m. Provisions and Contingent liabilities
A provision is recognized when an enterprise has a
present legal or constructive obligation as a result
of past events, and it is probable that an outflow of
resources will be required to settle the obligation, in
respect of which the amount can be reliably estimated.
Provisions are not discounted to its present value and
are determined based on best estimate required to
settle the obligation at the balance sheet date. These
are reviewed at each balance sheet date and adjusted
to reflect the current best estimate.
A disclosure for contingent liability is made when there
is a possible obligation that arises from the past events
and the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company and that may, but not probable that
an outflow of resources would be required to settle
the obligation. Where there is a possible obligation or
a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or
disclosure is made.
Pursuant to the approval of the shareholder in the Annual General Meeting held on August 7, 2024, the Company has
issued 2,65,10,250 (Two Crores Sixty Five Lakhs Ten Thousand Two Hundred and Fifty Only) Equity shares of Rs. 1/-
each as fully paid up bonus equity shares in the ratio of 1 (One) fully paid Bonus Share for every 4 (Four) Equity Shares
(1:4) held by the Equity Shareholders of the Company as on September 19, 2024 i.e. Record Date.
(C) Rights attached to Equity shares
Each share entitles to a pari passu right to vote, to receive dividend and surplus at the time of liquidation
reporting period. The Group continues to monitor developments on the rules to be notified by regulatory authorities,
including clarifications/additional guidance from authorities and will continue to assess the accounting implications
basis such developments/ guidance.
22 (e) Employee Stock option plans ('ESOP')
ESOP 2009 Plan
The ESOP 2009 Plan was introduced by the Company with the consent of the shareholders in 2009 under which the
Company grants options from time to time to employees of the Company and its subsidiaries. Further the scheme
was amended at the AGM held on 26th September 2014 to increase the exercise period from 5 to 10 years. This
Plan complies with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021.
The total outstanding options available under the ESOP 2009 as on 31st March 2026 is 29,31,307 options, of which
8,59,063 options remain unvested.
During the year, the Allotment Committee has approved the exercise of 7,17,250 options to certain eligible employees
of the Company, who were granted options on various dates at their respective exercise price allotted under ESOP
2009 plan.
Out of the 7,17,250 equity shares exercised during the year, all equity shares were allotted from the shares held by the
Saksoft Employees Welfare Trust ('the Trust'), based on approval obtained through postal ballot in October 2023. The
details of options as on 31st March 2026 is provided in the table below:
22 (g) Dues to Micro and small enterprises
The Company has initiated the process of obtaining confirmation from suppliers who have registered under the Micro,
Small and Medium Enterprises Development Act, 2006.
The information required to be disclosed under the Micro, Small And Medium Enterprises Development Act, 2006
('the MSMED Act") has been determined to the extent such parties have been identified on the basis of information
received from such parties and available with the Company. There are no overdue to parties on account of principal
amount and / or interest as disclosed below:
Trade receivables are amounts billed to the customer on satisfaction of performance obligation. Unbilled revenue
represents revenues in excess of efforts billed on software development and service contracts as at the end of the
reporting period and is included as part of Other Financial Assets.
Billing in excess of revenue are classified as unearned revenue. Balances of trade receivables, unbilled revenue and
unearned income are available in the relevant Schedules of the financial statements. Trade receivables and unbilled
revenue are net of provision in the Balance Sheet.
Information about performance obligations
Performance obligations estimates are subject to change and are affected by several factors including change in
scope of contracts, its termination, foreign currency adjustments and any other items influencing the measurement,
collectability and performance of the contract.
Disclosure relating to remaining performance obligation across all live fixed bid price contracts relate to require
the aggregate amounts of transaction price yet to be recognized as at the reporting date and expected timelines to
recognize these amounts. In view of the fact that all outstanding contracts have an original expected duration for
completion of less than a year no disclosure is warranted.
22 (j) Capital Management
The Company manages its capital to ensure that it will be able to continue as going concerns while maximizing the
return to stakeholders through the optimization of the debt and equity balance. The Company's policy is to maintain
a strong capital base so as to maintain investors, creditors and market confidence to sustain future development of
the business.
22 (h) Dividend
The Board of Directors had recommended interim dividend during the financial year 2025-26 amounting to Rs 0.45
per equity share. This has resulted in a cash flow of Rs 59.65 Million.
The Board of Directors at its meeting held on 25th May 2026 had further recommended a final dividend of 55% (Rs
0.55 per equity share of Rs.1/- face value fully paid up) subject to approval of the shareholders at The Annual General
Meeting. The outflow on account of the final dividend is expected to be Rs 72.9 Million.
