Provisions and contingent liabilities

A provision is recognized when the
Company has a present obligation as a
result of past event and it is probable that
an outflow of resources will be required to
settle the obligation, in respect of which a
reliable estimate can be made. Provisions
(excluding retirement benefits and
compensated absences) 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 estimates. Contingent liabilities are not
recognized in the financial statements. A
contingent asset is neither recognized nor
disclosed in the financial statements (Refer
Note 33).

Useful lives of property, plant and
equipment

The Company reviews the useful life of
property, plant and equipment at the end
of each reporting period. This reassessment
may result in change in depreciation
expense in future periods (Refer Note 2.11).

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 2.13.

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 dividends are recorded as a liability on
the date of declaration by the Company’s
Board of Directors (Refer Note 42).

Leases

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgement. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and
the applicable discount rate.

The Company determines the lease term
as the non-cancellable period of a lease,
together with both periods covered by an
option to extend the lease if the Company

is reasonably certain to exercise that
option; and periods covered by an option
to terminate the lease if the Company is
reasonably certain not to exercise that
option. In assessing whether the Company
is reasonably certain to exercise an option
to extend a lease, or not to exercise an
option to terminate a lease, it considers all
relevant facts and circumstances that create
an economic incentive for the Company to
exercise the option to extend the lease, or
not to exercise the option to terminate the
lease. The Company revises the lease term
if there is a change in the non-cancellable
period of a lease.

The discount rate is generally based on the
incremental borrowing rate specific to the
lease being evaluated or for a portfolio of
leases with similar characteristics (Refer
Note 2.6).

2.4 Revenue recognition

The Company earns revenue primarily
from providing information technology,
engineering design, systems integration
and support services, sale of licenses and
maintenance of equipment. The Company
recognizes revenue as follows
Revenue is recognised upon transfer of
control of promised products or services
to customers in an amount that reflects the
consideration which the Company expects
to receive in exchange for those products
or services.

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

• Revenue related to fixed price
maintenance and support services
contracts where the Company is ready
to provide services is recognised based
on time elapsed mode and revenue
is straight lined over the period of
performance.

• In respect of other fixed-price contracts,
revenue is recognised using percentage-
of-completion method ('POC method’)
of accounting with contract cost
incurred determining the degree
of completion of the performance
obligation. The contract cost used in
computing the revenues include cost of
fulfilling warranty obligations.

• Revenue from the sale of distinct
internally developed software and
manufactured systems and third party
software is recognised upfront at
the point in time when the system/
software is delivered to the customer.
In cases where implementation and/
or customisation services rendered
significantly modifies or customises
the software, these services and
software are accounted for as a single
performance obligation and revenue is
recognised over time on a POC method.

• Revenue from the sale of distinct third
party hardware is recognised at the
point in time when control is transferred
to the customer.

• The solutions offered by the Company
may include supply of third-party
equipment or software. In such cases,
revenue for supply of such third party
products are recorded at gross or
net basis depending on whether the
Company is acting as the principal
or as an agent of the customer. The
Company recognises revenue in the
gross amount of consideration when
it is acting as a principal and at net
amount of consideration when it is
acting as an agent.

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

Revenue also excludes taxes collected from
customers.

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

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

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

Use of significant judgements in revenue
recognition

• The Company’s contracts with

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

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

• The Company uses judgement to
determine an appropriate standalone
selling price for a performance
obligation. The Company allocates the
transaction price to each performance
obligation on the basis of the relative
stand-alone selling price of each distinct
product or service promised in the
contract. Where standalone selling price
is not observable, the Company uses the
expected cost plus margin approach to
allocate the transaction price to each
distinct performance obligation.

• The Company exercises judgement in
determining whether the performance
obligation is satisfied at a point in time
or over a period of time. The Company

considers indicators such as how
customer consumes benefits as services
are rendered or who controls the asset
as it is being created or existence
of enforceable right to payment for
performance to date and alternate use
of such product or service, transfer
of significant risks and rewards to the
customer, acceptance of delivery by
the customer, etc.

• Contract fulfilment costs are generally
expensed as incurred except for
certain software licence costs which
meet the criteria for capitalisation. The
assessment of this criteria requires the
application of judgement, in particular
when considering if costs generate
or enhance resources to be used to
satisfy future performance obligations
and whether costs are expected to be
recovered (Refer note 8).

2.5 Other income

I nterest income is accounted for using the
effective interest method.

