1. Reporting entity:

Computer Age Management Services Pvt Ltd (“CAMS” - also called here as ‘’The company’) is India’s brmier Mutual Fund Transfer Agency serving over 60% of assets of the Indian mutual fund industry.. With 25 years of experience as an integral part of the India’s Financial infrastructure, CAMS has built a significant reputation as a Transfer Agency to the Asset Management Industry of India and more recently as a technology enabled service solutions partner to Private Equity Funds, Banks, Non-Banking Finance Companies. Besides serving as B2B solutions partner, CAMS brings a unique ability of a B2C to serve the end customers through a variety of touch points such as pan India network of Service centers, White Label Call centre, and white label online services.

CAMS has three major shareholders - NSESIC: NSE Strategic Investment Corporation Limited a subsidiary of National Stock Exchange, HDFC Group and Acsys Investments Pvt. Ltd. CAMS is a Private Limited company incorporated and domiciled in India and has its registered office at Chennai, Tamilnadu, India. CAMS together with its subsidiaries are herein after referred to as 'Group".

2. Basis of brparation

(I) Compliance with Ind AS

The financial statements comply in all material aspects with the Indian Accounting Standards (Ind AS) notified u/s 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

The financial statements upto 31st March 2016 were brpared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules 2006 and other relevant provisions of the Act.

These financial statements are the first financial statements of the Company under Ind AS. Refer Note below for an explanation of how the transition from brvious GAAP to Ind AS has affected the group’s financial position, financial performance and cash flows.

(II) First Adoption of Ind AS

These are the entity’s first financial statements brpared in accordance with Ind AS

The accounting policies set out in Note 4 below have been applied in the brparation of financial statements for the year ended 31st March 2016 and in the brparation of opening Ind AS Balance sheet as at 1st April 2015 which is the date of transition

In brparing the opening Ind AS Balance sheet, the group has adjusted the amounts brviously reported in financial statements brpared in accordance with the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act.

An explanation of how the transition from brvious GAAP to the Ind AS has affected the group’s financial position, financial performance and cash flows is set out in the following tables and notes.

3. Use of estimates and judgements:

The brparation of the financial information in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the

application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial information and reported amounts of revenues and expenses during the period. Although these estimates are based on management’s best knowledge of current events and actions, uncertainty about the assumption and estimates could result in the outcome requiring material adjustment to the carrying amount of asset and liabilities.

4.  Significant accounting policies: i) Financial instruments:

Financial assets and financial liabilities are recognized in the statement of financial position when the company becomes a party to the contractual provisions of the instrument.  All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price.

Financial assets are recognized and classified into following specified categories based on company’s business model for managing the financial assets and contractual cash-flow characteristics of these at the time of initial recognition:

(ii) ‘At Amortized cost’, if held within a business model whose objective is to hold the asset to collect contractual cash-flows and terms of financial asset give rise on specified dates to cash-flows that are solely payments of principal and interest on the principal amount outstanding. Under this model, income and expense is recognized at the effective interest basis.

(iii) ‘At fair value through other Combrhensive Income” (FVTOCI) - if financial asset is held within a business model whose objective is achieved by both collecting contractual cash-flows and selling of financial asset and contractual terms of financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iv) ‘At fair value through Profit or loss’ - financial asset which is not classified in any of the above categories are subsequently measured through profit or loss.

 ii) Loans and Trade Receivables:

Loans and interest free advances are measured at amortized cost using the effective interest method less impairment, if any. Interest is recognized by applying effective interest method.  Trade receivables are initially measured at transaction price..

. iii) Leases:

Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. When acquired, such assets are capitalized at fair value or brsent value of the minimum lease payments at the inception of the lease, whichever is lower.

All other leases are classified as operating leases and lease payments under operating lease are recognized as an expense on a straight line basis in the income statement over the lease term.

 iv) Revenue Recognition:

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government and when there is reasonable certainty of ultimate realization.

Overdue amounts are provided for as doubtful debts or are written off as bad debts, if the same are considered doubtful / irrecoverable in the opinion of the management.

 v) Dividends:

Dividend income is recognized when the right to receive the payment is established. Final Dividends on shares of the Company are recorded as a liability on the date of approval by the Shareholders and interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors.

 vi) Property, plant and equipment:

Property, plant and equipment are stated at cost of acquisition less accumulated debrciation/amortization and impairment loss, if any. The cost is inclusive of freight, installation cost and other incidental expenses for bringing the asset to its working conditions for its intended use but net of CENVAT and Value Added Tax, wherever input credit is claimed. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repair and maintenance costs are recognized in Income statement as incurred.

 vii) Debrciation

Debrciation on fixed assets is provided on the written down value method except for software, which is debrciated on straight line method at the rates as per the useful life specified in Schedule II of the companies Act 2013 as shown below:

Asset Block	From FY 2014-15 Estimated Useful life
Building	60 years
Computers	3 to 6 years
Office Equipments, Electrical Fittings and Air Conditioners	10 years
Furniture & Fixtures	10 years
Software	3 years

Fixed Assets whose aggregate cost is Rs.5000/- or less are fully debrciated in the year of acquisition. Debrciation on assets purchased / disposed off during the year is provided on pro-rata basis from the date of acquisition/ deletion. The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in profit or loss.

 viii) Intangible Assets:

Intangible assets comprising of software are recorded at acquisition cost and are amortised over the estimated useful life on straight line basis over a three year period from the date that they are available for use. Debrciation on additions is provided on pro rata basis from the date of acquisition.

 ix) Goodwill and impairment of Good will

Goodwill rebrsents the cost of business acquisition in excess of the Groups’ interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquire. Good will is measured at cost less accumulated impairment losses.

