2.8 Provisions and Contingent liabilities

Provision

A provision is recognized if, as a result of
a past event, the Company has a present
legal or constructive obligation that can
be estimated reliably, and it is probable
that an outflow of economic benefits will
be required to settle the obligation. If the
effect of the time value of money is material,
provisions are determined by discounting
the expected future cash flows at a pre-tax
rate that reflects current market assessments
of the time value of money and the risks
specific to the liability. Where discounting
is used, the increase in the provision due
to the passage of time is recognized as a
finance cost.

The amount recognized as a provision is the
best estimate of the consideration required
to settle the present obligation at reporting
date, taking into account the risks and
uncertainties surrounding the obligation.
When some or all of the economic benefits
required to settle a provision are expected
to be recovered from a third party, the
receivable is recognized as an asset if it is
virtually certain that reimbursement will be
received and the amount of the receivable
can be measured reliably.

Contingent liabilities

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. A contingent liability

also arises in extremely rare cases, where
there is a liability that cannot be recognised
because it cannot be measured reliably. The
Company does not recognize a contingent
liability but discloses its existence in the
financial statements unless the probability of
outflow of resources is remote.

Provisions, contingent liabilities and
commitments are reviewed at each balance
sheet date.

2.9 Revenue recognition

The Company derives revenue primarily
from research solutions, education solutions
and related services.

Revenue is recognised upon transfer of
control of promised products or services
to customers in an amount that reflects the
consideration which the Company expects
to receive in exchange for those products or
services.

• Revenue related to fixed-price contracts
is recognised using percentage-of-
completion method ('POC method')
of accounting with efforts incurred in
determining the degree of completion of
the performance obligation.

• Revenue from time and material and job
contracts is recognised on output basis
measured by units delivered, efforts
expended, number of transactions
processed, etc.

• Revenue related to fixed-price
maintenance is recognized based on time
elapsed mode and revenue is straight
lined over the period of performance.

Revenue is measured based on the
transaction price, which is the consideration,
adjusted for volume discounts, service-
level credits, performance bonuses, price
concessions and incentives, if any, as
specified in the contract with the customer.

Revenue also excludes taxes collected from
customers.

Revenue from subsidiaries is recognised
based on transaction price which is at arm's
length.

Contract assets are recognised when there
is excess of revenue earned over billings on
contracts. Contract assets are classified as
unbilled receivables (only act of invoicing is
pending) when there is unconditional right
to receive cash, and only passage of time is
required, as per contractual terms.

Income received in advance comprising of
unearned and deferred revenue ('contract
liability') is recognised when there is a
billing in excess of revenues.

The billing schedules agreed with
customers include periodic performance-
based payments and/or milestone-based
progress payments. Invoices are payable
within contractually agreed credit period.

In accordance with Ind AS 37, the Company
recognises an onerous contract provision
when the unavoidable costs of meeting the
obligations under a contract exceed the
economic benefits to be received.

Contracts are subject to modification to
account for changes in contract specification
and requirements. The Company reviews
the modification to contract in conjunction
with the original contract, basis which the
transaction price could be allocated to a
new performance obligation, or transaction
price of an existing obligation could
undergo a change. In the event transaction
price is revised for existing obligation, a
cumulative adjustment is accounted for.

The Company disaggregates revenue from
contracts with customers by geography and
nature of services.

Use of significant judgements in revenue

recognition:

• The Company's contracts with customers
could include promises to transfer multiple
products and services to a customer.
The Company assesses the products/
services promised in a contract and
identifies distinct performance obligations
in the contract. Identification of distinct
performance obligation involves
judgement to determine the deliverables
and the ability of the customer to benefit
independently from such deliverables.

• Judgement is also required to determine
the transaction price for the contract. The
transaction price could be either a fixed
amount of customer consideration or
variable consideration with elements such
as volume discounts, service-level credits,
performance bonuses, price concessions
and incentives. The transaction price is
also adjusted for the effects of the time
value of money if the contract includes
a significant financing component. Any
consideration payable to the customer is
adjusted to the transaction price, unless
it is a payment for a distinct product or
service from the customer. The estimated
amount of variable consideration is
adjusted in the transaction price only to
the extent that it is highly probable that
a significant reversal in the amount of
cumulative revenue recognised will not
occur and is reassessed at the end of each
reporting period. The Company allocates
the elements of variable considerations
to all the performance obligations of
the contract unless there is observable
evidence that they pertain to one or more
distinct performance obligations.

