j. Provisions and contingent liabilities

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 Standalone 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.

If the Company has a contract that is onerous,
the present obligation under the contract
is recognised and measured as a provision.
However, before a separate provision for an
onerous contract is established, the Company
recognises any impairment loss that has
occurred on assets dedicated to that contract.

An onerous contract is a contract under
which the unavoidable costs (i.e., the costs
that the Company cannot avoid because it
has the contract) of meeting the obligations
under the contract exceed the economic
benefits expected to be received under it. The
unavoidable costs under a contract reflect
the least net cost of exiting from the contract,
which is the lower of the cost of fulfilling it
and any compensation or penalties arising
from failure to fulfil it. The cost of fulfilling
a contract comprises the costs that relate
directly to the contract (i.e., both incremental
costs and an allocation of costs directly related
to contract activities).

A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future
events beyond the control of the Company
or a present obligation that is not recognized
because it is not probable that an outflow
of resources will be required to settle the
obligation. A contingent liability also arises
in extremely rare cases where there is a
liability that cannot be recognized because it

cannot be measured reliably. The Company
does not recognize a contingent liability
but discloses its existence in the Standalone
Financial Statements.

Provisions and contingent liability are reviewed
at each Balance Sheet.

In respect of financial guarantees provided by
the Company to third parties, the Company
considers that it is more likely than not that
such an amount will not be payable under the
guarantees provided.

k. Retirement and other employee benefits
Short-term employee benefits

All employee benefits expected to be settled
wholly within twelve months of rendering the
service are classified as short-term employee

benefits. When an employee has rendered
service to the Company during an accounting
period, the Company recognises the
undiscounted amount of short-term employee
benefits expected to be paid in exchange for
that service as an expense unless another
Ind AS requires or permits the inclusion of
the benefits in the cost of an asset. Benefits
such as salaries, wages and short-term
compensated absences, bonus and ex-gratia
etc. are recognised in Standalone Statement
of Profit and Loss in the period in which the
employee renders the related service.

Defined contribution plans

Eligible employees of the Company in India
participate in a defined contribution plan
(Provident Fund) in accordance with the
regulatory requirements in India. Both the
employee and the Company contribute to
the fund at a specified percentage of the
employee’s salary

The Company has no further obligation
under defined contribution plans beyond the
contributions made under these plans.

Defined benefit plans

A defined benefit plan is a post-employment
benefit plan other than a defined contribution
plan. The Company has an obligation towards
gratuity, a defined benefit retirement plan
covering eligible employees. The plan provides
for a lump sum payment to vested employees
at retirement, death while in employment or

on termination of employment of an amount
based on the respective employee’s salary
and the tenure of employment. The Company
accounts for the liability for gratuity benefits
payable in future based on an independent
actuarial valuation report using the projected
unit credit method as at the year end.

Re-measurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return
on plan assets (excluding amounts included in
net interest on the net defined benefit liability),
are recognised immediately in the Standalone
Balance Sheet with a corresponding debit or
credit to retained earnings through OCI in the
period in which they occur. Re-measurements
are not reclassified to Standalone Statement of
Profit and Loss in subsequent periods.

Past service costs are recognised in Standalone
Statement of Profit and Loss on the earlier of:

a) The date of the plan amendment or
curtailment, and

b) The date that the Company recognises
related restructuring costs

Net interest is calculated by applying the
discount rate to the net defined benefit
liability or asset. The Company recognises the
following changes in the net defined benefit
obligation as an expense in the Standalone
Statement of Profit and loss

a) Service costs comprising current service
costs, past-service costs, gains and
losses on curtailments and non-routine
settlements; and

b) Net interest expense or income.

l. Financial instruments

Financial assets and financial liabilities are
recognised when the Company becomes a
party to the contract embodying the related
financial instruments. All financial assets,
financial liabilities and financial guarantee
contracts are initially measured at transaction
cost and where such values are different from
the fair value, at fair value. Transaction costs
that are directly attributable to the acquisition
or issue of financial assets and financial

liabilities (other than financial assets and
financial liabilities at fair value through profit
and loss) are added to or deducted from the
fair value measured on initial recognition of
financial asset or financial liability. Transaction
costs directly attributable to the acquisition of
financial assets and financial liabilities at fair
value through profit and loss are immediately
recognised in the Standalone Statement of
Profit and Loss.

Financial assets are classified, at initial
recognition, as subsequently measured
at amortised cost and fair value through
Standalone Statement of Profit and 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 as disclosed under revenue
recognition policy.

In order for a financial asset to be classified and
measured at amortised cost, 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.

Effective interest method

The effective interest method is a method of
calculating the amortised cost of a financial
instrument and of allocating interest income or
expense over the relevant period. The effective
interest rate is the rate that exactly discounts
future cash receipts or payments through the
expected life of the financial instrument, or
where appropriate, a shorter period.

