g. Provisions, Contingent Liabilities and Contingent
Assets

A provision is recognised when the Company has
a present obligation (legal or constructive) as a

result of past event, 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 of the amount of obligation. Provisions is 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.

A Provision is 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. If the effect of the time
value of money is material, the amount of provision
is discounted using an appropriate pre-tax rate that
reflects current market assessments of the time
value of money and, when appropriate, the risks
specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is
recognised as a finance cost.

A Contingent liability is disclosed in case of a present
obligation arising from past events, when it is either
not probable that an outflow of resources will be
required to settle the obligation, or a reliable estimate
of the amount cannot be made. A Contingent Liability
is also disclosed when there is a possible obligation
arising from past events, the existence of Which will
be confirmed only by occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the Company.

A Contingent Asset is not recognised, but disclosed in
the financial statements when an inflow of economic
benefits is probable.

h. Employee Benefits

Short-term and Other Long-term Employee Benefits

A liability is recognised for benefits accruing to
employees in respect of short-term employee
benefits in the period the related service is rendered
at the undiscounted amount of the benefits expected
to be paid in exchange for that service. A liability is
recognised for benefits accruing to employees in
respect of other long-term employee benefits are
measured at the present value of the estimated future
cash outflows expected to be made by the Company in
respect of services provided by the employees up to
the reporting date.

i. Defined Contribution Plan

The Company's contribution to Provident

Fund and Employee State Insurance Scheme

are considered as defined contribution plans
and are charged as an expense based on
the amount of contribution required to be
made and when services are rendered by the
employees.

ii. Defined Benefit Plan

In accordance with applicable Indian laws, the
Company provides for gratuity, a defined benefit
retirement plan ("Gratuity Plan”) covering all
employees. The Gratuity Plan provides a lump
sum payment to vested employees, at retirement
or termination of employment, an amount based
on the respective employee's last drawn salary
and the years of employment with the Company.
For defined benefit plans, the cost of providing
benefits is determined using the Projected Unit
Credit Method,

with actuarial valuations being carried out at each
Balance sheet date. Remeasurement, comprising
actuarial gains and losses, are recognised in
full in the Other Comprehensive Income for the
period in which they occur. Remeasurement
recognised in Other Comprehensive Income is
reflected immediately in retained earnings and is
not reclassified to Profit and Loss. Past service
cost both vested and non-vested is recognised
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 recognised in
the Balance sheet represents the present value
of the defined benefit 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.

Compensated Absences

The Company provides for the encashment of
absence or absence with pay based on policy of
the Company in this regard. The employees are
entitled to accumulate such absences subject
to certain limits, for the future encashment or
absence. The Company records an obligation
for compensated absences in the period in
which the employee renders the services that
increases this entitlement. The Company
measures the expected cost of compensated
absences as the additional amount that the
Company expects to pay as a result of the unused
entitlement that has accumulated at the Balance
Sheet date on the basis of an independent
actuarial valuation.

i. Income Tax

Income tax expense represents the sum of the tax

currently payable and deferred tax.

i. Current Tax

The tax currently payable is based on taxable
profit for the year. Taxable profits differ from
'profit before tax' as reported in the Statement
of Profit and Loss because of items of income
or expense that are taxable or deductible in
other years and items that are never taxable
or deductible. The Company's current tax is
calculated using applicable tax rates that have
been enacted or substantively enacted by the
end of the reporting period and the provisions of
the Income Tax Act, 1961 and other tax laws, as
applicable.

Current tax assets and current tax liabilities are
offset if there is a legally enforceable right to
set off the recognised amounts and there is an
intention to settle the current tax liabilities and
assets on a net or simultaneous basis.

ii. Deferred income taxes
Deferred Tax

Deferred tax is recognised on temporary
differences between the carrying amounts of
assets and liabilities in the Company's financial
statements and the corresponding tax bases
used in the computation of taxable profit under
the Income Tax Act, 1961.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply to the
period when the asset is realised or the liability is
settled based on tax rates (and tax laws) that have
been enacted or substantively enacted by the
end of the reporting period. The measurement
of deferred tax liabilities and assets reflects the
tax consequences that would follow from the
manner in which the Company expects, at the
end of the reporting period, to recover or settle
the carrying amount of its assets and liabilities.

Deferred tax liabilities are generally recognised
for all taxable temporary differences.

Deferred tax assets are generally recognised
for all deductible temporary differences to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences can be utilised.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient future taxable profits will be

available to allow all or part of the deferred tax
asset to be recovered.

Deferred tax assets include 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 recognised 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 realised.