• The Company uses judgement to determine
an appropriate standalone selling price for
a performance obligation. The Company
allocates the transaction price to each

performance obligation on the basis of
the relative standalone selling price of
each distinct product or service promised
in the contract. Where standalone selling
price is not observable, the Company uses
the expected cost plus margin approach
to allocate the transaction price to each
distinct performance obligation.

• The Company exercises judgement in
determining whether the performance
obligation is satisfied at a point in time
or over a period of time. The Company
considers indicators such as how customer
consumes benefits as services are rendered
or who controls the asset as it is being
created or existence of enforceable right
to payment for performance to date and
alternate use of such product or service,
transfer of significant risks and rewards to
the customer, acceptance of delivery by
the customer, etc.

• Revenue for fixed-price contract is
recognised using percentage-of-
completion method. The Company uses
judgement to estimate the efforts incurred
which is used to determine the degree of
completion of the performance obligation.

2.10 Recognition of dividend income, rental
income and interest income

Dividend income is accounted for when the
right to receive it is established.

Interest income is recognised on a time
proportion basis taking into account the
amount outstanding and the interest rate
applicable.

Rental income from operating leases is
recognised on time proportionate basis over
the period of rent.

2.11 Government Grants

Government grants that are awarded as
incentives with no ongoing performance
obligations are recognised when there is
reasonable assurance that:

a) the Company will comply with the
conditions attached to them; and

b) the grant will be received.

These are recorded at fair value where
applicable. Government grants are
recognised in the statement of profit and
loss, either on a systematic basis when
the Company recognises, as expenses,
the related costs that the grants are
intended to compensate or, immediately
if the costs have already been incurred.

Government grants related to income
are presented as an offset against the
related expenditure.

2.12 Employee benefits

a) Short-term employee benefits:

All employee benefits falling due within
twelve months of the end of the period in
which the employees render the related
services are classified as short-term
employee benefits, which include benefits
like salaries, wages, short-term compensated
absences, performance incentives, etc.,
measured on an undiscounted basis and
are recognised as expenses in the period
in which the employees render the related
services and measured accordingly.

b) Post-employment benefits:

Post-employment benefit plans are classified
into defined benefits plans and defined
contribution plans as under:

• Gratuity: The Company has an
obligation towards gratuity, a defined
benefit retirement plan covering eligible
employees. The plan provides for a lump
sum payment to vested employees at
retirement, death while in employment

or on termination of employment of
an amount based on the respective
employee's salary and the tenure of
employment, which is payable upon
completion of period as per the Payment of
Gratuity Act, 1972. The liability in respect
of Gratuity is recognised in the books of
accounts based on actuarial valuation by
an independent actuary. The estimates of
future salary increases take into account
the inflation, seniority, promotion and
other relevant factors. The gratuity liability
for the employees of the Company is
funded with an insurance company in the
form of a qualifying insurance policy. The
gratuity benefit obligation recognised in
the balance sheet represents the present
value of the obligations as reduced by the
fair value of assets held by the Insurance
Company. Actuarial gain/losses are
recognised immediately in the other
comprehensive income. Further details
about gratuity obligations are given in
note 32.

• Superannuation: Certain employees of
the Company are also participants in the
superannuation plan ('the Plan'), a defined
contribution plan. Contribution made by
the Company to the plan is charged to the
Statement of Profit and Loss.

• Provident fund: For employees in India,
provident fund is deposited with Regional
Provident Fund Commissioner. This is
treated as defined contribution plan.
Company's contribution to the provident
fund is charged to the Statement of Profit
and Loss.

• Employee State Insurance: For

employees in India, Employee State
Insurance (ESI) is deposited with Employee
State Insurance Corporation. This is treated
as defined contribution plan. Company's
contribution to the ESI is charged to the
Statement of Profit and Loss.

• Social security plans: For employees
outside India, Employees contributions
payable to the social security plan,
which is a defined contribution scheme,
is charged to the statement of profit and
loss in the period in which the employee
renders services.

c) Other long-term employee benefits:
Compensated absences:

As per the Company's policy, eligible leaves
can be accumulated by the employees and
carried forward to future periods to either
be utilized during the service, or encashed.
Encashment can be made on early
retirement, on separation, at resignation and
upon death of the employee. Accumulated
compensated absences are treated as other
long-term employee benefits. The Company's
liability in respect of compensated absences
is recognised in the books of account based
on actuarial valuation using projected unit
credit method as at Balance Sheet date by
an independent actuary. Actuarial losses/
gains are recognised in the Statement of
Profit and Loss in the year in which they
arise.

d) Termination benefits:

Termination benefits are recognised as an
expense when, as a result of a past event,
the Company has a present obligation that
can be estimated reliably, and it is probable
that an outflow of economic benefits will be
required to settle the obligation.