Export benefits are accounted for, in the year
of exports, based on eligibility and when
there is no uncertainty in receiving the same.
Foreign currency gains and losses are
reported on net basis

2.6 Leases
Company as a lessee

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:

• the contract involves the use of an
identified asset;

• t he Company has the right to obtain
substantially all the economic benefits
from use of the asset throughout the
period of use; and

• the Company has the right to direct the
use of the asset

The Company accounts for each lease
component within the contract as a lease
separately from non-lease components of
the contract and allocates the consideration
in the contract to each lease component
on the basis of the relative stand-alone
price of the lease component and the
aggregate stand-alone price of the non¬
lease components.

The Company recognises right-of-use
asset representing its right to use the
underlying asset for the lease term at the
lease commencement date. The cost of the
right-of-use asset measured at inception
shall comprise of the amount of the initial
measurement of the lease liability adjusted
for any lease payments made at or before
the commencement date less any lease
incentives received, plus any initial direct
costs incurred and an estimate of costs to
be incurred by the lessee in dismantling
and removing the underlying asset or
restoring the underlying asset or site on
which it is located. The right-of-use assets
is subsequently measured at cost less any
accumulated depreciation, accumulated
impairment losses, if any and adjusted for
any remeasurement of the lease liability.
The right-of-use assets is depreciated
using the straight-line method from the
commencement date over the shorter of
lease term or useful life of right-of-use asset.
The estimated useful lives of right-of-use
assets are determined on the same basis
as those of property, plant and equipment.
Right-of-use assets are tested for impairment
whenever there is any indication that their
carrying amounts may not be recoverable.
Impairment loss, if any, is recognised in the
statement of profit and loss.

The Company measures the lease liability at
the present value of the lease payments that

are not paid at the commencement date of
the lease. The lease payments are discounted
using the interest rate implicit in the lease,
i f that ra te can be rea di ly determined. If
that rate cannot be readily determined,
the Company uses incremental borrowing
rate. For leases with reasonably similar
characteristics, the Company, on a lease by
lease basis, may adopt either the incremental
borrowing rate specific to the lease or the
incremental borrowing rate for the portfolio
as a whole. The lease payments shall include
fixed payments, variable lease payments,
residual value guarantees, exercise price of
a purchase option where the Company is
reasonably certain to exercise that option
and payments of penalties for terminating
the lease, if the lease term reflects the lessee
exercising an option to terminate the lease.
The lease liability is subsequently remeasured
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 or to reflect revised in¬
substance fixed lease payments.

The Company recognises the amount of
the re-measurement of lease liability as
an adjustment to the right-of-use asset.
Where the carrying amount of the right-of-
use asset is reduced to zero and there is a
further reduction in the measurement of the
lease liability, the Company recognises any
remaining amount of the re-measurement in
statement of profit and loss.

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

2.7 Foreign currency

The functional currency of the Company is
Indian Rupee.

I ncome and expenses in foreign currencies
a re recorded at excha nge ra tes preva i li ng
on the date of the transaction. Foreign
currency monetary assets and liabilities are
translated at the exchange rate prevailing
on the balance sheet date and exchange
gains and losses arising on settlement and
restatement are recognized in the statement
of profit and loss.

Non-monetary assets and liabilities that
are measured in terms of historical cost in
foreign currencies are not translated.

2.8 Taxes

I ncome tax expense comprises current tax
expense and the net change in the deferred
tax asset or liability during the year.
Current and deferred tax are recognized in
statement of profit or loss, except when they
relate to items that are recognized in other
comprehensive income or directly in equity,
in which case, the current and deferred tax
are also recognized in other comprehensive
income or directly in equity, respectively.
Current income taxes

Current income tax for the current and
prior periods are measured at the amount
expected to be recovered from or paid
to the taxation authorities based on the
taxable income for that period and reflects
the uncertainty related to income tax, if any.
The tax rates and tax laws used to compute
the amount are those that are enacted
by the balance sheet date. 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.

The current income tax expense includes
income taxes payable by the Company

and its branches in India and overseas. The
current tax payable by the Company in
India is Indian income tax payable for their
worldwide income after taking credit for
tax relief available for export operations in
Special Economic Zones (SEZs).

Current income tax payable by overseas
branches of the Company is computed in
accordance with the tax laws applicable
in the jurisdiction in which the respective
branch operates. The taxes paid are
generally available for set off against the
Indian income tax liability of the Company’s
worldwide income.

Advance taxes and provisions for current
income taxes are presented in the balance
sheet after off-setting advance tax paid and
income tax provision arising in the same
tax jurisdiction and where the relevant tax
paying units intends to settle the asset and
liability on a net basis.

