2.14 Provisions and contingent liabilities
Provisions

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount
can be reliably estimated.

Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end of the
reporting period. The discount rate used to determine
the present value is a pre-tax rate that reflects current
market assessments of the time value of money and the
risks specific to the liability. The increase in the provision
due to the passage of time is recognised as an interest
expense. Provisions are not recognised for future
operating losses.

Provisions for onerous contracts are recognised when
the expected benefits to be desired by the Company
from a contract are lower than unavoidable costs of
meeting to future obligations under the contract and are
measured at the present value of lower than expected
net cost of fulfilling the contract and expected cost of
terminating the contract.

Contingent liabilities

A contingent liability is a possible obligation that arises
from past events, the occurrence or non-occurrence
of which is dependent on the happening of one or more
uncertain future events not wholly within the control
of the entity; or a present obligation arising from past
events with no probability of future outflow of economic
benefits or the outflow cannot be estimated reliably.
Contingent liabilities do not warrant provisions, but are
disclosed unless the possibility of outflow of resources
is remote.

Provisions and Contingent liabilities are reviewed at each
reporting date.

2.15 Revenue

Revenue from contract with customers is recognised by
applying revenue recognition criteria specified in Ind AS
115 'Revenue from Contracts with customers for each
distinct performance obligation. The arrangement with
customers specifies services to be rendered which meet
criteria of performance obligations. Revenue towards
satisfaction of a performance obligation is measured
at the amount of transaction price (net of variable
consideration) allocated to that performance obligation.
The method for recognising revenues and costs depends
on the nature of services rendered as mentioned below:

a) Time and material: Revenue from time and material
contracts are recognised as the related services are
performed, which is pursued based on the efforts spent
and agreed rate with the customer. Revenue from the end
of the last invoicing to the reporting date is recognised
as contract asset.

b) Fixed price contracts: Revenue from fixed price
contracts is recognised as per the 'percentage-of-
completion’ method, where the performance obligations
are satisfied over time and when there is no uncertainty
as to measurement or collectability of consideration.
When there is uncertainty as to measurement or
ultimate collectability, revenue recognition is postponed
until such uncertainty is resolved. Percentage of
completion is determined based on the project costs
incurred to date as a percentage of total estimated
project costs required to complete the project. The input
method has been used to measure the progress towards
completion as there is direct relationship between input
and productivity. In certain projects, a fixed quantum of
service or output units is agreed at a fixed price. In such
contracts, revenue is recognised with respect to the
actual output achieved till date as a percentage of total
contractual output.

c) Maintenance contracts: Revenue from fixed price
maintenance contracts are recognised pro-rata over the
term of the maintenance arrangement.

Contract modifications are accounted for when
additions, deletions or changes are approved either to
the contract scope or contract price. The accounting for
modifications of contracts involves assessing whether
the services added to an existing contract are distinct
and whether the pricing is at the standalone selling
price. Services that are not distinct are accounted for on
a cumulative catchup basis, while those that are distinct
are accounted for prospective, either as a separate
contract, if the additional services are priced at the
standalone selling price, or as a termination of existing
contract and creation of a new contract if not priced at
the standalone selling price.

The Company accounts for volume discounts and pricing
incentives to customers as a reduction of revenue based
on the ratable allocation of discounts/incentives to
each of the underlying performance obligations that
corresponds to the progress by the customer towards
earning the discount/incentive.

The Company presents revenues net of indirect taxes in
the statement of profit and loss.

Trade receivables and contract balances:

The timing of revenue recognition, billings and cash
collections results in receivables, contract assets, and
unearned revenue on the Balance Sheet. Amounts are
billed as work progresses in accordance with agreed-
upon contractual terms, either at periodic intervals or
upon achievement of contractual milestones.

The Company classifies the right to consideration in
exchange for deliverables as either a receivable or as
contract assets. A receivable is a right to consideration
that is unconditional upon passage of time. Revenue
recognised in excess of invoicing are classified as
contract assets while invoicing in excess of revenue are
classified as contract liabilities. Trade receivables and
contract assets are presented net of impairment in the
Balance Sheet.

The Company accounts for the deferred contract costs,
upfront costs incurred for the contract, on a systematic
amortisation that is consistent with the transfer to the
customer of the goods or services to which the asset
relates.

2.16 Other income

Interest income from a financial asset is recognised when
it is probable that the economic benefits will flow to the
Company and the amount of income can be measured
reliably.

Interest income is recognised on a time proportion basis
considering the amount outstanding and rate applicable
in the transaction.

Foreign currency gains and losses are reported on net
basis. This includes the changes in the fair value of
foreign exchange derivative instruments, which are
accounted at fair value through the statement of profit
and loss.

Dividend income is recognised when the Company’s
right to receive dividend is established.

2.17 Employee benefits
Short-term employee benefits:

Short-term employee benefits are expensed as the
related service is provided. A liability is recognised
for the amount expected to be paid if the Company
has a present legal or constructive obligation to pay
this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.

The Company’s contributions to defined contribution
plans are charged to the statement of profit and

loss as and when the services are received from the
employees. Employee benefits include provident
fund, superannuation fund, employee's state
insurance scheme, gratuity fund, pension and deferred
compensation, compensated absences and other short¬
term benefits.

Long term employee benefit obligations
Compensated absences

The employees of the Company are entitled to
compensated absences. The employees can carry¬
forward a portion of the unutilised accrued compensated
absence and utilise it in future periods or receive
cash compensation at retirement or termination of
employment. The Company records an obligation
for compensated absences in the period in which
the employee renders the services that increase this
entitlement. The Company measures the expected cost
of compensated absence based on actuarial valuation
made by an independent actuary as at the balance sheet
date on projected unit credit method.

Post-employment obligations

The Company operates the following post¬
employment schemes:

(i) Defined benefit plans
Gratuity and pension

The Company accounts for its liability towards gratuity
and pension ('post- employment benefits plan') based
on actuarial valuation made by an independent actuary
as at the balance sheet date using projected unit credit
method. The liability recognised in the balance sheet in
respect of the post- employment benefits plan is the
present value of the defined benefit obligation at the
end of the reporting period less the fair value of the plan
assets.

