m) Provisions
A provision is recognised when the Company has a present
obligation as a result of past event; it is probable that an
outflow of resources embodying economic benefits will be
required to settle the obligation, and a reliable estimate can
be made of the amount of the obligation.
When the Company expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only
when the reimbursement is virtually certain. The expense
relating to a provision is presented in the statement of
profit and loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due
to the passage of time is recognised as a finance cost.
n) 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 recognise a contingent
liability but discloses its existence in the standalone
financial statements.
o) Retirement and other employee benefits
(i) Post-employment benefits
• Defined contribution plan
The Company makes payment to provident fund
scheme which is defined contribution plan. The
contribution paid/payable under the schemes
is recognised in the statement of profit and
loss during the period in which the employee
renders the related service. The Company has
no further obligations under these schemes
beyond its periodic contributions.
The Company recognize contribution payable to
the provident fund scheme as an expenditure,
when an employee renders the related services.
If the contribution payable to the scheme for
services received before balance sheet date
exceeds the contribution already paid, the
deficit payable to the scheme is recognised as a
liability after deducting the contribution already
paid. If the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then the excess recognised
as an asset to the extent that the pre-payment
will lead to, for example, a reduction in future
payment or cash refund.
• Defined benefit plan
The Company operates a defined benefit plan for
its employees, viz. gratuity. The present value of
the obligation under such defined benefit plans
is determined based on the actuarial valuation
using the Projected Unit Credit Method as at
the date of the Balance sheet. The fair value of
plan asset is reduced from the gross obligation
under the defined benefit plans, to recognise
the obligation on a net basis.
Re-measurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return
on plan assets (excluding amounts included in
net interest on the net defined benefit liability),
are recognised immediately in the Balance
Sheet with a corresponding debit or credit to
retained earnings through OCI in the period in
which they occur. Re-measurements are not
reclassified to the statement of profit and loss in
subsequent periods.
Past service costs are recognised in statement of
profit and loss on the earlier of:
• the date of the plan amendment or
curtailment; and
• the date that the Company recognises
related restructuring costs
Net interest is calculated by applying the
discount rate to the net defined benefit liability
or asset. The Company recognises the following
changes in the net defined benefit obligation as
an expense in the statement of profit and loss:
• service costs comprising current service
costs, past-service costs, gains and
losses on curtailments and non-routine
settlements; and
• net interest expense or income.
(ii) Short-term employee benefits
The distinction between short term and long term
employee benefits is based on expected timing of
settlement rather than the employee's entitlement
benefits. All employee benefits payable within
twelve months ofrendering the service are classified
as short term benefits. Such benefits include
salaries, wages, bonus, short term compensated
absences, awards, ex-gratia, performance pay,
etc. and are recognised in the period in which the
employee renders the related service.
(iii) Other long-term employment benefits:
The Company treats accumulated leave expected
to be carried forward beyond twelve months, as
long-term employee benefit for measurement
purposes. Such long-term compensated absences
are provided for based on the actuarial valuation
using the projected unit credit method at the year
end. Actuarial gains/losses are immediately taken
to the statement of profit and loss and are not
deferred. The Company presents the leave as a
current liability in the Balance Sheet to the extent
it does not have an unconditional right to defer its
settlement for 12 months after the reporting date.
Where the Company has the unconditional legal
and contractual right to defer the settlement for a
period beyond 12 months, the same is presented
as non-current liability.
p) Share based payments
Employees of the Company receive remuneration in the
form of share-based payments, whereby employees render
services as consideration for equity instruments (equity-
settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an
appropriate valuation model. (refer note 35)
That cost is recognised, together with a corresponding
increase in share based payment reserves in equity, over the
period in which the performance and/or service conditions
are fulfilled in employee benefits expense. The cumulative
expense recognised for equity-settled transactions at each
reporting date until the vested 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.
