1)      The disclosures required under Accounting Standard 15 �Employee Benefits� notified in the Companies (Accounting Standards) Rules 2006, are given below:

a)      Reconciliation of opening and closing balance of Defined benefit obligation:

 Amount in Rs.

Description	Year ended Gratuity
March 31, 2015	March 31, 2014
Defined benefit obligation at the beginning of the year	2802898	2563801
Current service cost	832841	598552
Interest cost	255064	210232
Actuarial (gain) / loss	710324	(182929)
Benefits paid	(240467)	(386758)
Defined benefit obligation at the year end	4360660	2802898

b) Reconciliation of opening and closing balances of fair value of plan assets:

   Amount in Rs.

Description	Year ended Gratuity
March 31, 2015	March 31, 2014
Fair value of plan assets at the beginning of the Year	2394316	2041547
Expected return on plan assets	205283	156444
Actuarial gain / (loss)	-	-
Employer contribution	1340205	583083
Benefits paid	(240467)	(386758)
Fair value of plan asset at the year end	3699337	2394316

c) Reconciliation of fair value of assets and obligations:

Amount in Rs.

	Description	Year ended Gratuity
	March 31, 2015	March 31, 2014
Fair value of plan assets	3699337	2394316
Present value of obligations	4360660	2802898
Amount to be recognized in the Balance sheet	(661323)	(408582)

d) Expenses recognized during the year:

Amount in Rs.

Description	Year ended Gratuity
March 31, 2015	March 31, 2014
Current service cost	832841	598552
Interest cost	255064	210232
Expected return on plan assets	(205283)	(156444)
Actuarial (gain) / loss	710324	(182929)
Net cost	1592946	469411

      e)  Reconciliation of Leave Encashment:

Amount in Rs.

	Description	Year ended Leave Encashment
	March 31, 2015	March 31, 2014
Present Value of Obligation as at the end of the year	959973	827749
Value of fund as at the end of the year		-
Funded Status	(959973)	(827749)
Unrecognized Actuarial (gains)/Losses		-
Net Asset/(Liability) Recognized in Balance Sheet	(959973)	(827749)

f) Investment details:

100% invested in LIC Group gratuity (cash accumulation policy)

g) Actuarial assumptions

Mortality table (LIC) 2008-10 (ultimate)

Discounting rate �.e- 7.80%

Expected rate of return on plan asset-9%

Rate of escalation in salary -5%

      a)   Basis of brparation of financial statements

The financial statements have been brpared and brsented in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by the Central Government of India under Section 133 of the Companies Act, 2013, other pronouncements of Institute of Chartered Accountants of India, the provisions of Companies Act, 2013. Accounting policies have been consistently applied and management evaluates all recently issued or revised accounting standards on an ongoing basis.

b)     Use of Estimates

The brparation of financial statements in conformity with the Indian GAAP requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements, the reporting amounts of revenue and expenses during the reporting period and the disclosures relating to contingent liabilities as on the date of financial statements. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in outcomes different from the estimates. Difference between actual results and estimates are recognized in the period in which the results are known or materialize.

Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.

c)      Fixed Assets and debrciation

Fixed Assets are carried at the cost of acquisition or construction less accumulated debrciation. The cost of fixed assets includes non � refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowing costs directly attributable to the acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

Debrciation on Fixed Assets have been charged based on the useful life, in accordance with Schedule II of the Companies Act, 2013.

Scrap @ 5% of original cost has been considered.  Debrciation is calculated on a pro- rata basis from the date of installation till the date the assets are sold or disposed. Individual assets costing less than Rs.5, 000 are debrciated in full in the year of acquisition. Freehold land is not debrciated.

d)     Expenditure during construction period

Expenditure during construction period is grouped under �Capital Work In Progress� and the same is allocated to the respective Fixed Assets on the completion of its construction.

e)      Impairment of assets

The Company assesses at each Balance Sheet date whether there is any indication that an 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 to is less than its carrying amount, impairment provision is created to bring down the carrying value to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the Balance Sheet date, there is an indication that if a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the impairment provision created earlier is reversed to bring it at the recoverable amount subject to a maximum of debrciated historical cost.

f)       Revenue recognition

Sales are recognized on dispatch of goods to customers and include excise duty but exclude returns and taxes on sales collected from the customers on behalf of the government.

Internal consumption of the company's products, which are otherwise             marketable, is accounted for at transfer price and is included under sales.