22 (i) Disclosure under Ind AS 115
The entire revenue from operations for the year ended 31st March 2026 and 31st March 2025 related to revenue from
software services.
Disaggregation of revenue:
Revenue earned by the Company is disaggregated by its sources based on geographical location as disclosed in Note
23 (d) to the consolidated financial statements.
The Management assessment of fair value of cash and short-term deposits, trade receivables and trade payables,
bank overdrafts, and other current financial assets and liabilities approximate the carrying amounts largely due to the
short-term maturities of these instruments
The Company's derivative financial instruments consist of foreign currency forward exchange contracts. Fair values
for derivative financial instruments are based on market observable inputs and are classified as Level 2. The most
frequently applied valuation technique include forward pricing model, using present value calculations.
Fair Value Measurement Hierarchy
Foreign exchange forward contracts have been measured using Level 2 (Significant observable inputs) - Fair value
measurement hierarchy. Balances as at March 31, 2026 and March 31,2025 amounts to (Rs.50.17 million) and Rs.(2.84)
million respectively. There have been no transfers between Level 1 and Level 2 during the year.
Foreign Exchange Forward Contracts
The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities and forecast cash
flows denominated in foreign currency. The use of derivatives to hedge foreign currency forecast cash flows is
governed by the Company's strategy, which provides principles on the use of such forward contracts and currency
options consistent with the Company's Risk Management Policy. The counterparty in these derivative instruments is a
bank and the Company considers the risks of non-performance by the counterparty as insignificant. The Company has
entered into a series of foreign exchange forward contracts that are designated as cash flow hedges. The Company
does not use forward covers and currency options for speculative purposes.
(l) Financial Risk Management
The Company is exposed to a variety of financial risks, credit risk, liquidity risk and market risk,viz; foreign currency
risk and interest rate risk. The Company has a risk management policy to manage & mitigate these risks.
The Company's risk management policy aims to reduce volatility in financial statements and aims to foresee the
unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
The Board of Directors reviews and agrees policies for managing each of these risks as summarized below
Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or counterparty to the financial instrument
fails to meet its contractual obligations and arises principally from the Company's receivables from customers and
investment securities.
Financial instruments that potentially subject the Company to concentration of credit risk consists of trade receivables,
investments, loans, cash and cash equivalents, other balances with banks and other financial assets. The maximum
exposure to credit risk is equal to the carrying value of the financial assets. By their nature, all such financial assets
involve risks, including the credit risk of non-performance by counterparties.
The Company periodically assesses the credit quality of the counterparties by taking into account their financial
position, past experience, ageing of accounts receivables and any other factor determined by individual characteristic
of the counterparty.
Trade receivables:
The Company has used a practical expedient by computing the lifetime expected credit loss allowance for trade
receivables based on a provision matrix which takes into account historical credit loss experience and adjusted for
forward-looking information. The Company's exposure to customers is diversified. The concentration of credit risk
is limited due to the fact that the customer base is large and unrelated.
Liquidity Risk:
Liquidity risk is the risk that the Company will not be able to encounter its financial obligations associated with financial
liabilities as they become due. The Company manages its liquidity risk by ensuring, as far as possible, to maintain
sufficient liquid funds to meet its liabilities on the due date. The Company consistently generates sufficient cash flows
from operations (with adequate reserves) and has access to multiple sources of funding (banking facilities and loans
from promoter company) to meet the financial obligations and maintain adequate liquidity for use.
Market risk:
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency
exchange rates, interest rates, credit, liquidity and other market changes. The Company's exposure to market risk is
primarily on account of foreign currency exchange rate risk.
Foreign Currency Risk:
The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit or Loss and
Other Comprehensive Income and equity, where any transaction references more than one currency or where assets
/ liabilities are denominated in a currency other than the functional currency of the Company.
The Company's exchange risk arises from its foreign currency revenues (primarily in U.S. Dollars, British Pound Sterling,
Euros and Singapore Dollars). A significant portion of the Company's revenue are in these foreign currencies, while a
significant portion of its corresponding costs are in Indian Rupee. As a result, if the value of Indian rupee appreciates
relative to these foreign currencies, the Company's revenue measured in Indian Rupee may decrease and vice versa.
The exchange rate between the Indian rupee and these foreign currencies has changed substantially in recent periods
and may continue to fluctuate substantially in the future.
The Company periodically determines its strategy to mitigate foreign currency risk. The Company evaluates the impact
of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks
by using derivative financial instruments in line with its risk management policies.
Interest rate risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company's exposure to the risk of changes in market interest rates arises on
Company's debt obligations with floating interest rate.
(m) Other Statutory Information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Group for holding any Benami property.
(ii) The Company does not have any transactions with companies which are struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) 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.
(viii) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
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