Deferred tax assets and deferred tax liabilities
are offset if there is a legally enforceable right
to offset current tax assets against current tax
liabilities and deferred tax assets and liabilities
relate to the income tax levied by the same
taxation authority on either the same taxable
entity or different taxable entities where there
is an intention to settle the current tax liabilities
and assets on a net or simultaneous basis.

Current and Deferred Tax for the year

Current and deferred tax are recognised in profit
or loss, except when they relate to items that
are recognised in Other Comprehensive Income
or directly in equity, in which case, the current
and deferred tax are also recognised in Other
Comprehensive Income or directly in equity,
respectively.

j. Earnings per Share

The basic earnings per share are computed by dividing
the net profit attributable to the equity shareholders
for the year by the weighted average number of equity
shares outstanding during the reporting period.
Diluted earnings per share is computed by dividing
the net profit attributable to the equity shareholders
for the year, as adjusted for the effects of potential
dilution of equity shares, by the weighted average
number of equity shares and dilutive equity equivalent
shares outstanding during the year, except where the
results would be anti-dilutive.

k. Foreign Currency Transactions

Transactions in foreign currencies are recognised at
the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period,
monetary items denominated in foreign currencies
are translated at the rates prevailing at that date.
Non-monetary items, if any, that are measured at
historical cost denominated in a foreign currency are
translated using the exchange rate as at the date of
initial transaction. Exchange differences on monetary
items are recognised in profit or loss in the period in
which they arise.

l. Statement of Cash Flows

Cash flows are reported using the indirect method,
whereby net profit for the period is adjusted for
the effects of transactions of non-cash nature, any
deferrals or accruals of past or future operating
cash receipts or payments and items of income or
expenses associated with investing or financing
cash flows. The cash flows from operating,
investing and financing activities of the Company
are segregated.

For the purpose of presentation in the Statement
of Cash Flows, cash and cash equivalents include
cash on hand, cash at banks, other short-term
deposits and highly liquid investments with original
maturity of three months or less that are readily
convertible into cash and which are subject to an
insignificant risk of changes in value, as reduced by
bank overdrafts.

m. Financial instruments

A financial instrument is any contract that gives rise
to a financial asset of one entity and a financial liability
or equity instrument of another entity. Financial
assets and financial liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instruments.

i. Initial Recognition

Financial assets (except for trade receivables
hereinafter specified) and financial liabilities are
initially measured at fair value. 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 of
the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of
financial assets or financial liabilities at fair
value through profit or loss are recognised
immediately in the Statement of Profit and
Loss. Trade receivables that do not contain a
significant financing component are measured at
transaction price.

ii. Classification and Subsequent Measurement:
Financial Assets

The Company classifies financial assets as
subsequently measured at amortised cost, fair
value through other comprehensive income
("FVOCI") or fair value through profit or loss
r'FVTPL") on the basis of following:

• the entity's business model for managing the
financial assets; and

• the contractual cash flow characteristics of
the financial assets.

a. Amortised Cost

A financial asset shall be classified and
measured at amortised cost (based on
Effective Interest Rate method), if both of the
following conditions are met:

• the financial asset is held within a
business model whose objective is to
hold financial 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.

Investments in preference shares, loans,
trade receivables, Cash and bank balances,
and other financial assets of the Company are
covered under this category.

b. Fair Value through Other Comprehensive
Income

A financial asset shall be classified and
measured at FVOCI, if both of the following
conditions are met:

• the financial asset is held within a
business model whose objective is
achieved by both collecting contractual
cash flows and selling financial assets,
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.

For financial assets that are measured at
FVOCI, income by way of interest and dividend,
if any, is recognised in profit or loss and
changes in fair value (other than on account
of such income) are recognised in Other
Comprehensive Income and accumulated in
other equity. On disposal of equity instruments
measured at FVOCI, the cumulative gain or
loss previously accumulated in other equity is
not reclassified to profit or loss on disposal of
investments.

The Company has made an irrevocable
election to present subsequent changes in
the fair value of equity investments not held
for trading through FVOCI.

c. Fair Value through Profit or Loss

A financial asset shall be classified and
measured at FVTPL unless it is measured at
amortised cost or at FVOCI.

All recognised financial assets are
subsequently measured in their entirety at
either amortised cost or fair value, depending
on the classification of the financial assets.

iii. Classification and Subsequent Measurement:
Financial liabilities

Financial liabilities are classified as other
financial liabilities as below:

Other Financial Liabilities

Other financial liabilities (including borrowings
and trade and other payables) are subsequently
measured at amortised cost using the effective
interest method.

