m) Provisions, Contingent Liabilities and Contingent
Assets

Provisions

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying

economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of
the obligation. When the Company expects some or all
of a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognised as
a separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision is
presented in the statement of profit and loss net of any
reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that
reflects, 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.

Decommissioning liability

The Company records a provision for decommissioning
costs associated with the premises taken on lease.
Decommissioning costs are provided at the present value
of expected costs to settle the obligation using estimated
cash flows and are recognised as part of the cost of
the particular asset. The cash flows are discounted at a
current pre-tax rate that reflects the risks specific to the
decommissioning liability. The unwinding of the discount
is expensed as incurred and recognised in the statement
of profit and loss as a finance cost. The estimated future
costs of decommissio B45ning are reviewed annually
and adjusted as appropriate. Changes in the estimated
future costs or in the discount rate applied are added to or
deducted from the cost of the asset.

Contingent liabilities

Contingent liability is:

(a) a possible obligation arising from past events and
whose existence will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the entity or

(b) a present obligation that arises from past events but
is not recognized because;

- it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation, or

- the amount of the obligation cannot be
measured with sufficient reliability.

The Company does not recognize a contingent liability
but discloses its existence and other required disclosures
in notes to the financial statements, unless the possibility
of any outflow in settlement is remote.

Provisions, contingent liabilities and contingent assets are
reviewed at each Balance Sheet date.

n) 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

Initial recognition and measurement

Financial assets are classified, at initial recognition, and
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value
through profit or loss.

The classification of financial assets at initial recognition
depends on the financial asset's contractual cash flow
characteristics and the Company's business model for
managing them. With the exception of trade receivables
that do not contain a significant financing component or
for which the Company has applied the practical expedient,
the Company initially measures a financial asset at its fair
value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs. Trade receivables
that do not contain a significant financing component or
for which the Company has applied the practical expedient
are measured at the transaction price determined under
Ind AS 115. Refer to the accounting policies in section (g)
Revenue from contracts with customers.

In order for a financial asset to be classified and measured
at amortised cost or fair value through OCI, it needs to give
rise to cash flows that are 'solely payments of principal and
interest (SPPI)' on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed
at an instrument level. Financial assets with cash flows
that are not SPPI are classified and measured at fair value
through profit or loss, irrespective of the business model.

The Company's business model for managing financial
assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines
whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both. Financial
assets classified and measured at amortised cost are
held within a business model with the objective to hold
financial assets in order to collect contractual cash flows
while financial assets classified and measured at fair value
through OCI are held within a business model with the
objective of both holding to collect contractual cash flows
and selling.

Subsequent measurement

For purposes of subsequent measurement, financial assets
are classified in four categories:

i. Financial assets at amortised cost (debt instruments)

ii. Financial assets at fair value through other
comprehensive income (FVTOCI) with recycling of
cumulative gains and losses (debt instruments)

iii. Financial assets designated at fair value through OCI
with no recycling of cumulative gains and losses
upon derecognition (equity instruments)

iv Financial assets at fair value through profit or loss

i. Financial assets at amortised cost (debt instruments)

A 'financial asset' is measured at the amortised cost if

both the following conditions are met:

a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

b) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount
outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method and are subject to
impairment as per the accounting policy applicable
to 'Impairment of financial assets.' Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is
included in other income in the profit or loss. The
losses arising from impairment are recognised in
the profit or loss. The Company's financial assets
at amortised cost includes trade receivables, and
loan to an associate and loan to a director included
under other non-current financial assets. For more
information on financial assets, refer note 6 and for
receivables, refer note 10.

ii. Financial assets at fair value through other
comprehensive income (FVTOCI) with recycling of
cumulative gains and losses (debt instruments)

A 'financial asset' is classified as at the FVTOCI if
both of the following criteria are met:

a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and

b) The asset's contractual cash flows represent
SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each

reporting date at fair value. For debt instruments,
at fair value through OCI, interest income, foreign
exchange revaluation and impairment losses or
reversals are recognised in the profit or loss and
computed in the same manner as for financial assets
measured at amortised cost. The remaining fair value
changes are recognised in OCI. Upon derecognition,
the cumulative fair value changes recognised in OCI
is reclassified from the equity to profit or loss.

The Company's debt instruments at fair value through
OCI includes investments in quoted debt instruments
included under other non-current financial assets.

iii. Financial assets designated at fair value through OCI
with no recycling of cumulative gains and losses
upon derecognition (equity instruments)

Upon initial recognition, the Company can elect to
classify irrevocably its equity investments as equity
instruments designated at fair value through OCI
when they meet the definition of equity under Ind
AS 32 Financial Instruments: Presentation for the
issuer and are not held for trading. The classification
is determined on an instrument-by-instrument basis.
Equity investment which are held for trading and
contingent consideration recognised by an acquirer
in a business combination to which Ind AS 103
applies are classified as at FVTPL.

Gains and losses on these financial assets are never
recycled to profit or loss. Dividends are recognised as
other income in the statement of profit and loss when
the right of payment has been established, except
when the Company benefits from such proceeds as
a recovery of part of the cost of the financial asset,
in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are
not subject to impairment assessment.

iv. Financial assets at fair value through profit or loss

Financial assets in this category are those that are
held for trading and have been either designated
by management upon initial recognition or are
mandatorily required to be measured at fair value
under Ind AS 109 i.e. they do not meet the criteria
for classification as measured at amortised cost or
FVOCI. Management only designates an instrument
at FVTPL upon initial recognition, if the designation
eliminates, or significantly reduces, the inconsistent
treatment that would otherwise arise from measuring
the assets or liabilities or recognising gains or losses
on them on a different basis. Such designation is
determined on an instrument-by-instrument basis.
For the Company, this category includes derivative

instruments and listed equity investments which
the Company had not irrevocably elected to classify
at fair value through OCI. The Company has not
designated any financial assets at FVTPL.

