a. Basis of brparation of Financial Statements
These financial statements are brpared and brsented in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis and materially comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Section 129 & 133 of the Companies Act 2013. (‘Act’).

The accounts have been brpared on historical cost basis using the accrual basis of accounting. The brparation of financial statements as per this policy requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

b. Principles of consolidation
The financial statements of the subsidiary companies used in the consolidation are drawn up to the same reporting date as of the Company except in case of IRIS Business Services (Asia) Pte Ltd whose financials statements are as on December 31, 2015.

The consolidated financial statements have been brpared on the following basis:

i) The financial statements of the Company and its subsidiary companies have been combined on a line-by-line basis byadding together like items of assets, liabilities, income and expenses. Inter-company balances and transactions andunrealised profits or losses have been fully eliminated.

ii) The excess of the cost to the parent of its investments in a subsidiary over the parent’s portion of equity at the date on which investment in the subsidiary is made, is recognised as ‘Goodwill (on consolidation)’. When the cost to the parent of its investment in a subsidiary is less than the parent’s portion of equity of the subsidiary at the date on which investment in the subsidiary is made, the difference is treated as ‘Capital Reserve (on consolidation)’ in the consolidated financial statements. However, since all investments in subsidiary companies were made at the time of its formation, there is no Goodwill or Capital Reserve in the brsent consolidated financial statements.

iii) Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders at the dates on which investments in the subsidiary companies are made and further movements in their share in the equity, subsequent to the dates of investments. Since minority interest is negative in this consolidation, the same is adjusted against reserves and surplus.

iv) On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

c. Translation to Indian Rupees
The functional currency of the Parent Company is Indian Rupee.

The functional currencies of the subsidiaries are their respective local currencies. Their accounts are converted fromtheir local currency to Indian Rupees in the following manner:

All income and expense items are translated at the RBI annual average rate of exchange applicable for the year. All monetary and non-monetary assets and liabilities are translated at the RBI closing rate as on Balance Sheet date. The equity share capital is stated at the exchange rate at the date of investment. The exchangedifference arising out ofthe yearend translation is debited or credited to Foreign Currency Translation Reserve account and is being classified under Reservesand Surplus Account.

d. Revenue Recognition
Revenue is recognized when no significant uncertainty exists as to either the measurement or ultimate realization of the same.

Revenue from Operations
Revenues from hosting and maintenance contracts are recognised on time-proportion basis in accordance with the terms of the agreements executed with the clients.
Revenue from development or customization of software is recognised using the proportionate completion method, upon completion of different phases of the project as per the terms of the development agreement.
Revenue from services rendered in connection with advertisement and data conversion services is recognized upon completion of the stipulated services.
Revenue from sale of software/ software licenses which do not involve any customization are recognized upon delivery of the software to the clients.
Subscription income is recognized as revenue as & when the subscriptions are received.
Royalty Income is recognised on an accrual basis in accordance with the terms of the relevant agreements, when no significant uncertainty as to measurability or collect ability exists.

Other Income
Dividends are recorded when the right to receive payment is established.
Interest on Bank deposits is recognized on accrual basis.
Rental income is recorded on accrual basis.
Any other income is recognized on accrual basis, when no significant uncertainty as to measurability or collectability exists.

e. Fixed Assets
Tangible Fixed Assets are stated at the cost of acquisition less accumulated debrciation. Cost includes incidental expenses incurred during the acquisition/ installation, and excludes taxes and duties for which credit has been claimed.
Intangible assets are recorded at the consideration paid for acquisition of such asset and are carried at cost less accumulated amortisation and impairment.

f. Debrciation & Amortization
Tangible fixed assets are debrciated on straight line basis over the useful life as specified in Schedule II of Companies Act, 2013.
Individual assets whose cost does not exceed Rupees5,000/- are debrciated fully in the year of purchase. Where the asset capitalized has a fixed useful life, as in the case of software licenses, the same are written off over the said useful life.
Leasehold Property is being amortised over the remaining leasehold period on straight-line basis.
Software products both proprietary and purchased are amortized over a period of 5 to 6 years, the amortization commencing once the said product is available for use.

g. Capitalisation of Expenses incurred for development of software:
Costs incurred in the development of proprietary software products have been classified and grouped under the heads “Software Developed In-House" & “Intangible Assets under Development” under Fixed Assets as per the recognition criteria laid down under AS 26 .

