| 2. | MATERIAL ACCOUNTING POLICIES

a) Statement of compliance

The Standalone financial statements which
comprises of Standalone Balance Sheet as at
March 31, 2026, the Statement of Profit and Loss
for the year ended March 31, 2026, the Statement
of Cash Flows for the year ended March 31, 2026
and the Statement of Changes in Equity for the year
ended March 31, 2026 and accounting policies and
other explanatory information (together hereinafter
referred to as 'Standalone Financial Statements')
have been prepared in compliance with Indian
Accounting Standards (“Ind AS”), the provisions of
Division II of Schedule III of the Companies Act, 2013
(“the Companies Act”), as applicable and guidelines
issued by the Securities and Exchange Board of India
(“SEBI”). The Ind AS are prescribed under Section
133 of the Companies Act read with Rule 3 of the
Companies (Indian Accounting Standards) Rules,
2015 and amendments issued thereafter. Accounting
policies have been applied consistently to all periods
presented in these standalone financial statements,
except for the adoption of new accounting standards,
amendments and interpretations effective from
May 7, 2025. The standalone financial statements
correspond to the classification provisions contained
in Ind AS 1, “Presentation of Financial Statements”. For

clarity, various items are aggregated in the statement
of profit and loss and balance sheet. These items
are disaggregated separately in the notes to the
standalone financial statements, where applicable.
All amounts included in the standalone financial
statements are reported in Crores of Indian rupees
(' in Crore) except share and per share data, unless
otherwise stated. Due to rounding off, the numbers
presented throughout the document may not add
up precisely to the totals and percentages may not
precisely reflect the absolute figures. Previous year
figures have been regrouped/rearranged, wherever
necessary.

b) Basis of preparation

These financial statements have been prepared on
the historical cost and accrual basis, except for certain
financial instruments which are measured at fair values
at the end of each reporting period, as explained in the
accounting policies below. Historical cost is generally
based on the fair value of the consideration given in
exchange for goods and services. Fair value is the
price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between
market participants at the measurement date.

c) Critical accounting estimates and judgments

The preparation of these financial statements in
conformity with the recognition and measurement
principles of Ind AS requires the management of the
Company to make estimates and assumptions that
affect the reported balances of assets and liabilities,
disclosures relating to contingent liabilities as at the
date of the financial statements and the reported
amounts of income and expense for the periods
presented. Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimates are revised and future periods are affected.

Key sources of estimation of uncertainty at the date of
the financial statements, which may cause a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are in respect of
following:

(i) Impairment of investments in subsidiaries

The Company reviews its carrying value of
investments carried at cost / amortised cost
annually, or more frequently when there is an
indication for impairment. If the recoverable
amount is less than its carrying amount, the

impairment loss is accounted for in the statement
of profit and loss.

(ii) Useful lives of property, plant and equipment
and Intangible Assets

(a) Property, Plant and Equipment

The Company depreciates property, plant and
equipment on a straight-line basis over estimated
useful lives of the assets. The charge in respect
of periodic depreciation is derived based on an
estimate of an asset’s expected useful life and
the expected residual value at the end of its life.
The lives are based on historical experience with
similar assets as well as anticipation of future
events, which may impact their life, such as
changes in technology. The estimated useful life
is reviewed at least annually.

(b) Intangibles

The Company amortises intangible assets on
a straight-line basis over estimated useful lives
of the assets. The useful life is estimated based
on a number of factors including the effects of
obsolescence, demand, competition and other
economic factors such as the stability of the
industry and known technological advances and
the level of maintenance expenditures required
to obtain the expected future cash flows from
the assets. The estimated useful life is reviewed
at least annually.

(iii) Provision for Income Tax and Deferred Tax
Assets

(a) Income Tax

The Company’s primary tax jurisdiction is India.
It applies estimates and judgments based on
relevant rulings for revenue, costs, allowances,
and disallowances, including the likelihood of
tax positions being upheld in assessments.
Determining income tax provisions involves
significant judgment, as tax assessments can be
complex and prolonged.

(b) Deferred tax

Deferred tax is recorded on temporary
differences between the tax bases of assets
and liabilities and their carrying amounts, at the
rates that have been enacted or substantively
enacted at the reporting date. The ultimate
realisation of deferred tax assets is dependent
upon the generation of future taxable profits

during the periods in which those temporary
differences and tax loss carry-forwards including
unabsorbed depreciation become deductible.
The Company considers expected reversal
of deferred tax liabilities and projected future
taxable income in making this assessment.
The amount of deferred tax assets considered
realisable could vary in the near term based on
estimates of future taxable income during the
carry forward period.

