(j) Provisions and Contingent liabilities
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 resources embodying economic benefits will be
required to settle the obligation. Judgements include estimating the probability of the cash outflows for the present
obligations and accordingly provisions are determined and reviewed at the end of each reporting period and are
adjusted to reflect current best estimates.
The Company uses significant judgement to identify and measure contingent liabilities. Contingent liabilities are
disclosed when there is a possible obligation arising from past events, 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 or a present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent
liabilities in relation to assessment/litigations can involve complex issues, which can only be resolved over extended
time periods.
1.4 Revenue Recognition
(a) Software development and related services in the field of Life Sciences Business
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that
reflects the consideration we expect to receive in exchange for those products or services.
Arrangements with customers for software-related services are either on a fixed-price, fixed-timeframe or on a time-
and-material basis.
Revenue on time-and-material contracts are recognized as the related services are performed and revenue from the
end of the last invoicing to the reporting date is recognized as unbilled revenue.
Revenue from fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time and
where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-
of-completion method. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is
postponed until such uncertainty is resolved. Efforts or costs expended have been used to measure progress towards
completion as there is a direct relationship between input and productivity. Maintenance revenue is recognized
rateably over the term of the underlying maintenance arrangement.
Revenues in excess of invoicing are classified as contract assets (which we refer to as unbilled revenue) while invoicing
in excess of revenues are classified as contract liabilities (which we refer to as unearned revenues).
(b) Sale of Hardware
Revenue from sale of hardware and incidental peripherals goods is recognised in the statement of profit and loss when
the transfer of control of promised products have been transferred to the buyer as per the terms of the respective
sales order. Revenue from the sale of goods is measured at the fair value of consideration received or receivable, net of
returns and allowances and discounts. The transaction price usually represents the fair value unless otherwise disclosed
in the financial statements.
(c) Other Income
(i) Interest income
For all financial assets measured either at amortised cost or at fair value through other comprehensive income, interest
income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future
cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate,
to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating
the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms
of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the
expected credit losses. Interest income is included in other income in the statement of profit and loss.
(ii) Dividend income
Dividend income from investments is recognised when the right to receive the payment is established.
(iii) Share of Profit/loss from Limited Liability Partnerships
The share of profit/loss from LLP is recognized as income/absorbed as an expense as and when the right to receive
the profit share / fund the share of loss is established as per the contracted terms and conditions.
1.5 Property, Plant and Equipment
Property, plant and equipment are measured at cost or its deemed cost less accumulated depreciation and impairment
losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset. The Company depreciates
property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives
of assets are as follows;
Depreciation methods, useful lives and residual values are reviewed periodically at the end of each financial year.
Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is
classified as capital advances under other non-current assets in situations where the work for development of that asset
has not commenced or the asset, being a standard/shelf product, is not delivered and ready for the intended use as
desired by the company. In situations, where the work for development of the asset has been commenced but still under
progress, the cost of development incurred till the reporting date is disclosed under 'Capital work-in-progress'.
Subsequent expenditures relating to property, plant and equipment are capitalized only when it is probable that future
economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs
and maintenance costs are recognized in the Statement of Profit and Loss when incurred. The cost and related accumulated
depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or
losses are recognised in the Statement of Profit and Loss.
1.6 Business Combinations
Business combinations are accounted for using the acquisition method under the provisions of Ind AS 103, Business
Combinations.
The cost of an acquisition is measured at the fair value of the assets transferred, equity instruments issued and liabilities
incurred or assumed at the date of acquisition, which is the date on which control is transferred to the Company. The cost
of acquisition also includes the fair value of any contingent consideration. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition.
Business combinations between entities under common control are accounted for at carrying value.
Transaction costs that the Company incurs in connection with a business combination such as finder's fees, legal fees, due
diligence fees, and other professional and consulting fees are not considered as part of the cost of acquisition.
1.7 Intangible Assets
Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their
respective individual estimated useful lives ranging between 3 to 7 years on a straight-line basis, from the date that they are
available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors, including the
effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry or known
technological advances), and the level of maintenance expenditure required to obtain the expected future cash flows from
the assets. Amortization methods, and useful lives are reviewed periodically, including at each financial year end.
1.8 Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the
inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of
a specific asset or assets and the arrangement conveys a right of use the asset or assets, even if that right is not explicitly
specified in an arrangement.
