2.A. Material accounting policies

2.1 (i) Basis of preparation

The standalone financial statements comply in all
material aspects with Indian Accounting Standards
(Ind AS) notified under Section 133 of the Companies
Act, 2013 (the Act) [Companies (Indian Accounting
Standards) Rules, 2015 as amended] and other relevant
provisions of the Act.

The financial statements have been prepared on a
historical cost basis, except for the following assets and
liabilities which have been measured at fair value :

• Derivative financial instruments

• Certain financial assets and liabilities measured
at fair value (refer accounting policy regarding
financial instruments)

• Share based payments

• Net defined benefit liability (Fair value of plan assets
less present value of defined benefit obligations)

All assets and liabilities have been classified as current
and non-current as per the Company’s normal
operating cycle. Based on the nature of services
rendered to customers and time elapsed between
deployment of resources and the realisation in cash and
cash equivalents of the consideration for such services
rendered, the Company has considered an operating
cycle of 12 months.

The standalone financial statements are presented in
“Rs.” and all values are stated Rs. in million, except when
otherwise indicated.

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.

The financial statements of eClerx Employee Welfare
Trust have been included in standalone financial
statements of the Company in accordance with the
requirements of IND AS.

2.1. (ii) New and amended standards adopted by the
company

The Ministry of Corporate Affairs vide notification dated
May 7, 2025 and August 13, 2025 notified the Companies
(Indian Accounting Standards) Amendment Rules, 2025
and Companies (Indian Accounting Standards) Second
Amendment Rules, 2025, respectively, which amended
certain accounting standards (see below) , and are
effective for annual reporting periods beginning on or
after April 1, 2025:

(a) Classification of Liabilities as Current or Non¬
current and Non-current Liabilities with
Covenants -Amendments to Ind AS 1

Borrowings are classified as current liabilities
unless, at the end of the reporting period, the
company has a right to defer settlement of the
liability for at least 12 months after the reporting
period.

Covenants that the company is required to
comply with, on or before the end of the reporting
period, are considered in classifying loan
arrangements with covenants as current or non¬
current. Covenants that the company is required
to comply with after the reporting period do not
affect the classification.

The company does not have any borrowings and
thus the amendments do not have any impact on
the financial statements.

(b) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

In August 2025, the MCA notified amendments
to Ind AS 7 Statement of Cash Flows and Ind
AS 107 Financial Instruments: Disclosures to
clarify the characteristics of supplier finance
arrangements and require additional disclosure of
such arrangements. The disclosure requirements
in the amendments are intended to assist users of
financial statements in understanding the effects

of supplier finance arrangements on an entity’s
liabilities, cash flows and exposure to liquidity risk.

The company does not have any supplier finance
arrangements and thus the amendments do not
have any impact on the financial statements.

(c) International Tax Reform - Pillar Two Model
Rules - Amendments to Ind AS 12

In August 2025, the MCA notified amendments to
Ind AS 12 Income Taxes in response to the OECD’s
BEPS Pillar Two rules and include:

A mandatory temporary exception to the
recognition and disclosure of deferred taxes arising
from the jurisdictional implementation of the Pillar
Two model rules; and

Disclosure requirements for affected entities
to help users of the financial statements better
understand an entity’s exposure to Pillar Two
income taxes arising from that legislation,
particularly before its effective date.

The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately. The remaining disclosure
requirements apply for annual reporting periods
beginning on or after April 1, 2025, but not for any
interim periods ending on or before March 31, 2026.

The amendment had no impact on the
Company’s financial statements as the Company
is not in scope of the Pillar Two model rules.

(d) Lack of Exchangeability - Amendments to Ind
AS 21

The amended Ind AS 21 have added requirements
to help entities to determine whether a currency
is exchangeable into another currency, and the
spot exchange rate to use where it is not.

These amendments did not have any material
impact on the amounts recognised in prior
periods and are not expected to significantly
affect the current or future periods.

