.

Deferred Tax:

Deferred tax is recognised on temporary differences between the carrying amounts

of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year:

Current and deferred tax are recognised in profit or loss account, except when they relate to items that are recognised in other comprehensive income or directly in equity respectively

11) Provisions and contingent liabilities (i) Provision:

A provision is recorded when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to

settle the obligation and the amount can be reasonably estimated.

The amount recognised as provision is the best estimate of the consideration required to settle the present obligation at the end of reporting period, taking into account the risks and uncertainities surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is present value of those cash flows(when the effect of time value of money is material)

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a 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.

Provision for expected cost of warranty obligations under the local sale of goods legislation are recognised at the date of sale of relevant products, at management’s best estimate of expenditure required to settle the Company’s obligation.

(ii) Contingent liabilities:

Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because

(a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(b) the amount of the obligation cannot be measured with sufficient reliability.

(iii) Warranties

The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future

incidence on corrective actions on product failures. The timing of outflows will vary as and when warranty claim will arise, being typically upto three years. Expected recoveries towards warranty cost from the vendors are estimated and accounted for by the management in the year in which the related provision for warranty is created and it is certain that such recoveries will be received if the Company incurs the warranty cost. The estimates used for accounting for warranty liability/recoveries are reviewed periodically and revisions are made, as required.

(iv) E-Waste

Environment Liabilities E-Waste (Management) Rules, 2016, as amended, requires the Company to complete the Extended Producer Responsibility targets measured based on sales made in the preceding years, if it is a participant in the market during a financial year. Accordingly, the obligation event for e-waste obligation arises only if the Company participate in the markets in those years.

12) Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Corporate Management Committee.

Segments are organised based on business which have similar economic characteristics as well as exhibit similarities in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods.

Unallocated Corporate Expenses” include revenue and expenses that relate to initiatives/ costs attributable to the enterprise as a whole and are not attributable to segments.

13) Leases

The leases are recognised as a right-of-use asset with a corresponding lease liability at the date on which the leased asset is

available for use by the Company as a lessee except for payments associated with short term leases (lease term of 12 months or less) and low value leases, which are recognised as an expense as and when incurred.

The Company assesses whether a contract contains a lease at the inception of a contract. Certain lease contracts include the options to extend or terminate the lease before the end of the lease term. Right-of-Use assets and lease liabilities include these options when it is reasonably certain that they will be exercised.

The Right-of-Use assets are initially recognised at cost comprising initial lease liability adjusted for lease payments made on or before the commencement date less any lease incentives received and any initial direct cost. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. Lease liabilities are re-measured with a corresponding adjustment to the related Right-of-Use assets if the Company changes its assessment as to whether it will exercise an extension or a termination option.

Right-of-Use assets are depreciated on a straight-line basis over the shorter of the lease term and the useful life of the asset Right-of use assets and lease liability have been separately presented in the balance sheet and lease payments have been classified as financing cash flow in the cash flow statement.

14) Financial instruments

Financial assets and financial liabilities are recognised when a company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and

financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

14.1 Financial assets

Initial recognition and measurement:

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis.

Subsequent measurement:

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets

a. Classification of financial assets Debt instruments that meet the following conditions are subsequently measured at amortised cost (except for debt instruments that are designated as at fair value through profit or loss on initial recognition):

• the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

• the contractual terms of the

instrument give rise on specified dates to cash flows that are

solely payments of principal and

interest on the principal amount outstanding.

Investment in subsidiaries / associates are accounted at cost.

All other financial assets are subsequently measured at fair value. For the impairment policy on financial assets measured at amortised cost,

refer Note 1(b)(14)(d)

b. I nvestment in equity instruments at FVTOCI

A financial asset is subsequently measured at fair value through other

comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Company has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.

The Company has equity investments in entities which are neither held for trading nor a subsidiary or associate to the Company. The Company has elected FVTOCI irrevocable option for these investments. Fair value is determined in the manner described in note 1(b) (2).

A financial asset is held for trading if :

> it has been acquired principally for the purpose of selling it in near term; or

> on initial recognition it is part of portfolio of identified financial instrument that the Company manages together and has recent actual pattern of short term profit making or

> it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.

Dividends on these investment in equity instrument, if any will be recognised in profit or loss when the Company’s right to receive the dividend is established, it is probable that economic benefit associated with the dividend will flow to the entity, the dividend does not represent a recover of part of cost of investment and the amount of dividend can be measured reliably.

c. Financial assets at fair value through profit or loss (FVTPL)

Financial assets that do not meet the amortised cost criteria or Fair value through other comprehensive income (FVTOCI) criteria are measured at FVTPL Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the “Other income” line item.

d. Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument through the expected life of that financial instrument.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information or case to case basis.

e. Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset.

f. Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.

For foreign currency denominated financial assets measured at amortised cost and FVTPL, the exchange differences are recognised in profit or loss.

14.2 Financial liabilities and equity

instruments

a. Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

b. Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a company entity are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

c. Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

c.1. Financial liabilities at FVTPL

Financial liabilities are recognised at fair value through profit or loss (FVTPL) if it includes derivative liabilities.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘Other income’ line item.

Fair value is determined in the manner described in note 1(b)(2)

c.2. Financial liabilities measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

T rade and other payables are recognised at the transaction cost, which is its fair value, and subsequently measured at amortised cost.

c.3. Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments and are recognised in ‘Other income’.

The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognised in profit or loss.

c.4. Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. An exchange between a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

14.3 Derivative financial instruments

The Company enters into forward contracts to manage its exposure to foreign exchange rate risks.

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately.

15. Foreign Currency Transactions

The functional and presentation currency of the Company is Indian Rupee.

In preparing the financial statements of the Company, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated

in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated

16 Operating cycle for current and noncurrent classification

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in

cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

17 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

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Mar 31, 2023

b) Significant Accounting Policies

1) Statement of compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015. The Ind AS are prescribed under Section 133 of the Companies Act, 2013 (“the Act”) read with Rule 3 of Companies (Indian Accounting Standards) Rules, 2015 and relevant amendments and rules issued thereafter. The Financial Statements are presented in Indian Rupees (?) and all values are rounded to the nearest lakhs ('' 00,000),except when otherwise indicated.

2) Basis of preparation and presentation

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into

account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

The principal accounting policies are set out below.

3) Critical accounting judgements, key sources of estimation uncertainity and applicability of new accounting standards

a) Use of estimates

The preparation of financial statements in conformity with Ind AS requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. The management believes that these estimates and assumptions are reasonable and prudent. However, future results could differ from these estimates and the differences between actual results and estimates are recognised in the period in which results are known / materialised. Estimates and underlying assumptions are reviewed on an ongoing basis and

any revision to accounting estimates is recognised prospectively in the current and future period.

This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in the relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

b) Significant Estimates and Judgements

The areas involving critical estimates or judgments are:

i) Fair valuation measurement & valuation process

Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs used in determining the fair value of various assets, liabilities and share based payments are disclosed in the notes to the financial statements.

ii) Actuarial Valuation

The determination of Company’s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements.

iii) Useful life of Property, Plant and Equipment & Intangible assets

As described in the significant accounting policies, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

iv) Revenue Recognition

- The Company’s contracts with customers could include promises to render multiple services to a customer. The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligation involves Judgement to determine the deliverables and the ability of the customer to benefit independently from such deliverables.

- Judgement is also applied to determine the principal and agent in the contracts with customers based on the substance of the arrangement read with the guidance provided in the standard.

- The Company uses judgement to determine standalone selling price of a performance obligation. The Company allocates the transaction price to each performance obligation on the basis of the relative standalone selling price of each distinct product or service promised in the contract. Where standalone selling price is not observable, the Company uses the expected cost plus margin approach to allocate the transaction price to each distinct performance obligation.

- The Company exercises judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time.

v) Impairment of Financial and NonFinancial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired.

If any indication exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash Generating Units (CGU’s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or a group of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment provisions for Financial Assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Group’s past history, existing market conditions as well as forwardlooking estimates at the end of each reporting period.

In case of non-financial assets Company estimates asset’s recoverable amount, which is higher of an asset’s or Cash Generating Units (CGU’s) fair value less costs of disposal and its value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

I n determining fair value less costs of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate valuation model is used.

c) Standard Issue but not effective

On March 23, 2022 the Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Amendment Rules 2022. The notification has resulted into amendments in the following existing accounting standards which are applicable from April 01,2022.

i. I nd AS 101 - First time adoption of Ind AS

ii. Ind AS 103 Business Combination

iii. Ind AS 109 Financial Instrument

iv. Ind AS 16 - Property , Plant and Equipment

v. Ind AS 37, Provisions , Contingent Liabilities and Contingent assets

vi. Ind AS 41 Agriculture

The Company is evaluating the impact of the above on its financial statements.

4) Revenue Recognition

The Company earns revenue primarily from sale of electronic goods, computer consumable and other support services. Revenue is measured at the fair value of the consideration received or receivable and net of returns, allowances and rebates and goods and services tax.

Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services. When there is uncertainty on ultimate collectability, revenue recognition is postponed until such uncertainty is resolved. The amount of revenue recognised depends on whether we act as an agent or as a principal. Certain arrangements with our clients are such that our responsibility is to arrange for a third party to provide a specified good or service to the client. In these cases we are acting as an agent as we do not control the relevant good or service before it is transferred to the client. When we act as an agent, the revenue recorded is the net amount retained. The Company acts as principal when we control the specified good or service prior to transfer. When the Company acts as a principal, the revenue recorded is the gross amount billed.

In- Warranty Service

I n respect of In-warranty service contracts, where performance obligation is satisfied at a point of time when the service is extended to the customer on behalf of the brand, revenue is recognised net of payments made to the brand after considering the rights and obligation of both the Company and the brand in specific to these contracts.

Out of Warranty Service In respect of Out of warranty service contracts, where performance obligation is satisfied at a point of time when the control of the goods sold is passed on to the customer and the service is received by the customer as per the terms and conditions stipulated by the brand, revenue is recognised net of payments made to the brand after considering the rights and obligation of both the Company and the brand in specific to these contracts Service Contracts

In respect of service contracts, where performance obligation is satisfied over the period of time when the the service is received by the customer as per the terms and conditions stipulated by the brand, transaction price which is the amount charged to customer is recognised on a time proprotion basis over the period of time when the customer receives and accpets the service.

Sale of Goods

In respect of Sale of goods, where performance obligation is satisfied at a point of time when the control of the goods sold is passed on to the customer, revenue is recognised for the transaction price which is the invoice value charged to the customer. Sale of Goods- Institutions In respect of contracts with institutional customer where goods are sold with additional warranty period, performance obligation is satisfied at a point of time when the control of the goods sold is passed on to the customer for sale of goods and for the extended warranty service performance obligation is satisfied over the period of time when that particular service is received by the customer.

Both sale of goods and extended warranty service qualify to be seperate performance obligation within the definition of the standard and the transaction price is allocated between the performance obligations proportionate to the standalone selling prices of the components.

In respect of sale of goods, revenue is recognised at the point in time when the control is transferred for the value allocated and in respect of extended warranty service

revenue is recognised on a time proprotion basis over the period of time when the customer receives and accpets the service. Extended Warranty Service

In respect of extended warranty service contracts, where performance obligation is satisfied over the period of time at the transaction price which is the amount charged to customer is recognised on a time proprotion basis over the period of time when the customer receives and accpets the service.

>) Property, Plant and Equipment

Land and building held for use in the production or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses. Free hold land is not depreciated.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company’s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

The estimate useful life adopted by the Company are as follows:

Based on technical evaluation, the Management believes that the useful lives, as given above, best represent the period over which the Management expects to use these assets. Hence, the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

Capital work-in-progress: Projects under which plant, property and equipment are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

6) Intangible Assets

a. Intangible assets acquired separately Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straightline basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

b. Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic

benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.

c. Useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

7) Impairment of Tangible and Intangible Assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are 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 asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cashgenerating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

8) Inventories

Inventories are stated at lower of cost or net realisable value. The cost is calculated on weighted average method. Cost comprises expenditure incurred in normal course of business in bringing such inventory to its present location, condition and includes where applicable, appropriate overheads based on the normal level of activity.

Net realisable value is the estimated selling price less estimated cost for completion of sale.

Obsolete, slow moving and defective inventories are identified from time to time and where necessary, a provision is made for such inventories.

9) Employee Benefits

(i) Short term Employee Benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered.

Liabilities recognised in respect of shortterm employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

(ii) Retirement benefit costs and termination benefits

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period.

Defined benefit costs are categorised as follows:

• Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

• Net interest expense or income; and

• Remeasurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item ‘Employee benefits expense’.

Past service cost is recognised in profit or loss in the period of a plan amendment.

Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss.

Curtailment gains and losses are accounted for as past service costs. The retirement benefit obligation recognised in the balance sheet represents

the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

Contributions paid/payable to defined contribution plans comprising of Superannuation (under a scheme of Life Insurance Corporation of India) and Provident Funds for certain employees covered under the respective Schemes are recognised in the Statement of Profit and Loss each year.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

Gratuity for employees is covered under a Scheme of Life Insurance Corporation of India (LIC) and contributions in respect of such scheme are recognised in the Statement of Profit and Loss. The liability as at the Balance Sheet date is provided for based on the actuarial valuation carried out as at the end of the year.

10) Taxes on Income

Tax expense comprises of current and deferred taxes.

Current Tax:

The current tax payable is based on the taxable profit for the year. Taxable profit differs from Profit before tax as reproted in the statement of profit and loss account because of items of income or expenditure that are taxable or deductable in other years and items that are never taxable or deductable. Company computes current tax using tax rate that have been enacted by the end of the reporting period.