(i) Financial assets

Financial assets at amortised cost

Financial assets are subsequently
measured at amortised cost if these
financial assets are held within a business
model whose objective is to hold these
assets in order to collect contractual cash
flows and the contractual terms of the
financial asset give rise on specified dates
to cash flows that are solely payments
of principal and interest on the principal
amount outstanding.

Financial assets measured at fair value

Financial assets are measured at fair value
through other comprehensive income if
these financial assets are held within a
business model whose objective is to hold
these assets in order to collect contractual
cash flows and to sell these financial
assets and the contractual terms of the
financial asset give rise on specified dates
to cash flows that are solely payments
of principal and interest on the principal
amount outstanding.

Financial asset not measured at
amortised cost or at fair value through
other comprehensive income is carried at
fair value through profit or loss.

For financial assets maturing within
one year from the Balance Sheet date,
the carrying amounts approximate
fair value due to the short maturity of
these instruments.

Impairment of financial assets

Loss allowance for expected credit
losses is recognised for financial assets
measured at amortised cost and fair value
through the Standalone Statement of
Profit and Loss.

For trade receivables only, the Company
recognises expected lifetime losses using
the simplified approach permitted by
Ind AS-109, from initial recognition of
the receivables.

For financial assets whose credit risk
has not significantly increased since
initial recognition, loss allowance equal
to twelve months expected credit losses
is recognised. Loss allowance equal

to the lifetime expected credit losses
is recognised if the credit risk on the
financial instruments has significantly
increased since initial recognition.

For financial assets maturing within
one year from the Balance Sheet date,
the carrying amounts approximates
fair value due to the short maturity of
these instruments.

De-recognition of financial assets

The Company de-recognises a financial
asset only when the contractual rights
to the cash flows from the financial
asset expire, or it transfers the financial
asset and the transfer qualifies for de¬
recognition under Ind AS 109.

If the Company neither transfers nor
retains substantially all the risks and
rewards of ownership and continues
to control the transferred asset, the
Company recognises its retained interest
in the assets and an associated liability for
amounts it may have to pay.

If the Company retains substantially all
the risks and rewards of ownership of a
transferred financial asset, the Company
continues to recognise the financial
asset and also recognises a collateralised
borrowing for the proceeds received.

On de-recognition of a financial asset in
its entirety, the difference between the
carrying amount measured at the date
of de-recognition and the consideration
received is recognised in Standalone
Statement of Profit or Loss.

(ii) Financial liabilities and equity
instruments

Classification as debt or equity

Financial liabilities and equity instruments
issued by the Company are classified
according to the substance of the
contractual arrangements entered into
and the definitions of a financial liability
and an equity instrument.

Equity instruments

An equity instrument is any contract
that evidences a residual interest in the
assets of the Company after deducting

all of its liabilities. Equity instruments are
recorded at the proceeds received, net of
direct issue costs.

Financial liabilities

Financial liabilities are initially measured
at fair value, net of transaction costs, and
are subsequently measured at amortised
cost, using the effective interest rate
method where the time value of money
is significant. Interest bearing bank
loans, overdrafts and issued debt are
initially measured at fair value and are
subsequently measured at amortised cost
using the effective interest rate method.
Any difference between the proceeds (net
of transaction costs) and the settlement or
redemption of borrowings is recognised
over the term of the borrowings in the
Standalone Statement of Profit and Loss.

For trade and other payables maturing
within one year from the Balance Sheet
date, the carrying amounts approximate
fair value due to the short maturity of
these instruments.

De-recognition

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 de¬
recognition of the original liability and
the recognition of a new liability. The
difference in the respective carrying
amounts is recognised in the Standalone
Statement of Profit and Loss.

Off-setting of financial instruments

Financial assets and financial liabilities
are offset and the net amount is reported
in the Standalone 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.

m. Segment reporting

Operating segments are identified as those
components of the Company (a) that engage
in business activities to earn revenues and
incur expenses (including transactions with
any of the Company ‘s other components);

(b) whose operating results are regularly
reviewed by the Company’s Chief Operating
Decision Maker (CODM) to make decisions
about resource allocation and performance
assessment and (c) for which discrete financial
information is available. The accounting
policies consistently used in the preparation
of Standalone Financial Statements are also
applied to record revenue and expenditure
in individual segments. Assets, liabilities,
revenues and direct expenses in relation to
segments are categorised based on items that
are individually identifiable to that segment,
while other items, wherever allocable, are
apportioned to the segment on an appropriate
basis. Certain items are not specifically
allocable to individual segments as the
underlying services are used interchangeably.
The Company therefore believes that it is
not practical to provide segment disclosures
relating to such items and accordingly such
items are separately disclosed as ‘unallocated’

An operating segment is classified as
reportable segment if reported revenue
(including inter-segment revenue) or
absolute amount of result or assets exceed
10% or more of the combined total of all the
operating segments.

