(p) Provisions and contingencies

A provision is recognised when an enterprise has a present obligation (legal or
constructive) as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a reliable estimate can
be made of the amount of obligation. Provisions are determined based on best
estimate required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current best
estimates. 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.

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 recognised because it is not probable that an outflow of resources will
be required to settle the obligation. The Company does not recognise a contingent
liability but discloses its existence in the financial statements.

(q) Earnings per share

Basic Earnings Per Share is calculated by dividing the net profit or loss for the
period attributable to equity shareholders by the weighted average number of
equity shares outstanding during the period.

The weighted average number of equity shares outstanding during the period and
for all periods presented is adjusted for events, such as rights issue, bonus shares,
treasury shares, other than the conversion of potential equity 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 and the
weighted average number of shares outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.

(r) Share based payment (Employee Stock Option Scheme)

Stock options are granted to the employees under the stock option scheme, the
costs of stock options granted to the employees (equity-settled awards) of the
Company are measured at the fair value of the equity instruments granted. For
each stock option, the measurement of fair value is performed on the grant date.
The grant date is the date on which the Company and the employees agree to the
stock option scheme. The fair value so determined is revised only if the stock
option scheme is modified in a manner that is beneficial to the employees.

That cost is recognised, together with a corresponding increase in share-based
payment (SBP) reserves/stock options outstanding account 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 Statement of Profit and
Loss expense or credit for a period represents the movement in cumulative
expense recognised as at the beginning and end of that period and is recognised
in employee benefits expense.

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

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

irrespective of whether the market or non-vesting condition is satisfied, provided
that all other performance and/or service conditions are satisfied.

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

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

If the options vests in instalments (i.e. the options vest pro rata over the service
period), then each instalment is treated as a separate share option grant because
each instalment has a different vesting period.

(s) Treasury shares

The Company has an Associates Benefit Trust, having Company's shares, for
providing benefits to its employees. The Company treats Trust as its extension and
shares held by Trust are treated as treasury shares. Own equity instruments
(treasury shares) are recognised at cost and deducted from equity. No gain or loss
is recognised in profit or loss on the purchase, sale, issue or cancellation of the
Company's own equity instruments. Any difference between the carrying amount
and the consideration, on sale, is recognised in equity.

(t) Financial instruments

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

A. Financial assets

i. Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.

ii. Subsequent measurement

For purposes of subsequent measurement, financial assets are classified into three
categories:

a. Debt instruments at amortised cost.

b. Debt instrument at fair value through profit or loss (FVTPL).

c. Equity instruments at fair value through profit or loss (FVTPL).

Debt instruments at amortised cost

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

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

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

After initial measurement, such financial assets are subsequently measured at
amortised cost using the effective interest rate (EIR) method. Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included in
finance income in the profit or loss. The losses arising from impairment are
recognised in the profit or loss.

Debt instrument at FVTPL

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

In addition, the Company may elect to classify a debt instrument, which otherwise
meets amortised cost or FVTOCI criteria, as at FVTPL. However, such election is
allowed only if doing so reduces or eliminates a measurement or recognition
inconsistency (referred to as 'accounting mismatch').

Debt instruments included within the FVTPL category are measured at fair value
with all changes recognised in the profit or loss.

Equity instruments at FVTPL

All equity investments in scope of Ind-AS 109 are measured at fair value. Equity
instruments which are held for trading are classified as at FVTPL. For all other
equity instruments, the Company decides to classify the same either as at FVTOCI
or FVTPL. The Company makes such election on an instrument-by-instrument
basis. The classification is made on initial recognition and is irrevocable.

Equity instruments included within the FVTPL category are measured at fair value
with all changes recognised in the profit or loss.

iii. De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a
Company of similar financial assets) is primarily when:

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

• The Company has transferred its rights to receive cash flows from the asset
or has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a 'pass-through' arrangement; and either
(a) the Company has transferred substantially all the risks and rewards of the
asset, or (b) the Company has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred control of the asset.

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

Continuing involvement that takes the form of a guarantee over the transferred
asset is measured at the lower of the original carrying amount of the asset and the
maximum amount of consideration that the Company could be required to repay.

iv. Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL)
model for measurement and recognition of impairment loss on the following
financial assets and credit risk exposure:

^• Financial assets that are debt instruments, and are measured at amortised
cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

The Company follows 'simplified approach' for recognition of impairment loss
allowance on Trade receivables and Revenues accrued and not billed.