Financial assets at fair value through profit or loss
are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of
profit and loss.

Interest earned on instruments designated at FVTPL
is accrued in interest income, using the EIR, taking
into account any discount/ premium and qualifying
transaction costs being an integral part of instrument.
Interest earned on assets mandatorily required to be
measured at FVTPL is recorded using the contractual
interest rate. Dividend income on listed equity
investments are recognised in the statement of profit
and loss as other income when the right of payment
has been established.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a
financial asset) is primarily derecognised (i.e. removed
from the Company's balance sheet) when:

a. The rights to receive cash flows from the asset
have expired, or

b. The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under
a 'pass-through' arrangement; and either (i)
the Company has transferred substantially all
the risks and rewards of the asset, or (ii) the
Company has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company's continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form of a

guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.

Financial liabilities

Initial recognition, measurement and
presentation

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective
hedge, as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company's financial liabilities include trade and
other payables, loans and borrowings including
bank overdrafts, financial guarantee contracts and
derivative financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

• Financial liabilities at fair value through profit or
loss

• Financial liabilities at amortised cost (loans and
borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition
as at fair value through profit or loss.

Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative
financial instruments entered into by the Company
that are not designated as hedging instruments
in hedge relationships as defined by Ind AS 109.
Separated embedded derivatives are also classified
as held for trading unless they are designated as
effective hedging instruments.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities are designated upon initial
recognition as at fair value through profit or loss
only if the criteria in Ind AS 109 are satisfied. For

liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk
are recognized in OCI. These gains/ losses are not
subsequently transferred to P&L. However, the
Company may transfer the cumulative gain or loss
within equity. All other changes in fair value of such
liability are recognised in the statement of profit and
loss. The Company has not designated any financial
liability as at fair value through profit or loss.

Financial liabilities at amortised cost (Loans and
borrowings)

This is the category most relevant to the Company.
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or cost that are an integral part of the EIR. The
EIR amortisation is included as finance costs in the
Statement of Profit and Loss.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

Derivative financial instruments and Hedge
accounting

Initial recognition and subsequent measurement

The Company uses derivative financial instruments,
such as forward currency contracts to hedge its
foreign currency risks arising from highly probable
future forecasted sales. This derivative financial

instrument are designated in a cash flow hedge
relationship. Such derivative financial instruments
are initially recognised at fair value on the date on
which a derivative contract is entered into and are
subsequently re-measured at fair value. Derivatives
are carried as financial assets when the fair value is
positive and as financial liabilities when the fair value
is negative.

At the inception of a hedge relationship, the
Company formally designates and documents the
hedge relationship to which the Company wishes to
apply hedge accounting and the risk management
objective and strategy for undertaking the hedge.
The documentation includes the Company's risk
management objective and strategy for undertaking
hedge, the hedging/ economic relationship, the
hedged item or transaction, the nature of the risk
being hedged, hedge ratio and how the entity will
assess the effectiveness of changes in the hedging
instrument's fair value in offsetting the exposure
to changes in the hedged item's fair value or cash
flows attributable to the hedged risk. Such hedges
are expected to be highly effective in achieving
offsetting changes in cash flows and are assessed
on an ongoing basis to determine that they actually
have been highly effective throughout the financial
reporting periods for which they were designated.

The effective portion of the gain or loss on the
hedging instrument is recognised in OCI in the cash
flow hedge reserve, while any ineffective portion is
recognised immediately in the Statement of Profit
and Loss.

Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or loss,
except for the effective portion of cash flow hedges,
which is recognised in OCI and later reclassified to
profit or loss when the hedge item affects profit or
loss and is reclassified to underlying hedged item.

o) Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments,
the Company applies expected credit loss (ECL) model
for measurement and recognition of impairment loss for
financial assets.

The Company tracks credit risk and changes thereon for
each customer. For recognition of impairment loss on
other financial assets and risk exposure, the Company
determines that whether there has been a significant
increase in the credit risk since initial recognition. If
credit risk has not increased significantly, 12-month ECL
is used to provide for impairment loss. However, if credit

risk has increased significantly, life time ECL is used. If
in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase
in risk since initial recognition, then the entity reverts
to recognising impairment loss allowance based on
12-month ECL.

ECL 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 entity expects to
receive (i.e., all cash shortfalls), discounted at the original
EIR. When estimating the cash flows, an entity is required
to consider:

- All contractual terms of the financial instrument
over the expected life of the financial instrument.
However, in rare cases when the expected life of the
financial instrument cannot be estimated reliably,
then the entity is required to use the remaining
contractual term of the financial instrument.

- Cash flows from the sale of collateral held or
other credit enhancements that are integral to the
contractual terms.

The Company uses default rate for credit risk to determine
impairment loss allowance on portfolio of its trade
receivables.

ECL impairment loss allowance (or reversal) recognized
during the period is recognized as income/ expense in
the Statement of Profit and Loss. This amount is reflected
under the head 'other expenses' in the Statement of
Profit and Loss. The balance sheet presentation for various
financial instruments is described below:

a. Financial assets measured as at amortised
cost, contractual revenue receivables and lease
receivables: ECL is presented as an allowance, i.e., as
an integral part of the measurement of those assets
in the balance sheet. The allowance reduces the net
carrying amount. Until the asset meets write-off
criteria, the Company does not reduce impairment
allowance from the gross carrying amount.

b. Loan commitments and financial guarantee
contracts: ECL is presented as a provision in the
balance sheet, i.e. as a liability.

c. Debt instruments measured at FVTOCI: Since financial
assets are already reflected at fair value, impairment
allowance is not further reduced from its value.
Rather, ECL amount is presented as 'accumulated
impairment amount' in the OCI.

