Employee benefits

Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short-term employee benefits, which include benefits like salaries, wages, short-term compensated absences and performance incentives and are recognised as expenses in the period in which the employee renders the related service.

Leave encashment: Entitlements of employees of LatentView Analytics Corporation to annual leave, a defined benefit, is accrued based on the expected cost of compensated absences in the period in which the employees render services.

Post-employment benefits:

Provident fund: The Company's contribution in respect to Provident fund are charged to the Statement of profit and loss when incurred. The Company has no further obligation other than the monthly contributions to these fund. As required by Singapore law, the LatentView Analytics Pte Ltd makes contributions to the Central Provident Fund (CPF), a defined contribution plan regulated and managed by the Government of Singapore. CPF contributions are recognised as expense in the same period to which the contribution relates.

Gratuity: The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan"), covering eligible employees. The Plan provides payment to vested employees at retirement, death or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Company. Such contributions are determined by LIC based on actuarial valuation using "projected unit credit method" as at the balance sheet date. All actuarial gains and losses arising during the year are recognised in the statement of profit and loss for the year.

Employee stock compensation plans:

The Company accounts for equity settled stock options in accordance with the Guidance Note on Employee Share-based Payments issued by the Institute of Chartered Accountants of India using the fair value method.

Employee Stock option plan (ESOP)

i. Description of Employee Stock option plan

As at March 31, 2019, the Company has the following stock option plans for employees

2016 Employee stock option plan

This plan was approved by the Board of Directors and Shareholders on April 1, 2016. The plan entitles senior employees to purchase shares in the Company at stipulated exercise price, subject to compliance with vesting conditions; all exercised options shall be settled by issue of equity shares of the Company. As per the plan, holders of vested options are entitled to purchase one equity share for every option at an exercise price of Rs.132/- or the fair value of shares at the time of grant of option as may be determined by a valuer appointed by the Compensation Committee or Board.

The terms and conditions related to the grant of the plan is as follows:

Employee entitled	Number of options outstanding	Number of options that shall vest / year	Grant date	Vesting period ends on		Contractual life of the options as per plan
Senior employees	779,625	Graded vesting	April 08, 2016 to July 20, 2017	April 08, 2017 to July 20, 2019	1-10 years

The Company has not granted any options during the current year ended March 31, 2019 (March 31, 2018: 19,000 ESOP units were granted on July 20, 2017 with a vesting period of 2 years ending July 20, 2019)

The general terms and conditions related to the grant of all the above share options are as follows.

a) The scheme would be administered and supervised by a committee appointed by the board  called "Compensation Committee"

b) Right to exercise is only upon receipt of exercise notice from the Compensation Committee

c) Options are not transferable.  On resignation, options already vested to the employee as at the date of resignation can be exercised in accordance with the plan

.	.	.	.	For the year ended  March 31, 2019		For the year ended  March 31, 2018
Expenses recognised in employee benefit expenses	.	.	.	2,925,264	.	4,454,758
ii. Stock options outstanding account	.	.	.	For the year ended  March 31, 2019		For the year ended  March 31, 2018
2016 Employee stock option plan	.	.	.	23,741,495		21,633,419
iii. Reconciliation of outstanding share options	.	.	.	For the year ended  March 31, 2019		For the year ended  March 31, 2018
2016 Plan ESOP	.	.	.	.		.
Outstanding at beginning of the year	.	.	.	821,125		991,000
Granted during the year	.	.	.	-		19,000
Exercised during the year* (refer note)	.	.	.	(5,500)		(77,000)
Forfeited / / lapsed during the year	.	.	.	(36,000)		(111,875)
Outstanding at the end of year	.	.	.	779,625		821,125
Outstanding at the end of year, vested and exercisable	.	.	.	703,175		692,475

Note:

As against the 5,500 ESOP units exercised during the year, 3,000 equity shares carrying face value of Re.1 each issued at a brmium of Rs.131 per share, were allotted during the current financial year and the proceeds were recognised towards Share capital and Securities Premium respectively. The balance amount received, pertaining to 2,500 equity shares which were not allotted during the year,  is held as part of "Share application money pending allotment".