The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of the
reporting period on government bonds that have terms
approximating to the terms of the related obligation.
The net interest cost is calculated by applying the
discount rate to the net balance of the defined obligation
and the fair value of plan assets. This cost is included
in the employee benefit expense in the statement of
profit and loss. Remeasurement gains and losses arising
from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they
occur, directly in other comprehensive income. Changes
in the present value of the defined benefit obligation
resulting from plan amendments or curtailments are
recognised immediately in the statement of profit and
loss as past service cost.

(ii) Defined contribution plans

Contributions in respect of provident fund and pension
fund which are defined contribution schemes, are made
to a fund administered and managed by the Government
of India and are charged as an expense based on the
amount of contribution required to be made and when
service are rendered by the employees.

Contributions under the superannuation plan which
is a defined contribution scheme, are made to a fund
administered and managed by the Life Insurance
Corporation of India and are charged as an expense
based on the amount of contribution required to be
made and when services are rendered by the employees.

Other short-term employee benefits

Other short-term employee benefits, including
overseas social security contributions and performance
incentives expected to be paid in exchange for the
services rendered by employees are recognised during
the period when the employee renders service.

2.18 Share-based payments

Certain employees of the Company receive
remuneration in the form of share-based payments,
whereby employees render services as consideration for
equity instruments.

Equity settled share-based payment transactions:

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using a
Black Scholes model.

That cost is recognised, together with a corresponding
increase in employees stock option 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.

At the end of each reporting period, the Company
revises its estimate of the number of equity instruments
expected to vest. The impact of the original estimates,
if any, is recognised in the statement of profit and loss
statement such that the cumulative expense reflects
the revised estimate, with a corresponding adjustment
to the share-based payments reserve in equity. Equity
settlement component is not remeasured at each
reporting date.

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

2.19 Earnings per share

Basic EPS is calculated by dividing the net profit
attributable to equity shareholders of the Company
by the weighted average number of equity shares
outstanding during the year excluding treasury shares.

Diluted EPS is calculated by adjusting the net profit
attributable to equity shareholders and the weighted
average number of shares outstanding during the
year are adjusted for the effects of all dilutive potential
equity shares, which includes all stock options granted
to employees and Restricted Share Units ('RSU's')
outstanding.

2.20 Operating segments

The Company's Chief Operating Decision maker is
the Executive Vice Chairman and Managing Director
who evaluates Company's performance and allocates
resources based on analysis of various performance
indicators by business verticals and geographical
segmentation of customers. The Company has only
one reportable business segment, which is rendering
of Services. Segment information has been presented
in the consolidated financial statements in accordance
with Ind AS 108 'Operating Segments' notified under the
Companies (Indian Accounting Standards) Rules, 2015.

2.21 Financial instruments

(A) Initial recognition

Financial assets and financial liabilities are recognised
when a Company becomes a party to the contractual
provisions of the instruments. Financial assets and
financial liabilities are initially measured at fair value
and subsequently measured at amortised cost, fair
value through other comprehensive income ('FVTOCI')
and fair value through profit or loss ('FVTPL'). 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.
Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at FVTPL are
recognised immediately in the statement of profit and
loss. 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 to
the accounting policies for revenue in note 2.16.

(B) Subsequent measurement

a. Non-derivative financial instruments

i) Financial assets carried at amortised cost:

A financial asset is subsequently measured at
amortised cost if it is held within a business model
whose objective is to hold the asset 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.

ii) Financial assets at FVTOCI: A financial asset is
subsequently measured at FVTOCI if it is held within
a business model whose objective is achieved by
both collecting contractual cash flows and selling
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.
The Company has made an irrevocable election
for its investments which are classified as equity
instruments to present the subsequent changes
in fair value in other comprehensive income based
on its business model.

iii) Financial assets at FVTPL: Financial assets
which are not classified in any of the above
categories are subsequently fair valued through
profit or loss.

iv) Financial liabilities: Financial liabilities are
subsequently carried at amortised cost using the
effective interest method, except for contingent
consideration recognised in a business
combination which is subsequently measured at
fair value through 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.

b. Derivative financial instruments

The Company enters into derivative financial
instruments to manage its exposure to foreign
exchange rate risks, including foreign exchange
forward contracts.

Derivatives are initially recognised at fair value at
the date the derivative contracts are entered into
and are subsequently remeasured to their fair value
at the end of each reporting period. The resulting
gain or loss is recognised in the statement of
profit and loss immediately unless the derivative is
designated and effective as a hedging instrument,
in which event the timing of the recognition in the
statement of profit and loss depends on the nature
of the hedging relationship and the nature of the
hedged item.

Effective interest method

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income/expense over
the relevant period. The effective interest rate is
the rate that exactly discounts estimated future
cash receipts (including all fees and points paid or
received that form an integral part of the effective
interest rate, transaction costs and other premiums
or discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period,
to the net carrying amount on initial recognition.

Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised in the statement of profit and loss and is
included in 'Other income’.

c. Hedge accounting

The Company designates derivative contracts in
a cash flow hedging relationship by applying the
hedge accounting principles designated in a hedging
relationship, used to hedge its risks associated with
foreign currency fluctuations relating to certain
highly probable forecast transactions.

At the inception of the hedge relationship, the
Company documents the relationship between
the hedging instrument and the hedged item,
along with its risk management objectives and its
strategy for undertaking various hedge transactions.
Furthermore, at the inception of the hedge and on an
ongoing basis, the Company documents whether the
hedging instrument is highly effective in offsetting
changes in fair values or cash flows of the hedged
item attributable to the hedged risk.

These derivative contracts are stated at the fair value
at each reporting date.

The effective portion of changes in the fair value of
derivatives that are designated and qualify as cash
flow hedges is recognised in other comprehensive
income and accumulated under cash flow hedge
reserve. The gain or loss relating to the ineffective
portion is recognised immediately in the statement
of profit and loss.

Amounts previously recognised in other
comprehensive income and accumulated in equity
relating to effective portion (as described above) are
reclassified to the consolidated statement of profit
and loss in the periods when the hedged item affects
profit or loss.

Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or
exercised, or when it no longer qualifies for hedge
accounting. Any gain or loss recognised in other
comprehensive income and accumulated in equity at
that time remains in equity and is recognised when
the forecast transaction is ultimately recognised in
the statement of profit and loss. When a forecast
transaction is no longer expected to occur, the gain or
loss accumulated in equity is recognised immediately
in the statement of profit and loss.

d. De-recognition of financial assets and liabilities
Financial assets

The Company de-recognises a financial asset when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership
of the asset to another party. 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 asset’s carrying amount
and the sum of the consideration received and
receivable and the cumulative gain or loss that had
been recognised in other comprehensive income
and accumulated in equity is recognised in the
consolidated statement of profit and loss if such
gain or loss would have otherwise been recognised
in the statement of profit and loss on disposal of that
financial asset.

Financial liabilities

The Company de-recognises financial liabilities
when, and only when, the Company’s obligations are
discharged, cancelled or have expired. The difference
between the carrying amount of the financial liability
de-recognised and the consideration paid and payable
is recognised in the statement of profit and loss.

e. Foreign exchange gains and losses

For foreign currency denominated financial assets
measured at amortised cost and FVTPL, the exchange
differences are recognised in the statement of profit
and loss except for those which are designated as
hedging instruments in a hedging relationship.

Changes in the carrying amount of investments in
equity instruments at FVTOCI relating to changes
in foreign currency rates are recognised in other
comprehensive income.

For financial liabilities that are denominated in a
foreign currency and are measured at amortised
cost at the end of each reporting period, the foreign
exchange gains and losses are determined based
on the amortised cost of the instruments and are
recognised in the statement of profit and loss.

The fair value of financial liabilities denominated
in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end
of the reporting period. For financial liabilities that
are measured as at FVTPL, the foreign exchange
component forms part of the fair value gains or losses
and is recognised in the statement of profit and loss.

2.22 Fair value measurement

In determining the fair value of its financial instruments,
the Company uses a variety of methods and assumptions
that are based on market conditions and risks existing at
each reporting date. The methods used to determine
fair value include discounted cash flow analysis, available
quoted market prices and dealer quotes. All methods of
assessing fair value result in general approximation of
value, and such value may never actually be realised.

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,
regardless of whether that price is directly observable
or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the
Company takes into account the characteristics of asset
or liability of market participants when pricing the asset
or liability at the measurement date.

Fair value for measurement and/or disclosure
purposes in these consolidated financial statements
is determined on such a basis, except for share-based
payment transactions that are within the scope of Ind
AS 102, leasing transactions that are within the scope of
Ind AS 116 'Leases’, and measurements that have some
similarities to fair value but are not fair value, such as net
realisable value in Ind AS 2 'Inventories’ or value in use in
Ind AS 36 ' Impairment of Assets’.

In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2, or 3
based on the degree to which the inputs to the fair value
measurements are observable and the significance of
the inputs to the fair value measurement in its entirety,
which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the
entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset
or liability.

2.23 Impairment of assets

a. Financial assets

The Company recognises loss allowances using the
expected credit loss ('ECL') model for the financial
assets which are not fair valued through statement of
profit and loss. Loss allowance for trade receivables
with no significant financing component is measured at
an amount equal to lifetime ECL. For all other financial
assets, expected credit losses are measured at an
amount equal to the 12 months ECL, unless there has
been a significant increase in credit risk from initial
recognition in which case those are measured at
lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance
at the reporting date to the amount that is required
to be recognised as an impairment gain or loss in the
statement of profit and loss.

For trade receivables, the Company applies the
simplified approach permitted by Ind AS 109 'Financial
Instruments', which requires expected lifetime
losses to be recognised from initial recognition of the
receivables. As a practical expedient, the Company uses
a provision matrix to determine impairment loss of its
trade receivables. The provision matrix is based on its
historically observed default rates over the expected
life of the trade receivable and is adjusted for forward
looking estimates. The ECL loss allowance (or reversal)
during the year is recognised in the statement of profit
and loss.

b. Non-financial assets

Other intangible assets, intangible assets under
development, property, plant and equipment, capital
work-in-progress and ROU assets are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying amounts
may not be recoverable. For the purpose of impairment
testing, the recoverable amount (i.e. the higher of the fair
value less cost to sell and the value-in-use) is determined
on an individual asset basis unless the asset does not
generate cash flows that are largely independent of
those from other assets. In such cases, the recoverable
amount is determined for the cash generating unit
('CGU') to which the asset belongs. Intangible assets
under development are tested for impairment annually.
The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are
prepared separately for each of the Company's CGUs to
which the individual assets are allocated.

If such assets are considered to be impaired, the
impairment to be recognised in the statement of profit
and loss is measured by the amount by which the
carrying value of the assets exceeds the estimated
recoverable amount of the asset. An impairment loss
is reversed in the statement of profit and loss if there
has been a change in the estimates used to determine
the recoverable amount. The carrying amount of the
asset is increased to its revised recoverable amount,
provided that this amount does not exceed the carrying
amount that would have been determined (net of any
accumulated amortisation or depreciation) had no
impairment loss been recognised for the asset in prior
years.

2.24 Dividend to equity holders

The Company recognises a liability to pay a dividend
when the distribution is authorised and the distribution
is no longer at the discretion of the Company.

The final dividend on shares is recorded as a liability on
the date of approval by the shareholders at the Annual
General Meeting and interim dividends are recorded as
a liability on the date of declaration by the Company's
Board of Directors. Dividend payments are accounted as
an appropriation, presented as part of the other equity.

The Company declares and pays dividends in Indian
rupees. Companies are required to pay / distribute
dividend after deducting applicable taxes. The
remittance of dividends outside India is governed by
Indian law on foreign exchange and is also subject to
withholding tax at applicable rates.

2.25 New and amended standards

Mentioned below are the new and amended standards as
notified by the Ministry of Corporate Affairs (MCA), which
are effective for annual periods beginning on or after April
01, 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

(iii)Amendments to Ind AS 12 - International Tax Reform-
Pillar Two Model Rules

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 thejurisdictional
implementation ofthe 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 01, 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

Standards notified but not yet effective:

There are no standards that are notified and not yet
effective as on the date.

Note:

Impairment testing of Goodwill:

In an earlier year, the Company had acquired a specified business undertaking of Klaus IT Solutions Private Limited ("Klaus IT"),
which is engaged in providing professional services in the areas of engineering, software, and information technology. As part of
this acquisition, goodwill amounting to ?110 was recognised.

The Company tests goodwill for impairment on an annual basis. The recoverable value of Klaus IT is determined based on value-
in-use calculation using the cash flow projections prepared by the management covering 5 year period.

