1. Preparation and brsentation of financial statements:

1. BASIS OF brPARATION:

The financial statements are brpared under the historical cost convention, in accordance with Indian Generally Accepted Accounting Principles (GAAP), the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, as adopted consistently by the company.

2. USE OF ESTIMATES:

The brsentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the results are known / materialized.

2. Fixed Assets & Debrciation:

i. Fixed assets are stated at the cost, less accumulated debrciation and impairment losses. Cost comprises purchase price, duties, levies and any other costs relating to the acquisition and installation of the assets. Interest and financing charges on borrowed funds, if any, used to finance the acquisition of fixed assets, which take substantial time until the assets are ready for use, are capitalized and included in the cost of the asset.

ii. Capital work-in-progress towards the acquisition of fixed assets, and the cost of assets not put to use before the year-end, are disclosed under capital work-in-progress.

iii. Fixed Assets acquired under finance lease are capitalized at the lower of the fair value and the brsent value of the minimum lease payments.

iv. Debrciation on Fixed Assets is provided to the extent of debrciable amount on Straight Line Method (SLM) based on the useful life of the assets as brscribed in Schedule II of the Companies Act, 2013 except in case of assets pertaining to Nagaswan project where assets other than computers are debrciated over a period of 60 months and computers are debrciated over a period of 36 months which is the estimated useful life of the Assets respectively and in respect of assets pertaining to National Population Register (NPR) project is debrciated over a period of 36 months which is the estimated useful life of the Assets.

v. Capital Expenditure incurred on Projects Division is written-off over the tenure of the project period for the projects where the company is required to transfer the assets to the customer at the end of the project period and for other capital assets the debrciation is provided as per the clause (iv) above.

vi. Assets acquired under finance lease, where there is reasonable certainty that the company shall obtain ownership of the assets at the end of the lease term, such assets are debrciated as per the clause (iv) above.

3. Revenue Recognition:

The company generally follows mercantile system of accounting and recognizes significant items of income on accrual basis.

a) Revenue from sale of goods is recognized on transfer of significant risks and reward of ownership in the goods to the customers.

b) Revenue from sale of software products is recognized when the sale is completed with the passing of title to the customers and revenue from software development on the time-and-material basis is recognized based on software developed and billed to clients as per the terms of contracts.

c) Revenue from Technical Services is recognized on a pro-rata basis over the period in which such services are rendered.

d) Revenue from Maintenance Contracts is recognized on a pro-rata basis over the period in which such services are rendered.

e) Revenue from Agency Commission is recognized as and when it is receivable.

f) Interest Income on term deposits is recognized using the time-proportion method, based on interest rates implicit in the transaction.

g) Revenue from Projects Division is recognized on pro-rate basis as per the terms of the contract over the life of the project.

h) Other items of income are accounted as and when right to receive arises.

i) Unbilled revenues rebrsent cost and earnings in excess of billings as at the balance sheet date.

j) Income on investments and dividends on units is recognized as and when right to receive the same is established.

Expenditure:

Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities. The cost of software purchased for use in software development and services is charged to revenue in the same year. Provisions for deductions towards under performance of service level deliverables on services are estimated by the management, determined on the basis of past experience.

Inventories:

Items of inventories are measured at lower of cost or net realizable value. Cost of inventories comprise of all cost of purchase, cost of conversion and other cost incurred in bringing the inventory to their brsent location and condition. Raw materials and the finished goods are valued on the basis of First in First out (FIFO) method.

Investments:

i. Long-Term Investments are carried at cost, and provision is made to recognize any decline, other than temporary, in the value of such investment.

ii. Current investments are carried at the lower of cost and quoted/fair value, computed category wise. Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

Benefits to employees:

i. Short-Term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services are rendered.

ii. Post employment benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the brsent value of the amount payable to the amount payable towards contributions. The brsent value is determined using the market yields of government bonds, at the balance sheet date, as the discounting rate.

iii. Other long-term/short-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the market yields on government bonds, at the balance sheet date, as the discounting rate.

iv. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account.

v. Provident Fund:

The company makes contribution to Provident Fund administered by the Central Government under The Employees Provident Funds and Miscellaneous Provisions Act, 1952.

Foreign Currency transaction:

i. Transactions denominated in foreign currencies are normally recorded at the exchange rate brvailing at the time of transaction.

ii. Monetary items denominated in foreign currencies at the year-end and not covered by forward exchange contracts are translated at the rates of exchange at the balance sheet date and resulting gain or loss is recognized in the profit and loss account.

Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.

Product Warranty Expenses:

Liabilities for warranties are recognized at the time, the claim is passed. The necessary provisions are made with respective to warranties claimed and passed pertaining to the year, as are received up to the end of one month from the close of the year.

Claims Receivable:

Claims receivable are accounted for depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

Income Tax:

Provision for income tax is made for both current and deferred taxes. Provision for current Income tax is made at current tax rates based on assessable income. Deferred income taxes are recognized for the future tax consequences attributable to timing differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in tax rates was recognized using the tax rates and tax laws that have been enacted or substantively enacted by balance sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Earnings per share:

1. Basic Earnings per Share: In determining Basic earnings per share, the company considers the net profit after tax and includes the post-tax effect of any extra-ordinary items. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the year.

2. Diluted Earnings per share is calculated by dividing the net earnings available to existing and potential Equity Shareholders by aggregate of the weighted average number of Equity Shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could 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 issued at a later date.

The number of shares and potential dilutive equity shares are adjusted for any bonus issues.

Leases:

a) FINANCE LEASE:

1. Assets given under finance lease are recognized as a sale transaction in the Profit and Loss Account and are treated like other outright sales.

The Finance Lease amount is shown as the receivables at an amount equal to the net investment in the lease.

Finance lease income is recognized over the period of the lease so as to yield a constant rate of return on the net investment in the lease.

2. Assets acquired under leases where the company has substantially transferred all the risk and rewards of ownership are classified as finance lease. Such assets are capitalized at the inception of the lease at the lower of fair value or brsent value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

b) OPERATING LEASE:

1. Rentals are expensed with reference to the Lease terms and other considerations. Sales:

Sales are stated at net of returns and exclusive of sales tax.

32. Segmental Reporting:

The Company's operations brdominantly relate to providing Integrated Solutions, Technical Division, Projects Division and Software Development Services to customers globally operating. Accordingly, the primary basis of segmental information setout in these financial statements, and secondary segmental reporting is performed on the basis of the geographical location.

Income & Direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of the costs are allocated on the bases of available information. Certain expenses, which form a significant component of total expenses, are not specifically allocable to specific segments. The Company believes that it is not practicable to provide segmental disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocable" and directly charged against total income.

1. Figures for the corresponding year ended March 31, 2014, wherever necessary, have been regrouped, recast, rearranged as per the Schedule III of Companies Act, 2013.

As per our report of even date attached

For NARVEN ASSOCIATES

Chartered Accountants

Firm Reg. No. 05905S

For and on behalf of the Board of Directors

Sd/- (C.A. G.V.Ramana)

Partner

Membership No:025995

Sd/- (T. Gopichand)

Vice chairman & Managing Director

Sd/-(K. Rama Rao)

Wholetime Director

Sd/- (CA. B.D. Naidu)

Chief Financial Officer

Sd/- (CS. V. Srilakshmi)

Company Secretary

Place: Hyderabad

Date:30.05.2015