2.1 (iii) New standards or amendments not yet adopted

Classification of Liabilities as Current or Non¬
current and Non-current Liabilities with Covenants
- Amendments to Ind AS 1 - This amendment also
includes specific provisions that will take effect for
reporting periods beginning on or after April 1, 2026,
as outlined below.

Under the existing Ind AS 1, where there is a breach of
a material provision of a long-term loan arrangement

on or before the end of the reporting period with the
effect that the liability becomes payable on demand
on the reporting date, the Company does not classify
the liability as current, if the lender agreed, after
the reporting period and before the approval of
the financial statements for issue, not to demand
payment as a consequence of the breach.

However, the amended requirements stipulate that
entities will no longer be permitted to consider lender
waivers that are granted after the reporting date but
before the financial statements are approved for the
purpose of classification of loans. This amendment is
required to be applied retrospectively in accordance
with Ind AS 8.

The Company does not expect this amendment to have
an impact on its operations or financial statements.

2.2. Summary of material accounting policies

a. Foreign currencies

The Company’s financial statements are presented
in Indian Rupees (“Rs.”), which is also the
Company’s functional and presentation currency.

Transactions in foreign currencies are initially
recorded by the Company in its functional currency
using spot rates at the date the transaction first
qualifies for recognition. Monetary assets and
liabilities denominated in foreign currencies
are translated into the functional currency at
exchange rates at the reporting date.

Exchange differences arising on settlement or
translation of monetary items are recognised in
profit or loss.

b. Fair value measurement

The Company measures financial instruments
such as derivatives and certain investments, at
fair value at each balance sheet date.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorised within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair
value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities.

The mutual funds are valued using the closing
NAV.

• Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable-

• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.

For assets and liabilities that are recognised in
the financial statements on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of
the fair value hierarchy as explained above.

This note summarises accounting policy for fair
value. Other fair value related disclosures are
given in the relevant notes.

c. Revenue recognition

Revenue is recognised upon transfer of control of
promised products or services to the customers in
an amount that reflects the consideration which
the Company expects to receive in exchange for
those products or services.

Arrangement with customers for services
rendered by the Company are either on time
and material or on fixed price basis. Revenue
from contracts on time-and-material basis is
recognised as the related services are performed.
Revenue from fixed-price contracts where
the performance obligations are satisfied over
time and where there is no uncertainty as to
measurement or collectability of consideration, is
recognised as per the percentage-of-completion
method. Efforts expended have been used
to measure progress towards completion as
there is a direct relationship between input and
productivity. When there is uncertainty as to
measurement or ultimate collectability, revenue
recognition is postponed until such uncertainty
is resolved. Revenue from maintenance contracts
are recognised on pro-rata basis over the period
of the contract.

Revenue is measured based on the transaction
price, which is the consideration, adjusted

for volume discounts and other variable
considerations, if any, as specified in the contracts
with the customers.

Contract modifications are accounted for when
additions, deletions or changes are approved
either to the contract scope or contract price.
The accounting for modifications of contracts
involves assessing whether the services added to
an existing contract are distinct and whether the
pricing is at the standalone selling price. Services
added that are not distinct are accounted for on
a cumulative catch up basis, while those that are
distinct are accounted for prospectively, either
as a separate contract, if the additional services
are priced at the standalone selling price, or as a
termination of the existing contract and creation
of a new contract if not priced at the standalone
selling price.

The Company presents revenue net of indirect
taxes in its standalone statement of profit and
loss.

Revenue in excess of billing is classified as
contract asset i.e. unbilled revenue while billing
in excess of revenue is classified as contract
liability i.e. deferred revenue.Contract assets are
classified as unbilled receivables when there
is unconditional right to receive cash, and only
passage of time is required, as per contractual
terms. Unbilled Revenues are classified as
non-financial asset if the contractual right to
consideration is dependent on completion of
contractual milestones.