CODM evaluates the performance of the
Company based on the single operative
segment as cloud based intelligent customer
engagement software solutions to retail
chain operators. Therefore, there is only one
reportable segment called CRM services in
accordance with the requirement of Ind AS 108
"Operating Segments”.

n. Cash and cash equivalents

Cash and cash equivalent in the Standalone
Balance Sheet comprise cash at banks and on
hand and short-term deposits with an original
maturity of three months or less that are
readily convertible to a known amount of cash
and which are subject to an insignificant risk
of changes in value.

o. Share-based payments

Certain employees of the Company are
entitled to share-based payments, whereby
employees render services as consideration for
equity instruments of the Company (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 Black-
Scholes valuation model.

That cost is recognised, together with a
corresponding increase in capital contribution
from the parent 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

Standalone Statement of Profit and Loss for a
period represents the movement in cumulative
expense recognised as at the beginning and
end of that year 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 Company 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.

p. Foreign currencies

The Company’s Standalone Financial
Statements are presented in ^, which is also
the Company’s functional currency.

Transactions and balances

Foreign currency transactions are translated
into the functional currency using the
exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated
in foreign currencies are translated at the
spot rates of exchange at the reporting date.
Exchange differences arising on settlement or
translation of monetary items are recognised
in Standalone Statement of Profit and Loss.

Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the dates of the initial transactions. Non¬
monetary items measured at fair value in
a foreign currency are translated using the
exchange rates at the date when the fair value
is determined. The gain or loss arising on
translation of non-monetary items measured at
fair value is treated in line with the recognition
of the gain or loss on the change in fair value of
the item (i.e., translation differences on items
whose fair value gain or loss is recognised in
OCI or profit or loss are also recognised in OCI
or profit or loss, respectively).

q. Earnings per share

Basic earnings per share is calculated by
dividing the net profit or loss for the period
attributable to equity shareholders of the
Company 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, bonus element in a rights issue, share
split, and reverse share split (consolidation
of shares) that have changed the number
of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings
per share, the net profit or loss for the period
attributable to equity shareholders of the
Company and the weighted average number
of shares outstanding during the period
are adjusted for the effects of all potential
dilutive equity shares.

r. Initial Public Offering (IPO) Transaction cost

The costs of an IPO that involves both issue
and listing of new shares and listing the
existing equity shares has been accounted
for as follows:

• Incremental costs that are directly
attributable to issuing new shares has
been deducted from equity (net of any
income tax benefit).

• Costs that relate to the stock market
listing, or are otherwise not incremental
and directly attributable to issuing new
shares, has been recorded as an expense
in the standalone statement of profit and
loss as and when incurred.

• Costs that relate to both share issuance
and listing has been allocated between
those functions on a rational and
consistent basis i.e. based on proportion
of new shares issued to the total number
of (new and existing) shares listed.

2.4 Material 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. Actual results could differ from those
estimates. 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.

The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the
period in which the estimate is revised and future
periods affected.

(i) 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.

(i) Estimates and assumptions (cont’d)

a. Fair value measurement of financial
instruments

When the fair values of financial
assets and financial liabilities
recorded in the Standalone Balance
Sheet cannot be measured based
on quoted prices in active markets,
their fair value is measured using
valuation techniques including the
Discounted Cashflows Model (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. Refer note 34
for further disclosures.

b. Contingencies

Contingent liabilities may arise from
the ordinary course of business
in relation to claims against the
Company, including legal and
contractual claims. By their nature,
contingencies will be resolved only
when one or more uncertain future
events occur or fail to occur. The
assessment of the existence and
potential quantum of contingencies
inherently involves the exercise of
significant judgement and the use
of estimates regarding the outcome
of future events. Refer note 31 for
further disclosures.

c. Defined benefit plans (gratuity
benefits)

The cost of the defined benefit
gratuity plan 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 parameter most subject to
change is the discount rate. In
determining the appropriate
discount rate for plan 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 for
India. 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 for India.

