2.2 Material Accounting Policies

a) Revenue from Contracts with Customers

Revenue from customer contracts are considered for recognition and measurement when the contract is legally enforceable.
Revenue is recognized upon transfer of control of promised services ("performance obligations") to customers in an amount
that reflects the consideration the Company has received or expects to receive in exchange for these products or services
("transaction price"). Revenue is measured based on the transaction price as per the contract with a customer net of
variable consideration on account of volume discounts, rebates and other similar allowances. When there is uncertainty as to
collectability, revenue recognition is postponed until such uncertainty is resolved.

At contract inception, the Company assesses its promise to transfer products or services to a customer to identify separate
performance obligations. The Company applies judgement to determine whether each product or service promised to a
customer is capable of being distinct, and are distinct in the context of the contract, if not, the promised products or services
are combined and accounted as a single performance obligation.

The Company allocates the transaction price (net of variable consideration) to separately identifiable performance obligations
based on their relative standalone selling price or residual method. Standalone selling prices are determined based on sale
prices for the components when it is regularly sold separately, in cases where the Company is unable to determine the stand¬
alone selling price the Company uses third-party prices for similar deliverables or the Company uses expected cost-plus margin
approach in estimating the stand-alone selling price.

Revenue from contracts priced on time and material basis is recognized when services are rendered, and the related costs
are incurred.

Revenue related to fixed price maintenance and support services contracts where the Company provides services is recognised
based on time elapsed mode and revenue is pro rated over the period for which service is performed or milestone defined.

Revenue from services performed on fixed-price basis is recognized using the input method as defined in Ind AS-115 - Revenue
from Contracts with customers. The Company uses cost expended to measure progress towards completion as there is a
direct relationship between input and productivity. If the Company does not have a sufficient basis to measure the progress of
completion or to estimate total contract revenues and costs, revenue is recognized only to the extent of contract cost incurred
for which recoverability is probable.

When total cost estimates exceed revenue in arrangement, the estimated losses are recognized in the statement of profit and
loss in the year in which such losses become probable based on the current contract estimates.

Revenue from sale of licenses/hardware, where the customer obtains a "right-to-use" the licenses/hardware is recognized
at the point in time when the related license / hardware is made available to the customer. Revenue from licenses/hardware
where the customer obtains a "right to access" is recognized over the access period. For allocating the transaction price to sale
of licenses/hardware and related implementation and maintenance services, the Company measures the revenue in respect of
each performance obligation of a contract as its relative standalone selling price. In case, where the licenses are required to
be substantially customized as part of implementation service, the entire arrangement fee is considered as single performance
obligation and revenue is recognized as per input method.

Revenue for supply of third party products or services are recorded at gross or net basis depending on whether the Company is
acting as the principal or as an agent of the customer. The Company recognizes revenue in the gross amount of consideration
when it is acting as a principal and at net amount of consideration when it is acting as an agent.

The Company accounts for variable considerations like, volume discounts, rebates, pricing incentives to customers and penalties
as reduction of revenue on a systematic and rational basis over the period of the contract. The Company estimates an amount of
such variable consideration using expected value method or the single most likely amount in a range of possible consideration
depending on which method better predicts the amount of consideration to which the Company may be entitled and when
it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with
the variable consideration is resolved.

The Company accrues the estimated cost of post contract support services at the time when the revenue is recognized. The
accruals are based on the Company's historical experience of material usage and service delivery costs.

Contract modifications are accounted for when additions, deletions or changes are approved either to the contract scope or
contract price. Contract modifications involving services added that are not distinct are accounted for on a cumulative catch up
basis, while those that are distinct are accounted for prospectively as a separate contract.

Unbilled revenues' (contract asset) represent revenue earned in excess of billings as at the end of the reporting year. Where right
to consideration is unconditional upon passage of time is classified as a financial asset however, for fixed price development
contracts, where milestone is not due as per contract terms as on date of reporting, the same is classified as non-financial asset.

Unearned & deferred revenue' (contract liabilities) represent billing in excess of revenue recognized.

Deferred contract costs of:

i) I ncremental costs that relate directly to a contract and incurred in securing a contract with a customer are recognized as
an asset when the Company expects to recover these costs and amortized over the contract term.

ii) Fulfillment cost specifically relating to a contract or to an anticipated contract, the costs generate or enhance resources
that will be used in satisfying performance obligations in future; and the costs are expected to be recovered. The asset so
recognized is amortized on a systematic basis consistent with the transfer of goods or services to customer to which the
asset relates.