The billing schedules agreed with customers
include periodic performance based payments
and / or milestone based progress payments.
Invoices are payable within the contractually
agreed period.

Deferred contract costs are incremental costs
of obtaining a contract which are recognised as
assets and amortized over the benefit period.

Interest Income

For all financial instruments measured at
amortised cost, interest income is recorded using
the effective interest rate (“EIR”), which is the rate
that exactly discounts the estimated future cash
payments or receipts through the expected life
of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount
of the financial asset. When calculating the
effective interest rate, the Company estimates
the expected cash flows by considering all the
contractual terms of the financial instrument but
does not consider the expected credit losses.

d. Taxes

Current income tax

Current tax charge is based on taxable profit
for the year. The tax rates and tax laws used to
compute the amount are those that are enacted,
at the reporting date in India where the Company
operates and generates taxable income. Current
income tax assets and liabilities are measured at
the amount expected to be recovered from or paid
to the taxation authorities.

Current income tax relating to items recognised
outside profit or loss is recognised outside profit or
loss (either in Other comprehensive income (“OCI”)
or in equity). Current tax items are recognised in
correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns
with respect to situations in which applicable
tax regulations are subject to interpretation
and establishes provisions where appropriate.
Significant judgments are involved in determining
the provision for income taxes. Also, refer to Notes
31.c and 41.

Current tax assets shall be offset with current tax
liabilities relating to the same assessment year and
not cumulatively.

Deferred tax

Deferred tax is provided using the liability
method on temporary differences between
the tax bases of assets and liabilities and
their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax liabilities are recognised for all
taxable temporary differences, except, when
the deferred tax liability arises from an asset or
liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss and does not give rise to equal
taxable and deductible temporary differences.

Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred
tax assets are recognised to the extent that it is
probable that taxable profit will be available against
which the deductible temporary differences, and
the carry forward of unused tax credits and unused
tax losses can be utilised, except:

• When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a

transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable profit
or loss.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed
at each reporting date and are recognised to the
extent that it has become probable that future
taxable profits will allow the deferred tax asset to
be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in OCI or in equity). Deferred tax items
are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities
and the deferred taxes relate to the same taxable
entity and the same taxation authority.

e. Property, plant and equipment

Property, plant and equipment (“PPE”) are stated
at the cost of acquisition including incidental
costs related to acquisition and installation less
accumulated depreciation and impairment loss, if
any. Subsequent costs are included in the asset’s
carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the item will flow
to the Company and the cost of the item can be
measured reliably.

Advances paid towards acquisition of property, plant
and equipment are disclosed as capital advances
under other non - current assets.

Capital work-in-progress includes cost of property,
plant and equipment under installation/ under
development as at the balance sheet date and are
carried at cost, comprising of direct cost and directly
attributable cost.

Gains or losses arising from disposal of property, plant
and equipment are measured as the difference

between the net disposal proceeds and the carrying
amount of the asset and are recognised in the
statement of profit and loss when the asset is disposed.

The Company provides depreciation on property,
plant and equipment (other than leasehold
improvements) using the Written Down Value
method. The rates of depreciation are arrived
at, based on useful lives estimated by the
management as follows:

The residual values, useful lives and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

f. Intangible assets

Intangible assets acquired separately are
measured on initial recognition at cost. Following
initial recognition, intangible assets are carried
at cost less accumulated amortisation and
accumulated impairment losses, if any.

The useful lives of intangible assets are assessed
as either finite or indefinite. There are no intangible
assets assessed with indefinite useful life.

Intangible assets with finite lives are amortised
over the useful economic life and assessed for
impairment whenever there is an indication
that the intangible asset may be impaired.
The amortisation period and the amortisation
method for an intangible asset with a finite
useful life are reviewed at least at the end of each
reporting period. 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 amortisation
period or method, as appropriate, and are
treated as changes in accounting estimates. The
amortisation expense on intangible assets with
finite lives is recognised in the statement of profit

and loss unless such expenditure forms part of
carrying value of another asset.