Further details about gratuity
obligations are given in note 28.

d. Provision for expected credit losses of
trade receivables and contract assets

The Company estimates the credit
allowance as per practical expedient
based on the historical credit loss
experience as enumerated in note 9(1).

e. 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 or when they need
to be adjusted to reflect the terms
and conditions of the lease. The
Company estimates the IBR using
observable inputs (such as market
interest rates) when available and
is required to make certain entity-
specific estimates. Refer note 30 for
further disclosures.

f. Share-based payments

The Company measures the cost
of equity settled transactions
with employees at the grant date
using a Black Scholes model

for General Employee Share
Option Plan (GESP) and ‘Capillary
Employees Stock Option Scheme’
- 2021 (CESP). This estimation also
requires determination of the most
appropriate inputs to the valuation
model including the expected
life of the share options, risk free
interest rate, volatility, dividend
yield and time value of money
and making assumptions about
them. The assumptions and model
used for estimating the fair value
of the share based payments are
disclosed in note 30.

g. Capitalisation of internally generated
software

The Company has identified
certain intangibles which are being
internally generated. In the research
phase of an internal project, an
entity cannot demonstrate that
an intangible asset exists that will
generate probable future economic
benefits. Therefore, this expenditure
is recognised as an expense when
it is incurred. An intangible asset
arising from development (or from
the development phase of an internal
project) shall be recognised if, and
only if, an entity can demonstrate all
of the following:

(a) the technical feasibility of
completing the intangible
asset so that it will be available
for use or sale.

(b) its intention to complete the
intangible asset and use or sell it.

(c) its ability to use or sell the
intangible asset.

(d) how the intangible asset will
generate probable future
economic benefits. Among
other things, the entity can
demonstrate the existence of
a market for the output of the
intangible asset or the intangible
asset itself or, if it is to be used
internally, the usefulness of the
intangible asset.

(e) the availability of adequate
technical, financial and other
resources to complete the
development and to use or sell
the intangible asset.

(f) its ability to measure reliably
the expenditure attributable
to the intangible asset during
its development.

The Company had completed the
research and acceptance phase and
the projects are in the development
phase. The Company has done
evaluation of the internally generated
software and concluded on being
treated as intangible assets. Refer
note 4 for further disclosure.

h. Taxes

Deferred tax assets are recognised for
unused tax losses to the extent that it
is probable that taxable profit will be
available against which the same can
be utilised. Significant management
judgement is required to determine
the amount of deferred tax assets
that can be recognised, based upon
the likely timing and the level of
future taxable profits together with
future tax planning strategies. Refer
note 26 for further disclosures.

The Company has carried forwarded
tax losses. The Company neither have
any taxable temporary difference
nor any tax planning opportunities
available that could partly support
the recognition of these losses as
deferred tax assets. On this basis,
the Company has determined that it
cannot recognise deferred tax assets
on the tax losses carried forward.

i. Cash flow statement

Cash flows are reported using indirect
method, whereby net profits/ (loss)
before tax is adjusted for the effects
of transactions of a non-cash nature
and any deferrals or accruals of past
or future cash receipts or payments
and items of income or expenses
associated with investing or
financing cash flows. The cash flows

from regular revenue generating
(operating activities), investing and
financing activities of the Company
are segregated.

2.5 Recent accounting pronouncement

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time.

In May 2025, MCA notified amendments to Ind AS
21 - The Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. April 1, 2025. The Group
has reviewed the amendment and based on its
evaluation has determined that it does not have
any significant impact in its financial statements.

In August 2025, MCA notified the
following amendments to:

1. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f April 1, 2025 - The amendment
relates to classification of liabilities as current
or non-current and non-current liabilities
with covenants. In the context of classifying a

liability as current, it removes the requirement
of existence of a right to defer settlement for
at least 12 months after the reporting date, and
instead requires that the said right should exist
on the reporting date and have substance.
The amendment also introduces guidance on
classification of liabilities with covenants. The
Group has no impact of these amendments
in its classification criteria of current and non¬
current liabilities.

Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments - Disclosures, applicable
w.e.f April 1, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements
of the existence of supplier finance arrangements
and explain the nature of the arrangements, the
carrying amount of liabilities and the range of
payment due dates. Ind AS 107 has been amended
to add supplier finance arrangements as a factor
that may cause concentration of liquidity risk. The
Group has reviewed the amendment and based on
its evaluation has determined that it does not have
any significant impact in its financial statements

(v) Rights, preference and restriction attached to equity shares

The Company has only one class of equity shares having par value of H 2 per share (March 31, 2025: H 2 per
share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays
dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of
the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion
to the number of equity shares held by the shareholders.

(vi) Rights, preference and restriction attached to preference shares

The Company had only one class of preference shares having par value of H 10 per share.

Each compulsorily convertible preference share had a par value of H 10 and was convertible at the option of
the Company into equity shares of the Company prior to the expiry of 20 years from the date of such issuance.

Nature and purpose of reserves

13.1 Retained earnings/(Accumulated deficit)

Retained earnings are the losses that the Company has earned till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders. Retained earnings is a free reserve available to the
Company and eligible for distribution to shareholders.

13.2 Capital contribution from CTIPL

CTIPL had a share option scheme under which it granted employee stock options to certain employees of the
Company without any cross charge. Capital contribution from the CTIPL is used to recognise the value of equity-
settled share-based payments provided to employees of the Company, including key management personnel,
as part of their remuneration, by the CTIPL. refer note 32 for further details.