The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense over
the relevant period. The effective interest rate is
the rate that exactly discounts estimated future
cash payments (including all fees and points
paid or received that form an integral part of
the effective interest rate, transaction costs
and other premiums or discounts) through the
expected life of the financial liability, or (where
appropriate) a shorter period, to the net carrying
amount on initial recognition.

iv. Offsetting

Financial assets and financial liabilities are offset
and presented on net basis in the Balance Sheet
when there is a legally enforceable right to offset
the recognised amounts and there is an intention
to settle on a net basis or realise the asset and
settle the liability simultaneously.

v. Financial liabilities and equity instruments

• Classification as debt or equity

Debt and equity instruments issued by the
Company are classified as either financial
liabilities or as equity in accordance with the
substance of the contractual arrangements
and the definitions of a financial liability and
an equity instrument.

• Equity instruments

An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.

Equity instruments issued by the Company
are recognised at the proceeds received net
off direct issue cost.

vi. Impairment of financial assets

The Company recognises loss allowance using
expected credit loss model for financial assets
which are measured at amortised cost and
FVOCI debt instruments, if any. Expected credit
losses are weighted average of credit losses with
the respective risks of default occurring as the
weights. Credit loss is the difference between
all contractual cash flows that are due to the
Company in accordance with the contract and
all the cash flows that the Company expects to
receive, discounted at original effective rate of
interest.

For Trade Receivables, the Company measures
loss allowance at an amount equal to expected
credit losses. The Company computes expected
credit loss allowance based on a provision matrix
which takes into account historical credit loss
experience and adjusted for forward-looking
information.

vii. Derecognition of Financial Assets

The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire or when the
Company transfers its contractual rights to
receive the cash flows of the financial asset in
which substantially all the risks and rewards of
ownership of the financial asset are transferred
or in which the Company neither transfers nor
retains substantially all the risks and rewards
of ownership of the financial asset but does not
retain control of the financial asset.

On derecognition of a financial asset in
its entirety, the difference between the
asset's carrying amount and the sum of the
consideration received and receivable and
the cumulative gain or loss that had been
recognised in other comprehensive income and
accumulated in equity is recognised in profit or
loss if such gain or loss would have otherwise
been recognised in profit or loss on disposal of
that financial asset.

viii. Derecognition of financial liabilities

The Company derecognises a financial liability
when its contractual obligations are discharged
or cancelled or expired. The Company also
derecognises a financial liability when its terms
are modified and the cash flows under the
modified terms are substantially different

n. Revenue Recognition

The Company derives revenue primarily from
providing training in Information Technology,
Media and Entertainment. The Company offers
training mainly through the Student Delivery model,
Franchisee model and Corporate Training under
the head "Training and Education Services”. The
Company also earns revenue from providing Testing
and Assessment Solution Services to private and
public sector undertakings, government departments
and educational institutions under its Institutional
Segment ("Assessment Solution Services"). The main
product offered by this division is Computer Aided
Assessments, Digital Evaluation tool for paper-based
exams, Pen and Paper Assessments and Document
Digitalisation tool as separate products.

Revenue is recognised upon transfer of control
of promised services to customers at the fair
value of the consideration received or receivable.
Amounts disclosed as revenue are net of returns,
trade allowances, rebates, discounts, and taxes, as
applicable. Revenue also excludes taxes collected
from customers.

Revenue related to fixed time frame services
contracts where the Company is standing ready to
provide services is recognised based on time elapsed
mode and revenue is straight lined over the period of
performance. Under the Student Delivery model, the
customer simultaneously receives and consumes the
benefits provided by the entity's performance as the
entity performs. Accordingly, the revenue related to
such services are recognised over time.

In respect of other fixed-price contracts, revenue is
recognized as the related services are performed,
that is, on completion of the performance obligation.
Revenue in respect of sale of Education Course
materials is recognised on delivery thereof to the
customers. When two or more revenue generating
activities or deliverables are provided under a single
arrangement/invoice, each deliverable is considered
as a separate deliverable and accounted separately.
Where the contracts include multiple performance
obligations, the transaction price is allocated to each
performance obligation based on the standalone
selling prices. Where the standalone selling prices
are not directly observable, these are estimated based
on expected cost-plus margin or residual method to
allocate the total transaction price. In case of residual
method, the standalone selling price is estimated by
reference to the total transaction price less the sum
of the observable standalone selling prices of other
goods or services promised in the contract.

Revenues in excess of invoicing are classified as
contract assets (which we refer to as "Unbilled

Revenue") while invoicing in excess of revenues are
classified as contract liabilities (which we refer to as
"Unearned Revenue").

The contract liabilities primarily relate to advance
considerations received from customers for whom
revenue is recognized as the related services are
performed, that is on completion of performance
obligation.