Trade receivables

The Company applies approach permitted by Ind AS

109 Financial Instruments, which requires expected
lifetime losses to be recognised from initial recognition of
receivables.

Other financial assets

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
whether there has been a significant increase in the credit
risk since initial recognition and if credit risk has increased
significantly, impairment loss is provided.

>) Fair value measurement

The Company measures financial instruments, such as,
derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities;

Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable;

Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.

For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the
hierarchy by re-assessing categorization (based on the
lowest level input that is significant to the fair value
measurements as a whole) at the end of each reporting
period.

External valuers are involved for valuation of significant
assets, such as properties and unquoted financial assets,
and significant liabilities, such as contingent consideration.
Involvement of external valuers is decided upon annually
by the management. Selection criteria include market
knowledge, reputation, independence and whether
professional standards are maintained. The management
decides, after discussions with the Company's external
valuers, which valuation techniques and inputs to use for
each case.

At each reporting date, the management analyses the
movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per the
Company's accounting policies. For this analysis, the
Management verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.

The Management also compares the change in the fair
value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

On an interim basis, the Management present the valuation
results to the Audit Committee and the Company's
independent auditors. This includes a discussion of the
major assumptions used in the valuations.

For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy as explained above.

q) Cash and cash equivalent

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, which are
subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, Cash and
cash equivalent consist of cash at banks and on hand and
short-term deposits, as defined above, net of outstanding
bank overdrafts as they are considered an integral part of
the Company's cash management.

r) Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Company is engaged in the
Technology Services and Solutions, which constitutes its
single reportable segment.

s) Earnings per Share (EPS)

Basic EPS are 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. Partly paid equity shares are treated as
a fraction of an equity share to the extent that they are
entitled to participate in dividends relative to a fully paid
equity share during the reporting period. The weighted
average number of equity shares outstanding during the
period is adjusted for events such as bonus issue that
have changed the number of equity shares outstanding,
without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the profit
attributable to equity shareholders of the Company
(after adjusting for interest on the convertible preference
shares, if any) by the weighted average number of equity
shares outstanding during the year plus the weighted
average number of equity shares that would be issued on
conversion of all the dilutive potential equity shares into
equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity shares are
determined independently for each period presented.

t) Business combinations

Business combinations between entities under common
control is accounted for at carrying value under the
provisions of Ind AS 103, Business Combinations.

Transaction costs that the Company incurs in connection
with a business combination such as finders' fees, legal
fees, due diligence fees, and other professional and
consulting fees are expensed as incurred.

u) Share-based payments

Employees (including senior executives) of the Company
receive remuneration in the form of share-based payments,
whereby employees render services as consideration for
equity instruments (equity-settled transactions).

Equity-settled transactions

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an
appropriate valuation model. Further details are given in
Note 40.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in equity,
over the period in which the performance and/or service
conditions are fulfilled in employee benefits expense.
The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired
and the Company's best estimate of the number of equity
instruments that will ultimately vest. The expense or credit
in the statement of profit and loss for a period represents
the movement in cumulative expense recognised as at
the beginning and end of that period and is recognised in
employee benefits expense.

Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company's best estimate of
the number of equity instruments that will ultimately vest.
Market performance conditions are reflected within the
grant date fair value. Any other conditions attached to
an award, but without an associated service requirement,
are considered to be non-vesting conditions. Non-vesting
conditions are reflected in the fair value of an award and
lead to an immediate expensing of an award unless there
are also service and/or performance conditions.

No expense is recognised for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met. Where awards include
a market or non-vesting condition, the transactions are
treated as vested irrespective of whether the market or
non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified,
the minimum expense recognised is the grant date fair
value of the unmodified award, provided the original
vesting terms of the award are met. An additional expense,
measured as at the date of modification, is recognised
for any modification that increases the total fair value
of the share-based payment transaction, or is otherwise
beneficial to the employee. Where an award is cancelled by
the entity or by the counterparty, any remaining element
of the fair value of the award is expensed immediately
through profit or loss.

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

v) Assets held for sale

The Company classifies non-current assets as held for
sale if their carrying amounts will be recovered principally
through a sale rather than through continuing use.

Non-current assets classified as held for sale are measured
at the lower of their carrying amount and fair value less
costs to sell. Costs to sell are the incremental costs directly
attributable to the disposal of an asset, excluding finance
costs and income tax expense.

The criteria for held for sale classification is regarded as
met only when the sale is highly probable, and the asset
is available for immediate sale in its present condition.
Actions required to complete the sale should indicate
that it is unlikely that significant changes to the sale will
be made or that the decision to sell will be withdrawn.
Management must be committed to the sale and the sale
expected within one year from the date of classification.

For these purposes, sale transactions include exchanges of
non-current assets for other non-current assets when the
exchange has commercial substance. The criteria for held
for sale classification is regarded met only when the assets
is available for immediate sale in its present condition,
subject only to terms that are usual and customary for
sales of such assets, its sale is highly probable; and it will
genuinely be sold, not abandoned. The Company treats
sale of the asset to be highly probable when:

The appropriate level of management is committed to a
plan to sell the asset

An active programme to locate a buyer and complete the
plan has been initiated (if applicable)

The asset is being actively marketed for sale at a price that
is reasonable in relation to its current fair value,

The sale is expected to qualify for recognition as a
completed sale within one year from the date of
classification, and

Actions required to complete the plan indicate that it is
unlikely that significant changes to the plan will be made
or that the plan will be withdrawn.

Property, plant and equipment and intangible are not
depreciated, or amortised assets once classified as held
for sale.