No expense is recognised for awards that do not ultimately
vest, except for equity-settled transactions for which
vesting is conditional upon a market or non-vesting
condition. These are treated as vesting irrespective of
whether or not 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 expense had
the terms not been modified, if the original terms of the
award are met. An additional expense is recognised for any
modification that increases the total fair value of the share-
based payment transaction, or is otherwise beneficial to
the employee as measured at the date of modification.
The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.
q) Financial instruments
A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.
• Financial assets
Initial recognition and measurement of financial
assets
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.
Subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in the following categories:
- debt instruments at amortised cost
- debt instruments at fair value through profit
or loss (FVTPL)
- equity instruments measured at fair value
through profit or loss (FVTPL) / other
comprehensive income (FVTOCI)
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.
This category is the most relevant to the Company. After
initial measurement, such financial assets are subsequently
measured at amortised cost using the 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 statement of profit and
loss. The losses arising from impairment are recognised in
the statement of profit and 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.
Debt instruments included within the FVTPL category
are measured at fair value with all changes recognised
in the statement of profit and loss.
Equity investments
All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognised by an acquirer in a business combination
to which Ind AS103 applies are classified as at FVTPL.
For all other equity instruments, the Company may
make an irrevocable election to present subsequent
changes in the fair value in other comprehensive
income. The Company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.
The Company has decided to classify equity
instrument as FVTOCI and all fair value changes on
the instrument, excluding dividends, are recognised
in the OCI. There is no recycling of the amounts from
OCI to statement of profit and loss, even on sale of
investment. However, the Company may transfer the
cumulative gain or loss within equity.
Equity instruments included within the FVTPL
category are measured at fair value with all changes
recognised in the statement of profit and loss.
Derecognition
A financial asset (or, where applicable, a part of a
financial asset or part of a Company of similar financial
assets) is primarily derecognised 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.
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:
- Trade receivables or any contractual right to
receive cash or another financial asset that
result from transactions that are within the
scope of Ind AS 115.
The Company follows 'simplified approach' for
recognition of impairment loss allowance on
trade receivable.
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.
For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that whether there has been a significant increase
in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the entity reverts to recognising impairment loss
allowance based on 12-month ECL.
Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected
life of a financial instrument. The 12-month ECL is a
portion of the lifetime ECL which results from default
events that are possible within 12 months after the
reporting date.
ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the entity
expects to receive (i.e., all cash shortfalls), discounted
at the original EIR. When estimating the cash flows, an
entity is required to consider:
- All contractual terms of the financial instrument
(including prepayment, extension, call and
similar options) 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 Company 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 recognied as expense/
(income) in the statement of profit and loss. This
amount is reflected under the head 'Other expenses'
in the statement of profit and loss. The balance sheet
presentation for various financial instruments is
described below:
- Financial assets measured as at amortised cost
and contractual revenue receivables: ECL is
presented as an allowance, i.e., as an integral
part of the measurement of those assets in
the balance sheet. The allowance reduces the
net carrying amount. Until the asset meets
write-off criteria, the Company does not
reduce impairment allowance from the gross
carrying amount; and
- Loan commitments and financial guarantee
contracts: ECL is presented as a provision in the
balance sheet, i.e. as a liability.
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. The Company does not
have any purchased or originated credit-impaired
(POCI) financial assets, i.e., financial assets which are
credit impaired on purchase/ origination.
• Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition,
loans and borrowings or payables as appropriate.
All financial liabilities are recognised initially at fair
value.
The Company's financial liabilities include trade and
other payables.
Subsequent measurement
The measurement of financial liabilities depends on
their classification, as described below:
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the standalone balance
sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.
r) Investment in subsidiaries
Investment in subsidiaries is carried at cost less accumulated
impairment in the standalone financial statements
s) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise
cash at banks and on hand and short-term deposits with
original maturity of three months or less, which are subject
to an insignificant risk of changes in value. In the statement
of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding
bank overdrafts as they are considered as integral part of
the Company's cash management.
t) Cash dividend
The Company recognises a liability to make cash
distributions to the equity holders of the Company when
the distribution is authorised and the distribution is
no longer at the discretion of the Company. As per the
provisions of the Act, a distribution is authorised when it is
approved by the shareholders. A corresponding amount is
recognised directly in equity.