Deferred income taxes
Deferred income tax is recognized using the
balance sheet approach. Deferred income
tax assets and liabilities are recognized for
deductible and taxable temporary differences
arising between the tax base of assets and
liabilities and their carrying amount, 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 or loss at the
time of the transaction.

Deferred income tax assets are recognized
to the extent that it is probable that taxable
profit will be available against which the
deductible temporary differences and the
carry forward of unused tax credits and
unused tax losses can be utilized.

The carrying amount of deferred income
tax assets is reviewed at each reporting
date and reduced to the extent that it is
no longer probable that sufficient taxable

profit will be available to allow all or part of
the deferred income tax asset to be utilized.
Deferred tax assets and liabilities are
measured using substantively enacted tax
rates expected to apply to taxable income in
the years in which the temporary differences
are expected to be received or settled.

For operations carried out in SEZs, deferred
tax assets or liabilities, if any, have been
established for the tax consequences of
those temporary differences between the
carrying values of assets and liabilities and
their respective tax bases that reverse after
the tax holiday ends.

Deferred tax assets and liabilities are offset
when they relate to income taxes levied by
the same taxation authority and the relevant
entity intends to settle its current tax assets
and liabilities on a net basis.

Minimum Alternative Tax (MAT) paid in
accordance with the tax laws in India, which
is likely to give future economic benefits
in the form of availability of set off against
future income tax liability. Accordingly,
MAT is recognized as deferred tax asset in
the balance sheet when the asset can be
measured reliably and it is probable that the
future economic benefit associated with the
asset will be realized.

Special Economic Zone re-investment
A portion of the profits of the Company’s
India operations are exempt from Indian
income taxes being profits attributable
to export operations from undertakings
situated in SEZ. Under the Special Economic
Zone Act, 2005 scheme, units in designated
special economic zones providing service
on or after April 1, 2005 will be eligible for
a deduction of 100 percent of profits or
gains derived from the export of services
for the first five years from commencement
of provision of services and 50 percent
of such profits and gains for a further five
years. The tax benefits are also available for

a further five years post the initial ten years
subject to the creation of SEZ Reinvestment
Reserve which is required to be spent
within 3 financial years in accordance with
requirements of the tax regulations in India.
During the year, the Company has created
' 2,456,44 lakhs (March 2024 - ' 2,533.58
lakhs) as SEZ reinvestment reserve for one
its such unit which entered 12th year of
operations.

2.9 Inventories

Inventory comprise of computer systems
and software, components and spares.
Components and spares are valued at lower
of cost and net realizable value.

Cost is determined on the basis of specific
identification method.

Computer systems and software,
components and spares intended for
customer support are written off over the
effective life of the systems maintained, as
estimated by the management.

2.10 Financial instruments

Financial assets and liabilities are recognized
when the Company becomes a party to the
contractual provisions of the instrument.
Financial assets and liabilities are initially
measured at fair value, except for trade
receivables which are initially measured at
transaction price. Transaction costs that
are directly attributable to the acquisition
or issue of financial assets and financial
liabilities (other than financial assets and
financial liabilities at fair value through profit
or loss) are added to or deducted from the
fair value measured on initial recognition of
financial asset or financial liability.

Cash and cash equivalents
Cash comprises cash on hand and demand
deposits with banks. Cash equivalents
are short- term balances (with an original
maturity of three months or less from the
date of acquisition), highly liquid investments

that are readily convertible into known
amounts of cash and which are subject to
insignificant risk of changes in value.
Financial assets at amortized cost
Financial assets are subsequently measured
at amortized cost if these financial assets
are held within a business whose objective
is to hold these assets 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.

Financial assets at fair value through other
comprehensive income
Financial assets are measured at fair value
through other comprehensive income if
these financial assets are held within a
business whose objective is achieved by
both collecting contractual cash flows and
selling financial assets and the contractual
terms of the financial asset gives rise on
specified dates to cash flows that are solely
payments of principal and interest on the
principal amount outstanding.

Financial assets at fair value through profit
or loss

Financial assets are measured at fair value
through profit or loss ('FVTPL’’) unless it is
measured at amortized cost or at fair value
through other comprehensive income on
initial recognition. The transaction costs
directly attributable to the acquisition of
financial assets and liabilities at fair value
through profit or loss are immediately
recognized in profit or loss.

Financial liabilities at fair value through
profit or loss

Financial liabilities are classified as
measured at amortised cost or FVTPL. A
financial liability is classified as at FVTPL
if it is classified as held for trading, or it is
a derivative or it is designated as such on
initial recognition. Financial liabilities at

FVTPL are measured at fair value and net
gains and losses, including any interest
expense, are recognised in profit or loss.
Other financial liabilities are subsequently
measured at amortised cost using the
effective interest method. Interest expense
and foreign exchange gains and losses are
recognised in profit or loss. Any gain or loss
on derecognition is also recognised in profit
or loss.