Actuarial valuation

The liability in respect of all defined benefit
plans is accrued in the books of account on
the basis of actuarial valuation carried out by
an independent actuary using the Projected
Unit Credit Method, which recognizes each
year of service as giving rise to additional
unit of employee benefit entitlement and
measure each unit separately to build
up the final obligation. The obligation is
measured at the present value of estimated
future cash flows. The discount rates used for
determining the present value of obligation
under defined benefit plans, is based on the
market yields on Government securities as
at the Balance Sheet date, having maturity
periods approximating to the terms of
related obligations. Remeasurement gains
and losses in respect of all defined benefit
plans arising from experience adjustments
and changes in actuarial assumptions are
recognised in the period in which they
occur, directly in other comprehensive
income. They are included in retained
earnings in the Statement of Changes in
Equity and in the Balance Sheet. Changes
in the present value of the defined benefit
obligation resulting from plan amendments
or curtailments are recognised immediately
in profit or loss as past service cost.

Gains or losses on the curtailment or
settlement of any defined benefit plan
are recognised when the curtailment or
settlement occurs. Any differential between
the plan assets (for a funded defined benefit
plan) and the defined benefit obligation as
per actuarial valuation is recognised as a
liability if it is a deficit or as an asset if it is a
surplus (to the extent of the lower of present
value of any economic benefits available
in the form of refunds from the plan or
reduction in future contribution to the plan).

2.13 Share-based payments

Employee stock option plan (ESOP): The
fair value of options granted under the
'MPS Limited- Employee Stock Options
Scheme 2023' 'ESOS 2023' or 'Scheme')
is recognised as an employee benefits
expense with a corresponding increase in
equity. The total amount to be expensed is
determined by reference to the fair value

of the options granted: - including any
market performance conditions (e.g., the
entity's share price) - excluding the impact
of any service and non-market performance
vesting conditions (e.g. profitability, sales
growth targets and remaining an employee
of the entity over a specified time period),
and - including the impact of any non¬
vesting conditions (e.g. the requirement for
employees to save or holdings shares for a
specific period of time). The total expense
is recognised over the vesting period, which
is the period over which all of the specified
vesting conditions are to be satisfied. At
the end of each period, the entity revises
its estimates of the number of options that
are expected to vest based on the non¬
market vesting and service conditions. It
recognises the impact of the revision to
original estimates, if any, in profit or loss,
with a corresponding adjustment to equity.

2.14 Treasury shares

The Company has created an ESOP Trust
(MPS Employee Welfare Trust 'ESOP Trust')
which acts as a vehicle to execute its ESOP
Scheme. The ESOP Trust is considered as an
extension of the Company and the shares
held by the ESOP Trust are treated as
Treasury shares. The ESOP Trust purchases
Company's share from secondary market
for issuance to the employees on exercise
of the granted stock options. These shares
are recognized at cost and is disclosed
separately as reduction from Other Equity
as treasury shares. No gain or loss is
recognized in the Statement of Profit
and Loss on purchase, sale, issuance, or
cancellation of treasury shares.

2.15 Tax Expense

Income tax expense comprises current and
deferred tax. It is recognised in the Statement
of Profit and Loss except to the extent that it

relates to a business combination, or items
recognised directly in equity or in OCI.

a) Current tax:

Current tax comprises the expected tax
payable or receivable on the taxable
income or loss for the year. The amount
of current tax payable or receivable is the
best estimate of the tax amount expected
to be paid or received after considering
uncertainty related to income taxes, if any.
It is measured using tax rates enacted or
substantively enacted at the reporting date.

Current tax assets and liabilities are offset
only if there is a legally enforceable right
to set off the recognised amounts, and it is
intended to realize the asset and settle the
liability on a net basis or simultaneously.
Any adjustment to the tax payable or
receivable in respect of previous year is
shown separately. While determining the
tax provisions, the Company assesses
whether each uncertain tax position is to be
considered separately or together with one
or more uncertain tax positions depending
upon the nature and circumstances of each
uncertain tax position.

b) Deferred tax:

Deferred tax is recognised in respect of
temporary differences between the carrying
amounts of assets and liabilities for financial
reporting purposes and the amounts used
for taxation purposes. Deferred tax is not
recognised for:

• temporary differences arising on the
initial recognition of assets or liabilities
in a transaction that is not a business
combination and that affects neither
accounting nor taxable profit or loss at the
time of the transaction;

• temporary differences related to freehold
land and investments in subsidiaries, to the
extent that the Company is able to control
the timing of the reversal of the temporary
differences and it is probable that they will
not reverse in the foreseeable future; and

• taxable temporary differences arising on
the initial recognition of goodwill.

