Orchasp Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

2. Summary of Significant Accounting
Policies

a. Property, Plant & Equipment:

i. Recognition and Measurement

Property, Plant & Equipment are stated at cost less
accumulated depreciation and impairment losses, if
any.

Costs include costs of acquisitions or constructions
including incidental expenses thereto, borrowing costs
and other attributable costs of bringing the asset to its
working condition for its intended use and are net of
available duty/tax credits.

Subsequent expenditure relating to Property, Plant &
Equipment is capitalized only when it is probable that
future economic benefits associated with these will
flow to the Company and the cost of the item can be
measured reliably. All other repair and maintenance
costs are recognised in Statement of Profit & Loss as
incurred.

Gains or losses arising from discard/sale of Property,
Plant & Equipment are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement
of Profit & Loss when the asset is discarded/sold.

ii. Depreciation

The company depreciates property plant and
equipment on straight-line-method (SLM) as per the
useful life of assets, as estimated by the management/
independent professional, which are generally in line
with Schedule-II to the Companies Act, 2013.

b. Intangible Assets:

i. Recognition and Measurement

Ilntangible assets acquired separately are measured
on initial recognition at cost. Subsequent to initial
recognition, intangible assets are carried at cost less
any accumulated amortisation and accumulated
impairment losses. In case of internally generated
intangible asset arising from development activity
is recognised at cost only if it is probable that the
asset would generate future economic benefit and
the expenditure attributable to said assets during
its development can be measured reliably. Capital
expenditure on purchase and development of
identifiable on monetary assets without physical
substance is recognised as Intangible Assets when: It
is probable that the expected future economic benefits
that are attributable to the asset will flow to the entity
and the cost of the asset can be measure reliably.

ii. Depreciation

The company Amortises/Depreciates Intangible Assets
on the basis of estimated useful lives of Intangible
assets are as follows:

c. Impairment:

The carrying amount of Property, Plant & Equipment,
Intangible Assets, and Investment Property are
reviewed at each Balance Sheet date to assess
impairment, if any based on internal/external factors.
An asset is treated as impaired when the carrying cost
of asset exceeds its recoverable value. An impairment
loss is recognised as an expense in the Statement of
Profit & Loss in the year in which an asset is identified
as impaired. The impairment loss recognized in prior
accounting period is reversed if there has been an
improvement in recoverable amount.

d. Foreign Currency Transactions:

i. Functional and Presentation Currency:

Items included in the financial statements are
measured using the currency of the primary economic
environment in which the entity operates ("functional
Currency”). The financial Statements are presented in
Indian rupee (INR), which is the company''s functional
and presentation currency.

ii. Transactions and Balances:

Transactions in foreign currencies are translated into
functional currency of the Company at rates prevailing
at the date of the transaction. Foreign exchange
gain or losses resulting from the settlement of such

transactions and from translation of monetary assets
and liabilities denominated in foreign currencies at the
year-end exchange rates are generally recognised in
Profit & Loss and reported with in Foreign exchange
gain/(losses), except when deferred in other
comprehensive income as qualifying cashflow hedges.

Non-monetary items that are measured in times of
historical cost in a foreign currency are translated using
the exchange rates at the dates of the transaction. Non¬
monetary items (other than investment in shares of
Subsidiaries, Joint Ventures, and Associates) carried at
Fair Value that are denominated in foreign currencies
are translated at the exchange rates prevailing at the
date when the Fair Value was determined. Exchange
component of the gain or loss arising on fair valuation
of non-monetary items is recognised in line with the
gain or loss of the item that gave rise to such exchange
difference.

e. Accounting Policy on FCCBs / Compound

Financial Instruments

i. Accounting Policy on FCCBs / Compound
Financial Instruments

FCCBs are usually treated as compound financial
instruments (if conversion is into a fixed number of
shares and meets equity definition) or separated into
liability and derivative components if not.

"The Company classifies FCCBs as compound financial
instruments consisting of a liability component and
an equity component. On initial recognition, the fair
value of the liability is determined and the residual
value is classified as equity. The liability component is
subsequently measured at amortised cost using the
effective interest rate method. The equity component
is not remeasured. Upon conversion, the liability is
derecognised and equity share capital and securities
premium are recognized accordingly.”

ii. Derecognition Policy

Include a brief policy on derecognition of financial
liabilities:

"A financial liability is derecognised when the
obligation under the liability is discharged, cancelled,
or expires. Upon conversion of FCCBs into equity
shares, the financial liability is derecognised and equity
instruments are recognised.”

f. Revenue Recognition:

The Company derives revenue primarily from software
development, maintenance of software/hardware and
allied services, sale of software licenses, subscriptions
for services and ecommerce.

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation. The transaction price of
goods sold, and services rendered is net of variable
consideration on account of various discounts and
schemes offered by the Company as part of the

contract. The Company recognised revenue when
the amount of revenue can be reliably measured, it is
probable that future economic benefits will flow to the
entity and specific criteria have been met for each of
the company''s activities as described below.