(iv) Provisions, Contingent liabilities and
Contingent Assets

A provision is recognised when the Company
has a present 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 a reliable estimate can be made.
Provisions (excluding retirement benefits and
compensated absences) are not discounted
to its present value unless the effect of time
value of money is material and are determined
based on best estimate required to settle the
obligation at the Standalone Balance sheet date.
These are reviewed at each Standalone Balance
sheet date and adjusted to reflect the current
best estimates. The Company uses significant
judgements to assess contingent liabilities.
Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only
by the occurrence or non-occurrence of one
or more uncertain future events not wholly
within the control of the Company or a present
obligation that arises from past events where it is
either not probable that an outflow of resources
will be required to settle the obligation or a
reliable estimate of the amount cannot be made.
A contingent asset is neither recognised nor
disclosed in the Standalone financial statements.

(v) Revenue recognition

The Company’s contracts with customers
include promises to transfer multiple products
and services to a customer. Revenues from
customer contracts are considered for
recognition and measurement when the
contract has been approved, in writing, by the
parties to the contract, the parties to contract
are committed to perform their respective
obligations under the contract, and the contract

is legally enforceable. The Company assesses
the services promised in a contract and identifies
distinct performance obligations in the contract.
Identification of distinct performance obligations
to determine the deliverables and the ability of
the customer to benefit independently from
such deliverables, and allocation of transaction
price to these distinct performance obligations
involves significant judgement.

Fixed-price maintenance revenue is recognized
rateably on a straight-line basis when services
are performed through an indefinite number of
repetitive acts over a specified period. Revenue
from fixed-price maintenance contract is
recognized rateably using a percentage of
completion method when the pattern of benefits
from the services rendered to the customer and
the Company's costs to fulfil the contract is not
even through the period of the contract because
the services are generally discrete in nature and
not repetitive. The use of method to recognise
the maintenance revenues requires judgment
and is based on the promises in the contract and
nature of the deliverables.

The Company uses the percentage-of-
completion method in accounting for other
fixed-price contracts. Use of the percentage-of-
completion method requires the Company to
determine the actual efforts or costs expended
to date as a proportion of the estimated total
efforts or costs to be incurred. Efforts or
costs expended have been used to measure
progress towards completion as there is a direct
relationship between input and productivity.
The estimation of total efforts or costs involves
significant judgement and is assessed
throughout the period of the contract to reflect
any changes based on the latest available
information.

Contracts with customers include subcontractor
services or third-party vendor equipment
or software in certain integrated services
arrangements. In these types of arrangements,
revenue from sales of third-party vendor
products or services is recorded net of costs
when the Company is acting as an agent
between the customer and the vendor, and
gross when the Company is the principal for
the transaction. In doing so, the Company first
evaluates whether it controls the good or service

before it is transferred to the customer. The
Company considers whether it has the primary
obligation to fulfil the contract, inventory risk,
pricing discretion and other factors to determine
whether it controls the goods or service and
therefore, is acting as a principal or an agent.

Provisions for estimated losses, if any, on
incomplete contracts are recorded in the period
in which such losses become probable, based
on the estimated efforts or costs to complete the
contract.

(vi) Fair value measurement of financial
instruments

When the fair value of financial assets and
financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in
active markets, their fair value is measured using
valuation techniques including the Discounted
Cash Flow model. The inputs to these models
are taken from observable markets where
possible, but where this is not feasible, a degree
of judgement is required in establishing fair
values. Judgements include considerations
of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these
factors could affect the reported fair value of
financial instruments.

(vii) Impairment of financial assets (other than at
fair value)

Measurement of impairment of financial
assets require use of estimates, which have
been explained in the note on financial assets,
financial liabilities and equity instruments, under
impairment of financial assets (other than
at fair value). Please refer Note 2(m)(i) for the
estimates involved in measurement of Expected
Credit Loss.

(viii) Employee benefits

The accounting of employee benefit plans in the
nature of defined benefit requires the Company
to use assumptions. These assumptions have
been explained under employee benefits note.
(Please refer Note 2(p)).