The options outstanding at 31 March 2019 have an exercise price and a weighted average contractual life as follows:

.	March 31, 2019	March 31, 2019	March 31, 2019
.	Number of outstanding options	Exercise price	Weighted average remaining life
2016 Employee stock option plan	779,625	Rs. 132 - 422	1-10 years

The estimated grant-date fair value of stock options granted under 2016 plan is Rs. 22.47 to Rs. 30.34 and Rs. 309.26 to 313.07  for the grants made on April 08, 2016 and July 20, 2017 respectively. The fair values are measured based on the Black-Scholes-Merton formula. The inputs used in the measurement of grant-date fair value are as follows:

Grant Period	2018-19	2017-18
Share price at grant date	-	422
Exercise price	-	132
Expected volatility (weighted average)	-	0.01%
Expected dividends	-	-
Risk free interest rate (based on government bonds)	-	6.46%

Retirement benefits

Defined contribution plans

The Holding Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund, which is a defined contribution plan. The Company has no obligations other than to make the specified contributions. The Contributions are charged to the Statement of Profit and Loss as they accrue. The amount recognised as an expense towards contribution to Provident Fund for the year aggregated to Rs. 10,831,468 (brvious year : Rs. 9,361,837).

Gratuity plan

Based on actuarial valuation, necessary provision has been created in the books to meet the liability as per AS 15 (R) - Employee benefits. The following table sets out the status of the gratuity plan as required under AS 15 (R) - Employee benefits:

.	For the year ended	For the year ended
.	March 31, 2019	March 31, 2018
a. Change in projected benefit obligation	.	.
Projected benefit obligations at the beginning of the year	18,349,030	11,559,020
Current service cost	4,668,431	3,173,412
Past service cost	-	1,780,438
Interest cost	1,485,370	898,859
Benefits settled	(275,697)	(719,797)
Actuarial (gain) / loss	670,457	1,657,098
Projected benefit obligations at the end of the year	24,897,591	18,349,030

.	For the year ended	For the year ended
.	March 31, 2019	March 31, 2018
b. Change in fair value of plan assets	.	.
Fair value of plan assets at the beginning of the year	12,010,292	8,622,007
Expected return on plan assets	878,430	645,946
Employer contributions	6,266,703	3,383,333
Benefits paid	(275,697)	(719,797)
Actuarial gain / (loss)	(840,099)	78,803
Fair value of plan assets at the end of the year	18,039,629	12,010,292

.	As at	As at
.	March 31, 2019	March 31, 2018
c. Reconciliation of brsent value of defined benefit obligations and the fair value of plan assets	.	.
Present value of defined benefit obligations at the end of the year	24,897,591	18,349,030
Fair value of the plan assets at the end of the year	18,039,629	12,010,292
Unfunded status amount of liability recognized in the balance sheet	6,857,962	6,338,738
	.	.
Classification into current / non-current	.	.
Long term provision (refer note 6)	6,857,962	6,338,738

.	For the year ended	For the year ended
.	March 31, 2019	March 31, 2018
d. Expenses recognised in the statement of profit and loss	.	.
Current service cost	4,668,431	3,173,412
Past service cost	-	1,780,438
Interest cost	1,485,370	898,859
Expected returns on plan assets	(878,430)	(645,946)
Actuarial loss	1,510,556	1,578,295
Net gratuity costs	6,785,927	6,785,058

.	As at	As at
.	March 31, 2019	March 31, 2018
e. Principal actuarial assumptions	.	.
Discount rate	6.75%	7.00%
Attrition rate	28.50%	33.00%
Long term rate of compensation increase	12.00%	12.00%
Estimated rate of return on plan assets	7.50%	7.50%

The Company assesses these assumptions with the projected long-term plans of growth and brvalent industry standards.