The estimated value-in-use of Klaus IT is based on the future cash flows using annual growth rate of 4% and discount rate of
22% for periods subsequent to the forecast period of 5 years. An analysis of the sensitivity to a change in key parameters (i.e.
operating margin, discount rates and long term average growth rate), based on reasonably probable assumptions, did not identify
any probable scenario in which the recoverable amount of Klaus IT would decrease below its carrying amount.

#1. During the year Company subscribed 4,387,500 fully paid up shares @ face value of GBP 0.01 each, amount invested ?

1,694.

#2. During the year Company subscribed 180 fully paid up shares @ face value of AUD 55,508.60 each, amount invested ? 603
(Investment value as of March 31, 2025: ? 0.05), rounded off.

#3. Investment value is ? 0.1 (March 31, 2025: ? 0.1), rounded off.

#4. During the year Company subscribed 142,200,000 fully paid up shares @ face value of SGD 0.15 each, amount invested
? 1,477. Further the Company has recognised a one-time provision for impairment of investment of ? 2,429 for the year
ended March 31, 2026 (refer note 28).

#5. The Company had subscribed to 11,240,000 Compulsorily convertible debentures @ face value of ? 100 each in the
financial year ended March 31, 2024.

On the Conversion date i.e October 19, 2033, every 1 (one) CCD will convert into 1 (one) Equity Share of face value of INR 10
each of the Cyient Insights Private Limited.

#6. The Company has Subscribed to 9,999 fully paid up equity shares of Cyient Global Captive Solutions Private Limited @ face
value of ? 10 each during the year ended March 31, 2025. Investment value is ? 0.1 rounded off.

#7. During the previous year, the Company sold 11,499,498 equity shares @ 760 per share resulting in a gain of ? 7,831 (refer
note 28).

#8. The Company has subscribed to 149,999,999 fully paid up equity shares of Cyient Semiconductors Private Limited 10
each during the year ended March 31, 2025, further 378,513,000 fully paid-up equity shares subscribed @ ? 10 each during
the financial year ended March 31, 2026.

#9. In the year 2020-21, the Company has impaired the carrying value of its investment in joint venture company, Infotech HAL
Limited, India of ? 20, based on the long term outlook of the business.

#10. During the year, Company subscribed 73 fully paid up shares of Cyient Project Management Consultancy - L.L.C - S.P.C @
face value of AED 100,000 each, amount invested ? 170.

Note:

Expected credit loss (ECL):

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Credit risk is
managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers
to which the Company grants credit terms in the normal course of business. The average credit period range is between 30-120
days.

As a practical expedient, the Company uses a provision matrix to determine impairment loss of its trade receivables. The
provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted
for forward looking estimates. The ECL allowance (or reversal) during the year is recognised in the statement of profit and loss.

(d) Rights, preferences and restrictions attached to equity shares:

The Company has only one class of equity shares having a par value of ? 5 per share. Each holder of equity shares is entitled to one
vote per share. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company in proportion to their shareholding.

(e) Purchase of treasury shares:

Refer note 11B(h) for details relating to treasury shares.

(f) (i) Associate Stock Option Plans: (equity settled)

Associate Stock Option Plan - 2015 (ASOP 2015):

The Company has instituted ASOP 2015 in July 2015 and earmarked 1,200,000 equity shares of? 5 each for issue to eligible
associates of the Company and Subsidiaries under ASOP. Under ASOP 2015, options will be issued to employees at an exercise
price, which shall not be less than the market price on the date of grant. These options vest over a period ranging from one to
three years from the date of grant, starting with 10% at the end of first year, 15% at the end of one and half years, 20% after two
years, 25% at the end of two and half years and 30% at the end of third year.

Associate Restricted Stock Units Scheme 2020 (ARSU 2020):

The Company has instituted the ARSU's 2020 plan earmarking 1,050,000 shares of ? 5 each which provided for grant of Restricted
Stock Units ('RSUs') to eligible associates of the Company and its subsidiaries. The Exercise price shall be ? 5 each. The Board of
Directors recommended the establishment of the plan on January 16, 2020 and the shareholders approved the recommendation
of Board of Directors on March 5, 2020 through a postal ballot. The RSUs will vest over a period of three years from the date of
grant. These options vest over a period ranging from one to three years from the date of grant, starting with 30% at the end of
first year, 50 % after two years, 20% at the end of third year.

Associate Stock Option Scheme 2021 (ASOP 2021):

The Company has instituted the ASOP 2021 scheme and also incorporated 'Cyient Associate Stock Option Scheme 2021 Trust’
(Trust) to grant options to eligible associates of the Company and its subsidiaries , whereunder shares were purchased from the
stock exchanges through the Trust. KP Corporate Solutions Limited, Corporate Trustee, has been appointed as trustee for this
Trust. Shareholders of the Company have approved the Scheme and the formation of Trust through postal ballot on February 23,
2021.

During the year ended March 31, 2022, Trust purchased 1,079,000 shares. The Exercise price shall be ? 5 each. The options will
vest over a period of 3 years equally from the grant date.

Associate Stock Option Plan - 2023 (ASOP 2023):

The Company has instituted ASOP 2023 in June 2023 and earmarked 1,200,000 equity shares of? 5 each, to grant options to
eligible associates of the Company and its subsidiaries under ASOP. Under ASOP 2023, options will be issued to employees at an
exercise price, which shall not be less than the market price on the date of grant. These options vest over a period ranging from
one to three years from the date of grant, starting with 33% at the end of first year, 33% at the end of second year and 34% at the
end of third year.

Nature of reserves:

(a) Capital redemption reserve

Represents the nominal value of equity shares bought back pursuant to Buyback in accordance with Section 69 of the
Companies Act, 2013.

(b) Securities premium

Amounts received on issue of shares in excess of the par value has been classified as securities premium. The reserve is
utilised in accordance with the provisions of the Companies Act, 2013.

(c) General reserve

This represents appropriation of profit by the Company. General reserve is appropriated for the creation of capital redemption
reserve upon Buyback of equity shares pursuant to section 69 of the Companies Act, 2013.

(d) Share based payments reserve

The Share based payments reserve is used to record the value of equity-settled share based payment transactions with
employees. The amounts recorded in this account are transferred to securities premium upon exercise of stock options by
employees.