(iX) Leases

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires

significant judgement. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and
the applicable discount rate. The Company
determines the lease term as the non¬
cancellable period of a lease, together with both
periods covered by an option to extend the
lease if the Company is reasonably certain to
exercise that option; and periods covered by an
option to terminate the lease if the Company is
reasonably certain not to exercise that option. In
assessing whether the Company is reasonably
certain to exercise an option to extend a lease,
or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances
that create an economic incentive for the
Company to exercise the option to extend the
lease, or not to exercise the option to terminate
the lease. The Company revises the lease term if
there is a change in the non-cancellable period
of a lease. The discount rate is generally based
on the incremental borrowing rate specific to the
lease being evaluated or for a portfolio of leases
with similar characteristics.

(X) Other estimates

The share-based compensation expense is
determined based on the Company estimate of
equity instruments that will eventually vest.

d) Revenue Recognition

The Company earns primarily from providing
services of Information Technology (IT) solutions and
Transaction services.

- The Company earns primarily from providing
services of Information Technology (IT) solutions
and Transaction services.

Revenue is recognised upon transfer of control of
promised products or services to customers in an
amount that reflects the consideration which the
Company expects to receive in exchange for those
products or services. Revenue towards satisfaction of
a performance obligation is measured at the amount
of transaction price (net of variable consideration)
allocated to that performance obligation. The
transaction price of services rendered is net of variable
consideration on account of discounts and schemes
offered by the company as a part of the contract.

Revenue from time and material and job contracts
is recognised on output basis measured by units
delivered, efforts expended, number of transactions
processed, etc.

Revenue related to fixed price maintenance and
support services contracts where the Company is
standing ready to provide services is recognised
based on time elapsed mode and revenue is straight
lined over the period of performance.

Revenue from software development and related
services have been recognised basis guidelines of
Ind AS 115 - “Revenue from contract with customers”,
by applying the revenue recognition criteria for
each distinct performance obligation based on the
contractual arrangement in conjunction with the
Company’s accounting policies.

Revenue from the sale of and Cost of, distinct third-
party hardware is recognised upon performance of
the contractual obligation.

The Company recognises revenue in terms of the
contracts with its customers, combined with its
accounting policies. Revenue is measured based
on the transaction price, which is the consideration,
adjusted for volume discounts, service level credits,
performance bonuses, price concessions and
incentives, if any, as specified in the contract with the
customer. Revenue also excludes taxes collected from
customers.

Revenue recognition for fixed priced development
contracts is based on percentage completion
method. Invoicing to the client is based on milestones
as stipulated in the contract.

Revenue from transaction services and other service
contracts is recognized based on transactions
processed or manpower deployed.

Revenue from sharing of infrastructure facilities is
recognised based on usage of facilities.

Unbilled revenue is accounted on estimated basis in
respect of contracts where the contractual right to
consideration is based on completion of contractual
milestones and other technical measurements.
Revenue from the last invoicing date to reporting date
is recognized as unbilled revenue.

Revenue from subsidiaries is recognised based on
transaction price which is at arm’s length.

Performance Obligation and remaining
performance obligation

The remaining performance obligations disclosure
provides the aggregate amount of the transaction
price yet to be recognized as at the end of the
reporting period and an explanation as to when the
entity expects to recognize these amounts in revenue.
Applying the practical expedient as given in Ind AS 115,
the entity has not disclosed the remaining performance
obligation-related disclosures for contracts where the
revenue recognized corresponds directly with the
value to the customer of the entity’s performance
completed to date, typically those contracts where
invoicing is on time and material basis or fixed price
basis. Remaining performance obligation estimates
are subject to change and are affected by several
factors, including terminations, changes in the scope
of contracts, periodic revalidations, adjustment for
revenue that has not materialized and adjustments for
currency.

e) Interest / Dividend Income

Dividend income is recorded when the right to receive
payment is established. Interest income is recognised
using the effective interest method.

f) Leases

The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgment.
The Company uses significant judgement in assessing
the lease term (including anticipated renewals) and the
applicable discount rate. The Company determines
the lease term as the non-cancellable period of a
lease adjusted with any option to extend or terminate
the lease, if the use of such option is reasonably
certain. The Company makes an assessment on the
expected lease term on a lease-by-lease basis and
thereby assesses whether it is reasonably certain that
any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company
considers all relevant facts and circumstances that
create an economic incentive for the Company
to exercise the option to extend the lease, or not
to exercise the option to terminate the lease. The
Company revises the lease term if there is a change
in the non-cancellable period of a lease. The discount
rate is generally based on the incremental borrowing
rate specific to the lease being evaluated or for a
portfolio of leases with similar characteristics.