The application of simplified approach does not require the Company to track
changes in credit risk. Rather, it recognises impairment loss allowance based on
lifetime ECLs at each reporting date, right from its initial recognition.

Lifetime ECL are the expected credit losses resulting from all possible default
events over the expected life of a financial instrument. ECL is the difference
between all contractual cash flows that are due to the Company in accordance with
the contract and all the cash flows that the entity expects to receive, discounted
at the original EIR. When estimating the cash flows, an entity is required to
consider:

• All contractual terms of the financial instrument (including prepayment,
extension) over the expected life of the financial instrument. However, in rare
cases when the expected life of the financial instrument cannot be estimated
reliably, then the entity is required to use the remaining contractual term of
the financial instrument; and

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

As a practical expedient, the Group uses a provision matrix to determine
impairment loss allowance on portfolio of its trade receivables. The provision
matrix is based on its historically observed default rates over the expected life of
the trade receivables and is adjusted for forward-looking estimates. At every
reporting date, the historical observed default rates are updated and changes in
the forward-looking estimates are analysed.

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

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

For assessing increase in credit risk and impairment loss, the Company combines
financial instruments on the basis of shared credit risk characteristics with the
objective of facilitating an analysis that is designed to enable significant increases
in credit risk to be identified on a timely basis.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on
initial recognition. After initial recognition, no reclassification is made for financial
assets which are equity instruments and financial liabilities. For financial assets
which are debt instruments, a reclassification is made only if there is a change
in the business model for managing those assets. Changes to the business model
are expected to be infrequent. The Company's senior management determines
change in the business model as a result of external or internal changes which
are significant to the Company's operations. Such changes are evident to external
parties. A change in the business model occurs when the Company either begins
or ceases to perform an activity that is significant to its operations. If the Company
reclassifies financial assets, it applies the reclassification prospectively from
the reclassification date which is the first day of the immediately next reporting
period following the change in business model. The Company does not restate any
previously recognised gains, losses (including impairment gains or losses) or
interest.

B. Financial liabilities

i. Initial recognition and measurement

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

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

ii. Subsequent measurement

The measurement of financial liabilities depends on their classification, as
described below:

After initial recognition, trade and other payables are subsequently measured at
amortised cost using the EIR method. Gains and losses are recognised in profit or
loss when the liabilities are derecognised as well as through the EIR amortisation
process.

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

De-recognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced
by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is
treated as the de-recognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised in the
statement of profit or loss.

C. Derivative financial instruments and hedge accounting

The Company uses forward contracts to hedge its risks associated with foreign
currency fluctuations relating to firm commitment or highly probable forecast
transactions. The Company uses hedging instruments that are governed by the risk
management policy which is approved by the board of directors. The policy
provides written principles on the use of such derivative financial instruments. The
Company designates such instruments as hedges and performs assessment of
hedge effectiveness based on consideration of terms of the hedging instrument,
the economic relationship between the hedging instrument and hedged item and
the objective of the hedging. The Company does not use derivative financial
instruments for speculative purposes.

Derivatives are initially recognised at fair value on the date a derivative contract is
entered into and are subsequently re-measured to their fair value at the end of
each reporting period. The accounting for subsequent changes in fair value
depends on whether the derivative is designated as a hedging instrument, and if
so, the nature of item being hedged and type of hedge relationship designated.

For the purpose of hedge accounting, hedges are classified as Cash flow hedges
when hedging the exposure to variability in cash flows that is either attributable to
a particular risk associated with a recognised asset or liability or a highly probable
forecast transaction or the foreign currency risk in an unrecognised firm
commitment.

If the hedging instrument expires or is sold, terminated or exercised without
replacement or rollover (as part of the hedging strategy), or if its designation
as a hedge is revoked, or when the hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss previously recognised in OCI remains
separately in equity until the forecast transaction occurs or the foreign currency
firm commitment is met.

At the inception of a hedge relationship, the Company formally designates and
documents the hedge relationship to which the Company wishes to apply hedge

accounting and the risk management objective and strategy for undertaking the
hedge. The documentation includes the Company's risk management objective
and strategy for undertaking hedge, the hedging/ economic relationship, the
hedged item or transaction, the nature of the risk being hedged, hedge ratio and
how the entity will assess the effectiveness of changes in the hedging instrument's
fair value in offsetting the exposure to changes in the hedged item's fair value or
cash flows attributable to the hedged risk.

Such hedges are expected to be highly effective in achieving offsetting changes in
fair value or cash flows and are assessed on an ongoing basis to determine that
they have been highly effective throughout the financial reporting periods for
which they were designated.

