a) The Company has recognized the following amounts in the Statement of Profit and Loss under the head Companys Contribution to Provident Fund and Other Funds:

                                                                                                                                                                                          (in Lakhs)

Particulars	Current Year	Previous Year
Provident fund	122	104
Superannuation fund	78	65
Total	200	169

b) Defined benefit plan for gratuity as per actuarial valuation on 31stMarch, 2015 :

i) Summary of actuarial assumptions:                                                                                                                  (Rs.in Lakhs)           

Particulars	Current Year	Previous Year
Discount rate	8.03%	9.31%
Rate of return on plan assets	8.03%	8.70%
Salary escalation	8.00%	8.00%
Attrition rate	2.00%	2.00%
Mortality table	Indian Assured Lives Mortality (2006-08)	Indian Assured Lives Mortality (2006-08) Ultimate

ii) Reconciliation of defined benefit obligations:                                                                                            (Rs.in Lakhs)

Particulars	Current Year	Previous Year
Opening defined benefit obligation	1222	1,194
Interest cost	113	95
Current service cost	118	143
Benefits paid	(39)	(22)
Actuarial (gain)/ loss on obligations	358	(188)
Closing defined benefit obligation	1772	1,222

iii) Reconciliation of fair value of plan assets :                                                                                               (Rs.in Lakhs)

Particulars	Current Year	Previous Year
Opening fair value of plan assets	1656	1,542
Expected return on plan assets	144	134
Contributions		20
Benefit paid	(39)	(22)
Actuarial gain/(loss) on plan assets	2	(18)
Closing fair value of plan assets	1763	1,656

iv) Actual return on plan assets:                                                                                                                        (Rs.in Lakhs)

Particulars	Current Year	Previous Year
Expected return on plan assets	144	134
Actuarial gain/(loss) on plan assets	2	(18)
Actual Return on Plan Assets	146	116

v) Amount to be recognised in balance sheet:                                                                                                    (Rs.in Lakhs)

Particulars	Current Year	Previous Year
Present value of funded obligation	1772	1,222
Fair value of plan assets at the end of the year	1763	1,656
Unrecognised past service cost
Net (asset) / liability	9	(434)

vi) Expenses to be recognised in statement of profit and loss :                                                                          (Rs.in Lakhs)

Particulars	Current Year	Previous Year
Current service cost	118	143
Interest cost	113	95
Expected return on plan asset	(144)	(134)
Net Actuarial (gain) / loss to be recognised	356	(169)
(Gain) / Expenses recognised in the statement of profit and loss	443	(65)

vii) Balance sheet reconciliation:                                                                                                                                                                          (Rs.in Lakhs)

Particulars	Current Year	Previous Year
Opening net liability	(434)	(348)
(Gain) / Expenses as above	443	(66)
Employers contribution		(20)
Amount recognised in balance sheet	9	(434)

viii) Description of plan assets (managed by an Insurance Company) :                                                               (Rs.in Lakhs)

Particulars	Current Year	Previous Year
Central and State Govt. securities	Funds deployed by Life Insurance Corporation of India	Funds deployed by Life Insurance Corporation of India
Bonds/ debentures
Equity shares
Others

ix) Experience adjustments:                                                                                                                                      (Rs.in Lakhs)

Particulars	2014-15	2013-14	2012-13	2011-12	2010-11
Defined benefit obligation	1772	1,222	1,193	1,632	1,591
Plan assets	1763	1,656	1,542	2,008	1,032
Surplus / (deficit)	(9)	434	349	376	(559)
Experience adjustment
- On plan liabilities	120	30	3	(98)	531
- On plan assets	2	(18)	(39)	82	-
TOTAL	122	12	(36)	(16)	531

The details of the Companys Post- retirement benefit plans for the Gratuity for its employees are given above which is certified by the actuary and relied upon by the auditors.

Expected contribution in the next year Rs.158 Lakh (brvious year Rs.Nil Lakh).

The actuarial calculation used to estimate defined benefit commitment and expenses are based on above assumptions which if changed would affect the defined benefit commitments and expenses.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

The Company's business is to provide IT enabled e-Governance services to its clients in India. All other activities of the Company revolve around the main business. As such, there are no reportable segments as per the Accounting Standard 17 (AS-17) –‘Segment Reporting’.