Deferred Tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable

profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year:

Current and deferred tax are recognised in profit or loss account, except when they relate to items that are recognised in other comprehensive income or directly in equity respectively

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Mar 31, 2018

a) SIGNIFICANT ACCOUNTING POLICIES

1) Statement of compliance

The financial statements have been prepared in accordance with Ind ASs notified under the Companies (Indian Accounting Standards) Rules, 2015. Up to the year ended March 31, 2017, the company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the Company’s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer Note 1.20 for the details of first-time adoption exemptions availed by the Company.

2) Basis of preparation and presentation

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.”Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability.

The principal accounting policies are set out below.

3) Critical accounting judgements and key sources of estimation and certainity

a) Use of estimates

The preparation of financial statements in conformity with Ind AS requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. The management believes that these estimates and assumptions are reasonable and prudent. However, future results could differ from these estimates and the differences between actual results and estimates are recognised in the period in which results are known / materialised.

Estimates and underlying assumptions are reviewed on an ongoing basis and any revision to accounting estimates is recognised prospectively in the current and future period.

This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in the relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

b) Significant Estimates and judgements

The areas involving critical estimates or judgments are:

i) Fair valuation measurement & valuation process

Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs used in determining the fair value of various assets, liabilities and share based payments are disclosed in the notes to the financial statements.

ii) Actuarial Valuation

The determination of Company’s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements.

iii) Useful life of Property, Plant and Equipment & Intangible assets

As described in the significant accounting policies, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

c) Control over Benani Foods Private Limited

Benani Foods Private Limited is considered as a subsidiary of the Company, even though the company has only a 41% ownership (March 2017 - 34%; March 2016 - 30%) interest. The directors of the Company assessed whether the Company has control over Benani Foods Private Limited based on whether the Company has the practical ability to direct the relavant activities of Benani Foods Private Limited. In making the judgement, the directors considered the Company’s absolute size of holding in Benani Foods Private Limited and other relative size of and dispersion of the share holdings owned by the other shareholders. After assessment, the directors concluded that the Company has a sufficiently dominant voting interest to direct the relevant activities of Benani Foods Private Limited and therefore the Company has Control over Benani Foods Private Limited.

4) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates and goods and service tax.

i. Sale of Products

Revenue from sale of products is recognised, when significant risks and rewards of ownership pass to the dealer / customer, as per terms of contract and it is probable that the economic benefits associated with the transaction will flow to the Company. Revenue from Distribution services is recognised on delivery of goods to customers.

ii. Rendering of services

Revenue from Services is recognised in the accounting period in which the services are rendered.

iii. Dividend & Interest income

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established (Provided it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably)

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assets net carrying amount on initial recognition.

5) Property, Plant and Equipment

Land and building held for use in the production or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses. Free hold land is not depreciated.”“Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the Company’s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

The estimate useful life adopted by the company are as follows:

Capital work-in-progress: Projects under which plant, property and equipment are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

For transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

6) Intangible assets

a. Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

b. Derecognition of intangible assets

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognized.

c. Useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

For transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets recognised as of 1^st April, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

7) Impairment of Tangible and Intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are 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 asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.”When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

8) Inventories

Inventories are stated at lower of cost or net realisable value. The cost is calculated on weighted average method. Cost comprises expenditure incurred in normal course of business in brining such inventory to its present location and condition and includes where applicable, appropriate overheads based on the normal level of activity.

Net realisable value is the estimated selling price less estimated cost for completion of sale.

Obsolete, slow moving and defective inventories are identified from time to time and where necessary, a provision is made for such inventories.

9) Employee benefits

(i) Short term Employee Benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered.

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

(ii) Retirement benefit costs and termination benefits

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period.

Defined benefit costs are categorized as follows:

- Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

- net interest expense or income; and

- Remeasurement

The company presents the first two components of defined benefit costs in profit or loss in the line item ‘Employee benefits expense’.

Past service cost is recognised in profit or loss in the period of a plan amendment.

Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Curtailment gains and losses are accounted for as past service costs. The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

Contributions paid/payable to defined contribution plans comprising of Superannuation (under a scheme of Life Insurance Corporation of India) and Provident Funds for certain employees covered under the respective Schemes are recognised in the Statement of Profit and Loss each year.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.

Gratuity for employees is covered under a Scheme of Life Insurance Corporation of India (LIC) and contributions in respect of such scheme are recognized in the Statement of Profit and Loss. The liability as at the Balance Sheet date is provided for based on the actuarial valuation carried out as at the end of the year.

10) Taxes on income

Tax expense comprises of current and deferred taxes.

Current tax:

The current tax payable is based on the taxable profit for the year. Taxable profit differs from Profit before tax as reported in the statement of profit and loss account because of items of income or expenditure that are taxable or deductible in other years and items that are never taxable or deductible. Company computes current tax using tax rate that have been enacted by the end of the reporting period.

Deferred Tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year:

Current and deferred tax are recognised in profit or loss account, except when they relate to items that are recognised in other comprehensive income or directly in equity respectively

11) Provisions and contingent liabilities

(i) Provision:

A provision is recorded when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.

The amount recognised as provision is the best estimate of the consideration required to settle the present obligation at the end of reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is present value of those cash flows(when the effect of time value of money is material)

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a 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.

Provision for expected cost of warranty obligations under the local sale of goods legislation are recognised at the date of sale of relevant products, at management’s best estimate of expenditure required to settle the company’s obligation.

(ii) Contingent liabilities:

Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because

(a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(b) the amount of the obligation cannot be measured with sufficient reliability.

12) Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmaker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Corporate Management Committee.

Segments are organised based on business which have similar economic characteristics as well as exhibit similarities in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods.

‘‘Unallocated Corporate Expenses” include revenue and expenses that relate to initiatives/costs attributable to the enterprise as a whole and are not attributable to segments.

13) Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Company as a Lessee

Assets used under finance leases are recognised as property, plant and equipment in the Balance Sheet for an amount that corresponds to the lower of fair value and the present value of minimum lease payments determined at the inception of the lease and a liability is recognised for an equivalent amount.

The minimum lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the Statement of Profit and Loss.

Rentals payable under operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the term of the relevant lease unless the payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases.

14) Share-based payment arrangements

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in note 33.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.”Under the previous GAAP, share based payment costs were accrued on a intrinsic value method. Upon transition to Ind AS, the company has availed the exemption to apply the fair value to only unvested options.

15) Financial instruments

Financial assets and financial liabilities are recognised when a company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

15.1 Financial assets

Initial recognition and measurement:

All regular way purchases or sales of financial assets are recognised and derecognized on a trade date basis. Subsequent measurement:

All recognised financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.

a. Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortized cost (except for debt instruments that are designated as at fair value through profit or loss on initial recognition):

- the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

- the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Investment in subsidiaries / associates are accounted at cost.

All other financial assets are subsequently measured at fair value.

For the impairment policy on financial assets measured at amortized cost, refer Note 1(15)(d)

b. Investment in equity instruments at FVTOCI

On initial recognition, company can make an irrevocable election(on a instrument by instrument basis) to present the subsequent change in fair value in other comprehensive income pertaining to investment in equity instruments. This election is not permitted if the equity instrument is held for trading. These elected investment are initially measured at fair value plus transaction cost. Subsequently, they are measured at fair value with gains and losses arising from change in fair value recognised in other comprehensive income and accumlated in ‘Reserve for equity instruments through other comprehensive income’. The cumulative gain / (loss) is not reclassified to profit or loss on disposal of investment.

A financial asset is held for trading if :

- it has been acquired principally for the purpose of selling it in near term; or

- on initial recognition it is part of portfolio of identified financial instrument that the company manages together and has recent actual pattern of short term profit taking or

- it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.

The company has equity investments in one entity which are not held for trading nor a subsidiary. The company has elected FVTOCI irrevocable option for this investments. Fair value is determined in the manner described in note 1(b)(2).

Dividends on these investment in equity instrument, if any will be recognised in profit or loss when the company’s right to receive the dividend is established, it is probable that economic benefit associated with the dividend will flow to the entity, the dividend does not represent a recover of part of cost of investment and the amount of dividend can be measured reliably.

c. Financial assets at fair value through profit or loss (FVTPL)

Financial assets that do not meet the amortised cost criteria or Fair value through other comprehensive income (FVTOCI) criteria are measured at FVTPL

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the “Other income” line item.

d. Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument through the expected life of that financial instrument.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information or case to case basis.

e. Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset.

f. Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.

- For foreign currency denominated financial assets measured at amortised cost and FVTPL, the exchange differences are recognised in profit or loss.

15.2Financial liabilities and equity instruments

a. Classification as debt or equity

Debt and equity instruments issued by the company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

b. Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a company entity are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

c. Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

c.1. Financialliabilities at FVTPL

Financial liabilities are recognised at fair value through profit or loss (FVTPL) if it includes derivative liabilities. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘Other income’ line item.

Fair value is determined in the manner described in note 1(b)(2) c.2. Financial liabilities measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based on the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

Trade and other payables are recognised at the transaction cost, which is its fair value, and subsequently measured at amortised cost.

c.3. Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortized cost of the instruments and are recognised in ‘Other income’.

The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognised in profit or loss.

c.4. Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognised in profit or loss.

15.3Derivative financial instruments

The Company enters into forward contracts to manage its exposure to foreign exchange rate risks.

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately.

16) Foreign Currency Transactions

The functional and presentation currency of the company is Indian Rupee.

In preparing the financial statements of the company, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

17) Operating cycle for current and non-current classification

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

18) Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

19) Standards issued but not yet effective

i) Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.

ii) Ind AS 115, Revenue from Contract with Customers:

On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.

The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.

(iii) Standards yet to be notified: Ind AS 116 - “Leases”

On 18 July 2017, the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) issued an Exposure Draft (ED) of Ind AS 116, Leases. Ind AS 116 is largely converged with IFRS 16. When notified, Ind AS 116 will replace Ind AS 17 Leases.

Ind AS 116 sets out a comprehensive model for identification of lease arrangements and their treatment in the financial statements of the lessor and lessee. Ind AS 116 applies a control model for the identification of leases, distinguishing between leases and service contracts on the basis of whether there is an identified asset controlled by the customer. The Company is evaluating the requirement of the standard and the effect on the financial statements upon notification.

20) First-time adoption - mandatory exceptions, optional exemptions

a. Overall principle

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as detailed below.

b. Derecognition of financial assets and financial liabilities

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after April 1, 2016 (the transition date).”

c. Classification of debt instruments

The Company has determined the classification of debt instruments in terms of whether they meet the amortized cost criteria or the FVTOCI criteria based on the facts and circumstances that existed as of the transition date.

d. Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind ASs, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101. The Company has determined the classification of debt instruments in terms of whether they meet the amortized cost criteria or the FVTOCI criteria based on the facts and circumstances that existed as of the transition date.

e. Deemed cost for property, plant and equipment

The Company has elected to continue with the carrying value of all of its plant and equipment and investment property recognised as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

f. Determining whether an arrangement contains a lease

The Company has applied Appendix C of Ind AS 17 Determining whether an Arrangement contains a Lease to determine whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing at that date.

g. Equity investments at FVTOCI

The Company has designated investment in equity shares as at FVTOCI on the basis of facts and circumstances that existed at the transition date.

h. Unvested Employee Stock Options at Fair value

The Company has elected the option to account only unvested options at the transition date under fair value method.

i. Past business combinations

The Company has elected not to apply Ind AS 103 Business Combinations retrospectively to past business combinations that occurred before the transition date of April 1, 2016. Consequently,

- The Company has kept the same classification for the past business combinations as in its previous GAAP financial statements;

- The Company has not recognised assets and liabilities that were not recognised in accordance with previous GAAP in the balance sheet of the acquirer and would also not qualify for recognition in accordance with Ind AS in the separate balance sheet of the acquiree;

- The Company has excluded from its opening balance sheet those items recognised in accordance with previous GAAP that do not qualify for recognition as an asset or liability under Ind AS;

- The effects of the above adjustments have been given to the measurement of non-controlling interests and deferred tax.

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Mar 31, 2017

26 - Notes to Accounts

1 ACCOUNTING STANDARDS COMPLIANCE

The financial statements have been prepared in accordance with the norms and principles prescribed in the Accounting Standards issued by the Institute of Chartered Accountants of India which are itemized below :

As the net worth of the Company is less than Rs.500 Cr (net worth as on 31st March, 2014, Rs.35.51 Cr), the Company is required to comply with Ind AS for the accounting period beginning on or after 1st April, 2017 as per Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015.

AS - 1 Disclosure of accounting policies

The Company is following accrual basis of accounting on a going concern concept and the policies applied are consistent with those applied in the previous year.

AS - 2 Valuation of inventories

a Raw materials, components, stores and spares and other trading products are valued at cost determined on weighted average basis. Finished goods and traded goods are valued at the aggregate of material cost, applicable duties and overheads or net realizable value whichever is lower. b Excise Duty in respect of finished goods lying within the factory are included in the valuation of inventories.

c Goods-In-Transit, both Raw materials and Traded items sent by supplier on FOB basis are recognized based on Confirmation received from the Vendor regarding the dispatch of goods. Goods-in-Transit available at Bonded Warehouses are recognized based on Bond Statement / Confirmation from authorities.

d As per practice consistently followed, Customs Duty and Countervailing Duty payable on raw materials, components and finished goods lying in customs bonded warehouses is accounted for on deboning. Non-provision of this duty will not affect the profit for the year.

AS - 3 Cash Flow Statement

Cash Flow Statement has been prepared under “Indirect Method”.

AS - 4 Contingencies and Events occurring after the Balance Sheet date

The Board of Directors have recommended a dividend of fifty paise per equity share of face value of ''10 each for the financial year ended 31.03.2017. The dividend will be paid / dispatched to the shareholders within 30 days from the date of approval in the ensuing Annual General Meeting.

