Note 1. Significant Accounting Policies

a. Company Overview

Alankit Limited ("the Company") is a Listed Company. It is incorporated under the Indian Companies Act, 1956 and brviously known as "Euro Finmart Limited" The Company is primarily engaged enrolment agency for e-Governance service business and e-Governance products trading.

b. Basis of Preparation of Financial Statement

The financial statement have been brpared and brsented on the accrual basis of accounting and comply with the Accounting Standards referred to in Section 133 of the Companies Act, 2013, the relevant provisions of the Companies Act, 2013 and other accounting principles in accordance with Generally Accepted Accounting Principles (GAAP), to the extent applicable.

c. Use Of Estimates

The brparation of financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that effect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Actual results in future could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

d. Fixed Assets

1. Tangible Assets

Tangible fixed assets are carried at cost of acquisition less accumulated debrciations and/or accumulated impairments loss, if any, The Cost of an item of tangible fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bring the asset to its working condition for its intended use; any trade discount and rebates are deducted in arriving at the purchase price. Subsequent expenditures related to an item of tangible fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its brviously assessed standard of performance. Exchange difference pertaining to long term foreign currency monetary items that are related to acquisition of debrciable assets are recognized as an expense in the Statement of Profit and Loss.

2. Intangible Assets

According to Accounting Standard 26 on "Intangible Assets" brscribed under the Companies (Accounting Standards) Rules 2006, in case of an expenditure incurred by the company which may provide future economic benefits to the company, however an intangible assets in the form of Goodwill has been acquired during the year that can be recognized, the amortization expense is recognized as an expense in the statement of Profit and Loss.

e. Debrciation

Debrciation on tangible fixed assets is calculated on a Written Down Value(WDV) basis using the rates arrived at based on the useful life estimated by the management or those brscribed under the Schedule II of the Act whichever is lower. If the managements estimate of the useful life of a tangible fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter then that envisaged in the aforesaid schedule debrciations is provided at a higher rate based on the Managements estimate of the useful life and remaining useful life. The Company has used the following rates to provide debrciation on its fixed assets:

2. Fixed assets costing Rs. 5,000/- on less are fully debrciated over a period of twelve months. Debrciation is provided on a pro-rata basis i.e. from the date on which asset is ready for use. Debrcation for the year is recognized in the Statement of Profit and Loss. The useful lives are reviewed by the Management at each financial year-end and revised, if appropriate. In case of a revision, the unamortized debrciable amount is charged over the revised remaining useful life. A tangible fixed asset is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Losses arising from retirement or gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the Statement of Profit and Loss.

f. Amortization Of Intangible Asset

Intangible assets are amortized over the respective individual estimated useful lives (Mentioned Below) on Straight Line Method basis, commencing from the date the asset is available to the company, further amortization is done on a pro rata basis i.e. from the date on which the intangible asset is acquired.

Intangible Asset Class Estimated Useful Life(Year)

Software 3

Goodwill 5

Inventories are valued at lower of Cost or estimated realizable value as per the requirements of Accounting Standard - 2 "Valuation of Inventory", brscribed under the Companies (Accounting Standards) Rule 2006.

h. Foreign Currency Transactions:

1. Transactions denominated in foreign currencies are recorded at the exchange rate brvailing on the date of the transaction.

2. Monetary assets & liabilities denominated in foreign currencies, exchange differences arising out of settlement are recognized in statement of profit and loss. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the exchange rates on that date, the resultant exchange differences are recognized in the statement of profit and loss.

3. Non monetary foreign currency items are carried at cost.

4. Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the statement of profit and loss except in case of long term liabilities, where they relate to acquisition of fixed assets, in which they are adjusted to the carrying cost of such assets.

i. Revenue Recognition

1. Revenue from sale of goods/products are recognized in accordance with Accounting Standard-9 viz, when the seller has transferred to the buyer, the property in the goods for a price and/or significant risk and rewards of ownership have been transferred to the buyer, and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sales of good and regarding its collection.

2. The amount recognized as revenue is exclusive of sales tax, valued added tax(VAT) and service tax and is net of return, trade discount and quantity discounts, but inclusive of excise duty.

3. Dividend Income is recognized when the Company's right to receive dividend is established by the reporting date.

4. Interest Income is recognized on a time proportionate basis taking into account the amount outstanding and the applicable interest rate, Interest Income is included under the head " other income" in the Statement of profit and loss.