u) Earnings per share (EPS)
Basic EPS is calculated by dividing the Company's earnings
for the year attributable to ordinary equity shareholders
of the Company by the weighted average number of
ordinary shares outstanding during the year. The earnings
considered in ascertaining the Company's EPS comprise the
net profit after tax attributable to equity shareholders. The
weighted average number of equity shares outstanding
during the year is adjusted for events of bonus issue, bonus
element in a rights issue to existing shareholders, share
split, and reverse share split (consolidation of shares) other
than the conversion of potential equity shares that have
changed the number of equity shares outstanding, without
a corresponding change in resources.
The diluted EPS is calculated on the same basis as basic
EPS, after adjusting for the effects of potential dilutive
equity shares. There were no instruments excluded from
the calculation of diluted earnings per share for the periods
presented because of an anti-dilutive impact.
v) Segment reporting
An operating segment is a component of a company whose
operating results are regularly reviewed by the Company's
Chief Operating Decision Maker (CODM) to make decisions
about resource allocation and assess its performance and
for which discrete financial information is available. The
Company has identified the Managing Directors of the
Company as its CODM.
4. 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, including the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
(a) Judgements
In the process of applying the Company's accounting
policies, the management has made the following
judgements, which have the most significant effect on the
amounts recognised in the Standalone financial statements.
Revenue Recognition :
Significant Judgement is required for identifying separate
performance obligations, determination of basis and its
appropriateness for allocation of transaction price to the
identified performance obligations and recognition of such
identified performance obligations based on timing of
satisfaction (i.e. over time or point in time). The Company
assess each promise in a contract with customer to transfer
a goods or service to identify performance obligation.
These contracts generally meet the criteria for considering
sale of security software and related services as separate
performance obligation, wherein revenue is recognised as
and when control is transferred to the customer for each
performance obligation. The transaction price is allocated
to each performance obligation that depicts the amount of
consideration which the Company expects to be entitled in
exchange for transferring the promised goods or services
to the customer. In Contracts, where arrangement is
determined to constitute a single performance obligation
revenue is recognised over the license period, reflecting the
continuous transfer of control to the customer.
(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.
• Expected Credit loss on trade receivables
The Company 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. In addition to that management also makes
specific provision in case the recovery is not expected
based on their discussion with the customer's.
• Fair value measurement of financial instruments -
Investment in equity instruments and preference
shares
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. Refer note 43 for
further disclosures.
• Deferred tax assets
A deferred tax asset is recognised to the extent
that it is probable that future taxable profit will be
available against which the deductible temporary
differences and tax losses can be utilised. Accordingly,
the Company exercises its judgement to reassess the
carrying amount of deferred tax assets at the end of
each reporting period.
• Employee benefits
The accounting of employee benefit plans in the
nature of defined benefit requires the Company to use
assumptions. These assumptions have been explained
under employee benefits note (Refer note 34).
5 New and amended standards
The Company applied for the first-time certain standards and
amendments, which are effective for annual periods beginning
on or after April 1,2025. The Company has not early adopted any
standard, interpretation or amendment that has been issued but
is not yet effective.
(i) Amendments to Ind AS 21 - Lack of exchangeability
The Ministry of Corporate Affairs (MCA) notified the
Companies (Indian Accounting Standards) Amendment
Rules, 2025, which amend Ind AS 21, The Effects of
Changes in Foreign Exchange Rates to specify how an
entity should assess whether a currency is exchangeable
and how it should determine a spot exchange rate when
exchangeability is lacking.
The amendments do not have a material impact on the
Company's financial statements.
(ii) Amendments to Ind AS 1 - Classification of Liabilities
as Current or Non-current and Non-current Liabilities
with Covenants
The amendments do not have any impact on the Company's
financial statements.