h. Impairments
The carrying amounts 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 asset exceeds its recoverable amount.

i. Investments
Long term investments are stated at cost, and provision for diminution is made when in the management s opinion there is a decline, other than temporary, in the carrying value of such investments. Short term investments are valued at lower of cost and net realizable value.

j. Provisions and contingent liabilities
The Company creates a provision when there is 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 the 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. When there is a possible obligation or a brsent obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed. Contingent assets are not recognized in the financial statements.

k. Miscellaneous Expenditure
Preliminary and other miscellaneous expendituresare written off as and when incurred in accordance with the provisions of accounting standard 26

l. Prepaid Expenses
Expenses which are incurred in one year and which spill over to the subsequent years are recognised as brpaid only if such brpaid amount exceeds Rupees. 5,000/-. All such expenses are identified and carried over to the next year based on the number of months.

m. Employee Benefits
Short-term employee benefits including salaries, wages, bonuses and other benefits are recognized as expenses at the actual value as per contractual terms & charged to the profit and Loss Account for the year in which the related service is rendered.

The Company has provided for gratuity payable to employees on the basis of actuarial valuation carried out by an independent actuary as per Projected Unit Credit Methodcarried out at the closed of the year. The Company makes annual contributions in respect of those employees who have completed five years in service, to the Group Gratuity Cash Accumulation Scheme of the LIC, which is a funded defined benefit plan.

n. Taxation
Provision for taxation is made on the basis of taxable profits computed for the current accounting period in accordance with the Income Tax Act 1961.
Deferred tax resulting from timing difference between Book Profits and Tax Profits is accounted for at applicable rate of tax to the extent the timing difference are expected to be crystallized. In case of Deferred Tax Liabilities with reasonable certainty and in case of Deferred Tax assets with virtual certainty that there would be adequate future income against which Deferred Tax Assets can be realized.

o. Leases
Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Rental charges over the term of such leases, after taking in to account the escalation clause, are charged to the Profit and Loss Account on a straight line basis over the extended lease term.

p. Service Tax
Service tax is accounted in accordance with the Guidance note on Accounting of Service Tax issued by ICAI. Accordingly input credit to the extent not utilized for payment of service tax accounted as asset as it would be available for adjustment against Service Tax payable in the future.

Segment reporting :

The Company has identified business segments (Nature of revenue stream) as its primary segment and geographic segments as its secondary segment. Business segments comprise of Collect Segment ( Regulatory platform), Create Segment( Enterprise Platform) and Consume Segment( Data Consumption Platform).
Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to a specific segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably among segments are notallocated to primary and secondary segments.
Geographical revenue is allocated based on the location of the customer. Geographic segments of the company are Middle Eastern Countries, America(including Canada and South American countries), Europe, India and Others

(Amount in Rs.)

Particulars	Collect: Regulatory Platform	Create: Enterprise Reporting	Consume: Data Consumption Platform	Others	Total
Income from software services andproducts	20,54,76,017	8,68,89,882	-	3,31,83,021	32,55,48,920
Allocated expenses	15,48,12,381	10,36,20,881	3,03,46,071	5,92,19,296	34,79,98,629
Segmental operating income	5,06,63,636	(1,69,91,307)	(3,03,46,071)	(3,02,85,918)	(2,24,49,708)
Unallocable expenses					7,02,82,877
Other income, net					1,00,30,857
Profit before exceptional item and tax					(8,27,01,729)
Exceptional item					(2,18,93,846)
Profit before tax					(6,08,07,883)
Tax expense					(18,02,656)
Profit after taxes and exceptional item					(5,90,05,227)
Minority interest					30,591
Profit after taxes and exceptional item					(5,89,74,636)

Revenues by Geography
(Amount in Rs. )

Country	Revenue
India	5,77,28,351
Mauritius	10,53,29,523
Qatar	1,02,68,056
Saudi Arabia	2,71,72,637
Singapore	2,19,37,937
Thailand	1,65,59,808
Turkey	12,81,716
UAE	2,90,98,851
UK	3,09,80,600
US	2,49,31,133
Italy	2,60,308
Grand Total	32,55,48,920