Advance collections are recognised when payment is
received before the related performance obligation
is satisfied. This includes advance received from the
customer towards events fees, course-wares fees,
etc. Revenue is recognised as the related services
are performed, that is on completion of performance
obligation.

Revenue from licenses where the customer obtains a
right to use the license is recognised at the time the
license is made available to the customer. Revenue
from licenses where the customer obtains a right to
access is recognised over the access period.

The billing schedules agreed with customers include
periodic performance based payments and/or
milestone based progress payments. Invoices are
payable within contractually agreed credit period.

The Company disaggregates revenue from contracts
with customers by nature of services, type of
customers and geography.

i. Interest Income

Interest income from a financial asset is
recognised when it is probable that the economic
benefits will flow to the Company and the amount
of income can be measured reliably. Interest
income is accrued on a timely basis, by reference
to the principal outstanding and at the effective
interest rate applicable.

The effective interest rate is the rate that exactly
discounts estimated future cash receipts through
the expected life of the financial asset to the
gross carrying amount of that financial asset.

ii. Dividends

Dividend income from investments is recognised
when the Company's right to receive dividend
is established, which is generally when
shareholders approve the dividend except in case
of Interim Dividend.

iii. License fees

Income that relates to the sale or out-licensing
of technologies or technological expertise is
recognised in profit or loss as of the effective date
of the respective agreement if all rights relating

to the technological knowhow/Expertise's and
all obligations resulting from them have been
transferred under the contract terms. However,
if rights to the technologies/expertise's continue
to exist or obligations resulting from them
have yet to be fulfilled, the revenue is deferred,
accordingly.

o. Leases
As a Lessee:

The Company's leased assets consist of leases for
Buildings and Computers. At inception of a contract,
the Company assesses whether a contract is, or
contains, a lease. A contract is or contains, a lease if
the contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the
company assesses whether: (i) the contract involves
the use of an identified asset (ii) the Company has
the right to obtain substantially all of the economic
benefits from use of the asset throughout the period
of use; and (iii) the Company has the right to direct the
use of the asset.

The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of
the lease term. The estimated useful lives of right-
of-use assets are determined on the same basis as
those of Property, Plant and Equipment. In addition,
the right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.

The lease liability is initially measured at the
present value of the lease payments that are not
paid at the commencement date, discounted using
the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Company's
incremental borrowing rate. Generally, the
Company uses its incremental borrowing rate as
the discount rate.

The lease liability is subsequently measured at
amortised cost using the effective interest method. It

is remeasured when there is a change in future lease
payments arising from a change in an index or rate,
if there is a change in the Company's estimate of the
amount expected to be payable under a residual value
guarantee, or if the Company changes its assessment
of whether it will exercise a purchase, extension or
termination option.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-of-
use asset has been reduced to zero.

Short-term leases and leases of low-value assets:

The Company has elected not to recognise right-to-
use assets and lease liabilities for short-term lease
that have a lease term of 12 months or less and
leases of low-value assets. The Company recognises
the lease payments associated with these leases as
an operating expense as per the terms of the lease.

As a Lessor:

The Company does not act as a lessor for any lease,
either a finance lease or an operating lease.

(Refer Note 42 for disclosures pursuant to Ind AS 116.)

p. Segment Reporting Policies

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

Identification of Segments

The Company has reported Segment Information as
per Ind AS 108. The Company has identified Operating
Segments taking into account the services of
Business Function, the differing risks and returns, the
organizational structure and the internal reporting
system.

q. Critical Accounting Judgements and Key Sources of
Estimation Uncertainty

The preparation of the financial statements requires
the management to make judgements, estimates and
assumptions in the application of accounting policies
and that have the most significant effect on reported
amounts of assets, liabilities, incomes and expenses,
and accompanying disclosures, and the disclosure of
contingent liabilities.

The estimates and associated assumptions are based
on historical experience and other factors that are
considered to be relevant. Actual results may differ
from these estimates.

The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the
estimate is revised if the revision affects only that
period or in the period of the revision and future
periods if the revision affects both current and future
periods.

i. Key estimates, assumptions and judgements

The key assumptions concerning the future and
other major sources of estimation uncertainty
at the reporting date, that have a significant risk
of causing a material adjustment to the carrying
amounts of assets and liabilities within the next
financial year, are described below:

ii. Income taxes

Significant judgements are involved in
determining the provision for income taxes,
including amount expected to be paid/recovered
for uncertain tax positions as also to determine
the amount of deferred tax that can be
recognised, based upon the likely timing and the
level of future taxable profits.

