(c) Rights, preferences and restrictions attached to equity shares:
The Company has only one class of equity shares having a par value of ' 10 per share. Accordingly, all equity shares rank equally with regard to dividends and share in the Company's residual assets. The holders of equity shares are entitled to receive dividend as declared from time to time. The dividend if any proposed by the Board of Directors is subject to shareholders' approval at the ensuing Annual General Meeting. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.
Failure to pay any amount called up on shares may lead to forfeiture of the shares. On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
(e) There are no bonus shares issued during the period of five years immediately preceding the Balance Sheet date.
(f) The Board of Directors of the Company at their meeting held on May 08, 2026 has approved final dividend of ' 13 per share for the year ended March 31, 2026 and would result in cash outflow of ' 1,974.24 lakhs. The Board of Directors at their meeting held on November 07, 2025 had declared an interim dividend of ' 12 per share, which was paid during the year.
(g) Restricted Stock Units (RSUs) & Employee Stock Option Plan (ESOP):
The Sasken Employees' Share Based Incentive Plan 2016 (Plan) was duly approved and instituted in December, 2016. The Plan authorizes the Board of Directors of the Company to offer share based incentive to eligible employees of the Company and its subsidiaries. The maximum number of shares to be granted under the Plan will be in accordance with SEBI (Employee Share Based Payments and Sweat Equity) Regulations, 2021 and other applicable regulations.
During the year ended March 31, 2026, the Company granted 96,600 Employee Stock Options (ESOPs) and 29,601 Restricted Stock Units (RSUs). ESOPs are subject to a service-based vesting condition and vest in equal tranches over a period of four years. The vested options are exercisable within three years from the date of vesting. RSUs are subject to nonmarket performance conditions and vest in equal tranches over a period of three years. The vested RSUs are exercisable within one year from the date of vesting.
Further, during earlier years, grants were made to identified employees on January 13, 2022; May 26, 2022; October 19, 2022; November 4, 2022; April 3, 2023; and October 13, 2023. These awards vest over a period of two years as per the vesting schedule approved by the Committee and are exercisable within three years from the date of vesting, in accordance with the terms approved by the Committee.
The Company has recognized a total compensation expense (net of cross charges to subsidiaries) of ' 341.64 lakhs in the Statement of Profit and Loss for the year ended March 31, 2026 (March 31, 2025: ' 380.25 lakhs), in respect of these share-based payment arrangements.
In assessing the realizability of deferred tax assets, the Company considers the extent to which it is probable that the deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable profits during the periods in which those temporary differences and tax loss carryforwards become deductible. The Company considers the expected reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on this, the Company believes that it is probable that the Company will realize the benefits of these deductible differences. The amount of deferred tax asset considered realizable, however, could be reduced in the near term if the estimates of future taxable income during the carry-forward period are reduced.
The Company has provided for income taxes at the rates provided in Section 115BAA of the Income Tax Act 1961 for the year ended March 31, 2026.
26. Earnings per share (EPS)
Basic EPS is 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 is calculated by dividing the profit attributable to equity holders of the Company and the weighted average number of equity shares outstanding, after adjustment for the effects of all dilutive potential equity shares.
1 customer group individually accounted for more than 10% of the revenues for the year ended March 31, 2026 (March 31, 2025 : Nil).
The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized corresponds directly with the value to the customer of the entity's performance completed to date, typically those contracts where invoicing is on time-and-material.
The aggregate value of performance obligations that are completely or partially unsatisfied out of the purchase orders received, other than those meeting the exclusion criteria mentioned above, is ' 3,454.76 lakhs as at March 31, 2026 (' 244.17 lakhs as at March 31, 2025). Out of this, the Company expects to recognize majority of the revenues in next financial year:
30. Employee benefitsDefined contribution plan:
Pension Fund and Superannuation
The Company makes contributions to the Government administered pension fund, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident fund, which is a defined contribution plan. Further, the Company also contributes to a superannuation scheme, maintained by an insurance Company. To the extent of such contributions, the Company has no obligation other than to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue. The amount recognized as an expense towards contributions for year ended March 31, 2026'144.62 lakhs. ( For the year ended March 31, 2025: ' 125.75 lakhs).
The amount recognized as an expense towards contribution to this plan for the year ended March 31, 2026 aggregated to ' 1,215.74 lakhs respectively (March 31, 2025'1,126.87 lakhs), and the Company has recognized in other comprehensive income for the year ended March 31, 2026, net gain of ' 631.75 lakhs (March 31, 2025: net loss of ' 116.44 lakhs).