Cash flow hedges

The Company designates forward contracts as hedging instruments to mitigate
foreign currency risk exposure in relation to forecast transactions and firm
commitments.

When a derivative is designated as a cash flow hedge instrument, the effective
portion of changes in the fair value of the derivative is recognised in other
comprehensive income (OCI) and accumulated in the cash flow hedge reserve. Any
ineffective portion of changes in the fair value of the derivative is recognised
immediately in the net profit in the Statement of Profit and Loss. If the hedging
instrument no longer meets the criteria for hedge accounting, then hedge
accounting is discontinued prospectively. If the hedging instrument expires or is
sold, terminated or exercised, the cumulative gain or loss on the hedging
instrument recognised in cash flow hedge reserve till the period the hedge was
effective remains in cash flow hedge reserve until the forecasted transaction
occurs or the foreign currency firm commitment is met. The cumulative gain or loss
previously recognised in the cash flow hedge reserve is transferred to the net profit
in the Statement of Profit and Loss upon the occurrence of the related forecasted
transaction. If the forecasted transaction is no longer expected to occur, then the
amount accumulated in cash flow hedge reserve is reclassified to net profit in the
Statement of Profit and Loss.

Amounts recognised as OCI are transferred to profit or loss when the hedged
transaction affects profit or loss, such as when the hedged financial income or
financial expense is recognised or when a forecast sale occurs. When the hedged
item is the cost of a non-financial asset or non-financial liability, the amounts
recognised as OCI are transferred to the initial carrying amount of the non-financial
asset or liability.

Offsetting of financial instruments

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

(u) Segment reporting

Ind AS 108, Operating segments, establishes standards for the way that public
business enterprises report information about operating segments and related
disclosures about products and services, geographic areas, and major customers.
The business of the Company falls under a single primary segment i.e. 'Software
Product License & related services' based on “Management approach" as defined
in Ind AS 108 - Operating Segments. The Chief Operating Decision Maker monitors
the operating results of its business as a single primary segment for the purpose of
making decisions about resource allocation and performance assessment.

(v) Changes in accounting policies and disclosures

The Ministry of corporate Affairs ("MCA") notified amendments on 7 May 2025

and 13 August 2025 under the Companies (Indian Accounting Standards)
Amendment Rules, 2025 and the Companies (Indian Accounting Standards) Second
Amendment Rules, 2025, respectively, which is effective from annual reporting
periods beginning on or after 1 April 2025.

(a) Amendment to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangement:

The amendments to Ind AS 7 'Statement of Cash Flows' and Ind AS 107 'Financial
Instruments:

Disclosures' clarify the characteristics of supplier finance arrangements and require
additional disclosures for such arrangements. The disclosure requirements in the
amendments are intended to assist users of financial statements in understanding
the effects of supplier finance arrangements on an entity's liabilities, cash flows
and exposure to liquidity risk.

The Company does not have any supplier finance arrangements during the
reporting period.

(b) Amendment to Ind AS 1 - Classification of liabilities as current or non-current
and non-current liabilities with covenants:

The amendment specifies the requirements for classifying liabilities as current or
non-current in the balance sheet, and clarifies the following:

a) An entity's right to defer settlement of a liability for at least twelve months
after the reporting period must have substance and must exist at the end of
the reporting period. The classification of a liability as current or non-current
is unaffected by the likelihood that the entity will exercise its right to defer
settlement.

b) If an entity's right to defer settlement of a liability is subject to covenants,
such covenants affect whether that right exists at the end of the reporting
period only if the entity is required to comply with the covenant on or before
the end of the reporting period.

c) In case of a liability that can be settled, at the option of the counterparty, by
the transfer of the entity's own equity instruments, such settlement terms do
not affect the classification of the liability as current or non-current only if the
option is classified as an equity instrument.

These amendments have no effect on the measurement of any items in the
standalone financial statements of the Company. The Company did not make
retrospective adjustments as a result of adopting the amendments to Ind AS 1.

c) Amendment to Ind AS 12 - Pillar-Two Tax Reforms

The Company is not within the scope of the OECD Pillar Two Model Rules, as Pillar
Two legislation has not yet been enacted in any of the jurisdiction in which the
Company operates. The amendments provide a temporary mandatory relief from
deferred tax accounting for top-up tax and disclose that they have applied the
relief. This relief is immediate and applies retrospectively

d) Amendment to Ind AS 21-Lack of exchangeability

The Amendments introduces requirement to assess when a currency is
exchangeable into another currency and when it is not. The amendment requires
an entity to estimate the spot exchange rate when it concludes that a currency is
not exchangeable into another currency. These amendments had no effect on the
standalone financial statements of the Company.