The Company as a lessee

The Company’s lease asset classes primarily consist
of leases for buildings. The Company assesses
whether a contract contains a lease, at inception of
a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the
Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the
economic benefits from use of the asset through
the period of the lease and

(iii) the Company has the right to direct the use of
the asset.

(iv) the Company has the right to operate the
asset, or

(v) the Company designed the assets in a way that
predetermined how and for what purpose it will
be issued.

At the date of commencement of the lease, the
Company recognizes a right-of-use (ROU) asset and a
corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term
of 12 months or less (short-term leases) and low value
leases. For these short-term and low-value leases,
the Company recognizes the lease payments as an
operating expense on a straight-line basis over the
term of the lease.

Certain lease arrangements includes the options to
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities includes
these options when it is reasonably certain that they
will be exercised.

The ROU assets are initially recognized at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior
to the commencement date of the lease plus any
initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated
depreciation and impairment losses.

ROU assets are depreciated from the commencement
date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset.
ROU assets are evaluated for recoverability whenever
events or changes in circumstances indicate that

their carrying amounts may not be recoverable. For
the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash
flows that are largely independent of those from
other assets. In such cases, the recoverable amount
is determined for the Cash Generating Unit (CGU) to
which the asset belongs.

The lease liability is initially measured at amortized
cost at the present value of the future lease payments.
The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates in the country
of domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment to
the related ROU asset if the Company changes its
assessment of whether it will exercise an extension or
a termination option.

Lease liability and ROU assets have been separately
presented in the Standalone Balance Sheet.

g) Cost recognition

Costs and expenses are recognised when incurred
and have been classified according to their nature.

The costs of the Company are broadly categorised
in employee benefit expenses, cost of third party
products and services, finance costs, depreciation
and amortisation and other expenses. Employee
benefit expenses include employee compensation,
allowances paid, contribution to various funds and
staff welfare expenses. Cost of third party products
and services mainly include purchase of software
licenses and products, fees to external consultants,
cost of running its facilities, cost of equipment and
other operating expenses. Finance cost includes
interest and other borrowing cost. Other expenses
is an aggregation of costs such as commission
and brokerage, printing and stationery, legal and
professional charges, communication, repairs and
maintenance, etc.

h) Foreign currency

The functional currency of the Company is Indian
rupee (INR).

Foreign currency transactions are translated into the
functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains
and losses resulting from the settlement of such
transactions and from the translation of monetary

assets and liabilities denominated in foreign currencies
at year end exchange rates are generally recognised
in statement of profit and loss. A monetary item for
which settlement is neither planned nor likely to occur
in the foreseeable future is considered as a part of the
entity’s net investment in that foreign operation.

Non monetary assets and liabilities that are measured
in terms of historical cost in foreign currencies are not
retranslated.

Non-monetary items that are measured at fair value in
a foreign currency are translated using the exchange
rates at the date when the fair value was determined.

i) Income taxes

I ncome tax expense comprises current and deferred
income tax. Income tax expense is recognized in net
profit in the Statement of Profit and Loss, except to
the extent that it relates to items recognized directly
in equity, in which case it is recognized in equity or
other comprehensive income. Current income tax
for current and prior periods is recognized at the
amount expected to be paid to or recovered from the
tax authorities, using the tax rates and tax laws that
have been enacted or substantively enacted by the
Balance Sheet date. Deferred income tax assets and
liabilities are recognized for all temporary differences
arising between the tax bases of assets and liabilities,
and their carrying amounts in the financial statements.

Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no
longer probable that the related tax benefit will be
realized. Deferred income tax assets and liabilities
are measured using tax rates and tax laws that
have been enacted or substantively enacted by the
Balance Sheet date. These are expected to apply to
taxable income in the years in which those temporary
differences are expected to be recovered or settled.
The effect of changes in tax rates on deferred income
tax assets and liabilities is recognized as income or
expense in the period that includes the enactment or
the substantive enactment date. A deferred income
tax asset is recognized to the extent that it is probable
that future taxable profit will be available against
which the deductible temporary differences and tax
losses can be utilized. Deferred income taxes are not
provided on the undistributed earnings of subsidiaries
and branches where it is expected that the earnings
of the subsidiary or branch will not be distributed in
the foreseeable future. The Company offsets current
tax assets and current tax liabilities; deferred tax

assets and deferred tax liabilities; where it has a legally
enforceable right to set off the recognized amounts
and where it intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously.
Tax benefits of deductions earned on exercise of
employee share options in excess of compensation
charged to income are credited to equity. Deferred
tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised
in future. Deferred tax assets in case of unabsorbed
depreciation/ losses are recognised only if there is
virtual certainty that such deferred tax asset can be
realised against future taxable profits.

j) Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

(i) Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into
known amounts of cash that are subject to an
insignificant risk of change in value and having
original maturities of three months or less from
the date of purchase, to be cash equivalents.
Cash and cash equivalents consist of balances
with banks which are unrestricted for withdrawal
and usage.