(e) Cash flow hedge reserve

Represents effective portion of gains and loss on designated portion of hedging instruments in a cash flow hedge, net of
tax.

(f) Special Economic Zone ('SEZ') re-investment reserve

Represents the amount transferred to the SEZ Reinvestment Reserve in earlier years. The reserve was created out of the
profits of eligible SEZ units in accordance with the provisions of Section 10AA(1)(ii) of the Income-tax Act, 1961, and was
utilized by the Company for the acquisition of new plant and machinery for the purposes of its business, in compliance
with the requirements of Section 10AA(2) of the Income-tax Act, 1961. Accordingly, during the year, the balance has been
transferred to the General Reserve.

(g) Retained earnings

(i) Retained earnings comprises of prior years’ undistributed earnings after taxes along with current year profit, net of
dividends declared.

(ii) Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the year in which they occur, directly in other comprehensive income. These are presented within retained
earnings.

(h) Treasury shares

The Company has constituted a 'Cyient Associate Stock Option Plan 2021 Trust ('Trust’), to grant, offer and issue options
to the employees of the Company and its subsidiaries. During the year 2021-22, the Trust has acquired 1,079,000 equity
shares from the secondary market amounting to ? 950 based on the loan received from the Company. The Company has
treated the Trust as its direct extension, such that the assets and liabilities of the Trust are included in the standalone financial
statements and the shares acquired/held by the Trust are classified as "Treasury Shares".

The Trust has re-issued 235,320 shares during the year ended March 31, 2026 ( March 31, 2025: 90,716) under the ASOP 2021
scheme to the associates, shares held by Trust as at March 31, 2026: 651,350 (March 31, 2025: 886,670).

(i) Equity instruments through OCI

Represents the cumulative gains and loss arising from fair valuation of the equity instruments measured at the fair value through
OCI, net of amounts reclassified to retained earnings when the investments have been disposed off.

(j) Share application money pending for allotment

Represents amount received from associates on exercise of stock options, pending allotment.

(k) Capital Reserve

Represents the difference between the carrying amount and the consideration received upon reissuance of Treasury Shares.

Notes:

i. Defined Benefit Plans - Gratuity

In accordance with the 'Code on Social Security, 2020’ , the Company provides for gratuity, a defined retirement benefit
plan (the 'Gratuity Plan’) covering eligible employees. Liabilities with regard to such gratuity plan are determined by an
independent actuarial valuation and are charged to the Statement of Profit and Loss in the year determined. The gratuity
plan is administered by the Company’s own trust which has subscribed to the "Group Gratuity Scheme" of Life Insurance
Corporation of India.

The present value of the defined benefit obligation (DBO), and the related current service cost and past service cost, were
measured using the projected unit credit method.

The average rate of increase in compensation levels is determined by the Company, considering factors such as, the Company’s
past compensation revision trends and management’s estimate of future salary increases. The discount rate is based on the
prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligation.

Sensitivity analysis:

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation by the amounts shown below:

Note:

Effective November 21, 2025, the Government of India consolidated multiple existing labour laws into a unified framework
comprising four Labour Codes, collectively referred to as the "New Labour Codes". In accordance with Ind AS 19 - Employee
Benefits, the impact of such legislative changes on compensated absences is treated as a plan amendment, requiring immediate
recognition of the resultant past service cost of ? 50 in the statement of profit and loss. Refer note 28(1).

The accrual for unutilised leave is determined for the entire available leave balance standing to the credit of the employees at
year-end as per Company’s policy. The value of such leave balance eligible for carry forward, is determined by an independent
actuarial valuation and charged to statement of profit and loss in the year determined.

The average rate of increase in compensation levels is determined by the Company, considering factors such as, the Company’s
past compensation revision trends and management’s estimate of future salary increases. The discount rate is based on the
prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligation.

c) Long Service Leave - Australia:

The regulations of long service leave are applicable to the associates of the Company employed at its Australia Branch. The
accrual of long service leave is in addition to the compensated absences to which the associates are entitled to. These long
service leaves are dependent on the tenure of the employee with the same employer and are regulated by respective state laws.

During the year ended March 31, 2026, employees of the overseas branches were transferred to the Company’s subsidiary
entities.

The disclosures in respect of the amounts payable to such enterprises as at March 31, 2026 and March 31, 2025 has been made
in the 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.

Contract assets:

During the year ended March 31, 2026, ? 1,544 of contract assets as at March 31, 2025 has been reclassified to receivables on
completion of performance obligation. During the year ended March 31, 2025, ? 1,884 of contract assets as at March 31, 2024
has been reclassified to receivables on completion of performance obligation.

Contract liabilities:

a) Unearned revenue: During the year ended March 31, 2026 the Company has recognized revenue of ? 128 arising from
contract liabilities as at March 31, 2025. During the year ended March 31, 2025, the Company recognized revenue of? 184
arising from opening unearned revenue as at March 31, 2024.

b) Advance from customers: During the year ended March 31, 2026 the Company recognised revenue of ? 87 arising from
advance from customers as at March 31, 2025. During the year ended March 31, 2025 the Company recognised revenue of ?
4 arising from advance from customers as at March 31, 2024.

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. Consequently, disclosure related to transaction
price allocated to remaining performance obligation is not material.

#1.Contribution to provident fund and other funds
Provident fund:

The Company makes provident fund contributions which are defined contribution plans for qualifying employees. Under
the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. These
contributions are made to the Fund administered and managed by the Government of India. The Company’s monthly
contributions are charged to the statement of profit and loss in the year they are incurred. Total expense recognised during
the year aggregated ? 562 (March 31, 2025: ? 599).

Gratuity (funded):

Amount recognised in statement of profit and loss in respect of gratuity: ? 572 (March 31, 2025: ? 229). [refer note 12 (i)].
This includes past service cost recognised on account of plan amendment ? 325 (refer note 28).

National Pension Scheme:

Amount recognised in statement of profit and loss in respect of national pension scheme ? 49 (March 31, 2025: ? 35).
Superannuation fund - India:

The employees receive benefit under a Superannuation scheme which is a defined contribution scheme wherein the
employee has an option to choose the percentage of contribution between 5% to 15% of the basic salary of the covered
employee. These contributions are made to a fund administrated by Life Insurance Corporation of India. The Company’s
monthly contributions are charged to the statement of profit and loss in the year they are incurred. Total expense recognised
during the year aggregated ? 27 (March 31, 2025: ? 27).