Derivative financial instruments

The Company is exposed to foreign currency
fluctuations on foreign currency assets and
liabilities. The Company holds derivative
financial instruments such as foreign
exchange forward contracts to mitigate the
risk of changes in exchange rates on foreign
currency exposures. The counterparty
for these contracts is generally a bank.
Derivatives are recognized and measured at
fair value. Attributable transaction costs are
recognized in the statement of profit and
loss as expenses. Subsequent changes in
fair value of such derivative instruments are
recognized in profit or loss.

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.

Derecognition
Financial assets

The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers
the rights to receive the contractual cash
flows in a transaction in which substantially
all of the risks and rewards of ownership
of the financial asset are transferred or in
which the Company neither transfers nor

retains substantially all of the risks and
rewards of ownership and does not retain
control of the financial asset.

If the Company enters into transactions
whereby it transfers assets recognised on
its balance sheet, but retains either all or
substantially all of the risks and rewards
of the transferred assets, the transferred
assets are not derecognised.

Financial liabilities

The Company derecognises a financial
liability when its contractual obligations are
discharged or cancelled, or expire.

The Company also derecognises a financial
liability when its terms are modified and the
cash flows under the modified terms are
substantially different. In this case, a new
financial liability based on the modified
terms is recognised at fair value. The
difference between the carrying amount of
the financial liability extinguished and the
new financial liability with modified terms is
recognised in profit or loss.

2.11 Property, plant and equipment

Property, plant and equipment are stated
at costs less accumulated depreciation
(other than freehold land) and impairment
loss, if any.

The cost includes purchase price net of
any trade discounts and rebates, any
import duties and other taxes (other than
those subsequently recoverable from the
tax authorities), any directly attributable
expenditure on making the asset ready for
its intended use, other incidental expenses
and interest on borrowings attributable to
acquisition of qualifying fixed assets up to
the date the asset is ready for its intended
use. The cost of an item of property, plant
and equipment shall be recognised as an
asset if, and only if it is probable that future
economic benefits associated with the item
will flow to the Company and the cost of the
item can be measured reliably. Subsequent

expenditure on fixed assets after its
purchase/completion is capitalized only
if such expenditure results in an increase
in the future benefits from such asset
beyond its previously assessed standard of
performance.

The Company identifies and determines
cost of each component/part of property,
plant and equipment separately, if the
component/part has a cost which is
significant to the total cost of the property,
plant and equipment and has useful life
that is materially different from that of the
remaining asset.

An item of property, plant and equipment
and any significant part initially recognised
is derecognised upon disposal or when
no future economic benefits are expected
from its use. Gains or losses arising from
de-recognition of property, plant and
equipment and intangible assets are
measured as the difference between the net
disposal proceeds and the carrying amount
of property, plant and equipment and are
recognized in the statement of profit and
loss when the property, plant and equipment
is derecognized.

Depreciation is provided for property, plant
and equipment on the straight-line basis
over the estimated useful life from the date
the assets are ready for intended use. The
estimated useful lives, residual values and
depreciation method are reviewed at the
end of each reporting period, with the effect
of any changes in estimate accounted for on
a prospective basis.

The estimated useful life on a straightline
basis of amortization is mentioned below:

*The Management believes that the useful
lives as given below best represents the
period over which the management expects
to use these assets based on an internal
assessment and technical evaluation where
necessary. Hence, the useful lives of some of
these assets is different from the useful lives
as prescribed under part C of Schedule II of
the Companies Act.

Leasehold improvements are depreciated
over the lower of the lease term and their
useful lives.

Advances paid towards the acquisition of
property, plant and equipment outstanding
at each balance sheet date are disclosed
under 'other assets’. The cost of property,
plant and equipment not ready to use before
the balance sheet date is disclosed under
'Capital work in progress’. Subsequent
expenditures relating to property, plant
and equipment is 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. The cost and related
accumulated depreciation are eliminated
from the financial statements upon sale or
retirement of the asset.

Changes in the expected useful life or the
expected pattern of consumption of future
economic benefits embodied in the asset
are considered to modify the amortization
period or method, as appropriate, and are
treated as changes in accounting estimates.
Capital work-in-progress
Amount paid towards the acquisition of
property, plant and equipment outstanding
as of each reporting date and the cost of

property, plant and equipment not ready for
intended use before such date are disclosed
under capital work-in-progress.

