m) Provisions, Contingent Liabilities and Contingent Assets
Provisions

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

When the Company expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only
when the reimbursement is virtually certain. The expense
relating to a provision is presented in the statement of profit
and loss net of any reimbursement.

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

Decommissioning liability

The Company records a provision for decommissioning
costs associated with the premises taken on lease.
Decommissioning costs are provided at the present value of
expected costs to settle the obligation using estimated cash
flows and are recognised as part of the cost of the particular
asset. The cash flows are discounted at a current pre-tax rate
that reflects the risks specific to the decommissioning liability.
The unwinding of the discount is expensed as incurred and
recognised in the statement of profit and loss as a finance
cost. The estimated future costs of decommissioning are

reviewed annually and adjusted as appropriate. Changes in
the estimated future costs or in the discount rate applied are
added to or deducted from the cost of the asset.

Contingent liabilities

Contingent liability is:

(a) a possible obligation arising from past events and
whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the entity or

(b) a present obligation that arises from past events but is
not recognized because;

- it is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation, or

- the amount of the obligation cannot be measured
with sufficient reliability.

The Company does not recognize a contingent
liability but discloses its existence and other required
disclosures in notes to the financial statements, unless
the possibility of any outflow in settlement is remote.

Provisions, contingent liabilities and contingent assets
are reviewed at each Balance Sheet date.

) Financial instruments

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

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, and
subsequently measured at amortised cost, fair value through
other comprehensive income (OCI), and fair value through
profit or loss.

The classification of financial assets at initial recognition
depends on the financial asset’s contractual cash flow
characteristics and the Company’s business model for
managing them. With the exception of trade receivables
that do not contain a significant financing component or for
which the Company has applied the practical expedient, the
Company initially measures a financial asset at its fair value
plus, in the case of a financial asset not at fair value through
profit or loss, transaction costs. Trade receivables that do not
contain a significant financing component or for which the
Company has applied the practical expedient are measured
at the transaction price determined under Ind AS 115. Refer t<
the accounting policies in section (g) Revenue from contracts
with customers.

In order for a financial asset to be classified and measured
at amortised cost or fair value through OCI, it needs to give
rise to cash flows that are ‘solely payments of principal and
interest (SPPI)’ on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed

at an instrument level. Financial assets with cash flows that
are not SPPI are classified and measured at fair value through
profit or loss, irrespective of the business model.

The Company’s business model for managing financial
assets refers to how it manages its financial assets in order to
generate cash flows. The business model determines whether
cash flows will result from collecting contractual cash flows,
selling the financial assets, or both. Financial assets classified
and measured at amortised cost are held within a business
model with the objective to hold financial assets in order to
collect contractual cash flows while financial assets classified
and measured at fair value through OCI are held within a
business model with the objective of both holding to collect
contractual cash flows and selling.

Subsequent measurement

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

i. Financial assets at amortised cost (debt instruments)

ii. Financial assets at fair value through other
comprehensive income (FVTOCI) with recycling of
cumulative gains and losses (debt instruments)

iii. Financial assets designated at fair value through OCI
with no recycling of cumulative gains and losses upon
derecognition (equity instruments)

iv. Financial assets at fair value through profit or loss

i. Financial assets at amortised cost (debt
instruments)

A ‘financial asset’ is measured at the amortised cost if
both the following conditions are met:

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

b) 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.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using
the effective interest rate (EIR) method and are
subject to impairment as per the accounting policy
applicable to ‘Impairment of financial assets.’
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
profit or loss. The losses arising from impairment
are recognised in the profit or loss. The Company’s
financial assets at amortised cost includes trade
receivables, and loan to an associate and loan to a
director included under other non-current financial
assets. For more information on financial assets,
refer note 7 and for receivables, refer note 10.

significantly reduces, the inconsistent treatment that
would otherwise arise from measuring the assets or
liabilities or recognising gains or losses on them on
a different basis. Such designation is determined on
an instrument-by-instrument basis. For the Company,
this category includes derivative instruments and
listed equity investments which the Company had not
irrevocably elected to classify at fair value through OCI.
The Company has not designated any financial assets at
FVTPL.

Financial assets at fair value through profit or loss
are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of
profit and loss.

Interest earned on instruments designated at FVTPL
is accrued in interest income, using the EIR, taking
into account any discount/ premium and qualifying
transaction costs being an integral part of instrument.
Interest earned on assets mandatorily required to be
measured at FVTPL is recorded using the contractual
interest rate. Dividend income on listed equity
investments are recognised in the statement of profit
and loss as other income when the right of payment has
been established.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial

asset) is primarily derecognised (i.e. removed from the

Company’s balance sheet) when:

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

b. 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 (i) the Company has transferred substantially all
the risks and rewards of the asset, or (ii) 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.
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at

the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.

Financial liabilities

Initial recognition, measurement and presentation

Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.

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

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

Subsequent measurement

For purposes of subsequent measurement, financial liabilities
are classified in two categories:

• Financial liabilities at fair value through profit or loss

• Financial liabilities at amortised cost (loans and
borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through
profit or loss.