Employees' State Insurance Scheme:

Amount recognised in the statement of profit and loss in respect of Company’s contribution to employees’ state insurance
scheme ? 5 (March 31, 2025: ? 8).

#2.Superannuation fund - Australia

The employees at the Australia branch of the Company are also covered under a superannuation scheme. The Company
contributes 9.5% of the basic salary of the employee. The Company’s monthly contributions are charged to the statement
of profit and loss in the year they are incurred. Total expense recognised during the year aggregated ? 2 (March 31, 2025: ? 4).

#3.The code on Social Security, 2020

The Code on Social Security, 2020 ("the Code") relating to employee benefits during employment and post-employment
benefits had received Presidential assent in September 2020. During the year ended March 31, 2026, the Government of
India notified the implementation of certain provisions of the Code.

The financial impact arising from the implementation of the Code has been assessed and recognised in the financial
statements for the year ended March 31, 2026. Refer Note 28 - Exceptional Items.

#1. Expenditure for Corporate Social Responsibility:

The Company contributes towards Corporate Social Responsibility (CSR) activities through Cyient Foundation and Cyient
Urban Micro Skill Centre Foundation (refer note 24). The Company has formed CSR committee as per Section 135 of the
Companies Act, 2013 to formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate
the activities to be undertaken by the company as specified by law. The areas for CSR activities are promoting education,
adoption of schools, facilitating skill development, medical and other social projects. Expenses incurred on CSR activities
through Cyient Foundation and contributions towards other charitable institutions are charged to the statement of profit
and loss under 'Other Expenses’: ? 106 (March 31, 2025 - ? 72).

Note:

During the year ended March 31, 2024, the Company had spent an excess amount of ? 30 over and above the requirement, which
has been set off against the obligation for the year ending March 31, 2025 in accordance with Rule 7(3) of the Companies(CSR
Policy) Rules, 2014.

Nature of CSR activities:

Quality of Education, IT / Digital Literacy, Skill Development and Employment, Women Empowerment and Sustainable Livelihood,
Community Development and Environmental Protection, Preventive Healthcare and Innovation and Entrepreneurship.

(i) The Company disputed various demands raised by the service tax authorities for the financial years 2006-07 to 2009-10,
2013-14 to 2017-18 (till June 2017) (March 31,2025: 2006-07 to 2009-10, 2013-14 to 2017-18 (till June 2017)). The Company
filed appeals, which are pending with the appropriate authorities. The aggregate amount of disputed tax not provided for is
? 548 (March 31, 2025: ? 548). The Company is confident that these appeals will be decided in its favour. The above does not
include show cause notices received by the Company.

(ii) The Company is contesting certain pending service tax refunds amounting to ? 29 (March 31, 2025: ? 29) at various appellate
authorities. The Company is confident that these appeals will be decided in its favour.

(iii) The Company disputed demands raised by the GST authority for the financial years 2017-18 to 2022-23 (March 31, 2025:
2017-18 to 2022-23) The company is yet to file an appeal with the appropriate authorities. The aggregate amount of disputed
tax not provided is ? 152 (March 31, 2025: ? 107). The Company is confident that these appeals will be decided in its favour.
The above does not include show-cause notices received by the Company.

(iv) During the financial year 2015-16, the Government of India notified an amendment to the Payment of Bonus Act, 1961
whereby the applicable slabs as well as coverage limit was enhanced. The said amendment was made effective April 1, 2014.
The Company is contesting the retrospective applicability of the amendment for the financial year 2014-15 in the High Court
of Judicature at Hyderabad for the states of Telangana and Andhra Pradesh. The aggregate amount of liability pertaining to
the financial year 2014-15, not provided for is ? 92 (March 31, 2025: ? 92).

(v) The aggregate amount of disputed income tax not provided for is ? nil (March 31, 2025: ? 3 pertaining to year 2017-18).

(C) The Company has certain outstanding commitments as at March 31, 2026 and March 31, 2025. Further, the Company has
certain commitments to bankers relating to receivable factoring arrangements entered with them in respect of receivables from
few customers. These factoring arrangements are without recourse to the Company and in the normal course of business. The
Company is confident of meeting these commitments arising from such arrangements.

#1. Cyient Australia Pty Limited holds 86% of shareholding in Cyient KK and Cyient Limited holds the remaining 14%
shareholding.

#2. The Board of Directors of the Parent at their meeting held on October 14, 2021 have approved the closure of its wholly
owned subsidiary, Cyient Israel India Limited ('CIIL') in line with its strategy of simplification of legal entity structure. CIIL did
not have any operations and the financial results of CIIL are not material to the Company. This has no impact on business as
the same is serviced by the existing legal entities.

#3. On July 04, 2025, Cyient Semiconductors Private Limited incorporated a wholly-owned subsidiary in Singapore namely
Cyient Semiconductors Singapore Pte Ltd.

#4. Cyient Semiconductors NV (formerly Cyient NV, with effect from February 3, 2025), a subsidiary of Cyient Europe Limited,
and Cyient Semiconductors GmbH (formerly Celfinet Germany - Telecommunications Consulting Services GmbH with
effect from July 4, 2025), a subsidiary of Celfinet - Consultoria em Telecomunicacoes, S.A., have been acquired by Cyient
Semiconductors Europe Private Limited as part of the Group’s semiconductor business restructuring.

#5. On February 17, 2026, Cyient Inc incorporated a wholly-owned subsidiary in United States of America namely CDS Lavender
Holdings Inc.

#6. On November 27, 2025, Cyient Semiconductors Singapore Pte Limited incorporated a wholly-owned subsidiary in United
States of America namely Cyient Cayman Limited.

#7. On December 01, 2025, Cyient Cayman Limited incorporated a wholly-owned subsidiary in United States of America
namely Cyient Cayman Merger Sub Limited.

#8. On November 24, 2025, Cyient Singapore Private Limited incorporated a wholly-owned subsidiary in Austria namely Cyient
Austria GMBH.

#9. Under corporate insolvency resolution process from August 22, 2025 in accordance with provisions of the Insolvency and
Bankruptcy Code, 2016.