The capital work- in-progress is carried
at cost, comprising direct cost, related
incidental expenses and attributable interest.

2.12 Intangible assets

I ntangible assets purchased are measured
at cost as of the date of acquisition, as
applicable, less accumulated amortization
and accumulated impairment, if any.
Intangible assets are amortized on a straight
line basis over their estimated useful lives
from the date that they are available for use.
The estimated useful lives of the intangible
assets and the amortization period are
reviewed at the end of each financial year
and the amortization period is revised to
reflect the changed pattern, if any.

The estimated useful life on a straightline
basis of amortization is mentioned below:

2.13 Employee benefits

Employee benefits include contribution
to provident fund, superannuation fund,
gratuity fund, compensated absences,
pension and employee state insurance
scheme.

Short-term employee benefits

All employee benefits payable wholly within
twelve months of rendering the service are
classified as short-term employee benefits.
Benefits such as salaries, wages etc. and the
expected cost of ex-gratia are recognised in
the period in which the employee renders
the related service. A liability is recognised
for the amount expected to be paid when
there is a present legal or constructive
obligation to pay this amount as a result of
past service provided by the employee and
the obligation can be estimated reliably.

Defined benefit plans

Gratuity and Pension are defined benefit
plans, the cost of providing benefits is
determined using the Projected Unit Credit
Method, with actuarial valuations, being
carried out at the date of each balance
sheet date. Remeasurement, comprising
actuarial gains and losses, the effect of
the changes to the asset ceiling and the
return on plan assets (excluding interest),
is reflected immediately in the balance
sheet with a charge or credit recognised in
other comprehensive income in the period
in which they occur. Past service cost, both
vested and unvested, is recognized as
an expense at the earlier of (a) when the
plan amendment or curtailment occurs;
and (b) when the entity recognises related
restructuring costs or termination benefits.
The retirement benefit obligations
recognized in the balance sheet represents
the present value of the defined obligations
reduced by the fair value of scheme
assets. Any, asset resulting from this
calculation is limited to the present value
of available refunds and reductions in
future contributions to the scheme. Under
a defined benefit plan, it is the Company’s
obligation to provide agreed benefits to
the employees. The related actuarial and
investment risks fall on the Company.
Defined contribution plans
Contributions to defined contribution plans
like provident fund and superannuation,
funds are recognized as expense when
employees have rendered services entitling
them to such benefits.

Compensated absences
Compensated absences which are expected
to occur within twelve months after the
end of the period in which the employee
renders the related services are stated as
undiscounted liability at the balance sheet
date. Compensated absences which are not

that period and is recognized in employee
benefits expense.

The dilutive effect of outstanding options
is reflected in the computation of diluted
earnings per share.

2.14 Earnings per share
Basic Earnings Per Share

Basic earnings per share is computed
by dividing profit or loss attributable to
equity shareholders of the Company by the
weighted average number of equity shares
outstanding during the year.

Diluted Earnings Per Share
Diluted earnings per share is computed
by dividing the profit (considered in
determination of basic earnings per share)
after considering the effect of interest
and other financing costs or income (net
of attributable taxes) associated with
dilutive potential equity shares by the
weighted average number of equity shares
considered for deriving basic earnings per
share adjusted for the weighted average
number of equity shares that would have
been issued upon conversion of all dilutive
potential equity shares.

2.15 Impairment

Financial assets (other than those carried
at fair value)

The Company assesses at each date of
balance sheet whether a financial asset or
a group of financial assets is impaired. Ind
AS 109 requires expected credit losses to
be measured through a loss allowance. The
Company recognizes lifetime expected
losses for all contract assets and/or all
trade receivables that do not constitute a
financing transaction. For all other financial
assets, expected credit losses are measured
at an amount equal to the 12 month expected
credit losses or at an amount equal to the
life time expected credit losses if the credit

risk on the financial asset has increased
significantly since initial recognition.
Non-financial assets

Property, plant and equipment and
Intangible assets

Property, plant and equipment and

intangible assets with finite life are evaluated
for recoverability whenever there is any
indication that their carrying amounts may
not be recoverable. If any such indication
exists, the recoverable amount (i.e. 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
cash generating unit (CGU) to which the
asset belongs.

If the recoverable amount of an asset
(or CGU) is estimated to be less than its
carrying amount, the carrying amount of the
asset (or CGU) is reduced to its recoverable
amount. An impairment loss is recognized in
the statement of profit and loss.