AS - 9 Revenue Recognition

a Income and Expenditure are accounted on a going concern basis.

b The Company’s income consists of

i) sale of manufactured equipments,

ii) traded goods

iii) after sales service

iv) warranty management & repair services

v) information technology (IT) related consultancy services

vi) e-auction services; and

vii) distribution services

c Sale is accounted net of Excise Duty, Service Tax and Sales Tax / Value Added Tax

i) Income from consultancy services and annual maintenance contracts are considered on accrual basis.

ii) Income from services is recognized after rendering services.

iii) Income from Information Technology solutions are recognized depending upon the stage of completion of the project. d Other income includes realised exchange fluctuation gain on Sale of products, Sale of services of Rs63.41 lakhs (Previous year Rs117.99 lakhs).

e Interest income is recognized on a time proportion basis taking into account the amount of outstanding and the rate applicable.

f In respect of domestic sale of manufactured and traded goods, income is recognized once the goods are delivered to the designated transporters of the customer or to transporters usually contracted by the Company. In respect of export sales income is recognized on the basis of “LET Export’ certificate issued by Customs Authorities. g As regards Income from distribution services, the income is recognized on delivery of goods to customers.

AS - 10 Property, Plant and Equipment

Fixed Assets are stated at cost of acquisition or construction cost net of CENVAT and includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation.

Depreciation has been provided on Straight Line Method on the basis of useful life of the assets as prescribed by Schedule II to the Companies Act, 2013.

During the year, cost of certain plant and equipment which were fully depreciated in earlier years and carried at NIL value in the books were removed with corresponding debit to accumulated depreciation reserve.

The useful life of the assets are arrived at by retaining 5% of the cost of asset as residual value except in the following where the residual value is arrived at on the basis of valuation. In respect of some unusable assets, depreciation has been accelerated and such unusable assets were written off retiming 5% of the cost. The accelerated depreciation so written off amounts to Rs. 93.12 Lakhs

On assets whose actual cost does not exceed Rs5,000 individually, depreciation has been provided at 100%.

Useful life of Tools & Moulds and Office Equipments are estimated at 3 years based on technical valuation.

In respect of Software, the useful life is estimated at 2 years.

Computers, Office Equipments, Furniture & Fixtures, Electrical Installations and Improvement to building taken on lease used in walk-in centre’s are depreciated over three years while the same category of assets in factory, branches, etc. are depreciated as per Schedule II of the Companies Act, 2013.

Component Accounting

Useful life of the whole asset and part of the asset :

In respect of all depreciable assets, it was ascertained that useful life of part of the asset is not significantly different from the “whole of assets”. Accordingly, measurement of depreciation is same for component asset and whole of the asset.

Lease hold land represents Rs,199.15 lakhs (Previous year Rs199.15 Lakhs) paid to State Industrial Promotion Corporation of Tamil Nadu Limited (SIPCOT), Chennai for 6.16 acres of land in their Oragadam Special Economic Zone (SEZ), Tamil Nadu. The lease period is 99 years and accordingly the cost is amortized effective 1st April 2013.

AS - 11 Effects of Changes in foreign exchange rates

a Purchase of imported raw materials, components, spare parts and capital goods are accounted based on retirement memos from banks. In respect of liabilities on import of raw materials, components, spare parts and capital goods which are in transit and where invoices / bills are yet to be received, the liability is accounted based on the market exchange rate prevailing on the date of the Balance Sheet.

b Yearend foreign currency denominated liabilities and receivables are translated at exchange rates prevailing as at Balance Sheet date, the difference being charged / credited to respective revenue or capital account. Any difference between the forward rate and the exchange rate on the date of inception of forward contract is recognized as discount or premium over the period of the contract.

c Other income includes realized exchange fluctuation gain on Sale of products, Sale of services of Rs63.41 lakhs (Previous year Rs117.99 lakhs).

d Derivative transactions :

The Company uses forward exchange contracts to hedge its exposure in foreign currency in respect of Imports of Inputs. a) Forward exchange contracts outstanding as at 31st March, 2017

The company has not availed any External Commercial Borrowings.

AS - 12 Government Grants

The Company has not received any Government grants during the year. Investment subsidy received from Karnataka Industrial Area Development Board (KIADB) for its Tumkur factory related investment in the year 1993-94 is now transferred to General Reserve after Statutory retention period.

AS - 13 Accounting for Investments

All Investments are long term investments and are stated at cost.

Cost of investments held in TVS Shriram Growth Fund, Chennai as on 31st March 2017 - Rs30.53 lakhs (3053.52 units at Face Value of Rs1,000/-). The market value (NAV) of these units is Rs1,015/- as on 31st March 2017, as per the account statement provided by the Investee.

Share of expenses apportioned by the investee, amounting to Rs4.2 Lakhs (419.64 units) has been debited to the Statement of Profit & Loss, based on account statement.

As on 31st March 2017, the balance number of units is 2634 amounting to Rs26.34 Lakhs.

AS - 14 Accounting for Amalgamation

This Standard is not applicable to the Company for the year under review.

AS - 15 Employee benefits

As per Accounting Standard 15 on “Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard are furnished below :

(a) Short term Employee Benefits

Short term employee benefits payable within twelve months of rendering the service including accumulated leave encashment, at the Balance Sheet date, are recognized as an expense as per the Company''s scheme based on expected obligations on undiscounted basis.

(b) Long term Employee Benefits

In case of long term compensated absences i.e. long term leave encashment, the same is provided for based on actuarial valuation as at the Balance Sheet date, using the Projected Unit Credit Method.

Post retirement benefits comprising of employees Provident Fund and Gratuity Fund are accounted for as follows :

(a) Provident Fund : This is a defined contribution plan and contributions paid to the Regional Provident Fund Commissioner, Tambaram, Chennai-600 045, are charged to revenue during the period. The Company has no further obligations for future provident fund benefits other than regular contributions.

(b) Gratuity : This is a defined benefit plan and the Company’s Scheme is administered by Trustees and funds managed by the Life Insurance Corporation of India (LIC). The liability for Gratuity to employees as at the Balance Sheet date is determined based on the actuarial valuation and on the basis of demand from Life Insurance Corporation of India. The contribution paid thereof is charged in the books of accounts.

AS - 16 Borrowing costs

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

AS - 17 Segment Reporting

The Company operates in two segments from 1st April, 2015 namely a) Information Technology related products and technical services and b) Distribution services. (Refer Note 26 (20)).

AS - 18 Related Party disclosure

Disclosure is made as prescribed by the Institute of Chartered Accountants of India. (Refer Note No. 26 (8)).

AS - 19 Accounting for Leases

This Standard is not applicable as the Company does not have any lease transaction during the year.

AS - 20 - Earnings Per Share

Earnings per share (Basic and Diluted) has been calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period and disclosed on the face of statement of Profit and Loss in accordance with the Standard.

AS - 26 Intangible Assets

The Company owns Intellectual Property Rights & Business Rights relating to its service business and the same is amortized over a period of ten years @ 9.5% per annum.

AS - 27 Financial Reporting of Interest in Joint Ventures

This Standard is not applicable to the Company for the year under review.

AS - 28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS - 29 Provisions, Contingent Liabilities and Contingent Assets

Warranty cost on sale of products has been determined based on management estimates / historical data and provided for - Rs525.89 Lakhs (Previous Year - Rs354.84 Lakhs).

Contingent liabilities are disclosed in Note No.4 and Contested liabilities are disclosed in Note No. 5.

Contingent assets are neither recognised nor disclosed.

AS - 30 Financial Instruments : Recognition and Measurement

This Standard is not applicable.

AS - 31 Financial Instruments: Presentation

This Standard is not applicable.

AS - 32 Financial Instruments : Disclosures

This Standard is not applicable.

7 Employee Stock Option Scheme 2011 (ESOP - 2011)

In accordance with Board resolution dated 23rd July, 2011 and Shareholders’ special resolution dated 21st September,

2011 the ESOP-2011 was instituted and following are the details

i) During the year, 60,000 options granted earlier to the then Managing Director of the Company on 6th May, 2015 have been allotted on 6th May 2016. ESOP reserve of Rs1.7 Lakhs has been created during the year. Cumulative ESOP Reserve in the books of Rs17.25 Lakhs has been transferred to Securities premium on allotment of shares.

ii) Further, 3,00,000 options has been granted on 14th October, 2015 to the Chief Operating Officer of the Company, redesignated as Chief Executive Officer effective 04th May 2016 and ESOP Reserve of Rs76.00 Lakhs has been created during the year (Cumulative provision created Rs111.39 Lakhs).

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Mar 31, 2016

1 ACCOUNTING STANDARDS COMPLIANCE

The financial statements have been prepared in accordance with the norms and principles prescribed in the Accounting Standards issued by the Institute of Chartered Accountants of India which are itemized below.

AS - 1 Disclosure of accounting policies

The Company is following accrual basis of accounting on a going concern concept and the policies applied are consistent with those applied in the previous year.

AS - 2 Valuation of inventories

a Raw materials, components, stores and spares and other trading products are valued at cost determined on weighted average basis. Finished goods and traded goods are valued at the aggregate of material cost, applicable duties and overheads or net realizable value whichever is lower.

b Excise Duty in respect of finished goods lying within the factory are included in the valuation of inventories.

c Goods-In-Transit, both Raw materials and Traded items sent by supplier on FOB basis are recognized based on Confirmation received from the Vendor regarding the dispatch of goods. Goods-in-Transit available at Bonded Warehouses are recognized based on Bond Statement / Confirmation from authorities.

d As per practice consistently followed, Customs Duty and Countervailing Duty payable on raw materials, components and finished goods lying in customs bonded warehouses is accounted for on deboning. Non-provision of this duty will not affect the profit for the year.

AS - 3 Cash Flow Statement

Cash Flow Statement has been prepared under “Indirect Method”.

AS - 4 Contingencies and Events occurring after the Balance Sheet date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the Company. Contested liabilities and outstanding bank guarantees are disclosed by way of a note.

AS - 9 Revenue Recognition

a Income and Expenditure are accounted on a going concern basis. b The Company''s income consists of income from;

i) sale of manufactured equipments,

ii) traded goods

iii) after sales service

iv) warranty management & repair services

v) information technology (IT) related consultancy services

vi) e-auction services

vii) distribution services

c Sale is accounted net of Excise Duty, Service Tax and Sales Tax / Value Added Tax.

i) Income from consultancy services and annual maintenance contracts are considered on accrual basis.

ii) Income from services is recognized after rendering services.

iii) Income from Information Technology solutions are recognized depending upon the stage of completion of the project. d Other income includes realized exchange fluctuation gain on Sale of products, Sale of services of Rs.117.99 lakhs (Previous years. 81.80 lakhs).

e Interest income is recognized on a time proportion basis taking into account the amount of outstanding and the rate applicable.

f Dividend Income will be recognized when the Company in which shares are held, declares the dividend and when the right to receive the same is established. g In respect of domestic sale of manufactured and traded goods, income is recognized once the goods are delivered to the designated transporters of the customer or to transporters usually contracted by the Company. In respect of export sales income is recognized on the basis of "LET Export" certificate issued by Customs Authorities. h As regards Income from distribution services, the income is recognized on delivery of goods to customers.

AS - 10 Property, Plant and Equipment

Fixed Assets are stated at cost of acquisition or construction cost net of CENVAT and includes expenditure incurred up to the date the asset is put to use, less accumulated depreciation.

Depreciation has been provided on Straight Line Method on the basis of useful life of the assets as prescribed by Schedule II to the Companies Act, 2013.

The useful life of the assets are arrived at by retaining 5% of the cost of asset as residual value except in the following where the residual value is arrived at on the basis of valuation:

On assets whose actual cost does not exceed Rs. 5,000 individually, depreciation has been provided at 100%.

Useful life of Tools & Moulds and Office Equipments are estimated at 3 years based on technical valuation.

In respect of Software, the useful life is estimated at 2 years.

Computers, Office Equipments, Furniture & Fixtures, Electrical Installations and Improvement to building taken on lease used in walk-in centres are depreciated over three years while the same category of assets in factory, branches, etc are depreciated as per Schedule II of the Companies Act, 2013.

Component Accounting

Useful life of the whole asset and part of the asset:

In respect of all depreciable assets, it was ascertained that useful life of part of the asset is not significantly different from the "whole of assets". Accordingly, measurement of depreciation is same for component asset and whole of the asset. Lease hold land represents Rs. 199.15 lakhs(Previous year Rs. 199.15 Lakhs) paid to State Industrial Promotion Corporation of Tamil Nadu Limited (SIPCOT), Chennai for 6.16 acres of land in their Oragadam Special Economic Zone (SEZ), Tamil Nadu. The lease period is 99 years and accordingly the cost is amortized effective 1st April 2013.

During the year, cost of certain plant and equipment which were fully depreciated in earlier years and carried at NIL value in the books were removed with corresponding debit to accumulated depreciation reserve.

AS - 11 Effects of Changes in foreign exchange rates

a Purchase of imported raw materials, components, spare parts and capital goods are accounted based on retirement memos from banks. In respect of liabilities on import of raw materials, components, spare parts and capital goods which are in transit and where invoices / bills are yet to be received, the liability is accounted based on the market exchange rate prevailing on the date of the Balance Sheet.

b Yearend foreign currency denominated liabilities and receivables are translated at exchange rates prevailing as at Balance Sheet date, the difference being charged/credited to respective revenue or capital account. Any difference between the forward rate and the exchange rate on the date of inception of forward contract is recognized as discount or premium over the period of the contract .

c Other income includes realized exchange fluctuation gain on Sale of products, Sale of services of Rs. 117.99 lakhs (Previous year '' 81.80 lakhs). d Derivative transactions :

The Company uses forward exchange contracts to hedge its exposure in foreign currency in respect of Imports of Inputs. a) Forward exchange contracts outstanding as at 31st March, 2016

AS - 12 Government Grants

The Company has not received any Government grants.

AS - 13 Accounting for Investments

All Investments are long term investments and are stated at cost.