Assets and liabilities classified as held for sale are presented
separately from other items in the balance sheet.

w) Events after the reporting period

If the Company receives information after the reporting
period, but prior to the date of approved for issue, about
conditions that existed at the end of the reporting period,
it will assess whether the information affects the amounts
that it recognises in its separate financial statements.
The Company will adjust the amounts recognised in its
financial statements to reflect any adjusting events after
the reporting period and update the disclosures that

relate to those conditions in light of the new information.
For non-adjusting events after the reporting period, the
Company will not change the amounts recognised in its
separate financial statements but will disclose the nature
of the non-adjusting event and an estimate of its financial
effect, or a statement that such an estimate cannot be
made, if applicable.

2.3 Changes in accounting policies and disclosures

There are no new accounting policies applied during the
current year and accounting policies are consistent from
previous year.

2.4 New and amended standards

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after April 1,2024. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the
Ind AS 117, Insurance Contracts, vide notification
dated August 12, 2024, under the Companies
(Indian Accounting Standards) Amendment Rules,
2024, which is effective from annual reporting
periods beginning on or after April 1, 2024.

Ind AS 117 Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement, presentation
and disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to all types of
insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and
financial instruments with discretionary participation
features; a few scope exceptions will apply. Ind AS
117 is based on a general model, supplemented by:

- A specific adaptation for contracts with
direct participation features (the variable fee
approach)

- A simplified approach (the premium allocation
approach) mainly for short-duration contracts

The application of Ind AS 117 does not have
material impact on the Company's separate financial
statements as the Company has not entered any
contracts in the nature of insurance contracts
covered under Ind AS 117.

(ii) Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback

The MCA notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease
Liability in a Sale and Leaseback.

The amendment specifies the requirements that
a seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to ensure
the seller-lessee does not recognise any amount of
the gain or loss that relates to the right of use it
retains.

The amendment is effective for annual reporting
periods beginning on or after April 1, 2024 and
must be applied retrospectively to sale and leaseback
transactions entered into after the date of initial
application of Ind AS 116.

The application of amendment to Ind AS 116 does
not have material impact on the Company's separate
financial statements as the Company has not entered
into any sale and leaseback transactions covered
under Ind AS 116.

2.5 Standards notified but not yet effective

There are no standards that are notified and not yet
effective as on the date.

2.6 Climate - related matters

The Company considers climate-related matters in
estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts
on the Company due to both physical and transition
risks. Even though climate-related risks might not
currently have a significant impact on measurement,
the Company is closely monitoring relevant changes
and developments, such as new climate-related
legislation.

a. During the year ended March 31, 2023, the Company issued Unrated, Unlisted, Secured Non-Convertible Debentures
("NCDs") aggregating ' 14,500 lakhs to a financial institution ("Investor") repayable over three years at an interest rate
of 15.75% - 16.00% per annum, payable quarterly. The Company also entered into an Investment Agreement with the
aforesaid Investor and provided a Right to Invest ("Share Warrants") in the Compulsorily Convertible Preference Shares
("CCPS") of the subsidiary, MSPL, at an agreed value and mutually agreed terms and conditions. Share Warrants were
classified as Derivative Liability carried at Fair Value through Profit and Loss. The Company recorded a Share Warrants expense
of ' 565.18 lakhs in the Statement of Profit and Loss for the year ended March 31,2023 and reduced the equivalent amount
in investment in equity shares of MSPL in the Balance Sheet as at March 31, 2023.

During the year ended March 31, 2024, the abovementioned NCDs together with other borrowings aggregating ' 21,000
lakhs has been refinanced at a lower interest rate of 12.75% per annum through the issuance of Unlisted Unrated Secured
Redeemable Non-Convertible Debentures through another financial institution. The Company had recorded a one-time
expense of ' 667.40 lakhs relating to an unamortised portion of borrowing costs and prepayment charges on the aforesaid
refinancing. The same had been grouped under finance costs for the year ended March 31, 2024.

On September 29, 2023, MSPL had entered into an Amendment to Share Subscription cum Shareholders' Agreement dated
July 22, 2023 on September 29, 2023, thereby amending the terms of right of investment by the Investor, wherein the
Investor is entitled to invest only upon discretion and consent of MSPL. Consequent to the aforesaid amendment, the
provision for diminition in investment of MSPL aggregating ' 565.18 lakhs had been reversed through Statement of Profit
and Loss for the year ended March 31, 2024.

b. During the year ended March 31,2024, the Company acquired Epcogen Private Limited ("Epcogen"), engaged in engineering
design and solutions for energy sector, through a payment of fixed purchase consideration of ' 2,625 lakhs and a contingent
purchase consideration payable over a period of three years, dependent upon earnings of Epcogen for the period April 1,
2023 to March 31, 2026, with a maximum amount of ' 700 lakhs.

a) Details of security for borrowings

(i) The 12.75% Unrated Unlisted Redeemable Non-Convertible Debentures is secured by first pari-passu charge over all assets
(including PPE, intangible assets and intellectual rights, current assets and non-current assets) of the Company and subsidiary
companies, AXISCADES Aerospace & Technologies Private Limited and MSPL, property owned by step down subsidiary,
Enertec Controls Limited, at Electronic City, Bangalore, pledge of 100% shares of MSPL and first pari-passu charge over
fixed deposit of ' 1,200.00 lakhs and Corporate guarantee from subsidiary companies, MSPL, AXISCADES Aerospace &
Technologies Private Limited and Enertec Controls Limited. Additionally, cash margin equivalent to interest payable on the
immediately succeeding coupon payment date in the form of fixed deposits lien to be maintained. The Company has made
prepayment of ' 5,250 lakhs during the year (March 31, 2024: ' 10,500 lakhs) and the rest is repayable in 5 quarterly
installments starting from June 2026.