Financial liabilities are classified as held for trading if they are
incurred for the purpose of repurchasing in the near term. This
category also includes derivative financial instruments entered
into by the Company that are not designated as hedging
instruments in hedge relationships as defined by Ind AS 109.
Separated embedded derivatives are also classified as held
for trading unless they are designated as effective hedging
instruments.

Gains or losses on liabilities held for trading are recognised in
the profit or loss.

Financial liabilities are designated upon initial recognition
as at fair value through profit or loss only if the criteria in Ind
AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes in own credit
risk are recognized in OCI. These gains/ losses are not
subsequently transferred to P&L. However, the Company
may transfer the cumulative gain or loss within equity. All
other changes in fair value of such liability are recognised
in the statement of profit and loss. The Company has not
designated any financial liability as at fair value through profit
or loss.

Financial liabilities at amortised cost (Loans and
borrowings)

This is the category most relevant to the Company. After
initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the
EIR amortisation process.

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

Supplier finance arrangements

The Company has established supplier finance arrangements.
The Company evaluates whether financial liabilities covered
such arrangements continue to be classified within trade
payables, or they need to be classified as a borrowing or as
part of other financial liabilities/ as a separate line item on the
face of the balance sheet. Such evaluation requires exercise
of judgment basis specific terms of the arrangement.

The Company classifies financial liabilities covered under
supplier finance arrangement within trade payables in the
balance sheet only if (i) the obligation represents a liability
to pay for goods and services, (ii) is invoiced and formally
agreed with the supplier, (iii) is part of the working capital
used in its normal operating cycle, (iv) the company is not
legally released from its original obligation to the supplier,
and has not assumed a new obligation toward the bank, and
another party (iv) there is no substantial modification to the
terms of the liability.

If one or more of the above criteria are not met, the Company
derecognises its original liability toward the supplier and
recognise a new liability toward the bank which is classified
as bank borrowing or other financial liability, depending on
factors such as whether the Company (i) has obligation
toward bank, (ii) is getting extended credit period such that
obligation is no longer part of its working capital cycle, (iii)
is paying interest directly or indirectly, (iv) has provided
guarantee or security, and/ or (v) is recognized as borrower in
the bank books.

Cash flows related to liabilities arising from supplier finance
arrangements that continue to be classified in trade payables
in the standalone balance sheet are included in operating
activities in the standalone statement of cash flows, when the
Company finally settles the liability.

In cases, where the Company has derecognised its original
liability toward the supplier and recognise a new liability
toward the bank, the Company has assessed that the bank
is acting as its agent in making payment to the supplier.
Accordingly, the Company presents operating cash outflow
and financing cash inflow, when bank made payment to the
supplier. The payment made by the Company to the bank
toward interest, if any, as well as on settlement is presented
as financing cash outflow.

Derecognition of financial liabilities

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.

Offsetting of financial instruments

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

Derivative financial instruments and Hedge accounting
Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such
as forward currency contracts to hedge its foreign currency
risks arising from highly probable future forecasted sales.

This derivative financial instrument are designated in a cash
flow hedge relationship. Such derivative financial instruments
are initially recognised at fair value on the date on which
a derivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial liabilities
when the fair value is negative.

At the inception of a hedge relationship, the Company
formally designates and documents the hedge relationship to
which the Company wishes to apply hedge accounting and
the risk management objective and strategy for undertaking
the hedge. The documentation includes the Company’s risk
management objective and strategy for undertaking hedge,
the hedging/ economic relationship, the hedged item or
transaction, the nature of the risk being hedged, hedge ratio
and how the entity will assess the effectiveness of changes in
the hedging instrument’s fair value in offsetting the exposure
to changes in the hedged item’s fair value or cash flows
attributable to the hedged risk. Such hedges are expected
to be highly effective in achieving offsetting changes in cash
flows and are assessed on an ongoing basis to determine
that they actually have been highly effective throughout the
financial reporting periods for which they were designated.

The effective portion of the gain or loss on the hedging
instrument is recognised in OCI in the cash flow hedge
reserve, while any ineffective portion is recognised
immediately in the Statement of Profit and Loss.

Any gains or losses arising from changes in the fair value of
derivatives are taken directly to profit or loss, except for the
effective portion of cash flow hedges, which is recognised
in OCI and later reclassified to profit or loss when the hedge
item affects profit or loss and is reclassified to underlying
hedged item.

o) Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments, the
Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss for financial
assets.

The Company tracks credit risk and changes thereon for
each customer. For recognition of impairment loss on other
financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit
risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment
loss. However, if credit risk has increased significantly, life
time ECL is used. If in a subsequent period, credit quality
of the instrument improves such that there is no longer a
significant increase in risk since initial recognition, then the
entity reverts to recognising impairment loss allowance based
on 12-month ECL.

ECL is the difference between all contractual cash flows that
are due to the Company in accordance with the contract
and all the cash flows that the entity expects to receive (i.e.,
all cash shortfalls), discounted at the original EIR. When
estimating the cash flows, an entity is required to consider:

- All contractual terms of the financial instrument over the
expected life of the financial instrument. However, in rare
cases when the expected life of the financial instrument
cannot be estimated reliably, then the entity is required
to use the remaining contractual term of the financial
instrument.

- Cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

The Company uses default rate for credit risk to determine
impairment loss allowance on portfolio of its trade
receivables.

ECL impairment loss allowance (or reversal) recognized
during the period is recognized as income/ expense in the
Statement of Profit and Loss. This amount is reflected under
the head ‘other expenses’ in the Statement of Profit and
Loss. The balance sheet presentation for various financial
instruments is described below:

a. Financial assets measured as at amortised cost,
contractual revenue receivables and lease receivables:
ECL is presented as an allowance, i.e., as an integral
part of the measurement of those assets in the balance
sheet. The allowance reduces the net carrying amount.
Until the asset meets write-off criteria, the Company
does not reduce impairment allowance from the gross
carrying amount.

b. Loan commitments and financial guarantee contracts:
ECL is presented as a provision in the balance sheet,
i.e. as a liability.

c. Debt instruments measured at FVTOCI: Since financial
assets are already reflected at fair value, impairment
allowance is not further reduced from its value. Rather,
ECL amount is presented as ‘accumulated impairment
amount’ in the OCI.

Trade receivables

The Company applies approach permitted by Ind AS 109
Financial Instruments, which requires expected lifetime losses
to be recognised from initial recognition of receivables.

Other financial assets

For recognition of impairment loss on other financial assets
and risk exposure, the Company determines whether there
has been a significant increase in the credit risk since initial
recognition and if credit risk has increased significantly,
impairment loss is provided.

) Fair value measurement

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

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The
fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place
either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in
their economic best interest.

A fair value measurement of a non-financial asset takes into
account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.

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;

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 categorization (based on the lowest
level input that is significant to the fair value measurements as
a whole) at the end of each reporting period.

External valuers are involved for valuation of significant
assets, such as properties and unquoted financial assets,
and significant liabilities, such as contingent consideration.
Involvement of external valuers is decided upon annually
by the management. Selection criteria include market
knowledge, reputation, independence and whether
professional standards are maintained. The management
decides, after discussions with the Company’s external
valuers, which valuation techniques and inputs to use for
each case.

At each reporting date, the management analyses the
movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per the
Company’s accounting policies. For this analysis, the
Management verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.

The Management also compares the change in the fair value
of each asset and liability with relevant external sources to
determine whether the change is reasonable.

On an interim basis, the Management present the valuation
results to the Audit Committee and the Company’s
independent auditors. This includes a discussion of the major
assumptions used in the valuations.

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.

Cash and cash equivalent

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to
an insignificant risk of changes in value.

For the purpose of the statement of cash flows, Cash and
cash equivalent consist of cash at banks and on hand and
short-term deposits, as defined above, net of outstanding

bank overdrafts as they are considered an integral part of the
Company’s cash management.

r) Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Company is engaged in the Technology
Services and Solutions, which constitutes its single reportable
segment.

s) Earnings per Share (EPS)

Basic EPS are calculated by dividing the net profit or loss
for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding
during the period. Partly paid equity shares are treated as a
fraction of an equity share to the extent that they are entitled
to participate in dividends relative to a fully paid equity share
during the reporting period. The weighted average number
of equity shares outstanding during the period is adjusted for
events such as bonus issue that have changed the number of
equity shares outstanding, without a corresponding change in
resources.

Diluted EPS amounts are calculated by dividing the profit
attributable to equity shareholders of the Company (after
adjusting for interest on the convertible preference shares,
if any) by the weighted average number of equity shares
outstanding during the year plus the weighted average
number of equity shares that would be issued on conversion
of all the dilutive potential equity shares into equity shares.
Dilutive potential equity shares are deemed converted as of
the beginning of the period, unless issued at a later date.
Dilutive potential equity shares are determined independently
for each period presented.

t) Business combinations

Business combinations between entities under common
control is accounted for at carrying value under the provisions
of Ind AS 103, Business Combinations.

Transaction costs that the Company incurs in connection with
a business combination such as finders’ fees, legal fees, due
diligence fees, and other professional and consulting fees are
expensed as incurred.

u) Share-based payments

Employees (including senior executives) of the Company
receive remuneration in the form of share-based payments,
whereby employees render services as consideration for
equity instruments (equity-settled transactions).

Equity-settled transactions

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an
appropriate valuation model. Further details are given in note
40.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in equity,

over the period in which the performance and/or service
conditions are fulfilled in employee benefits expense. The
cumulative expense recognised for equity-settled transactions
at each reporting date until the vesting date reflects the extent
to which the vesting period has expired and the Company’s
best estimate of the number of equity instruments that will
ultimately vest. The expense or credit in the statement of profit
and loss for a period represents the movement in cumulative
expense recognised as at the beginning and end of that
period and is recognised in employee benefits expense.

Service and non-market performance conditions are not
taken into account when determining the grant date fair value
of awards, but the likelihood of the conditions being met
is assessed as part of the Company’s best estimate of the
number of equity instruments that will ultimately vest. Market
performance conditions are reflected within the grant date fair
value. Any other conditions attached to an award, but without
an associated service requirement, are considered to be non¬
vesting conditions. Non-vesting conditions are reflected in the
fair value of an award and lead to an immediate expensing of
an award unless there are also service and/or performance
conditions.