Deferred tax assets are recognised for
unused tax losses, unused tax credits and
deductible temporary differences to the
extent that it is probable that future taxable
profits will be available against which they
can be used. Unrecognised deferred tax
assets are reassessed at each reporting
date and recognised to the extent that it
has become probable that future taxable
profits will be available against which they
can be used. Deferred tax is measured at
the tax rates that are expected to apply to
the period when the asset is realised or the
liability is settled, based on the laws that
have been enacted or substantively enacted
by the reporting date. The measurement of
deferred tax reflects the tax consequences
that would follow from the manner in which
the Company expects, at the reporting date,
to recover or settle the carrying amount of
its assets and liabilities.

Deferred tax assets and liabilities are offset
only if there is a legally enforceable right
to set off the recognised amounts, and it is
intended to realize the asset and settle the
liability on a net basis or simultaneously.

L16 Dividend Distributions

The Company recognizes a liability to make
payment of dividend to owners of equity
when the distribution is authorized and is no
longer at the discretion of the Company. A

corresponding amount is recognised directly
in equity.

2.17 Foreign currency transactions
and translations

a) Functional and presentation currency

The financial statements are presented
in Indian Rupees (INR), the functional
currency of the Company. Items included
in the financial statements of the Company
are recorded using the currency of the
primary economic environment in which
the Company operates (the 'functional
currency'). All amounts have been rounded-
off to the nearest lakhs, unless otherwise
stated.

b) Transactions and balances

Foreign currency transactions are translated
into the functional currency using exchange
rates at the date of the transaction or at
rates that closely approximate the rate at
the date of the transaction. At the end of
each reporting period, monetary items
denominated in foreign currencies are
retranslated at the rates prevailing at that
date.

Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the dates of the initial transactions. Non¬
monetary items measured at fair value in
a foreign currency are translated using the
exchange rates at the date when the fair
value is determined.

Foreign exchange gains and losses from
settlement of these transactions and from
translation of monetary assets and liabilities
at the reporting date exchange rates are
recognised in the Statement of Profit and
Loss.

c) Foreign currency translation reserve

The exchange differences arising from the
translation of financial statements of foreign
branches with functional currency other
than the Indian Rupee is recognized in other
comprehensive income and is presented
within equity.

2.18 Leases

The Company's lease asset classes primarily
consist of leases for offices, lease lines, office
equipments. The Company, at the inception
of a contract, assesses whether the contract
is a lease or not a lease. A contract is, or
contains, a lease if the contract conveys the
right to control the use of an identified asset
for a time in exchange for a consideration.
This policy has been applied to contracts
existing and entered into on or after 1 April
2019.

The Company recognises a right-of-use
asset and a lease liability at the lease
commencement date. The right-of-use
asset is initially measured at cost, which
comprises the initial amount of the lease
liability adjusted for any lease payments
made at or before the commencement
date, plus any initial direct costs incurred
and an estimate of costs to dismantle and
remove the underlying asset or to restore
the underlying asset or the site on which it is
located, less any lease incentives received.

The right-of-use asset is subsequently
depreciated using the straight-line method
from the commencement date to the end of
the lease term.

The lease liability is initially measured at the
present value of the lease payments that
are not paid at the commencement date,
discounted using the Company's incremental
borrowing rate. It is remeasured when there
is a change in future lease payments arising
from a change in an index or rate, if there

is a change in the Company's estimate of
the amount expected to be payable under a
residual value guarantee, or if the Company
changes its assessment of whether it
will exercise a purchase, extension or
termination option. When the lease liability
is remeasured in this way, a corresponding
adjustment is made to the carrying amount
of the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.

The Company has elected not to recognise
right-of-use assets and lease liabilities for
short-term leases that have a lease term of
12 months or less and leases of low-value
assets. The Company recognises the lease
payments associated with these leases as
an expense over the lease term.

2.19 Earnings per share

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

For the purpose of calculating diluted
earnings/(loss) per share, the net profit
or loss for the year 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, except
where the result would be anti-dilutive.

2.20 Cash Flow Statement

Cash flows are reported using the indirect
method, whereby profit for the period is
adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals
of past or future operating cash receipts or
payments and item of income or expenses
associated with investing or financing
cash flows. The cash flows from operating,
investing and financing activities of the
Company are segregated.

2.21 Measurement of fair values

A number of the accounting policies and
disclosures require measurement of fair
values, for both financial and non-financial
assets and liabilities.

Fair values are categorised into different
levels in a fair value hierarchy based on the
inputs used in the valuation techniques as
follows:

Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

Level 2: inputs other than quoted prices
included in Level 1 that are observable
for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from
prices).

Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).

The Company has an established control
framework with respect to the measurement
of fair values. This includes a finance team
that has overall responsibility for overseeing
all significant fair value measurements,
including Level 3 fair values. The finance team
regularly reviews significant unobservable

inputs and valuation adjustments. If third
party information is used to measure fair
values, then the finance team assesses the
evidence obtained from the third parties to
support the conclusion that these valuations
meet the requirements of Ind AS, including
the level in the fair value hierarchy in which
the valuations should be classified.

When measuring the fair value of an asset
or a liability, the Company uses observable
market data as far as possible. If the inputs
used to measure the fair value of an asset
or a liability fall into different levels of the
fair value hierarchy, then the fair value
measurement is categorised in its entirety in
the same level of the fair value hierarchy as
the lowest level input that is significant to the
entire measurement.

The Company recognises transfers between
levels of the fair value hierarchy at the end of
the reporting period during which the change
has occurred. Further information about the
assumptions made in measuring fair values
used in preparing these financial statements
is included in the respective notes.

2.22 Recent Pronouncement

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

a) MCA has notified below amendments which
were effective from 01 April 2025.

1. Amendments to Ind AS 21 - Lack of exchange
ability MCA via notification dated 07 May
2025, announced amendments to Ind AS 21
"The Effects of Changes in Foreign Exchange
Rates", to specify how an entity should assess
whether a currency is exchangeable and
how it should determine a spot exchange
rate when exchangeability is lacking. The
amendments also require disclosure of

information that enables users of its financial
statements to understand how the currency
not being exchangeable into the other
currency affects, or is expected to affect, the
financial performance, financial position and
cash flows. The amendments do not have a
material impact on the Financial Statements.
Company's standalone financial statements.

2. Amendments to Ind AS 1 - Classification
of Liabilities as Current or Non-current
and Non-current Liabilities with Covenants
MCA via notification dated 13 August
2025 announced amendments to Ind AS 1
'Presentation of Financial Statements' which
elaborate on guidance set out in Ind AS 1 by:

• clarifying that the right to defer settlement
of a liability for at least 12 months after
the reporting period must have substance
and must exist at the end of the reporting
period;

• stating that management's expectations
around whether they will defer settlement
or not do not impact the classification of
the liability;

• i ncluding requirements for liabilities that
can be settled using an entity's own
instruments; and

• stating that at the reporting date, the
entity does not consider covenants that
will need to be complied with in the future
when considering the classification of the
debt as current or non-current.

In addition, an entity is required to disclose
when a liability arising from a loan agreement
is classified as non-current and the entity's
right to defer settlement is contingent on
compliance with future covenants within
twelve months. The amendments do not
have a material impact on the Company's
standalone financial statements.

3. Supplier Finance Arrangements - Amendments
to Ind AS 7 and Ind AS 107 MCA via
notification dated 13 August 2025 announced
amendments to Ind AS 7 - 'Statement of Cash

Flows' and Ind AS 107 'Financial Instruments:
Disclosures' which introduced disclosure
requirements with the objective to enable users
of financial statements to assess how supplier
finance arrangements affect an entity's
liabilities, cash flows and exposure to liquidity
risk. The amendments do not have a material
impact on the Company's standalone financial
statements.

4. International Tax Reform - Pillar Two Model
Rules - Amendments to Ind AS 12 MCA via
notification dated 13 August 2025 announced
amendments to Ind AS 12 'Income Taxes'
which includes:

• a temporary exception to the recognition
and disclosure of deferred taxes arising
from the implementation of the Pillar Two
model rules; and

• additional disclosure requirements
targeted at a reporting entity's exposure
to income taxes in periods in which the
Pillar Two Model legislation is enacted or
substantively enacted but not yet in effect.
The amendments do not have a material
impact on the Company's standalone
financial statements.

b) Standards issued/amendments to existing
standards issued but are yet not effective.

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

This amendment also includes specific
provisions that will take effect for reporting
periods beginning on or after 01 April
2026, as outlined below.

Under the existing Ind AS 1, where there is
a breach of a material provision of a long¬
term loan arrangement on or before the end
of the reporting period with the effect that
the liability becomes payable on demand
on the reporting date, the entity does
not classify the liability as current, if the
lender agreed, after the reporting period
and before the approval of the financial
statements for issue, not to demand payment
as a consequence of the breach.

However, the amended requirements
stipulate that entities will no longer be
permitted to consider lender waivers
that are granted after the reporting date
but before the financial statements are
approved for the purpose of classification
of loans. This amendment is required to be
applied retrospectively in accordance with
Ind AS 8. This amendment is not expected to
have a significant impact on the Company's
standalone financial statements.