(ii) The 12.00% Unrated Unlisted Redeemable Non-Convertible Debentures of ' 5,000 lakhs is secured by first pari-passu charge
over all assets (including movable PPE, intangible assets and intellectual rights, current assets and non-current assets) of the
Company and subsidiary companies, AXISCADES Aerospace & Technologies Private Limited and MSPL, property owned by
step down subsidiary, Enertec Controls Limited, at Electronic City, Bangalore, pledge of 51% shares of MSPL and first pari-
passu charge over fixed deposit of ' 1,200.00 lakhs and Corporate guarantee from subsidiary companies, MSPL, AXISCADES

Aerospace & Technologies Private Limited and Enertec Controls Limited. Additionally, cash margin equivalent to interest
payable on the immediately succeeding coupon payment date in the form of fixed deposits lien to be maintained. It is
repayable in 11 quarterly installments starting from June 2025.

(iii) Loan from related parties includes unsecured intercorporate loans of

(a) An inter-corporate deposit ('ICD') from subsidiary, Cades Studec Technologies (India) Private Limited ('CSTI'), amounting
to ' 250.00 lakhs, ' 400.00 lakhs and ' 500.00 lakhs repayable by October 2024, December 2024 and November 2026,
respectively, which carries an interest rate of 11% per annum. Loans which were due for repayment in the current year
were fully repaid.

b) 500.00 lakhs from subsidiary company, Axiscades Aerospace & Technologies Private Limited is unsecured and repayable
on June 2025, carries an interest rate of 9% per annum. During the current year, the Company has made the prepayment
of ' 500.00 lakhs.

c) 6,701.19 lakhs from subsidiary company, Explosoft Tech Solutions Private Limited is unsecured and repayable on
December 2024, carries an interest rate of 13% per annum, includes principal portion of ' 3,614.52 lakhs and accrued
interest of ' 3,086.57 lakhs. During the year, the aforesaid payable has been fully repaid.

d) An inter-corporate deposit ('ICD') of ' 300.00 lakhs from step down subsidiary company, Mistral Technologies Private
Limited is unsecured and repayable on December 2026, carries an interest rate of 11.50% per annum.

e) An inter-corporate deposit ('ICD') from of ' 1,200 lakhs and ' 2,000.00 lakhs from subsidiary company, Mistral Solutions
Private Limited is unsecured and repayable on December 2025 and May 2026 respectively, carries an interest rate of
11.50% per annum.

(iv) During the current year, the Company has taken a term loan of ' 1,409.00 lakhs from bank and repayable in 36 equal montly
installments of ' 39.14 lakhs starting from December 2025, carries an interest rate of repo rate 3.60% per annum. The
loan was secured by exclusive charge on capital assets purchased through this loan.

(v) Vehicle loan from Toyota Financial Services India Limited is secured and repayable in equal monthly installment of ' 1.28
lakhs. The loan has been fully repaid during the year.

(vi) Packing credit facility in foreign currency ("PCFC") and Cash credit from banks are secured by exclusive charge on current
assets, movable fixed assets, property owned by step down subsidiary, Enertec Controls Limited at Electronic City, Bangalore,
fixed deposits of ' 700 lakhs and corporate guarantee from step down subsidiary company, Enertec Controls Limited.
Additionally, 10% cash margin in the form of fixed deposits lien to be maintained and First Pari Passu charge on fixed deposit
of ' 1,200 lakhs. Further, shortfall undertaking and letter of responsibility is backed by board resolution.

(vii) During the year ended March 31,2024, the Company had issued 3,323,262 equity shares of ' 5 each in Qualified Institutional
Placement at an issue price of ' 662 per share (including securities premium of ' 657 per share) aggregating ' 21,999.99
lakhs to be utilised towards repayment or prepayment of certain outstanding borrowings availed by the Company and for
general corporate purpose. The Company has utilised the proceeds from QIP for prepayment of 12.75% Unrated Unlisted
Redeemable Non-Convertible Debentures of ' 5,250.00 lakhs during the year ended March 31, 2025 (March 31, 2024: '
10,500 lakhs) and ' 1,499.90 lakhs towards repayment/prepayment of term loan from financial institution in the year ended
March 31, 2024.

(viii) During the year ended March 31,2024, the Company had availed a term loan from bank amounting to ' 500 lakhs repayable
in 60 equal monthly installments of ' 8.90 lakhs. It is secured by exclusive charge on current assets, movable fixed assets,
property owned by step down subsidiary, Enertec Controls Limited at Electronic City, Bangalore and corporate guarantee
from step down subsidiary company, Enertec Controls Limited. Additionally, 10% cash margin in the form of fixed deposits
lien to be maintained. Further, shortfall undertaking and letter of responsibility is backed by board resolution from Jupiter
Capital Private Limited, the Parent Company.

b) Loan covenants

Term loan from banks and financial institutions contain certain financial covenants such as debt service coverage ratio, total
debt as a percentage of total net-worth etc. The Company has satisfied debt covenants prescribed in the terms of loan except
debt service coverage ratio.The Management is of the view that this is a minor breach, the Company has taken the waiver
letter and hence no adjustments are made to Standalone Financial Statements in this respect.

The Company had total cash outflows for leases of ' 1,497.11 lakhs for the year ended March 31, 2025 (March 31, 2024:
' 1,557.32 lakhs). The Company has made non-cash additions of ' 282.89 lakhs (March 31,2024: ' 1,178.04 lakhs) and ' 282.89
lakhs (March 31,2024: ' 1,099.45 lakhs) to right-of-use assets and lease liabilities, respectively. There are no future cash outflows
relating to leases that have not yet commenced.

31. Capital and other commitments

As at March 31, 2025, the Company has a commitment of ' 81.29 lakhs (March 31, 2024: ' 96.67 lakhs).

32. Capital management

For the purpose of the Company's capital management, capital includes issued capital, securities premium and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to
maximise the shareholder value.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank/ financial institution to immediately call loans and borrowings. There has
been breaches in the financial covenants of any interest-bearing loans and borrowing in the current period and the Company has
taken the waiver letter (refer note 15(b)).

