We have audited the accompanying standalone financial statements of Cyient Limited ("the Company"), which comprise the
Balance sheet as at March 31, 2026, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income,
the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial
statements, including a summary of material accounting policies and other explanatory information (hereinafter referred to as
the "Standalone Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us , the aforesaid Standalone Financial
Statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31, 2026, its profit including other comprehensive loss, its cash flows and the changes in equity for the year
ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs), as
specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the 'Auditor’s
Responsibilities for the Audit of the Standalone Financial Statements’ section of our report. We are independent of the Company
in accordance with the 'Code of Ethics’ issued by the Institute of Chartered Accountants of India ('ICAI’) together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder,
and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone
Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone
Financial Statements for the financial year ended March 31, 2026. These matters were addressed in the context of our audit of
the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled
the responsibilities described in the Auditor’s responsibilities for the audit of the Standalone Financial Statements section of
our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the Standalone Financial Statements. The results of our
audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on
the accompanying Standalone Financial Statements
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Key audit matters
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How our audit addressed the key audit matters
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Impairment assessment of non-current investments in subsidiaries carried at cost
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(as described in Note 5B of the Standalone Financial Statements)
As at March 31, 2026, the Company has non- current
investments in subsidiaries carried at cost (net of
impairment) of Rs. 18,048 million.
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Our audit procedures included the following:
• We tested the design and operative effectiveness of
management's key internal controls over impairment
assessments.
• We tested management's assessment of indicators
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At the end of each reporting period, the Company assesses
whether there are impairment indicators for investments in
subsidiaries, which includes comparing the carrying value of
each investment with the net asset value of the respective
subsidiary. Where such indicators exist, the recoverable
amount of the investment is determined using the value
in use approach based on discounted cash flow model. A
deficit between the recoverable value and carrying value of
investment would result in impairment.
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of impairment for investments in subsidiaries at the
reporting date including comparison of the carrying value
of investments with the respective subsidiaries' net asset
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values.
• Where such indicators existed.
- Gained an understanding of and evaluated the
methodology used by management to prepare its
cash flow forecasts and the appropriateness of the
assumptions applied. In making this assessment,
we also evaluated the competence, professional
qualification, objectivity and independence of
Company's specialists and Company's personnel
involved in the process.
- With the assistance of our specialists for select
impairment assessments, we assessed the
assumptions on the key drivers of the cash flow
forecasts including discount rates, expected growth
rates and terminal growth rates used; in consideration
of the current and estimated future economic
conditions.
- We assessed the historical accuracy of management's
forecast by comparing actual financial performance to
management's previous forecasts.
- We have analysed the consistency of cash flow
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The inputs to the impairment testing model to determine
value in use includes:
• Projected revenue growth, operating margins, operating
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cash-flows and capex during the periods relating to
explicit forecasts.
• Stable long-term growth rates beyond explicit forecast
period and in perpetuity, and
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• Discount rates that represent the current market
assessment of the risks specific to the investment in
subsidiary, taking into consideration the time value of
money.
The financial projections, basis which the future cash flows
have been estimated consider the impact of the economic
uncertainties on the discount rates, the projected growth
rates and terminal values and subjecting these variables to
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sensitivity analysis.
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forecasts with Management's latest estimates
presented to the Board of Directors as part of the
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Impairment assessment is considered a key audit matter
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budget process.
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because the assumptions on which the tests are based are
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- We assessed the recoverable value headroom by
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highly judgmental and are affected by future market and
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performing sensitivity testing of key assumptions
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economic conditions which are inherently uncertain, and
because of the materiality of the balances to the Standalone
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used.
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Financial Statements as a whole.
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- We have tested the arithmetical accuracy of the
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impairment assessments models.
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• We assessed the adequacy of the related disclosures in
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note 5B to the Standalone Financial Statements.
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Key audit matters
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How our audit addressed the key audit matters
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Accuracy of recognition and measurement of Revenues from external customers
(as described in Note 2 and 17 of the Standalone Financial Statements)
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The application of the revenue recognition standard, Ind AS
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Our audit procedures include the following:
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115 - "Revenue from contracts with customers" involves
certain key judgements and principles for evaluating various
distinctive terms/matters.
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• We tested the design and operating effectiveness
of management's key internal controls over revenue
recognition.
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• Tested relevant information technology systems' controls
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Revenue from services where the revenue has been
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relating to contracts/transactions and related information
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recognised using the percentage-of-completion method
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used in recording and disclosing revenue.