Interest and security notes to Borrowings:

¹ The Company has availed a bank overdraft facility carrying interest rate linked to the interest rate of the underlying
fixed deposits (provided as security) 150 basis points. The loans are secured by way of hypothecation of stocks,
bills, book debts and receivables and fixed deposits held as margin moneys. The statements of current assets filed
monthly with banks are in agreements with the book of accounts.

² The Company has availed bank overdrafts facility from various banks, sales invoice discounting facility and pre/post
shipment credit facility carrying interest at REPO as reference rate and Secured Overnight Financing Rate (SOFR)
plus 175 to 180 basis points per annum. The sales invoice discounting facility and pre/post shipment credit facilities is
payable in 180 days from the disbursement of the loan or the due date of the discounted invoice, whichever is earlier.
The loans are secured by way of hypothecation of stocks, bills, book debts and receivables and fixed deposits held as
margin moneys by a bank. Further, the loan is also secured by way of a pari pasu first charge over all the existing and
future current assets (excluding receivables discounted by other banks) and moveable fixed assets. The statement
of current assets filed quarterly with banks are in agreements with the book of accounts.

*The Company has not been declared wilful defaulter by any bank or financial institution or government or government authority.

Trade payables are non-interest bearing and are normally settled on terms upto 90 days.

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which
recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the
Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ‘Micro,
Small and Medium Enterprises Development Act, 2006’ (‘the Act’). Accordingly, the disclosure in respect of the
amounts payable to such enterprises as at March 31, 2026 has been made in the standalone financial statements
based on information received and available with the Company. Further in view of the Management, the impact of
interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The
Company has not received any claim for interest from any supplier as at the Balance Sheet date.

i) The Company has unabsorbed depreciation loss of H 450.10 millions (March 31, 2025: H 481.86 millions) which can
be carried forward indefinitely.

27 Earnings/ (Loss) per share (EPS)

Basic EPS is calculated by dividing the profit/(loss) for the year attributable to equity shareholders of the Company
by the weighted average number of equity shares outstanding during the years. Partly paid equity shares are treated
as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully
paid equity share during the reporting years. The weighted average number of equity shares outstanding during
the years is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share
split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding
change in resources.

Diluted EPS is calculated by dividing the profit attributable to equity shareholders by the weighted average number
of equity shares outstanding during the years plus the weighted average number of equity shares that would be
issued on conversion of all the dilutive potential equity shares into equity shares.

Potential ordinary shares are antidilutive when their conversion to ordinary shares would increase earnings per
share or decrease loss per share from continuing operations. The calculation of diluted earnings per share does not
assume conversion, exercise, or other issue of potential ordinary shares that would have an antidilutive effect on
earnings per share.

II) Defined benefit plan

Gratuity

The Company operates an unfunded defined benefit gratuity plan for all of its qualifying employees in India.
Gratuity is calculated as 15 days' salary for every completed year of service or part thereof in excess of 6 months
and is payable on retirement/termination/resignation. The benefit vests on completing 5 years of service by
the employee. The Company makes provision of such gratuity liability in the books of account on the basis of
actuarial valuation as per projected unit credit method.

The following tables summarise the components of net benefit expenses recognised in the Standalone
Statement of Profit or Loss and amounts recognised in the Standalone Balance Sheet for gratuity benefit:

28 Gratuity and other post-employment benefit plans (Contd..)

& Employment published draft Central Rules and FAQs to enable assessment of the financial impact due
to changes in regulations. The Company has considered restructured compensation of its employees with
effect from April 1, 2026, and assessed the impact of the changes, consistent with the Labour Codes, draft
rules, FAQs and legal opinion.

The Company has recorded an amount of H 18.24 millions in the financial statement of profit and loss for the
year ended March 31, 2026 . The Company continues to monitor the finalisation of Central / State Rules and
clarifications from the Government on other aspects of the Labour Code and would provide appropriate
accounting effect on the basis of such developments as needed.

Notes:

i) The estimate of future salary increases, considered in actuarial valuation, take account of inflation,
seniority, promotion and other relevant factors such as supply and demand factors in the
employment market.

ii) Plan characteristics and associated risks:

The Gratuity scheme is a Defined Benefit Plan that provides for a lump sum payment made on exit
either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the
basis of final salary and the period of service and paid as lump sum at exit. The Plan design means the
risks commonly affecting the liabilities and the financial results are expected to be:

a. Discount rate risk : The defined benefit obligation calculated uses a discount rate based on
government bonds. If bond yields fall, the defined benefit obligation will tend to increase

b. Salary inflation risk : Higher than expected increases in salary will increase the defined
benefit obligation

c. Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements
that include mortality, withdrawal, disability and retirement. The effect of these decrements on
the defined benefit obligation is not straight forward and depends upon the combination of salary
increase, discount rate and vesting criteria. It is important not to overstate withdrawals because
in the financial analysis the retirement benefit of a short career employee typically costs less per
year as compared to a long service employee.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the
same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculating the defined benefit
liability recognised in the Standalone Balance Sheet.