5. Revenue from services is recognized on rendering of services to the customers based on contractual arrangements. The revenue is recorded exclusive of service tax.

j. Employee Benefits:

1. Short term employee benefits-

Short term employee benefits payable with in twelve months of receiving employee services such as salary/wages/bonus and exgratia are recognized as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered by employees.

2. Post-employment benefits-

i) Providend and family pension fund-

The eligible employees of the company are entitled to receive post employment benefits in respect of provident and family pension fund in which both the employee and the company make monthly contribution at a specified percentage of the employee's eligible salary (currently 12% of the employee's eligible salary). The contributions are made to Regional Provident Fund Commissioner(RPFC) which are charged to the statement of profit and Loss as incurred.

ii) Gratuity.

The Company has an obligation towards gratuity a defined retirement plan covering eligible employees. The plan provides a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15days salary payable for each completed year of service or part thereof in excess of six month. Vesting occurs upon completion of five years of service. Separate actuarial valuations is carried out for gratuity liability using the projected unit credit method. Actuarial gains and losses for the gratuity liability are recognized full in the period in which they occur in the statement of profit and loss.

k. Provisions, Contingent Liabilities And Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources, Contingent Liabilities are not recognised but are disclose in the financial statements. Contingent Assets are neither recognised nor disclosed in the financial Statements.

l. Taxation

1. Provision for current taxation is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961

2. Deferred tax is recognized, subject to the consideration of prudence on timing difference being the differences between taxable income and accounting income that originates is one period and are capable of reversal in one or more subsequent periods.

3. Minimum alternative tax(MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay income tax computed under MAT, during the period that MAT is permitted to be set off under the Income Tax Act, 1961(Specified period). In the year, in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the guidance note issued by the Institure of Chartered Accountants of India(ICAI), the said asset is created by way of a credit to the profit and loss account and shown as MAT credit entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay income tax higher than MAT during the specified period.

m. Impairment Of Assets

The carrying amount of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors, an impairment loss is recognized wherever the carrying amount of an assets exceeds its recoverable amount.

n. Investments

Long-term investments are stated at the cost, net of amount written-off, less provision for diminution in value other then temporary. Investments, that are readily realized and intended to be held for not more than a year from the date of investment are classified as current investments. Current investments are stated at lower of cost and fair value computed script wise.

o. Cash Flow Statement

Cash Flows are reported using the indirect method as set out in the Accounting Standard - 3 on "Cash flow Statement" brscribed under the companies (Accounting Standards) Rules, 2006, whereby net profit before tax is adjusted for the effects of the transactions of non-cash nature and any deferrals or accruals of the past or furture cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated, Cash and cash equivalents for the purpose of "Cash Flow Statement" comprise cash at bank and in hand, funds in transit and demand deposits with banks having maturity of less than 3 Months. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

p. Share issue expenses

Expenses related to issue of equity and equity related instruments are charged to Profit and Loss as a proportion of 1/10th of the total issue expense each year starting from the year in which expense occur.

q. 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 period.

For the Purpose of calculation of diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted number of equity shares outstanding during the period are adjusted for the effects of all potentially dilutive equity shares.

NOTE 2.20 CONTINGENT LIABILITY

Bank guarantees issued in favour of Oriental Bank of Commerce (for UID Project) Rs.37,75,200/- & in favour of UIDAI Rs.2,00,000/-.(Previous year Rs.37,75,200/- & Rs.2,00,000/- respectively)

Note 2.1 Employee Benefit Obligations:

The company is depositing contribution in respect of employees covered under Provident Fund Act, 1952 on monthly accrual basis with the "Statutory Provident Fund" which has been charged to the profit & loss account

Note 2.2

Purchases of goods in foreign exchange current year Rs.2,92,68,462/- (brvious year Nil).

Note 2.3

Figures for brvious year have been regrouped / rearranged wherever considered necessary.

Note 2.4

Paise have been rounded off to the nearest rupee.

In terms of our report attached.

For Krishan K. Gupta & Co.

Chartered Accountants

FRN No.000009N

K. K. Gupta

Proprietor

M. No. 8311

Alok Kumar Agarwal Chairman DIN:00586047

Ankit Agarwal Managing Director DIN:01191951

Yash Jeet Basrar Independent Director DIN:00112857

Atul Kumar CFO

Preeti Puri Company Secretary & Wholetime Director Membership No. A29183

Place : New Delhi

Date : 28.05.2016