The below amendments are notified but not yet effective

Amendment to Ind AS 1 'Presentation of Financial Statements'- Classification of
Liabilities as current or non-current and non-current liabilities with covenants:

The amendment includes specific provisions that will take effect for reporting
periods beginning on or after 1 April 2026, retrospectively, as outlined below:

a) Breach of material covenant for long-term loan arrangement on or before end
of reporting period with effect that liability becomes payable on demand as
on reporting date, then it shall be classified as current liability, if lender
agreed after reporting period and before approval of financial statements to
not demand payment as a consequence of breach.

b) Classify as non-current liability, if lender agreed by end of reporting period to
provide grace period ending at least 12 months after reporting period within
which entity can rectify the breach provided lender does not demand
immediate repayment.

c) Disclose information about the timing of settlement to understand the impact
of the liability on the financial statements.

The Company does not expect this amendment to have an impact on its operations
or standalone financial statements.

Performance obligations and remaining performance obligations

Information on Company's performance obligations and remaining performance
obligations is summarised in accounting policies (also Refer note 3(k)).

The aggregate value of performance obligations that are completely or partially
unsatisfied as at March 31, 2026, other than those meeting the exclusion criteria
mentioned in Note 3(k) is Rs.1,241.80 million (March 31, 2025 - Rs.1,596.03 million).
Out of this, the Company expects to recognise revenue of around 93% (March 31, 2025
- 98%) within the next one year and the remaining thereafter. This includes contracts
that can be terminated for convenience without a substantive penalty however, based
on current assessment, the occurrence of the same is expected to be remote.

One customer accounted for more than 10% of the revenue amounting to Rs. 950.45
million for the year ended March 31, 2026 (No customer accounted for more than 10%
of the revenue for the year ended March 31, 2025).

27 EARNINGS PER SHARE

Basic EPS amounts are calculated by dividing the profit for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding
during the year.

Options granted to employees under employees option plan has been considered to
be potential equity shares. They are included in determination of diluted EPS to extent
of which they are dilutive. Details relating to ESOP are set out in Note 30
Diluted EPS amounts are calculated by dividing the profit attributable to equity
shareholders by the weighted average number of equity shares outstanding during the
year plus the weighted average number of equity shares that would be issued on
conversion of all the dilutive potential equity shares into equity shares.

The following reflects the income and share data used in the basic and diluted EPS
computations:

28 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company's standalone financial statements requires
management to make judgements, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures. 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.

a. Judgements

In the process of applying the Company's accounting policies, management has not
made any judgements, which have significant effect on the amounts recognised in the
standalone financial Statements.

b. 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.

1) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds
its recoverable amount, which is the higher of its fair value less costs of disposal and
its value in use. The fair value less costs of disposal calculation is based on projected
sales transactions, conducted at arm's length, for similar assets or observable market
prices less incremental costs for disposing of the asset. The value in use calculation is
based on a DCF model. The cash flows are derived from the budget for the next five
years and do not include restructuring activities that the Company is not yet committed
to or significant future investments that will enhance the asset's performance of the
CGU being tested. The recoverable amount is sensitive to the discount rate used for
the DCF model as well as the expected future cash-inflows and the growth rate used
for extrapolation purposes.

The Company capitalises intangible asset under development for a project in
accordance with the accounting policy. Initial capitalisation of costs is based on
management's judgement that technological and economic feasibility is confirmed,
usually when a product development project has reached a defined milestone
according to an established project management model. In determining the amounts
to be capitalised, management makes assumptions regarding the expected future cash
generation of the project, discount rates to be applied and the expected period of
benefits.

2) Share-based payments

The Company initially measures the cost of Equity-settled transactions with employees
using a Black Scholes model to determine the fair value of the liability incurred.
Estimating fair value for share-based payment transactions requires determination of
the most appropriate valuation model, which is dependent on the terms and
conditions of the grant. This estimate also requires determination of the most
appropriate inputs to the valuation model including the expected life of the share
option, volatility and dividend yield and making assumptions about them. The
assumptions and models used for estimating fair value for share-based payment
transactions are disclosed in Note 30.

3) Revenue from contract with customers

The Company is required to make an assessment for each new software license
contract as to whether the underlying software requires significant modification or
customisation by the Company in order to meet the customer's requirements. If
significant modification or customisation is required, then the license fee is recognised
based on percentage-of-completion. Majority of such modifications or customisations
have not been deemed significant in current or prior periods.