29 Share-based payments

Description of the share based payment arrangements

The Company has Capillary Employee Stock Option Scheme - 2021 ("CESP") plan. The share-based payment

arrangements of the Company are as below:

A Capillary Employees Stock Option Scheme' - 2021 ('CESP')

The shareholders of the Company on October 29, 2021 had approved the 'Capillary Employees Stock Option
Scheme' - 2021 (CESP). The plan provides for the issue of 72,91,000 options to eligible employees and eligible
directors of the Capillary Group. Capillary Group shall mean the Company and its wholly owned subsidiaries,
either existing or as may be incorporated from time to time and its Holding Company and any successor
company thereof.

The plan is administered by a Board of Directors “Board”/ Nomination and Remuneration Committee (“NRC”)
constituted by the Board (as the case may be) . Under CESP all employees are entitled to a grant of options once
they have been in service and eligible based on conditions determined by the Board/ NRC . The exercise price
shall be as may be determined by the Administrator at the time of grant of options provided that the exercise
price shall not be more than the fair market value of the shares as on the date of grant of options.

There shall be a minimum period of one (1) year between the grant of options and vesting of options, with a
maximum period of ten (10) years from the date of grant of such options. Vesting of options would be subject to
continued employment with the Company and the options would vest on a quarterly basis. The option grantee
may exercise the vested options as per the scheme.

Measurement of fair values

The fair value of the share options granted under the CESP is estimated at the grant date using Black-Scholes
method, taking into account the terms and conditions upon which the share options were granted. The model
outputs the implied total value of the enterprise when the valuation accounts for all share class rights and
preferences, as of the date of the latest financing by the Company.

The weighted average remaining contractual life of vested option As at March 31, 2026 is 6.57 years (March 31,
2025 - 7.71 years) and 8.05 years (March 31, 2025 - 7.01 years) for unvested options.

B Effective July 01, 2025, the Company has amended its existing CESP plan, whereby the options granted to
employees shall vest only upon the achievement of market linked condition of share price and continued
employment with the Group at any time during the vesting period with a maximum period of ten (10) years.
The options are granted at an exercise price of 20% discount on the fair market value of share price at the grant
date of options other than USA employees wherein those are granted at an exercise price of fair market value of
share price. The option grantee may exercise the vested options as per the scheme.

30 Leases

Company as a lessee

The Company has lease contracts for office facility. The lease term of the office facility is around 2 years. The Company
also has certain leases of offices with lease terms of 12 months or less or low value. The Company applies the leases
of low value assets and short term leases recognition exemptions for these leases.

The Company has lease contracts that include extension and termination options. The Company applies judgement in
evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That
is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination.
After the commencement date, the Company reassesses the lease term if there is a significant event or change in
circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to
terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).

(a) The right of use assets co^aprise of buildings taken on lease. The effective interest rate for lease liabilities is 9.5%
as on March 31, 2026 (March 31, 2025 - 9.5%)

31 Contingent liabilities

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company
assesses such claims and assertions and monitors the legal environment on an ongoing basis with the assistance
of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss
is probable and capable of being estimated and discloses such matters in its Standalone Financial Statements, if
material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the
Standalone Financial Statements but does not record a liability in its accounts unless the loss becomes probable.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The
Company believes that none of the contingencies described below would have a material adverse effect on the
Company's financial condition, results of operations or cash flows.

No share options have been granted to the non-executive members of the Board of Directors under the share based

payments plans of the Holding Company and the Company. Refer to note 29 for further details on the scheme.

Notes:-

1. The transactions with related parties are made by the Company on terms equivalent to those that
prevail in arm's length transactions. Outstanding balances at the year end are unsecured and settlement
occurs in cash.

2. As the liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a
whole, the amount pertaining to remuneration to the key managerial personnel are not ascertainable and,
therefore, not disclosed above.

3. In respect of the transactions with the related parties, the Company has complied with the provisions
of Section 188 and Section 177 of the Companies Act, 2013 where applicable, and the details have been
disclosed above, as required by the applicable accounting standards.

4. Refer note 14 for borrowings with regard to securities given by the Holding Company for the loan facility
availed by the Company.

5. The above information has been determined to the extent such parties have been identified on the basis of
information available with the Company.