(ii) Financial assets

Initial recognition and measurement

All financial assets are recognised initially at
fair value plus, in the case of financial assets
not recorded at fair value through profit and
loss, transaction costs that are attributable to
the acquisition of the financial asset. However,
trade receivables that do not contain a
significant financing component are measured
at transaction price. Purchases or sales of
financial assets that require delivery of assets
within a time frame established by regulation
or convention in the market place (regular way
trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or
sell the asset.

Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in four categories:

(i) Financial assets carried at amortized
cost

A financial asset is subsequently measured
at amortized cost if it is held within a
business model whose objective is to hold
the asset to collect contractual cash flows
and the contractual terms of the financial
asset give rise on specified dates to cash
flows that are solely payments of principal
and interest on the principal amount
outstanding.

(ii) Financial assets carried at fair value
through other comprehensive income
(FVOCI)

A financial asset is subsequently measured
at fair value through other comprehensive
income if it is held within a business model
whose objective is achieved by both
collecting contractual cash flows and
selling financial assets and the contractual
terms of the financial asset give rise on
specified dates to cash flows that are
solely payments of principal and interest
on the principal amount outstanding.
The Company has made an irrevocable
election for its investments which are
classified as equity instruments to present
the subsequent changes in fair value in
other comprehensive income based on its
business model.

(iii) Financial assets carried at fair value
through profit or loss (FVTPL)

A financial asset which is not classified
in any of the above categories are
subsequently fair valued through profit
or loss.

(iv) Investment in subsidiaries

In the separate financial statements, the
Company accounts for its investments
in subsidiaries in accordance with Ind
AS 27 - Separate Financial Statements.
Investments in subsidiaries are carried at
cost, less impairment

Derecognition

A financial asset (or, where applicable, a part

of a financial asset or part of a group of similar

financial assets) is primarily derecognised (i.e.
removed from the Company’s standalone
balance sheet) when:

(i) The rights to receive cash flows from the
asset have expired, or

(ii) The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a 'pass-through’
arrangement; and either

(a) the Company has transferred
substantially all the risks and rewards
of the asset, or

(b) the Company has neither transferred
nor retained substantially all the risks
and rewards of the asset, but has
transferred control of the asset.

(iii) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair
value through profit and loss, loans and
borrowings or payables as appropriate.

All financial liabilities are recognised initially
at fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs.

The Company’s financial liabilities include
trade and other payables, loans and
borrowings including bank overdrafts and
financial guarantee contracts.

Subsequent measurement

The measurement of financial liabilities
depends on their classification, as
described below:

(i) Financial Liabilities at fair value through
profit and loss

Financial liabilities at fair value through profit
and loss include financial liabilities held for
trading and financial liabilities designated
upon initial recognition as at fair value
through profit and loss. Financial liabilities
are classified as held for trading if they are
incurred for the purpose of repurchasing in
the near term.

Gains or losses on liabilities held for trading
are recognised in the Statement of Profit
and Loss.

Financial liabilities designated upon initial
recognition at fair value through profit and
loss are designated as such at the initial
date of recognition, and only if the criteria
in Ind AS 109 are satisfied. These gains /
loss are not subsequently transferred to
Statement of Profit and Loss. However, the
Company may transfer the cumulative gain
or loss within equity. All other changes in
fair value of such liability are recognised in
the Statement of Profit and Loss.

(ii) Loans and borrowings

After initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortised cost using the EIR
method. Gains and losses are recognised
in statement of profit and loss when the
liabilities are derecognised as well as
through the EIR amortisation process.

Amortised cost is calculated by taking
into account any discount or premium
on acquisition and fees or costs that
are an integral part of the EIR. The EIR
amortisation is included as finance costs in
the statement of profit and loss.

(iii) Financial guarantee contracts

Financial guarantee contracts issued by
the Company are those contracts that
require a payment to be made to reimburse
the holder for a loss it incurs because the
specified debtor fails to make a payment
when due in accordance with the terms
of a debt instrument. Financial guarantee
contracts are recognised initially as a
liability at fair value, adjusted for transaction
costs that are directly attributable to the
issuance of the guarantee. Subsequently,
the liability is measured at the higher of
the amount of loss allowance determined
as per impairment requirements of Ind
AS 109 and the amount recognised less
cumulative amortisation.

