Note No 1 - Company Information

Sankhya is a leading software products and services company serving the rapidly growing niche markets of Training, Education, Modeling and Simulation. The company has developed several Software products targeted in the area of Education, Training and Learning and owns 100% of the "Intellectual Property" in them. The company's services include software services around the products, development of Simulation software for specific customer needs, courseware, besides providing consulting support to customers. The company has established operations in France and UAE. The company has diverse clients from across several continents, and is a well-established name in the field of Education, Training & Simulation.

Sankhya's vision is to ensure the success of global organizations by providing them with intelligent learning platforms and content to enable them to continuously re-skill and enhance the effectiveness of their employees, adapting to the changing world.

Our mission is to enhance the organizational effectiveness of mission critical enterprises by providing continuous experiential training and enriching the competency of people in core functions!!

Note 2(d): The Board of the company has approved the allotment of 18,51,852 shares of Rs.10 face value at a premium of Rs.39.07 per share to promoters and non promoters. upfront amount of Rs.381.17 lakhs is kept as share warrant money by the company and shall issue share warrant fully convertible into equity shares upon the receipt of the entire amount within the specified period of 18 months.

As per IND AS 19 "Employee Benefits ", the disclosures of Employee Benefits as defined in the Accounting Standard are given below:

Defined Contribution Plans:

PROVIDENT FUND

The provident fund is operated by the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by the Income tax authorities. The Company has recognized the following amounts in the Profit and Loss Account for the year:

Gratuity is payable to employees as per Payment of Gratuity Act. Leave encashment is payable to eligible employees who have earned leaves, during the employment and/or on separation as per the company's policy. The company has funded the Gratuity liability with Group Gratuity Scheme of Life Insurance Corporation of india Ltd.

3. Segment Information as per Accounting Standard IND AS - 108 - The Company has identified two types of reporting segments at standalone level viz., Business Segment and Geographical Segments. Business Segments identified as Defense & Non-Defense and Geographical segments identified as Domestic and Overseas. Segments have been identified and reported taking into account nature of products and services the differing risks, returns and the internal business reporting systems. Accounting policies adopted for segment reporting are in line with Accounting Policy of the company and are in accordance with the IND AS - 108.

Capital employed as also assets and liabilities of the company are not capable of being stated separately segment-wise since all the assets and liabilities are held under composite undertaking for both the geographic segments.

4. Overseas Transactions

Overseas banking operations of the company for all the customers in France and customer contracts of UAE signed prior to 2006 are operated at BNP Paribas Toulouse and are administered by Mr. Christian Rey, and supported by Mr. Sebastian Vigreux, Administrative Accountant.

5. Corporate Social Responsibility (CSR) as per Companies Act, 2013

The provisions of Section 135 of the Companies Act, 2013 relating to CSR is not applicable to the company. Accordingly, there is no expenditure under CSR.

6. Regrouping & Rounding off

The previous year's figures have been reclassified and regrouped, wherever necessary to confirm the Current Year classification and to confirm to the relevant laws. Paisa has been rounded off to the nearest rupee.

As per our report of even date

(iv) Financial Risk Management

(a) Interest Rate Risk Management

The company is exposed to interest rate risk because company borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings.

The company's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

Interest Rate Sensitivity Analysis

The sensitivity analysis below have been determined based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

(b) Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company's short-term, medium-term and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and Interest Risk Tables

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.