The Company estimates its estimates on historical
results, taking into consideration the type of customer,
the type of transaction and the specifics of each
arrangement.

i. Time and Material Contracts

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

ii. Fixed- price contracts:

Revenues from fixed-price contracts, including IT
Infrastructure development and integration contracts
are recognized using the "percentage of-completion”
method. Percentage of completion is determined based
on efforts or costs incurred to date as a percentage of
total estimated efforts or costs required to complete
the project. The efforts or cost expended are used to
measure progress towards completion as there is a
direct relationship between input and productivity.
If the Company does not have a sufficient basis to
measure the progress of completion or to estimate
the total contract revenues and costs, revenue is
recognized only to the extent of contract cost incurred
for which recoverability is probable.

When total cost estimates exceed revenues in an
arrangement, the estimated losses are recognized in
the statement of income in the period in which such
losses become probable based on the current contract
estimates.

Advance payments received from customers for which
no services have been rendered are presented as
''Advance from customers.

iii. Services contracts:

Revenue from services contracts is recognized ratably
over the period of the contract using the percentage
of completion method. When services are performed
through an indefinite number of repetitive acts over
a specified period of time, revenue is recognized on
a straight-line basis over the specified period unless
some other method better represents the stage of
completion. In certain projects, a fixed quantum of
service or output units is agreed at a fixed price for
a fixed term. In such contracts, revenue is recognized
with respect to the actual output achieved till date as
a percentage of total contractual output. Any residual
service unutilized by the customer is recognized as
revenue on completion of the term.

iv. Sale of licenses & Subscriptions

Revenue from sale of licenses and support are
recognized when the significant risks and rewards
of ownership have been transferred to the buyer,
continuing managerial involvement usually associated
with ownership and effective control have ceased,

the amount of revenue can be measured reliably, it is
probable that economic benefits associated with the
transaction will flow to the Company and the costs
incurred or to be incurred in respect of the transaction
can be measured reliably.

Revenues from Sale of Subscriptions shall be recognized
linear to the period of the contract.

v. Ecommerce/Retail

Revenue from Ecommerce transactions i.e., sale of
third-party products/applications/services shall be
recognized on realization of the merchandise.

vi. Other Income

Profit on Sale of investments is recorded on transfer
of title from the company and is determined as the
difference between the sale price and the carrying
amount of the investment.

Dividend income is recognized when the company''s
right to receive dividends is established.

Interest income on time deposits is recognized using
time proportion basis taking into account the amount
outstanding and applicable interest rates.

g. Income Tax:

Income Tax comprises current and deferred tax.

Current tax is measured at the amount expected to

be paid to the tax authorities in accordance with the
Income Tax Act, 1961 enacted in India and tax laws,
prevailing in the respective tax, jurisdictions where the
Company operates. The tax rates and tax laws used
to compute the amount are those that are enacted or
substantively enacted at the reporting date.

The company offsets current tax assets and current
tax liabilities, where it has legally enforceable right to
set off the recognised amounts and where it intends to
settle on net basis, or to realise the asset and liability
simultaneously.

Deferred tax is provided on temporary difference
arising between the tax bases of assets & liabilities and
their carrying amounts for financial reporting purposes
at the reporting date. Deferred tax is measured using
the tax rate that are expected to apply in the year
when the asset is realized, or the liability is settled
based on the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Deferred
tax relating to items recognized directly in equity/
other comprehensive income (OCI) is recognised in
equity/ other comprehensive income (OCI) and not
in the statement of Profit & Loss. Deferred tax asset
is recognised to the extent that it is probable that
sufficient future taxable profit will be available against
which the deductible temporary differences and the
carry forward unused tax credits and unused tax losses
can be utilized. The carrying amount of deferred tax
assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the
deferred tax asset to be utilized.

Minimum Alternate Tax (MAT) credit is recognised as
anasset only when and to the extent there is convincing
evidence that the Company will pay normal income tax
during the specified period.

---

Mar 31, 2024

Note 1: Significant Accounting Policies

1. Corporate information

Orchasp Limited is Public limited company incorporated in India with its registered and corporate office at 19 & 20, Moti Valley, Trimulgherry, Secunderabad. India. The Company is listed on the bSe Limited. The company is engaged in providing IT Services, solutions, platforms and has been providing services to Health Care, Telecom, Manufacturing, Engineering, Energy, Retail and Railways.

The financial statements for the year ended 31st March 2024 were approved by the Board of Directors on the 02nd May 2024.

a. Basis Of Preparation Of Financial Statements:

Compliance with Ind AS

The Company has adopted Indian Accounting Standards (the "Ind AS”) notified under Section-133 of the Companies Act, 2013 (the "Act”), read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act as applicable. The Standalone Financial Statements provide comparative information in respect of previous year.

i. Historical Cost Convention

These Financial Statements have been prepared under the historical cost convention on the accrual basis except for certain financial assets and liabilities (including derivative instruments) which are measured at fair value.

ii. Current versus Non-Current Classification:

All assets and liabilities have been classified as current or non-current as per the company''s operating cycle and other criteria set out in the schedule III to the Companies Act 2013. Based on the nature of products and services and their realisation in cash and cash equivalents the company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

iii. Functional and Presentation Currency :

The Financial Statements are presented in Indian Rupees (*) which is the Company''s functional and presentation currency, and all amounts are rounded to the nearest rupees in lakhs.