Company as a lessee
The Company's lease asset classes primarily consist of leases for buildings. The Company assesses whether a contract
contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right
to control the use of an identified asset, the Company assesses whether:
(i) The contract involves the use of an identified asset
(ii) The Company has substantially all of the economic benefits from use of the asset through the period of the lease and
(iii) The Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease
liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term
leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an
operating expense on a straight-line basis over the term of the lease. Certain lease arrangements includes the options to
extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when
it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use
assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful
life of the underlying asset.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The
lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the
incremental borrowing rates. After the commencement date, the lease liability is adjusted by increasing the carrying
amount to reflect interest on the lease liability; reducing the carrying amount to reflect the lease payments made;
and remeasuring the carrying amount to reflect any reassessment or lease modifications. The lease liability is also
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
interest on the lease liability is recognised in the statement of Profit & Loss except to the extent that it can be allocated
to any Property, Plant & Equipment.
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 (assets of less than INR 0.10 million in value). The Company
recognises the lease payments associated with these leases as an expense over the lease term.
Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All
other leases are classified as operating leases. When the Company is an intermediate lessor, it accounts for its interests in
the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the
right-of-use asset arising from the head lease. For operating leases, rental income is recognized on a straight line basis over
the term of the relevant lease.'
1.9 Investment in Subsidiaries
Investment in equity instruments of subsidiaries are measured at cost less impairment, if any. Investment in preference
shares of subsidiaries are classified as equity since the company has the option of early conversion with fixed ratio and also
there is no requirement for mandatory dividend payout.
Investment in subsidiaries are carried at cost and are tested for Impairment in accordance with Ind AS 36, 'Impairment of
assets'. The carrying amount of investment is tested for impairment as a single asset by comparing it's recoverable amount
with its carrying amount, any impairment loss recognised reduces the carrying amount of investment.
1.10 Financial Instruments
1.10.1 Initial Recognition
The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of
the instrument. All financial assets and liabilities are recognized at fair value on initial recognition. Transaction costs that
are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not fair valued through
profit or loss, are added to the fair value on initial recognition. Regular way of purchase and sale of financial assets are
accounted for at trade date.
1.10.2 Subsequent Measurement
i) Non-Derivative Financial Instruments
a) Financial Assets Carried at Amortized Cost
A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective
is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
b) Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI)
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows that are solely payments of
principal and interest on the principal amount outstanding on specified dates and by sale. Further, in cases where
the company has made an irrevocable election based on its business model, for its investments which are classified
as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income (OCI).
c) Financial Assets at Fair Value through Profit and Loss (FVTPL)
A financial asset which is not classified in any of the above categories are subsequently measured at fair value
through profit and loss.
d) Financial Liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for
contingent consideration recognized in a business combination which is subsequently measured at fair value
through profit and loss. For trade and other payables maturing within one year from the Balance Sheet date, the
carrying amounts approximate the fair value due to the short term maturity of these instruments.
ii) Derivative Financial Instruments
a) Initial Recognition and Subsequent Measurement
The derivative financial instruments are initially recognized at fair value on the date on which a derivative contract
is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except
for the effective portion of cash flow hedges, which is recognized in OCI and later reclassified to profit or loss when
the hedge item affects the profit or loss.
For the purpose of hedge accounting, hedges are classified as:
Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an
unrecognised firm commitment.
Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular
risk associated with a recognised asset or liability.
At present no hedging instrument is used by the Company.
1.10.3 Derecognition of Financial Instruments
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party and does
not retain control of the asset.
On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the
consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive
income and accumulated in equity is recognised in the Statement of Profit and Loss if such gain or loss would have otherwise
been recognised in the Statement of Profit and Loss on disposal of that financial asset.
The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled
or have expired. An exchange with a new lender of debt instruments with substantially different terms is accounted for as
an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor)
is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The
difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is
recognised in the Statement of Profit and Loss.
1.10.4 Financial Guarantee Contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a
loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by a Company are initially measured at their fair value and, if not designated as at
FVTPL, are subsequently measured at the higher of:
• the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109, 'Financial
Instruments'; and
• the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance
with the principles of Ind AS 115, 'Revenue from contract with customers'.
The Financial guarantees issued to third parties on behalf of subsidiaries are recorded at fair value. The same is recognised
as other income in the statement of Profit and Loss.
1.10.5 Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.