iii. Property, Plant and Equipment/Intangible
Assets

Property, Plant and Equipment/ Other Intangible
Assets are depreciated/amortised over their
estimated useful lives, after taking into account
estimated residual value. The useful lives and
residual values are based on the Company's
historical experience with similar assets and
taking into account anticipated technological
changes or commercial obsolescence.
Management reviews the estimated useful lives
and residual values of the assets annually in
order to determine the amount of depreciation/
amortisation to be recorded during any
reporting period. The depreciation/amortisaion
for future periods is revised, if there are
significant changes from previous estimates
and accordingly, the unamortised/depreciable
amount is charged over the remaining useful
life of the assets.

iv. 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.

v. Employee Benefit Plans

The cost of the defined benefit gratuity plan and
other-post employment benefits and the present
value of gratuity obligation is determined based
on actuarial valuations. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases, attrition and
mortality rates. Due to the complexities involved
in the valuation and its long-term nature, these
liabilities are highly sensitive to changes in these
assumptions. All assumptions are reviewed at
each reporting date.

vi. Fair Value measurements of Financial
Instruments

When the fair values of financial assets and
financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in
active markets (Net Assets Value in case of units
of Mutual Funds), their fair value is measured
using valuation techniques including the
Discounted Cash Flow (DCF) model.

The inputs to these models are taken from
observable markets where possible, but where
this is not feasible, a degree of judgement
is required in establishing fair values.
Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors
could affect the reported fair value of financial
instruments.

vii. Impairment of Financial Assets

The impairment provisions for financial assets
are based on assumptions about risk of default
and expected cash loss rates. The Company

uses judgement in making these assumptions
and selecting the inputs to the impairment
calculation, based on the Company's past history,
existing market conditions as well as forward
looking estimates at the end of each reporting
period.

The Company reviews its carrying value of
investments carried at amortised cost annually,
or more frequently when there is indication for
impairment. If the recoverable amount is less
than its carrying amount, the impairment loss is
accounted for.

viii. Impairment of Assets

The Company has used certain judgements and
estimates to work out future projections and
discount rates to compute value in use of cash
generating unit and to access impairment. In
case of certain assets independent external
valuation has been carried out to compute
recoverable values of these assets.

ix. Provisions

Provisions and liabilities are recognised in the
period when it becomes probable that there
will be a future outflow of funds resulting from
past operations or events and the amount of
cash outflow can be reliably estimated. The
timing of recognition and quantification of the

11.1 The Company had invested in Fully Paid-up Non-Convertible Cumulative Redeemable Non-Participating Preference
Shares ("CRPS") of Tata Capital Limited. The CRPS were redeemable after 7 years from the date of issue, i.e. July 12,
2017. The CRPS carried a preferential right with respect to:

i. Payment of dividend calculated at a fixed rate at 7.5 % p.a. on Face Value.

ii. Repayment, in the case of a winding up or repayment of capital, of the amount of the share capital paid-up or deemed
to have been paid-up, whether or not, there is a preferential right to the payment of any fixed premium.

Note:

12.1 Since the Company calculates impairment under the simplified approach for Trade Receivables, it is not required
to separately track changes in credit risk of Trade Receivables as the impairment amount represents — Lifetime Expected
Credit Loss. Accordingly, based on a harmonious reading of Ind AS 109 and the break-up requirements under Schedule
III, the disclosure for all such Trade Receivables is made as shown above.

12.2 In determining the allowances for credit losses of Trade Receivables, the Group has used a practical expedient by
computing the expected credit loss allowance for Trade Receivables based on a provision matrix. The provision matrix
takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit
loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.The Group
estimates mostly the following matrix at the reporting date.

14.1 Cash at banks earns interest at floating rates based on time deposit rates. Short-term deposits are made for varying
periods of between three months and twelve months, depending on the immediate cash requirements of the Company, and
earn interest at the respective short-term deposit rates. The deposits maintained by the Company with banks comprises of
time deposits, which can be withdrawn by the Company at any point without prior notice or penalty.

14.2 Bank deposits include restricted balances of ' 228.29 Lakhs (Previous Year: ' 256.88 Lakhs). The restrictions are primarily
on account of cash and bank balances held as margin money deposits against guarantees and overdraft facility backed by
Fixed Deposits.

14.3 There is no repatriation restriction with regard to Cash and Cash Equivalents and Bank balances other than cash and cash
equivalents as at the end of the current year and previous year.

18.1 22,542 Global Depository Receipts of erstwhile Aptech Limited (hereinafter "Old GDRs" 22,542 numbers) representing
11,271 (Previous Year: 11,271) underlying equity shares (2 GDR equals 1 Equity Share ) of face value ' 10 each are
outstanding.