2. Summary of Significant Accounting Policies

a. Property, Plant & Equipment:

i. Recognition and measurement

Property, Plant & Equipment are stated at cost less accumulated depreciation and impairment losses, if any.

Costs include costs of acquisitions or constructions including incidental expenses thereto, borrowing costs and other attributable costs of bringing the asset to its working condition for its intended use and are net of available duty/tax credits.

Subsequent expenditure relating to Property, Plant & Equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. All other repair and maintenance costs are recognised in Statement of Profit & Loss as incurred.

Gains or losses arising from discard/sale of Property, Plant & Equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of Profit & Loss when the asset is discarded/sold.

ii. Depreciation

The company depreciates property plant and equipment on straight-line-method (sLm) as per the useful life of assets, as estimated by the management/ independent professional, which are generally in line with Schedule-II to the Companies Act, 2013

b. Intangible assets:

i. Recognition and measurement

Intangible assets acquired separately are measured on initial recognition at cost.

Subsequent to initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. In case of internally generated intangible asset arising from development activity is recognised at cost only if its probable that the asset would generate future economic benefit and the expenditure attributable to said assets during its development can be measured reliably. Capital expenditure on purchase and development of identifiable on monetary assets without physical substance is recognised as Intangible Assets when:

It is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the cost of the asset can be measure reliably.

ii. Depreciation

The company Amortises/Depreciates Intangible Assets on the basis of estimated useful lives of Intangible assets are as follows:

Software acquired.

Particulars	Useful life
Software License		2 Years
Software internally developed
Particulars	Useful life
Product/Platform		4 Years

c. Impairment:

The carrying amount of Property, Plant & Equipment, Intangible Assets and Investment Property are reviewed at each Balance Sheet date to assess impairment, if any based on internal/external factors. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value . An impairment loss is recognised as an expense in the Statement of Profit & Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been an improvement in recoverable amount.

d. Foreign Currency Transactions:

i. Functional and Presentation Currency:

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (“functional Currency”). The financial Statements are presented in Indian rupee (INR), which is the company''s functional and presentation currency.

ii. Transactions and Balances:

Transactions in foreign currencies are translated into functional currency of the Company at rates prevailing at the date of the transaction. Foreign exchange gain or losses resulting from the settlement of such transactions and from translation of monetary assets and liabilities denominated in foreign currencies at the year-end exchange rates are generally recognised in Profit & Loss and reported with in Foreign exchange gain/(losses), except when deferred in other comprehensive income as qualifying cashflow hedges.

Non-monetary items that are measured in times of historical cost in a foreign currency are translated using the exchange rates at the dates of the transaction. Non-monetary items (other than investment in shares of Subsidiaries, Joint Ventures, and Associates) carried at Fair Value that are denominated in foreign currencies are translated at the exchange rates prevailing at the date when the Fair Value was determined. Exchange component of the gain or loss arising on fair valuation of nonmonetary items is recognised in line with the gain or loss of the item that gave rise to such exchange difference.

e. Revenue Recognition:

The Company derives revenue primarily from software development, maintenance of software/hardware and allied services, sale of software licenses, subscriptions for services and ecommerce.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold, and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.

The Company recognised revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company''s activities as described below.

The Company computes its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

i. Time and Material Contracts

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

ii. Fixed- Price Contracts:

Revenues from fixed-price contracts, including IT Infrastructure development and integration contracts are recognized using the “percentage of-completion” method. Percentage of completion is determined based on efforts or costs incurred to date as a percentage of total estimated efforts or costs required to complete the project. The efforts or cost expended are used to measure progress towards completion as there is a direct relationship between input and productivity. If the Company does not have a sufficient basis to measure the progress of completion or to estimate the total contract revenues and costs, revenue is recognized only to the extent of contract cost incurred for which recoverability is probable.

When total cost estimates exceed revenues in an arrangement, the estimated losses are recognized in the statement of income in the period in which such losses become probable based on the current contract estimates.

Advance payments received from customers for which no services have been rendered are presented as Advance from customers.

iii. Services Contracts:

Revenue from services contracts is recognized ratably over the period of the contract using the percentage of completion method. When services are performed through an indefinite number of repetitive acts over a specified period of time, revenue is recognized on a straight-line basis over the specified period unless some other method better represents the stage of completion. In certain projects, a fixed quantum of service or output units is agreed at a fixed price for a fixed term. In such contracts, revenue is recognized with respect to the actual output achieved till date as a percentage of total contractual output. Any residual service unutilized by the customer is recognized as revenue on completion of the term.

iv. Sale of Licenses & Subscriptions

Revenue from sale of licenses and support are recognized when the significant risks and rewards of ownership have been transferred to the buyer, continuing managerial involvement usually associated with ownership and effective control have ceased, the amount of revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenues from Sale of Subscriptions shall be recognized linear to the period of the contract.

v. Ecommerce/Retail

Revenue from Ecommerce transactions i.e., sale of third-party products/applications/services shall be recognized on realization of the merchandise.

vi Other Income

Profit on Sale of investments is recorded on transfer of title from the company and is determined as the difference between the sale price and the carrying amount of the investment.