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

Intangible assets are amortised on straight-line
basis as follows:

g. Leases

The Company as lessee

The determination of whether an arrangement
is, or contains, a lease is based on the substance
of the arrangement at the inception date. The
arrangement is, or contains a lease if, fulfilment
of the arrangement is dependent on the use of a
specific asset or assets or the arrangement conveys
a right to use the asset or assets, even if that right is
not explicitly specified in an arrangement.

Contracts might contain both lease and non-lease
components. However, for leases for which the
company is a lessee, it has elected not to separate
lease and non-lease components and instead
accounts for these as a single lease component

The Company recognises right-of-use asset
and a corresponding lease liability for all lease
arrangements in which the Company is a lessee,
except for a short term lease of 12 months or less
and leases of low-value assets. For short term lease
and low-value asset arrangements, the Company
recognises the lease payments as an rent expense
on straight-line basis over the lease term.

Certain lease arrangements include the options
to extend or terminate the lease before the end
of the lease arrangement. Right-of-use assets and
lease liabilities are measured according to such
options when it is reasonably certain that the
Company will exercise these options.

The right-of-use asset are recognised at the inception
of the lease arrangement at the amount of the initial
measurement of lease liability adjusted for any lease
payments made at or before the commencement
date of lease arrangement reduced by any lease
incentives received, added by initial direct costs
incurred and an estimate of costs to be incurred
by the Company in dismantling and removing the

underlying asset or restoring the underlying asset
or site on which it is located. The right-of-use assets
are depreciated using the straight-line method from
the commencement date over the shorter of lease
term or useful life of right-of-use asset. Right-of-use
assets are tested for impairment whenever there is
an indication that their carrying value may not be
recoverable. Impairment loss, if any is recognised in
the statement of profit and loss account.

The lease liability is 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 arrangement
or, If that rate cannot be readily determined, the
Company’s incremental borrowing rate is used,
being the rate that the Company would have to
pay to borrow the funds necessary to obtain an
asset of similar value to the right-of-use asset
in a similar economic environment with similar
terms, security and conditions. Lease liabilities are
remeasured with corresponding adjustments to
right-of-use assets to reflect any reassessment or
lease modifications.

h. Impairment of non-financial assets

The Company assesses, at each reporting date,
whether there is an indication that an asset may
be impaired. If any indication exists, or when
annual impairment testing for an asset is required,
the Company estimates the asset’s recoverable
amount. An asset’s recoverable amount is the
higher of an asset’s or cash generating unit’s
(“CGU”) fair value less costs of disposal and its
value in use. Recoverable amount is determined
for an individual asset, unless the asset does not
generate cash flows that are largely independent
of those from other assets or group of assets.
When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to its
recoverable amount.

In assessing value in use, the estimated future
cash flows are discounted to their present value
using a pre-tax discount rate that reflects current
market assessments of the time value of money
and the risks specific to the asset. In determining
fair value less costs of disposal, recent market
transactions are taken into account. If no such
transactions can be identified, an appropriate
valuation model is used. These calculations are
corroborated by valuation multiples, quoted share
prices for publicly traded companies or other
available fair value indicators.The Company bases
its impairment calculation on detailed budgets
and forecast calculations, which are prepared
separately for each of the Company’s CGUs to
which the individual assets are allocated.

For assets excluding goodwill, an assessment
is made at each reporting date to determine
whether there is an indication that previously
recognised impairment losses no longer exists
or have decreased. If such indication exists,
the Company estimates the asset’s or CGU’s
recoverable amount. A previously recognised
impairment loss is reversed only if there has been
a change in the assumptions used to determine
the asset’s recoverable amount since the last
impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor
exceed the carrying amount that would have
been determined, net of depreciation, had no
impairment loss been recognised for the asset
in prior years. Such reversal is recognised in the
statement of profit and loss.