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net
debt. The Company includes within net debt interest bearing loans and borrowings, lease liabilities, less Cash and cash equivalent.

the statement of profit and loss. The re-measurement of accumulated deferred tax assets has resulted in a one-time additional
deferred tax charge (including reversal of MAT credit) of ' 131.56 lakhs for the year ended March 31, 2025.

Note 2

Pursuant to the final assessment order for AY 2023-24 received on March 23, 2025 thereby concluding the assessment of Income
for the aforesaid assessment year, the Company has set-off unutilised business losses of AY 2023-24 against the taxable profits of
current year and unutilised unabsorbed depreciation of AY 2023-24 against the capital gains on sale of Asset held for sale during
the year ended March 31,2025 and based on the projections for future taxable profits the Company has recognized deferred tax
assets (net) of ' 855.44 lakhs on remaining unutilized losses as at March 31, 2025.

The movement in deferred tax asset from the opening balance pertains to deferred tax credit recognized in Statement of Profit and
Loss and other comprehensive income for the year.

Valuation technique used to determine fair value of derivative contracts

The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. Foreign exchange forward contracts and cross currency swaps are valued using valuation
techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward
pricing and swap models using present value calculations. The models incorporate various inputs including the credit quality of
counterparties, foreign exchange spot and forward rates and yield curves of the respective currencies. The changes in counterparty
credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other
financial instruments recognised at fair value.

Valuation processes

The Corporate finance team has requisite knowledge and skills. The team headed by the Company CFO directly reports to the
audit committee to arrive at the fair value of financial instruments.

35. 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 focus is
to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on it's financial performance.
The primary market risk to the Company is foreign exchange exposure risk. The Company uses derivative financial instruments
to mitigate foreign exchange related risk exposures. The Company's exposure to credit risk is influenced mainly by the individual
characteristic of each customer.

The Company's risk management activity focuses on actively securing the Company's short to medium-term cash flows by
minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.

The Company does not engage in the trading of financial assets for speculative purposes. The most significant financial risks to
which the Company is exposed are described below.

(A) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a
good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have
any significant concentration of exposures to specific industry sectors or specific country risks.

Financial assets that are not credit impaired

The Company has financial assets which are in the nature of cash and cash equivalent, other bank balances, loans, security
deposits, interest accrued on fixed deposits and other receivables which are not credit impaired. These are contractually agreed
where the probability of default is negligible.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating
to customer credit risk management. Credit quality of a customer is assessed based on an internal assessment. Outstanding
customer receivables are regularly monitored including the creditworthiness of customers to which the Company grants credit
terms in the normal course of business.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision
rates are based on days past due for groupings of various customer segments with similar loss patterns (i.e., by geographical
region and customer type). The calculation reflects the probability-weighted outcome, the time value of money and reasonable
and supportable information that is available at the reporting date about past events, current conditions and forecasts of future
economic conditions. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial
assets disclosed in note 34. The Company does not hold collateral as security. The Company is considerate of the fact the majority
of the collection is receivable from export customers with high credit worthiness where there is no significant risk of bad debts.
The customers of the Company have a defined period for payment of receivables, hence the Company evaluates the concentration
of risk with respect to trade receivables as low. The Company considers receivables from group company separately and creates
provision for doubtful debts on case to case basis.

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating
to customer credit risk management. Credit quality of a customer is assessed based on an internal assessment. Outstanding
customer receivables are regularly monitored including the creditworthiness of customers to which the Company grants credit
terms in the normal course of business.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision
rates are based on days past due for groupings of various customer segments with similar loss patterns (i.e., by geographical
region and customer type). The calculation reflects the probability-weighted outcome, the time value of money and reasonable
and supportable information that is available at the reporting date about past events, current conditions and forecasts of future
economic conditions. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial
assets disclosed in note 34. The Company does not hold collateral as security. The Company is considerate of the fact the majority
of the collection is receivable from export customers with high credit worthiness where there is no significant risk of bad debts.
The customers of the Company have a defined period for payment of receivables, hence the Company evaluates the concentration
of risk with respect to trade receivables as low. The Company considers receivables from group company separately and creates
provision for doubtful debts on case to case basis.

(C) Market risk

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk
and certain other price risk, which result from both its operating, financing and investing activities.

Foreign currency sensitivity

The Company operates internationally and a significant portion of the business is transacted in USD and EURO currencies and
consequently the Company is exposed to foreign exchange risk through its sales and purchases from overseas suppliers in various
foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward contracts and cross
currency swaps to mitigate the risk of changes in exchange rates on foreign currency exposures. 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 rupee appreciates/ depreciates against these
currencies.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because
of changes in market interest rates. As at March 31, 2025 and March 31, 2024, the Company does not have any long term debt
obligations with floating interest rates, hence, is not exposed to any significant interest rate risk.

Price risk

The Company invests in mutual funds schemes of leading fund houses. Such investments are suspectible to market price risks.
However, given the short tenure of the underlying portfolio of the mutual fund shcemes in which the Company has invested, such
price risk is not significant.

36. Defined benefit obligations

A Defined benefit contributions

India

The Company makes contribution to statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act,
1952 for its employees. This is a defined contribution plan as per Ind AS 19, Employee benefits. Contribution made during the
year ended March 31,2025 : ' 992.79 lakhs (March 31, 2024 : ' 875.17 lakhs)

Overseas social security

The Company makes a contribution towards social security charges for its employees located at the respective branch offices in
respective foreign geographies, that are defined contribution plans. The contributions paid or payable is recognised as an expense
in the period in which the employee renders services in respective geographies. Contribution made during the year ended March
31, 2025 : ' 1,198.94 lakhs (March 31, 2024 : ' 1,099.83 lakhs)

B Defined benefit plans

The Company has a defined benefit gratuity plan (unfunded). The Company has provided for gratuity, for its employees as
per actuarial valuation carried out by an independent actuary on the Balance Sheet date. The valuation has been carried out
using the Project Unit Credit Method as per Ind AS 19 to determine the present value of Defined Benefit Obligations and the
related current service cost. This is a defined benefit plan as per Ind AS 19.