Dividend income is recognized when the company''s right to receive dividends is established.

Interest income on time deposits is recognized using time proportion basis taking into account the amount outstanding and applicable interest rates.

f. Income Tax:

Income Tax comprises current and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws, prevailing in the respective tax, jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date.

The company offsets current tax assets and current tax liabilities, where it has legally enforceable right to set off the recognised amounts and where it intends to settle on net basis, or to realise the asset and liability simultaneously.

Deferred tax is provided on temporary difference arising between the tax bases of assets & liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax is measured using the tax rate that are expected to apply in the year when the asset is realized, or the liability is settled based on the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized directly in equity/other comprehensive income (OCI) is recognised in equity/ other comprehensive income (OCI) and not in the statement of Profit & Loss. Deferred tax asset is recognised to the extent that it is probable that sufficient future taxable profit will be available against which the deductible temporary differences and the carry forward unused tax credits and unused tax losses can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period.

g. Provisions, Contingent Liabilities, Commitments and Contingent Assets:

Provisions are recognised for present obligations of uncertain timing or amount arising as a result of a past event where a reliable estimate can be made, and it is probable that an outflow of resources

embodying economic benefits will be required to settle the obligation.

Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability and commitments, unless the probability of outflow of resources embodying economic benefits is remote. Contingent assets are not recognised but disclosed in the Financial Statements when an inflow of economic benefits is probable.

h. Earnings per Share:

Basic earnings per share is computed using the net profit/(loss) for the year (without taking impact of OCI) attributable to the equity shareholders and weighted average number of shares outstanding during the year. The weighted average numbers of shares also include fixed number of equity shares that are issuable on conversion of compulsorily convertible preference shares, debentures, or any other instrument, from the date consideration is received (generally the date of their issue) of such instruments. The diluted EPS is calculated on the same basis as basic EPS after adjusting for the effect of potential dilutive equity shares unless impact is anti-dilutive.

i. Segment Reporting:

In accordance with the requirement of AS-108 on Segment reporting, the company has determined its business segment as Computer Programming Consultancy and related services. There are no other primary reportable segments. Thus, the segment revenue, segment result, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of charge for depreciation during the year are all reflected in the financial statement of the company for the year ended 31st March 2024.

There are no secondary reportable segments (Geographical Segments).

j. Financial Assets

Initial Recognition and Measurement: All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTP L), transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price. "

"Revenue Recognition: Revenue towards

satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold, and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.

Financial asset at fair value through other comprehensive income:

A financial asset is subsequently measured at fair value through other comprehensive income which is held with objective to achieve both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give

rise on specified dates to cash f lows that are solely payments of principal and interest on the principal amount outstanding. The Company has made an election for its investments which are classified as equity instruments (other than investment in shares of Subsidiaries, Joint Ventures, and Associates) to present the subsequent changes in fair value through profit and loss account.

Financial assets at fair value through profit or loss:

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss. The Company has elected to measure its investments, which are classified as equity instruments (other than investment in shares of Subsidiaries, Joint Ventures, and Associates) at fair value through profit and loss account.

(iii) Impairment of financial assets:

The company assesses at each balance sheet date whether a financial asset is impaired. The company recognises the loss if any on such impairment in accordance with IND AS 109.

(iv) Financial Liabilities:

Financial liabilities are subsequently carried at amortized cost using the effective interest method. Financial liabilities at fair value through profit and loss includes financial liability held for trading and financial liability designated upon initial recognition as at fair value through profit and loss.

k. Investment in Subsidiaries, Associates and Joint

Ventures:

Investment in equity shares of subsidiaries, associates and joint ventures is carried at cost in the standalone financial statements.

l. Earnings per share:

The basic earnings per share is computed by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share and also the weighted average number of equity shares which would have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period unless they have been issued at a later date.

m. Employee Benefits:

Contributions to Provident and Employee State Insurance etc. accruing during the accounting period are charged to the statement of Profit and Loss. Provision for liabilities in respect of gratuity are accrued and provided at the end of each accounting period. Gratuity liability towards existing eligible employees will be met by the fund administered by LIC.

3. Critical Accounting - Estimates, Assumptions and Judgements:

The preparation of Financial Statements in conformity with Indian Accounting Standards (Ind AS) requires management to make judgements,

estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures at the date of the Financial Statements. The judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision affects both current and future years and if material, their effects are disclosed in the notes to the Financial Statements. Actual results could vary from these estimates.

The company has given due consideration of the possible effects that may result from the pandemic related to covid-19 on the carrying number of receivables and unbilled revenues.