#10. During the year, the Company’s holding decreased from 52.17% to 52.12% pursuant to allotment of shares under the
Restricted Stock Unit Plan (RSU).

#11. On October 10, 2018, the Company incorporated Cyient Urban Micro Skill Centre Foundation ('Cyient Urban’), a wholly
owned Section 8 Company under the Companies Act, 2013, to further the CSR activities of the Company. The objective is
not to obtain economic benefits through the activities of Cyient Urban and accordingly it has been excluded for the purpose
of preparation of consolidated financial statements.

#12. IG Partners South Africa Pty Limited wholly owned subsidiary of Integrated Global Partners Pty Limited has been liquidated
with effect from August 01, 2025.

#13. On February 27, 2024, Cyient Limited incorporated a wholly-owned subsidiary in India namely Cyient Global Captive
Solutions Private Limited.

#14. On August 23, 2024, Cyient Limited incorporated a wholly-owned subsidiary in India namely Cyient Semiconductors Private
Limited.

#15. On October 16, 2024, Cyient Semiconductors Private Limited incorporated a wholly-owned subsidiary in United States of
America namely Cyient Semiconductors Inc.,

#16. On January 15, 2025, Cyient Semiconductors Private Limited incorporated a wholly-owned subsidiary in United Kingdom
namely Cyient Semiconductors Europe Private Limited.

#17. On September 23, 2024, Cyient Limited incorporated a wholly-owned subsidiary in India namely Cyient Project Management
Consultancy - L.L.C - S.P.C.

#18. On November 29, 2024, Cyient Semiconductors Inc., acquired 27.62% stake in Azimuth AI Inc., and became its
Associate.

#19. On November 15, 2024, Cyient Project Management LLC (CPM LLC) entered into Share Purchase Agreement ('SPA') with
Abu Dhabi & Gulf Computers L.L.C (ADGCL) and acquired 100% stake. Consequent to this acquisition, ADGCL became a
subsidiary of CPM LLC with effect from December 24, 2024.

#20. On October 04, 2024, Cyient DLM Inc., acquired 100% stake in Altek Electronics Inc., USA ('Altek') and became its wholly
owned subsidiary.

26. Financial Instruments
26.1 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other
equity reserves. The primary objective of the Company’s capital management is to maintain a strong capital base to ensure
sustained growth in business and to maximize the shareholders value.

The Company manages its capital to ensure that it maximises the return to stakeholders through the optimisation of the capital
structure. The Company monitors the return on capital as well as the level of dividends on its equity shares. The Company is
predominantly equity financed which is evident from the capital structure. Further the Company has always been positive on its
net cash position with cash and bank balances along with other treasury investments.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2026.

The management assessed that fair value of cash & cash equivalents and Bank balances other than cash and cash equivalents,
trade receivables, other financial assets, loans, trade payables, lease liabilities and other financial liabilities approximate their
carrying amounts largely due to the short-term maturities of these instruments, and hence these are carried at amortised cost.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

Investment in unquoted equity shares are measured at fair value through initial designation in accordance with Ind-AS 109.
Investments in mutual funds and derivative assets/ (liabilities) are mandatorily measured at fair value.

The following methods and assumptions were used to estimate the fair values:

#1. The fair values of the unquoted equity shares have been estimated using a Discounted Cash Flow model / comparable
transactions. The valuation requires management to make certain assumptions about the model inputs, including forecast
cash flows, earnings growth, discount rate, and probabilities of the various estimates within the range used in management's
estimate of fair value for these unquoted equity.

#2. The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. Foreign exchange forward contracts 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, yield curves of the respective currencies, etc. As at March 31, 2026, the marked-to-market value
of derivative asset or liability positions is net of a credit valuation adjustment attributable to derivative counterparty default
risk. The changes in counterparty credit risk had insignificant impact on the hedge effectiveness assessment for derivatives
designated in hedge relationships.

26.4 Financial risk management
Objectives and policies
Financial risk factors

The Company’s principal financial liabilities, other than derivatives, comprise of lease obligation, 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 security deposits, investments, trade and other receivables and cash and cash equivalents that is derived directly from its
operations. The Company also holds FVTOCI investments and enters into derivative transactions for hedging purpose.

The Company is exposed to market risk, liquidity risk, credit risk and other price risks. The Company risk management is carried out
by the management which helps in identification, measurement, mitigation and reporting all risks associated with the activities
of the Company. These risks are identified on a continuous basis and assessed for the impact on the financial performance. All
derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience
and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes will be undertaken. The Board
of Directors reviews policies for managing each of these risks, which are summarised below.

A. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and equity price risk. Financial instruments
affected by market risk include borrowings, deposits, investments, and derivative financial instruments.

The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse
effects on its financial performance. The primary market risk to the Company is foreign exchange risk and interest rate 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 and the concentration of risk from the top few
customers.

i. Foreign currency risk

The Company operates internationally and a major portion of the business is dominated in foreign currency predominantly US
Dollar, Pound Sterling, Australian Dollar and Euro currencies. Consequently the Company is exposed to foreign exchange risk
through its services and purchases / import of services from overseas suppliers in various foreign currencies. The Company
holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange
rates on foreign currency exposures. The exchange rate between the rupee and foreign currencies has changed substantially in
recent years and may fluctuate substantially in the future. Consequently, the results of the Company’s operations are affected as
the rupee appreciates/ depreciates against these currencies.

The Company monitors and manages its financial risks by analysing its foreign exchange exposures.

The Company, in accordance with its Board approved risk management policies and procedures, enters into foreign exchange
forward contracts to manage its exposure in foreign exchange rates.

The Company has applied the hedge accounting principles set out in Indian Accounting Standard - 109 "Financial Instruments"
(Ind AS - 109) in respect of such derivative contracts, designated in a hedging relationship, used to hedge its risks associated
with foreign currency fluctuations relating to certain highly probable forecast transactions. Accordingly, in respect of all such
outstanding contracts as at March 31, 2026 that were designated as effective hedges of highly probable forecast transactions,
(loss)/ gain, net of tax aggregating ? (340) (net of taxes) (March 31, 2025: ? (2) (net of taxes) have been recognised under the cash
flow hedge reserve.

Sensitivity analysis:

In respect of the Company’s forward exchange contracts, a 5% increase/decrease in the respective exchange rates of each of
the currencies underlying such contracts would have resulted in:

1. an approximately ? (392)/ 392 (decrease)/increase in the Company’s other comprehensive income as at March 31, 2026.