Goodwill is tested for impairment on an annual basis whenever there is an indication that the recoverable amount of cash generating unit (CGU) is less than its carrying amount based on number of factors including operating results, business plans, future cash-flows and economic conditions. The recoverable amount of CGU is determined based on higher of value in use and fair value less cost to sell. The goodwill impairment test is performed at the level of the CGU or group of CGUs which are benefitting from the synergies of the acquisition and which rebrsents the lowest level at which goodwill is monitored for management purposes. Market related information and estimates are used to determine the recoverable amount and the management assumptions include estimated long term growth rates, weighted average cost of capital and estimated operating margins taking into account past experience. x) Impairment of tangible and intangible assets excluding goodwill

At each reporting date, the company reviews the carrying amounts of its tangible and intangible assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognized as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. A reversal of an impairment loss is recognized as income immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

 xi) Basis of consolidation

The financial statements of the following subsidiary companies have been consolidated as per Accounting Standard - 21 on Consolidated Financial Statements.

Name of the Subsidiary	Country of Incorporation	Proportion of ownership Interest  ( % )
CAMS Insurance Repository Services Ltd	India	79.00
CAMS Investor Services Pvt Ltd	India	100.00
CAMS Financial Information Services Pvt Ltd	India	100.00
Sterling Software	India	100.00
Sterling Software(Deutschland) GmbH	India	100.00

b.) The Consolidated Financial Statements have been brpared on the following basis.

The Financial Statements of the Parent Company and its subsidiary companies have been consolidated on a line by line basis, by adding together the book values of like items of asset, liabilities, income, expenses, after fully eliminating intra-group balances and intra group transactions resulting in unrealised profits or losses.

c.) The Consolidated Financial Statements have been brpared by adopting uniform accounting policies except for Sterling Software Private Limited, debrciation on computers and software licenses have been provided at 60 %. xii) Foreign currency transactions and translation

a) Functional and brsentation currency: The financial information of the company are brsented in Indian Rupees (‘INR’) which is the functional currency of the Company.

b) Transactions and translations: Transactions in foreign currencies are initially recorded at the functional currency rate brvailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the respective functional currency at the rates brvailing on the reporting period date.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at reporting period-end date exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.

Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates brvailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 xiii) Retirement benefit costs

Ø Provident Fund:  Contributions are made to the government administered provident fund, pension fund and to Employees' State Insurance Schemes on behalf of its employees. Company’s contribution to the provident fund for all employees, are charged to revenue.

Ø Superannuation: The Company makes fixed contributions as a percentage on salary of eligible employees to the superannuation fund, which is administered by trustees and managed by the Life Insurance Corporation of India (LIC). This contribution is charged to the Profit and Loss Statement.

Ø Gratuity: The Company makes an annual contribution to a Gratuity Fund administered by trustees and managed by Life Insurance Corporation of India (LIC) and accounts its liability based on an actuarial valuation, as at the balance sheet date, determined every year by an Actuary using the projected unit credit method. The Company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/asset are recognized in Other Combrhensive Income (OCI). The effect of any plan amendments is recognized in net profits in the statement of profit and loss.

Ø Leave Encashment: The Company makes an annual contribution to a leave encashment fund administered and managed by Life Insurance Corporation of India (LIC) The Company accounts its liability based on an actuarial valuation, as at the balance sheet date, determined every year by an Actuary using projected unit credit method. Gains and losses through re-measurements of the net defined benefit liability/asset are recognized in Other Combrhensive Income (OCI). The effect of any plan amendments is recognized in net profits in the statement of profit and loss.

Ø Short term employee benefits are charged to revenue in the year in which the related service is rendered.

 xiv) Income Tax:

Income tax expense rebrsents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of profit or loss and other combrhensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or tax deductible.