Estimates and underlying assumptions are reviewed on a regular basis. The following areas of revenues, expenses, assets, and liabilities are likely to be impacted by events which give rise to revision of estimates made.

(i) Revenue

The company uses estimates for computation of costs and efforts as a proportion of total costs and efforts made. These estimates are then used to derive the progress made towards completion of the contract.

(ii) Provisions/Expenses

Provision for future expenses, liabilities are made on some occasions on the basis of pending effort for completion.

(iii) Property, Plant & Equipment:

External advisor and/or internal technical team assesses the remaining useful life and residual value of property, plant & equipment. Management believes that the assigned useful lives and residual values are reasonable.

(iv) Intangibles:

Internal technical and user team assess the remaining useful lives of intangible assets. Management believes that assigned useful lives are reasonable. All intangibles are carried at net book value on transition.

(v) Income taxes

The provision for income tax at the end of each period is made on the basis of estimates on revenues and the receivables.

(vi) Other Estimates:

The Company estimates the un-collectability of accounts receivables by analysing historical payment patterns, customer concentrations, customer creditworthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.

---

Mar 31, 2016

Company Overview

Cybermate is a Mid Sized IT Services company engaged in custom built software development, System Integration Services, Network

& Surveillance, building and selling own Products, reselling third party products, business platforms such as analytics, social media, mobile applications, cloud based solutions and outsourced business processes etc. Cybermate has over the years built and sold products for general IT use and domain specific solutions for Health Care, Telecom, Engineering, Energy and Retail.

Cybermate is a public limited company incorporated in India and has its registered and corporate office at Hyderabad, Telangana. The company is listed on BSE Limited.

Significant Accounting Policies

1. Basis of preparation of financial statements:

These financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (IGAAP) under the historical cost convention on accrual basis with the exception to insurance claims, export incentives, interest on calls in arrears and interest on overdue receivables which are accounted for on cash basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act 2013(the Act) read with rules 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act to the extent notified and applicable and guidelines issued by the Securities and Exchange Board of India (SEBI).

2. Use of estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Practices requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures relating to contingent liabilities as at the date of the Financial Statements and reported amounts of Income and Expenses during the period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

3. Revenue recognition

Revenue from the software development on time and material contracts is recognized based on the software developed and billed in accordance with the terms and specific contracts. Revenue from a fixed price contract is recognized on the basis of milestones achieved in the performance of the contracts on a Cybermate Infotek Limited

Notes to Financial Statements for the Period ended 31st March, 2016

percentage completion basis.

Revenue from sale of user licenses for software applications/products is recognized on transfer of title in the user license.

Revenue from resale of network and security products and related third party maintenance contracts are recognized upon dispatch.

Revenues from other services are recognized as per the terms of the contract.

Other Income

(i) Profit on sale of investments is recorded on transfer of title from the company and is determined as the difference between the sale price and the then carrying amount of the investment.

(ii) Dividend income is recognized when the Company''s right to receive dividend is established.

(iii) Interest income on time deposits is recognized using the time proportion basis taking into account the amount outstanding and applicable interest rates.

4. Tangible Fixed Assets

Tangible Assets are stated at acquisition cost less depreciation. Cost of tangible assets comprises purchase price, duties , levies and other directly attributable costs of bringing the asset to its working condition less CENVAT credit.

Capital Work in progress includes the cost of fixed assets that are not ready for their intended use at the balance sheet date. Depreciation on Tangible Assets has been provided on the Straight Line Method over their useful lives at the rates prescribed in Schedule II to Companies Act 2013.

5. Intangible Assets

An intangible asset is recognized, when it is probable that the future economic benefits attributable to the assets will flow to the enterprise and where its cost can be reliably measured. The company frequently expends resources, and incurs liabilities, on the acquisition, development, maintenance and enhancement of intangible resources such as scientific or technical knowledge, design and implementation of new process or systems, license, intellectual property, market knowledge and trademarks in order to make software''s and brands. Intangible assets are recorded as per AS26 of IGAAP.

The useful life of all the intangible assets was taken as 10 years as per the managements estimates

6. Investments

Current Investments are carried in the financial Statements at lower of cost or fair value determined on an individual investment basis. Long Term Investments are stated at cost. However provision for diminution in value is made to recognize a decline other than temporary in the value of investments.

7. Inventories

Software Products/ Projects in process are stated at cost.

8. Employee benefits

Contribution to Provident and other funds accruing during the accounting period are charged to the statement of Profit and Loss. Provision for Liabilities in respect of gratuity are accrued and provided at the end of each accounting period.

Gratuity liability towards existing eligible employees will be met by the contribution made to the fund administered by LIC.

9. Foreign currency transactions Initial Recognition Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of the transaction.

Monetary items denominated in foreign currencies at the year-end are restated at year end exchange rates, the resultant gain or loss will be recognized in the statement of profit and loss.

In case of items which are covered by forward exchange contracts the difference and the premium paid on forward contracts is recognized over the life of the contract.

Non Monetary foreign currency items are carried at

cost.

Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the Profit and Loss Account.

10. Taxes on Income

Provision for Income Tax, comprising current tax and deferred tax, is made on the basis of the results of the year.

The provision for current tax is based on the assessable profits determined under the income tax act 1961.

Deferred tax is accounted for by computing tax effect of timing differences which arose during the year and is reversed in subsequent period.

11. Earnings per share

Basic earnings per share are computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

12. Impairment of Assets

The company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

13. Provisions, Contingent Liabilities and Contingent Assets. The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or

---

Mar 31, 2015

1. Basis of preparation of financial statements:

These financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (IGAAP) under the historical cost convention on accrual basis with the exception to insurance claims, export incentives, interest on calls in arrears and interest on overdue receivables which are accounted for on cash basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act 2013(the Act) read with rules 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act to the extent notified and applicable and guidelines issued by the Securities and Exchange Board of India (SEBI).

2. Use of estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Practices requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures relating to contingent liabilities as at the date of the Financial Statements and reported amounts of Income and Expenses during the period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods

Cybermate Infotek Limited

3. Revenue recognition

Revenue from the software development on time and material contracts is recognized based on the software developed and billed in accordance with the terms and specific contracts. Revenue from a fixed price contract is recognized on the basis of milestones achieved in the performance of the contracts on a percentage completion basis.

Revenue from sale of user licenses for software applications/products is recognized on transfer of title in the user license.

Revenue from resale of network and security products and related third party maintenance contracts are recognized upon dispatch. Revenues from other services are recognized as per the terms of the contract.

Other Income

(i) Profit on sale of investments is recorded on transfer of title from the company and is determined as the difference between the sale price and the then carrying amount of the investment.

(ii) Dividend income is recognized when the Company's right to receive dividend is established.

(iii) Interest income on time deposits is recognized using the time proportion basis taking into account the amount outstanding and applicable interest rates.

4. Tangible Fixed Assets

Tangible Assets are stated at acquisition cost less depreciation. Cost of tangible assets comprises purchase price, duties , levies and other directly attributable costs of bringing the asset to its working condition less CENVAT credit.

Capital Work in progress includes the cost of fixed assets that are not ready for their intended use at the balance sheet date. Depreciation on Tangible Assets has been provided on the Straight Line Method over their useful lives at the rates prescribed in Schedule II to Companies Act 2013 as per the table below

5. Intangible Assets

An intangible asset is recognized, when it is probable that the future economic benefits attributable to the assets will flow to the enterprise and where its cost can be reliably measured. The company frequently expends resources, and incurs liabilities, on the acquisition, development, maintenance and enhancement of intangible resources such as scientific or technical knowledge, design and implementation of new process or systems, license, intellectual property, market knowledge and trademarks in order to make software's and brands. Intangible assets are recorded as per AS26 of IGAAP.

Intangible assets are amortized as per AS 26 of IAS. The useful life of all the intangible assets was taken accordingly.

6. Investments

Current Investments are carried in the financial Statements at lower of cost or fair value determined on an individual investment basis. Long Term Investments are stated at cost. However provision for dimunition in value is made to recongise a decline other than temporary in the value of investments.

7. Inventories

Software Products/ Projects in process are stated at cost.

8. Employee benefits

Contribution to Provident and other funds accruing during the accounting period are charged to the statement of Profit and Loss. Provision for Liabilities in respect of gratuity are accrued and provided at the end of each accounting period.

Gratuity liability towards existing eligible employees will be met by the contribution made to the fund administered by LIC.

9. Foreign currency transactions Initial Recognition Transactions denominated in foreign currencies at the year end are recorded at the exchange rate prevailing at the time of the transaction. Monetary items denominated in foreign currencies at the year-end are restated at year end rates.

In case of items which are covered by forward exchange contracts the difference and the premium paid on forward contracts is recognized over the life of the contract.

Non Monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the Profit and Loss Account.

10. Taxes on Income

Provision for Income Tax, comprising current tax and deferred tax, is made on the basis of the results of the year.

The provision for current tax is based on the assessable profits determined under the income tax act 1961.

Deferred tax is accounted for by computing tax effect of timing differences which arose during the year and is reversed in subsequent period.

11. Earnings per share

Basic earnings per share are computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

12. Impairment of Assets

The company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

13. Provisions, Contingent Liabilities and Contingent Assets The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or disclosure is made.

---

Mar 31, 2014

1. Basis of Preparation:

The financial statements are prepared in accordance with generally accepted principles under the historical cost convention on the accrual basis with exception to insurance claims, export incentives, interest on calls in arrears and interest on overdue receivables which are accounted for on cash basis ,and applicable accounting standards notified under Section 211(3C), Companies (Accounting Standards) Rules 2006, as amended, and other relevant provisions of the Companies Act 1956.

All the assets and liabilities have been classified as Current or Non Current as per the company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act 1956.