Cost of investments held in TVS Shriram Growth Fund, Chennai as on 31st March 2016 - Rs.36.34 lakhs (3634.345 units). The market value (NAV) of these units is Rs.46.77 lakhs as on 31st December, 2015, as per the Account Statement provided by the Investee.

During the year, the company divested its entire shareholding of Rs.90.73 Lakhs held in Modular Infotech Private Ltd., Pune, forRs.280.16 Lakhs realising a gain of Rs.189.43 Lakhs, which has been reported as an exceptional income.

AS - 14 Accounting for Amalgamation

This Standard is not applicable to the Company for the year under review.

AS - 15 Employee benefits

As per Accounting Standard 15 on “Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard are furnished below :

(a) Short term Employee Benefits

Short term employee benefits payable within twelve months of rendering the service including accumulated leave encashment, at the Balance Sheet date, are recognized as an expense as per the Company''s scheme based on expected obligations on undiscounted basis.

(b) Long term Employee Benefits

In case of long term compensated absences i.e. long term leave encashment, the same is provided for based on actuarial valuation as at the Balance Sheet date, using the Projected Unit Credit Method.

Post retirement benefits comprising of employees Provident Fund and Gratuity Fund are accounted for as follows:

(a) Provident Fund : This is a defined contribution plan and contributions paid to the Regional Provident Fund Commissioner, Tambaram, Chennai-600045, are charged to revenue during the period. The Company has no further obligations for future provident fund benefits other than regular contributions.

(b) Gratuity : This is a defined benefit plan and the Company''s Scheme is administered by Trustees and funds managed by the Life Insurance Corporation of India(LIC). The liability for Gratuity to employees as at the Balance Sheet date is determined based on the actuarial valuation and on the basis of demand from Life Insurance Corporation of India. The contribution paid thereof is charged in the books of accounts.

AS - 16 Borrowing costs

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

AS - 17 Segment Reporting

The Company operates in two segments from 1st April, 2015 namely a) Information Technology related products and technical services and b) Distribution services. (Refer Note 26(20)).

AS - 18 Related Party disclosure

Disclosure is made as prescribed by the Institute of Chartered Accountants of India.

AS - 19 Accounting for Leases

This Standard is not applicable as the Company does not have any lease transaction during the year.

AS - 20 - Earnings Per Share

Earnings per share (Basic and Diluted) has been calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period and disclosed on the face of statement of Profit and Loss in accordance with the Standard.

AS - 26 Intangible Assets

The Company owns Intellectual Property Rights & Business Rights relating to its service business and the same is amortized over a period of ten years @ 9.5% per annum.

AS - 27 Financial Reporting of Interest in Joint Ventures

This Standard is not applicable to the Company for the year under review.

AS - 28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS - 29 Provisions, Contingent Liabilities and Contingent Assets

Warranty cost on sale of products has been determined based on management estimates/ historical data and provided for - Rs.354.84 Lakhs ( Previous Year - Rs.280.08 Lakhs)

Contingent liabilities are disclosed in Note No. 4 and Contested liabilities are disclosed in Note No. 5 Contingent assets are neither recognized nor disclosed.

AS - 30 Financial Instruments : Recognition and Measurement

This Standard is not applicable.

AS - 31 Financial Instruments: Presentation

This Standard is not applicable.

AS - 32 Financial Instruments : Disclosures

This Standard is not applicable.

---

Mar 31, 2015

1 ACCOUNTING STANDARDS COMPLIANCE

The financial statements have been prepared in accordance with the norms and principles prescribed in the Accounting Standards issued by the Institute of Chartered Accountants of India which are itemised below.

AS - 1 Disclosure of accounting policies

The Company is following accrual basis of accounting on a going concern concept and the policies applied are consistent with those applied in the previous year.

AS - 2 Valuation of inventories

a Raw materials,components, stores and spares and other trading products are valued at cost determined on weighted average basis. Finished goods and traded goods are valued at the aggregate of material cost and applicable direct and indirect overheads or net realisable value whichever is lower.

b Excise Duty in respect of finished goods lying within the factory are included in the valuation of inventories.

c Goods-In-Transit, both Raw materials and Traded items sent by supplier on FOB basis are recognized based on Confirmation received from the Vendor regarding the despatch of goods. Goods-in-Transit available at Bonded Warehouses are recognized based on Bond Statement / Confirmation from authorities.

d As per practice consistently followed, Customs Duty and Countervailing Duty payable on raw materials, components and finished goods lying in customs bonded warehouses is accounted for on debonding. Non-provision of this duty will not affect the profit for the year.

AS - 3 Cash Flow Statement

Cash Flow Statement has been prepared under "Indirect Method".

AS - 4 Contingencies and Events occurring after the Balance Sheet date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the Company. Contested liabilities and outstanding bank guarantees are disclosed by way of a note.

AS - 5 Net Profit or Loss for the year, prior period items and changes in accounting policies

Details of prior period items in the Statement of Profit and Loss :

as - 6 Depreciation Accounting

Depreciation has been provided on Straight Line Method on the basis of useful life of the assets as prescribed by Schedule II to the Companies Act, 2013.

i) Depreciation for the year is higher by Rs. 43.64 Lakhs on the implementation of the rates prescribed in Schedule II to the Companies Act, 2013.

ii) Based on the transitional provisions as per Note 7(b) of Schedule II, an amount of Rs. 122.52 Lakhs (net of Deferred Tax of Rs. 82.77 Lakhs) has been deducted from retained earnings, without retaining 5% residual value, pertaining to assets whose balance useful life as on 1st April, 2014 was NIL. The residual value of sucsh assets are NIL based on technical valuation.

iii) The useful life of the assets are arrived at by retaining 5% of the cost of asset as residual value except in the following where the residual value is arrived at on the basis of valuation :

a) On assets whose actual cost does not exceed Rs. 5,000 individually, depreciation has been provided at 100%.

b) In respect of Leasehold Land with a lease period of 99 years, depreciation has been amortised over the tenure of lease, effective 1st April, 2013.

c) Useful life of Tools & Moulds and Office Equipments are estimated at 3 years based on technical valuation.

d) In respect of Software, the useful life is estimated at 2 years.

e) Computers, Office Equipments, Furniture & Fixtures, Electrical Installations and Improvement to building taken on lease used in walk-in centres are depreciated over three years while the same category of assets in factory, branches, etc are depreciated as per Schedule II of the Companies Act, 2013.

AS - 7 Construction Contracts

This Accounting Standard is not applicable.

AS - 8 Research and Development

This Accounting Standard is withdrawn.

AS - 9 Revenue Recognition

a Income and Expenditure are accounted on a going concern basis.

b The Company's income consists of income from sale of manufactured equipments, traded goods, after sales service, warranty management & repair services, income from Information Technology (IT) related consultancy services and e-auction services.

c Sale is accounted net of Excise Duty, Service Tax and Sales Tax / Value Added Tax.

i) Income from consultancy services and annual maintenance contracts are considered on accrual basis.

ii) Income from services is recognised after rendering services.

iii) Income from InformationTechnology solutions are recognised depending upon the stage of completion of the project.

d Other income includes realised exchange fluctuation gain on Sale of products, Sale of services of Rs. 81.80 lakhs (Previous year Rs. 110.65 lakhs).

e Interest income is recognised on a time proportion basis taking into account the amount of outstanding and the rate applicable.

f Dividend Income is recognised when the Company in which shares are held, declares the dividend and when the right to receive the same is established.

g In respect of domestic sale of manufactured and traded items, the recognition is on the basis of delivery of goods to the designated transporters of the Customer, while in respect of export sales the recognition is on the basis of "LET Export" certificate issued by Customs Authorities

AS - 10 Fixed Assets

Fixed Assets are stated at cost of acquisition or construction cost net of CENVAT and includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation.

Technical know-how fees paid is capitalised under Plant and Equipment.

Temporary constructions / alteration costs are charged off in the same year.

Lease hold land represents Rs. 199.15 lakhs(Previous year Rs. 199.15 Lakhs) paid to State Industrial Promotion Corporation of Tamil Nadu Limited (SIPCOT), Chennai for 6.16 acres of land in their Oragadam Special Economic Zone( SEZ),Tamil Nadu. The lease period is 99 years and accordingly the cost is amortised effective 1st April 2013.

During the year, cost of certain office equipments which were fully depreciated in earlier years and carried at NIL value in the books were removed with corresponding debit to accumulated depreciation reserve.

AS - 11 Effects of Changes in foreign exchange rates

a Purchase of imported raw materials, components, spare parts and capital goods are accounted based on retirement memos from banks. In respect of liabilities on import of raw materials, components, spare parts and capital goods which are in transit and where invoices / bills are yet to be received, the liability is accounted based on the market exchange rate prevailing on the date of the Balance Sheet.

b Year end foreign currency denominated liabilities and receivables are translated at exchange rates prevailing as at Balance Sheet date, the difference being charged/credited to respective revenue or capital account . Any difference between the forward rate and the exchange rate on the date of inception of forward contract is recognised as discount or premium over the period of the contract.

c Other income includes realised exchange fluctuation gain on Sale of products, Sale of services of Rs. 81.80 lakhs (Previous year Rs. 110.65 lakhs).

d Derivative transactions :

The Company uses forward exchange contracts to hedge its exposure in foreign currency in respect of Imports of Inputs. a) Forward exchange contracts outstanding as at 31st March, 2015

The company has not availed any External Commercial Borrowings.

AS - 12 Government Grants

The Company has not received any Government grants.

AS - 13 Accounting for Investments

All Investments are long term investments and are stated at cost. Provision for diminution in value is made only if such a decline is other than temporary in the opinion of the Management.

Cost of investments held in TVS Shriram Growth Fund, Chennai as on 31st March 2015 - Rs. 38.66 lakhs (3866.18 units). The market value (NAV) of these units is Rs. 46.32 lakhs as on 31st December, 2014, as per Account Statement from Investee.

AS - 14 Accounting for Amalgamation

This Standard is not applicable to the Company for the year under review.

AS - 15 Employee benefits

As per Accounting Standard 15 on "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are furnished below :

(a) Short term Employee Benefits

Short term employee benefits payable within twelve months of rendering the service including accumulated leave encashment, at the Balance Sheet date, are recognised as an expense as per the Company's scheme based on expected obligations on undiscounted basis.

(b) Long term Employee Benefits

In case of long term compensated absences i.e. long term leave encashment, the same is provided for based on actuarial valuation as at the Balance Sheet date, using the Projected Unit Credit Method.

Post retirement benefits comprising of employees Provident Fund and Gratuity Fund are accounted for as follows :

(a) Provident Fund : This is a defined contribution plan and contributions paid to the Regional Provident Fund Commissioner, Tambaram, Chennai - 600 045, are charged to revenue during the period. The Company has no further obligations for future provident fund benefits other than regular contributions.

(b) Gratuity : This is a defined benefit plan and the Company's Scheme is administered by Trustees and funds managed by the Life Insurance Corporation of India (LIC). The liability for Gratuity to employees as at the Balance Sheet date is determined based on the actuarial valuation and on the basis of demand from Life Insurance Corporation of India.The contribution paid thereof is charged in the books of accounts.

AS - 16 Borrowing costs

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalised. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalised.

AS - 17 Segment Reporting

Since the group of products sold and services rendered by the Company pertains to Information Technology related products and services, the operations of the Company relate to a single reportable segment.

AS - 18 Related Party disclosure

Disclosure is made as prescribed by the Institute of Chartered Accountants of India.

AS - 19 Accounting for Leases

This Standard is not applicable as the Company does not have any lease transaction during the year.

AS - 20 - Earnings Per Share

Earnings per share (Basic and Diluted) has been calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period and disclosed on the face of statement of Profit and Loss in accordance with the Standard.

AS - 21 Consolidated Financial Statements

Consolidated Financial Statements of the Company and its wholly owned subsidiary, viz., Prime Property Holdings Limited, Chennai is enclosed.

AS - 22 Taxes on income

Income Tax payable under the normal computation of taxable income is NIL. However, tax is payable under the provisions of Section 115JB of the Income Tax Act, 1961, viz., Minimum Alternate Tax.

Deferred tax liability and asset are recognised based on timing differences using the tax rates substantively enacted on the Balance Sheet date.

AS - 23 Accounting for Investments in Associates in Consolidated Financial Statements

This Standard is not applicable to the Company for the year under review.

AS - 25 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of Listing Agreement with Stock Exchanges. The recognition and measurement principles as laid down in the Standard have been followed in the preparation of these results.

AS - 26 Intangible Assets

The Company owns Intellectual Property Rights & Business Rights relating to its service business and the same is amortised over a period of ten years @ 9.5% per annum.

AS - 27 Financial Reporting of Interest in Joint Ventures

This Standard is not applicable to the Company for the year under review.

AS - 28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS - 29 Provisions, Contingent Liabilities and Contingent Assets

Warranty cost on sale of products has been determined based on management estimates/ historical data and provided for - Rs. 280.08 lakhs (Previous Year - Rs. 227.46 Lakhs).

Contingent liabilities are disclosed in Note No.4 and Contested liabilities are disclosed in Note No. 5.

Contingent assets are neither recognised nor disclosed.

AS - 30 Financial Instruments : Recognition and Measurement

This Standard is not applicable.

AS - 31 Financial Instruments: Presentation

This Standard is not applicable.

AS - 32 Financial Instruments : Disclosures

This Standard is not applicable.

---

Mar 31, 2014

The financial statements have been prepared in accordance with the norms and principles prescribed in the Accounting Standards issued by the Institute of Chartered Accountants of India which are itemised below.

AS - 1 Disclosure of accounting policies

The Company is following accrual basis of accounting on a going concern concept and the policies applied are consistent with those applied in the previous year.

AS - 2 Valuation of inventories

a Raw materials,components, stores and spares and other trading products are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods and traded goods are valued at the aggregate of material cost and applicable direct and indirect overheads or net realisable value whichever is lower.

b Excise Duty in respect of finished goods lying within the factory are included in the valuation of inventories.

c As per practice consistently followed, Customs Duty and Countervailing Duty payable on raw materials, components and finished goods lying in customs bonded warehouses is accounted for on debonding. Non-provision of this duty will not affect the profit for the year.