The gratuity plan is governed by the provisions of the Payment of Gratuity Act, 1972 (as amended from time to time).
Employees are entitled to all the benefits enlisted under this Act.

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may
vary overtime. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

a Interest rate risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the
ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability as shown in
financial statements.

b Liquidity risk

This is the risk that the Company is not able to meet the short-term gratuity pay-outs. This may arise due to non
availability of enough cash/cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

c Salary escalation risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of employees in
future. Deviation in the rate of interest in future for employees from the rate of increase in salary used to determine the
present value of obligation will have a bearing on the plan's liability.

d Demographic risk

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed
to the risk of actual experience turning out to be worse compared to the assumption.

e Regulatory risk

Gratuity benefits are paid in accordance with the requirements of the Payment of Gratuity Act,1972 (as amended from
time to time). There is a risk of change in regulations requiring higher gratuity pay-outs

The assumptions were developed by Management with the assistance of independent actuaries. Discount factors are
determined close to each year-end by reference to market yields of Government bonds that have terms to maturity
approximating to the terms of the gratuity obligation. Other assumptions are based on current actuarial benchmarks
and Management's historical experience.

A quantitative sensitivity analysis for significant assumption as at March 31, 2025 is as shown below:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, attrition rate,
expected salary increase and mortality. The sensitivity analysis below has been determined based on reasonably possible
changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The following table summarizes the impact of change in the defined benefit obligation resulting from the specified
percentage change in the aforementioned assumptions.

37. Significant accounting judgements, estimates and assumptions

The preparation of the Company's Standalone financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods

Other disclosures relating to the Company's exposure to risks and uncertainties includes:

• Capital management Note 32

• Financial risk management objectives and policies Note 35

• Sensitivity analyses disclosures Notes 35 and 36
Judgements

In the process of applying the Company's accounting policies, management has made the following judgements, which have
the most significant effect on the amounts recognised in the Standalone financial statements:

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable
income will be available against which the deductible temporary differences and carried forward tax loss can be utilised. In
addition, significant judgment is required in assessing the impact of any legal or economic limits or uncertainties in various
tax jurisdictions.

Estimates and assumptions

The key assumptions concerning the future and other key 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. The Company based its assumptions and estimates on parameters available when the Standalone
financial statements were prepared. Existing circumstances and assumptions about future developments, however, may
change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

Evaluation of indicators for impairment of non-financial assets (including investments in subsidiaries)

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is
the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based
on available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices
less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are
derived from the budget for the next four to five years and do not include restructuring activities that the Company is not
yet committed to or significant future investments that will enhance the asset's performance of the CGU being tested. The
recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes. These estimates are most relevant to assessing the carrying value of
investment and other intangibles with indefinite useful lives recognised by the Company.

Recoverability of trade receivables and other financial assets

At each balance sheet date, based on historical default rates observed over expected life, the Management assesses the
expected credit loss on outstanding receivables and other financial assets.

Provision for expected credit losses of trade receivables and financial assets

The Company uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are based
on days past due for groupings of various customer segments that have similar loss patterns.

The provision matrix is initially based on the Company's historical observed default rates. The Company will calibrate the
matrix to adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical
observed default rates are updated and changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The
Company's historical credit loss experience and forecast of economic conditions may also not be representative of customer's
actual default in the future. The information about the ECLs on the Company's trade receivables and contract assets is
disclosed in Note 35.

Estimating the fair vale of share-based payments

For the measurement of the fair value of equity-settled transactions with employees at the grant date, the Company uses
Black Sholes model valuation for executives and senior management employees. The assumptions and models used for
estimating fair value for share-based payment transactions are disclosed in note 40.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the
gratuity obligation are determined using 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 and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The calculation is most sensitive to changes in the discount rate. In determining the appropriate discount rate for plans
operated in India, the management considers the interest rates of government bonds where remaining maturity of such bond
correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in
response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 36.

Fair value measurement 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, their fair value is measured using valuation techniques including the 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. See Note 34 for
further disclosures.

Contingent consideration, resulting from business combinations, is valued at fair value at the acquisition date as part of
the business combination. When the contingent consideration meets the definition of a financial liability, it is subsequently
remeasured to fair value at each reporting date. The determination of the fair value is based on discounted cash flows. The
key assumptions take into consideration the probability of meeting each performance target and the discount factor.

As part of the accounting for the acquisition of engineering design and solution for energy sector business of Epcogen Private
Limited, contingent consideration with an estimated fair value of ' 589 lakhs was recognised at the acquisition date and
remeasured to ' 652.40 lakhs as at March 31, 2025 (March 31, 2024: ' 599.00 lakhs). Future developments may require
further revisions to the estimate. The maximum consideration to be paid is ' 700 lakhs. The contingent consideration is
classified as other financial liability.

Intangible asset under development

The Company capitalises intangible asset under development for a project in accordance with the accounting policy. Initial
capitalization of costs is based on management's judgement that technological and economic feasibility is confirmed, usually
when a product development project has reached a defined milestone according to an established project management
model. In determining the amounts to be capitalised, management makes assumptions regarding the expected future cash
generation of the project, discount rates to be applied and the expected period of benefits. At 31 March 2025, the carrying
amount of capitalised intangible asset under development was ' 84.27 lakhs (March 31, 2024: Nil).