33 Segment information - Disclosure pursuant to Ind AS 108 'Operating Segments'

Basis of identifying operating segments/reportable segments

Operating segments are identified as those components of the Company (a) that engage in business activities
to earn revenues and incur expenses (including transactions with any of the Company's other components); (b)
whose operating results are regularly reviewed by the Company's Management Team who are Chief Operating
Decision Maker (CODM) to make decisions about resource allocation and performance assessment and (c) for

33 Segment information - Disclosure pursuant to Ind AS 108 ‘Operating Segments' (Contd..)

which discrete financial information is available. The accounting policies consistently used in the preparation of
the standalone financial statements are also applied to record revenue and expenditure in individual segments.
Assets, liabilities, revenues and direct expenses in relation to segments are categorised based on items that are
individually identifiable to that segment, while other items, wherever allocable, are apportioned to the segment on
an appropriate basis. Certain items are not specifically allocable to individual segments as the underlying services
are used interchangeably. The Company therefore believes that it is not practical to provide segment disclosures
relating to such items and accordingly such items are separately disclosed as ‘unallocated’."

Two or more operating segments may be aggregated into a single operating segment if aggregation is consistent
with the core principle of Ind AS 108 - 'Operating Segments' i.e. the segments have similar economic characteristics
and the segments are similar in the nature of services, type or class of customer for their services etc. CODM evaluates
the performance of the Company based on the single operative segment as cloud based intelligent customer
engagement software solutions to retail chain operators ('CRM Services'). Therefore, there is only one reportable
segment called CRM services in accordance with the requirement of Ind AS 108 "Operating Segments".

The Company has presented segmental information in the consolidated financial statements which are presented
in the same annual report. Accordingly, in terms of Paragraph 4 of Ind AS 108 ‘Operating Segments’, no disclosures
related to segments are presented in these standalone financial statements.

34 Financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional
information on balance sheet items that contain financial instruments.

The details of material accounting policies, including the criteria for recognition, the basis of measurement and the
basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and
equity instrument are disclosed in note 2.3.(l).

(a) Financial assets and liabilities

The management assessed that cash and bank balances, trade receivables, trade payables, and other current
financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of
these instruments. Non-current financial assets and liabilities are discounted using an appropriate discounting
rate where the time value of money is material. There are no financial instruments which are measured at fair
value through other comprehensive income As at March 31, 2026 and March 31, 2025.

The following tables presents the carrying value and fair value of each category of financial assets and liabilities
as at March 31, 2026 and March 31, 2025:

(b) Fair Value Hierarchy

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by
reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists
of investment in quoted equity shares and mutual fund investments.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and
liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial
assets and liabilities measured using inputs that are not based on observable market data (unobservable
inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are
neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data.

(i) Short-term financial assets and liabilities are stated at carrying value which is approximately equal to
their fair value.

(ii) Management uses its best judgement in estimating the fair value of its financial instruments. However,
there are inherent limitations in any estimation technique. Therefore, for substantially all financial
instruments, the fair value estimates presented above are not necessarily indicative of the amounts that
the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of
financial instruments subsequent to the reporting dates may be different from the amounts reported at
each reporting date.

(iii) There have been no transfers between Level 1, Level 2 and Level 3 for the year ended March 31, 2026 and
March 31, 2025.

(c) Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings and lease liabilities, trade and other payables.
The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal
financial assets include trade receivables, other financial assets and cash and bank balances derived from
its operations.

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates,
interest rates, liquidity and credit risk, which may adversely impact the fair value of its financial instruments.
The Company has a risk management policy which not only covers the foreign exchange risks but also other
risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk
management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of currency and interest rate
fluctuations on the Company’s business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected
earnings in advance.

(i) Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may
result from a change in the price of a financial instrument. The value of a financial instrument may change
as a result of changes in interest rates, foreign currency exchange rates, liquidity and other market changes.
Future specific market movements cannot be normally predicted with reasonable accuracy."

(1) Market risk- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company’s exposure to the risk of changes in market
interest rates relates primarily to the Company’s debt obligations with floating interest rates. Thus
profits and cash flows from financing activities are dependent on market interest rates. Further, any
decline in the credit rating of the Company will have an adverse impact on the interest rates.

The interest rate profile of the Company's interest-bearing financial instruments as reported to the
management of the Company is as follows:

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on
the portion of loans and borrowings affected. With all other variables held constant, the Company’s
profit before tax/equity is affected through the impact on floating rate borrowings, as follows:

34 Financial instruments (Contd..)

(2) Market risk- Foreign currency risk

The Company operates both in domestic and international market and consequently the Company is
exposed to foreign exchange risk through its sales in overseas countries. The Company holds forward
contracts such as foreign exchange contracts to mitigate the risk of changes in exchange rates on
foreign currency exposures.