(iii) Amendments to Ind AS 7 and Ind AS 107 - Supplier
Finance Arrangements
In August 2025, the MCA notified amendments to Ind
AS 7 Statement of Cash Flows and Ind AS 107 Financial
Instruments: Disclosures to clarify the characteristics of
supplier finance arrangements and require additional
disclosure of such arrangements.
The amendments do not have any impact on the Company's
financial statements.
(iv) International Tax Reform—Pillar Two Model Rules -
Amendments to Ind AS 12
These amendments did not have any impact on the
amounts recognised in current or prior periods and are not
expected to significantly affect the future periods.
5.1 Standards (including amendments) issued but
not yet effective
The new and amended standards that are notified by the
Ministry of Corporate Affairs (MCA), but not yet effective, up
to the date of issuance of the Company's financial statements
are disclosed below. The Company will adopt these new and
amended standards, when they become effective.
Amendments to Ind AS 1 - Classification of Liabilities as Current
or Non-current and Non-current Liabilities with Covenants and
Ind AS 10 Events after the Reporting Period
The amendments are effective for annual reporting periods
beginning on or after April 1,2026 retrospectively in accordance
with Ind AS 8.
The amendments do not have any impact on the Company's
financial statements.
Note:-
1. The value of land has been estimated based on the stamp duty valuation rate.
2. Building includes one of the office building (including share in undivided portion of land) taken on long term lease i.e. 999 years.
3. The title deeds of the immovable properties are held in the name of the Company.
4. During the previous year, The Company has transferred freehold land H 1.78, building of H 4.75 and accumulated depreciation of
H1.55 to Investment property as the Company intents to lease and earn rental income from the same.
5. During the year, The Company has regrouped building of H 2.13 (March 31,2025: H Nil) and accumulated depreciation of H 1.11
(March 31,2025; H Nil) as part of Right-of-use assets.
The Company's investment properties consist of office premises in India given on non-cancellable lease for a period of 11
months to 3 years.
Measurement of fair values of investment properties
As at March 31,2026, the fair values of the property is H 68.65 (March 31,2025 H 75.91). The valuations are based on valuations performed
by Magnitas Valuation & Advisory Services LLP (Registered Valuer & Chartered Engineer), accredited independent valuer. The Valuer are
a specialist in valuing these types of investment properties. A valuation model in accordance with "internationally accepted valuation
standards" that recommended by the International Valuation Standards Committee has been applied.
Fair value hierarchy disclosures for investment properties have been provided in note 44.
1. The Company has no restriction on the realisability of its investment properties and no contractual obligations to purchase, or
develop investment properties.
2. The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area,
location, demand, age of the property. The fair value is based on valuation performed by an accredited independent valuer.
Fair valuation is based on Market and income approach for valuation. The fair value measurement is categorised in level 2 fair
value hierarchy.
Key assumption and inputs
The Company have adopted market approach to estimate the value of property, market rate is estimated based on Prime data source
& the rate applicable at surrounding vicinity.
1. Prime Source: Recorded sales transction in the vicinity of property.
2. Secondary sources: Local enquiry about the rates, web advertisement about the land rates, ready reckoner/ guideline rates.
(b) Rights, preferences and restrictions attached to equity shares
The Company has only one class of equity shares having par value of H 10 per share. Each holder of equity shares is entitled to
one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors
is subject to approval of the shareholders in ensuing Annual General Meeting.
The Board of Directors, in their meeting on April 25, 2024, proposed a final dividend of H 3 per equity share and the same was
approved by the shareholders at the Annual General Meeting held on September 6, 2024. The amount was recognized as
distributions to equity shareholders during the year ended March 31,2025 and the total appropriation was H 16.13 including Tax
deduction at source. The Company has not proposed any dividend for the year ended March 31,2026
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held
by shareholders.
(c) There are no shares held by holding/ ultimate holding company and /or their subsidiaries/ associates
Nature and purpose of reserves
Securities premium
Securities premium is used to record the premium on issue of shares. This reserve can be utilised only in accordance with the provisions
of the Companies Act, 2013.