For the purpose of the impairment testing, goodwill is allocated to the Cash Generating Units (CGU) which represents
the recoverable amount of the above CGU based on its value in use. The value in use of CGU is determined to be
higher than the carrying amount post the sensitivity analysis towards change in the key assumptions including the
cash flow projections consequent to the change in the estimated future economic conditions. No probable scenario
was identified where the CGU recoverable amount would fall below their carrying amount.

i. The anticipated annual revenue growth and margin included in the cash flow projections are based on past
experience, actual operating results and the 5 year business plan in all periods presented.

ii. The terminal growth rate 2% to 3% for the year ended 31 March 2026 (31 March 2025: 2% to 3%) representing
management view on the future long-term growth rate.

iii. Discount rate of 18% to 19% for the year ended 31 March 2026 (31 March 2025: 19% to 20%) was applied
in determining the recoverable amount of the CGUs. The discount rate was estimated based on past experience
and historical industry average weighted-average cost of capital.

iv. The estimate of recoverable amount is particularly sensitive towards pretax discount rate and terminal growth
rate. There will be no impairment even if the weighted average cost of capital is increased by 1% and the
terminal growth rate is decreased by 1%. Management is not currently aware of any other reasonably possible
changes to key assumptions that would cause a unit's carrying amount to exceed its recoverable amount.

The values assigned to the key assumptions represent the management's assessment of future trends in the industry
and based on both internal and external sources.

In accordance with “Employee Stock Option Scheme of MPS Limited", the ESOP Trust (MPS Employee Welfare Trust)
purchased equity shares of the Company from secondary market. The shares purchased by the ESOP Trust are disclosed
as Treasury Shares (refer note 2.14).

(h) Aggregate number of bonus shares issued, shares issued for consideration other than cash during the
period of five years immediately preceding the reporting date:

There are no bonus shares, shares issued for consideration other than cash issued during the period of five years
immediately preceding the reporting date.

(b) Defined benefit plans
Gratuity

As per the “Payment of Gratuity Act, 1972", the Company operates a scheme of gratuity which is a defined benefit plan
and in accordance with Ind AS 19 “Employee Benefits", an actuarial valuation has been carried out in respect of gratuity.
The discount rate assumed is 6.89% p.a. (31 March 2025: 6.59% p.a.) which is determined by reference to market yield
at the Balance Sheet date on Government bonds.

The retirement age has been considered at 58 to 60 years (31 March 2025: 58 to 60 years) and mortality table is as per
IALM (2012-14) (31 March 2025: IALM (2012-14)).

The estimates of future salary increases, considered in actuarial valuation is 5% p.a. (31 March 2025: 6% p.a.), taking into
account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The plans assets are maintained with Life Insurance Corporation of India in respect of gratuity scheme for employees of
the Company. The expected rate of return on plan assets is 6.89% p.a. (31 March 2025: 6.59% p.a.).

Though its defined benefit plans, the Company is exposed to a number of risks, the most significant of which is detailed
below:

Interest rate risk

The present value of the defined benefit liability is calculated using a discount rate determined by reference to market
yields of Government bonds. A decrease in market yield on government bonds will increase the Company's defined
benefit liability, although it is expected that this would be offset partially by an increase in the fair value of certain of
the plan assets.

(d) Share based payments

During the year ended 31 March 2023, the shareholders of the company vide Postal Ballot Resolution dated 21 January
2023, had approved 'MPS Limited- Employee Stock Options Scheme 2023' (“ESOS 2023" or “Scheme") authorizing
the Nomination and Remuneration Committee to grant to the eligible employees of the Company and its subsidiary not
exceeding 4,00,000/- (Four lacs) employee stock options, convertible into not more than equal number of equity shares
of face value of Rs. 10/- (INR Ten) each fully paid up upon exercise, out of which not more than 2,00,000 (Two lacs)
equity shares to be sourced from Secondary Acquisition, from time to time through an employee welfare trust namely 'MPS
Employee Welfare Trust' (“Trust").

During the year ended 31 March 2023, the company had announced an 'MPS Limited - Phantom Stock Option
Scheme 2023' (“PSOS 2023") for eligible employees of its foreign based subsidiaries. As per this scheme, the
employees would be entitled to receive the difference between the fair value of the share at the date of vesting of
PSOS 2023 and the exercise price.