Historical information	March 31, 2019	March 31, 2018	March 31, 2017	March 31, 2016	March 31, 2015
Defined benefit obligation	24,897,591	18,349,030	11,559,020	7,554,649	7,925,029
Fair value of plan assets	18,039,629	12,010,292	8,622,007	8,000,969	2,707,802
(Surplus)/ deficit in the plan	6,857,962	6,338,738	2,937,013	(446,320)	5,217,227
Exp. Adj. on Plan liabilities	417,470	589,698	(43,071)	(2,797,765)	(72,234)
Exp. Adj. on Plan assets	(840,099)	78,803	(47,848)	(34,991)	60,484

Note:

The gratuity expenses have been recognised in 'Contribution to provident and other funds'

1	Description of group
	LatentView Analytics Private Limited ("the Company") is an India based data analysis group head quartered in Chennai, India. The group's primary objective is to help clients to develop and deploy result-oriented analytics solutions that shall enable them to make smarter decisions using their data on an on-going basis. The solutions help clients improve their marketing performance, efficiently trade-off risks against the available opportunities, maximise customer value and increase employee effectiveness.
	Disclosure relating to entities considered in these consolidated financial statements

Entity	Country of incorporation	Nature of interest	% of holding as at March 31, 2019	% of holding as at March 31, 2018	Functional Currency
LatentView Analytics Private Limited	India	Holding Company	Not Applicable	Not Applicable	Indian Rupees
LatentView Analytics Corporation	USA	Subsidiary of LatentView Analytics Private Limited	100%	100%	US Dollars
LatentView Analytics UK Ltd	UK	Subsidiary of LatentView Analytics Private Limited	100%	100%	Great British Pound
LatentView Analytics BV	Netherlands	Subsidiary of LatentView Analytics Private Limited	100%	100%	Euro currency
LatentView Analytics GmBH, Germany*	Germany	Subsidiary of LatentView Analytics BV	100%	-	Euro currency
LatentView Analytics Pte. Ltd	Singapore	Subsidiary of LatentView Analytics Private Limited	100%	100%	Singapore Dollars

* LatentView Analytics GmBH, Germany is a wholly owned subsidiary of LatentView Analytics BV, Netherlands and was incorporated on April 19, 2018

2. Significant accounting policies

2.1 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 using the accrual basis. GAAP comprises accounting standards as brscribed under section 133 of the Companies Act, 2013 ('Act') read with rule 7 of the Companies (Accounts) Rules, 2014, other pronouncements of the Institute of Chartered Accountants of India  and the provisions of the Act. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2.2 Principles of consolidation

In accordance with Accounting Standard 21 - "Consolidated Financial Statements", the consolidated financial statements include the financial statements of LatentView Analytics Private Limited ("the Company"), the parent company and all of its subsidiaries, in which the Company has more than one half of the voting power of an enterprise or where the Company controls the composition of the Board of Directors.

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

a) The financial statements of the parent company and the subsidiaries have been combined on a line by- line basis by adding together the book values of like items of assets, liabilities, income and expenses after eliminating intra-group balances/ transactions and resulting unrealised profits in full. Unrealised losses resulting from intra-group transactions have also been eliminated except to the extent that recoverable value of related assets is lower than their cost to the group. The amounts shown in respect of reserves comprise the amount of the relevant reserves as per the balance sheet of the parent company and its share in the reserves of the subsidiaries.

b) The consolidated financial statements are brsented, to the extent possible, in the same format as that adopted by the parent company for its separate financial statements.

c) The consolidated financial statements are brpared using uniform accounting policies for like transactions and other events in similar circumstances.

d) Income and expenditure items are translated at the average exchange rates for the year. Assets and liabilities are translated at the closing rate on the balance sheet date. The equity share capital, reserves and surplus and investments are carried forward at the rate of exchange brvailing on the transaction date. All resulting exchange differences are accumulated in a foreign currency translation reserve, which is reflected under reserves and surplus and investments are carried forward at the rate of exchange brvailing on the transaction date.

e) The excess/deficit of the cost of the parent company of its investment in the subsidiary company over its portion of equity at the respective dates is recognised in the financial statements as goodwill/capital reserve.

f) Minority interest in the net assets of consolidated subsidiaries consists of amount of equity attributable to the minorities at the dates to which investment is made and the minority share of movements in equity since the date of parent-subsidiary relationship. Minority interest in share of net result for the year is identified and adjusted against profit after tax. Excess of loss, if any attributable to minority over and above the minority interest in the equity of subsidiaries is absorbed by the Company.