Deferred tax is recognized on the differences between the carrying amounts of assets and liabilities in the financial information and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realized based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

Deferred tax liabilities are recognized for all taxable temporary differences, except, In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future

Current and deferred tax are recognized as an expense or income in profit or loss, except when they relate to items credited or debited outside profit or loss (either in other combrhensive income or directly in equity), in which case the tax is also recognized outside profit or loss (either in other combrhensive income or directly in equity, respectively). xv) Provisions, Contingent liabilities and Contingent assets

A provision is recognized when the Company has a brsent legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are discounted to its brsent value and are determined based on 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 not recognized in the financial information. A contingent asset is neither recognized nor disclosed in the financial information.

 xvi)Earnings per share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders and EPS of the year is computed by weighted average number of equity shares outstanding during the year.

 xvii)Current versus non-current classification

The Company brsents assets and liabilities in the balance sheet based on current/ non-current classification

 An asset is treated as current when it is:

· Expected to be realized or intended to be sold or consumed in normal operating cycle

· Held primarily for the purpose of trading

· Expected to be realized within twelve months after the reporting period, or

· Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

Aliability is current when:

· It is expected to be settled in normal operating cycle

· It is due to be settled within twelve months after the reporting period, or

· There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.xviii) Cash and cash equivalents in the statement of cash flows

Cash and cash equivalent in the balance sheet comprise cash at bank balances

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

25.9Voluntary Exemptions and Mandatory Exemptions Availed

Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions -

a) Deemed Cost

Ind AS 101 permits a first time adopter to elect to continue with carrying value of all its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS measured as per brvious GAAP and use that as its deemed cost as at the date of transition, after making necessary adjustment for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38.

Accordingly, the Company has selected to measure all of its property, plant and Equipment, intangible assets at their brvious GAAP carrying value.

b) Business Combinations:

As per Ind As 101 at the date of transition an entity may elect not to restate the business combinations that occurred before the date of transition. Accordingly the company opted not to restate the business combinations that occurred before the date of transition. (Ind As 103)

Accordingly the company has decided to carry the investments in subsidiaries at brvious IGAAP costs only (Ind As 27)

c) Financial Assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets based on facts and circumstances that exist on the date of transition to Ind AS.

d) Estimates

An entity’s estimates in accordance with Ind AS as at the date of transition to Ind AS, should be consistent with the estimate made for the same date in accordance with brvious GAAP, unless there is objective evidence that those estimates were in error.

The estimates as at 1st April 2014 and 31st March 2015 are consistent with those made for the same dates in accordance with brvious GAAP (after adjustments).

There are no material changes in critical estimates and judgements applied in the brparation of Ind AS Financial statements, as from the estimates and judgements applied in the financial statements under brvious GAAP. Consequently, there are no changes in the following items -

a) Fair Value of Financial assets and Liabilities

b) Tax rates used in the computation of Deferred Taxes

c) Carrying amount of Tangible and Intangible Fixed Assets

d) Defined benefit obligation for Employee Benefits

25.10:Reconciliation between Previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile the Equity, Total combrhensive income and Cash Flows for prior periods. The Following rebrsent the reconciliation from brvious GAAP to Ind AS.

Notes to the reconciliations

(I) Actuarial gains and Loss

Under Ind As all actuarial gains or losses are recognised in other combrhensive income. Under brvious IGAAP the company recognised actuarial gains and losses in profit or loss. However this has no impact on the total combrhensive income and total equity as on 1st April 2015 or as on 31st March 2016.

(II) Fair value of Investments

In accordance with IndAS, financial assets rebrsenting investment in Mutual funds schemes have been fair valued the entity has designated certain investments classified at fair value through profit and loss as permitted by Ind AS109. Under the brvious GAAP, the application of the relevant accounting standard resulted in all these investments being carried at cost.

25.1	Segment Reporting
	Business Segments	R T A Services / Others		Software		Eliminations		Consolidated Total
		2016-17	2015-16	2016-17	2015-16	2016-17	2015-16	2016-17	2015-16
	REVENUE
	Segment Revenue	47,511.24	39,555.01	319.61	237.47	-	-	47,830.85	39,792.48
	Inter Segment Revenue	214.55	198.98	3,416.34	3,009.07	3,416.34	3,009.07
	Total Revenue	47,725.79	39,753.99	3,735.95	3,246.54	3,416.34	3,009.07	47,830.85	39,792.48
	RESULT
	Segment Result	15,468.11	11,851.48	1,459.11	1,468.62			16,927.22	13,320.10
	Unallocated Income							2,432.34	1,423.51
	Profit Before Tax							19,359.56	14,743.61
	Less: Tax Expense							6,646.51	4,895.38
	Less: Minority Interest							-78.03	-26.46
	Profit After Tax							12,791.08	9,874.69
	OTHER INFORMATION
	Segment Assets	15,732.53	12,647.91	716.23	621.23	301.88	240.50	16,146.88	13,028.64
	Unallocated Assets							35,938.20	31,611.42
	Total Assets							52,085.08	44,640.06
	Segment Liabilities	9,276.42	7,358.51	261.50	216.62	301.88	240.50	9,236.04	7,334.63
	Unallocated Liabilities							475.61	158.70
	Total Liabilities							9,711.65	7,493.33
	Capital Expenditure	2,183.41	971.94	26.34	180.25	-	-	2,209.75	1,152.19
	Debrciation	1,625.10	1,594.60	66.85	81.95	-	-	1,691.95	1,676.55
	Non-Cash Expenses other than Debrciation	-	170.50	-	-	-	-	-	170.50