18.2 The Company has allotted 1,821 Equity Shares for the year ended March 31,2025 (Previous Year: 13,350) pursuant to the
exercise of options under Aptech Limited - Employee Stock Option Plan 2016.

18.3 The Company has allotted 4,874 Equity Shares for the year ended March 31,2025 (Previous Year: 24,021 ) pursuant to the
exercise of options under Aptech Limited - Employee Stock Option Plan 2021.

18.4 The Company has allotted 1,65,41,152 fully paid-up shares of face value ' 10 each in the ratio of two equity shares for
every five equity shares held, pursuant to bonus issue approved by the shareholders through postal ballot in September
2023.

Terms and rights attached to equity shares

i. Equity Shares have a par value of ' 10. Equity Shares entitle the holder to participate in dividends, and to share in the
proceeds of winding up of the Company in proportion to the number of and amounts paid on the shares held after
distribution of all preferential amounts.

ii. Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each
share is entitle to one vote.

iii. Equity Shares are entitled for dividend proposed by the Board of Directors and is subject to the approval of the
shareholders in the Annual General meeting, except in case of interim dividend.

Capital Redemption Reserve

The Capital Redemption Reserve is created by transfering Nominal Value of the Owned Equity shares purchased out of
Free Reserves or Securities Premium. The Reserve is to be utilised in accordance with the provisions of the Companies
Act, 2013.

Securities Premium Account

The Securities Premium Account is used to record the premium on issue of shares. The Reserve is to be utilised in
accordance with the provisions of the Companies Act, 2013.

Share Options Outstanding Account

The Share Option Outstanding Account is used to recognise the Grant date Fair Value of option issued to employees
under the Aptech Limited - Employee Stock Option Plan 2016 (ESOPs) and ESOP 2021 plan. The amounts recorded in
this account are transferred to securities premium upon exercise of stock options by employees.

General Reserves

The General Reserve is created from time to time on transfer of profits from Retained Earnings. General Reserve is
created by transfer from one component of Equity to another and is not an item of Other Comprehensive Income, items
included in General Reserve will not be reclassified subsequently to Profit or Loss.

Retained earnings

The portion of profits not distributed among the shareholders but retained and used in business are termed as retained
earnings.

The Board of Directors at its meeting held on May 08, 2025 have recommended an Interim dividend of 45% (' 4.50 per
Equity Share of par value ' 10 each) for the year ended March 31, 2025. The Board of Directors at its meeting held on
May 02, 2024 had recommended and paid an interim dividend of 45% (' 4.50 per Equity Share of par value ' 10 each) for
the year ended March 31, 2024 which resulted in a cash outflow of ' 2,609.69 Lakhs.

Equity Instruments through Other Comprehensive Income

As per Ind AS 109, companies have an option to designate investments in equity instruments to be measured at FVTOCI.
For such instruments, the cumulative fair value gain or loss is presented as a part of Other Equity. This represents
the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other
comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets
are disposed of.

i. Leave Obligations

The leave obligations cover the Company's liability for sick and earned leave. The amount of the provision of ' 13.81
Lakhs (Previous year ' 63.89 Lakhs) is presented as current, since the Company does not have an unconditional right
to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all
employees to take the full amount of accrued leave or require payment within the next 12 months.

ii. Post-Employment Obligations
Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who
are in continuous service for a period of 5 years are eligible for gratuity.

The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month
computed proportionately multiplied for the number of years of service as per the Scheme.

iii. Defined Contribution Plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for
employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident
fund administered by the government. The obligation of the Company is limited to the amount contributed and it has
no further contractual nor any constructive obligation. Amount recognized as an expense during the period towards
defined contribution plan is ' 159.63 Lakhs ( Previous year: ' 198.23 Lakhs) (Refer Note 31).

Balance Sheet Amounts - Gratuity

The amounts recognised in the balance sheet and the movements in the net defined benefits obligation over the year
are as follows:

Risk exposure and Asset Liability Matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take
on uncertain long-term obligations to make future benefit payments.

1. Liability Risks

a. Asset-liability Mismatch Risk -

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching
duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings
caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

b. Discount Rate Risk -

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in
practice can have a significant impact on the defined benefit liabilities.

c. Future Salary Escalation and Inflation Risk -

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes.
Rising salaries will often result in higher future defined benefit payments resulting in a higher present
value of liabilities especially unexpected salary increases provided at management's discretion may lead to
uncertainties in estimating this increasing risk.

2. Unfunded Plan Risk

This represents unmanaged risk and a growing liability. There is an inherent risk here that the Company may
default on paying the benefits in adverse circumstances, funding the plan removes volatility in company's
financials and also benefit risk through return on the funds made available for the plan.