Amalgamation reserve
Pursuant to the scheme of amalgamation ("the Scheme") sanctioned by the Honourable High Court of Bombay, Cat Labs Private
Limited (CLPL), subsidiary of the Company, had been merged with the Company with effect from April 1,2010. Accordingly, an amount
of H 2.65 was recorded as amalgamation reserve.
General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to
mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously
transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.
Capital redemption reserve
The Company had bought back its share in the past. In accordance with section 69 of the Companies Act, 2013, Capital Redemption
Reserve is created (which represent nominal value of share bought back).
18. Other equity (Contd..)
Retained earnings
Retained Earnings represent surplus i.e., balance of the relevant column in the Statement of Changes in Equity.
Share based payment reserve
The Company has two employee stock option schemes under which options to subscribe for the Company's shares have been granted
to certain executives and senior employees. The share-based payment reserve is used to recognise the value of equity-settled share-
based payments provided to employees, including key management personnel, as part of their remuneration. Refer note 35 for further
details of these plans.
Fair value through other comprehensive income reserve
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive
income. These changes are accumulated within the equity instruments through other comprehensive income within equity. The
Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
The Company offsets the tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current
tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
32. Earnings per share (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted
average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company 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
exercise of stock option.
34. Disclosure pursuant to employee benefits
A. Defined contribution plans
Amount of H 4.77 (March 31,2025: H 4.53 ) is recognised as expenses and included in note no. 27 "Employee benefit expense"
B. Post employment defined benefit plan
The Company has a defined benefit gratuity plan (funded) for its employees. The Company's defined benefit gratuity plan is a
final salary plan for its employees, which requires contributions to be made to a separately administered fund. The scheme is
funded with an insurance company in the form of a qualifying insurance policy.
The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of
service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at
retirement age. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary
(last drawn) for each completed year of service as per the provisions of the Payment of Gratuity Act, 1972.
The following table summarises the components of net benefit expense recognised in the statement of profit and loss and the
funded status and the amounts recognised in the balance sheet for the gratuity plan.
35. Share based arrangements
Share based payment arrangement 2014
On February 6, 2014, the Board of Directors approved the Equity Settled ESOP Scheme 2014 for issue of stock options to the employees
of the Company. According to the ESOP 2014, the employee selected by the Board of Directors from time to time will be entitled for
scheme options, subject to satisfaction of the prescribed vesting conditions, viz., continued employment and performance parameters
of employee. The contractual life (comprising the vesting period and the exercise period) of options and the other relevant terms of
the grant are as below:
For share options exercised during the reporting period, the weighted average share price at the date of exercise, or if options were
exercised on a regular basis throughout the reporting period, the entity may instead disclose the weighted average share price during
the reporting period.
The weighted average share price at the date of exercise of these options, as at March 31,2026 is H 328.79 (March 31,2025: H 588.72)
Manner in which the fair value of the stock option granted during the period was determined:
There are no grants in financials ended March 31,2026 and March 31,2025 for share based payment arrangement 2014
Share based payment arrangement 2021
On March 10, 2021, the Board of Directors approved the Equity Settled ESOP Scheme 2021 for issue of stock options to the employees
of the Company. According to the ESOP 2021, the employee selected by the Board of Directors from time to time will be entitled for
scheme options, subject to satisfaction of the prescribed vesting conditions, viz., continued employment and performance parameters
of employee. The contractual life (comprising the vesting period and the exercise period) of options and the other relevant terms of
the grant are as below:
On July 23, 2024, the Board of Directors approved the Equity Settled ESOP Scheme 2021 for issue of stock options to the selected
employees of the Company. According to the ESOP 2021, the employee selected by the Board of Directors from time to time will be
entitled for scheme options, subject to satisfaction of the prescribed vesting conditions, viz., continued employment and performance
parameters of employee. The contractual life (comprising the vesting period and the exercise period) of options and the other relevant
terms of the grant are as below:
Company as a lessor
The Company has entered into operating leases for its investment properties (refer note 6). These leases have terms ranging
from eleven months to five years. Some of these leases include an annual escalation clause on rental prices based on prevailing
market conditions.