AS - 3 Cash Flow Statement

Cash Flow Statement has been prepared under "Indirect Method".

AS - 4 Contingencies and Events occurring after the Balance Sheet date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the Company. Contested liabilities and outstanding bank guarantees are disclosed by way of a note.

AS - 5 Net Profit or Loss for the year, prior period items and changes in accounting policies

Details of prior period items in the Statement of Profit and Loss :

Rs. in Lakhs

As at / Year ended As at / Year ended 31.03.2014 31.03.2013

i) Expenses

Welfare 0.73 0.33

Repairs and Maintenance- Plant and Equipment 0.06 0.21

Repairs and Maintenance- Office Equipments 0.02 0.41

Other expenses 0.01 2.99

Consultancy - 1.07

0.82 5.01

ii) Income

Power & Fuel - 0.44

Repairs & Maintenance - Building - 0.61

Rent - 0.70

Lease rental - Computers - 0.84

Repairs & Maintenance - Assets - 0.15 - 2.74

AS - 6 Depreciation Accounting

a Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 with applicable shift allowance except:

i) On computers (including printers, uninterruptible power supply systems and computer accessories) and vehicles acquired on or after 01-04-1998, depreciation has been charged at 30% and 18% respectively on Straight Line Method (SLM), which are higher than the rates prescribed in Schedule XIV.

ii) In respect of Improvements to Buildings taken on lease, depreciation has been charged at 20% on straight line method which is higher than the rate prescribed in Schedule XIV to the Companies Act,1956.

iii) On Intellectual Property Rights, depreciation has been charged at 9.5% per annum under straight line method for ten years.

iv) On Business Rights, depreciation has been charged at 9.5% per annum under straight line method for 10 years.

v) On Software, depreciation has been charged at 50% per annum on pro-rata basis under straight line method.

vi) On assets whose actual cost does not exceed Rs. 5,000 individually, depreciation has been provided at 100%.

vii) Moulds has been subject to depreciation @ 31.67% per annum as against normal rate of 16.21% per annum prescribed in Schedule XIV of the Companies Act, 1956.

viii) On certain class of assets, depreciation has been charged at 99% of its original cost on pro-rata basis, considering the useful life of asset as one year as against rate prescribed in Schedule XIV of the Companies Act, 1956.

AS - 7 Construction Contracts

This Accounting Standard is not applicable.

AS - 8 Research and Development

This Accounting Standard is withdrawn.

AS - 9 Revenue Recognition

a Income and Expenditure are accounted on a going concern basis.

b The Company''s income consists of income from sale of manufactured equipments, traded goods, after sales service, warranty management & repair services, income from Information Technology (IT) related consultancy services and e-auction services.

c Sales is accounted net of Excise Duty, Service Tax and Sales Tax / Value Added Tax.

i) Income from consultancy services and annual maintenance contracts are considered on accrual basis.

ii) Income from services is recognised after rendering services.

iii) Income from Information Technology solutions are recognised depending upon the stage of completion of the project. d Other income includes realised exchange fluctuation gain on Sale of products, Sale of services of Rs. 110.65 lakhs

(Previous year Rs. 96.30 lakhs).

e Interest income is recognised on a time proportion basis taking into account the amount of outstanding and the rate applicable.

f Dividend Income is recognised when the Company in which shares are held, declares the dividend and when the right to receive the same is established.

g In respect of domestic sale of manufactured and traded items, the recognition is on the basis of delivery of goods to the designated transporters of the Customer, while in respect of export sales the recognition is on the basis of "LET Export " certificate issued by Customs Authorities

AS - 10 Fixed Assets

Fixed Assets are stated at cost of acquisition or construction cost net of CENVAT and includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation.

Technical know-how fees paid is capitalised under Plant and Equipment.

Temporary constructions / alteration costs are charged off in the same year.

Lease hold land represents Rs. 199.15 lakhs(Previous year Rs. 199.15 Lakhs) paid to State Industrial Promotion Corporation of Tamil Nadu Limited (SIPCOT), Chennai for 6.16 acres of land in their Oragadam Special Economic Zone (SEZ), Tamil Nadu. The lease period is 99 years and accordingly the cost is amortised effective 1st April 2013.

AS - 11 Effects of Changes in foreign exchange rates

a Purchase of imported raw materials, components, spare parts and capital goods are accounted based on retirement memos from banks. In respect of liabilities on import of raw materials, components, spare parts and capital goods which are in transit and where invoices / bills are yet to be received, the liability is accounted based on the market exchange rate prevailing on the date of the Balance Sheet.

b Year end foreign currency denominated liabilities and receivables are translated at exchange rates prevailing as at Balance Sheet date, the difference being charged/credited to respective revenue or capital account . Any difference between the forward rate and the exchange rate on the date of inception of forward contract is recognised as discount or premium over the period of the contract .

c Other income includes realised exchange fluctuation gain on Sale of products, Sale of services of Rs. 110.65 lakhs (Previous year Rs. 96.30 lakhs). d Derivative transactions :

The Company uses forward exchange contracts to hedge its exposure in foreign currency in respect of Imports of Inputs.

a) Forward exchange contracts outstanding as at 31st March, 2014

Rs. in Lakhs

As at / Year As at / Year ended ended 31.03.2014 31.03.2013

- Euro 2,74,562 (LY - 4,39,795) equivalent to Rs. 226.72 321.52

- JPY 17,94,450 (LY - 31,22,768) equivalent to Rs. 10.55 19.50

- USD 18,89,551 (LY - 17,63,961) equivalent to Rs. 1,199.49 982.31

b) Foreign currency exposures not covered by Forward exchange contracts as at 31st March, 2014

Rs. in Lakhs

As at / Year As at / Year ended ended 31.03.2014 31.03.2013

- Euro NIL (LY - 2,62,874) equivalent to Rs. - 192.33

- JPY NIL (LY - NIL) equivalent to Rs. - -

- USD NIL (LY - 6,62,408) equivalent to Rs. - 368.88

The company has not availed any External Commercial Borrowings.

AS - 12 Government Grants

The Company has not received any Government grants.

AS - 13 Accounting for Investments

All Investments are long term investments and are stated at cost. Provision for diminution in value is made only if such a decline is other than temporary in the opinion of the Management.

The cost of investments of 50,000 equity Shares in wholly owned subsidiary Tumkur Property Holdings Limited, Chennai is Rs. 5 lakhs and its net worth was Rs. (5.39) Lakhs as of 31st March 2013. Hence a provision for diminution in value of Rs. 5 lakhs had been made in the Statement of Profit and Loss for the financial year ended 31st March 2013.

Consequent to the dissolution of Tumkur Property Holdings Limited, Chennai effective 1st November 2013, the cost of investment of 50,000 equity shares in wholly owned subsidiary Tumkur Property Holdings Limited, Chennai of Rs. 5 lakhs is written off against the provision made.

During the year, out of the total cost of investment of Rs. 118.66 lakhs in TVS Shriram Growth Fund, Chennai, investment costing Rs. 80.00 lakhs was sold.The sum realised was Rs. 84.08 lakhs.Thus a profit of Rs. 4.08 lakhs was made.

Cost of investments held in TVS Shriram Growth Fund, Chennai as on 31st March 2014 - Rs. 38.66 lakhs (3866.18 units). The market value (NAV) of these units is Rs. 41.91 lakhs.

AS - 14 Accounting for Amalgamation

This Standard is not applicable to the Company for the year under review.

AS - 15 Employee benefits

As per Accounting Standard 15 on "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are furnished below :

(a) Short term Employee Benefits

Short term employee benefits payable within twelve months of rendering the service including accumulated leave encashment, at the Balance Sheet date, are recognised as an expense as per the Company''s scheme based on expected obligations on undiscounted basis.

(b) Long term Employee Benefits

In case of long term compensated absences i.e. long term leave encashment, the same is provided for based on actuarial valuation as at the Balance Sheet date, using the Projected Unit Credit Method.

Post retirement benefits comprising of employees Provident Fund and Gratuity Fund are accounted for as follows :

(a) Provident Fund : This is a defined contribution plan and contributions paid to the Regional Provident Fund Commissioner, Tambaram, Chennai - 600 045, are charged to revenue during the period. The Company has no further obligations for future provident fund benefits other than regular contributions.

(b) Gratuity : This is a defined contribution plan and the Company''s Scheme is administered by Trustees and funds managed by the Life Insurance Corporation of India(LIC). The liability for Gratuity to employees as at the Balance Sheet date is determined based on the actuarial valuation and on the basis of demand from Life Insurance Corporation of India.The contribution paid thereof is charged in the books of accounts.

Disclosure as per AS15 (Revised) - Defined Benefit Plans

Rs. in Lakhs

As at / Year As at / Year ended ended 31.03.2014 31.03.2013

Past Service benefit 153.31 146.58

Present Value of the obligation as at the beginning of the year 146.58 155.17

Interest Cost 11.21 11.77

Current Service Cost 22.07 20.83

Benefits Paid (21.52) (41.92)

Acquisitions - -

Plan amendment cost - -

Actuarial Gain/(Loss) on obligation (5.03) 0.73

Present Value of the obligation as at Balance Sheet date 153.31 146.58

Rs. in Lakhs

As at / Year As at / Year ended ended 31.03.2014 31.03.2013

Fair value of planned assets as at the beginning of the year 139.62 157.63 Expected Return on planned assets 13.48 13.51

Contributions 16.00 17.25

Accretion to planned assets 16.17 -

Benefits paid (21.52) (41.92)

Actuarial Gain/(Loss) on planned assets (2.31) (6.85)

Fair value of planned assets as at Balance Sheet date 161.44 139.62

Amounts recognized in the Balance Sheet

Present Value of the obligation as at Balance Sheet date 153.31 146.58

Fair value of planned assets as at Balance Sheet date 161.44 139.62

Funded status of the plan - (assets) / Liability 8.13 (6.96)

Amounts recognized in the statement of Profit and Loss

Current Service cost 22.07 20.83

Interest cost 11.21 11.77

Expected Return on planned assets (13.48) (13.51)

Net actuarial gain or loss recognized in the year (7.34) 7.57

Expenses recognized in the statement of Profit and Loss 12.46 26.66

Principal actuarial assumptions

Discount Rate 9.21% 8.27%

Salary escalation 5.00% 5.00%

Expected return on planned assets 9.30% 9.30%

AS - 16 Borrowing costs

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalised. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalised.

AS - 17 Segment Reporting

Since the group of products sold and services rendered by the Company pertains to Information Technology related products and services, the operations of the Company relate to a single reportable segment.

AS - 18 Related Party disclosure

Disclosure is made as per the requirements of the Standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS - 19 Accounting for Leases

This Standard is not applicable as the Company does not have any lease transaction during the year.

AS - 20 - Earnings Per Share

Earnings per share (Basic and Diluted) has been calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period and disclosed on the face of statement of Profit and Loss in accordance with the Standard.

Rs. in Lakhs

As at / Year As at / Year ended ended 31.03.2014 31.03.2013

Profit after tax 40.02 (800.60)

Weighted average number of equity shares 1,79,75,832 1,76,72,818

Nominal value of the shares Rs. 10/- Rs. 10/-

(i) Earnings per share - Basic 0.22 (4.53)

(ii) Earnings per share - Diluted 0.22 (4.48)

AS - 21 Consolidated Financial Statements

Consolidated Financial Statements of the Company and its wholly owned subsidiary, viz., Prime Property Holdings Limited, Chennai is enclosed.

AS - 22 Taxes on income

Income Tax payable under the normal computation of taxable income is NIL. However, tax is payable under the provisions of Section 115JB of the Income Tax Act, 1961, viz., Minimum Alternate Tax.

Deferred tax liability and asset are recognised based on timing differences using the tax rates substantively enacted on the Balance Sheet date.

Deferred Tax Liability (Net) consists of :

A) Liabilities:- Tax on Depreciation 389.85 348.46 Less:

B) Assets:- Tax on provisions inadmissible under the Income Tax Act, 1961 5.07 3.67

Net Deferred Tax Liability 384.78 344.79

AS - 23 Accounting for Investments in Associates in Consolidated Financial Statements

This Standard is not applicable to the Company for the year under review.

AS - 24 Discontinuing Operations

In respect of Contract Manufacturing Services business which was sold during 2007, the details of liabilities carried over in the financial statements are furnished below:

Liabilities in respect of discontinued operations

Balance at the beginning of the year 20.46 20.46

Less: Discharged during the year 20.46 -

Balance at the close of the year - 20.46

AS - 25 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of Listing Agreement with Stock Exchanges. The recognition and measurement principle as laid down in the Standard have been followed in the preparation of these results.

AS - 26 Intangible Assets

The Company owns Intellectual Property Rights & Business Rights relating to its service business and the same is amortised over a period of ten years @ 9.5% per annum.

AS - 27 Financial Reporting of Interest in Joint Ventures

This Standard is not applicable to the Company as there is no Joint Venture as on 31.03.2014 AS - 28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS - 29 Provisions, Contingent Liabilities and Contingent Assets

Warranty cost on sale of products has been determined based on management estimates/ historical data and provided for - Rs. 227.46 lakhs (Previous Year - Rs. 312.90 Lakhs)

Contingent liabilities are disclosed in Note No. 5 and Contested liabilities are disclosed in Note No. 6.

Contingent assets are neither recognised nor disclosed.

AS - 30 Financial Instruments : Recognition and Measurement

This Standard is not applicable.

AS - 31 Financial Instruments: Presentation

This Standard is not applicable.

AS - 32 Financial Instruments : Disclosures

This Standard is not applicable.

---

Mar 31, 2013

1 ACCOUNTING STANDARDS COMPLIANCE

The fnancial statements have been prepared in accordance with the norms and principles prescribed in the Accounting Standards issued by the Institute of Chartered Accountants of India which are itemised below.