Note:

The obligation of Leave Encashment is provided on the basis of actuarial valuation by an independent valuer and
the same is unfunded. The amount recognised in the Statement of Profit and Loss for the year is ' 49.45 Lakhs
(Previous year: ' 84.00 Lakhs).

Fair Value of Financial Assets measured at amortised cost:

i. Financial Assets measured at amortised cost:

The Carrying amounts of Trade and Other Receivables and Cash and Cash equivalents are considered to be the same as their
fair values, due to their short term nature. The Carrying amounts of loans are considered to be close to their fair values.

ii. Financials Liabilities measured at amortised cost:

The Carrying amount of Trade and Other Payables are considered to be the same as their fair values due to their short
term nature.

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. To provide an indication about the reliability of the inputs used in determining
fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting
standard. An explanation of each level follows underneath the table:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded bonds and units of mutual funds that have quoted price. The fair value of all equity instruments
(including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.
The units of mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-
the counter derivatives) is determined using valuation techniques which maximize the use of observable market data
and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in
level 3.

Valuation techniques used to determine Fair Value

Specific Valuation Techniques used to value financial instruments include:

• the use of quoted market prices or dealer quotes for similar instruments.

The fair values of all financial instruments carried at amortised cost are not materially different from their carrying
amounts since they are either short-term in nature or the interes rates applicable are equal to the current market rate
of interest.

35.1 Comparable Companies Multiples Method (CCM): An approach that entails looking at market quoted price of comparable
companies and converting that into the relevant multiples.The relevant mulitple after adjusting for factors like size,
growth, profitability, etc is applied to the elevant financial parameter of the subject company.

36. Financial Risk Management

The Company's activities expose it to business risk, interest rate risk, liquidity risk and credit risk. In order to minimise
any adverse effects on the financial performance, the Company's risk management is carried out by a corporate treasury
and corporate finance department under policies approved by the board of directors and top management. Company's
treasury identifies, evaluates and mitigates financial risks in close cooperation with the Company's operating units. The
board provides guidance for overall risk management, as well as policies covering specific areas.

A. Credit Risk

Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required payments.
Credit risk arises mainly from outstanding receivables, cash and cash equivalents, employee advances and security
deposits. The Company manages and analyses the credit risk for each of its new clients before standard payment
and delivery terms and conditions are offered. There are no significant concentrations of credit risk, whether through
exposure to individual customers, specific industry sectors and/or regions.

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed.
To manage this, the Company periodically assess financial reliability of customers, taking into account the financial
condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual
risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is
a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting
date with the risk of default as at the date of initial recognition. It considers reasonable and supportive looking
forward information such as:

i. Actual or expected significant adverse changes in business,

ii. Actual or expected significant changes in the operating results of the counterparty,

iii. Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to
meet its obligations,

iv. Significant changes in the value of the collateral supporting the obligation or in the quality of the third party
guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognized in profit or loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on
historical trend, industry practices and the business environment in which the entity operates.Loss rates are based
on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not
material hence no additional provision considered.

B. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels of liquidity
to meet its cash and collateral requirements.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on
the basis of expected cash flows. The Company's liquidity management policy involves projecting cash flows and
considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against
internal requirements and maintaining debt financing plans.

Financing arrangements

The Company had access to bank overdraft facilities. These facilities may be drawn at any time and may be terminated
by the bank without notice.

C. Market risk
Foreign currency risk

1. Foreign currency exposure

Currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company operates internationally and is exposed to foreign exchange
risk arising from foreign currency sales and purchases, primarily with respect to EUR, USD and MYR. Foreign
exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in
a currency that is not the company's functional currency (INR).

The risk is measured through a forecast of foreign currency sales and purchases for the Company's operations.

As of March 31, 2025, the Company's exposure to foreign currency risk, expressed in INR, is given in the table
below. The amounts represent only the financial assets and liabilities that are denominated in currencies other
than the functional currency of the Company.

D. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Since the Company does not have any non-current borrowings, it is not exposed to
cash flow interest rate risk. The Company has not used any interest rate derivatives.

1. Exposure to interest rate risk

The Company's deposits and Investments are all at fixed rate and carried at amortised cost. They are therefore
not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash
flows will fluctuate because a change in market interest rates.

2. Price risk exposure

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded
price. Price risk arises from financial assets such as investments in equity instruments and mutual funds. The
Company is exposed to price risk arising mainly from investments in equity instruments recognised at FVTOCI.
As at March 31, 2025, the carrying value of such equity instruments recognised at FVTOCI amounts to ' 260.00
Lakhs (Previous year ' 291.00 Lakhs). The details of such investments in equity instruments are given in Note 6.