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged

or cancelled or expires. When an existing
financial liability is replaced by another
from the same lender on substantially
different terms, or the terms of an existing
liability are substantially modified, such an
exchange or modification is treated as the
derecognition of the original liability and the
recognition of a new liability. The difference
in the respective carrying amounts is
recognised in the statement of profit
and loss.

(iv) Reclassification of financial assets

The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial assets
which are equity instruments and financial
liabilities. For financial assets which are debt
instruments, a reclassification is made only
if there is a change in the business model
for managing those assets. Changes
to the business model are expected to
be infrequent. The Company’s senior
management determines change in the
business model as a result of external or
internal changes which are significant to the
Company’s operations. Such changes are
evident to external parties. A change in the
business model occurs when the Company
either begins or ceases to perform an
activity that is significant to its operations.
If the Company reclassifies financial assets,
it applies the reclassification prospectively
from the reclassification date which is the
first day of the immediately next reporting
period following the change in business
model. The Company does not restate
any previously recognised gains, losses
(including impairment gains or losses) or
interest.

(v) Offsetting of financial instruments

Financial assets and financial liabilities
are offset and the net amount is reported
in the standalone balance sheet if there
is a currently enforceable legal right to
offset the recognised amounts and there
is an intention to settle on a net basis, to
realise the assets and settle the liabilities
simultaneously.

k) Investments in subsidiaries

I nvestments in subsidiaries are measured at cost less
impairment.

l) Property, plant and equipment

Property, plant and equipment are stated at cost, less
accumulated depreciation and impairment, if any.
Costs directly attributable to acquisition are capitalized
until the property, plant and equipment are ready for
use, as intended by the Management. The charge in
respect of periodic depreciation is derived at after
determining an estimate of an asset’s expected useful
life and the expected residual value at the end of its
life. The Company depreciates property, plant and
equipment over their estimated useful lives using the
straight-line method.

Subsequent costs are included in the asset’s
carrying amount or recognised 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. The carrying amount of any
component accounted for as a separate asset is
derecognised when replaced. All other repairs and
maintenance are charged to statement of profit and
loss during the reporting period in which they are
incurred.

Based on technical evaluation, the Management
believes that the useful lives, as given above, best
represent the period over which the Management
expects to use these assets. Hence, the useful lives
for these assets are different from the useful lives
as prescribed under Part C of Schedule II of the
Companies Act 2013. Depreciation methods, useful

lives and residual values are reviewed periodically,
including at each financial year end. The useful lives
are based on historical experience with similar assets
as well as anticipation of future events, which may
impact their life, such as changes in technology.
Advances paid towards the acquisition of property,
plant and equipment outstanding at each Balance
Sheet date is classified as capital advances under
other non-current assets. The cost of assets not ready
to use before such date are disclosed under 'Capital
work-in-progress’. Subsequent expenditures relating
to property, plant and equipment is capitalized only
when it is probable that future economic benefits
associated with these will flow to the Company and
the cost of the item can be measured reliably. The
cost and related accumulated depreciation are
eliminated from the financial statements upon sale or
retirement of the asset. Gains and losses on disposals
are determined by comparing proceeds with carrying
amount. These are included in the statement of profit
and loss.

m) Intangible assets

I ntangible assets acquired separately are measured
on initial recognition at cost. Subsequently, following
initial recognition, intangible assets are carried at cost
less any accumulated amortization and accumulated
impairment losses.

I ntangible assets are amortized over the useful life
and assessed for impairment whenever there is an
indication that the intangible asset may be impaired.
The amortization period and the amortization method
for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting year.
Changes in the expected useful life or the expected
pattern of consumption of future economic benefits
embodied in the asset are considered to modify the
amortization period or method, as appropriate, and
are treated as changes in accounting estimates. The
amortization expense on intangible assets with finite
lives is recognized in the statement of profit and loss.

Gains or losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognized
in the statement of profit and loss when the asset is
derecognized.

n) Intangible Assets Under Development

After the technical feasibility of in-house developed
products has been demonstrated, the company
starts to capitalize the related development costs until
the product is ready for market launch. However, there
can be no guarantee that such products will complete
the development phase or will be commercialized, or
that market conditions will not change in the future,
requiring a revision of management’s assessment
of future cash flows related to those products. Such
changes could lead to additional amortization and
impairment charges.