The sensitivity analysis has been based on the composition of the Company’s financial assets and
liabilities at March 31, 2026 and March 31, 2025. The year end balances are not necessarily representative
of the average debt outstanding during the year. Profit and equity are not disclosed separately as the
Company has no impact on taxes.

(ii) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to
H 768.31 millions and H 444.53 millions As at March 31,2026 and March 31, 2025 respectively. Trade receivable
includes both secured and unsecured receivables and are derived from revenue earned from domestic
and overseas customers. Credit risk has always been managed by the Company through taking security
deposits and bank guarantees from customers, credit approvals, establishing credit limits and continuously
monitoring the credit worthiness of customers to which the Company grants credit terms in the normal
course of business. The Company follows ‘simplified approach’ for recognition of impairment loss allowance
on trade receivable. Under the simplified approach, the Company does not track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime expected credit losses at each reporting
date, right from initial recognition. The company uses forward looking information to determine Expected
Credit Loss (ECL) model and uses provision matrix to determine impairment loss allowance on the portfolio

of trade receivables. The provision matrix takes into account, available external and internal credit risk
factors and the Company’s historical experience with customers. An impairment analysis is performed at
each reporting date on an individual basis based on historical data of credit losses. Credit risk on cash and
cash equivalents including other bank balances, investment in mutual funds and debt securities is limited
as the Company generally invest in deposits with banks, financial institutions and counterparties with high
credit ratings assigned by international and domestic credit rating agencies.

For ageing analysis of the trade receivables, refer Note 8.2.

(iii) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as
per requirements. The Company has obtained fund based working capital limits from a bank. The Company
invests its surplus funds in bank fixed deposit, which carry no or low market risk.

The Company monitors its risk of shortage of funds on a regular basis. The Company’s objective is to maintain
a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans,
etc. The Company assessed the concentration of risk with respect to refinancing its debt and concluded
it to be medium.

The following table shows a maturity analysis of the anticipated cash flows excluding interest obligations
for the Company’s financial liabilities on an undiscounted basis, which may differ from both carrying value
and fair value.

35 Capital management

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long¬
term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long¬
term and short-term strategic investment and expansion plans. The funding needs are met through equity, cash
generated from operations, long-term and short-term borrowings and support from the Holding Company.

For the purpose of the Company’s capital management, capital includes issued equity capital, and all other equity
reserves attributable to the equity share holders of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors debt
equity ratio, which is Net debt i.e. total debts less funds divided by total equity. The Company’s policy is to keep the
gearing ratio at an optimum level to ensure that the debt related covenants are complied with.

Notes:

(a) Due to the repayment of borrowings and the sale of short-term investments during the year.

(b) Due to decrease in losses during the year/period

(c) Due to decrease in debtor days

(d) Due to decrease in creditors days

(e) Due to movement in investment

(f) Inventory turnover ratio is not applicable to the Company

37 The Company is in the process of conducting a transfer pricing study as required by the transfer pricing
regulations under the Income Tax Act 1961 (‘regulations’) to determine whether the transactions entered during
the year ended March 31, 2026 with the associated enterprises were undertaken at "arm’s length price”. The
management confirms that all the transactions with associate enterprises are undertaken at negotiated prices
on usual commercial terms and is confident that the aforesaid regulations will not have any impact on the
Standalone Financial Statements, particularly on the amount of tax expense and that of provision for taxation.

38 Other statutory information:

(i) The Company has not advanced or loaned or invested funds to any person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding that the Intermediaries shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by on behalf of the
Company (“Ultimate Beneficiaries”) or provide any guarantee, or security or the like on behalf of the Ultimate
Beneficiaries except below:

The Company has complied with relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999)
and the Companies Act, 2013 for the above transactions and the transactions are not violative of the Prevention
of Money Laundering Act, 2022 (15 of 2003).

Complete details of the Intermediaries and Ultimate Beneficiaries are given below.

Note : Capillary Pte. Ltd., has invested in the shares of Capillary Technologies LLC, USA in the month of April
2025, which has further invested in the acquisition of Kognitiv Solutions, Inc.

(ii) The Company has not received funds from any person(s) or entity(ies), 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.

(iii) The Company has no such transaction which is not recorded in the books of account that has been surrendered
or disclosed as income during the period 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).

38 Other statutory information: (Contd..)

(iv) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules
made thereunder.

(v) The Company does not have any transactions with companies struck off during the year.

(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
beyond the statutory period other than those disclosed in note 15.

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

39 Events after reporting period

There are no material non-adjusting events after the reporting period till the date of issue of these financial

statements (i.e. May 06, 2026) which require disclosure in standalone financial statements.

40 Prior year amounts have been regrouped / reclassified wherever necessary, to confirm to the presentation in the
current year, which are not material.