2. Significant Accounting Policies

a) Basis of preparation

i) The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the
Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 (“the 2013 Act”) / Companies Act, 1956 (“the 1956 Act”), as applicable. The financial statements
have been prepared on accrual basis under the historical cost convention.

b) Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates
and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the
reported income and expenses during the year. The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences
between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

c) (i) Property, Plant and Equipment

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

(ii) Depreciation

Depreciation on tangible fixed assets has been provided on the written down value method as per the useful life
prescribed in Schedule II to the Companies Act, 2013

The useful lives are reviewed by the management at each financial year-end and revised, if appropriate. In case of
a revision, the unamortized depreciable amount is charged over the revised remaining useful life. Property, Plant and
Equipment are eliminated from the financial statements on disposal or when no further benefits are expected from
their use and disposal.

d) (i) Intangible Fixed Assets

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

Product development costs are recognized as intangible fixed assets, when feasibility has been established, the
Company has committed technical, financial and other resources to complete the development and it is probable that
the asset will generate probable future economic benefits.

(ii) Amortization

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

e) Impairment of Assets

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

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

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

f) Revenue Recognition

1. Revenue from Localisation and Consulting projects:

Revenues from customer contracts are considered for recognition and measurement when the contract has been
approved in writing by the parties to the contract, the parties to the contract are committed to perform their
respective obligations under the contract, and the contract is legally enforceable. Revenue is recognized upon
transfer of control of promised products or services (“performance obligations”) to customers in an amount that
reflects the consideration the Company has received or expects to receive in exchange for these products or services
(“transaction price”). When there is uncertainty as to collectability, revenue recognition is postponed until such
uncertainty is resolved.

Revenue with respect to time and-material contracts is recognized over the period of time as the related services are
performed.

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

2. Interest Income

Interest Income is recognised on time proportion basis taking into account the amounts invested and the rate of
interest.

g) Foreign currency transactions

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

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

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

h) (i) Employee benefits

1) Short Term Employee Benefits

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

2) Post Employment Benefits

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

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

The obligation is measure at the present value of the estimated future cash flows. The discount rates used for

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

3) Long Term Employee Benefits

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

h) (ii) Employee benefits- Stock appreciation Rights plan

The Company has issued Stock Appreciation Rights ('SARs') to some employees vide Stock Appreciation
Rights Plan in April 2018

Expenses pertaining to SARs is recognised on time-proportion basis from grant date to vesting date based
upon specified service contions set out in the companys SAR plan

The difference between grant price and the fair value of the equity shares on the reporting date is recognised as
expense in the profit and loss account with corresponding rise in the liability being a cash settled stock appreciation
rights plan

The company re-estimates the fair value of the liability at the end of each reporting period and will also do so at the
date of settlement, with any changes in fair value recognised in profit or loss for the period as per principles stated
in guidance note issued by Institute of Chartered Accountants of India namely " Accounting for Share Based
Payments ( Revised 2020 )

The expense and corresponding liability recognised in the financial statements is based on the share valuation
from a registered valuer using Discounted Cash flow technique

i) Taxes on Income

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

Deferred tax is recognised on timing differences, being the differences between the taxable income and the
accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the
reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised
for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent
that reasonable certainty exists that sufficient future taxable income will be available against which these can be
realised. However, if there are unabsorbed depreciation and carry forward of losses and items relating to
capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing
evidence that there will be sufficient future taxable income available to realise the assets. Deferred tax assets
and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the
Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance
sheet date for their realisability.

j) (i) Operating Leases

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

(i) Finance Leases

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

k) Investments

Investments that are readily realizable and intended to be held for not more than a year from the date of the acquisition are
classified as current investments. All other investments are classified as long-term investments. However, that portion of

long-term investments which is expected to be realized within 12 months after the reporting date is also presented under
'current investment' as current portion of long term investments in consonance with the current/non-current classification
scheme of Schedule II of Act. Long-term investments are valued at cost less any other-than-temporary diminution in
value, determined separately for each individual investment.

Current investments are valued at lower of cost and fair value. The comparison of cost and fair value is done separately
in respect of each category of investments. Any reduction in the carrying amount and any reversal of such reduction is
charged or credited to the Statement of Profit and Loss.