Research & Development Cost

Research costs are expensed as incurred.
Development expenditure, on an individual project, is
recognized as an intangible asset when the Company
can demonstrate:

• The technical feasibility of completing the
intangible asset so that it will be available for use
or sale

• Its intention to complete and its ability and
intention to use or sell the asset

• How the asset will generate future economic
benefits

• The availability of resources to complete
the asset

• The ability to measure reliably the expenditure
during development

Subsequently, following initial recognition of the
development expenditure as an asset, the cost model
is applied requiring the asset to be carried at cost
less any accumulated amortization and accumulated
impairment losses. Amortization of the asset begins
when development is complete and the asset is
available for use. It is amortized over the period of
expected future benefit. Amortization expense is
recognized in the statement of profit and loss. During
the period of development, the asset is tested for
impairment annually.

o) Impairment

(i) Financial assets (other than at fair value)

As at the end of each financial year, the carrying
amounts of Investments in Subsidiaries and
Joint Ventures are evaluated for recoverability
whenever events or changes in circumstances
indicate that their carrying amounts may not be
recoverable. The Company assesses at each
date of Standalone Balance sheet whether a
financial asset or a group of financial assets is
impaired. Ind AS 109 requires expected credit
losses to be measured through a loss allowance.
The Company recognises lifetime expected
losses for all contract assets and/or all trade
receivables that do not constitute a financing
transaction. For all other financial assets,
expected credit losses are measured at an
amount equal to the 12 month expected credit
losses or at an amount equal to the life time
expected credit losses if the credit risk or the
financial asset has increased significantly since
initial recognition.

Expected Credit Loss

As per Para 5.5.17 of Ind AS 109 an entity shall
measure expected credit losses of a financial
instrument in a way that reflects:

(a) an unbiased and probability-weighted
amount that is determined by evaluating a
range of possible outcomes.

(b) the time value of money

(c) reasonable and supportable information
that is available without undue cost or
effort at the reporting date about past
events, current conditions, and forecasts of
future economic condition

Ind-AS 109 requires expected credit losses
to be measured through a loss allowance.
Accordingly, the Company recognises loss
allowances using the expected credit loss (ECL)
model for the financial assets which are not fair
valued through profit or loss. Expected credit
losses are measured at an amount equal to the
12-month ECL, unless there has been a significant
increase in credit risk from initial recognition
in which case those are measured at lifetime
ECL. Loss allowances for trade receivables are
always measured at an amount equal to lifetime
expected credit losses. The amount of expected
credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date
to the amount that is required to be recognised
is recorded as an impairment gain or loss in the
Statement of Profit and Loss.

The Company determines the allowance for
credit losses based on historical loss experience
adjusted to reflect current and estimated future
economic conditions. The Company considered
current and anticipated future economic
conditions relating to industries the Company
deals with and the countries where it operates.
While assessing the recoverability of receivables
including unbilled receivables, the Company has
considered internal and external information
up to the date of approval of these standalone
financial statements including credit reports and
economic forecasts. The Company expects to
recover the carrying amount of these assets.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage
of time is recognised as a finance cost.

(ii) Investment in Subsidiaries

The Company assesses investments in
subsidiaries for impairment annually or whenever
events or changes in circumstances indicate
that the carrying amount of the investment may
not be recoverable. If any such indication exists,
the Company estimates the recoverable amount
of the investment in subsidiary. The recoverable
amount of such investment is the higher of its
fair value less cost of disposal (“FVLCD”) and its
value-in-use (“VIU”). The VIU of the investment is
calculated using projected future cash flows. If
the recoverable amount of the investment 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.

(iii) Non-financial assets

As at the end of each financial year, the
carrying amounts of Property, Plant and
Equipment, Intangible assets and Investments
in Subsidiaries and Joint Ventures are evaluated
for recoverability whenever events or changes
in circumstances indicate that their carrying

amounts may not be recoverable. For the
purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less
cost to sell and the value-in-use) is determined
on an individual asset basis unless the asset
does not generate cash flows that are largely
independent of those from other assets. In such
cases, the recoverable amount is determined
for the Cash Generating Unit (CGU) to which the
asset belongs.

The amount of value-in-use is determined as
the present value of estimated future cash flows
from the continuing use of an asset, which may
vary based on the future performance of the
Company and from its disposal at the end of
its useful life. For this purpose, the discount rate
(pre-tax) is determined based on the weighted
average cost of capital of the company suitably
adjusted for risks specified to the estimated
cash flows of the asset.