2. an approximately ? (413)/ 413 (decrease)/increase in the Company’s other comprehensive income as at March 31, 2025.

Unhedged foreign currency exposure

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the volatility of the Company’s net
monetary assets (viz. which includes cash and cash equivalents, trade receivables, other financial assets, trade payables, other
financial liabilities), which are denominated in various foreign currencies (USD, Euro, UK pound sterling, Aus $, SGD, CAD, Yen
etc.)

Sensitivity analysis:

For the year ended March 31, 2026 and March 31, 2025 , every 5% increase / decrease of the respective foreign currencies
compared to functional currency of the Company would impact profit before tax by ? 115 / ( ? 115) and ? 559 / ( ? 559) respectively.

B. Credit risk

Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to
a financial loss. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including
outstanding accounts receivable. Credit risk is managed through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The
Company establishes an allowance for expected credit losses and impairment that represents its estimate of incurred losses in
respect of trade receivables and contract assets.

Financial guarantee contracts

The Company is exposed to credit risk concerning financial guarantees provided to the subsidiary's banks. The Company’s
exposure is limited to the maximum amount it might need to pay if the guarantee is invoked. The Company charges the subsidiary
a fee at fair value for these guarantees. As of the balance sheet date Company does not believe there are any counterparty non¬
performing risks (refer note 24).

Trade and other receivables:

The following table gives details in respect of percentage of total receivables and contract assets from top customer and top five
customers (excluding related parties):

Investments:

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.

C. Liquidity risk

The Company's principal sources of liquidity are cash and bank balances, investments in mutual funds and cash generated from
operations. The Company believes that working capital is sufficient to meet its current requirements. Accordingly, no liquidity
risk is perceived.

As of March 31, 2026 and March 31, 2025, the Company had unutilized credit limits from banks of ? 2,996 and ? 2,854,
respectively.

As of March 31, 2026, the Company had working capital of ? 14,484 (March 31, 2025: ? 19,332) including cash and bank balances
of ? 9,410 (March 31, 2025: ? 6,528)

The Company has not defaulted in any financial loan covenants.

Note: The Company’s obligation towards payment of lease liabilities has been included in note 3B.

# Based on the maximum amount that can be called for under the financial guarantee contracts.

D. Other price risks

The Company is exposed to equity price risks arising from equity investments. Company’s equity investments are held for

strategic rather than trading purposes.

27. Segment information

Segment information has been presented in the Consolidated Financial Statements in accordance with Ind AS 108 notified under

the Companies (Indian Accounting Standards) Rules, 2015.

28. Exceptional item

1 Effective November 21, 2025, the Government of India consolidated multiple existing labour laws into a unified framework
comprising four Labour Codes, collectively referred to as the "New Labour Codes". In accordance with Ind AS 19 - Employee
Benefits, the impact of such legislative changes is treated as a plan amendment, requiring immediate recognition of the
resultant past service cost in the statement of profit and loss. The Company has assessed the impact of the changes in line
with the Labour Codes, draft rules and FAQs. Based on this assessment, the Company have recognised a one-time increase
in employee benefit provisions amounting to ? 375, which has been presented as an "exceptional item" in the statement of
profit and loss for the year ended March 31, 2026. The Company continues to monitor the finalisation of Central and State
rules, as well as Government clarifications on other aspects of the New Labour Codes and will incorporate appropriate
accounting treatment based on these developments as required.

2 During the year ended March 31, 2026, the Company received an insurance claim of? 207 towards the settlement of a civil
class action antitrust litigation, which was concluded pursuant to Court approval. The proceeds have been classified under
exceptional items.

3 The Company has incurred an amount of ? 712 towards professional, legal and due diligence expenses in relation to a proposed
acquisition transaction. The proposed transaction did not proceed and these costs have been expensed in the statement of
profit and loss for year ended March 31, 2026. Considering the materiality of the costs involved, these expenses have been
presented as part of 'Exceptional items’.

4 Pursuant to the strategic integration of Cyient Singapore Private Limited (wholly owned subsidiary or 'CSPL’) operations into
other wholly owned subsidiaries, updated forecasts and long-term outlook of CSPL’s business, the Company has recognised
a one-time provision for impairment of investment of ? 2,429 for the year ended March 31, 2026. Considering the materiality
of the costs involved, these expenses have been presented as part of 'Exceptional items’.

5 During the prior year ended March 31, 2025, the Company has recorded a gain of ? 7,831 as an exceptional item on account
of sale of 14.5% stake in Cyient DLM Limited. Pursuant to the sale, the Company’s shareholding in Cyient DLM Limited is
currently at 52.17% of the total issued and paid-up equity share capital. Tax expense for the year ended March 31, 2025
includes an amount of ? 640 towards capital gains on this transaction.

29. The details of loans and advances to subsidiaries are given below (refer note 24)

33. Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.

(ii) The Company does not have any transactions with companies which are struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

(vi) Other than disclosed below, the Company has 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, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company has 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):

(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 does not have any such 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).

34. Research & Development:

Revenue expenditure pertaining to research and development charged to the Statement of Profit and Loss aggregated to ?
305 (March 31, 2025: ? 396).

35. Semiconductors business Carve-Out:

During the year ended March 31, 2026, the Company, as part of the carve-out of its global semiconductor business into its
wholly owned subsidiary, Cyient Semiconductors Private Limited ("CSPL"), including its step-down subsidiaries, has carved
out its semiconductor business through the transfer of below identified net assets, employees and contracts from Cyient
Limited to CSPL for a consideration of ?629. The impact of this transaction is summarised as below:

36. Buy-back proposal:

The Board of Directors has approved the buyback proposal, subject to the approval of shareholders through postal ballot,
for purchase by the Company of up to 6,400,000 equity shares of ? 5 each (representing 5.76% of the total paid-up equity
share capital) from the eligible equity shareholders of the Company other than promoters, promoter group and persons who
are in control of the Company on a proportionate basis, by way of a tender offer, at a price of ? 1,125 per equity share, for an
aggregate amount not exceeding ? 7,200, in accordance with the applicable provisions of the Securities and Exchange Board
of India (Buy-back of Securities) Regulations, 2018, the Companies Act, 2013, and the rules made thereunder: