2. Material accounting policies

This note provides a list of the material accounting
policies adopted in the preparation of these
financial statements. These policies have been
consistently applied to all the years presented,
unless otherwise stated.

2.1 Basis of preparation of financial
statements

a) Statement of compliance

These standalone Ind AS Financial
Statements ("financial statements") have
been prepared in accordance with
Indian Accounting Standards (Ind AS)
as prescribed under section 133 of the
Companies Act, 2013 ("the Act") read with
companies (Indian accounting standard)
rules as amended from time to time and
other relevant provisions of the Act and

guidelines issued by the Securities and
Exchange Board of India (SEBI).

The financial statements of the Company
for the year ended 31 March 2025 were
approved for issue in accordance with the
resolution of the Board of Directors dated
16 May 2025.

Basis of measurement

These financial statements have been
prepared on a historical cost convention
and on an accrual basis, except for the
following material items which have been
measured at fair value as required by
relevant Ind AS

• Derivative financial instruments;

• Financial instruments classified as fair
value through other comprehensive
income or fair value through profit or loss;
and

• The net defined benefit asset/(liability)
is recognized as the present value of
defined benefit obligation less fair value
of plan assets

b) Critical estimates and judgement

The preparation of financial statements
requires management to make judgments,
estimates and assumptions that affect the
application of accounting policies and
the reported amounts of assets, liabilities,
income and expenses. Actual results may
differ from these estimates.

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 in any future periods affected.
In particular, information about significant
areas of estimation uncertainty and critical

judgments in applying accounting policies
that have the most significant effect on
the amounts recognised in the financial
statements is included in the following notes.

• Assessment of useful life of items of
property, plant and equipment and
intangible asset—refer note 2.3

• Estimated impairment of financial
instrument and non-financial assets—refer
note 2.5 and note 2.6

• Recognition and estimation of tax expense
including deferred tax- refer note 2.14
and note 15

• Estimation of assets and obligations
relating to employee benefits—refer note
2.12 and note 30

• Fair value measurement—refer note 2.20
and note 32

• Measurement and likelihood of occurrence
of provisions and contingencies—refer
note 2.8 and note 37

• Measurement of consideration and assets
acquired as part of business combination—
refer note 2.4

• Assessment of revenue based on the
progress of project using percentage of
completion method, measured on the
basis of effort involved which is akin to
output to customer—refer note 2.9

In assessing the recoverability of
receivables including unbilled receivables,
contract assets and contract costs, goodwill,
intangible assets, and certain investments,
the Company has considered internal
and external information up to the date
of approval of these financial statements
including credit reports and economic
forecasts. Based on current indicators of
future economic conditions, the Company
expects to recover the carrying amount of
these assets.

2.2 Current-non-current classification

The Company presents assets and liabilities
in the Balance Sheet based on current/
non-current classification.

Assets

An asset is classified as current when it
satisfies any of the following criteria:

• it is expected to be realised in, or is
intended for sale or consumption in, the
company's normal operating cycle;

• it is held primarily for the purpose of being
traded;

• it is cash or cash equivalent unless it is
restricted from being exchanged or used
to settle a liability for at least 12 months
after the reporting date.

Current assets include the current portion of
non-current financial assets. All other assets
are classified as non-current.

Liabilities

A liability is classified as current when it
satisfies any of the following criteria:

• it is expected to be settled in the company's
normal operating cycle;

• it is held primarily for the purpose of being
traded;

• the company does not have an
unconditional right to defer settlement of
the liability for at least 12 months after
the reporting date. Terms of a liability that
could, at the option of the counterparty,
result in its settlement by the issue of equity
instruments do not affect its classification.

Current liabilities include current portion
of non-current financial liabilities. All other
liabilities are classified as non-current.

b) Investment Properties

Property that is held for long term rental
yields or for capital appreciation or for both,
and that is not occupied by the Company, is
classified as investment property. Investment
property is measured initially at its cost,
including related transaction cost and where
applicable borrowing costs. Subsequent
expenditure is capitalised to assets carrying
amount only when it is probable that
future economic benefits associated with
the expenditure will flow to the Company
and the cost of the item can be measured
reliably. All other repairs and maintenance
are charged to the Statement of Profit
and Loss during the period in which they
are incurred. When part of an investment
property is replaced, the carrying amount
of the replaced part is derecognised.

Investment property consists of freehold land
and building, building is depreciated using
the straight line method over their estimated
useful life of 60 years.

c) Intangible assets

Separately purchased intangible assets are
initially measured at cost. Intangible assets
acquired in a business combination are
recognised at fair value at the acquisition
date. Subsequently, intangible assets
are carried at cost less any accumulated
amortisation and accumulated impairment
losses, if any.

Goodwill is initially recognised based on the
accounting policy for business combinations
(refer note 2.4). Goodwill is not amortised
but is tested for impairment annually.

Internally generated: Expenditure on
research activities is recognised as an
expense in the period in which it is incurred.
Development costs that are directly

attributable to the design and testing of
identifiable and unique software products
controlled/owned by the Company are
recognised as intangible assets when the
following criteria are met:

• it is technically feasible to complete the
development so that it will be available
for use;

• management intends to complete the
content/products and to use or sell it;

• there is an ability to use or sell the
content/products;

• it can be demonstrated how the
content/products will generate probable
future economic benefits and measure it ;

• adequate technical, financial and other
resources to complete the development
and to use or sell the content/products are
available, and

• the expenditure attributable to the
content/products during its development
can be reliably measured.

Directly attributable costs that are
capitalised as part of the intangible assets
include direct costs, employee costs and
an appropriate portion of relevant
overheads. Capitalised development costs
are recorded as intangible assets and
amortised from the point at which the asset
is available for use.

d) Depreciation and amortisation

methods, estimated useful lives and
residual value

Depreciation on items of property, plant
and equipment is provided on a pro-rata
basis on the straight-line method based on
useful life specified in Part C of Schedule II
to the Companies Act, 2013.

Freehold land is not depreciated. Leasehold
improvements are amortised on a straight
line basis over the period of lease or their
useful lives, whichever is shorter.

Intangible assets are amortised on a pro¬
rata basis on a straight-line basis over
the period of their expected useful lives.
Estimated useful lives by major class of
intangible assets are as follows:

• Software—2 to 5 years

• Customer relationship—5 years

• Trademark—10 years

The residual values, useful lives and method
of depreciation/amortisation of items of
property, plant and equipment, investment
property and intangible assets are reviewed
at each financial year end and adjusted
prospectively, if appropriate.

e) Derecognition

An item of property, plant and equipment
and intangible assets is derecognised
on disposal or when no future economic
benefits are expected from its use and
disposal. Losses arising from retirement
and gains or losses arising from disposal
of a tangible 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.

2.4 Business Combination

Business combinations are accounted for
using the acquisition accounting method
as at the date of the acquisition, which is
the date at which control is transferred to
the Group. The consideration transferred
in the acquisition and the identifiable

assets acquired and liabilities assumed
are recognised at fair values on their
acquisition date.

The Company applies the anticipated
acquisition method where it has the
right and the obligation to purchase any
remaining non-controlling interest. Under
the anticipated acquisition method the
interests of the non-controlling shareholder
are derecognized and Company's liability
relating to the purchase of its shares
is recognized. The recognition of the
financial liability implies that the interests
subject to the purchase are deemed to
have been acquired already. Therefore,
the corresponding interests are presented
as already owned by the Company even
though legally they are still non-controlling
interests. The initial measurement of the fair
value of the financial liability recognized
by the Companyroup forms part of the
consideration for the acquisition.

Business combinations arising from
transfers of interests in entities that are
under the common control are accounted
in accordance with "Pooling of Interest
Method" laid down by Appendix C of
Indian Accounting Standard 103 (Ind AS
103) Business combinations of entities
under common control, notified under the
Companies Act, 2013.

All assets, liabilities and reserves of the
combining entity are recorded in the books
of accounts of the Company at their existing
carrying amounts. Inter-company balances
are eliminated. The difference between
the investments held by the Company and
all assets, liabilities and reserves of the
combining entity are recognized in capital
reserve and presented separately from other
capital reserves. Comparative accounting
period presented in the financial statements

of the Company has been restated for the
accounting impact of the merger, as stated
above, as if the merger had occurred from
the beginning of the comparative period in
the financial statements.

If the initial accounting of business
combination is incomplete by the end of
the reporting period in which the business
combination occurs, the Company reports in
its financial statements provisional amounts
for the items for which the accounting
is incomplete. During the measurement
period, the Company retrospectively adjust
the provisional amounts recognised at the
acquisition date to reflect new information
obtained about the facts and circumstances
that existed at the acquisition date, if known,
would have effected the measurement of
the amount recognised as of that date.
The measurement period as soon as the
Company receives the information it was
seeking about the facts and circumstances
that existed at the acquisition date or learns
that more information is not obtainable
but does not exceeds one year from the
acquisition date.

Goodwill is initially measured at cost,
being the excess of the aggregate of the
consideration transferred over the net
identifiable assets acquired and liabilities
assumed.

Transaction costs are expensed as incurred.
Any contingent consideration payable is
measured at fair value at the acquisition
date.

2.5 Impairment of non-financial assets

The Company's non-financial assets, other
than deferred tax are reviewed at each
reporting date to determine whether there is
any such indication. If any such indication

exits, then the asset's recoverable amount
is estimated. Goodwill is tested annually
for impairment.

For impairment testing, assets that do not
generate independent cash inflows are
grouped together into cash-generating units
(CGUs). Each CGU represents the smallest
group of assets that generates cash inflows
that are largely independent of cash inflows
of other assets or CGUs.

Goodwill arising from a business
combination is allocated to CGUs or group
of CGUs that are expected to benefit from
synergies of the combination.

The recoverable amount of a CGU (or an
individual asset) is the higher of its value in
use and its fair value less costs to sell. Value
in use is based on the estimated future cash
flows, 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 CGU
(or the asset).

An impairment loss is recognised if the
carrying amount of an assets or CGU
exceeds its estimated recoverable amount.
Impairment losses are recognised in the
statement of profit and loss. Impairment loss
recognised in respect of a CGU is allocated
first to reduce the carrying amount of any
goodwill allocated to the CGU, and then
to reduce the carrying amounts of the other
assets of the CGU (or group of CGUs) on a
pro rata basis.

An impairment loss in respect of goodwill
is not subsequently reversed. In respect
of other assets for which impairment loss
has been recognised in prior periods, then
Company reviews at each reporting date
whether there is any indication that the

when they are recognised at fair value.
The Company holds the trade receivables
with the objective to collect the contractual
cash flows and therefore measures them
subsequently at amortised cost using the
effective interest method.

Subsequent measurement

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

• Debt instruments at amortised cost

• Debt instruments at fair value through
other comprehensive income (FVOCI)

• Debt instruments, derivatives and equity
instruments at fair value through profit or
loss (FVPL)

• Equity instruments measured at fair value
through other comprehensive income (FVOCI)

Debt instruments at amortised cost

A 'debt instrument' is measured at the
amortised cost if both the following
conditions are met:

i. The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

ii. Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI)
on the principal amount outstanding.

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest
rate (EIR) method. 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 in
other income in the Statement of Profit and
Loss. The losses arising from impairment are
recognised in the Statement of Profit and
Loss. This category generally applies to
trade and other receivables.

Debt instrument at FVOCI

A 'debt instrument' is classified as at the
FVOCI if both of the following criteria are
met:

i. The objective of the business model is
achieved both by collecting contractual
cash flows and selling the financial assets,
and

ii. The asset's contractual cash flows represent
SPPI.

Debt instruments included within the FVOCI
category are measured initially as well as
at each reporting date at fair value. Fair
value movements are recognised in the
other comprehensive income (OCI). On
derecognition of the asset, cumulative gain
or loss previously recognised in OCI is
reclassified to the Statement of Profit and
Loss. Interest earned whilst holding FVOCI
debt instrument is reported as interest
income using the EIR method.

Debt instrument at FVPL

FVPL is a residual category for debt
instruments. Any debt instrument, which does
not meet the criteria for categorisation as at
amortised cost or as FVOCI, is classified as
at FVPL.

In addition, the Company may elect
to designate a debt instrument, which
otherwise meets amortised cost or FVOCI
criteria, as at FVPL. However, such election
is allowed only if doing so reduces or

eliminates a measurement or recognition
inconsistency (referred to as 'accounting
mismatch').

Debt instruments included within the FVPL
category are measured at fair value with
all changes recognised in the Statement of
Profit and Loss.

Dividend income from the financial assets at
FVPL is recognized in the statement of profit
and loss with in other income separately
from the other gains/losses arising from
changes in fair value.

Equity investments

All equity investments in scope of Ind AS
109 are measured at fair value. Equity
instruments which are held for trading and
contingent consideration recognised by
an acquirer in a business combination to
which Ind AS 103 applies are classified
as at FVPL. For all other equity instruments,
the Company may make an irrevocable
election to present in other comprehensive
income subsequent changes in the fair
value. The Company makes such election
on an instrument by-instrument basis. The
classification is made on initial recognition
and is irrevocable.

If the Company decides to classify an
equity instrument as at FVOCI, then all fair
value changes on the instrument, excluding
dividends, are recognised in the OCI. There
is no recycling of the amounts from OCI to
the Statement of Profit and Loss, even on
sale of investment. However, the Company
may transfer the cumulative gain or loss
within equity.

Equity instruments included within the FVPL
category are measured at fair value with

Investments in Subsidiaries

Investments in subsidiaries are carried at
cost less accumulated impairment losses,
if any. Where an indication of impairment
exists, the carrying amount of the investment
is assessed and written down immediately
to its recoverable amount. On disposal of
investments in subsidiaries, the difference
between net disposal proceeds and the
carrying amounts are recognised in the
Statement of Profit and Loss.

Impairment of financial instrument

The Company recognizes loss allowance
using the expected credit loss (ECL)
model for the financial assets which are
not fair valued through profit or loss. Loss
allowance for trade receivables with
no significant financing component is
measured at an amount equal to lifetime
ECL. In determining the allowances for
doubtful trade receivables, the Company
has computed the expected credit loss
allowance for trade receivables based on
a provision matrix. The provision matrix
takes into account historical credit loss
experience and is adjusted for forward
looking information. The expected credit
loss allowance is based on the ageing of
the receivables that are due and rates used
in the provision matrix. For all financial
assets with contractual cash flows other
than trade receivable, ECLs 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. The
amount of ECLs (or reversal) that is required
to adjust the loss allowance at the reporting
date to the amount that is required to be

Derecognition

A financial asset (or, where applicable, a
part of a financial asset or part of a group
of similar financial assets) is primarily
derecognized (i.e., removed from the
Company's balance sheet) when:

• The rights to receive cash flows from the
asset have expired, or

• 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.

When the Company has transferred
its rights to receive cash flows from an
asset or has entered into a pass-through
arrangement, it evaluates if and to
what extent it has retained the risks and
rewards of ownership. When it has neither
transferred nor retained substantially
all of the risks and rewards of the asset,
nor transferred control of the asset, the
Company continues to recognise the
transferred asset to the extent of the
Company's continuing involvement. In
that case, the Company also recognises
an associated liability. The transferred
asset and the associated liability are
measured on a basis that reflects the
rights and obligations that the Company
has retained.

Financial liabilities

Financial liabilities are classified as
measured at amortised cost or FVPL. A
financial liability is classified as at FVPL if
it is classified as held-for-trading, or it is
a derivative or it is designated as such on
initial recognition.

Financial liabilities at FVPL are measured at
fair value and net gains and losses, including
any interest expense, are recognised in
Statement of Profit and Loss. Other financial
liabilities are subsequently measured at
amortised cost using the effective interest
method. Interest expense and foreign
exchange gains and losses are recognised
in Statement of Profit and Loss. Any gain or
loss on derecognition is also recognised in
Statement of Profit and Loss.

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.

Derivative financial instruments

The Company uses derivative financial
instruments primarily forward contract
to mitigate its currency risk. Such
derivative financial instruments are initially
recognised at fair value on the date on
which a derivative contract is entered into