NSDL e-Governance Infrastructure Limited (“the Company”) (formerly known as National Securities Depository Limited) was incorporated in December 1995 is engaged in providing Information Technology (IT) enabled e-Governance services. The current projects of the Company are Central Recordkeeping Agency (CRA) under the National Pension System regulated by Pension Fund Regulatory and Development Authority (PFRDA); Tax Information Network (TIN), the activity of processing the applications for allotment of Permanent Account Number (PAN) and National Judicial Review System (NJRS) on behalf of Income Tax Department, Government of India; Electronic Accounting System in Excise and Service Tax (EASIEST) on behalf of Central Board of Excise and Customs (CBEC), Government of India; Pilot project on IT Infrastructure for Goods and Services Tax (GST) on behalf of Central Board of Excise and Customs (CBEC), Government of India; and acting as a Registrar to Unique Identification Authority of India (UIDAI), Planning Commission, Government of India

2.1 Basis of brparation of financial statements

The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable.  The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year.

2.2 Use of estimates

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

2.3 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information

2.5 Revenue recognition

Revenues from services are recognised on an accrual basis upon rendering of services. Revenue is recognised when there is no significant uncertainty as regards its determination and realisation.

 2.6 Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.7  Fixed assets(tangible/intangible):

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

Capital work-in-progress:

Projects under which tangible fixed assets are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

2.8 Debrciation and amortisation :

Debrciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. During the year, the Company has reviewed and revised the estimated useful lives of the fixed assets with effect from 1st April 2014 and debrciation on tangible fixed assets has been provided on the straight-line method as per the useful life brscribed in Schedule II to the Companies Act, 2013.

Consequently, the debrciation charge for the year ended 31st March 2015 is lower by Rs.684.77 Lakh.

Useful lives as per Schedule II are as follows:

Asset Useful life (years) Computers and servers 3-6 Data and Telecommunication Equipment 6 Electrical Installations 10 Office Equipment 5 Furniture and fixtures 10 Building 60

Computer software is amortised over 24 months or useful life whichever is lower.

2.9 Transactions in foreign currencies

Transactions in foreign currencies are recorded at the exchange rates brvailing on the date of the transaction. Foreign currency monetary assets and liabilities are translated at the year-end rates. Exchange differences arising on settlement of transactions and translation of monetary items are recognised as income or expense in the Statement of Profit and Loss.

2.10 Employee benefits:

Employee benefits include provident fund, superannuation fund, gratuity fund and compensated absences.

Defined Contribution Plan:-

a) Superannuation:

The Company's contribution to provident fund, superannuation fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

b) Provident Fund:

Employees are entitled to receive benefits in respect of provident fund, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary (currently 12% of employees’ basic salary). The contributions, as specified under the law, were made to the provident fund set up as an irrevocable trust by NSDL Group till July 31, 2014 and with effect from August 1, 2014 the contributions including accumulated balance with the said Trust are being made to Recognised Provident Fund.

Defined Benefit Plans

a) Gratuity:

For defined benefit plans in the form of gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet rebrsents the brsent value of the defined benefit obligation as adjusted for unrecognised past service cost,  as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the brsent value of available refunds and reductions in future contributions to the schemes.

b) Compensated absences:

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under:

(i) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(ii) in case of non-accumulating compensated absences, when the absences occur.

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the brsent value of the defined benefit obligation as at the Balance Sheet date.

2.11 Earnings Per Share

Basic and diluted earnings per share are computed in accordance with Accounting Standard-20 - Earnings per share. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.

2.12 Taxes on income:               

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

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

2.13 Investments

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments includes acquisition charges such as brokerage, fees and duties.

In respect of Company’s investments in securities which are acquired at a brmium but are redeemable at par, the difference is written off in the year of acquisition.

Front-end discount/incentive earned in respect of direct subscription is adjusted against the cost of investment.

Current Investments are carried at the lower of cost or fair value.

2.14 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their brsent value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

2.15 Provisions and contingencies

A provision is recognised when the Company has a brsent obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.

2.16  Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis, rebrsentative of the time pattern of benefits received from the use of the assets taken on lease.

2.17 Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

2.18 Operating Cycle

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