No expense is recognised for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met. Where awards include a
market or non-vesting condition, the transactions are treated
as vested irrespective of whether the market or non-vesting
condition is satisfied, provided that all other performance and/
or service conditions are satisfied.

When the terms of an equity-settled award are modified, the
minimum expense recognised is the grant date fair value of
the unmodified award, provided the original vesting terms of
the award are met. An additional expense, measured as at
the date of modification, is recognised for any modification
that increases the total fair value of the share-based payment
transaction, or is otherwise beneficial to the employee. Where
an award is cancelled by the entity or by the counterparty, any
remaining element of the fair value of the award is expensed
immediately through profit or loss.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.

v) Assets held for sale

The Company classifies non-current assets as held for sale if
their carrying amounts will be recovered principally through a
sale rather than through continuing use.

Non-current assets classified as held for sale are measured
at the lower of their carrying amount and fair value less
costs to sell. Costs to sell are the incremental costs directly
attributable to the disposal of an asset, excluding finance
costs and income tax expense.

The criteria for held for sale classification is regarded as
met only when the sale is highly probable, and the asset is

available for immediate sale in its present condition. Actions
required to complete the sale should indicate that it is unlikely
that significant changes to the sale will be made or that the
decision to sell will be withdrawn. Management must be
committed to the sale and the sale expected within one year
from the date of classification.

For these purposes, sale transactions include exchanges
of non-current assets for other non-current assets when the
exchange has commercial substance. The criteria for held
for sale classification is regarded met only when the assets is
available for immediate sale in its present condition, subject
only to terms that are usual and customary for sales of such
assets, its sale is highly probable; and it will genuinely be
sold, not abandoned. The Company treats sale of the asset to
be highly probable when:

The appropriate level of management is committed to a plan
to sell the asset

An active programme to locate a buyer and complete the plan
has been initiated (if applicable)

The asset is being actively marketed for sale at a price that is
reasonable in relation to its current fair value,

The sale is expected to qualify for recognition as a completed
sale within one year from the date of classification, and
Actions required to complete the plan indicate that it is
unlikely that significant changes to the plan will be made or
that the plan will be withdrawn.

Property, plant and equipment and intangible are not
depreciated, or amortised assets once classified as held for
sale.

Assets and liabilities classified as held for sale are presented
separately from other items in the balance sheet.

w) Events after the reporting period

If the Company receives information after the reporting period,
but prior to the date of approved for issue, about conditions
that existed at the end of the reporting period, it will assess
whether the information affects the amounts that it recognises
in its separate financial statements. The Company will adjust
the amounts recognised in its financial statements to reflect
any adjusting events after the reporting period and update
the disclosures that relate to those conditions in light of the
new information. For non-adjusting events after the reporting
period, the Company will not change the amounts recognised
in its separate financial statements but will disclose the nature
of the non-adjusting event and an estimate of its financial
effect, or a statement that such an estimate cannot be made,
if applicable.

2.3 Changes in accounting policies and disclosures

There are no new accounting policies applied during the
current year and accounting policies are consistent from
previous year.

2.4 New and amended standards

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after April 1,2025. The Company has not
early adopted any standard, interpretation or amendment that
has been issued but is not yet effective.

(i) Amendments to Ind AS 21 - Lack of exchangeability
The Ministry of Corporate Affairs (MCA) notified the
Companies (Indian Accounting Standards) Amendment
Rules, 2025, which amend Ind AS 21, The Effects

of Changes in Foreign Exchange Rates to specify
how an entity should assess whether a currency is
exchangeable and how it should determine a spot
exchange rate when exchangeability is lacking. The
amendments also require disclosure of information that
enables users of its financial statements to understand
how the currency not being exchangeable into the other
currency affects, or is expected to affect, the entity’s
financial performance, financial position and cash flows.
The amendments are effective for annual reporting
periods beginning on or after April 1,2025. When
applying the amendments, an entity cannot restate
comparative information.

The amendments do not have a material impact on the
Company’s financial statements.

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

In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current or non¬
current. The amendments clarify:

- What is meant by a right to defer settlement

- That a right to defer must exist at the end of the
reporting period.

- That classification is unaffected by the likelihood
that an entity will exercise its deferral right

- That only if an embedded derivative in a convertible
liability is itself an equity instrument would the
terms of a liability not impact its classification

In addition, a requirement has been introduced to
require disclosure when a liability arising from a loan
agreement is classified as non-current and the entity’s
right to defer settlement is contingent on compliance
with future covenants within twelve months.

If there is a breach of a material covenant of a long
term loan arrangement on or before the end of the
reporting period, resulting in the liability becoming
payable on demand as at the reporting date, and the
lender agrees—after the reporting period but before
the financial statements are approved for issue—not
to demand repayment for at least 12 months as a

consequence of the breach, this shall be treated as an
adjusting event. Accordingly, the entity is not required to
classify the liability as current.

The amendments have resulted in additional disclosures
in note 15 but have not had an impact on the
classification of Company’s liabilities.

(iii) 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.

As a result of implementing the amendments, the
Company has provided additional disclosures about its
supplier finance arrangement.