During the year ended March 31,2026 H 5.13 (March 31,2025: H 5.49) was recognised in profit and loss in relation to rental income
from the investment properties. (refer note 25)
i) Direct tax
The claims against the Company primarily represent demands arising on completion of assessment proceedings
under the Income Tax Act, 1961. These claims are majorly on account of disallowance of expenses pertaining to
exempt income as per section 14A read with rule 8D of the Income Tax Act, 1961 and dissallowance of ESOP expenses.
These matters are pending before various Income Tax Authorities and the Management including its tax advisors expect
that its position will likely be upheld on ultimate resolution and will not have a material effect on the Company's financial
position and results of operations.
ii) Indirect tax
The claim against the Company represented a demand arising on account of mismatch of ITC under the Goods and
Services Act, 2017. This matter was pending before Commissioner CGST and the Management expected that its position
will likely be upheld on ultimate resolution and will not have a material effect on the Company's financial position and
results of operations.
36. Commitments and contingencies (Contd..)
iii) Provident fund
During the year ended March 31,2025, the Regional P.F. Commissioner ("RPFC") passed an order under Section 7A & 7Q of
the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("Act") demanding H 2.52 (excluding interest of H
2.49 and damages that might be levy if any) on the grounds that it failed to remit Provident Fund ("PF") on wages for its
employees for the period from September 2014 to March 2019 for certain allowances of salary. The Company filed an appeal
before the Central Government Industrial Tribunal Cum-Labour Court ("CGIT") challenging the Employees' Provident Fund
Organisation's ("EPFO") order along with the application under Section 7O of the Act seeking a waiver from pre-deposit of
the alleged Provident Fund Contributions till the final disposal of the Appeal. The CGIT, after hearing the submissions made,
passed an Order and directed RPFC, not to proceed with the recovery against the Company on depositing 30% of the total
amount assessed. The Company, based on the legal counsel's opinion, is of the view that the claim made by the RPFC is not
probable, and accordingly no provision is recorded in the financial statement of the year ended March 31,2026.
42. Segment
The Company is engaged in providing security software solutions. The Chief Operating Decision Maker (CODM) reviews the information
pertaining to revenue of each of the target customer group as mentioned below. However, Chief Operating Decision Maker (CODM)
does not reviews operating results for each target customer separately as discrete financial information is not available. Hence, based
on similarity of activities/products, risk and reward structure, organisation structure and internal reporting systems, the Company has
structured its operations into one operating segment viz. cyber security platform and as such there is no separate reportable operating
segment as defined by Ind AS 108 "Operating segments". For management purposes, the Company reports the details of revenue
based on the target customer groups as under:
- Consumer
- Enterprise and Government
In accordance with paragraph 4 of Ind AS 108 'Operating segments', the Company has disclosed segment information only on the basis
of the consolidated financial statement.
The management assessed that the fair value of cash and cash equivalents, trade receivables, trade payables and other current financial
assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.
The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of security and term deposits are not
significantly different from the carrying amount.
Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits, and other
financial assets.
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.
44. Fair value hierarchy
The following table provides the fair value measurement hierarchy of the Company's assets and liabilities:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included with in Level 1 that the observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data unobservable inputs.
The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value on a recurring
basis as at March 31,2026 and March 31,2025.
There have been no transfers among Level 1, Level 2 and Level 3 during the year.
The following methods and assumptions were used to estimate the fair values:
(i) The fair value of the quoted mutual fund are based on the price quotations at reporting date. The fair value of unquoted
instruments, related parties and other financial liabilities as well as other non-current financial liabilities is estimated by
discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
(ii) The fair values of the unquoted equity and preference shares have been estimated using a discounted cash flow (DCF) model. The
valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount
rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used
in management's estimate of fair value for these unquoted equity and preference investments.
The Company's principal financial liabilities comprise trade payable, lease liabilities and other payables. The main purpose of these
financial liabilities is to finance the Company's operations and to support its operations. The Company's principal financial assets
include investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company
does not have borrowings and derivative transactions.
The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors review and agree policies for managing
each of these risks, which are summarised below:
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. Financial instruments affected by market risk include deposits, investments, receivables, payables, advances and
other financial instruments. From the perspective of the Company, the impact of the foreign currency risk, material price risk,
interest rate risk and other price risk is not significant.
The Company has certain financial assets and financial liabilities in foreign currencies which expose the Company to foreign
currency risks. The foreign currency exposure of the Company has been disclosed in Note 40 to the standalone financial statements.
Foreign currency sensitivity
The Company does not take any steps to hedge the foreign currency exposure as mentioned above as the Management believes
that there is natural hedge to some extent and balance exposure not really having significant impact on the financial health
of the Company.
(b) Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.
Trade receivables
Customer credit risk is managed by 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. On account of
adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company
follows simplified approach for recognition of impairment loss allowance on Trade receivables.
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 with banks in terms of fixed deposits and investment in
designated mutual funds. Investment decision in mutual fund is taken with the assistance from appointed agent. Credit risk on
cash deposits is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings
assigned by international and domestic credit rating agencies. Other investments primarily include investment in liquid mutual
fund units of reputed companies where historically, the Company has not incurred any loss due to credit risk.
(c) Liquidity risk
The Company had no outstanding bank borrowings as of March 31,2026 and March 31,2025. The working capital as at March 31,
2026 was H 260.27 (March 31,2025: H 287.97) including cash and cash equivalents.
As at March 31,2026 and March 31,2025, the outstanding employee obligations were H 22.40 and H 18.85 respectively which have
been substantially funded. Accordingly, no significant liquidity risk is perceived.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments.
Financial risk management
Capital management
For the purpose of the Company's capital management, capital includes issued equity share capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company's capital management is to ensure that
it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder's value. The
Company manages its capital and makes adjustments to it in light of the changes in economic and market conditions. The total
equity as at March 31,2026 is H437.24 (March 31,2025: H 441.84).
The Company does not have any debt as on March 31,2026 & March 31,2025 and hence no debt-equity ratio is computed.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2026 and
March 31, 2025.
46. Audit Trail
The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit
log) facility, except no audit trail feature was enabled at the database level in respect of an accounting software to log any direct data
changes during the year ended in March 31,2026 and March 31,2025. Audit trail feature has been operated for all relevant transactions
recorded in the accounting software wherever enabled.
Further, no instance of audit trail feature being tampered with in respect of such accounting software. Additionally, the audit trail of
prior year has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and
recorded in respective years.
47. Title deeds of Immovable Properties not held in name of the Company
The title deeds of all the immovable properties are held in the name of the Company.
48. Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:
The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or jointly
with any other person.
49. Details of Benami Property held
The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
50. Wilful Defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
51. Relationship with Struck off Companies under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956,
The Company does not have any transactions with Companies struck off under section 248 of the Companies Act, 2013 or section 560
of Companies Act, 1956,
52. Registration of charges or satisfaction with Registrar of Companies
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
53. Compliance with number of layers of Companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017.
54. Compliance with approved Scheme(s) of Arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
55. Utilisation of Borrowed funds and share premium:
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded
in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
56. Undisclosedincome
The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or
disclosed as income during the year (and previous 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.
57. Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
58. The Code on Social Security 2020
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 (collectively referred to as the "New Labour Codes").
Based on the requirements of the New Labour Codes and the relevant Accounting Standards, the Company has assessed the impact of
these changes and recognised an incremental expense of H1.33 crores under "Employee benefit expense" in the financial statements
for the year ended March 31,2026, primarily on account of recognition of past service cost relating to employee benefit obligations for
compensated absences payable to employees.
The Company continues to monitor the finalisation of Central/State Rules and clarifications from the Government on other aspects of
the Labour Code and would provide appropriate accounting effect as and when such clarifications are issued/rules are notified. The
restructuring of salary in compliance with the code is effective from July 1,2026.
59. Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS and as required by Schedule III of the Act.
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