Useful lives and residual values of property, plant and equipment and intangible assets

The Company reviews the estimated residual values and expected useful lives of assets at least annually. In particular, the
Company considers the impact of health, safety and environmental legislation in its assessment of expected useful lives and
estimated residual values. Furthermore, the Company considers climate-related matters, including physical and transition
risks. Specifically, the Company determines whether climate-related legislation and regulations might impact either the useful
life or residual values.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate
(IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar
economic environment. The IBR therefore reflects what the Company 'would have to pay', which requires estimation when
no observable rates are available. The Company estimates the IBR using observable inputs (such as market interest rates)
when available and is required to make certain entity-specific estimates.

Decommissioning liability

The estimated valuation of decommissioning liability are based on management's historical experience and best estimate of
restoring the premises on lease in its original condition. Assumptions and judgments made by management when assessing
an decommissioning liability include i) the existence of a legal obligation; ii) estimated probabilities, amounts, and timing of
settlements; iii) the credit-adjusted risk-free rate to be used.

(i) The Company had received demand notices from the authorities under the Finance Act,1994 for non-payment of Service
tax on reverse charge mechanism for the period April 2006 to September 2010 and also received demand notices from
GST authorities under Goods and Service Tax Act, 2017 for non-payment of GST on reverse charge mechanism, excess ITC
availed and ITC of input service distributor not appearing in GSTR 2A, etc for the period FY 2017-2018 to FY 2020-2021. The
Company is contesting the above demands and has filed appeals against the above orders. Pending outcome of the appellate
proceedings and based on advise from the Company's tax consultants, no adjustments has been made in the standalone
financial statements in this regard.

(ii) The Company had received assessment orders in respect of certain financial years giving raise to additional income tax
demand (including interest) on account of certain adjustments in relation to disallowances of expenses and certain tax
benefits. The Company has contested such demand and appeal is pending at appellate level. Pending outcome of the
appellate proceedings and based on advise from the Company's tax consultants, no adjustments has been made in the
standalone financial statements in this regard.

46. Assets held for sale

In the Board meeting held on March 27, 2024, the Board of Directors had approved the sale of Leasehold land and Office building
situated at D-30, Sector-3, Noida, Uttar Pradesh. The Company had entered into an agreement to sell the aforesaid property and
the transfer was expected within next 12 months and accordingly the assets were grouped under "Assets held for sale" in the year
ended March 31, 2024. During the year ended March 31, 2025, the aforesaid property is sold and gain of ' 659.19 lakhs on sale
of leasehold land and office building is recognised in other income in the Standalone Statement of Profit or Loss.

Unutilised QIP Proceeds as at March 31, 2025 and March 31, 2024 are available as

a) Fixed deposits with monitoring agency amounting to ' 2,000.00 lakhs (March 31, 2024: ' 8,345.26 lakhs)

b) Bank balances in monitoring agency account is Nil (March 31, 2024: ' 1.17 lakhs includes interest received of ' 0.85 lakhs
on fixed deposits redeemed) (refer note 11)

c) Maximum amount of idle/surplus funds invested during the year was ' 8,345.58 lakhs (March 31, 2024: ' 19,151.20 lakhs)

48. Segment Information

The Board of Directors of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind
AS 108, Operating Segments. The CODM evaluates the Company's performance and allocates resources based on an analysis of
engineering services.

The Company is predominantly engaged in the business of Technology Services and Solutions, which constitutes a single business
segment and is governed by similar set of risks and returns. The operations of the Company primarily cater to the market outside
India, which the Management views as a single segment. The Management monitors the operating results of its single segment
for the purpose of making decisions about resource allocation and performance assessment.

Two customers individually accounted for ' 7,160.19 lakhs and ' 5,816.69 lakhs respectively, which is more than 10% of the total
revenue of the Company for the year ended March 31, 2025 and two customers individually accounted for ' 6,829.49 lakhs and
' 5,718.58 lakhs respectively, which is more than 10% of the total revenue of the Company for the year ended March 31,2024.

The Company is domiciled in India. The Company's revenue from operations from external customers primarily relate to operations
outside India. Revenue from customers located in India for the year ended March 31, 2025 amounts to ' 9,948.12 lakhs (March
31, 2024: ' 9,370.38 lakhs) and from outside India for the year ended March 31,2025 amounts to '29,849.93 lakhs (March 31,
2024: ' 25,932.06 lakhs). Majority of the non-current assets of the Company are located in India.

49. The Company has used two accounting software's for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the
software, except that audit trail feature is not enabled for one of the software i) for the changes made to the master data
from April 1,2024 to May 31, 2024; and ii) for direct changes made to data using certain access rights. Further no instance of
audit trail feature being tampered with was noted in respect of accounting software's where the audit trail has been enabled..
Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements for record
retention to the extent it was enabled and recorded in the prior year.

50. Other Statutory Information

(i) No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company do not have any transactions with companies struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956.

(iii) There are no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,2025 and
March 31, 2024.

(v) The Company have 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

(vi) The Company have 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

(vii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

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

51 Events after the reporting period

There are no events or transactions which have occurred since the balance sheet date which would have a material effect and
require adjustments in the standalone financial statements.

As per our report of even date

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants AXISCADES Technologies Limited

ICAI Firm Registration number : 101049W/E300004 CIN NO : L72200KA1990PLC084435

Sd/- Sd/- Sd/-

per Pradip Agarwal Alfonso Martinez Dr. Sampath Ravinarayanan

Partner Chief Executive Officer and Managing Director Chairman and Non - Executive Director

Membership Number : 065537 DIN: 10902446 DIN : 00208793

Place : Bengaluru Place : Bengaluru Place : Bengaluru

Date : May 26, 2025 Date : May 26, 2025 Date : May 26, 2025

Sd/- Sd/-

Shashidhar SK Sonal Dudani

Group Chief Financial Officer Company Secretary

Membership No.: 40415

Place : Bengaluru Place : Bengaluru

Date : May 26, 2025 Date : May 26, 2025