2.16 Recent pronouncements

Ministry of Corporate Affairs ("MCA”)
notifies new standard 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. standards or
amendments to the existing standards
applicable to the Company.

The tax rate used for 2024-25 reconciliation above is the corporate tax rate of 34.944% (PY 34.944%)
payable by corporate entities in India on taxable profits under Indian tax law.

The Company benefits from the tax holiday available for units set up under the Special Economic Zone
Act, 2005. These tax holidays are available for a period of fifteen years from the date of commencement
of operations. Under the SEZ scheme, the units which begins providing services on or after April 1, 2005
will be eligible for deductions of 100% of profits or gains derived from export of services for the first five
years, 50% of such profit or gains for a further period of five years and 50% of such profits or gains for the
balance period of five years subject to fulfilment of certain conditions. Pune unit 1, Thiruvananthapuram,
Chennai unit and Pune Unit 2, will be eligible for deductions of 100% of profits or gains derived from export
of services for the first five years, 50% of such profit or gains for a further period of five years and 50% of
such profits or gains for the balance period of five years subject to fulfilment of certain conditions.

28. EMPLOYEE BENEFIT PLANS
a. Defined contribution plans

The Company makes contribution to Provident Fund, Superannuation Fund and Employee State
Insurance fund for qualifying employees. Under the Schemes, the Company is required to contribute a
specified percentage of the payroll costs to fund the benefits.

The Company recognised i) ' 5,408.21 lakhs and ' 4,846.56 lakhs for Provident Fund contributions
for the year ended March 31, 2025 and March 31, 2024, respectively. ii) ' 1,116.80 lakhs and ' 1,083.33
lakhs for Superannuation Fund contributions for the year ended March 31, 2025 and March 31, 2024,
respectively. The contributions payable to these plans by the Company are at the rates specified in the
rules of the schemes.

b. Defined benefit plans

The Company offers gratuity (included as part of Contribution to Provident and other funds in Note 25
Employee benefit expenses) to its eligible employees under defined benefit plans.

The gratuity plan provides for a lump sum payment to vested employees at retirement, death while
in employment or on termination of employment of an amount equivalent to 15 days basic salary
payable for each completed year of service. Vesting occurs upon completion of five continuous years
of service. The gratuity fund is managed by third party fund (Life Insurance Corporation of India).

Future mortality assumptions are taken based on the published statistics by the Insurance Regulatory and
Development Authority of India.

The expected benefits are based on the same assumptions as are used to measure the Company’s defined
benefit plan obligations as at March 31, 2025. The Company is expected to contribute ' 3,662.42 lakhs to
defined benefit obligations funds for the year ended March 31, 2026.

The discount rate is based on the prevailing market yields of Government of India securities as at the Balance
sheet date for the estimated term of the obligations. The estimate of future salary increases considered, takes
into account the inflation, seniority, promotion, increments and other relevant factors.

The significant actuarial assumptions for the determination of the defined benefit obligations are discount rate,
expected salary increase and employee attrition. The sensitivity analysis below have been determined based on
reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while
holding all other assumptions constant.

If the discount rate increases (decreases) by 1%, the defined benefit obligations would decrease by ' 704.15
lakhs (increase by ' 806.16 lakhs) as at March 31, 2025. If the expected salary growth increases (decreases) by
1%, the defined benefit obligations would increase by ' 805.03 lakhs (decrease by ' 715.81 lakhs) as at March 31,
2025. If the employee attrition rate increases (decreases) by 1%, the defined benefit obligation would decrease
by ' 3.60 lakhs (decrease by ' 2.01 lakhs).

The sensitivity analysis has been performed based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of
the assumption may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligations
has been calculated using the Projected Unit Credit Method at the end of the reporting period, which is the
same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior
years.

Each year an Asset - Liability matching study is performed in which the consequences of the strategic investment
policies are analysed in terms of risk and return profiles. Investment and contribution policies are integrated
within this study.

(b) Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value
that are either observable or unobservable and consists of the following three levels:

• Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

• Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are
determined in whole or in part using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are
they based on available market data.

The investments included in Level 2 of fair value hierarchy have been valued using quotes available
for similar assets and liabilities in the active market. The investments included in Level 3 of fair value
hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted
investments approximate the fair value because there is a range of possible fair value measurements
and the cost represents estimate of fair value within that range.

The following table summarises financial assets and liabilities measured at fair value on a recurring basis
and financial assets that are not measured at fair value on a recurring basis (but fair value disclosures
are required):

(c) Financial risk management

The Company is exposed primarily to fluctuations in credit, liquidity and market 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 financial liabilities. The risk management
policy is approved by the Board of Directors. The focus of risk management committee is to assess the
unpredictability of the financial environment and to mitigate potential adverse effects on the financial
performance of the Company.