37. Capital Management

The Company's objectives when managing capital are to:

• Safeguard their ability to continue as a going concern, so that they can continue to provide Returns for shareholders

and Benefits for other stakeholders;

• Maintain an optimal capital structure to reduce the cost of capital;

• The capital of the Company consist of equity capital and accumulated profits.

38. Disclosure persuant to Ind AS 108 on ‘Operating Segment’

The Board of Directors has been identified as the Chief Operating Decision Maker. They examine the performance of the
Group on an entity level. The Group has only two operating segments, i.e. 'Retail' and ' Institutional'. Thus, the segment
revenue, segment results, total carrying value of segment assets and segment liabilities, total costs incurred to acquire
segment assets, total amount of charge of depreciation during the period are all reflected in the financial statements
for the Year ended March 31, 2025.

A. Revenue of ' 1,217.81 lakhs ( Previous year: ' 3,281.00 lakhs) are derived from single external customer, which
exceeds 10% of the Company's total revenue under Institutional Segment.

B. The Company reportable segments (Retail & Institutional) are organised based on the type of customers offered by
these segments.

C. Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment:

i. Basis of identifying operating segments: Operating segments are identified as those components of the Company-

a. That engage in business activities to earn revenues and incur expenses (including transactions with any of
the Company's other components);

b. Whose operating results are regularly reviewed by the Company's Executive Management to make decisions
about resource allocation and performance assessment and for which discrete financial information is available;

c. The Company has two reportable segments as described under "Segment Composition” as Retail &
Institutional. The nature of services offered by these businesse are different and are managed separately
given the different sets of technology and competency requirements.

ii. Reportable segments: An operating segment is classified as reportable segment if reported revenue (including
inter-segment revenue) or absolute amount of result or assets exceed 10% or more of the combined total of all
the operating segments.

iii. Segment profit: Performance of a segment is measured based on segment profit (before interest and tax), as
included in the internal management reports that are reviewed by the Company's Executive Management.

40.1 Claims not acknowledged as debts with respect to the Company's pending litigations comprise of claims against the
Company primarily by the Civil & Consumer case pending with Courts.The Company has reviewed all its pending
litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent
liabilities where applicable in its financial statements. The Company does not expect the outcome of these proceedings
to have a materially adverse effect on its financial results.

40.2 Other money for which the Company is contingently liable:

Though a review petition filed against the decision of the Hon'ble Supreme Court of India of February 2019 on Provident
Fund (PF) on inclusion of allowances for the purpose of PF Contribution has been set aside, there are interpretative
challenges, mainly for estimating the amount and applicability of the decision retrospectively. Pending any direction in
this regard from the Employees Provident Fund Organisation, the impact for past periods, if any, is considered to the
effect that it is only possible but not probable that outflow of economic resources will be required. The Company will
continue to monitor and evaluate its position and act, as clarity emerges.

40.3 Guarantees issued by the banks are for the projects.

40.4 The amount assessed as Contingent Liability do not include interest that could be claimed by counter parties.

41. Capital Commitments

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

45. Additional Regulatory Information

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as
given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and
other than those given elsewhere in any other notes to the Standalone Financial Statements.

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

ii. The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a
wilful defaulter at any time during the financial year or after the end of reporting period but before the date when
financial statements are approved.

iii. The Company has availed working capital overdraft facility (FD-OD) from banks on the basis of security of term
deposits placed with such banks. The Company is not required to file any quarterly returns or statements with
such banks.

iv. The Company does not have any transactions with struck-off companies.

v. Ratios - Refer Note 44

vi. 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, 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.

vii. The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding, 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 to or on behalf of the Ultimate Beneficiaries.

viii. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies
Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

Additional Information pursuant to Clause 7(l) of General Instructions for preparation of Statement of Profit and Loss as
given in Part II of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and
other than those given elsewhere in any other notes to the Standalone Financial Statements.

i. The Company does not have any transaction which is not recorded in the books of accounts but 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)."

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

47. The figures for the previous year have been regrouped/ rearranged/reclassified wherever necessary to correspond with
figures of current year.

As per our attached Report of even date. For and on behalf of the Board of Directors of

For BANSI S. MEHTA & CO. APTECH LIMITED

Chartered Accountants
Firm Registration No. 100991W

OJAS A. PAREKH RAJIV AGARWAL SANDIP WELING

Partner Director Director

Membership No. 115379 DIN: 00379990 DIN: 10479066

PAWAN NAWAL SHRUTI LAUD

Chief Financial Officer Company Secretary

Mumbai Mumbai

May 08, 2025 May 08, 2025