2.3 Use of estimates

The brparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period, reported balance of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

2.4 Property, plant and equipment, intangible assets, debrciation and amortisation

Property, plant and equipment and intangible assets are carried at cost of acquisition less accumulated debrciation or amortisation. Cost of acquisition of Property, plant and equipment and intangible assets is inclusive of all incidental expenses relating to cost of acquisition net of tax credits and the cost of installation / erection as applicable.

Advances paid towards the acquisition of Property, plant and equipment and intangible assets outstanding at each balance sheet date, are disclosed as capital advances and the cost of the assets not ready for their intended use before such date, are disclosed as capital work-in-progress.

Debrciation is provided on the straight-line method. Debrciation is provided over the useful lives of the asset, brscribed in Schedule II of the Companies Act, 2013. If the management's estimate of the useful life at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged, debrciation is provided at a higher rate based on the management's estimate of the useful life / remaining useful life.

Pursuant to this policy, debrciation/amortisation is provided based on the following estimated useful life of assets:

Description	Useful life (in years)
Office equipment	5
Electrical equipment	10
Computers	'3-5
Furnitures and fixtures	10
Vehicles	8
Leasehold improvements	5
Software	3

Leasehold improvements are amortised using straight line method over lease period or estimated useful life of assets, whichever is lower.

Debrciation on additions is provided on a pro rata basis from the date of such additions.

Debrciation on assets sold / disposed off during the year is being provided up to the date on which such assets are sold / disposed off.  Modification or extension to an existing asset, which is of capital nature and which becomes an integral part thereof is debrciated prospectively over the remaining useful life of that asset.

2.5 Impairment

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 (higher of net selling price and value in use) of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised 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 asset is reflected at the recoverable amount subject to a maximum of debrciated historical cost.

2.6 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue from time and material service contracts is recognised as the related services are performed.

Revenues from support services provided to the subsidiary companies are recognised based on each terms of the contract/ work with the respective subsidiary companies.

Dividend income is recognised when the right to receive payment is established by the balance sheet date.

Interest income on deposits is recognised on a time proportion basis.

2.7.Investments

Investments that are readily realisable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long-term investments. However, that part of long term investments which is expected to be realised within 12 months after the reporting date is also brsented under 'current assets' as "current portion of long term investments".

Long-term investments (including current portion thereof) are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment.

Current investments are carried at the lower of cost and fair value.

Any reductions in the carrying amount and any reversals of such reductions are charged or credited to the statement of profit and loss.

2.8.Operating leases

Assets acquired under leases other than finance leases are classified as operating leases. The total lease rentals (including scheduled rental increases ) in respect of an asset taken on operating lease are charged to the statement of profit and loss on a straight line basis over the lease term unless another systematic basis is more rebrsentative of the time pattern of the benefit. Initial direct costs incurred specifically for an operating lease are deferred and charged to the statement of profit and loss over the lease term.

2.9.Foreign exchange transactions

Foreign currency transactions are recorded at the exchange rates brvailing at the date of the transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the statement of profit and loss for the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. Exchange differences arising on foreign exchange transactions during the year and on restatement of monetary assets and liabilities are recognised in the statement of profit and loss. Non monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.

The Company, in order to minimise the volatility from fluctuations in foreign currency rates arising from exposure to foreign currency transactions including foreign currency revenue and trade receivables, enters into foreign exchange forward contracts and other derivative instruments.

The Company uses derivatives to hedge its foreign currency exposure relating to firm commitments and highly probable transactions. In accordance with the Guidance note on Accounting for derivative contracts issued by ICAI, forward contracts are fair valued at each reporting date. The resultant gain/ loss if any from these transactions is recognised in the statement of profit and loss.