AS - 1 Disclosure of accounting policies

The Company is following accrual basis of accounting on a going concern concept and the policies applied are consistant with those applied in the previous year.

AS - 2 Valuation of inventories

a Raw materials,components, stores and spares and other trading products

are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods and traded goods are valued at the aggregate of material cost and applicable direct and indirect overheads or net realisable value whichever is lower.

b Excise Duty in respect of fnished goods lying within the factory are included in the valuation of inventories.

c As per practice consistently followed, Customs Duty and Countervailing

Duty payable on raw materials, components and fnished goods lying in customs bonded warehouses is accounted for on debonding. Non-provision of this duty will not affect the proft for the year.

AS - 3 Cash Flow Statements

Cash Flow Statement has been prepared under " Indirect Method".

AS - 4 Contingencies and Events occurring after the Balance Sheet date

There are no contingencies and events after the Balance Sheet date that affect the fnancial position of the Company. Contested liabilities and outstanding bank guarantees are disclosed by way of a note.

AS - 6 Depreciation accounting

a Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 with applicable shift allowance except:

i) On computers (including printers, uninterruptible power supply systems and computer accessories) and vehicles acquired on or after 01-04-1998, depreciation has been charged at 30% and 18% respectively on Straight Line Method (SLM), which are higher than the rates prescribed in Schedule XIV.

ii) In respect of Buildings acquired on lease, depreciation has been charged at 20% on straight line method which is higher than the rate prescribed in Schedule XIV to the Companies Act,1956.

iii) On Intellectual Property Rights, depreciation has been charged at 9.5% per annum under straight line method for ten years. iv) On Business Rights, depreciation has been charged at 9.5% per annum under straight line method for 10 years.

v) On Software, depreciation has been charged at 50% per annum on pro- rata basis under straight line method.

vi) On assets whose actual cost does not exceed Rs. 5,000 individually, depreciation has been provided at 100%.

vii) Moulds has been subject to depreciation @ 31.67% per annum as against normal rate of 16.21% per annum prescribed in Schedule XIV of the Companies Act, 1956.

viii) On certain class of assets, depreciation has been charged at 99% of its original cost on pro-rata basis, considering the useful life of asset as one year as against rate prescribed in Schedule XIV of the Companies Act, 1956.

b In respect of assets depreciated on straight line method which have been acquired on amalgamation / business transfer, depreciation is provided on the original cost of acquisition as appearing in the books of transferor companies.

AS - 7 Accounting for Construction Contracts

This Accounting Standard is not applicable.

AS - 8 Accounting for Research and Development

This Accounting Standard is withdrawn.

AS - 9 Revenue Recognition

a Income and Expenditure are accounted on a going concern basis.

b The Company''s income consists of income from sale of manufactured equipments, traded goods, after sales service, warranty management & repair services and income from Information Technology (IT) related consultancy services.

c Sales is accounted net of Excise Duty, Service Tax and Sales Tax / Value

Added Tax.

i) Income from consultancy services and annual maintenance contracts are considered on accrual basis.

ii) Income from services is recognised after rendering services.

iii) Income from InformationTechnology solutions are recognised depending upon the stage of completion of the project.

d Other income includes realised exchange fuctuation gain on Sale of products, Sale of services ofRs. 96.30 lakhs (Previous year Rs.84.56 lakhs).

e Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

f Dividend Income is recognised when the Company in which shares are held, declares the dividend and when the right to receive the same is established.

g In respect of domestic sale of manufactured and traded items, the recognition is on the basis of delivery of goods to the designated transporters of the Customer, while in respect of export sales the recognition is on the basis of "LET Export " certifcate issued by Customs Authorities.

AS - 10 Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition or construction cost net of CENVAT and includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation.

Technical know-how fees paid is capitalised under Plant and Equipment.

Temporary constructions / alteration costs are charged off in the same year.

Lease hold land represents Rs.199.15 lakhs(Previous year Rs.199.15 Lakhs) paid to State Industrial Promotion Corporation of Tamil Nadu Limited (SIPCOT), Chennai for 6.16 acres of land in their Oragadam Special Economic Zone( SEZ),Tamil Nadu. The lease period is 99 years.The plant at Oragadam has commenced the commercial production on 31st August 2012.

The full scale production is expected in the next fnancial year from which the cost of lease hold land will be amortised.

AS - 11 Accounting for effects in foreign exchange rates

a Purchase of imported raw materials, components, spare parts and capital goods are accounted based on retirement memos from banks. In respect of liabilities on import of raw materials, components, spare parts and capital goods which are in transit and where invoices / bills are yet to be received, the liability is accounted based on the market exchange rate prevailing on the date of the Balance Sheet.

b Year end foreign currency denominated liabilities and receivables are translated at exchange rates prevailing as at Balance Sheet date, the difference being charged/credited to respective revenue or capital account. Any difference between the forward rate and the exchange rate on the date of inception of forward contract is recognised as discount or premium over the period of the contract .

c Other income includes realised exchange fuctuation gain on Sale of products, Sale of services of Rs. 96.30 lakhs ( Previous year Rs.84.56 lakhs).

d Derivative transactions :

The Company uses forward exchange contracts to hedge its exposure in foreign currency in respect of Imports of Inputs.

AS - 12 Accounting for Government Grants

The Company has not received any Government grants.

AS - 13 Accounting for Investments

Investments are stated at cost. Provision for diminution in value is made only if such a decline is other than temporary in the opinion of the Management.

The cost of investments of 50,000 equity shares in wholly owned subsidiary Tumkur Property Holdings Limited, Chennai is Rs. 5 lakhs and its net worth is Rs. (5.39) lakhs as of 31st March, 2013. Hence the provision for diminution in value of Rs. 5 lakhs has been made in Statement of Proft & Loss.

During the year, out of the total cost of investment of Rs.710.50 lakhs in TVS Shriram Growth Fund, Chennai, investment costing Rs.570.00 lakhs was sold.The sum realised was Rs.599.07 lakhs.

Thus a proft of Rs. 29.07 lakhs was made. Further investment of Rs.21.84 lakhs was redeemed by TVS Shriram Growth Fund for a sum of Rs.37.31 lakhs, resulting a proft of Rs.15.47 lakhs.

Cost of investments held in TVS Shriram Growth Fund as on 31st March 2013 - Rs.118.66 lakhs (11866.18 units). The market value (NAV) of these units is Rs. 121.63 lakhs.

AS - 14 Accounting for amalgamation

This Standard is not applicable to the Company for the year under review.

AS - 15 Accounting for Retirement benefts

As per Accounting Standard 15 on "Employee Benefts", the disclosures of Employee benefts as defned in the Accounting Standard are given below:

(a) Short term Employee Benefts

Short term employee benefts payable within twelve months of rendering the service including accumulated leave encashment, at the Balance Sheet date, are recognised as an expense as per the Company''s scheme based on expected obligations on undiscounted basis.

(b) Long term Employee Benefts

In case of long term compensated absences i.e. long term leave encashment, the same is provided for based on actuarial valuation as at the Balance Sheet date, using the Projected Unit Credit Method.

Post retirement benefts comprising of employees Provident Fund and Gratuity Fund are accounted for as follows:

(a) Provident Fund : This is a defned contribution plan and contributions are paid to to the Regional Provident Fund Commissioner, Tambaram, Chennai-600045, are charged to revenue during the period. The Company has no further obligations for future provident fund benefts other than regular contributions.

AS - 16 Borrowing cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalised. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalised.

AS - 17 Segment reporting

Since the group of products sold and services rendered by the Company pertains to Information Technology related products and services, the operations of the Company relate to a single reportable segment.

AS - 18 Related Party disclosure

Disclosure is made as per the requirements of the Standard and as per the clarifcations issued by the Institute of Chartered Accountants of India.

AS - 19 Leases

This Standard is not applicable as the Company does not have any fnance lease agreement in force.

AS - 20 - Earnings Per Share

Earnings per share (Basic and Diluted) has been calculated by dividing the net proft for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period and disclosed on the face of statement of Proft and Loss in accordance with the Standard.

AS - 21 Consolidated Financial Statements

Consolidated Financial Statements of the Company and its wholly owned below mentioned Subsidiaries are enclosed.

(i) Tumkur Property Holdings Limited, Chennai

(ii) Prime Property Holdings Limited, Chennai

AS - 22 Accounting for taxes on income

Income Tax payable under the normal computation of taxable income and also under the provisions of Section 115JB, viz., Minimum Alternate Tax is "NIL".

Deferred tax liability resulting from timing differences between book and taxable proft including depreciation on acquired Business Rights, is accounted for, using the tax rates in force as on the Balance Sheet date.

AS - 23 Accounting for Investments in Associates in Consolidated Financial Statements

This Standard is not applicable to the Company for the year under review.

AS - 24 Discontinuing Operations

In respect of Contract Manufacturing Services business which was sold during 2007, the details of liabilities carried over in the fnancial statements are furnished below:

AS - 25 Interim Financial Reporting

Quarterly fnancial results are published in accordance with the requirement of Listing Agreement with Stock Exchanges. The recognition and measurement principle as laid down in the Standard have been followed in the preparation of these results.

AS - 26 Intangible Assets

The Company owns Intellectual Property Rights & Business Rights relating to its service business and the same is amortised over a period of ten years @9.5% per annum.

AS - 27 Financial Reporting of Interest in Joint Ventures

This Standard is not applicable to the Company.

AS - 28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS - 29 Provisions, Contingent Liabilities and Contingent Assets

Warranty cost on sale of products has been determined based on management estimates/ historical data and provided for - Rs. 312.90 lakhs ( Previous Year - Rs. 328.17 Lakhs)

Contingent liabilities are disclosed in Note No.5 and Contested liabilities are disclosed in Note No.6.

Contingent assets are neither recognised nor disclosed.

AS - 30 Financial Instruments: Recognition and Measurement

This Standard is not applicable.

AS - 31 Financial Instruments: Presentation

This Standard is not applicable.

AS - 32 Financial Instruments: Disclosures

This Standard is not applicable.

---

Mar 31, 2012

AS - 1 Disclosure of accounting policies

The Company is following accrual basis of accounting on a going concern concept and the policies applied are consistent with those applied in the previous year.

AS - 2 Valuation of inventories

a Raw materials, components, stores and spares and other trading products are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods and traded goods are valued at the aggregate of material cost and applicable direct and indirect overheads or net realisable value whichever is lower.

b Excise Duty in respect of finished goods lying within the factory are included in the valuation of inventories, c As per practice consistently followed, Customs Duty and Countervailing Duty payable on raw materials, components and finished goods lying in customs bonded warehouses is accounted for on debonding. Non- provision of this duty will not affect the profit for the year.

AS - 3 Cash Flow Statements

Cash Flow Statement has been prepared under "Indirect Method".

AS - 4 Contingencies and Events occurring after the Balance Sheet date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the Company. Contested liabilities and outstanding bank guarantees are disclosed by way of a note.

AS - 5 Net Profit or Loss for the year, prior period items and changes in accounting policies

Details of prior period items in Profit and Loss Account

AS - 6 Depreciation accounting

a Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 with applicable shift allowance except:

i) On computers (including printers, uninterruptible power supply systems ' and computer accessories) and vehicles acquired on or after 01-04- 1998, depreciation has been charged at 30% and 18% respectively on straight line method, which are higher than the rates prescribed in Schedule XIV.

ii) In respect of Buildings acquired on lease, depreciation has been charged at 20% on straight line method which is higher than the rate prescribed in Schedule XIV to the Companies Act,1956.

iii) On Intellectual Property Rights , depreciation has been charged at 9.5% per annum under straight line method.

iv) On Business Rights, depreciation has been charged at 9.5% per annum under straight line method.

v) On Software, depreciation has been charged at 50% per annum on pro-rata basis under straight line method.

vi) On assets whose actual cost does not exceed Rs 5,000 individually, depreciation has been provided at 100%.

vi) From financial year 2005-06, Tools and Moulds which are three year old have been subject to depreciation @ 31.67% as against normal rate of 16.21%, so as to bring the written down value of such assets to 5% of original cost.

vii) On certain class of Office Equipments depreciation has been charged at 99% of its original cost on pro-rata basis, considering the useful life of asset as one year as against Schedule XIV rates.

b In respect of assets depreciated on straight line method which have been acquired on amalgamation I business transfer, depreciation is provided on the original cost of acquisition as appearing in the books of transferor companies.

AS - 7 Accounting for Construction Contracts

The Company is not engaged in any Construction business covered by this Standard.

AS - 8 Accounting for Research and Development

This Standard stands withdrawn as Accounting Standard 26 - Intangible Assets has become mandatory.

AS - 9 Revenue Recognition

a Income and Expenditure are accounted on a going concern basis, b The Company's income consists of income from sale of manufactured equipments, traded goods, after sales service, warranty management & repair services and income from Information Technology (IT) related consultancy services, c Sales is accounted net of Excise Duty, Service Tax and Sales Tax I Value Added Tax.

a) Income from consultancy services and annual maintenance contracts are considered on accrual basis.

b) Income from services is recognised after rendering services.

c) Income from IT solutions are recognised depending upon the stage of completion of the project.

d Sale of products, income from services and other income include realised exchange fluctuations on exports of Rs 84.56 lakhs (Previous year RsNil). e Interest income is recognised on a time proportion basis taking into account the amount of outstanding and the rate applicable, f The Company has not derived any income during the current year out of its investments.

e In respect of domestic sales, the recognition is on the basis of delivery of goods to customers while in respect of export sales the recognition is on the basis of ‘‘LET Export" certification issued by Customs Authorities.

AS -10 Accounting for Fixed Assets Fixed Assets are stated at cost of acquisition or construction cost net of cenvat and includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation.

Technical know-how fees paid is capitalised under Plant and Machinery. Temporary constructions I alteration costs are charged off in the same year.