If such assets are considered to be impaired, the
impairment to be recognized in the Statement
of Profit and Loss is measured by the amount
by which the carrying value of the assets
exceeds the estimated recoverable amount of
the asset. An impairment loss is reversed in the
Statement of Profit and Loss if there has been a
change in the estimates used to determine the
recoverable amount. The carrying amount of
the asset is increased to its revised recoverable
amount, provided that this amount does not
exceed the carrying amount that would have
been determined (net of any accumulated
depreciation) had no impairment loss been
recognized for the asset in prior years.

p) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be
settled wholly within 12 months after the end
of the period in which the employees render
the related service are recognised in respect
of employees’ services up to the end of the
reporting period and are measured at the
amounts expected to be paid when the liabilities
are settled. These liabilities are presented as
current liabilities in the standalone balance sheet.

(ii) Other long-term employee benefit
obligations

The liabilities for earned leave and sick leave
are not expected to be settled wholly within
12 months after the end of the period in which
the employees render the related service. They
are therefore measured as the present value of
expected future payments to be made in respect
of services provided by employees up to the
end of the reporting period using the projected
unit credit method. The benefits are discounted
using the market yields at the end of the
reporting period that have terms approximating
to the terms of the related obligation.

The obligations are presented as current
liabilities in the standalone balance sheet if the
entity does not have an unconditional right to
defer settlement for at least twelve months after
the reporting period, regardless of when the
actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following post¬
employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as
provident fund.

(i) Gratuity obligations

The liability or asset recognised in the standalone
balance sheet in respect of defined benefit
pension and gratuity plans is the present value
of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets.
The defined benefit obligation is calculated
annually by actuaries using the projected unit
credit method.

The present value of the defined benefit
obligation denominated in INR is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of
the reporting period on government bonds
that have terms approximating to the terms
of the related obligation. The benefits which
are denominated in currency other than INR,
the cash flows are discounted using market
yields determined by reference to high-quality
corporate bonds that are denominated in the

currency in which the benefits will be paid, and
that have terms approximating to the terms of
the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in the statement of profit and loss.

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in
which they occur, directly in OCI. They are
included in retained earnings in the statement of
changes in equity and in the standalone balance
sheet.

Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognised
immediately in statement of profit and loss as
past service cost.

(ii) Defined contribution plans

The Company pays provident fund contributions
to publicly administered provident funds as per
local regulations. The Company has no further
payment obligations once the contributions
have been paid. The contributions are
accounted for as defined contribution plans and
the contributions are recognised as employee
benefit expense when they are due. Prepaid
contributions are recognised as an asset to the
extent that a cash refund or a reduction in the
future payments is available.

(iv) Employee Benefits in Foreign Branch

In respect of employees in foreign branch,
necessary provisions are made based on
the applicable local laws. Gratuity and leave
encashment / entitlement as applicable for
employees in foreign branch are provided on
the basis of actuarial valuation and based on
estimates.

(v) Share-based payments

Share-based compensation benefits are
provided to employees via the Employee
Option Plan.

Employee option Plan

The fair value of options granted under the
Employee Option Plan is recognised as an
employee benefits expense with a corresponding
increase in equity. The total amount to be
expensed is determined by reference to the fair
value of the options granted:

(i) including any market performance
conditions

(ii) excluding the impact of any service
and non-market performance vesting
conditions, and

(iii) including the impact of any non-vesting
conditions.

Equity instruments granted are measured by
reference to the fair value of the instrument at the
date of grant. The equity instruments generally
vest in a graded manner over the vesting
period. The fair value determined at the grant
date is expensed over the vesting period of the
respective tranches of such grants (accelerated
amortization). The share-based compensation
expense is determined based on the Company’s
estimate of equity instruments that will eventually
vest. The expense is recognised in the statement
of profit and loss with a corresponding increase
to the 'share based payment reserve’, which
is a component of equity. At the end of every
six months, the entity revises its estimates of
the number of options that are expected to
vest based on the non- market vesting and
service conditions. The Company recognises
the impact of the revision to original estimates,
if any, in Statement of Profit and Loss, with a
corresponding adjustment to equity.

q) Trade and other payables

These amounts represent liabilities for goods and
services provided to the Company prior to the end
of financial year which are unpaid. Trade and other
payables are presented as current liabilities unless
payment is not due within 12 months after the
reporting period.