(d) Interest rate risk

The Company’s investments are primarily in fixed rate interest bearing fixed deposits with banks. Hence
the Company is not significantly exposed to interest rate risk.

Credit risk is the risk of financial loss arising from counter party failure to repay or service debt
according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of
default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is
controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom
the credit has been granted after necessary approvals for credit.

Financial instruments that are subject to concentrations of credit risk principally consist of trade
receivables, unbilled revenue, derivative financial instruments, cash and cash equivalents, other bank
balances and other financial assets. Other bank balances include bank deposits include an amount
of ' 1,58,310 lakhs (Previous year ' 1,36,400.00 lakhs) held with four scheduled banks having high
credit-rating which are individually in excess of 10% or more of the Company bank deposits for the
year ended March 31, 2025. Trade receivables- billed and Trade receivables-unbilled include an amount
of ' 26,559.60 lakhs (Previous year ' 22,967.74 lakhs) held with two customers having high credit¬
rating which are individually in excess of 10% or more of Company Trade receivables- billed and Trade
receivables- unbilled for the year ended March 31, 2025.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure to the credit risk was ' 3,00,238.66 lakhs and ' 2,57,976.60 lakhs as at March 31, 2025 and
March 31, 2024, respectively, being the total of the carrying amount of balances principally with banks,
other bank balances, Trade receivables- billed and Trade receivables- unbilled and other financial assets.
The Company’s exposure to customers is diversified and except two customers, no single customer
contributes to more than 10% and 10% of Trade receivables- billed and Trade receivables- unbilled as
at March 31, 2025 and March 31, 2024, respectively.

Geographic concentration of credit risk

The Company also has a geographic concentration of Trade receivables- billed and Trade receivables¬
unbilled (gross and net of allowances) as given below:

Liquidity risk refers to the risk that Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and to ensure that sufficient funds are
available for use as per requirements.

The Company consistently generates sufficient cash flows from operations to meet its financial
obligations as and when they fall due.

The table below provides details regarding the contractual maturities of significant financial liabilities
as at March 31, 2025

(g) Market risk

(a) Foreign currency exchange rate risk:

The fluctuation in foreign currency 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.

Considering the countries and economic environment in which the Company operates, its
operations are subject to risks arising from fluctuations in exchange rates in those countries.
The risks primarily relate to fluctuations in US Dollar, Great Britain Pound and Euro against the
functional currency of the Company.

The Company, as per its risk management policy, uses derivative instruments primarily to cover the
exchange rate risks. Further, any movement in the foreign currency of the various operations of the
Company against major foreign currencies may impact Company’s revenue in international business.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure
to exchange risk. It covers a part of these risks by using derivative financial instruments in line with
its risk management policies.

The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange
rate exposure and a simultaneous parallel foreign exchange rates shift of all the currencies by 10%
against the functional currency of the Company.

The following analysis has been worked out based on the net exposures of the Company as of the
date of balance sheet which could affect the statement of profit and loss and other comprehensive
income and equity. Further the exposure indicated below is mitigated by some of the derivative
contracts entered into by the Company.

The following table sets forth information relating to foreign currency exposures as at March 31,
2025 and March 31, 2024.

1 0% appreciation/depreciation of the respective foreign currencies with respect to functional
currency of the Company would result in decrease/increase in the Company’s profit before tax by
approximately ' 6,635.62 lakhs for the year ended March 31, 2025 and ' 7,427.54 lakhs for the year
ended March 31, 2024 respectively.

-Others include AED, AUD, CAD, JPY, KRW, MYR, SGD, ZAR etc.

The Company uses various derivative financial instruments governed by policies approved by the
board of directors such as foreign exchange forward and option contracts to manage and mitigate
its exposure to foreign exchange rates. The counter party is generally a bank. The Company can
enter into contracts for period up to one year.

The following table presents the aggregate contracted principal amounts of the Company’s
derivative contracts outstanding:

During the years ended March 31, 2025 and March 31, 2024'23,474.13 and ' 14,461.10 of unbilled
revenue (including Contract assets) pertaining to fixed price and fixed time frame contracts as of
April 01, 2024 and April 01, 2023, respectively, has been reclassified to trade receivables upon billing
to customers on completion of milestones. During the years ended March 31, 2025 and March 31, 2024
the Company recognised revenue of ' 5,276.56 and ' 4,203.83 arising from opening uneared revenue
as of April 01, 2024 and April 01, 2023, respectively.

b. Remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction
price yet to be recognised as at the end of the reporting period and an explanation as to when the
Company expects to recognise these amounts in revenue. Remaining performance obligation estimates
are subject to change and are affected by several factors, including terminations, changes in the scope
of contracts, periodic revalidations, adjustment for revenue that has not materialised and adjustments
for currency.