1.10.6 Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amounts are presented in the standalone balance sheet when,
and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle
them on a net basis or to realize the asset and settle the liability simultaneously.
1.11 Impairment
a) Financial Assets other than investments held in subsidiaries
The Company assesses at each date of statement of financial position whether a financial asset in form of trade
receivables and unbilled receivables is impaired. In accordance with Ind AS 109, the Company applies Expected Credit
Loss (ECL) model for measurement and recognition of impairment loss. As a practical expedient, the Company uses
a provision matrix to determine impairment loss on portfolio of its trade receivables and unbilled receivables. The
provision matrix is based on available external and internal credit risk factors such as credit default, credit rating from
credit rating agencies and Company's historically observed default rates over the expected life of trade receivables and
unbilled receivables. ECL impairment loss allowance or reversal is recognised during the period as expense or income
respectively in the Standalone statement of profit and loss.
b) Property, Plant and Equipment and Intangible Assets
Property, Plant and Equipment and Intangible assets are evaluated for recoverability whenever events or change in
circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment of testing,
the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those from other
assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.
If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is
measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the
assets. An impairment loss is reversed in the Statement of Profit and Loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the carrying amount that would have been determined (net of
any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
1.12 Foreign Currencies
Transactions and balances
Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign currency
denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on
the balance sheet date.
Gains and losses arising on restatement of foreign currency denominated monetary assets and liabilities are included in
the standalone statement of profit and loss. Non-monetary assets and liabilities denominated in a foreign currency and
measured at historical cost are translated at an exchange rate that approximates the rate prevalent on the date of the
transaction.
Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit
for the period in which the transaction is settled. Revenue, expense and cash-flow items denominated in foreign currencies
are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction.
1.13 Income Taxes
Income tax expenses comprise current and deferred income tax. Income tax expense is recognized in net profit in the
Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is
recognized in other comprehensive income.
Current income tax for current and prior periods recognized at the amount expected to be paid to or recovered from
the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance
Sheet date. Deferred income tax asset and liabilities are recognized for all temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred
income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profit and loss at the time of the transaction. Deferred tax
assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realized.
Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and
liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date.
A deferred income tax asset is recognized to extent that it is probable future taxable profit will be available against which
the deductible temporary differences and tax losses can be utilized. The Company offsets current tax assets and current
tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle
on a net basis, or to realize the asset and settle the liability simultaneously. Deferred income taxes are not provided on the
undistributed earnings of subsidiaries where it is expected that the earnings of the subsidiary will not be distributed in the
foreseeable future.
1.14 Cash and Cash Equivalents:
For the purpose of presentation in statement of cash flows, cash and cash equivalents include cash on hand, deposits
held at call with financial institutions, other short term highly liquid investments with original maturities of 3 months
or less that are readily convertible to known amount of cash and which are subject to an insignificant risk of change
in value.
1.15 Discontinued Operations and Non-Current Assets held for sale
A discontinued operation is a component of the entity that has been disposed off or is classified as held for sale and:
• represents a separate major line of business or geographical area of operations and;
• is part of a single co-ordinated plan to dispose of such a line of business or area of operations.
Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered
principally through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate
sale in its present condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and
the sale is highly probable and is expected to qualify for recognition as a completed sale within one year from the date of
classification.
Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair
value less costs to sell.
Non-current assets are not depreciated or amortised while they are classified as held for sale and are presented separately
from the other assets in the balance sheet. The liabilities related to the assets held for sale are presented separately from
other liabilities in the balance sheet. The results of discontinued operations are presented separately in the Statement of
Profit and Loss.
1.16 Employee Benefits
1.16.1 Gratuity
The Company provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible employees
of TAKE Solutions Limited. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of
employment with the Company.
Liabilities with regard to the Gratuity plan are determined by actuarial valuation, performed by an independent actuary, at
each Balance Sheet date using the projected unit credit method.
The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and
losses through remeasurements of the net defined liability/ (assets) are recognized in the other comprehensive income and
are not reclassified to profit or loss in subsequent periods. The effect of any plan amendment is recognized in net profits
in the Statement of Profit and Loss.
1.16.2 Provident Fund
Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the eligible employee
and the Company make monthly contributions to this provident fund plan equal to a specified percentage of the covered
employee's salary. Amounts collected under the provident fund plan are deposited in a government administered provident
fund. The Company has no further obligation to the plan beyond its monthly contributions.