Lease hold land represents Rs 199.15 lakhs(Previous year Rs 199.15 Lakhs) paid to State Industrial Promotion Corporation of Tamil Nadu Limited (SIPCOT), Chennai for 6.16 acres of land in their Oragadam Special Economic Zone( SEZ),Tamil Nadu for which the registration of lease deed was completed in June 2009. The unit has been approved by the Development Commissioner, Madras Export Promotion Zone (MEPZ) in March 2009.

AS - 11 Accounting for effects in foreign exchange rates .

a Purchase of imported raw materials, components, spare parts and capital goods are accounted based on retirement memos from banks. In respect of liabilities on import of raw materials, components, spare parts and capital goods which are in transit and where invoices / bills are yet to be received, the liability is accounted based on the market exchange rate prevailing on the date of the Balance Sheet.

b Year end foreign currency denominated liabilities and receivables are translated at exchange rates prevailing as at Balance Sheet date, the difference being charged/credited to respective revenue or capital account. Any difference between the forward rate and the exchange rate on the date of inception of forward contract is recognised as discount or premium over the period of the contract.

c Derivative transactions:

The Company uses forward exchange contracts to hedge its exposure in foreign currency: -

The amendment introduced to AS 11 by Government of India on 31st March, 2009 allowing the loss/profit on restatement of External Commercial Borrowings made for acquisition of capital assets to be deducted from or added to cost of capital asset is not applicable to the Company as it has no External Commercial Borrowings for acquisition of capital assets. Similarly Company has not availed External Commercial Borrowings for purposes other than acquisition of capital assets also.

AS -12 Accounting for Government Grants

The Company has not received any Government grants during the current accounting year.

AS -13 Accounting for Investments

Investments are stated at cost. Provision for diminution in value is made only if such a decline is other than temporary in the opinion of the Management. Investment in Shriram Growth Fund(Fund), Chennai - viz., 71,050 units are carried at par value of Rs 1000/- per unit aggregating to Rs 710.50 lakhs. However the Fund has declared its Net Asset Value as at 31st March 2012 at Rs 943/- per unit. Thus there is a diminution in value to the extent of Rs 57/- per unit aggregating to Rs 40.50 lakhs. This diminution is not provided for in the accounts as the Management opines that the portfolio is relatively younger in its investment horizon of 4-5 years with life of the Fund of 7 years with returns commencing from year 4 onwards and hence the fall in value is only temporary. This opinion is based on the fact that the fund returns will start to rise steeply and growth fund will make positive returns soon.

The investment worth of 50,000 equity shares invested in Tumkur Property Holdings Limited, Chennai aggregates to t 3.14 lakhs against cost of Rs 5 lakhs. The diminution amounts to X1.86 lakhs. This is also not provided for as the Management has long term strategy to make this wholly owned subsidiary profitable.

AS -14 Accounting for amalgamation

This Standard is not applicable to the Company for the year under review.

AS -15 Accounting for Retirement Benefits

As per Accounting Standard 15 on "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

(a) Short term Employee Benefits

Short term employee benefits payable within twelve months of rendering the service including accumulated leave encashment, at the Balance Sheet date, are recognised as an expense as per the Company's scheme based on expected obligations on undiscounted basis.

(b) Long term Employee Benefits

In case of long term compensated absences i.e. long term leave

encashment, the same is provided for based on actuarial valuation as at the Balance Sheet date, using the Projected Unit Credit Method.

Post retirement benefits comprising of employees Provident Fund and Gratuity Fund are accounted for as follows:

(a) Provident Fund : This is a defined contribution plan and contributions paid to the fund are charged to revenue during the period in which the employee renders the related service. The Company has no further obligations for future provident fund benefits other than regular contributions.

(b) Gratuity: This is a defined contribution plan and the Company's Scheme is administered by Trustees and funds managed by the Life Insurance Corporation of India(LIC). The liability for Gratuity to employees as at the Balance Sheet date is determined based on the actuarial valuation using the Projected Unit Credit Method. The contribution paid thereof is charged in the books of accounts.

AS -16 Borrowing cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalised. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalised.

AS -17 Segment reporting

Since the group of products sold and services rendered by the Company pertains to Information Technology related products and services, the operations of the Company relate to a single reportable segment.

AS -18 Related Party disclosure

Disclosure is made as per the requirements of the Standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS -19 Leases

This Standard is not applicable as the Company does not have any finance lease agreement in force.

AS - 20 - Earnings Per Share

Earnings per share (Basic and Diluted) has been calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period and disclosed on the face of statement of Profit and Loss in accordance with the Standard.

AS - 21 Consolidated Financial Statements

Consolidated Financial Statements of the Company and its Wholly owned Subsidiaries viz., Tumkur Property Holdings Limited, Chennai and Prime Property Holdings Limited, Chennai are enclosed.

AS - 22 Accounting for taxes on income

Provision for current tax is made after taking into consideration benefits admissable under the provision of Income Tax Act, 1961. Current tax is calculated as per provision of Section 115JB viz., Minimum Alternate Tax.

Deferred tax liability resulting from timing differences between book and taxable profit is accounted for, using the tax rates in force as on the Balance Sheet date.

AS - 23 Accounting for Investments in Associates in Consolidated Financial Statements

This Standard is not applicable to the Company for the year under review.

AS - 24 Discontinuing Operations

In respect of Contract Manufacturing Services business which was sold during 2007, the details of liabilities carried over in the financial statements are furnished below:

AS - 25 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of Listing Agreement with Stock Exchanges. The recognition and measurement principle as laid down in the Standard have been followed in the preparation of these results.

AS - 26 Intangible Assets

The Company owns Intellectual Property Rights & Business Rights relating to its service business and the same is amortised over a period of ten years @ 9.5% per annum.

During the year, the Company has acquired from TVS-E Servicetec Limited, Chennai, its Customer Support Service Business along with Assets and Liabilities on a going concern basis effective 1SI October ,2011. The assets and liabilities of the acquired business have been taken over at fair value and the difference between the consideration and fair value of net assets acquired, aggregating to Rs 3263 Lakhs represents value of Business Rights.

AS - 27 Financial Reporting of Interest in Joint Ventures

This Standard is not applicable to the Company.

AS - 28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS - 29 Provisions, Contingent Liabilities and Contingent Assets

Warranty cost on sale of products has been determined based on management estimates/ historical data and provided for - Rs 328.17 lakhs (Previous Year - Rs 275.44 Lakhs).

Contingent liabilities are disclosed in Note no.5 and Contested liabilities are disclosed in Note no.6

AS - 30 Financial Instruments: Recognition and Measurement

This Standard is not applicable for the year under review.

AS - 31 Financial Instruments: Presentation

This Standard is not applicable for the year under review.

Financial instruments: disclosures

This Standard is not applicable for the year under review.

---

Mar 31, 2011

1 ACCOUNTING STANDARDS COMPLIANCE

The financial statements have been prepared in accordance with the norms and principles prescribed in the Accounting Standards issued by the Institute of Chartered Accountants of India which are itemised below.

AS - 1 Disclosure of accounting policies

The Company is following accrual basis of accounting on a going concern concept and the policies applied are consistent with those applied in the previous year.

AS - 2 Valuation of inventories

a Raw materials, components, stores and spares and other trading products are valued at cost determined on weighted average basis. Work-in-process includes material cost and applicable direct overheads. Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads or net realisable value whichever is lower.

b Excise Duty in respect of finished goods lying within the factory are included in the valuation of inventories.

c As per practice consistently followed, Customs Duty and Countervailing Duty payable on raw materials, components and finished goods lying in customs bonded warehouses is accounted for on debonding. Non-provision of this duty will not affect the profit for the year.

AS - 3 Cash Flow Statements

Cash Flow Statement has been prepared under" Indirect Method".

AS - 4 Contingencies and Events occurring after the Balance Sheet date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the Company. Contested liabilities and outstanding bank guarantees are disclosed by way of a note.

AS - 6 Depreciation accounting

a Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 with applicable shift allowance except:

i) On Computers (including printers, uninterruptible power supply

systems and computer accessories) and vehicles acquired on or after 01-04-1998, depreciation has been charged at 30% and 18% respectively on straight line method, which are higher than the rates prescribed in Schedule XIV.

ii) In respect of Buildings acquired on lease, depreciation has been charged at 20% on straight line method which is higher than the rate prescribed in Schedule XIV to the Companies Act,1956.

iii) On Intellectual Property Rights acquired on amalgamation, depreciation has been charged at 9.5% per annum under straight line method.

iv) On Software acquired, depreciation has been charged at 50% per annum on pro-rata basis under straight line method.

v) On assets acquired whose actual cost does not exceed Rs. 5,000 individually, depreciation has been provided at 100%.

AS - 6 Depreciation accounting

vi) From financial year 2005-06, Tools and Moulds which are three years old have been subject to depreciation @ 31.67% as against normal rate of 16.21%, so as to bring the written down value of such assets to 5% of original cost. vii) On certain class of Office Equipments depreciation has been charged at 99% of its original cost on pro-rata basis, considering the useful life of asset as one year as against Schedule XIV rates. b In respect of assets depreciated on straight line method which have

been acquired on amalgamation / business transfer, depreciation is provided on the original cost of acquisition as appearing in the books of transferor companies.

AS - 7 Accounting for Construction Contracts

The Company is not engaged in any Construction business covered by this Standard.

AS - 8 Accounting for Research and Development

This Standard stands withdrawn as Accounting Standard 26 - Intangible Assets has become mandatory.

AS - 9 Revenue Recognition

a) Income and Expenditure are accounted on a going concern basis.

b) The Company's income consists of income from sale of manufactured equipments, traded goods and after sales service and income from Information Technology (IT) related Management services.

c) Sales is accounted net of Excise Duty, Service Tax and Sales Tax / Value Added Tax. Income from consultancy services and annual maintenance contracts are considered on accrual basis. Income from IT solutions are recognised depending upon the stage of completion of the project.

d) Sale of products, income from services and other income include realised exchange fluctuations of Exports of Rs. NIL.( Previous year Rs. 42.26 Lakhs).

e) Interest income is recognised on a time proportion basis taking into account the amount of outstanding and the rate applicable.

f) The Company has not derived any income during the current year out

of its investments.

g) In respect of domestic sales, the recognition is on the basis of delivery of goods to customers while in respect of export sales the recognition is on the basis of " LET Export " certification issued by Customs Authorities.

AS - 10 Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition or construction cost net of cenvat and includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation. Technical know-how fees paid is capitalised under Plant and Machinery. Temporary construction / alteration costs are charged off in the same year.

Land includes Lease hold land of Rs. 199.15 Lakhs(Previous year Rs. 99.15 Lakhs) paid to State Industrial Promotion Corporation of TamilNadu Limited (SIPCOT), Chennai for 6.16 acres of land in their Oragadam Special Economic Zone (SEZ), Tamil Nadu for which the registration of lease deed was completed in June, 2009. The unit has been approved by the Development Commissioner, Madras Export Promotion Zone (MEPZ) in March, 2009.

AS - 11 Accounting for effects in foreign exchange rates

a) Purchase of imported raw materials, components, spare parts and capital goods are accounted based on retirement memos from banks. In respect of liabilities on import of raw materials, components, spare parts and capital goods which are in transit and where invoices / bills are yet to be received, the liability is accounted based on the market exchange rate prevailing on the date of the Balance Sheet.

b) Year end foreign currency denominated liabilities and receivables are translated at exchange rates prevailing as at Balance Sheet date, the difference being charged/credited to respective revenue or capital account. Any difference between the forward rate and the exchange rate on the date of inception of forward contract is recognised as discount or premium over the period of the contract.

c) Derivative transactions :

The Company uses forward exchange contracts to hedge its exposure in foreign currency : -

The amendment introduced to AS 11 by Government of India on 31st March, 2009 allowing the loss/profit on restatement of External Commercial Borrowings made for acquisition of capital assets to be deducted from or added to cost of capital asset is not applicable to the Company as it has no External Commercial Borrowings for acquisition of capital assets. Similarly Company has not availed External Commercial Borrowings for purposes other than acquisition of capital assets also.

AS - 12 Accounting for Government Grants

The Company has not received any Government grants during the current accounting year.

AS - 13 Accounting for Investments

Investments are stated at cost. Provision for diminution in value is made only if such a decline is other than temporary in the opinion of the Management.

AS - 14 Accounting for amalgamation

This Standard is not applicable to the Company for the year under review.

AS - 15 Accounting for Retirement benefits

As per Accounting Standard 15 on "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

(a) Short term Employee Benefits

Short term employee benefits payable within twelve months of rendering the service including accumulated leave encashment as at the Balance Sheet date, are recognised as an expense as per the Company's scheme based on expected obligations on undiscounted basis.

(b) Long term Employee Benefits

In case of long term compensated absences i.e. long term leave encashment, the same is provided for based on actuarial valuation as at the Balance Sheet date, using the Projected Unit Credit Method.

Post retirement benefits comprising of employees Provident Fund, Gratuity Fund and Superannuation Funds are accounted for as follows:

(a) Provident Fund : This is a defined contribution plan and contributions paid to the fund are charged to revenue during the period in which the employee renders the related service. The Company has no further obligations for future Provident Fund benefits other than regular contributions.

(b) Gratuity: This is a defined contribution plan and the Company's Scheme is administered by Trustees and funds managed by the Life Insurance Corporation of India (LIC). The liability for Gratuity to employees as at the Balance Sheet date is determined based on the actuarial valuation using the Projected Unit Credit Method. The Contribution paid thereof is charged in the books of accounts.

Actuarial gains or losses arising out of actuarial valuation, if any, are recognized in the Profit and Loss as Income or expense.

The total employer expense is inclusive of the past service cost (or plan amendment cost) that has been recognised immediately due to the amendment in payment of Gratuity Act,1972 raising the ceiling from Rs. 3,50,000 to Rs. 10,00,000 per employee effective 24th May, 2010.

