1 Terms/Rights attached to Equity Shares:

The Company has only one class of equity shares having a par value of ' 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of each reserve within equity:

1 Capital redemption reserve:

This reserve had been created out of general reserve in earlier years, being the nominal value of shares bought back. The reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

2 Share based payment reserve:

This reserve is used to record the fair value of equity-settled share based payment transactions. The amounts recorded in share based payment reserve are transferred to securities premium upon exercise of stock options.

3 Retained earnings:

Retained earnings represents Company's undistributed earnings after taxes.

4 Securities premium:

Securities premium is used to record premium on issue of Equity shares. This reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

5 General reserve:

The general reserve is a free reserve which is used from time to time to transfer profits from retained earnings for appropriation purposes. 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 statement of profit and loss.

6 Special economic zone re-investment reserve:

This Reserve had been created out of profit of eligible SEZ units in accordance with the provision of Section 10 AA(1)(ii) of the Income Tax Act,1961. The reserve can only be utilized by the Company for acquiring new plant and machinery for the purpose of its business in terms of the section 10AA(2) of the Income Tax Act, 1961. The entire reserve has been fully utilised as required by statute and the Company does not expect any futher movement.

7 Treasury shares reserve

Treasury shares reserve represents the value of shares held by Zensar Employees Welfare Trust ("the ESOP Trust") in excess of par value. The ESOP Trust holds 781,257 number of shares as at March 31, 2026.

8 Effective portion of Cash Flow Hedges

The company uses hedging instruments as part of its management of foreign currency risk associated with its highly probable forecast sales. For hedging foreign currency risk, the company uses forward contracts which are designated as cash flow hedges. To the extent this hedge is effective, the change in fair value of the hedging instrument is recognised in the effective portion of cash flow hedges. Amounts recognised in the effective portion of cash flow hedges are reclassified to profit or loss when the hedged item affects profit or loss.

c As at March 31,2026 and March 31, 2025, plan assets were primarily invested in insurer managed funds.

d Through its defined benefit plans, the Company is exposed to number of risks, the most significant of which are detailed below:

Asset volatility: Plan assets primarily comprise of insurer managed funds. The board of the insurer is responsible for the investment strategy and asset allocation is justified given the long-term investment horizon of the gratuity fund and the objective to provide a reasonable long term return on members' account balances commensurate with Scheme of gratuity".

Changes in bond yield: The present value of the defined benefit plan liability is generally calculated using a discount rate determined by reference to government bond yields. If bond yields fall, the defined benefit obligation will tend to increase.

The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within the framework, the company's ALM objective is to match assets to the gratuity obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the process used to manage its risks from previous periods.

e The Company expects to contribute ' 529 Million (March 31,2025: ' 286 Million) to the defined benefit plan during the next annual reporting period.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.

g Provident fund : The Company makes contribution towards provident fund which is administered by the trustees. The contributions is accounted for as a defined benefit plan as the Company is liable for any shortfall in the fund assets based on the government specified minimum rates of return. The Company has obtained an actuarial valuation for provident fund liability and shortfall, if any is accounted accordingly.

The unspent CSR amount of ' 46 Million (previous year ' 12 Million) is in process of being transferred to a separate bank account post the Balance Sheet date. The permissable period for such transfer is thirty days from the end of the financial year as per sub section (6) of section 135 of the Companies Act.

Cumulative value of shortfall - ' 46 Million

Reason for shortfall - The Company allocates CSR funds to on-going projects which are implemented beyond 1 financial year. These projects have set milestones, upon achievement of which, the next tranches of funds are released. A part of the total CSR allocation is ear-marked for such ongoing projects and will be released/utilised in the next financial years with the intent to achieve optimal objective of CSR funds, so allocated by the Company.

(b) Performance obligations and remaining performance obligations

The remaining performance obligation disclosures provide the aggregate amount of transaction price yet to be recognized as of the end of the reporting period and an explanation as to when company expects to recognize these amounts as revenue. Applying the practical expedients as given in INDAS 115, the company has not disclosed the remaining performance obligations related disclosures where the revenue recognized corresponds directly with the value to customer of the entity's performance completed to date, typically those contracts where invoicing is on the basis of time and material basis. Remaining performance obligation are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment of revenue that has not materialized and adjustments for currency.

The aggregate value of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is ' 100 Million [March 31,2025: ' Nil Million] out of which ' 100 Million [March 31,2025: ' Nil Million] is expected to be recognised as revenue in the next year and the balance thereafter. No consideration from contracts with customers is excluded from the amount mentioned above.

Note: Fair value of investments carried at amortised cost is ' 10,042 Million and ' 10,550 Million as at March 31,2026 and 2025, respectively. Carrying amount of all other financial assets and liabilities approximates to their fair value due to their nature in each of the periods presented.

The fair values of the quoted investments at FVTPL are based on price quotations at the reporting date. There is an active market for the Company's quoted investments.