Dividend income is recognized when the unconditional right to receive the income is established. Income from interest on deposits and loans is recognized on the time proportionate method. Insurance Claims are being recognized on receipt basis.

g)      Foreign Currency Transactions

Transactions in foreign currencies are recorded at the exchange rates brvailing on the date of the transaction and exchange differences arising from foreign currency transactions are recognized in the profit and loss account but capitalized where they relate to fixed assets.  Monetary assets and liabilities denominated in foreign currency are translated at the rates of exchange at the balance sheet date and resultant gain or loss is recognized in the profit and loss account.  Exchange difference, resulting from the difference due to exchange fluctuations of foreign currencyassets and liabilities, is disclosed as foreign currency exchange adjustment.

h)     Investments

Investments are either classified as current or long term. Current investments are carried at the lower of cost and market value. Long term investments are carried at cost less any permanent diminution in value, determined separately for each individual investment. The reduction in the carrying amount is reversed when there is a rise in the value of the investment or if the reasons for the reduction no longer exist.

i)        Inventories

Inventories including work-in-progress are valued at lower of cost and net realizable value. Cost of inventory comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition.

The cost of Raw Materials, Stores and Spares and Packing Materials is determined by using the Weighted Average Cost Method.  The cost of Work-in-Progress and Finished Goods is determined by weighted average Cost Method and includes appropriate share of production overheads.

j)       Employee Benefits

Short term benefits

Short term employee benefits are charged off at the undiscounted amount in the year in which the related services are rendered.

Long term benefits

Payments to the defined contribution retirement benefit schemes are charged as an expense as they fall due.

Gratuity

Under defined benefit scheme, Company provides for gratuity, a defined benefit retirement plan (the �Gratuity Plan�) covering eligible employees. In accordance with the Payment of Gratuity Act, 1972, the Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment. The company has taken a master policy with Life Insurance Corporation of India under group gratuity scheme. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date, based upon which, the Company contributes all the ascertained liabilities to the Life Insurance Corporation of India.

Employee Leave Encashment

The leave encashment payable to the employees is provided based on the actuarial valuation carried out in accordance with the AS 15 and is not funded.

Provident fund

The company has a defined contribution plan for Provident Fund under which the company contributes the fund to the Regional Provident Fund Commissioner. 

Superannuation

The company contributes to superannuation, which is a defined contribution plan as per the policy taken out for the purpose. The company fully contributes all ascertained liabilities to the superannuation fund maintained with Life Insurance Corporation of India.

k)     Income-Tax expense

Income tax expense comprises current tax and deferred tax charge or credit.

Current tax

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company.

Deferred tax

Deferred tax charge or credit reflects the tax effects due to timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that assets can be realized in future; however, where there is unabsorbed debrciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

Minimum alternate tax credit

MAT credit entitlement rebrsents the amounts paid in a year under Section 115JB of the Income Tax Act 1961 (IT Act) which is in excess of the tax payable, computed on the basis of normal provisions of the IT Act. Such excess amount can be carried forward to set off in future periods in accordance with the relevant provisions of the IT Act. Since such credit rebrsents a resource controlled by the Company as a result of past events and there is evidence as at the reporting date that the Company will pay normal income tax during the specified period, when such credit would be adjusted, the same has been disclosed as �MAT credit entitlement�, in the balance sheet with a corresponding credit to the profit and loss account, as a separate line item.  

l)        Earnings per share

The basic earnings per share (�EPS') is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit after tax for the year and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

m)    Provisions and contingent liabilities

The Company creates a provision where there is a brsent 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 obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a brsent obligation in respect of which the likelihood of outflow resources is remote, no provision or disclosure is made.

n)     Borrowing costs

Borrowing costs attributable to the qualifying fixed assets during construction, renovation and modernization are capitalized. Such borrowing costs are apportioned on the average balance of capital work-in-progress for the year. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Borrowing cost consists of interest and other financial costs incurred in connection with borrowing of funds.

o)      Government Grants

Government grants receivable under Industrial Investment Promotion Policy 2005 � 10 of Government of Andhra Pradesh are accounted based on verification and recommendation of the competent authority as per the policy of Government and in accordance with Accounting Standards 9 and 12.

1.    Corporate Information:

Sagarsoft (India) Limited(The Company) is a Listed Public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 in India. The company is engaged in Software Development.