(c) Superannuation : With effect from 1st April, 2010, the Company has withdrawn the Scheme providing for Superannuation benefits to the employees of the Company.

AS - 16 Borrowing cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalised. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalised.

AS - 17 Segment reporting

Since the group of products sold and services rendered by the Company pertains to Information Technology related products and services, the operations of the Company relate to a single reportable segment.

AS - 18 Related Party disclosure

Disclosure is made as per the requirements of the Standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS - 19 Leases

This Standard is not applicable as the Company does not have any finance lease agreement in force.

AS - 20 Earnings Per Share

Disclosure is made in the Profit and Loss Account as per the requirement of the Standard.

AS - 21 Consolidated Financial Statements

Consolidated Financial Statements of the Company and its Wholly owned Subsidiaries viz., Tumkur Property Holdings Limited, Chennai and Prime Property Holdings Limited, Chennai are enclosed.

AS - 22 Accounting for taxes on income

Provision for current tax is made after taking into consideration benefits admissable under the provision of Income Tax Act,1961. Current tax is calculated as per provision of Section 115JB viz Minimum Alternate Tax.

Deferred tax liability resulting from timing differences between book and taxable profit is accounted for, using the tax rates in force as on the Balance Sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is reasonable certainty that the asset will be realised in future.

Details of deferred taxation are furnished in Schedule V.

AS - 23 Accounting for Investments in Associates in Consolidated Financial Statements

This Standard is not applicable to the Company for the year under review.

AS - 24 Discontinuing Operations

In respect of Contract Manufacturing Services business which was sold during 2007, the details of liabilities carried over in the financial statements are furnished below:

AS - 25 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of Listing Agreement with Stock Exchanges. The recognition and measurement principle as laid down in the Standard have been followed in the preparation of these results.

AS - 26 Intangible Assets

The Company owns Intellectual Property Rights relating to its service business and the carrrying amount thereof is disclosed in the schedule on Fixed Assets. This would be amortised over the remaining period of 1 year and 9 months on a straight line method @ 9.5 % per annum.

AS - 27 Financial Reporting of Interest in Joint Ventures

This Standard is not applicable to the Company as the Company does not have any Joint Venture.

AS - 28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS - 29 Provisions, Contingent Liabilities and Contingent Assets

Contingent Liabilities are disclosed in Note No. 7

Contingent Assets which are likely to give rise to the possibility of inflow of economic benefits - Rs. 117.24 Lakhs.

Contingent Asset Rs.117.24 Lakhs –This is in respect of Karnataka Sales Tax (KST) and Entry Tax, paid by the Company under protest in respect of earlier years, on inputs used in sales made to Domestic Tariff Area (DTA) from its Tumkur Unit. The Karnataka High Court has held in respect of accounting year 1997-98 vide Order dated 4th March, 2010 in STRP no 45 of 2006 that KST and Entry Tax are not leviable where the domestic area sales is within the limits permissible under Notification No FD32 CSL 96(V) dated 15.11.1996. The Hon'ble High Court Order is on the basis of appeal filed by the Company. This is also not appealed against by the Revenue. Earlier in respect of accounting year 2000-01, the Joint Commissioner(Admin) Appeals and Joint Commissioner Appeals had also issued favorable Orders vide Orders dated March 2009 and July 2009 respectively. Further based on the favorable Orders of High Court, the Karnataka Appellate Tribunal had vide Orders dated June 2010 and August 2010 respectively held that the assessment is remitted back to the assessing authority with a direction to redo the assessment in the light of the judgment of the Honorable High Court of Karnataka cited above. The revised Assessment Orders are expected to be received shortly. Accordingly this is considered as contingent asset. The effect of the revised Assessment Orders will be reflected in the next financial year.

Warranty cost on sale of products has been determined based on management estimates/historical data and provided for Rs. 275.44 Lakhs (Previous Year - Rs. 148.45 Lakhs)

Contested liabilities are disclosed in Note No.8

AS - 30 Financial Instruments: Recognition and Measurement

This Standard is not applicable to the Company for the year under review.

AS - 31 Financial Instruments: Presentation

This Standard is not applicable to the Company for the year under review.

AS - 32 Financial Instruments: Disclosures

This Standard is not applicable to the Company for the year under review.

---

Mar 31, 2010

1 ACCOUNTING STANDARDS COMPLIANCE

The financial statements have been prepared in accordance with the norms and principles prescribed in the Accounting Standards issued by the Institute of Chartered Accountants of India which are itemised below.

AS - 1 Disclosure of accounting policies

The Company is following accrual basis of accounting on a

going concern concept.

AS - 2 Valuation of inventories

a Raw materials,components, stores and spares and other trading products are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads or market value whichever is lower.

b Excise duty in respect of finished goods lying within the factory are included in the valuation of inventories.

c As per practice consistently followed, customs duty and countervailing duty payable on raw materials, components and finished goods lying in customs bonded warehouses is accounted for on debonding. Non-provision of this duty will not affect the profit for the year.

AS - 3 Cash flow statements

Cash flow statement has been prepared under " Indirect

Method".

AS - 4 Contingencies and Events occurring after the Balance Sheet Date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the company. Contested liabilities and outstanding bank guarantees are disclosed by way of a note.

AS - 6 Depreciation accounting

a Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 with applicable shift allowance except:

i) On computers (including printers, uninterruptible power supply systems and computer accessories) and vehicles acquired on or after 01-04-1998, depreciation has been charged at 30% and 18% respectively on straight line method, which are higher than the rates prescribed in Schedule XIV.

ii) In respect of Buildings acquired on lease, depreciation has been charged at 20% on straight line method which is higher than the rate prescribed in Schedule XIV to the Companies Act,1956.

iii) On Intellectual property rights acquired on amalgamation, depreciation has been charged at 9.5% per annum under straight-line method.

iv) On Software acquired, depreciation has been charged at 50% per annum on pro-rata basis under straight line method.

v) On assets acquired whose actual cost does not exceed Rs. 5,000 individually, depreciation has been provided at 100%.

vi) From financial year 2005-06, tools and moulds which are three years old have been subject to depreciation @ 31.67% as against normal rate of 16.21%, so as to bring the written down value of such assets to 5% original cost.

vii) On certain class of office equipments depreciation has been charged at 99% of its original cost on prorata basis, considering the useful life of asset as one year as against Schedule XIV rates.

b In respect of assets depreciated on straight line method which have been acquired on amalgamation / business transfer, depreciation is provided on the original cost of acquisition as appearing in the books of transferor companies.

AS - 7 Accounting for Construction contracts

The company is not engaged in any Construction business

covered by this Standard.

AS - 8 Accounting for Research and Development

This standard stands withdrawn as Accounting Standard 26

- Intangible Assets has become mandatory.

AS - 9 Revenue recognition

a Income and expenditure are accounted on a going concern basis.

b The companys income consists of income from sale of manufactured equipments, traded goods and after sales service and income from Information technology (IT) related consultancy and services.

c Sales is accounted net of excise duty, service tax and sales tax / Value Added Tax. Income from consultancy services and annual maintenence contracts are considered on accrual basis. Income from IT solutions are recognised depending upon the stage of completion of the project.

d Sale of products, income from services and other income include realised exchange fluctuations on exports of Rs 42.26 Lakhs (Previous year Rs 130.76 Lakhs).

e Interest income is recognised on a time proportion basis taking into account the amount of outstanding and the rate applicable.

f The company has not derived any income during the current year out of its investments.

g In respect of domestic sales, the recognition is on the basis of delivery of goods to customers while in respect of export sales the recognition is on the basis of "LET Export" certification issued by customs authorities.

AS - 10 Accounting for fixed assets

Fixed Assets are stated at cost of acquisition or construction cost net of cenvat and includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation. Technical know-how fees paid is capitalised under plant and machinery. Temporary constructions / alteration costs are charged off in the same year.

Lease hold land represents Rs 198.51 lakhs paid to State Industrial Promotion Corporation of Tamil Nadu Limited (SIPCOT), Chennai for 6.16 acres of land in their Oragadam SEZ, Tamil Nadu for which the registration of lease deed has been completed in June 2009. The unit has been approved by the Development Commissioner, MEPZ in March 2009.

AS - 11 Accounting for effects in foreign exchange rates

a Purchase of imported raw materials, components, spare parts and capital goods are accounted based on retirement memos from banks. In respect of liabilities on import of raw materials, components, spare parts and capital goods which are in transit and where invoices / bills are yet to be received, the liability is accounted based on the market exchange rate prevailing on the date of the balance sheet.

b Year end foreign currency denominated liabilities and receivables are translated at exchange rates prevailing as at Balance Sheet date, the difference being charged/ credited to respective revenue or capital account. Any difference between the forward rate and the exchange rate on the date of inception of forward contract is recognised as discount or premium over the period of the contract.

c Derivative transactions :

The Company uses forward exchange contracts to hedge its exposure in foreign currency : -

AS - 12 Accounting for Government Grants

The company has not received any government grants during the current accounting year.

AS - 13 Accounting for Investments

Investments are stated at cost. Provision for diminution in value is made only if such a decline is other than temporary in the opinion of the management.

AS - 14 Accounting for amalgamation

This standard is not applicable to the company for the year under review.

AS - 15 Accounting for Retirement benefits

As per Accounting Standard 15 on "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

(a) Short term Employee Benefits:

Short term employee benefits payable within twelve months of rendering the service including accumulated leave encashment, at the balance sheet date, are recognized as an expense as per the companys scheme based on expected obligations on undiscounted basis.

(b)Long term Employee Benefits:

In case of long term compensated absences i.e. long term leave encashment, the same is provided for based on actuarial

valuation as at the balance sheet date, using the Projected Unit Credit Method

Post retirement benefits comprising of employees provident fund, gratuity fund and super annuation funds are accounted for as follows:

(a) Provident Fund : This is a defined contribution plan and contributions paid to the fund are charged to revenue during the period in which the employee renders the related service. The company has no further obligations for future provident fund benefits other than regular contributions.

(b) Gratuity: This is a defined contribution plan and the companys scheme is administered by Trustees and funds managed by the Life Insurance Corporation of India (LIC). The liability for Gratuity to employees as at the Balance Sheet date is determined based on the actuarial valuation using the Projected unit credit method. The contribution paid thereof is charged in the books of accounts. Actuarial gains or losses arising out of actuarial valuation, if any, are recognized in the Profit and Loss as income or expense.

c) Superannuation : Fixed contributions are made to the Superannuation Fund, which is administered by Trustees and managed by LIC, are charged to the Profit and Loss Account. The Company has no liability for future Superannuation Fund benefits other than its annual contribution, which is recognized as an expense in the year incurred.

AS - 16 Borrowing cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalised. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalised.

AS - 17 Segment reporting

Since the group of products sold and services rendered by the company pertains to Information Technology related products and services, the operations of the company relate to a single reportable segment.

AS - 18 Related party disclosure

Disclosure is made as per the requirements of the standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS - 19 Leases

This standard is not applicable as the company does not have any finance lease agreement in force.

AS - 20 Earnings per share

Disclosure is made in the Profit and Loss account as per the

requirement of the standard.

AS - 21 Consolidated financial statements

Consolidated Financial Statements of the company and its wholly owned subsidiaries viz., Tumkur Property Holdings Limited, Chennai and Prime Property Holdings Limited, Chennai are enclosed.

AS - 22 Accounting for taxes on income

In view of loss incurred during the year, no provision for tax is required to be made both under normal computation and under Section 115 JB (Minimum Alternate Tax).

Deferred tax liability resulting from timing differences between book and taxable profit is accounted for, using the tax rates in force as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is reasonable certainity that the asset will be realised in future.

Details of deferred taxation are furnished in Schedule V.

AS - 23 Accounting for Investments in Associates in Consolidated Financial Statements

This standard is not applicable to the company for the year under review.

AS - 24 Discontinuing Operations:

In respect of Contract Manufacturing Services business which was sold during 2007, the details of liabilities carried over in the financial statements are furnished below:

AS - 25 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of listing agreement with stock Exchanges. The recognition and measurement principle as laid down in the standard have been followed in the preparation of these results.

AS - 26 Intangible Assets

The company owns Intellectual Property Right relating to its service business and the carrrying amount thereof is disclosed in the schedule of Fixed assets. This would be amortised over the remaining period of 2 years and 9 months on a straight line method @ 9.5 % per annum.

AS - 27 Financial Reporting of Interest in Joint ventures

This standard is not applicable to the company as the company does not have any joint venture.

AS - 28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS - 29 Provisions, Contingent Liabilities and Contingent Assets

Contingent Liabilities are disclosed in Note No. 7

Contingent Assets which are likely to give rise to the possibility of inflow of economic benefits - 117.24 lakhs

Contingent Asset Rs 117.24 Lakhs –This is in respect of Karnataka Sales Tax (KST) and Entry Tax, paid by the company under protest in respect of earlier years, on inputs used in sales made to DTA from its Tumkur Unit. The Karnataka High court has held vide order dated 4th March 2010 in STRP no 45 of 2006 that KST and Entry Tax are not leviable where the domestic area sales is within the limits permissible under Notification No FD32 CSL 96(V) dated 15.11.1996. The Honble High Court order is on the basis of appeal filed by the company. This is also not appealed against by the Revenue. Accordingly this is considered as contingent asset. The effect of this High Court order will be reflected in next financial year.

Warranty cost on sale of products has been determined based on management estimates/historical data and provided for - Rs. 148.46 lakhs (Previous Year - Rs. 91.01 Lakhs)

Contested liabilities are disclosed in Note No. 8

AS - 30 Financial Instruments: Recognition and Measurement

This standard is not applicable to the company for the year under review.

AS - 31 Financial Instruments: Presentation

This standard is not applicable to the company for the year under review.

AS - 32 Financial Instruments: Disclosures

This standard is not applicable to the company for the year under review.