(iv) 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 amendments had no impact on the Company’s
standalone financial statements as the Company is not
in scope of the Pillar Two model rules.

.5 Standards notified but not yet effective

The new and amended standards that are notified by the
Ministry of Corporate Affairs (MCA), but not yet effective, up
to the date of issuance of the Company’s financial statements

- A breach of either material or immaterial covenant
will trigger current classification of liability.

- To continue classifying loan as non-current liability,
entities will need to obtain waiver from the breach
on or before the reporting date.

The Company is currently assessing the impact the
amendments will have on its financial statements.

2.6 Climate - related matters

The Company considers climate-related matters in estimates
and assumptions, where appropriate. This assessment
includes a wide range of possible impacts on the Company
due to both physical and transition risks. Even though
climate-related risks might not currently have a significant
impact on measurement, the Company is closely monitoring
relevant changes and developments, such as new climate-
related legislation.

a) Details of security for borrowings

(i) The 12.75% Unrated Unlisted Redeemable Non-Convertible Debentures is secured by first pari-passu charge over all assets
(including PPE, intangible assets and intellectual rights, current assets and non-current assets) of the Company and subsidiary
companies, AXISCADES Aerospace & Technologies Private Limited and Mistral Solutions Private Limited, property owned by
step down subsidiary, Enertec Controls Limited, at Electronic City, Bangalore, pledge of 100% shares of Mistral Solutions Private
Limited and first pari-passu charge over fixed deposit of '1,200 lakhs and Corporate guarantee from subsidiary companies,
Mistral Solutions Private Limited, AXISCADES Aerospace & Technologies Private Limited and Enertec Controls Limited.
Additionally, cash margin equivalent to interest payable on the immediately succeeding coupon payment date in the form of
fixed deposits lien to be maintained. The Company has made prepayment of ' 5,250 lakhs during the year ended March 31,
2025 and the balance is repayable in 5 quarterly installments starting from June 2026.

(ii) The 12.00% Unrated Unlisted Redeemable Non-Convertible Debentures of ' 5,000 lakhs is secured by first pari-passu charge
over all assets (including movable PPE, intangible assets and intellectual rights, current assets and non-current assets) of the
Company and subsidiary companies, AXISCADES Aerospace & Technologies Private Limited and Mistral Solutions Private
Limited, property owned by step down subsidiary, Enertec Controls Limited, at Electronic City, Bangalore, pledge of 51% shares
of Mistral Solutions Private Limited and first pari-passu charge over fixed deposit of '1,200 lakhs and Corporate guarantee from
subsidiary companies, Mistral Solutions Private Limited, AXISCADES Aerospace & Technologies Private Limited and Enertec
Controls Limited. Additionally, cash margin equivalent to interest payable on the immediately succeeding coupon payment date
in the form of fixed deposits lien to be maintained. Repayable in 11 quarterly installments starting from June 2025. During the
year ended March 31,2026, the Company has repaid an amount of ' 700 lakhs (March 31,2025: Nil).

(iii) Loan from related parties includes unsecured intercorporate loans of

a) An inter-corporate deposit (‘ICD’) of ' 500.00 lakhs (March 31,2025: ' 500 lakhs) from subsidiary company, Cades Studec
Technologies (India) Private Limited (‘CSTI’) is unsecured and repayable in November 2026, carries an interest rate of
11.00% per annum.

b) ICDs of ' 450.00 lakhs (March 31,2025: ' 300 lakhs) from step down subsidiary company, Mistral Technologies Private
Limited are unsecured and repayable in December 2026, carries an interest rate of 11.50% per annum.

c) ICDs of ' 2,000 lakhs (March 31,2025: ' 2,000 lakhs), ' 1,425.00 lakhs (March 31,2025: ' 1,200 lakhs) and ' 1,000 lakhs
(March 31,2025: Nil) from subsidiary company, Mistral Solutions Private Limited are unsecured and repayable in May
2026, December 2026 and February 2029 respectively, carries an interest rate of 11.50% per annum.

(iv) During the year ended March 31,2025, the Company had taken a term loan of ' 1,409.00 lakhs from bank and repayable in
36 equal monthly installments of ' 39.14 lakhs starting from December 2025, carries an interest rate of repo rate 3.6% per
annum. The loan was secured by exclusive charge on capital assets purchased through this loan.

(v) Working capital loans are secured by exclusive charge on current assets, movable fixed assets, property owned by step down
subsidiary, Enertec Controls Limited at Electronic City, Bangalore, fixed deposits of ' 700 lakhs and corporate guarantee from
step down subsidiary company, Enertec Controls Limited. Additionally, 10% cash margin in the form of fixed deposits lien to be
maintained and First Pari Passu charge on fixed deposit of '1,200 lakhs. Further, shortfall undertaking and letter of responsibility
is backed by board resolution.

(vi) During the year ended March 31,2024, the Company had issued 3,323,262 equity shares of ' 5 each in Qualified Institutional
Placement at an issue price of ' 662 per share (including securities premium of ' 657 per share) aggregating ' 21,999.99 lakhs
to be utilised towards repayment or prepayment of certain outstanding borrowings availed by the Company and for general
corporate purpose. The Company had utilised the proceeds from QIP for prepayment of 12.75% Unrated Unlisted Redeemable
Non-Convertible Debentures of ' 5,250 lakhs during the year ended March 31,2025.