33 Leases

(i) In adopting Ind AS 116, the Company has applied the below practical expedients:

The Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics

The Company has treated the leases with remaining lease term of less than 12 months as if they were “short term
leases"

The Company has not applied the requirements of Ind AS 116 for leases of low value assets

(ii) The Company has discounted lease payments using the applicable incremental borrowing rate which ranges between
7.85% p.a. to 10% p.a. for measuring the lease liability.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the USD, EUR and GBP and others against INR at 31 March 2026
would have affected the measurement of financial exposure denominated in a foreign currency and affected equity
and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates,
remain constant and ignores any impact on forecast revenue and expenses.

(h) The fair value of borrowings is INR 4025 lacs based upon a discounted cash flow analysis that uses the aggregate cash
flow from principal and finance cost over life of debt.

35 Financial risk management
Risk management framework

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.

(i) Market risk

Market risk includes foreign exchange risk, pricing risk and interest risk that may affect the Company's income or the
value of its holdings of financial instruments. The objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimising the returns.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which revenue
and expense are denominated and the functional currency of the Company. The currencies in which the Company is
exposed to risk are USD, EUR, GBP and Others. The Company takes adequate foreign exchange forward covers as
per the guidelines approved by the Board to mitigate currency risk.

Exposure to currency risk

The summary quantitative data about the Company's exposure to currency risk as reported to the management of the
Company is as follows:

Forward covers

The Company takes adequate foreign exchange forward covers to mitigate the risk of changes in exchange rates on
foreign currency exposures. The counterparty for these contracts is bank. These forward covers are value based on
quoted prices for similar assets and liabilities in active markets or input that are directly or indirectly observable in the
marketplace.

Pricing risk:

Pricing pressure is a constant risk due to increased competition. The Company strives to mitigate this risk with existing
customers by a trade-off for volumes. Thereon, it is the Company's endeavour to reduce the impact by taking advantage
of economies of scale and increasing productivity, as well increasing automation within these processes.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company has availed term loan from ICICI Bank and has fulfilled its interest
obligation without any default. The Company does not foresee any significant exposure due to change in interest rate.

35 Financial risk management (Contd..)

(ii) Credit risk

Trade receivables and other financial assets

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer and if
a customer fails to meet its contractual obligations. The demographics of the customer, including the default risk of
the industry and country in which the customer operates, also has an influence on credit risk assessment. Details of
concentration of revenue are as follows:

Expanding the customer base is mitigating this risk. Within the current customers, the Company is looking to deepen the
partnership by supporting publishers in new areas of outsourcing.

Expected credit loss for trade receivables, unbilled revenues and contract assets (customer balances)

Customer balances forms a significant part of the financial assets carried at amortised cost and contract assets, which
is valued considering provision for allowance using expected credit loss method. This assessment is not based on any
mathematical model but an assessment considering the nature of segment, impact immediately seen in the demand
outlook of these segments and the financial strength of the customers in respect of whom amounts are receivable.

The Company based on internal assessment which is driven by the historical experience/current facts available in
relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company
estimates its allowance for trade receivable using lifetime expected credit loss.

35 Financial risk management (Contd..)

Investments and balances with banks

The Company limits its exposure to credit risk by investing in liquid securities, short term bonds and maintaining bank
balances only with counterparties that have a good credit rating. The Company invests as per the guidelines approved
by the Board to mitigate this risk.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company's treasury department is responsible for managing the short-term and long-term liquidity requirements.
Liquidity situation is reviewed regularly by the management.

Expected credit loss on financial assets and contract assets other than trade receivables:

With regard to other financial assets with contractual cash flows other than trade receivables, management believes
these to be high quality assets with negligible credit risk. The management believes that the parties from which these
financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible
and accordingly no material provision for excepted credit loss has been provided on these financial assets. Break up of
financial assets other than trade receivables have been disclosed on balance sheet.

37 Segment information
Operating Segments

The Chairman and CEO of the Company has been identified as the Chief Operating Decision Maker (CODM) as
defined by Ind AS 108, Operating Segments. Operating Segments have been defined and presented based on the
regular review by the CODM to assess the performance of each segment and to make decision about allocation
of resources. Accordingly, the Company has determined reportable segment by nature of its product and service,
accordingly following are the reportable segments:

(a) Research Solutions: Delivering AI-first knowledge solutions across the research lifecycle, spanning content and data
transformation, research integrity and verification, author and editorial solutions, and platform-based hosting, workflow,
and analytics. Serving research and knowledge organizations, learned societies, universities, and researchers directly,
with growing application in clinical and medical knowledge.

(b) Education Solutions: Delivering AI-led learning content and knowledge solutions, including content development,
multi-platform digital delivery, and learning platforms, designed to enable engaging and accessible learning for
education companies, ed-tech and continuing-education providers, and academic institutions, powered by proprietary
technology and AI/ML production.