(b) Gratuity
The Company operates a post employment benefit plan that provides for gratuity benefit to the employees of the Company. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive one-half month's salary for each year of completed service at the time of retirement/exit. Further, in case of the branch in Germany, pension contributions are also made as per the local laws and regulations. The Company provides for these pension benefits, a defined benefit plan, covering all eligible employees.
The Company has exposure to the following risks arising from financial instruments:
• Credit risk;
• Liquidity risk; and
• Market risk
i. Risk management framework
The Company's principal financial liabilities comprise trade payables, other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade receivables, cash and cash equivalents and unbilled revenues that derive directly from its operations.
The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk for the Company pertains to investing activities. The Company's exposure to credit risk is influenced mainly by the individual characteristic of customers and counterparties to derivative instruments such as banks.
ii. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investments in debt securities.
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to ' 12,346.71 lakhs and ' 9,295.32 lakhs as of March 31, 2026 and March 31, 2025, respectively and unbilled revenues amounting to ' 3,553.16 lakhs and ' 2,721.47 lakhs as of March 31, 2026 and March 31, 2025 respectively. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. As per Ind AS 109, the Company uses expected credit loss model to assess the impairment losses. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. As per the provision matrix, there are no credit losses to be recognised for the year ended March 31, 2026 and year ended March 31, 2025.
Trade receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.
Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. The Company establishes an allowance for impairment that best represents its estimate of expected losses in respect of trade receivables. The Company has established a credit policy under which each new customer is analyzed individually for credit worthiness before the standard payment and delivery terms and conditions are offered. The balance outstanding of trade receivable overdue for more than 180 days as at March 31, 2026 is ' 155.59 lakhs (March 31, 2025 : ' 16.13 lakhs).
Cash and bank balances
The Company held cash and bank balances of ' 1,657.36 lakhs at March 31, 2026 (March 31, 2025: ' 1,456.02 lakhs). Derivatives
The derivatives are entered with banks being counterparty.
iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulties 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 principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.
iv. Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices -will affect the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to the market value of its investments. Thus, the exposure to market risk is primarily related to investing activities. The objective of market risk management is to diversify our portfolio according to nature of investments to mitigate risks.
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to equity shareholders.
The Company monitors capital using a ratio of 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted net debt is defined as total liabilities less cash and cash equivalents. Adjusted equity comprises all components of equity, other than amounts accumulated in the hedging reserve.
*The Company is contesting the demands and based on expert advice, the management believes that its position will likely be upheld in the various appellate authorities / courts. The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company's Management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect on the Company's results of operations or financial condition.
The Company has been sanctioned a fund based facility of ' 2,692.80 lakhs (March 31, 2025: Nil) backed by mutual funds and a non-fund based credit facility ' 500 lakhs (March 31, 2025: ' 500 lakhs). The Company has availed bank guarantee of ' 13.82 lakhs (March 31, 2025 : ' 13.82 lakhs) with Union Bank of India. The Company has not utilised any working capital limits and is not required to submit periodic statement of stock and book debts.
34. Dues to Micro, Small and Medium Enterprises
The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the 'Micro, Small and Medium Enterprises Development Act, 2006 ('the MSMED Act'). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2026 has been made in the standalone financial statements based on information received and available with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the Balance Sheet date.
37. Acquisition of subsidiaries
Borqs International Holding Corp along with its identified wholly owned subsidiaries became step down subsidiary of Sasken Technologies Limited effective from April 8, 2025, consequent to completion of acquisition of the said entities by Sasken Design Solutions Pte Ltd, upon completion of the necessary customary closing conditions.
38. Impact of Labour Codes
Effective November 21, 2025, the Government of India consolidated 29 existing labour regulations into four Labour codes, namely, 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, collectively referred to as the 'New Labour Codes'. The New Labour Codes has resulted in material increase in provision for employee benefits on account of recognition of past service costs. Based on the requirements of New Labour Codes and relevant Accounting Standard, the Company has assessed and accounted the estimated incremental impact of ' 457.30 lakhs as Exceptional Item in the standalone statement of profit and loss for the year ended March 31, 2026. Upon notification of the related Rules to the New Labour Codes by the Government and any further clarification from the Government on other aspects of the New Labour Codes, the Company will evaluate and account for additional impact if any, in subsequent periods.
39. The Company:
a) does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
b) does not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.
c) 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.
d) 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 in the tax assessments under the Income Tax Act, 1961.
e) has not traded or invested in crypto currency or virtual currency during the financial year.
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