2.10.Employee benefits

Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short-term employee benefits, which include benefits like salaries, wages, short-term compensated absences and performance incentives and are recognised as expenses in the period in which the employee renders the related service.

Leave encashment: Entitlements of employees of LatentView Analytics Corporation to annual leave, a defined benefit, is accrued based on the expected cost of compensated absences in the period in which the employees render services.

Post-employment benefits:

Provident fund: The Company's contribution in respect to Provident fund are charged to the Statement of profit and loss when incurred. The Company has no further obligation other than the monthly contributions to these fund. As required by Singapore law, the LatentView Analytics Pte Ltd makes contributions to the Central Provident Fund (CPF), a defined contribution plan regulated and managed by the Government of Singapore. CPF contributions are recognised as expense in the same period to which the contribution relates.

Gratuity: The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan"), covering eligible employees. The Plan provides payment to vested employees at retirement, death or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Company. Such contributions are determined by LIC based on actuarial valuation using "projected unit credit method" as at the balance sheet date. All actuarial gains and losses arising during the year are recognised in the statement of profit and loss for the year.

Employee stock compensation plans:

The Company accounts for equity settled stock options in accordance with the Guidance Note on Employee Share-based Payments issued by the Institute of Chartered Accountants of India using the fair value method.

2.11 Earnings per share

Basic earnings per equity share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the reporting period. Diluted earnings per share is computed by dividing the profit or loss after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti-dilutive

2.12 Cash flows

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, financing, and investing activities of the Company are segregated. Cash flows in foreign currencies are accounted at average monthly exchange rates that approximate the actual rates of exchange brvailing at the dates of the transactions.

2.13Taxation

Current tax

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

Deferred tax

Deferred tax charge or credit (reflecting the tax effects of the timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future. However, where there is unabsorbed debrciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation 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 realised. Current tax and deferred tax assets and liabilities are offset to the extent to which the Company has a legally enforceable right to set off and they relate to taxes on income levied by the same governing taxation laws.

Minimum Alternate Tax

For LatentView Analytics Private Limited, Minimum alternative tax (MAT) paid in accordance to the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company would pay normal income tax after tax holiday period.

2.14.Provisions, contingent liabilities and contingent assets

The Company creates a provision when there is brsent obligation as a result of 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. Where 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. Contingent assets are neither recognised nor disclosed in the financial statement.

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 using the accrual basis. GAAP comprises accounting standards as brscribed under section 133 of the Companies Act, 2013 ('Act') read with rule 7 of the Companies (Accounts) Rules, 2014, other pronouncements of the Institute of Chartered Accountants of India  and the provisions of the Act. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Use of estimates

The brparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period, reported balance of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

Segment reporting

a) Primary Segment Information (by business segment)

The Company is principally engaged in a single business segment viz., develop and deploy result-oriented analytics solutions to its customers. Accordingly, the said business segment is the only primary reportable segment under AS 17 - "Segment reporting."

b) Secondary Segment Information (by geographical Segment)

The business is organised into three key geographic segments

Segment Revenue: Revenues are attributable to individual geographic segments based upon the location of the customers.

.	For the year ended	For the year ended
Particulars	March 31, 2019	March 31, 2018
India	11,861,650	6,966,552
United states	2,627,162,190	2,101,052,348
Singapore	83,608,409	129,354,701
Netherlands	58,408,722	26,340,800
United kingdom	107,958,501	87,244,354
Total	2,888,999,472	2,350,958,755

Segment assets:

.	For the year ended	For the year ended
Particulars	March 31, 2019	March 31, 2018
India	1,901,393,533	13,511,722,122
United states	815,112,337	675,480,519
Singapore	97,707,182	125,154,245
Netherlands	37,895,213	15,733,845
United kingdom	63,142,335	51,196,646
Total	2,915,250,600	2,218,737,466

Segment capital expenditure:

.	For the year ended	For the year ended
Particulars	March 31, 2019	March 31, 2018
India	12,752,458	8,324,308
United states	3,043,640	3,563,582
Singapore	-	-
Netherlands	161,199	-
United kingdom	112,964	173,087
Total	16,070,261	12,060,977