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 recognised corresponds
directly with the value to the customer of the Company’s performance completed to date, typically
those contracts where invoicing is on time and material, unit price basis and no information is provided
about remaining performance obligations at March 31, 2025 that have an original expected duration of
one year or less, as allowed by Ind AS 115.

The aggregate value of performance obligations that are completely or partially unsatisfied as of
March 31, 2025 is ' 18,656.24 lakhs (March 31, 2024: ' 48,798.43 lakhs). Out of this, the Company
expects to recognise revenue of around 89.97% (March 31, 2024: 50.60%) within the next one year
and the remaining thereafter. This includes contracts that can be terminated for convenience without
a substantive penalty since, based on current assessment, the occurrence of the same is expected to
be remote.

Dues to micro and small enterprises have been determined to the extent such parties have been identified
on the basis of information collected by the Management.

37. SEGMENT INFORMATION

The Chief Executive Officer and Managing Director of the Company has been identified as the Chief
Operating Decision Maker (CODM) as defined by Ind AS 108 - operating segments. The CODM evaluates the
Company’s performance and allocates resources based on an analysis of various performance indicators by
industry classes. Accordingly, the segment information has been presented for industry classes.

The Company has identified business segments as its primary segment. Business segments are primarily
system integration & support and software development & services.

Each segment item reported is measured at the measure used to report to the CODM for the purposes of
making decisions about allocating resources to the segment and assessing its performance.

Revenues and expenses directly attributable to segments are reported under each reportable segment. All other
expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.
Assets and liabilities of the Company are used interchangeably amongst segments. Allocation of such assets
and liabilities is not practicable and any forced allocation would not result in any meaningful segregation.
Hence, assets and liabilities have not been identified to any of the reportable segments.

Information about major customers:

The revenues of ' 3,62,329.70 lakhs (Previous year ' 3,45,625.73 lakhs) arising from the software development
and services segment includes ' 1,35,323.92 lakhs (Previous year ' 1,13,865.89 lakhs) representing revenue
of more than 10% of the total revenue of the Company is from two customers.

38. Performance Stock Option Plan (PSOP)

Performance Stock Option Plan (PSOP) - 2023 (the Plan)

Effective March 04, 2023, the Company instituted the Plan. The Board of Directors of the Company and
shareholders authorised to introduce, offer, issue and provide share based options to eligible employees
of the Company at its meeting held on January 25, 2023 and March 04, 2023 respectively. The maximum
number of shares under the 2023 plan shall not exceed 3,11,000 equity shares. Further, the maximum
number of Options that can be granted to any specific Employee during the tenure of this Plan shall not
exceed 20,000 Options.

The options would vest on achievement of defined performance parameters as determined by Nomination
and Remuneration committee. The performance parameters are based on operating performance metrics
of the Company as decided by Nomination and Remuneration committee. Each of the performance
parameters will be distinct for the purpose of calculation of the quantity of the shares to vest based on

43. 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, and invited suggestions
from stakeholders which are under consideration by the Ministry. 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.

The Company does not have any benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

The Company has not any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the income tax act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.

44. No funds have been advanced/loaned/invested (from borrowed funds or from share premium or from any
other sources/kind of funds) by the Company to any other person(s) or entity(ies), including foreign entities
(Intermediaries), with the understanding (whether recorded in writing or otherwise) that the Intermediary
shall (i) 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 (ii) provide any guarantee, security or the like
to or on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities
(Funding Parties), with the understanding (whether recorded in writing or otherwise) that the Company
shall (i) 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 (ii) provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.

45. SUBSEQUENT EVENT NOTE

On April 17, 2025, the Board of Directors of the Company have proposed a dividend of ' 75.00 per share
in respect of the year ended March 31, 2025 subject to the approval of shareholders at the Annual General
Meeting.

As per our report of even date attached For and on behalf of the Board

For B S R & Co. LLP

Chartered Accountants N G Subramaniam Manoj Raghavan

Firm Registration No.: 101248W/W-100022 Chairman Managing Director

DIN: 07006215 DIN: 08458315

Ashish Chadha

Partner Gaurav Bajaj Cauveri Sriram

Membership No.: 500160 Chief Financial Officer Company Secretary