In respect of service revenue, the management exercises judgment in determining the
percentage of completion utilising output measures, such as the achievement of any
project milestones stipulated in the contract, or internal quality milestones to assess
proportional performance.

The Company also exercises judgment in assessing uncertainties surrounding the
probability of collection when payment terms are linked to service implementation
milestones or other various contingencies exist. These assessments are made at the
outset of the contract.

4) Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and
the present value of the gratuity obligation are determined using actuarial valuation.
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 plans operated in India, the management considers the
interest rates of government bonds in currencies consistent with the currencies of the
post-employment benefit obligation. The underlying bonds are further reviewed for
quality.

The mortality rate is based on publicly available mortality tables for the specific
countries. 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 the respective countries.

Further details about gratuity obligations and sensitivity analysis are given in Note 29.

5) Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable
that taxable profit will be available in the future against which the losses 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.

6) Provision for allowance of credit Loss

The Company has adopted and laid out its Expected Credit Loss Model (ECL) for
determination of the Provision for credit loss allowance, which are primarily in the
nature of Trade receivables and Revenue accrued and not billed. In determining its ECL,
assumptions and estimates are made in relation to nature of customers (Private Banks,
Public Sector Banks, Non-Banking Companies etc.), billing and collection terms as per
the contract, average ageing of the customer balance and the past trends of collection.

7) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance
Sheet cannot be measured based on quoted prices in active markets, their fair value is
measured using valuation techniques including the DCF model. The inputs to these
models are taken from observable markets where possible, but where this is not
feasible, a degree of judgement is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk, credit risk and volatility. Changes
in assumptions about these factors could affect the reported fair value of financial
instruments. Also Refer to Note 34 and Note 38 for further disclosures.

8) Leases

Determining the lease term of contracts with renewal and termination options -
Company as lessee:

The Company determines the lease term as the non-cancellable term of the lease,
together with any periods covered by an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered by an option to terminate the lease, if
it is reasonably certain not to be exercised.

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.

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.

Refer note 37 for information on potential future rental payments relating to periods
following the exercise date of extension and termination options that are not included
in the lease term.

29 GRATUITY

The Company has a defined benefit gratuity plan for employees in India. The Gratuity
plan provides for a lump sum payment to vested employees at retirement, death while
in employment or on termination of employment. Vesting occurs upon completion of
contractual period of continuous years of service as defined in the Code on Social
Security, 2020. A trust by name “Intellect Design Group Gratuity Trust" has been
constituted by Intellect Design Arena Limited to administer the gratuity fund. Trustees
administer contributions made to the trust.

The details of the defined benefit gratuity plan and the amounts recognised in
the standalone financial statements as at March 31, 2026 and March 31, 2025 are as
follows:

30 SHARE BASED PAYMENTS (EMPLOYEE STOCK OPTION SCHEME)

The Scheme of Arrangement (Demerger) entered into by the Company with Polaris
Consulting & Services Limited (Demerged Company) with effect from April 1, 2014
provided for the following in respect of Employee Stock Option Schemes;

(i) The Company had adopted three stock option plans (ASOP 2003, ASOP 2004 and
ASOP 2011) from Polaris Consulting & Services Limited, as provided in the Scheme of
Arrangement.

(ii) Every employee holding an option in the Demerged Company under the stock option
plans of the Demerged Company, shall be issued one option in the stock option plans
formed by the Resulting Company upon the Scheme coming into effect.

(iii) The exercise price of the options in the Resulting Company shall be adjusted to 28%
of the exercise price of the options granted under the Schemes of the Demerged
Company.

Apart from the schemes provided under the Demerger arrangement the Company had
following Employee stock option schemes (i) Intellect Stock Option Plan 2015 (ISOP
2015), Intellect Stock Option Plan 2016 (ISOP 2016) and Intellect Stock Option Plan

(ISOP 2018) of its own.

These plans provide for the granting of stock options to employees including directors
of the Company (not being promoter directors and not holding more than 10% of the
equity shares of the Company). The objectives of these plans include attracting and
retaining the best personnel, providing for additional performance incentives and
promoting the success of the Company by providing employees the opportunity to
acquire equity shares.