2. Use of Estimates:

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

3. Revenue Recognition:

Revenue from software development and allied services compromises of revenues earned from time and material and fixed price contracts. Revenue from time and material contracts is recognized as the related services are performed. Revenue from fixed price contracts are recognized using the proportionate completion method of accounting.

Revenue from the sale of user licenses for software applications is recognized on transfer of title in the user license.

Revenue from resale of network and security products and related third party maintenance contracts are recognized upon despatch..

4. Tangible Fixed Assets:

Tangible assets are stated at acquisition cost less depreciation. Cost of tangible assets comprises purchase price, duties, levies and other directly attributable costs of bringing the asset to its working condition less CENVAT credit.

Capital Work-in-Progress includes the costs of Fixed Assets that are not ready for their intended use at the Balance Sheet Date.

Depreciation on Fixed Assets is provided on the Straight Line Method over their useful lifes at rates prescribed in Schedule XIV of the Companies Act, 1956.

5. Intangible Assets:

An intangible asset is recognized when it is probable that future economic benefits attributable to the assets will flow to the enterprise and where its costs can be reliably measured.

The estimated useful life and rates of deprecation for various fixed assets are as flows:

Class of Asset Useful Life Depreciation

Intangible Assets 10 years 10%

Web Development 4 years 25%

6. Investments:

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long – term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

7. Inventories:

Software products / projects in process are stated at cost.

8. Employee Benefits:

Contribution to provident and other funds accruing during the accounting period are charged to the Statement of Profit and Loss. Provision for liabilities in respect of gratuity are accrued and provided at the end of each accounting period.

9. Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of the transaction.

Monetary items denominated in foreign currencies at the yearend are restarted at year-end rates. In case of items which are covered by Forward Exchange contracts the difference and the premium paid on forward contracts is recognized over the life of the contract.

Non Monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the profit and loss account.

10. Taxes on Income:

The provision for taxation is based on the assessable profits determined under the Income Tax Act, 1961. Deferred tax is accounted for by computing tax effect of timing differences, which arose during the year and is reversed in subsequent periods.

11. Earnings per Share:

Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

12. Impairment of Assets:

The company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

13. Provisions, Contingent Liabilities and Contingent Assets:

Probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or disclosure is made.

---

Mar 31, 2013

1. Basis of preparation of financial statements:

The financial statements have been prepared to comply in all material respects in with the Indian Generally Accepted Accounting Principles (IGAAP) in India under the historical cost basis. IGAAP comprises mandatory accounting standards as specified in Companies Accounting Standards notified under Companies (Accounting Standards ) Rules, 2006, (as amended), and relevant provisions of Companies Act, 1956. The financial statements are prepared under the historical cost convention and accrual basis as a going concern i.e with revenues and expenses recognized on accrual basis with the exception of insurance claims, export incentives, interest on calls in arrears and interest on overdue receivables which are accounted for on cash basis.

2. Use of estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Practices requires Management to make estimates and assumptions that affect the reported Assets and Liabilities and disclosures relating to contingent assets and liabilities as at the date of the Financial Statements and reported amounts of Income and Expenses during the period. Although these est imates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

3. Revenue recognition

Revenue from the software development on time and material contracts is recognized based on the software developed and billed in accordance with the terms and specific contracts. Revenue from a fixed price contract is recognized on the basis of milestones achieved in the performance of the contracts on a percentage completion basis.

4. Fixed Assets and Depreciation

Fixed Assets are stated at cost less depreciation. Cost includes freight, installation costs, duties and taxes and other incidental expenses incurred during the construction / installation.

Depreciation on Fixed Assets has been provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 on a single-shift working basis. Depreciation is charged on a pro rata basis.

An intangible asset is recognized, when it is probable that the future economic benefits attributable to the assets will flow to the enterprise and where its cost can be reliably measured. The company frequently expends resources, and incurs liabilities, on the acquisition, development, maintenance and enhancement of intangible resources such as scientific or technical knowledge, design and implementation of new process or systems, license, intellectual property, market knowledge and trademarks in order to make software''s and brands. Intangible assets are recorded as per AS26 of IGAAP.

Intangible assets are amortized as per AS 26 of IAS. The useful life of all the intangible assets was taken accordingly as follows:

For Intangible Fixed Assets the useful life is taken as 10 years and which is within the limit mentioned in the AS - 26.

For the Web Development the useful life is taken as 4 years and which is within the limit mentioned in the AS 26.

5. Expenditure

The cost of software user licenses purchased for software development and the rendering of IT services is charged to revenue in the year the software is acquired at the time of acquisition. Provisions are made for all known losses and liabilities, future unforeseeable circumstances that may affect the profit on fixed-price software development contracts and also towards likely expenses for providing post-sales client support.

6. Investments

Long term investments are stated at cost. However, provision for diminution is made to recognise any decline, other than temporary, in the value of long term investments. Current Investments are stated at the lower of cost and fair value.

7. Inventories.

Software Products/ Projects in process are stated at cost. Development Costs of products are amortized over a period of five years or earlier on the basis of Management''s evaluation.