Use of significant Judgments in revenue recognition:

The Company uses the percentage-of-completion method in accounting for its fixed-price contracts. Use of the percentage-
of-completion method requires the Company to estimate costs expended to date as a proportion of the total costs to be
expended. Costs expended have been used to measure progress towards completion as there is a direct relationship between
input and productivity.

Further, the Company uses significant judgments while determining the transaction price to be allocated to
performance obligations.

Provision for estimated losses, if any, on uncompleted contracts are recorded in the year in which such losses become probable
based on the expected contract estimates at the reporting date.

b) Other income

Other Income comprises primarily of interest income, dividend income, gain/loss on investment and foreign exchange gain/
loss.

I) Interest income is recognized using effective interest method.

II) Dividend income is accounted in the year in which the right to receive the same is established.

c) Employee benefits

I) Short-term employee benefits

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

d) Post-employment benefits

i) Defined contribution plan:

The Company's superannuation fund and pension scheme are classified as defined contribution plans. The contribution
paid payable under the schemes is recognized during the year in which the employee renders the related service.

ii) Defined benefit plans:

The provident fund scheme managed by trust, employee's gratuity fund scheme managed by insurers and post-retirement
medical benefit scheme are the Company's defined benefit plans. Wherever applicable, the present value of the obligation
under such defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method,
which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures
each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash-flows. The discount rates used for determining
the present value of the obligation under defined benefit plans is based on the market yields on government bonds as
at the balance sheet date, having maturity periods approximating to the terms of related obligations. Actuarial gains and
losses through re-measurement of the defined benefit liability/ (asset) are recognized in other comprehensive income.
The actual return of portfolio of plan assets, in excess of yields computed by applying the discount rate used to measure
the defined benefit obligation are recognized in Other Comprehensive Income. Remeasurements comprising of actuarial

gains or losses and return on plan assets (excluding amounts included in net interest on the net defined benefit liability)
are not reclassified to statement of profit and loss in subsequent years.

The effect of any plan amendment is recognized in statement of profit and loss.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or
settlement occurs. Past service cost resulting from a plan amendment or curtailment are recognized immediately in the
statement of profit and loss.

iii) Compensated absences

Compensated absences which are expected to occur within twelve months after the end of the period in which the
employee renders the related services are recognized as undiscounted liability at the balance sheet date. Compensated
absences which are not expected to occur within twelve months after the end of the year in which the employee renders
the related services are recognized as an actuarially determined liability at the present value of the defined benefit
obligation at the balance sheet date.

iv) Long-term employee benefits

The obligation for long-term employee benefits like long-term compensation absences is recognized as determined by
actuarial valuation performed by independent actuary at each balance sheet date using Projected Unit Credit Method on
the additional amount expected to be paid/ availed as a result of unused entitlement that has accumulated at balance
sheet date. Actuarial gains and losses are recognized immediately in statement of profit and loss.

v) Social security plans

Employer's contribution payable with respect to the social security plans, which are defined contribution plans, is charged
to the statement of profit and loss in the year in which employee renders the services.

The Code on Social Security, 2020 has been enacted by the Indian Parliament, which would impact the contributions by
the Company towards Provident Fund and Gratuity. The Code has been published in the Gazette of India. The effective
date from which the changes will be applicable and the corresponding Rules, are yet to be notified. The effective date from
which the changes will be applicable and the corresponding Rules, are yet to be notified. The Company will complete its
evaluation and will give appropriate impact in the year in which, the Code and the corresponding Rules become effective.

e) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses if any. Cost includes
expenditure directly attributable to the acquisition or construction of the asset and cost incurred for bringing the asset to its
present location and condition.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items
(major components) of property, plant and equipment. Subsequent expenditure 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. Repairs and maintenance costs are recognized in the statement of profit and loss when
incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or disposition
of the asset and the resultant gains or losses are recognized in the statement of profit and loss.

Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the cost of
property, plant and equipment not ready for intended use before such date are disclosed under capital advances and capital
work-in-progress (CWIP) respectively.

f) Intangible assets

Intangible assets are stated at cost, less accumulated, amortization and impairment. Goodwill represents the cost of acquired
businesses in excess of the fair value of net identifiable assets acquired.

g) Impairment

I) Impairment of trade receivables, unbilled receivables and lease receivables

The Company assesses at each date of balance sheet whether a financial asset in form of trade receivables and unbilled
receivables is impaired. In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for
measurement and recognition of impairment loss. As a practical expedient, the Company uses a provision matrix to
determine impairment loss on portfolio of its trade receivables and unbilled receivables. The provision matrix is based
on available external and internal credit risk factors such as credit default, credit rating from credit rating agencies and
Company's historically observed default rates over the expected life of trade receivables and unbilled receivables. ECL
impairment loss allowance or reversal is recognized during the year as expense or income respectively in the statement of
profit and loss.

II) Impairment of intangible assets

i) Goodwill

Goodwill represents the cost of acquired businesses in excess of the fair value of net identifiable assets acquired.
Goodwill is not amortized but is tested for impairment annually or immediately when events or changes in
circumstances indicate that an impairment loss would have occurred. For the purpose of impairment testing,
goodwill acquired in a business combination is allocated to the Company's cash generating units (CGU) or group
of CGU's expected to benefit from the synergies arising from the business combination. A CGU is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other
assets or group of assets.The carrying amount of the cash generating unit, including goodwill, is compared with its
fair value. When the carrying amount of the cash generating unit exceeds its fair value, a goodwill impairment loss
is recognized. Total impairment loss of a CGU is allocated first to reduce the carrying amount of goodwill allocated
to the CGU and then to the other assets of the CGU prorata on the basis of the carrying amount of each asset in the
CGU. Goodwill impairment losses are not reversed.

ii) Other intangible assets

At the end of each reporting year, the Company reviews the carrying amounts of intangible assets to determine if
there is any indication of loss suffered. If such indication exists, the recoverable amount of the asset is estimated to
determine the extent of the impairment loss. Recoverable amount is the higher of the value in use or fair value less
cost to sell. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates
the recoverable amount of the cash-generating unit to which the asset belongs.

III) Impairment of investments in subsidiaries

The Company assesses investments in subsidiaries for impairment 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 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 recognized in the statement of profit and loss.

h) Leases

The Company as a lessee

The Company's lease asset classes primarily consist of leases for land, office premises and furniture & fixtures. 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: (1) the contract involves
the use of an identified asset (2) the company has substantially all of the economic benefits from use of the asset throughout
the period of the lease and (3) the company has the right to direct the use of the asset throughout the period of use.

At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease
liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve 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 include 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 right-of-use 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.

Right-of-use 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. Right of use 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 Company determines the lease term as the non-cancellable period of a lease, together with periods covered by an option
to extend the lease, where 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 the option.

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 the leases. The incremental borrowing rate depends on the term, currency and start date of the
lease and is determined based on a series of inputs including: the risk-free rate based on government bond rates and a country-
specific risk adjustment.Lease liabilities are remeasured with a corresponding adjustment to the related right-of-use asset if the
company changes its assessment if whether it will exercise an extension or a termination option.

A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability
is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount
rate at the effective date of the modification.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as
financing cash flows.

The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases
are classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately.
The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight-line basis over the term of the relevant lease.

m) Financial Instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

I) Initial measurement

Financial assets (excluding trade receivables) and liabilities are initially measured at fair value, i.e. transaction price.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value
measured on initial recognition of financial asset or financial liability. Trade receivables that do not contain a significant
financing component are measured at transaction price.

II) Subsequent classification and measurement

i) Non-derivative financial assets

A) Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost if:

a) the financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows and

b) the contractual terms of financial assets give rise on specified dates that are solely payments of principal
and interest on the principal amount outstanding.

Financial assets at amortized cost are subsequently measured using effective interest method less impairment
loss if any.

B) Debt instruments at fair value through Other Comprehensive Income (FVTOCI)

Debt instruments are subsequently measured at fair value through other comprehensive income if the financial
asset is held within a business model whose objective is achieved by both collecting contractual cash flows
on specified dates that are solely payments of principal and interest on the principal amount outstanding and
selling the financial asset. Company recognizes interest income, impairment losses & reversals and foreign
exchange gain/(loss) in statement of profit and loss. On derecognition of the asset, cumulative gain or loss
previously recognized in OCI is reclassified from equity to profit and loss. Interest earned is recognized under
the effective interest rate (EIR) method.

C) Equity instruments at FVTOCI

All equity instruments are measured at fair value. Equity instruments held for trading is classified as FVTPL. For
all other equity instruments, the Company may make an irrevocable election to present subsequent changes in
the fair value in OCI. The Company makes such election on an instrument-by-instrument basis. If the Company
decides to classify an equity instrument as FVTOCI, then all fair value changes on the instrument, excluding
dividend are recognized in OCI. On derecognition of the instrument the cumulative gain or loss is not reclassified
to the statement of profit and loss, but will be transferred to retained earnings.

D) Financial assets at fair value through profit and loss (FVTPL)

Financial assets are measured at fair value through profit or loss unless they are measured at amortized cost
or at fair value through Other Comprehensive Income on initial recognition. The transaction costs directly
attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately
recognized in statement of profit and loss.

ii) Non-derivative financial liability

Financial liabilities are initially recognized at fair value, and subsequently carried at amortized cost using the effective
interest method except for contingent consideration recognized in a business combination which is subsequently
measured at fair value through profit and loss.

iii) Investment in subsidiaries and joint ventures

I nvestment in Subsidiaries and joint ventures are carried at cost less impairment, if any in the Standalone Financial
Statements. Dividend income from subsidiaries is recognized when its right to receive the dividend is established.

iv) Derivative financial instrument

The Company holds derivative financial instrument such as foreign exchange forward contracts and options contracts
including a combination of purchased and written options to mitigate the risk of changes in exchange rates on
foreign currency exposures and forecast transactions. The counterparty for these contracts is generally a bank.

The Company uses hedging instruments that are governed by the risk management policy which is approved by
the board of directors. The policy provides written principles on the use of such derivative financial instruments.
The Company designates such instruments as hedges and performs assessment of hedge effectiveness based on
consideration of terms of the hedging instrument, the economic relationship between the hedging instrument and
hedged item and the objective of the hedging.

Derivatives are recognized and measured at fair value. Attributable transaction costs are recognized in the statement
of profit and loss.

A) Cash flow hedges

The Company designates certain derivative instruments as cash flow hedges to mitigate the risk of foreign
exchange exposure on highly probable forecast transactions.

When a derivative is designated as a Cash flow hedge instrument, the effective portion of changes in fair value
of the derivative is recognized in Other Comprehensive Income and presented within equity as hedging reserve.
Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the Statement
of Profit and Loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge
accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised,
the cumulative gain or loss on the hedging instrument recognized in Cash flow hedge reserve is transferred to
the Statement of Profit and Loss upon the occurrence of related forecasted transaction.

B) Fair value hedges

Changes in the fair value of the derivative instruments designated as fair value hedges are recognized in
statement of profit and loss.

III) Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial assets expire
or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability is
derecognized from the Company's balance sheet where the obligation specified in the contract is discharged or cancelled
or expired.

IV) Offsetting

Financial assets and financial liabilities are offset and the net amounts are presented in the balance sheet when, and only
when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them
on a net basis or to realize the asset and settle the liability simultaneously.

n) Taxes on income

Income tax expense comprises current and deferred income tax. Tax on income for the current year is determined on the basis
of taxable income and tax credits computed in accordance with the provisions of the Indian Income tax Act, 1961. Foreign
branches recognize current tax /deferred tax liabilities and assets in accordance with the applicable local laws.

Income tax and deferred tax expense is recognized in the statement of profit and loss except to the extent that it relates to items
recognized directly in other comprehensive income, in which case income tax expense is recognized in Other Comprehensive
Income. Current income tax for current and prior years is recognized at the amount expected to be paid to or recovered from
the tax authorities.

The Company offsets current tax assets and current 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.
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 except when the deferred income tax arises from the initial
recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting
nor taxable profit or loss at the time of the transaction. Other deferred tax assets are recognized and carried forward to the
extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred
tax assets can be realized. 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 as on the balance sheet date and are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. Deferred income taxes are not provided on the undistributed earnings of
branches where it is expected that the earnings of the branch will not be distributed in the foreseeable future.

The Company offsets deferred income tax assets and liabilities, where it has a legally enforceable right to offset current tax
assets against current tax liabilities, and they relate to taxes levied by the same taxation authority on either the same taxable
entity, or on different taxable entities where there is a right and an intention to settle the current tax liabilities and assets on a
net basis or their tax assets and liabilities will be realized simultaneously.

o) Borrowing costs

Borrowing costs include finance costs, commitment charges, interest expense on lease liabilities. Borrowing costs are recognized
in the statement of profit and loss using the effective interest rate method.

p) Cash & Cash Equivalents

The Company considers all highly liquid investments, which are readily convertible into known amounts of cash that are subject
to an insignificant risk of change in value to be cash equivalents. Cash and cash equivalents consist of balances with banks
which are unrestricted for withdrawal and usage.