1.16.3 Compensated Absences
The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of the
unutilised accumulating compensated absences and utilise it in future periods or receive cash at retirement or termination
of employment. The Company records an obligation for compensated absences in the period in which the employee
renders the services that increases this entitlement. The Company measures the expected cost of compensated absences
as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated
at the end of the reporting period. The Company recognises accumulated compensated absences based on the actuarial
valuation. Non-accumulating compensated absences are recognised in the period in which the absences occur. The
Company recognises actuarial gains and losses immediately in the statement of profit and loss.
1.16.4 Share-Based Payments
The Company recognizes compensation expense relating to share- based payments in Statement of Profit and Loss using
fair value in accordance with Ind AS 102, Share-Based Payments. The estimated fair value of awards in charged to the
Statement of Profit and loss on a straight-line basis over the requisite service period for each separately vesting portion of
the award with the corresponding increase to share options outstanding account.
In respect of options issued to group entities, Company has treated the charge pertaining to the respective entities where
the grantee is providing services, to Deemed Equity Investments.
1.16.5 Short term Employee Benefits:
All employee benefits payable wholly within twelve months of the rendering of services are classified as short term
employee benefits. Benefits such as salaries, allowances, expected cost of bonus etc. are recognised in the period in which
the employee renders the related service.
1.17 Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings
and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to
the interest cost.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset.
All other borrowing costs are expensed in the year they occur.
1.18 Earnings Per Equity Share
Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per
equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted
average number of equity shares considered for deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued on conversion of all dilutive potential equity shares are
adjusted for the proceeds receivables had the equity shares been actually issued at fair value (i.e. the average market
value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning
of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for
any shares splits and bonus share issues including for changes effected prior to the approval of the financial statements by
the Board of directors.
1.19 Statement of Cash Flows
Cash flows are reported using the indirect method, whereby profit/(loss) for the period is adjusted for the effects of
transaction 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 flow from operating, investing and
financing activities of the Company are segregated.
1.20 Provisions and Contingencies
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event; it
is probable that the Company will be required to settle the obligation in respect of which a reliable estimate can be made
of the amount of the obligation.
The amount recognised as a provision is the management's best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the
present value of those cash flows (when the effect of the time value of money is material).
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot
be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow
of resources embodying economic benefits is remote, no provision or disclosure is made.
Contingent assets: A contingent asset is a possible asset that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity. Contingent assets are not recognised but disclosed only when an inflow of economic benefits is probable.
1.21 Cash dividend to the equity holders of the Company
The Company recognises a liability to make cash distributions to equity holders of the Company when the distribution
is authorised, and the distribution is no longer at the discretion of the Company. Final dividends on shares is recorded
as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of
declaration by the Company's Board of Directors.
1.22 Exceptional items
Exceptional Items include income/expenses that are considered to be part of ordinary activities, however of such significance
and nature that separate disclosure enables the users of financial statements to understand the impact in more meaningful
manner. Exceptional Items are identified by virtue of their size, nature and incidence.
1.23 Segment Reporting:
Operating Segments are reported in a manner consistent with the reporting to the Chief Operating Decision Maker (CODM).
The CODM as identified by the Board of Directors include the Executive and the other Directors but do not include the
Independent Directors.
1.24 Prior Period Adjustments
Errors of material amount relating to prior period(s) are disclosed by a note with nature of prior period errors, amount of
correction of each such prior period presented retrospectively, to the extent practicable along with change in basic and
diluted earnings per share. However, where retrospective restatement is not practicable for a particular period then the
circumstances that lead to the existence of that condition and the description of how and from where the error is corrected
are disclosed in Notes on Accounts.
1.25 Recent pronouncements
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. For the year ended March 31, 2025, MCA has notified
Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any significant impact in its financial statements.
• During the years ended 31 March 2025 & 31 March 2024, the Company has incurred expenses amounting to ? 0.25 Mn
and ? 1.68 Mn respectively on short-term leases and leases of low-value assets. For the years ended 31 March 2025 &
31 March 2024, the total cash outflows for leases, including short-term leases and low-value assets amounted to ? 0.25
Mn and ? 3.26 Mn respectively.
• Lease contracts entered into by the Company primarily pertains to buildings taken on lease to conduct its business in
the ordinary course.