8. Retirement benefits.

Gratuity liability towards existing eligible employees will be met by the contribution made to the fund administered by LIC, The company has settled the employees dues from its resources who left the services of the company. Hence, during the year no contributions were made in the current year.

9. Foreign currency transactions Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Non- monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non- monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange Differences

Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial expenses in the year in which they arise.

Exchange Contracts not intended for trading or speculation purposes

The premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.

10. Income Tax

Provision for Income Tax, comprising current tax and deferred tax, is made on the basis of the results of the year.

In Accordance with Accounting Standard 22 Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and the tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax assets arising from temporary timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in the future.

11. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

12. Cash flow statement

Cash flows are reported taking the indirect method, wherein net profit before tax is adjusted for the transactions of non-cash nature and others or other accruals of past or future receipts and / or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

---

Mar 31, 2012

1. Basis of preparation of financial statements:

The financial statements have been prepared to comply in all material respects in with the Indian Generally Accepted Accounting Principles (IGAAP) in India under the historical cost basis. IGAAP comprises mandatory accounting standards as specified in Companies Accounting Standards notified under Companies (Accounting Standards ) Rules, 2006, (as amended), and relevant provisions of Companies Act, 1956. The financial statements are prepared under the historical cost convention and accrual basis as a going concern i.e with revenues and expenses recognized on accrual basis with the exception of insurance claims, export incentives, interest on calls in arrears and interest on overdue receivables which are accounted for on cash basis.

2. Use of estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Practices requires Management to make estimates and assumptions that affect the reported Assets and Liabilities and disclosures relating to contingent assets and liabilities as at the date of the Financial Statements and reported amounts of Income and Expenses during the period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

3. Revenue recognition

Revenue from the software development on time and material contracts is recognized based on the software developed and billed in accordance with the terms and specific contracts. Revenue from a fixed price contract is recognized on the basis of milestones achieved in the performance of the contracts on a percentage completion basis.

4. Fixed Assets and Depreciation

Fixed Assets are stated at cost less depreciation. Cost includes freight, installation costs, duties and taxes and other incidental expenses incurred during the construction / installation.

Depreciation on Fixed Assets has been provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 on a single-shift working basis. Depreciation is charged on a pro rata basis.

An intangible asset is recognized, when it is probable that the future economic benefits attributable to the assets will flow to the enterprise and where its cost can be reliably measured. The company frequently expends resources, and incurs liabilities, on the acquisition, development, maintenance and enhancement of intangible resources such as scientific or technical knowledge, design and implementation of new process or systems, license, intellectual property, market knowledge and trademarks in order to make software's and brands. Intangible assets are recorded as per AS26 of IGAAP.

---

Mar 31, 2010

I. Accounting Convention

Financial statements are prepared under the historical cost convention on the basis of a going concern with revenues and expenses recognized on accrual basis-with the exception of insurance claims, export incentives, interest on calk in arrears and interest on over due receivables which are accounted for on cash basis.

ii. Revenue Recognition.

Revenue from software development on time and material contracts is recognized based on software developed and billed in accordance with the terms of specific contracts. Revenue from a fixed price contract is recognized on the basis of milestones achieved in the performance of the contracts on a percentage completion basis.

iii. Fixed Assets and Depreciation

Fixed Assets are stated at cost less depreciation. Cost includes freight, installation costs, duties and taxes and other incidental expenses incurred during the construction / installation.

Depreciation on Fixed Assets has been provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV. to the Companies Act, 1956 on a single-shift working basis. Depreciation is charged on a prorata basis.

iv. Expenditure

The cost of software user licenses purchased for software development and the rendering of IT services is charged to revenue in the year the software is acquired at the time of acquisition. Provisions are made for all known losses and liabilities, future unforeseeable circumstances that may affect the profit on fixed-price software development contracts and also towards likely expenses for providing post-sales client support.

v. Investments

Long Term Investments are stated at cost.

vi. Inventories.

Software Products/ Projects in process are stated at cost Development Costs of products are amortised over a period of five years or earlier on the basis of Managements evaluation.

vii.. Retirement benefits.

Gratuity liability towards existing eligible empbyees will be met by the contribution made to the fund administered by LIC, since, the. company has settled the empbyees dues from its resources who left the services of the company. Hence, during the year no contributions were made

viii. Foreign currency transactions

Foreign Exchange transactions are recorded at the spot rate prevailing at the beginning of the concerned month. Year-end balances of foreign currency assets and liabilities are restated at the cbsing rate/forward contract rate as applicable. Gains/Losses arising out of fluctuations in the exchange rates are recognized in Profit & Loss A/c.

ix. Deferred Tax liability

The Company is a 100% EOU engaged in export of computer software and is claiming exemption of its business income under Section 10B. Hence, Accounting Standard on Deferred Tax liability is not applicable in so far as it relates to the business income of the company. However, with respect to other income, there is no timing or permanent deference and hence provision for tax is recognized in the year in which it arises.

x. Miscellaneous Expenditure

Expenses in connection with public issue of shares and preliminary expenses are being Written off over a period of 10 years.