Excludes Investments in subsidiaries accounted as per cost model in accordance with IND AS 27 "Separate Financial statements".

i. Fair value hierarchy:

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are-

(a) recognised and measured at fair value, and

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

The Company has classified its financial instruments into three levels basis the fair value measurement hierarchy.

ii. Valuation techniques for Level 1 financial instruments:

The fair values of the quoted investments at FVTPL are based on price quotations at the reporting date. There is an active market for the Company's quoted investments.

iii. Valuation techniques for Level 2 financial instruments:

Derivative instruments: The Company enters into foreign currency forward contracts with banks with investment grade credit ratings. These are valued using the forward pricing valuation technique, using present value calculations. The models incorporate various inputs including the credit quality of counterparties and foreign exchange spot and forward rates. As at March 31, 2026, the changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships.

25. Financial risk management:

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the company is foreign exchange risk. The company uses derivative financial instruments to mitigate foreign exchange related risk exposures. Derivatives are used exclusively for hedging purpose and not as trading or speculative instruments. The Company's exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. The demographics of the customer including the default risk of the industry and country in which the customer operates also has an influence on credit risk assessment.

a) Market Risk:

i. Foreign currency risk:

The Company operates globally and a major portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in the United States, South Africa, United Kingdom and other regions, and purchases from overseas suppliers in various foreign currencies. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company's operations are adversely affected as the Indian rupee appreciates/ depreciates against these currencies. The Company evaluates exchange rate exposure arising from these transactions and enters into foreign currency derivative instruments to mitigate the risk of changes in exchange rates on foreign currency exposures. The Company follows established risk management policies, to hedge forecasted cash flows denominated in foreign currency. The Company has designated certain derivative instruments as cash flow hedges to mitigate the foreign exchange exposure of forecasted highly probable cash flows.

Sensitivity:

For the year ended March 31, 2026 and March 31, 2025, every percentage point appreciation/depreciation in the exchange rate would have affected the Company's profit and loss respectively:

- ' /USD by approximately 0.52% and 0.85%,

- ' /GBP by approximately 0.11% and 0.08%,

- ' /ZAR by approximately 0.09% and 0.08%.

Sensitivity analysis is computed based on changes in income and expenses, due to every percentage point appreciation/depreciation in the exchange rates.

Derivative financial instruments:

The Company holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. The foreign exchange forward contracts mature within twelve months from Balance Sheet.

The Company has designated certain foreign exchange forward and option contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast sale transactions. The related hedge transactions for balance in cash flow hedging reserve are expected to occur and reclassified to the statement of profit or loss within 12 months.

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in profit or loss at the time of the hedge relationship rebalancing.

c) Liquidity risk:

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company's corporate treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash flows. As of March 31, 2026 and 2025, cash and cash equivalents are held with major banks and financial institutions.

b) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from financial assets amounting to ' 34,278 Million and ' 29,498 Million as of March 31, 2026 and March 31, 2025, respectively. Trade receivables and unbilled revenue are typically unsecured and are derived from revenue earned from customers located in the United States, South Africa, United Kingdom and elsewhere. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. The Company uses expected credit loss model to assess impairment loss or gain. The Company uses a matrix to compute the expected credit loss allowance for trade receivables and unbilled revenue. The provision matrix takes into account available external and internal credit risk factors and Company's historical experience for customers.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units, quoted bonds issued by government organizations and non-convertible debentures issued by institutions with high credit ratings.

26. Capital management

The Company manages its capital to ensure that it will be able to continue as going concern while maximizing the return to stakeholders through the optimisation of the debt and equity balance. The Company is not subject to any externally imposed capital requirements. The Company's risk management committee reviews the capital structure of the Company on an ongoing basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares. The Company's capital comprises equity share capital, share premium, retained earnings and other equity attributable to equity holders. The Company didn't have any external borrowings during the current and previous year.

No changes were made in the objectives, policies or processes for managing capital of the Company during the current and previous year.

The above movement of carrying value of lease liabilities also represents the changes in liabilities arising from financing activities of the Company. The Company does not have any other liabilities arising from financing activities.

Payments toward short-term leases are disclosed under operating activities in the statement of cash flows. All other lease payments during the period are disclosed under financing activities in the statement of cash flows.

Rent expenses recorded for short-term leases are disclosed in Note 21.

For details of contractual maturities of lease liabilities, refer note 25(c).

30. Share Based Payments

(a) Employee Stock Option Plan, 2006 (2006 ESOP)

Under 2006 ESOP schemes, participants are granted options which vest equally over a period of 5 years from the date of grant. Participation in the plan is at the discretion of the Nomination and Remuneration Committee (NRC) and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits.

- The exercise price is determined based on the market price, being the closing price of the share on the stock exchange with higher trading volume on the day preceding the day of the grant of options. The scheme allows the NRC to set the exercise price at a premium or discount not exceeding 20% on the market price.

- The options remain exercisable for 10 years from date of vesting & lapse if they remain unexercised during this period.

- Options granted carry no dividend or voting rights. When exercisable, each option is convertible into one equity share.