During the year ended March 31,2018, the Company had offered rights issue to its
shareholders. Consequent to this corporate action, the market price of the shares
reduced from Rs. 130.60 to Rs. 118.20. The ESOP scheme of the Company specifically
requires the Compensation/Nomination and Remuneration Committee to make a fair
and reasonable adjustment to the option terms in case of corporate action.
Considering the above, the Nomination and Remuneration Committee of Intellect on
November 09, 2017 revised/ reduced the exercise prices of outstanding options (both
vested and unvested) as on the record date i.e. July 18, 2017 by 15 %. The fair values
before and after the modification remained unchanged and there was no incremental
impact in the Statement of Profit and Loss. The option plans are summarised below:

Share options modification

The Nomination and remuneration committee (NRCC) at its meeting held on June 9,
2020 and June 17, 2020 decided to modify the options provided to the employees due
to significant reduction in current market price of equity shares of the Company. As
per decision of NRCC, the employees were given an option to surrender their existing
options and avail of new options under the new scheme in lieu of surrendered option.
As a result, associates holding 60,74,840 options under various schemes ASOP 2011,
ISOP 2015, ISOP 2016 and ISOP 2018 voluntarily surrendered their options on May 29,
2020, June 9, 2020, June 17, 2020 and August 7, 2020 and were issued new options in
the ratio of 2:1 under Intellect Incentive Plan Scheme 2018 (Restrictive Stock Options)
at an exercise price of Rs 5. These modifications were approved by the NRCC.

The Shareholders of the Company in the Extraordinary General Meeting held on
January 29, 2015 approved the Intellect Stock Option Plan 2015. The 2015 plan
provides for issuance of 60,00,000 options convertible into equivalent number of
equity shares of Rs. 5 each to employees but shall exclude independent directors, an
employee belonging to the promoter group or a director holding more than 10% of the
share capital. The tenure of the Scheme is for 12 years from the date of coming into
effect and shall be extended by a period of not more than 5 years as the Board of
Directors may decide. The Nomination Remuneration and Compensation Committee
and the Board had decided to amend the Scheme to include Restricted Stock Units
(RSU's) to facilitate grant of fresh RSU's in lieu of options voluntarily surrendered as
well as for future grants. The Company in its shareholder's meeting held on August 21,
2020 have approved the modification to the scheme, to include Restrictive stock
options in addition to existing options part of scheme. The plan shall be administered
under 5 different schemes based on the following terms:

Grant price of options (RSUs) under Swarnam 601 shall be Rs.5- per option
The market price, in accordance with the Securities and Exchange Board of India (Share
based employee benefits) Regulations 2014 as amended from time to time, shall be
the latest available closing price prior to the date of the meeting of the Board of
Directors in which options are granted, on the stock exchange on which the shares of
the Company are listed. If the shares are listed on more than one stock exchange then
the stock exchange where there is highest trading volume on the said date shall be
considered. The options shall be valued using the fair value model.

The option vests over a period of 5 years from the date of grant in a graded manner,
subject to fulfillment of vesting conditions as follows:

The Shareholders of the Company in the Annual General Meeting held on August 23,
2018 approved Intellect Incentive Plan Scheme 2018. The 2018 plan provides for
issuance of 62,50,000 options through Restrictive Stock Units (RSU's) 2018 and ISOP
2018 in total convertible into equivalent number of equity shares of Rs. 5 each to
employees but shall exclude independent directors, an employee belonging to the
promoter group or a director holding more than 10% of the share capital. The tenure
of the scheme for RSU 2018 it shall continue to be in force until (i) its termination by
the Company as per provisions of Applicable Laws, or (ii) the date on which all of the
Restricted Stock Units available for issuance under the RSU 2018 / Stock Options 2018
have been issued and exercised, whichever is earlier and for ISOP 2018 is 12 years from
the date of the Scheme coming to force. The scheme shall be extended by a period of
not more than 5 years as the Board of Directors may decide. Nomination and
remuneration committee (NRCC) in its meeting held on June 15, 2020 had decided to
make the total options fungible between RSU and ISOP 2018. A summary of the status
of the options granted under Intellect Incentive Plan scheme 2018 as at March 31, 2026
is presented below:

The Company is contesting the demands raised by the respective tax authorities, and
the management, based on internal assessment and per its tax advisors, believe that
its position will likely be upheld in the appellate process and ultimate outcome of these
proceedings will not have a material adverse effect on the Company's financial position
and results of operations.

33 FAIR VALUE

Set out below, is a comparison by class of the carrying amounts and fair value of the
Company's financial instruments, other than those with carrying amounts that are
reasonable approximations of fair values. The management assessed that the fair
values of cash and cash equivalents, bank balances including deposits, trade
receivables, loans and deposits, other financial assets, trade payables and other
financial liabilities would approximate their carrying amounts due to their nature.