(vii) During the year ended March 31,2024, the Company had availed a term loan from bank amounting to '500 lakhs repayable
in 60 equal monthly installments of ' 8.90 lakhs starting from December 2025, carries an interest rate of repo rate 3.6% per
annum. It is secured by exclusive charge on current assets, movable fixed assets, property owned by step down subsidiary,
Enertec Controls Limited at Electronic City, Bangalore and corporate guarantee from step down subsidiary company, Enertec
Controls Limited. Additionally, 10% cash margin in the form of fixed deposits lien to be maintained. Further, shortfall undertaking
and letter of responsibility is backed by board resolution from Jupiter Capital Private Limited, the Parent Company.

(viii) The Company has established a supplier finance arrangement that is offered to some of the Company’s suppliers / vendors.
Suppliers / vendors that participate in the supplier finance arrangement will receive payment on due date for invoices sent to the
Company from the Company’s external finance provider.

(ix) Quarterly returns/statements filed by the Company with banks are in agreement with the books of accounts of the Company.

Trade receivables are non-interest bearing and are generally on terms of 30 to 120 days. In March 31,2026, ' 56.84 lakhs
(March 31,2025: ' 100.33 lakhs) was recognised as provision for expected credit loss on trade receivables.

The Company classifies the right to consideration in exchange for deliverables as either a receivable or as unbilled revenue. A
receivable is a right to consideration that is unconditional upon passage of time. Revenue in excess of invoicing are classified as
contract assets (unbilled revenue) while invoicing in excess of revenue are classified as contract liabilities (unearned revenue).

Contract assets relates to revenue earned from engineering design services rendered within the financial year and for which invoicing
happens subsequent to the year end. As such, the balances of this account vary and depend on the quantum of technology services
and solutions at the end of the year, In March 31,2026, ' 30.39 lakhs (March 31,2025: ' 6.53 lakhs) was recognised as provision for
expected credit loss on contract assets - unbilled revenue.

Contract liabilities include short-term advances received from customers for engineering design services as well as transaction price
allocated to performance obligations not yet completed.

During the year, contract liabilities increased primarily on account of higher invoicing in excess of revenue recognised, amounting to
' 1,434.06 lakhs. Further, advances of ' 336.71 lakhs, determined to be no longer payable, were written back during the year and
recognised under other income in the Statement of Profit and Loss.

1.3 Performance Obligation

The performance obligation is satisfied upon the providing of services as and when rendered. The Company has applied practical
expedient and has not disclosed information about remaining performance obligations in contracts, where the original contract
duration is one year or less or where the entity has the right to consideration that corresponds directly with the value of entity’s
performance completed to date. Remaining performance obligation estimates are subject to change and are affected by several
factors, including terminations, changes in the scope of contracts, and adjustments for currency fluctuations etc., Revenue to be
recognised for performance obligations not satisfied or partially satisfied at the end of the current year, other than those meeting the
exclusion criteria mentioned above, in respect of contracts with customer that are in place (i.e. signed agreements/POs/WOs,etc) at
the year end:

Valuation technique used to determine fair value of derivative contracts

The Company enters into derivative financial instruments with various counterparties, principally financial institutions with investment
grade credit ratings. Foreign exchange forward contracts and Currency options are valued using valuation techniques, which
employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing using present
value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and
forward rates and yield curves of the respective currencies. The changes in counterparty credit risk had no material effect on the
hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognised at fair
value.

Valuation processes

The Corporate finance team has requisite knowledge and skills. The team headed by the Company CFO directly reports to the audit
committee to arrive at the fair value of financial instruments.

Financial risk management

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is
to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on it’s financial performance. The
primary market risk to the Company is foreign exchange exposure risk. The Company uses derivative financial instruments to mitigate
foreign exchange related risk exposures. The Company’s exposure to credit risk is influenced mainly by the individual characteristic
of each customer.

The Company’s risk management activity focuses on actively securing the Company’s short to medium-term cash flows by
minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.

The Company does not engage in the trading of financial assets for speculative purposes. The most significant financial risks to
which the Company is exposed are described below.

(A) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial
instruments. The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties
that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and
does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Financial assets that are not credit impaired

The Company has financial assets which are in the nature of cash and cash equivalent, other bank balances, loans, security
deposits, interest accrued on fixed deposits and other receivables which are not credit impaired. These are contractually agreed
where the probability of default is negligible.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating
to customer credit risk management. Credit quality of a customer is assessed based on an internal assessment. Outstanding
customer receivables are regularly monitored including the creditworthiness of customers to which the Company grants credit terms
in the normal course of business.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision
rates are based on days past due for groupings of various customer segments with similar loss patterns (i.e., by geographical
region and customer type). The calculation reflects the probability-weighted outcome, the time value of money and reasonable and
supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic
conditions. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed
in note 34. The Company does not hold collateral as security. The Company is considerate of the fact the majority of the collection
is receivable from export customers with high credit worthiness where there is no significant risk of bad debts. The customers of the
Company have a defined period for payment of receivables, hence the Company evaluates the concentration of risk with respect to
trade receivables as low. The Company considers receivables from group company separately and creates provision for doubtful
debts on case to case basis.