No operating segments have been aggregated to form the above reportable operating segments.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the Company as a whole.

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the
total common costs.

(i) Revenue and expenses which relate to the Company as a whole and not allocable to segments on reasonable basis
have been included under 'unallocated revenue/expenses'. Details are as follows:

The above amounts are based on the notice of demand/Assessment Orders/claims by the relevant authorities/
parties and the Company is contesting these claims. Outflows, if any, arising out of these claims would depend on the
outcome of the decisions of the appellate authorities and the Company's rights for future appeals before the judiciary.
The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on
the Company's financial position and results of operations.

(ii) The Supreme Court on 28 February 2019 had provided its judgment regarding inclusion of other allowances such
as travel allowances, special allowances, etc., within the expression 'basic wages' for the purpose of computation
of contribution of provident fund under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 ('EPF
Act'). There are interpretive challenges on the application of the Supreme Court Judgment including the period from
which judgment would apply, consequential implications on resigned employees, etc. Further, various stakeholders
had also filed representations with PF authorities in this respect. All these factors raise significant uncertainty regarding
the implementation of the Supreme Court Judgment. Owing to the aforesaid uncertainty and pending clarification
from regulatory authorities in this regard, the Company had recognized provision for the PF contribution on the
basis of above mentioned order with effect from the order date. Further, the management believes that impact of
aforementioned uncertainties on the financial statements of the Company should not be material.

40 Commitments as at year end

Estimated amount of contracts remaining to be executed on capital account (net of advances) is Nil (31 March
2025: Nil).

41 Corporate Social Responsibility (CSR) Expense

Pursuant to Section 135 of the Companies Act 2013, a Corporate Social Responsibility (CSR) committee has been
formed by the Company. The areas for CSR activities includes imparting education to underprivileged children
and girls, building intellect and instill higher values of life through education, promoting healthcare and any other
areas the Board may find appropriate. Gross amount required to be spent by the Company during the year was
INR 265.34 lacs (for the year ended 31 March 2025: INR 232.49 lacs).

46 Company is compliant with number of layers prescribed under Clause 87 of Section 2 of Companies Act, 2013.

47 The Ministry of Corporate Affairs (MCA) had prescribed requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies,
which uses accounting software for maintaining its books of accounts, shall only use such accounting software which has
a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of
account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses an accounting software as the primary accounting software for maintaining its books of accounts.
During the current financial year, the audit trail (edit log) features for any direct changes made at the database level were
not enabled for the accounting software used for maintenance of all the accounting records by the Company. However,
the audit trails (edit log) at the applications level (entered from the frontend by users) for the accounting software were
operating for all relevant transactions recorded in the software and preserved by the Company as per the statutory
requirements for record retention.

The Company also uses one third party application for processing its payroll. The 'Independent Service Auditor's
Assurance Report on the Description of Controls, their Design and Operating Effectiveness' ('Type 2 report' issued in
accordance with SSAE 21, Statement on Standards for Attestation Engagements does not comment on existence of audit
trail (edit logs) for any maintenance of logs of direct changes made at the database level. Further audit trail feature for the
changes made through application level are retained for the period from 5 May 2023 to 31 March 2026.

48 The Board of Directors of MPS Limited approved a draft Scheme of Amalgamation on 18 July 2025 under Sections
230-232 of the Companies Act, 2013, for the merger of ADI BPO Services Limited (the Holding Company, post
demerger of its Infrastructure management and investing business undertakings) into MPS Limited. The No Objection
from the designated Stock Exchange has since been received on 02 March 2026. Pursuant thereto, the Scheme has
been filed before the Hon'ble National Company Law Tribunal (NCLT), Chennai Bench, on 17 April 2026 and is
presently awaiting hearing.

49 Subsequent to the quarter ended 31 March 2026, the Nomination and Remuneration Committee of the Board at its
meeting held on 04 May 2026, considered and approved the 5th grant of 79,009 (Seventy Nine Thousand and Nine
Only) options to the eligible employees of the Company and its subsidiary under the 'MPS Limited- Employee Stock
Options Scheme 2023'.

50 The figures for the corresponding previous year have been regrouped/reclassified, wherever necessary to make them
comparable. The impact of such reclassification/regrouping is not material to the standalone financial statements.

52 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 has not granted any loans and advances in nature of loan, either repayable on demand or without
specifying any terms or period of repayments to promoters, directors, KMP and related parties during the year.

(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 year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), other than those
disclosed in note 44, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

(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 has not 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 does not have any transactions with the companies struck off under section 248 of Companies Act,
2013 or section 560 of Companies Act, 1956.