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. The method and assumptions used to
estimate the fair values is that the fair values of financial instruments traded in active
markets are based on quoted market prices at the balance sheet date.

Terms and conditions of transactions with related parties

The sales to related parties are made on terms equivalent to those that prevail in arm's
length transactions. Outstanding balances at the year-end are unsecured and interest
free and settlement occurs in cash. There have been no guarantees provided or
received for any related party receivables or payables.

32 CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

(i) Capital commitment:

Contracts yet to be executed on capital account (net of advances) Rs. 121.44 million
(March 31, 2025 - Rs.2.95 million).

(ii) Other commitment:

Bank guarantees in the nature of financial guarantees (guarantees being fully backed
by margin deposits) as at March 31, 2026 amounting to Rs. 129.27 million (March 31,
2025 - Rs 47.81 million).

(iii) Claims against the Company, not acknowledged as debt includes:

Future cash outflows in respect of matters considered disputed are determinable only
on receipt of judgments / decisions pending at various forums/authorities. The
management does not expect these claims to succeed and accordingly, no provision
for contingent liability has been recognised in the financial statements.

The Company's pending litigations comprise proceedings pending with tax authorities.
The Company has reviewed all the proceedings and has adequately provided for where
provisions are required and disclosed contingent liabilities where applicable, in its
financial statements. The Company does not expect the outcome of these proceedings
to have a material adverse effect on the financial statements.

35 DERIVATIVE INSTRUMENTS (Hedging of foreign currency exposures)

The Company uses foreign currency forward contracts to hedge its risks associated
with foreign currency fluctuations relating to forecasted transactions. The Company
does not use forward contracts for speculative purposes. The following are the
outstanding Forward Exchange Contracts entered into by the Company as at March 31,
2026 and March 31, 2025 including forward cover taken for forecasted revenue
receivable transactions:

36 RESEARCH AND DEVELOPMENT EXPENDITURE

The Company continues its significant investments in Research and Development efforts
towards research, technology, engineering and new product development. The
Company follows a policy of capitalising new product development, which meets the
criteria of Ind AS 38 Intangible assets and has accordingly recognised such cost as
Internally generated Intangible asset under 'Intangible assets under development'
(Refer note 4(b)) and Intangible asset (Refer note 4(d)). During current year ended
March 31, 2026 the Company has incurred a revenue expenditure towards research of
Rs.1,563.22 million (March 31, 2025 - Rs.1,740.87 million) which has been debited to
the Income statement.

Details of expenses under the respective Head of accounts which are recognised as
Intangible under development :

37 LEASES

The Company has lease contracts for Land and Building used for the purpose of office
space at different location. Leases of such assets generally have lease terms between
1 and 5 years. The Company's obligations under its leases are secured by the lessor's
title to the leased assets. Generally, the Company is restricted from assigning and
subleasing the leased assets. There are several lease contracts that include extension
and termination options and variable lease payments, which are further discussed
below.

Before the adoption of Ind AS 116, the Company classified each of its leases (as lessee)
at the inception date as either a finance lease or an operating lease.

Upon adoption of Ind AS 116, the Company applied a single recognition and
measurement approach for all leases except for short-term leases on Plant and
machinery and leases of low-value assets on Office equipments. The standard provides
specific transition requirements and practical expedients, which have been applied by
the Company.

Set out below are the carrying amounts of Right-of-use assets recognised and the
movements during the year:

1.(b)(i) Foreign currency sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in
exchange rates, with all other variables held constant. The impact on the Company's
profit before tax is due to changes in the fair value of monetary assets and liabilities
including non-designated foreign currency derivatives. The Company's exposure to
foreign currency changes for all other currencies other than those stated below is not
material. The sensitivity analysis is unrepresentative of the inherent foreign exchange
risk because the exposure at the end of the reporting period does not reflect the
exposure during the year.

2.(a) Trade receivables and Revenue accrued and not billed

Customer credit risk is managed by each business unit subject to the Company's
established policy, procedures and control relating to customer credit risk
management. Credit quality of a customer is assessed based on an extensive credit
rating scorecard and individual credit limits are defined in accordance with this
assessment. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for
major clients. In addition, many minor receivables are grouped into homogenous
groups and assessed for impairment collectively. The calculation is determined on
expected credit loss method basis the historical data. The maximum exposure to credit
risk at the reporting date is the carrying value of each class of financial assets disclosed
in Note 10(b) and Note 10(g). The Company does not hold collateral as security. The
Company evaluates the concentration of risk with respect to trade receivables as low,
as its customers (which are in the nature of reputed banking and financial institutions)
operate in several jurisdictions in largely independent markets.