• Terms of Operating Lease
Lease Liability to be paid over the lease tenure at the agreed monthly rental
Weighted average incremental borrowing rate used is 10% p.a.
i) In the EGM held on October 9, 2024, the shareholders have passed a special resolution approving the proposal
of disinvestment of 100% stake held in Ecron Acunova Limited (EAL) and the sale transaction has been
successfully completed in Q3 of FY 2025 and excess of carrying value over the sale proceeds has been impaired
during the year.
ii) During the previous year FY 2023-24, the Company has acquired the stake held by Ecron Acunova Limited in Navitas
LLP for ? 9.99 Mn. With effect from 1st January 2024, the Company holds 99.99% stake in Navitas LLP and Ecron Acunova
Limited holds 0.01% stake in Navitas LLP.
@ Refer Material Accounting Policy No 1.9. The recoverable amount is estimated based on the Value in Use and accordingly
impairment loss is recognised in the Statement of Profit and Loss as an exceptional item in Note No 2.24. Factors like a
significant decline in budgeted net cash flows or operating profit and significant increase in operating loss and loss of
business led to the recognition of impairment loss.
(g) Employee Stock Options
The Company measures the compensation expenses relating to employee stock options using the fair value method. The fair
value is treated as employee compensation expenses and charged to Statement of Profit and Loss. The value of the options is
treated as a part of employee compensation in the financial statements and is amortised over the vesting period.
Pursuant to Clause 5(3) of SEBI (Share Based Employee Benefits) Regulations, 2014 and para 10 of Employees Stock
Option Scheme - 2007 of the Company, Remuneration and Compensation Committee is authorised to make a fair
and reasonable adjustment to the number of options and to the exercise price in respect of options granted to the
employees under the plan in the case of Corporate actions such as right issue, bonus issue, merger, etc.
On December 10, 2007, the Company established Employees Stock Option Scheme - 2007 (ESOS -2007 or Scheme).
Under the Scheme, the Company is authorised to issue up to 2,400,000 (originally 240,000) equity settled options
of ? 1/- each (originally ? 10/- each) to employees (including employees of the subsidiaries). Remuneration and
Compensation Committee has been constituted by the Board of Directors of the Company to administer the Scheme.
(a) Capital Reserve
The Company recognises profit or loss on purchase, sale, issue or cancellation of the Company's own equity instruments
is transferred to capital reserve.
(b) Capital Redemption Reserve
Capital Redemption Reserve is created to the extent of the nominal value of the share capital extinguished.
(c) General Reserve
General reserve represents appropriation of profits. This represents a free reserve and is available for dividend
distributions. As the general reserve is created by a transfer from one component of equity to another and is not an
item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to the
statement of profit and loss.
(d) Securities Premium
Securities Premium includes:
(i) The difference between the face value of the equity shares and the consideration received in respect of shares
issued;
(ii) The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to
Stock Options Scheme.
This reserve is utilised in accordance with the provisions of the Act.
(e) Share Options Outstanding Account
The Share options outstanding account is used to record the fair value of equity- settled share-based payment
transactions with employees. The amounts recorded in share options outstanding account are transferred to securities
premium upon exercise of stock options and transferred to general reserve on account of stock options not exercised
by employees.
(f) Other Items of Other Comprehensive Income
Other items of other comprehensive income consist of currency translation and re-measurement of net defined benefit
liability net of taxes.
(g) Retained Earnings
Retained earnings comprise of the Company's undistributed earnings after taxes.
• The amounts presented above is the gross estimated liability. Amount adjusted against refund due for other years ? 6.59
Mn (? 6.59 Mn). The ongoing disputes pertain to various assessment years from 2011-12 to 2020-21. The matters under
dispute pertain to transfer pricing, tax treatment of product development expenses claimed as deductions, or allowances
and Section 14A disallowance. These demands are being contested by the Company based on management evaluation,
advice of tax consultants and legal advice obtained. No provision has been made in the books of accounts. The Company
has filed appeals against such orders with the appropriate authorities. The Company has received notices and inquiries from
income tax authorities related to the Company's operations in the jurisdictions it operates in. The Company has evaluated
these notices, responded appropriately, and believes there are no financial implications as on date.
*Appeal filed before GST Appellate Authority, Chennai, subsequent to the reporting period. The Company has filed grounds
of appeal appropriately and believes there are no financial implications as on date.