36 Defined benefit obligations

A Defined benefit contributions
India

The Company makes contribution to statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act,
1952 for its employees. This is a defined contribution plan as per Ind AS 19, Employee benefits. Contribution made during the year
ended March 31,2026 : ' 974.63 lakhs (March 31,2025 : ' 992.79 lakhs)

Overseas social security

The Company makes a contribution towards social security charges for its employees located at the respective branch offices in
respective foreign geographies, that are defined contribution plans. The contributions paid or payable is recognised as an expense
in the period in which the employee renders services in respective geographies. Contribution made during the year ended March 31,
2026 : ' 1,612.00 lakhs (March 31,2025 : ' 1,198.94 lakhs)

B Defined benefit plans

The Company has a defined benefit gratuity plan (unfunded). The Company has provided for gratuity, for its employees as per
actuarial valuation carried out by an independent actuary on the Balance Sheet date. The valuation has been carried out using the
Project Unit Credit Method as per Ind AS 19 to determine the present value of Defined Benefit Obligations and the related current
service cost. This is a defined benefit plan as per Ind AS 19.

The gratuity plan is governed by the provisions of the Code on Social Security, 2020 and Payment of Gratuity Act, 1972 (as amended
from time to time). Employees are entitled to all the benefits enlisted under this Act.

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary
overtime. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

a Interest rate risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate
cost of providing the above benefit and will thus result in an increase in the value of the liability as shown in financial statements.

b Liquidity risk

This is the risk that the Company is not able to meet the short-term gratuity pay-outs. This may arise due to non availability of
enough cash/cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

c Salary escalation risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of employees in future.
Deviation in the rate of interest in future for employees from the rate of increase in salary used to determine the present value of
obligation will have a bearing on the plan’s liability.

d Demographic risk

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the
risk of actual experience turning out to be worse compared to the assumption.

e Regulatory risk

Gratuity benefits are paid in accordance with the requirements of the Code on Social Security, 2020 and Payment of Gratuity
Act,1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity pay-outs

38 Significant accounting judgements, estimates and assumptions

The preparation of the Company’s Standalone financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and
the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected in future periods

Other disclosures relating to the Company’s exposure to risks and uncertainties includes:

• Capital management Note 32

• Financial risk management objectives and policies Note 35

• Sensitivity analyses disclosures Notes 35 and 36

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the
most significant effect on the amounts recognised in the Standalone financial statements:

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income
will be available against which the deductible temporary differences and carried forward tax loss can be utilised. In addition,
significant judgment is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are
described below. The Company based its assumptions and estimates on parameters available when the Standalone financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change due
to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.

Evaluation of indicators for impairment of non-financial assets (including investments in subsidiaries)

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher
of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data
from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs
for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for
the next four to five years and do not include restructuring activities that the Company is not yet committed to or significant future

investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount
rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These
estimates are most relevant to assessing the carrying value of investment and other intangibles with indefinite useful lives recognised
by the Company.

Recoverability of trade receivables and other financial assets

At each balance sheet date, based on historical default rates observed over expected life, the Management assesses the expected
credit loss on outstanding receivables and other financial assets.

Provision for expected credit losses of trade receivables and financial assets

The Company uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are based on
days past due for groupings of various customer segments that have similar loss patterns.

The provision matrix is initially based on the Company’s historical observed default rates. The Company will calibrate the matrix to
adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical observed default
rates are updated and changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant
estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Company’s
historical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual default in
the future. The information about the ECLs on the Company’s trade receivables and contract assets is disclosed in Note 35.

Estimating the fair value of share-based payments

For the measurement of the fair value of equity-settled transactions with employees at the grant date, the Company uses Black
Sholes model valuation for executives and senior management employees. The assumptions and models used for estimating fair
value for share-based payment transactions are disclosed in note 40.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each reporting date.

"The calculation is most sensitive to changes in the discount rate. In determining the appropriate discount rate for plans operated
in India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to
expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to
demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates."

Further details about gratuity obligations are given in Note 36.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted
prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models
are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about
these factors could affect the reported fair value of financial instruments. See Note 34 for further disclosures.

Contingent consideration, resulting from business combinations, is valued at fair value at the acquisition date as part of the business
combination. When the contingent consideration meets the definition of a financial liability, it is subsequently remeasured to fair
value at each reporting date. The determination of the fair value is based on discounted cash flows. The key assumptions take into
consideration the probability of meeting each performance target and the discount factor.

As part of the accounting for the acquisition of engineering design and solution for energy sector business of Epcogen Private
Limited, contingent consideration with an estimated fair value of ' 589.00 lakhs was recognised at the acquisition date and
remeasured to ' 233.34 lakhs as at March 31,2026 (March 31,2025: ' 652.40 lakhs). The maximum consideration to be paid is '

700 lakhs. The contingent consideration is classified as other financial liability. Refer note 16(b).