(b) Employee Performance Award Unit Plan, 2016 (EPAU 2016)

Vesting would happen on or after 1 (one) year but not later than 5 (five) years from the date of grant of such PAUs or any other period as may be determined by the Nomination and Remuneration Committee (the Committee) and is subject to achievement of performance targets, set out in the Grant letter and/or the Scheme/prescribed by the Committee.

The exercise price is ' 2 per unit and all vested units need to be exercised at any time within the period determined by the Committee from time to time, subject to a maximum period of 5 years from the end of calendar year in which vesting happens for the respective PAUs.

(c) ZENSAR - Employee Stock Option Scheme 2025 (ESOP 2025)

The ESOP 2025 Scheme has been established with effect from July 24, 2025, on which date the shareholders of the Company have approved the Scheme by way of a special resolution and shall continue to be in force until (i) its termination by the Board or Committee as per provisions of applicable Law, or (ii) the date on which all of the Options available for Grant under the Scheme have been issued and exercised, whichever is earlier. The ESOP 2025 Scheme plan provides for grant of options in the form of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs).

RSUs would vest upon meeting the individual performance score. The employee should have a threshold individual performance score, as approved by the Nomination and Remuneration Committee, against the individual targets for the fiscal against which the vesting is linked.

PSUs would vest upon meeting the individual performance score and company performance score.

Option granted under the ESOP 2025 Scheme shall vest not earlier than the minimum period of 1 (one) year and not later than maximum period of 4 (Four) years from the date of Grant. The exercise period for vested options shall be a maximum of 5 (Five) years commencing from the end of the financial year during which the options are vested, or such other shorter period as may be prescribed by the Committee at time of Grant. The exercise price is ' 2 per unit and all the vested options can be exercised by the option grantee at one time or at various points of time within the exercise period.

The Company has also created Zensar Employees Welfare Trust (the 'ESOP Trust') for providing share-based payments, as a vehicle for distributing shares to employees under Employee Stock Option Scheme 2025. The Company has treated ESOP Trust as its extension. As at March 31,2026, ESOP Trust has acquired 781,257 Equity shares from open market. Shares held by the ESOP Trust are treated as Treasury Shares. Refer note 9(a) and 9(b) for further details in relation to Treasury Shares.

32. Goodwill

Goodwill is tested for impairment atleast on an annual basis. For the purpose of impairment testing, goodwill is allocated to a Cash Generated Unit (CGU) or group of CGUs expected to benefit from the synergies arising from the business combinations. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets.

Goodwill has been allocated to Digital and Application Services segment.

Goodwill with respect to Digital and Application Services operating segment acquired through acquisitions is further allocated to identified CGUs, mainly pertaining to Manufacturing & Consumer Services.

The carrying amount was computed by allocating the net assets to CGU's for the purpose of impairment testing. The recoverable amount is computed based on value-in-use method using a forecast period of 5 years. The value-inuse of respective CGU is based on the future cash flows using a discount rate range of 11.9% - 12.0% (March 31,2025: 12.0% - 12.6%) and 1.5% (March 31, 2025: 1.50%) annual revenue growth rate for periods subsequent to the forecast period of 5 years.

In respect of above, no impairment was identified as of March 31, 2026 and March 31, 2025 as the recoverable value of the CGUs exceeded the carrying value. An analysis of the sensitivity to a change in the key parameters (combination of revenue without growth and moderate growth) did not identify any probable scenarios where the CGU's recoverable amount would fall below its carrying amounts.

33. Segment information

Segment information has been presented in the Consolidated Financial Statements as permitted by Indian Accounting Standard Ind AS 108, Operating Segments as notified under the Companies (Indian Accounting Standard) Rules, 2015.

34. Data Back up in ERP system

The Company is using an ERP system (cloud-based system) for maintaining its books of accounts and relevant information. Weekly full back ups are happening in the ERP system as per the audit report provided by the service organization.

35. Audit Trail

The Company is using ERP (cloud-based system). The Company had enabled most of the logs in this ERP system subject to certain audit logs which cannot be enabled due to system limitation. However, for this the Company is in continuous dialogue with ERP service organization to enable it.

(vi) Registration of charges or satisfaction with Registrar of Companies

The Company does not have any outstanding borrowings as at 31 March 2026 and 31 March 2025. However, as per the records available on the Registrar of Companies (RoC) portal, the below charges which were created by the Company in earlier years (more than 25 years back) for borrowings availed are still appearing as unsatisfied. The Company is in the process of obtaining no-dues certificates/ other relevant documents from the respective lenders for taking the required action.

37. 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.

38. On November 21,2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Company has assessed and disclosed the incremental impact of these changes on the basis of the best information available and guidance provided by the Institute of Chartered Accountants of India. Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Company has presented such incremental impact as "Statutory impact of new Labour Codes" under "Exceptional Items" in the standalone statement of profit and loss for the year ended March 31, 2026. The incremental impact on provisions for employee benefits expenses of ' 235 Million primarily arises due to change in wage definition. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect as and when such clarifications are issued/rules are notified.