5. Disclosure pursuant to Ind AS 19 "Employee Benefits"
• Defined Contribution plans:
Employers Contribution to Employees Provident Fund recognized as expense for the year is ? 0.48 Mn (Previous Year- ?1.01 Mn)
• Defined Benefit plans:
The Company has two Defined Benefit Plans - Gratuity & Leave Encashment - Unfunded
The Company operates a gratuity plan covering qualifying employee. The benefit payable is the greater of the amount
calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee
Qualitative Disclosures - Lease Liability
The leased building premises are used to carry out business operations and related support activities. The future cash
outflows on lease payments are fixed in nature, subject to escalations. The lease agreements tenor extensions and
termination conditions are subject to respective lease agreements.
8. Financial Instruments
(a) Capital Management
The Company's capital management is intended to maximise the return to shareholders for meeting the long-term and
short-term goals of the Company through the optimisation of the debt and equity balance.
The Company determines the amount of capital required on the basis of annual and long-term operating plans and
strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings.
The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall
debt portfolio of the Company.
For the purpose of the capital management, capital includes paid up equity share capital, securities premium and all
other reserves attributable to the equity shareholders. Net debt includes all the long-term and short-term borrowings
net off cash and cash equivalents
(b) Accounting Classification and Fair Values
Carrying amounts and fair values of financial assets and financial liabilities are presented below. It does not include the
fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value.
Fair value hierarchy
For financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree
to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:
Ý Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date;
Ý Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and
The following table provides the fair value measurement hierarchy of the Company's assets and liabilities
(c) Financial Risk Management Policies
The Company is exposed primarily to fluctuations in foreign currency exchange rates, credit, liquidity and interest
risks, which may adversely impact the fair value of its financial instruments. The Company has a risk management
policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by
the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial
environment and to mitigate potential adverse effects on the financial of the Company.
(i) Market Risk
The Company's exposure to market risk is primarily on account of foreign currency exchange rate risk.
U Exposure to Currency Risk
Exposure in different currencies converted to functional currency i.e. '?'.
(ii) Interest rate risk
Company's interest rate risk arises from borrowings and investment in short-term deposits. The Company adopts
a policy to ensure that company maintains a combination of fixed and floating rate debt. However, the Company
does not have any borrowings or short- term deposits; it is not exposed to interest rate risk.
(iii) Credit Risk
Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as
well as concentration of risks. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its investing activities including deposits with banks.
The gross carrying amount of financial assets, net of any impairment losses recognised represents the maximum
credit exposure.
U cash and casn equivalents
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks
and financial institutions with high credit ratings assigned by domestic credit rating agencies. Counterparty
credit limits are reviewed by the Company periodically and the limits are set to minimize the concentration
of risks and therefore mitigate financial loss through counterparty's potential failure to make payments. One
bank individually accounted for more than 10% of the Company's deposits and bank balances for the years
ended 31 March 2025 and 31 March 2024. None of the other financial instruments of the Company result in
material concentration of credit risk.
U Other Financial Assets
Where Management estimates any major risk with respect to its recovery, financial loss on financial assets is
estimated and impaired.
(iv) Liquidity Risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company also constantly monitors funding options available in the debt and capital markets with a view to maintain
financial flexibility.
The table below summarizes the maturity profile remaining contractual maturity period at the balance sheet date for
its financial liabilities based on the undiscounted cash flows.
9. Segment Reporting
Operating Segments are reported in a manner consistent with the reporting to the Chief Operating Decision Maker (CODM).
The CODM as identified by the Board of Directors include the Executive and the other Directors but do not include the
Independent Directors.
The company on a standalone basis operates in the business segment of promotion of services related to Life Sciences
and hence there is only one business segment. The company on a standalone basis is primarily operating in India, which is
considered as single geographical segment. Accordingly, segment information has not been separately disclosed.
11. Additional Disclosures
a) Details of Benami Property Held:
No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
b) Wilful Defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
c) Relationship With Struck Off Companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
d) Details of Crypto Currency Or Virtual Currency:
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
e) Compliance With Number of Layers Of Companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
f) Undisclosed Income
The Company does not have any transaction 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).
g) Valuation of Property, Plant and Equipment & Intangible Asset
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or
both during the current or previous year.
h) Registration of Charges or Satisfaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory
period except for the corporate guarantee given to IndusInd Bank Limited for the loans availed by erstwhile subsidiary
Ecron Acunova Limited which has been duly settled during the reporting period.
i) Others
There are no funds that 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 persons or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, 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
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
There have been no funds that have been received by the Company from any persons or entities, including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company 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.