Intangible asset under development

The Company capitalises intangible asset under development for a project in accordance with the accounting policy. Initial
capitalisation of costs is based on management’s judgement that technological and economic feasibility is confirmed, usually
when a product development project has reached a defined milestone according to an established project management model.

In determining the amounts to be capitalised, management makes assumptions regarding the expected future cash generation of
the project, discount rates to be applied and the expected period of benefits. At March 31,2026, the carrying amount of capitalised
intangible asset under development was Nil (March 31,2025: ' 84.27 lakhs).

Useful lives and residual values of property, plant and equipment and intangible assets

The Company reviews the estimated residual values and expected useful lives of assets at least annually. In particular, the Company
considers the impact of health, safety and environmental legislation in its assessment of expected useful lives and estimated
residual values. Furthermore, the Company considers climate-related matters, including physical and transition risks. Specifically, the
Company determines whether climate-related legislation and regulations might impact either the useful life or residual values.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to
measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a
similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available.
The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make
certain entity-specific estimates.

Decommissioning liability

The estimated valuation of decommissioning liability are based on management’s historical experience and best estimate of
restoring the premises on lease in its original condition. Assumptions and judgments made by management when assessing an
decommissioning liability include i) the existence of a legal obligation; ii) estimated probabilities, amounts, and timing of settlements;
iii) the credit-adjusted risk-free rate to be used.

(i) The Company had received demand notices from the authorities under the Finance Act,1994 for non-payment of Service
tax on reverse charge mechanism for the period April 2006 to September 2010 and also received demand notices from GST
authorities under Goods and Service Tax Act, 2017 for non-payment of GST on reverse charge mechanism, excess ITC availed
and ITC of input service distributor not appearing in GSTR 2A, etc for the period FY 2018-2019 to FY 2020-2021.

(ii) The Company had received assessment orders in respect of certain financial years giving raise to additional income tax
demand (including interest) on account of certain adjustments in relation to disallowances of expenses and certain tax benefits.

The Management, including its tax advisors, belives that it’s position will likely to be upheld at various forums where the matters
are pending. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed as contingent liabilities where applicable, in its standalone financial statements. The
Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position.

7 Issue of equity shares through QIP

During the year ended March 31,2024, the Company allotted 3,323,262 Equity shares of ' 5 each at an issue price of ' 662 per
equity share aggregating ' 21,999.99 lakhs through Qualified Institutional Placement (QIP) process to the Qualified Institutional
Buyers. These equity shares were allotted on January 15, 2024 and rank pari-passu with existing equity shares.

48 Segment Information

The Board of Directors of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS
108, Operating Segments. The CODM evaluates the Company’s performance and allocates resources based on an analysis of
engineering services.

The Company is predominantly engaged in the business of Technology Services and Solutions, which constitutes a single business
segment and is governed by similar set of risks and returns. The operations of the Company primarily cater to the market outside
India, which the Management views as a single segment. The Management monitors the operating results of its single segment for
the purpose of making decisions about resource allocation and performance assessment.

Three customers individually accounted for ' 10,015.41 lakhs, ' 7,805.39 lakhs and ' 5,235 lakhs respectively, which is more than
10% of the total revenue of the Company for the year ended March 31,2026 and three customers individually accounted for
' 7,160.19 lakhs, ' 5,816.69 lakhs and ' 5,361.90 lakhs respectively, which is more than 10% of the total revenue of the Company for
the year ended March 31,2025.

The Company is domiciled in India. The Company’s revenue from operations from external customers primarily relate to operations
outside India. Revenue from customers located in India for the year ended March 31,2026 amounts to ' 8,206.43 lakhs (March 31,
2025: ' 9,948.12 lakhs) and from outside India for the year ended March 31,2026 amounts to ' 37,310.51 lakhs (March 31,2025:

' 29,849.93 lakhs). Majority of the non-current assets of the Company are located in India.

49 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, except that audit
trail feature is not enabled at the database level for an accounting software. Further no instance of audit trail feature being tampered
with was noted in respect of accounting software(s) where the audit trail has been enabled. Additionally, the audit trail of prior year(s)
has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded
in the respective years.

50 Other Statutory Information

(i) No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company do not have any transactions with companies struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956.

(iii) There are no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction in number of Layers) Rules, 2017.

(v) The Company have not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,2026 and
March 31,2025.

(vi) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(ix) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961.

As per our report of even date attached

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants AXISCADES Technologies Limited

ICAI Firm Registration number : 101049W/E300004 CIN : L72200KA1990PLC084435

per Pradip Agarwal Dr. Sampath Ravinarayanan Venkatraman Venkitachalam

Partner Founder Chairman and Managing Director Non - Executive Director

Membership Number : 065537 DIN : 00208793 DIN : 05008694

Place : Bengaluru Place : Bengaluru Place : Bengaluru

Date : May 27, 2026 Date : May 27, 2026 Date : May 27, 2026

Shashidhar SK Sonal Dudani

Group Chief Financial Officer Company Secretary

Membership No.: 40415

Place : Bengaluru Place : Bengaluru

Date : May 27, 2026 Date : May 27, 2026