Exposure to credit risk

The allowance for ECL for the year ended March 31, 2026 and March 31, 2025:

2. (b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the
Company's treasury department in accordance with the Company's policy.
Investments of surplus funds are made only with approved counterparties and within
credit limits assigned to each counterparty. Counterparty credit limits are reviewed by
the Board of Directors of the Company on an annual basis which are monitored and
updated, if necessary, on a regular basis by the management. The limits are set to
minimise the concentration of risks and therefore mitigate financial loss through
counterparty's potential failure to make payments.

The Company's maximum exposure to credit risk for the components of the Balance
Sheet as at March 31, 2026 and March 31, 2025 is the carrying amount in Notes 7 and
Notes 10.

3. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and
future cash and collateral obligations without incurring unacceptable losses. The
Company's objective is to, at all times maintain optimum levels of liquidity to meet its
cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. The Company has obtained fund and
non-fund based working capital lines from various banks. The Company invests its
surplus funds in bank fixed deposit and other money market/ liquid schemes of mutual
funds, which carry low or acceptable level of mark to market risks.

39 CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity
capital, share premium and all other equity reserves attributable to the equity holders.
The primary objective of the Company's capital management is to maximise the
shareholders' value. The Company determines the amount of capital required based
on annual operating plans and long-term product and other strategic investment plans.
The funding requirements are met through equity and borrowings (including lease
liabilities).

The Company manages its capital structure and adjusts in the light of changes in
economic conditions and the requirements of the financial covenants or lease
arrangements. 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 capital using a gearing ratio, which is net debt divided
by total capital plus net debt. The Company includes within net debt only lease
liabilities less cash and cash equivalents. No changes were made in the objectives,
policies or processes for managing capital during the year ended March 31, 2026 and
March 31, 2025

43 TRANSFER PRICING ARRANGEMENTS WITH SUBSIDIARIES

The Company has international operations and in its normal course of business with its various subsidiaries, it is involved i n the business of software sale and implementation of
its products across various countries. The Company reviews these arrangements on a periodic basis to reflect the current business models and in the current financial year has
implemented a transfer pricing model to reflect its business environment. The Company has a policy of maintaining documents as prescribed by the Income-tax Act, 1961 to prove
that these international transactions are at arm's length and believes that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount
of tax expense and that of provision for taxation.

44 SEGMENT REPORTING

The Chief Operating Decision Maker monitors the operating results of its business as a single primary segment “Software Product Licence and related services" for the purpose of
making decisions about resource allocation and performance assessment. The business of the Company falls under a single primary segment i.e. 'Software Product License &
related services' for the purpose of Ind AS 108.

Analysis by Geographical segment

Segment revenue is based on the location of the customers where software licenses are sold, and related services are rendered. The following provides an analysis of the revenue
from operations by geographical markets:

45 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 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 advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (I ntermediaries) with the understanding that
the Intermediary shall:

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

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

vi. 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) that the Company shall:

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

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

vii. The Company did not undertake 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.

viii. The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium
thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

ix. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on
number of Layers) Rules, 2017 (as amended).

x. The Company has not entered into any Scheme of arrangement in terms of sections 230 to 237 of the Companies Act, 2013, which is required to be accounted for i n the
books of account for the year ended March 31, 2026 and March 31, 2025.

xi. No significant events has not been observed which may require adjustment to Financial Statement.

46 STATUTORY IMPACT OF NEW LABOUR CODES

On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020,
and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central
Rules and FAQs to enable assessment of the financial impact due to regulatory changes. The Company assessed and disclosed the incremental impact of these changes based on
the best available information, consistent with the guidance provided by the Institute of Chartered Accountants of India. Considering the materiality and the regulatory-driven,
non-recurring nature of this impact, the Company presented the incremental impact on gratuity expense as “Statutory impact of new Labour Codes" under “Exceptional items" in
the standalone statement of profit and loss for the year ended March 31, 2026 amounting to Rs. 303.36 million. The Company continues to monitor the finalisation of Central /
State Rules and clarifications from the Government on other aspects of the Labour Code and will provide appropriate accounting effect based on such developments as needed.

47 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for
recognition and / or reporting of any of these events and transactions in the financial statements. As on May 08, 202 6, there are no subsequent events to be recognized or
reported.