13. Going Concern Assumption
The Company has incurred huge loss after tax of INR 697.36 Million for the year ended March 31,2025 (INR 2072.51 Million
for the year ended March 31, 2024) on account of divestment of Ecron Acunova Limited and recognition of impairment
loss on certain financial assets resulting in substantial reduction in networth of the Company as on March 31, 2025 and
there has been significant reduction in the volume of business. Furthermore, the Company has significant unpaid statutory
dues. The cumulative effect of these factors may indicate the existence of a material uncertainty that may cast significant
doubt on the Company's ability to continue as a going concern. However, the Standalone Financial Results have been
prepared on a "going concern basis" and no adjustment has been made to the carrying value of assets and liabilities, as
the Company, during the reporting period has successfully divested its subsidiary Ecron Acunova Limited, the proceeds
of which has addressed the immediate liquidity requirements to meet the pending statutory and debt obligations
through this Financial Year and the Company has paid some of the statutory dues during the reporting period. Further,
the Company has pragmatically initiated conversations for diversification of operations to other verticals as subject to
current noncompete obligations applicable in the CRO industry. The company's strategy is to solicit mutually rewarding
business partnerships/Mergers & Acquisitions in non-cash transactions and a positive closure of the deal is expected in
the Financial Year 2026.
14. Subsequent Events
There are no significant subsequent events that would require adjustments or disclosures in the standalone financial
statements as on the balance sheet date.
15. Others
a. Impact of Code on Social Security, 2020
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for
the Code on Social Security, 2020 on November 13, 2020. The Company will assess the impact and its evaluation once
the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in
which, the Code becomes effective and the related rules to determine the financial impact are published.
b. Compliance regarding appointment of Company Secretary and Executive Director
Pursuant to Section 203 of the Companies Act, 2013, the company is required to have a whole time Company Secretary
and further as per Regulation 6(1A) of SEBI LODR, any vacancy in the office of the Compliance Officer shall be filled
by the listed entity at the earliest and in any case not later than three months from the date of such vacancy. No
Company Secretary has been appointed as at the end of the financial year for the vacancy created on March 31, 2024
by the resignation of the erstwhile Company Secretary. However, subsequent to the reporting date, the Company has
appointed a compliance officer on May 27, 2025. Further, during the quarter ended December 31, 2024, the executive
director has resigned and no appointment has been made by the Company as on the date of approving these financial
results and hence the Company does not have the optimum combination of executive and non-executive directors as
stipulated under Regulation 17 of SEBI LODR. However, the Company is confident of appointing an executive director
at the earliest.
16. Disinvestment in Wholly owned subsidiary - Ecron Acunova Limited
Pursuant to the recommendation given by the committee of independent directors in Q1 of FY 2025, the Company has
immediately classified the non-current investment held in Ecron Acunova Limited as assets held for sale in accordance with
Ind AS 105. The Board in its meeting held on 13th September 2024 has approved the sale of 100% stake held in EAL for
an approximate value of USD 6.50 million (on a debt-free and cash-free balance sheet and subject to appropriate level of
working capital) subject to the shareholders' approval. In the EGM held on October 9, 2024, the shareholders have passed
a special resolution approving the proposal of disinvestment of 100% stake held in EAL and the sale transaction has been
successfully completed in Q3 of FY 2025. In accordance with Ind AS 105, the Company has disclosed in the statement of
profit and loss the post-tax loss recognised on the measurement to fair value less costs to sell as ascertained/incurred
upto the end of the financial year upon the disposal of the assets under the head discontinued operations. Further, the
Statement of Profit or Loss year ended March 31, 2024 were re-presented in respect of non-current asset held for sale in
accordance with the Standard.
17. Comparative Figures
Corresponding figures for previous year presented have been regrouped, where necessary, to conform to the current year's
classification.
For Sundar Srini & Sridhar For and on behalf of the Board of Directors of
Chartered Accountants TAKE Solutions Limited
Firm Registration Number: 004201S CIN: L63090TN2000PLC046338
V. Vijay Krishna Srinivasan H.R Cecily Dheepa
Partner Director Director
Membership Number: 216910 DIN: 00130277 DIN: 07900799
V. Venkatesan Sonia Bhimrajka
Place: Chennai Chief Financial Officer and Director Company Secretary
Date : May 30, 2025 DIN : 00194600 Membership Number: F6911
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