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requires the Company to identify performance obligation,
determine the actual efforts or costs expended to date as
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• Substantive testing of sample revenue contracts /
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a proportion of the estimated total efforts or costs to be
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transactions and performed the following procedures to
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incurred which involves significant judgement throughout
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assess management analysis of compliance with Ind AS
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the period of the contract and is subject to revision as
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115:
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the contract progresses is based on the latest available
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- Read, analyzed and identified the distinct performance
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information.
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obligations in these samples.
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- Compared these performance obligations with that
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As the revenue recognition involves significant estimates
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identified and recorded by the Company.
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and judgments and is material to the Standalone Financial
Statements, we regard this as a key audit matter.
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- Considered the terms of the contracts and assessed
the transaction price including any variable
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consideration to test revenue.
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• Test checked sample contracts / transactions in respect
of:
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- Revenue recorded for time and material contracts
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were tested using a combination of internally approved
time sheets including customer acceptances and
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invoices.
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- Revenue recorded for fixed price contracts is based
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on progress towards completion of performance
obligation, which was verified based on actual cost
relative to estimated cost from management analysis
and systems or external evidence of progress.
Also, reviewed cost incurred with estimated cost
to identify significant variations and reasons and to
verify whether those variations have been considered
in estimating the remaining cost to complete the
contract.
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• Test checked manual journals posted to revenue to
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identify any unusual items and sought explanations from
Management.
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• We assessed the adequacy of relevant disclosures made
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within the Standalone Financial Statements.
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Key audit matters
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How our audit addressed the key audit matters
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Allowance for credit losses for trade receivables including contract assets from external customers
(as described in note 2 and 9 of the Standalone Financial Statements)
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As at March 31, 2026, the Company has outstanding trade
receivables and contract assets of Rs. 5,696 million and Rs.
1,048 million respectively. The Company has determined
the allowance for credit losses based on the ageing status
and historical loss experience adjusted to reflect current
and estimated future economic conditions.
In determination of allowance for expected credit loss,
management's judgement involves consideration of terms
of contract, ageing status, historical payment records,
evaluation of litigations and credit information of its
customers.
We considered this as key audit matter due to the materiality
of the amounts and significant estimates and judgements
as stated above
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Our audit procedures included the following:
• We tested the design and operating effectiveness of
management's key internal controls over determination
of the allowance for credit losses.
• We assessed the completeness and accuracy of the
information used in the estimation of probability of default
and tested historical payment records, correspondence
with customers, credit related information and
subsequent collection of the customers balances.
• We assessed the allowance for expected credit loss
made by management and performed analysis of ageing
of receivables, tested the mathematical accuracy and
computation of the allowance for credit losses.
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Other Information
The Company’s Board of Directors is responsible for the other information. The other information comprises the information
included in the Annual report, but does not include the Standalone Financial Statements and our auditor’s report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in
doing so, consider whether such other information is materially inconsistent with the Standalone Financial Statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
Responsibilities of the Management and Those Charged with Governance for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation
of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, Management and Board of Directors are responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls with reference to financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor's report to the related disclosures in the Standalone Financial Statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures,
and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves
fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Standalone Financial Statements for the financial year ended March 31, 2026 and are therefore the
key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central Government of India in
terms of sub-section (11) of section 143 of the Act, we give in the "Annexure 1" a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the
Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2026 taken on record by the
Board of Directors, none of the directors is disqualified as on March 31, 2026 from being appointed as a director in terms
of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to these Standalone Financial Statements
and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2026 has been paid / provided by the Company
to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the
explanations given to us.
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial
Statements - Refer Note 23A to the Standalone Financial Statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 14 to the Standalone
Financial Statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company;
iv. a) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the
note 33 to the Standalone Financial Statements, no funds have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other
persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, other than as disclosed in
the note 33 to the Standalone Financial Statements, no funds have been received by the Company from any
persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representations under
sub-clause (a) and (b) contain any material misstatement.
v. a) The final dividend paid by the Company during the year in respect of the dividend declared for the previous year
is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
b) The interim dividend declared and paid by the Company during the year and until the date of this audit report is
in accordance with section 123 of the Act.
vi. Based on our examination which included test checks, the Company has used accounting softwares for maintaining
its books of account which has a feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit
we did not come across any instance of audit trail feature being tampered with. Additionally, the audit trail of prior
years has been preserved by the Company as per the statutory requirements for record retention to the extent it
was enabled and recorded in the prior years
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Mitesh K Parikh
Partner
Membership Number: 225333
UDIN: 26225333WBWYAF2209
Place of Signature: Hyderabad
Date: April 23, 2026
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