33.13. Provisions and Contingent Liabilities
Provisions are recognised when the Company has
a present legal or constructive obligation as a
result of past events, it is probable that an outflow
of resources will be required to settle the
obligation and the amount can be reliably
estimated. Provisions are not recognised for
future operating losses.
Where there are a number of similar obligations,
the likelihood that an outflow will be required in
settlement is determined by considering the class
of obligations as a whole. A provision is
recognised even if the likelihood of an outflow
with respect to any one item included in the same
class of obligations may be small.
Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. In case of long term
provisions, they are disclosed by discounting at
the rate used to determine the present value,
which is a pre-tax rate that reflects current market
assessments of the time value of money and the
risks specific to the liability. The increase in the
provision due to the passage of time is
recognised as interest expense.
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 or a reliable estimate of the
amount cannot be made.
33.14. Employee Benefits
i) Short-term Obligations
Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the
period in which the employees render the related
service are recognised in respect of employees'
services up to the end of the reporting period and
are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligation
in the Balance Sheet.
ii) Other Long-term Employee Benefit Obligations
The liabilities for earned leave are not expected to
be settled wholly within twelve months after the
end of the period in which the employees render
the related service. They are therefore measured
at the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the market yields at
the end of the reporting period on government
bonds that have terms approximating to the
terms of the related obligation. Remeasurements
as a result of experience adjustments and
changes in actuarial assumptions are recognised
in statement of profit and loss. Past service costs
are recognised immediately in the Statement of
Profit and Loss.
The obligations are presented as current liabilities
in the Balance Sheet if the entity does not have an
unconditional right to defer settlement for at least
twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.
iii) Post Employment Obligations:
The Company operates the following post¬
employment schemes:
Defined Contribution Plan such as Provident
Fund and Employees State Insurance
The Company pays provident fund contributions
to publicly administered provident funds and
employees state insurance funds as per local
regulations. The Company has no further
payment obligations once the contributions have
been paid. The contributions are accounted for as
defined contribution plans and recognised as
employee benefit expense when they are due.
iv) Bonus Plans
The Company recognises a liability and an
expense for bonuses. The Company recognises a
provision where contractually obliged or where
there is a past practice that has created a
constructive obligation.
v) Share-based Payments
The fair value of options granted under "Tracxn
Employee Stock Option Plans" are recognised as
an employee benefits expense with a
corresponding increase in equity. The total
amount to be expensed is determined by
reference to the fair value of the options granted:
• including any market performance
conditions (e.g., the entity's share price)
• excluding the impact of any service and non¬
market performance vesting conditions (e.g.
profitability, sales growth targets and
remaining an employee of the entity over a
specified time period), and
• including the impact of any non-vesting
conditions (e.g. the requirement for
employees to save or hold shares for a
specific period of time).
The total expense is recognised over the vesting
period, which is the period over which all of the
specified vesting conditions are to be satisfied. At
the end of each reporting period, the entity revises
its estimates of the number of options that are
expected to vest based on the non-market vesting
and service conditions. It recognises the impact
of the revision to original estimates, if any, in profit
or loss, with a corresponding adjustment to
equity.
33.15. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the period is adjusted for events such as
bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that
have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period is adjusted for the
effects of all dilutive potential equity shares.
Ordinary shares that will be issued upon the conversion of a mandatorily convertible instrument are included in
the calculation of basic earnings per share from the date these mandatorily convertible instruments are classified
as equity.
33.16. Contributed Equity
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
33.17. Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting
period.
33.18. Exceptional Items
When an item of income or expense within Statement of profit and loss from ordinary activity is of such size,
nature or incidence that its disclosure is relevant to explain the performance of the Company for the year, the
nature and amount of such items is disclosed as exceptional items.
33.19. Rounding of Amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as
permitted by Schedule III of Companies Act, 2013, unless otherwise stated. Amounts mentioned as "0.00" in the
financial statements denote amounts rounded off, being less than rupees five thousand.
34. Additional Regulatory Information
i) Details of benami property held
No proceedings have been initiated on or are pending against the Company under the Prohibition of Benami
Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988
(45 of 1988)) and Rules made thereunder.
ii) Borrowing secured against current assets
The Company has not been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate from banks
and financial institutions.
iii) Wilful defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
iv) Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956.
v) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
vi) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
vii) 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.
viii) Valuation of property plant and equipment, intangible asset and investment property
The Company has not revalued its property, plant and equipment or intangible assets or both during the current
or previous year
ix) Core investment companies (CIC)
The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank
of India. The Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) does not
have any CICs, which are part of the Group.
x) Compliance with number of layers of companies
The Company has not made any investments and hence compliance with respect to number of layers prescribed
under section 2(87) of the Companies Act, 2013 read with Companies (Restriction of number of layers) Rules,
2017 is not applicable.
xi) Utilisation of borrowed funds and share premium
A. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary
shall:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
B. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
xii) 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.
35. These financial statements are approved for issue by Company's Board of Directors on 26
May 2025.
For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm Registration Number: 012754N/N500016 Tracxn Technologies Limited
Mohan Danivas S A Neha Singh Abhishek Goyal
Partner Managing Director Director
Membership Number: 209136 DIN: 05331824 DIN: 00423410
Place: Bengaluru Place: Bengaluru Place: Bengaluru
Date: 26 May 2025 Date: 26 May 2025 Date: 26 May 2025
Prashant Chandra Surabhi Pasari
Chief Financial Officer Company Secretary
M. No.: F11215
Place: Bengaluru Place: Bengaluru
Date: 26 May 2025 Date: 26 May 2025
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